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on january 12 , 2016 , we completed the merger with gfi by acquiring 100 % of gfi 's outstanding shares ( see “acquisition of gfi group , inc.” ) . during 2016 , we also completed the purchase of rudesill-pera multifamily , the cre group , inc. ( “cre group” ) , perimeter markets , inc. , certain assets of the john buck company , llc and buck management group llc , continental realty ltd , newmark grubb mexico city , the businesses of sunrise brokers group , and walchle lear multifamily advisors . by adding these leading companies to our platform , we have greatly broadened the scope and depth of services we can provide to our clients across our consolidated business . we have also continued to make key hires around the world and integrate our recent acquisitions onto our global platform . we expect these additions to increase our revenues and earnings per share going forward . these investments underscore bgc 's ongoing commitment to make accretive acquisitions and profitable hires . confidential submission of draft registration statement for proposed initial public offering on february 9 , 2017 , we announced that we had confidentially submitted a draft registration statement on form s-1 with the u.s. securities and exchange commission ( the “sec” ) relating to the proposed initial public offering of the class a common stock of a newly formed subsidiary that will hold our real estate services business , which operates as “newmark grubb knight frank” or “ngkf.” the number of class a shares to be offered and the price range for the proposed offering have not yet been determined . the initial public offering is part of our plan to separate our real estate services business into a separate public company . following some period after the expected offering , we may , subject to market and other conditions , distribute the shares that we will hold of the newly formed subsidiary pro rata to our stockholders in a manner intended to qualify as tax-free for u.s. federal income tax purposes . 79 lucera acquisition on november 4 , 2016 , we acquired from cantor the 80 % of the lucera business ( also known as “lfi holdings , llc” or “lfi” ) not already owned by us . the aggregate purchase price paid by the company to cantor consisted of approximately $ 24.2 million in cash plus a $ 4.8 million post-closing adjustment . lucera is a technology infrastructure provider tailored to the financial sector headquartered in new york . this transaction has been determined to be a combination of entities under common control that resulted in a change in the reporting entity . accordingly , our financial results have been retrospectively adjusted to include the financial results of lucera in the current and prior periods as if lucera had always been consolidated . the following tables summarize the impact of the transaction to our quarterly and annual consolidated statements of operations for the periods indicated ( in thousands , except per share amounts ) : replace_table_token_4_th replace_table_token_5_th 80 acquisition of gfi group , inc. gfi is a leading intermediary and provider of trading technologies and support services to the global otc and listed markets . gfi serves institutional clients in operating electronic and hybrid markets for cash and derivative products across multiple asset classes . on february 26 , 2015 , we successfully completed our tender offer to acquire shares of common stock , par value $ 0.01 per share , of gfi for $ 6.10 per share in cash and accepted for purchase 54.3 million shares tendered to us pursuant to the offer . the tendered shares , together with the 17.1 million shares already owned by us , represented approximately 56 % of the then-outstanding shares of gfi . we issued payment for the tendered shares on march 4 , 2015 in the aggregate amount of $ 331.1 million . on april 28 , 2015 , we purchased from gfi approximately 43.0 million new shares at that date 's closing price of $ 5.81 per share , for an aggregate purchase price of $ 250 million . the purchase price was paid to gfi in the form of a note due on june 19 , 2018 that bore an interest rate of libor plus 200 basis points . the new shares and the note are eliminated in consolidation . following the issuance of the new shares , we owned approximately 67 % of gfi 's outstanding common stock , which gave us control over the timing and process for the completion of a back-end merger ( the “back-end mergers” ) pursuant to the tender offer agreement . on january 12 , 2016 , we completed our acquisition ( the “jpi merger” ) of jersey partners , inc. ( “jpi” ) . the jpi merger occurred pursuant to a merger agreement , dated as of december 22 , 2015. shortly following the completion of the jpi merger , a subsidiary of bgc merged with and into gfi pursuant to a short-form merger under delaware law , with gfi continuing as the surviving entity . the back-end mergers allowed bgc to acquire the remaining approximately 33 % of the outstanding shares of gfi common stock that bgc did not already own . following the closing of the back-end mergers , bgc and its affiliates now own 100 % of the outstanding shares of gfi 's common stock . in total , approximately 23.5 million shares of bgc class a common stock were issued and $ 111.2 million in cash will be paid with respect to the closing of the back-end mergers , inclusive of adjustments ( $ 89.9 million has been paid as of december 31 , 2016 ) . story_separator_special_tag the accord , which will continue to be phased in over the coming years , will force most large banks in g-20 nations to hold approximately three times as much tier 1 capital as is required under the previous set of rules . these capital rules make it more expensive for banks to hold non-sovereign debt assets on their balance sheets , and as a result , analysts say that banks have reduced or will reduce their trading activity in corporate and asset-backed fixed income securities as well as in various other otc cash and derivative instruments . we believe that this has further reduced overall industry volumes in many of the products we broker , particularly in credit . on september 1 , 2016 , the u.s. and japan implemented “phase i” of the basel committee 's edict for initial margin and variation margins to be exchanged bilaterally between participants transacting in non-centrally cleared derivatives . “phase i” adversely impacted trading activity at our large sell-side institutional clients during the third quarter of 2016 as they worked through arranging documentation to support the exchange of margins with each other . some clients remain unable to deal with major counterparties . in addition , uncertainty around compliance globally has affected derivatives pricing . although regulators in europe , hong kong , singapore and australia previously announced delays to the “phase i” implementation date , most uncleared bilateral rates , fx and credit derivatives trading with u.s. counterparties has necessarily included initial margin , resulting in a general widening of bid-offer spreads with subsequent reduced turnover . while there has been some substitution with trades in nearly similar products being submitted for central clearing so as to be out of scope for the new rule , these transactions did not replace the withdrawn volumes . the first tranche of this rule application in the eu will occur in the middle of the first quarter of 2017 , and similar disruption may occur as the aftermath may be spread across a wider set of participants . “phases ii and iii , ” which cover midsize and smaller institutions , are expected to be implemented over the next four years . during the year ended december 31 , 2016 , industry volumes were generally mixed year-over-year for the otc and listed products we broker in rates , credit , fx , equities , energy and commodities . below is an expanded discussion of the volume and growth drivers of our various financial services brokerage product categories . rates volumes and volatility our rates business is influenced by a number of factors , including global sovereign issuances , secondary trading and the hedging of these sovereign debt instruments . while the amount of global sovereign debt outstanding remains high by historical standards , the level of secondary trading and related hedging activity remained somewhat muted for most of 2016. for example , according to trax , total european fixed income volumes were down 2 % during 2016 as compared with a year earlier . in addition , according to bloomberg and the federal reserve bank of new york , the average daily volume of various u.s. treasuries , excluding treasury bills , among primary dealers was flat during 2016 as compared with a year earlier . additionally , interest rate volumes were up 3 % at eurex , and up 12 % for both ice and the cme group inc. ( “cme” ) , all according to credit suisse research . in comparison , our overall rates revenues were approximately flat as compared to a year earlier . our rates revenues , like the revenues for most of our financial services products , are not totally dependent on market volumes and therefore do not always fluctuate consistently with industry metrics . this is largely because our voice , hybrid , and fully electronic desks in rates often have volume discounts built into their price structure , which results in our rates revenues being less volatile than the overall industry volumes . overall , analysts and economists expect the absolute level of sovereign debt outstanding to remain at elevated levels for the foreseeable future as governments finance their future deficits and roll over their sizable existing debt . for example , the organization for economic cooperation and development ( the “oecd” ) , which includes almost all of the advanced and developed economies of the world , reported that general government debt as a percentage of gdp is estimated to remain at 73 % for the entire oecd in 2018. this would represent a slight increase from 71 % in 2015 , but up considerably from the 39 % figure in 2007. meanwhile , economists expect that the effects of various forms of quantitative easing will continue to negatively impact financial markets , as economic growth remains weak in most oecd countries . as a result , we expect long-term tailwinds in our rates business from continuing high levels of government debt , but continued near-term headwinds due to the current low interest rate environment and continued accommodative monetary policy of many major central banks . 84 foreign exchange volumes and volatility global fx volumes were generally down during 2016 , as the year was impacted by decreased market volatility due to increased uncertainty around global macro events , including upcoming brexit negotiations . thus , spot fx at thomson reuters was down 10 % during the year , overall fx volumes were down 6 % for ebs , while fx futures at cme were down 2 % . in comparison , our overall fx revenues decreased by 6.6 % to $ 303.3 million , primarily related to the challenging market conditions described above . credit volumes the cash portion of our credit business is impacted by the level of global corporate bond issuance , while both the cash and credit derivatives sides of this business are impacted by sovereign and corporate issuance . the

liquidity analysis we consider our liquidity to be comprised of the sum of cash and cash equivalents , reverse repurchase agreements , and marketable securities , which have not been financed , and securities owned . the discussion below describes the key components of our liquidity analysis , including earnings , dividends and distributions , net investing and funding activities , including repurchases and redemptions of class a common stock and partnership units , security settlements , changes in securities held and marketable securities , and changes in our working capital . we consider the following in analyzing changes in our liquidity . our liquidity analysis includes a comparison of our consolidated net income ( loss ) adjusted for certain non-cash items ( e.g. , grants of exchangeability ) as presented on the cash flow statement . dividends and distributions are payments made to our holders of common shares and limited partnership interests and are related to earnings from prior periods . these timing differences will impact our cash flows in a given period . our investing and funding activities represent a combination of our capital raising activities , including short-term borrowings and repayments , issuances of shares under our controlled equity offerings ( net ) , class a common stock repurchases and partnership unit redemptions , purchases and sales of securities , dispositions , and other investments ( e.g . acquisitions , forgivable loans to new brokers and capital expenditures—all net of depreciation and amortization ) . our securities settlement activities primarily represent deposits with clearing organizations . in addition , when advantageous , we may elect to facilitate the settlement of matched principal transactions by funding failed trades , which results in a temporary secured use of cash and is economically beneficial to us . other changes in working capital represent changes primarily in receivables and payables and accrued liabilities that impact our liquidity . changes in reverse repurchase agreements , securities owned and marketable securities may result from additional cash investments or sales , which will be offset by a corresponding change in cash and cash equivalents and accordingly will not result in a change in our liquidity .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity analysis we consider our liquidity to be comprised of the sum of cash and cash equivalents , reverse repurchase agreements , and marketable securities , which have not been financed , and securities owned . the discussion below describes the key components of our liquidity analysis , including earnings , dividends and distributions , net investing and funding activities , including repurchases and redemptions of class a common stock and partnership units , security settlements , changes in securities held and marketable securities , and changes in our working capital . we consider the following in analyzing changes in our liquidity . our liquidity analysis includes a comparison of our consolidated net income ( loss ) adjusted for certain non-cash items ( e.g. , grants of exchangeability ) as presented on the cash flow statement . dividends and distributions are payments made to our holders of common shares and limited partnership interests and are related to earnings from prior periods . these timing differences will impact our cash flows in a given period . our investing and funding activities represent a combination of our capital raising activities , including short-term borrowings and repayments , issuances of shares under our controlled equity offerings ( net ) , class a common stock repurchases and partnership unit redemptions , purchases and sales of securities , dispositions , and other investments ( e.g . acquisitions , forgivable loans to new brokers and capital expenditures—all net of depreciation and amortization ) . our securities settlement activities primarily represent deposits with clearing organizations . in addition , when advantageous , we may elect to facilitate the settlement of matched principal transactions by funding failed trades , which results in a temporary secured use of cash and is economically beneficial to us . other changes in working capital represent changes primarily in receivables and payables and accrued liabilities that impact our liquidity . changes in reverse repurchase agreements , securities owned and marketable securities may result from additional cash investments or sales , which will be offset by a corresponding change in cash and cash equivalents and accordingly will not result in a change in our liquidity . ``` Suspicious Activity Report : on january 12 , 2016 , we completed the merger with gfi by acquiring 100 % of gfi 's outstanding shares ( see “acquisition of gfi group , inc.” ) . during 2016 , we also completed the purchase of rudesill-pera multifamily , the cre group , inc. ( “cre group” ) , perimeter markets , inc. , certain assets of the john buck company , llc and buck management group llc , continental realty ltd , newmark grubb mexico city , the businesses of sunrise brokers group , and walchle lear multifamily advisors . by adding these leading companies to our platform , we have greatly broadened the scope and depth of services we can provide to our clients across our consolidated business . we have also continued to make key hires around the world and integrate our recent acquisitions onto our global platform . we expect these additions to increase our revenues and earnings per share going forward . these investments underscore bgc 's ongoing commitment to make accretive acquisitions and profitable hires . confidential submission of draft registration statement for proposed initial public offering on february 9 , 2017 , we announced that we had confidentially submitted a draft registration statement on form s-1 with the u.s. securities and exchange commission ( the “sec” ) relating to the proposed initial public offering of the class a common stock of a newly formed subsidiary that will hold our real estate services business , which operates as “newmark grubb knight frank” or “ngkf.” the number of class a shares to be offered and the price range for the proposed offering have not yet been determined . the initial public offering is part of our plan to separate our real estate services business into a separate public company . following some period after the expected offering , we may , subject to market and other conditions , distribute the shares that we will hold of the newly formed subsidiary pro rata to our stockholders in a manner intended to qualify as tax-free for u.s. federal income tax purposes . 79 lucera acquisition on november 4 , 2016 , we acquired from cantor the 80 % of the lucera business ( also known as “lfi holdings , llc” or “lfi” ) not already owned by us . the aggregate purchase price paid by the company to cantor consisted of approximately $ 24.2 million in cash plus a $ 4.8 million post-closing adjustment . lucera is a technology infrastructure provider tailored to the financial sector headquartered in new york . this transaction has been determined to be a combination of entities under common control that resulted in a change in the reporting entity . accordingly , our financial results have been retrospectively adjusted to include the financial results of lucera in the current and prior periods as if lucera had always been consolidated . the following tables summarize the impact of the transaction to our quarterly and annual consolidated statements of operations for the periods indicated ( in thousands , except per share amounts ) : replace_table_token_4_th replace_table_token_5_th 80 acquisition of gfi group , inc. gfi is a leading intermediary and provider of trading technologies and support services to the global otc and listed markets . gfi serves institutional clients in operating electronic and hybrid markets for cash and derivative products across multiple asset classes . on february 26 , 2015 , we successfully completed our tender offer to acquire shares of common stock , par value $ 0.01 per share , of gfi for $ 6.10 per share in cash and accepted for purchase 54.3 million shares tendered to us pursuant to the offer . the tendered shares , together with the 17.1 million shares already owned by us , represented approximately 56 % of the then-outstanding shares of gfi . we issued payment for the tendered shares on march 4 , 2015 in the aggregate amount of $ 331.1 million . on april 28 , 2015 , we purchased from gfi approximately 43.0 million new shares at that date 's closing price of $ 5.81 per share , for an aggregate purchase price of $ 250 million . the purchase price was paid to gfi in the form of a note due on june 19 , 2018 that bore an interest rate of libor plus 200 basis points . the new shares and the note are eliminated in consolidation . following the issuance of the new shares , we owned approximately 67 % of gfi 's outstanding common stock , which gave us control over the timing and process for the completion of a back-end merger ( the “back-end mergers” ) pursuant to the tender offer agreement . on january 12 , 2016 , we completed our acquisition ( the “jpi merger” ) of jersey partners , inc. ( “jpi” ) . the jpi merger occurred pursuant to a merger agreement , dated as of december 22 , 2015. shortly following the completion of the jpi merger , a subsidiary of bgc merged with and into gfi pursuant to a short-form merger under delaware law , with gfi continuing as the surviving entity . the back-end mergers allowed bgc to acquire the remaining approximately 33 % of the outstanding shares of gfi common stock that bgc did not already own . following the closing of the back-end mergers , bgc and its affiliates now own 100 % of the outstanding shares of gfi 's common stock . in total , approximately 23.5 million shares of bgc class a common stock were issued and $ 111.2 million in cash will be paid with respect to the closing of the back-end mergers , inclusive of adjustments ( $ 89.9 million has been paid as of december 31 , 2016 ) . story_separator_special_tag the accord , which will continue to be phased in over the coming years , will force most large banks in g-20 nations to hold approximately three times as much tier 1 capital as is required under the previous set of rules . these capital rules make it more expensive for banks to hold non-sovereign debt assets on their balance sheets , and as a result , analysts say that banks have reduced or will reduce their trading activity in corporate and asset-backed fixed income securities as well as in various other otc cash and derivative instruments . we believe that this has further reduced overall industry volumes in many of the products we broker , particularly in credit . on september 1 , 2016 , the u.s. and japan implemented “phase i” of the basel committee 's edict for initial margin and variation margins to be exchanged bilaterally between participants transacting in non-centrally cleared derivatives . “phase i” adversely impacted trading activity at our large sell-side institutional clients during the third quarter of 2016 as they worked through arranging documentation to support the exchange of margins with each other . some clients remain unable to deal with major counterparties . in addition , uncertainty around compliance globally has affected derivatives pricing . although regulators in europe , hong kong , singapore and australia previously announced delays to the “phase i” implementation date , most uncleared bilateral rates , fx and credit derivatives trading with u.s. counterparties has necessarily included initial margin , resulting in a general widening of bid-offer spreads with subsequent reduced turnover . while there has been some substitution with trades in nearly similar products being submitted for central clearing so as to be out of scope for the new rule , these transactions did not replace the withdrawn volumes . the first tranche of this rule application in the eu will occur in the middle of the first quarter of 2017 , and similar disruption may occur as the aftermath may be spread across a wider set of participants . “phases ii and iii , ” which cover midsize and smaller institutions , are expected to be implemented over the next four years . during the year ended december 31 , 2016 , industry volumes were generally mixed year-over-year for the otc and listed products we broker in rates , credit , fx , equities , energy and commodities . below is an expanded discussion of the volume and growth drivers of our various financial services brokerage product categories . rates volumes and volatility our rates business is influenced by a number of factors , including global sovereign issuances , secondary trading and the hedging of these sovereign debt instruments . while the amount of global sovereign debt outstanding remains high by historical standards , the level of secondary trading and related hedging activity remained somewhat muted for most of 2016. for example , according to trax , total european fixed income volumes were down 2 % during 2016 as compared with a year earlier . in addition , according to bloomberg and the federal reserve bank of new york , the average daily volume of various u.s. treasuries , excluding treasury bills , among primary dealers was flat during 2016 as compared with a year earlier . additionally , interest rate volumes were up 3 % at eurex , and up 12 % for both ice and the cme group inc. ( “cme” ) , all according to credit suisse research . in comparison , our overall rates revenues were approximately flat as compared to a year earlier . our rates revenues , like the revenues for most of our financial services products , are not totally dependent on market volumes and therefore do not always fluctuate consistently with industry metrics . this is largely because our voice , hybrid , and fully electronic desks in rates often have volume discounts built into their price structure , which results in our rates revenues being less volatile than the overall industry volumes . overall , analysts and economists expect the absolute level of sovereign debt outstanding to remain at elevated levels for the foreseeable future as governments finance their future deficits and roll over their sizable existing debt . for example , the organization for economic cooperation and development ( the “oecd” ) , which includes almost all of the advanced and developed economies of the world , reported that general government debt as a percentage of gdp is estimated to remain at 73 % for the entire oecd in 2018. this would represent a slight increase from 71 % in 2015 , but up considerably from the 39 % figure in 2007. meanwhile , economists expect that the effects of various forms of quantitative easing will continue to negatively impact financial markets , as economic growth remains weak in most oecd countries . as a result , we expect long-term tailwinds in our rates business from continuing high levels of government debt , but continued near-term headwinds due to the current low interest rate environment and continued accommodative monetary policy of many major central banks . 84 foreign exchange volumes and volatility global fx volumes were generally down during 2016 , as the year was impacted by decreased market volatility due to increased uncertainty around global macro events , including upcoming brexit negotiations . thus , spot fx at thomson reuters was down 10 % during the year , overall fx volumes were down 6 % for ebs , while fx futures at cme were down 2 % . in comparison , our overall fx revenues decreased by 6.6 % to $ 303.3 million , primarily related to the challenging market conditions described above . credit volumes the cash portion of our credit business is impacted by the level of global corporate bond issuance , while both the cash and credit derivatives sides of this business are impacted by sovereign and corporate issuance . the

prior to august 1 , 2019 , finwise bank retained 5 % of the balances and sold a 95 % participation to ef spv . on august 1 , 2019 , ef spv purchased an additional 1 % participation in the outstanding portfolio with the participation percentage revised going forward to 96 % . these loan participation purchases are funded through a separate financing facility ( the `` ef spv facility `` ) , effective february 1 , 2019 , and through cash flows from operations generated by ef spv . the ef spv facility has a maximum total borrowing amount available of $ 150 million . we do not own ef spv , but we have a credit default protection agreement with ef spv whereby we provide credit protection to the investors in ef spv against rise loan losses in return for a credit premium . elevate is required to consolidate ef spv as a variable interest entity under gaap and the consolidated financial statements include revenue , losses and loans receivable related to the 96 % of the rise installment loans originated by finwise bank and sold to ef spv . 76 the elastic line of credit product is originated by a third-party lender , republic bank , which initially provides all of the funding for that product . republic bank retains 10 % of the balances of all loans originated and sells a 90 % loan participation in the elastic lines of credit . an spv structure was implemented such that the loan participations are sold by republic bank to elastic spv , ltd. ( “ elastic spv ” ) and elastic spv receives its funding from vpc in a separate financing facility ( the “ espv facility ” ) , which was finalized on july 13 , 2015. we do not own elastic spv but we have a credit default protection agreement with elastic spv whereby we provide credit protection to the investors in elastic spv against elastic loan losses in return for a credit premium . per the terms of this agreement , under us gaap , the company is the primary beneficiary of elastic spv and is required to consolidate the financial results of elastic spv as a variable interest entity ( `` vie `` ) in its consolidated financial results . the espv facility has also been amended several times and the original commitment amount of $ 50 million has grown to $ 350 million as of december 31 , 2019 . see “ —liquidity and capital resources—debt facilities . ” our management assesses our financial performance and future strategic goals through key metrics based primarily on the following three themes : revenue growth . key metrics related to revenue growth that we monitor by product include the ending and average combined loan balances outstanding , the effective apr of our product loan portfolios , the total dollar value of loans originated , the number of new customer loans made , the ending number of customer loans outstanding and the related customer acquisition costs ( “ cac ” ) associated with each new customer loan made . we include cac as a key metric when analyzing revenue growth ( rather than as a key metric within margin expansion ) . stable credit quality . since the time they were managing our legacy us products , our management team has maintained stable credit quality across the loan portfolio they were managing . additionally , in the periods covered in this management 's discussion and analysis of financial condition and results of operations , we have improved our credit quality . the credit quality metrics we monitor include net charge-offs as a percentage of revenues , the combined loan loss reserve as a percentage of outstanding combined loans , total provision for loan losses as a percentage of revenues and the percentage of past due combined loans receivable – principal . margin expansion . we expect that our operating margins will continue to expand over the near term as we lower our direct marketing costs and efficiently manage our operating expenses while continuing to improve our credit quality . over the next several years , as we continue to scale our loan portfolio , we anticipate that our direct marketing costs primarily associated with new customer acquisitions will decline to approximately 10 % of revenues and our operating expenses will decline to approximately 20 % of revenues . we aim to manage our business to achieve a long-term operating margin of 20 % , and do not expect our operating margin to increase beyond that level , as we intend to pass on any improvements over our targeted margins to our customers in the form of lower aprs . we believe this is a critical component of our responsible lending platform and over time will also help us continue to attract new customers and retain existing customers . key financial and operating metrics as discussed above , we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and in making strategic decisions . certain of our metrics are non-gaap financial measures . we believe that such metrics are useful in period-to-period comparisons of our core business . however , non-gaap financial measures are not an alternative to any measure of financial performance calculated and presented in accordance with us gaap . see “ —non-gaap financial measures ” for a reconciliation of our non-gaap measures to us gaap . 77 revenues replace_table_token_7_th _ ( 1 ) combined loans receivable is defined as loans owned by the company and consolidated vies plus loans originated and owned by third-party lenders pursuant to our cso programs . story_separator_special_tag hence , another key credit quality metric we monitor is the percentage of past due combined loans receivable – principal , as an increase in past due loans will cause an increase in our combined loan loss reserve and related additional provision for loan losses to increase the reserve . for customers that are not past due , we further stratify these loans into loss rates by payment number , as a new customer that is about to make a first loan payment has a significantly higher risk of loss than a customer who has successfully made ten payments on an existing loan with us . based on this methodology , during the past three years we have seen our combined loan loss reserve as a percentage of combined loans receivable fluctuate between approximately 13 % and 17 % depending on the overall mix of new , former and past due customer loans . recent trends . total loan loss provision for the year ended december 31 , 2019 was 49 % of revenues , which was within our targeted range of 45 % to 55 % , and lower than the 52 % in the prior year period . for the year ended december 31 , 2019 , net charge-offs as a percentage of revenues totaled 50 % , compared to 52 % in the prior year period . we expect total loan loss provision as a percentage of revenues to continue to remain within our targeted range due to ongoing maturation of the loan portfolio and continued improvements in our underwriting models and processes . the combined loan loss reserve as a percentage of combined loans receivable totaled 13 % and 14 % as of december 31 , 2019 and december 31 , 2018 , respectively , reflecting improvements in our credit quality in each product portfolio . past due loan balances at december 31 , 2019 were 10 % of total combined loans receivable - principal , down from 11 % from a year ago . additionally , we also look at principal loan charge-offs ( including both credit and fraud losses ) by vintage as a percentage of combined loans originated - principal . as the below table shows , our cumulative principal loan charge-offs through december 31 , 2019 for each annual vintage since the 2013 vintage are generally under 30 % and continue to generally trend at or slightly below our 25 % to 30 % targeted range . in the beginning of 2019 , we implemented new fraud tools that have helped lower fraud losses . additionally , we rolled out our next generation of credit models during the second quarter of 2019 and continued refining the models during the third quarter of 2019. the preliminary data on the 2019 vintage is that it is performing better than both 2017 and 2018 vintages . 82 ( 1 ) the 2019 vintage is not yet fully mature from a loss perspective . 83 margins replace_table_token_13_th _ ( 1 ) non-gaap measure . see “ —non-gaap financial measures—net charge-offs and additional provision for loan losses . ” gross margin is calculated as revenues minus cost of sales , or gross profit , expressed as a percentage of revenues , and operating margin is calculated as operating income expressed as a percentage of revenues . we expect our margins to continue to increase as we continue to scale our business while maintaining stable credit quality . we allocate all marketing spend only to new customer loans . as our loan portfolio continues to mature with more customer loans that are from repeat customers , we will be generating revenue from those repeat customer loans without incurring any related marketing expense . as a result , we expect marketing expense as a percentage of revenue to continue to decline over time resulting in an increased gross profit margin . additionally , being an online fintech company , we believe that as we continue to scale our business , we will generate operating efficiencies and our operating expense as a percentage of revenues will decline resulting in an increased operating margin . recent operating margin trends . for the year ended december 31 , 2019 , our operating margin was 15 % , which was an improvement from 12 % in the prior year period . this increase was largely due to a higher gross margin driven by lower direct marketing costs and an overall lower loan loss provision due to improved credit quality in the loan portfolio . direct marketing costs for the year ended december 31 , 2019 decreased to 7 % of revenue from 10 % in the prior year period . this decrease is due to the measured new customer growth we targeted as we focused on deploying our new credit models during the second quarter of 2019 and refining our credit models during the third quarter of 2019. the lower marketing spend , coupled with improved marketing efficiencies , resulted in a cac of $ 207 for the year ended december 31 , 2019 , which is below the low end of our targeted range of $ 250 to $ 300 and lower than the cac of $ 245 for the prior year . we expect cac to continue to be within or below our targeted range of $ 250 to $ 300 as we continue to optimize the efficiency of our marketing channels for our rise and elastic products , and benefit from decreased competition in the uk , although we may see some quarterly volatility in cac . 84 non-gaap financial measures we believe that the inclusion of the following non-gaap financial measures in this annual report on form 10-k can provide a useful measure for period-to-period comparisons of our core business , provide transparency and useful information to investors and others in understanding and evaluating our operating results , and enable investors to better compare our operating performance with the

debt facilities vpc facility vpc facility term notes on january 30 , 2014 , we entered into the vpc facility in order to fund our rise and sunny products and provide working capital . the vpc facility has been amended several times , with the most recent amendment effective february 1 , 2019 , to increase the maximum total borrowing amount available and other terms of the vpc facility . the vpc facility provided the following term notes as of december 31 , 2019 : a maximum borrowing amount of $ 350 million used to fund the rise loan portfolio ( “ us term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor , with a 1 % floor ) plus 11 % . this resulted in a blended interest rate paid of 12.79 % on debt outstanding under this facility as of december 31 , 2018 . the company entered into an interest rate cap on january 11 , 2018 to mitigate the floating interest rate risk on the aggregate $ 240 million outstanding as of december 31 , 2017. this cap matured in february 2019. upon the february 1 , 2019 amendment date , the interest rate of the debt outstanding as of the amendment date was fixed through the january 1 , 2024 maturity date at 10.23 % ( base rate of 2.73 % plus 7.5 % ) . all future borrowings under this facility will bear an interest rate at a base rate ( defined as the greater of 3-month libor , the five-year libor swap rate or 1 % ) plus 7.5 % at the borrowing date . the weighted-average base rate on the outstanding balance at december 31 , 2019 was 2.73 % and the overall rate was 10.23 % . a maximum borrowing amount of $ 132 million used to fund the uk sunny loan portfolio ( “ uk term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor rate ) plus 14 % .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 facilities vpc facility vpc facility term notes on january 30 , 2014 , we entered into the vpc facility in order to fund our rise and sunny products and provide working capital . the vpc facility has been amended several times , with the most recent amendment effective february 1 , 2019 , to increase the maximum total borrowing amount available and other terms of the vpc facility . the vpc facility provided the following term notes as of december 31 , 2019 : a maximum borrowing amount of $ 350 million used to fund the rise loan portfolio ( “ us term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor , with a 1 % floor ) plus 11 % . this resulted in a blended interest rate paid of 12.79 % on debt outstanding under this facility as of december 31 , 2018 . the company entered into an interest rate cap on january 11 , 2018 to mitigate the floating interest rate risk on the aggregate $ 240 million outstanding as of december 31 , 2017. this cap matured in february 2019. upon the february 1 , 2019 amendment date , the interest rate of the debt outstanding as of the amendment date was fixed through the january 1 , 2024 maturity date at 10.23 % ( base rate of 2.73 % plus 7.5 % ) . all future borrowings under this facility will bear an interest rate at a base rate ( defined as the greater of 3-month libor , the five-year libor swap rate or 1 % ) plus 7.5 % at the borrowing date . the weighted-average base rate on the outstanding balance at december 31 , 2019 was 2.73 % and the overall rate was 10.23 % . a maximum borrowing amount of $ 132 million used to fund the uk sunny loan portfolio ( “ uk term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor rate ) plus 14 % . ``` Suspicious Activity Report : prior to august 1 , 2019 , finwise bank retained 5 % of the balances and sold a 95 % participation to ef spv . on august 1 , 2019 , ef spv purchased an additional 1 % participation in the outstanding portfolio with the participation percentage revised going forward to 96 % . these loan participation purchases are funded through a separate financing facility ( the `` ef spv facility `` ) , effective february 1 , 2019 , and through cash flows from operations generated by ef spv . the ef spv facility has a maximum total borrowing amount available of $ 150 million . we do not own ef spv , but we have a credit default protection agreement with ef spv whereby we provide credit protection to the investors in ef spv against rise loan losses in return for a credit premium . elevate is required to consolidate ef spv as a variable interest entity under gaap and the consolidated financial statements include revenue , losses and loans receivable related to the 96 % of the rise installment loans originated by finwise bank and sold to ef spv . 76 the elastic line of credit product is originated by a third-party lender , republic bank , which initially provides all of the funding for that product . republic bank retains 10 % of the balances of all loans originated and sells a 90 % loan participation in the elastic lines of credit . an spv structure was implemented such that the loan participations are sold by republic bank to elastic spv , ltd. ( “ elastic spv ” ) and elastic spv receives its funding from vpc in a separate financing facility ( the “ espv facility ” ) , which was finalized on july 13 , 2015. we do not own elastic spv but we have a credit default protection agreement with elastic spv whereby we provide credit protection to the investors in elastic spv against elastic loan losses in return for a credit premium . per the terms of this agreement , under us gaap , the company is the primary beneficiary of elastic spv and is required to consolidate the financial results of elastic spv as a variable interest entity ( `` vie `` ) in its consolidated financial results . the espv facility has also been amended several times and the original commitment amount of $ 50 million has grown to $ 350 million as of december 31 , 2019 . see “ —liquidity and capital resources—debt facilities . ” our management assesses our financial performance and future strategic goals through key metrics based primarily on the following three themes : revenue growth . key metrics related to revenue growth that we monitor by product include the ending and average combined loan balances outstanding , the effective apr of our product loan portfolios , the total dollar value of loans originated , the number of new customer loans made , the ending number of customer loans outstanding and the related customer acquisition costs ( “ cac ” ) associated with each new customer loan made . we include cac as a key metric when analyzing revenue growth ( rather than as a key metric within margin expansion ) . stable credit quality . since the time they were managing our legacy us products , our management team has maintained stable credit quality across the loan portfolio they were managing . additionally , in the periods covered in this management 's discussion and analysis of financial condition and results of operations , we have improved our credit quality . the credit quality metrics we monitor include net charge-offs as a percentage of revenues , the combined loan loss reserve as a percentage of outstanding combined loans , total provision for loan losses as a percentage of revenues and the percentage of past due combined loans receivable – principal . margin expansion . we expect that our operating margins will continue to expand over the near term as we lower our direct marketing costs and efficiently manage our operating expenses while continuing to improve our credit quality . over the next several years , as we continue to scale our loan portfolio , we anticipate that our direct marketing costs primarily associated with new customer acquisitions will decline to approximately 10 % of revenues and our operating expenses will decline to approximately 20 % of revenues . we aim to manage our business to achieve a long-term operating margin of 20 % , and do not expect our operating margin to increase beyond that level , as we intend to pass on any improvements over our targeted margins to our customers in the form of lower aprs . we believe this is a critical component of our responsible lending platform and over time will also help us continue to attract new customers and retain existing customers . key financial and operating metrics as discussed above , we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and in making strategic decisions . certain of our metrics are non-gaap financial measures . we believe that such metrics are useful in period-to-period comparisons of our core business . however , non-gaap financial measures are not an alternative to any measure of financial performance calculated and presented in accordance with us gaap . see “ —non-gaap financial measures ” for a reconciliation of our non-gaap measures to us gaap . 77 revenues replace_table_token_7_th _ ( 1 ) combined loans receivable is defined as loans owned by the company and consolidated vies plus loans originated and owned by third-party lenders pursuant to our cso programs . story_separator_special_tag hence , another key credit quality metric we monitor is the percentage of past due combined loans receivable – principal , as an increase in past due loans will cause an increase in our combined loan loss reserve and related additional provision for loan losses to increase the reserve . for customers that are not past due , we further stratify these loans into loss rates by payment number , as a new customer that is about to make a first loan payment has a significantly higher risk of loss than a customer who has successfully made ten payments on an existing loan with us . based on this methodology , during the past three years we have seen our combined loan loss reserve as a percentage of combined loans receivable fluctuate between approximately 13 % and 17 % depending on the overall mix of new , former and past due customer loans . recent trends . total loan loss provision for the year ended december 31 , 2019 was 49 % of revenues , which was within our targeted range of 45 % to 55 % , and lower than the 52 % in the prior year period . for the year ended december 31 , 2019 , net charge-offs as a percentage of revenues totaled 50 % , compared to 52 % in the prior year period . we expect total loan loss provision as a percentage of revenues to continue to remain within our targeted range due to ongoing maturation of the loan portfolio and continued improvements in our underwriting models and processes . the combined loan loss reserve as a percentage of combined loans receivable totaled 13 % and 14 % as of december 31 , 2019 and december 31 , 2018 , respectively , reflecting improvements in our credit quality in each product portfolio . past due loan balances at december 31 , 2019 were 10 % of total combined loans receivable - principal , down from 11 % from a year ago . additionally , we also look at principal loan charge-offs ( including both credit and fraud losses ) by vintage as a percentage of combined loans originated - principal . as the below table shows , our cumulative principal loan charge-offs through december 31 , 2019 for each annual vintage since the 2013 vintage are generally under 30 % and continue to generally trend at or slightly below our 25 % to 30 % targeted range . in the beginning of 2019 , we implemented new fraud tools that have helped lower fraud losses . additionally , we rolled out our next generation of credit models during the second quarter of 2019 and continued refining the models during the third quarter of 2019. the preliminary data on the 2019 vintage is that it is performing better than both 2017 and 2018 vintages . 82 ( 1 ) the 2019 vintage is not yet fully mature from a loss perspective . 83 margins replace_table_token_13_th _ ( 1 ) non-gaap measure . see “ —non-gaap financial measures—net charge-offs and additional provision for loan losses . ” gross margin is calculated as revenues minus cost of sales , or gross profit , expressed as a percentage of revenues , and operating margin is calculated as operating income expressed as a percentage of revenues . we expect our margins to continue to increase as we continue to scale our business while maintaining stable credit quality . we allocate all marketing spend only to new customer loans . as our loan portfolio continues to mature with more customer loans that are from repeat customers , we will be generating revenue from those repeat customer loans without incurring any related marketing expense . as a result , we expect marketing expense as a percentage of revenue to continue to decline over time resulting in an increased gross profit margin . additionally , being an online fintech company , we believe that as we continue to scale our business , we will generate operating efficiencies and our operating expense as a percentage of revenues will decline resulting in an increased operating margin . recent operating margin trends . for the year ended december 31 , 2019 , our operating margin was 15 % , which was an improvement from 12 % in the prior year period . this increase was largely due to a higher gross margin driven by lower direct marketing costs and an overall lower loan loss provision due to improved credit quality in the loan portfolio . direct marketing costs for the year ended december 31 , 2019 decreased to 7 % of revenue from 10 % in the prior year period . this decrease is due to the measured new customer growth we targeted as we focused on deploying our new credit models during the second quarter of 2019 and refining our credit models during the third quarter of 2019. the lower marketing spend , coupled with improved marketing efficiencies , resulted in a cac of $ 207 for the year ended december 31 , 2019 , which is below the low end of our targeted range of $ 250 to $ 300 and lower than the cac of $ 245 for the prior year . we expect cac to continue to be within or below our targeted range of $ 250 to $ 300 as we continue to optimize the efficiency of our marketing channels for our rise and elastic products , and benefit from decreased competition in the uk , although we may see some quarterly volatility in cac . 84 non-gaap financial measures we believe that the inclusion of the following non-gaap financial measures in this annual report on form 10-k can provide a useful measure for period-to-period comparisons of our core business , provide transparency and useful information to investors and others in understanding and evaluating our operating results , and enable investors to better compare our operating performance with the

in the year ended december 31 , 2019 , our clients completed a total of 1.1 million visits on the amwell platform , while in the year ended december 31 , 2020 , clients significantly expanded their use of the amwell platform with 5.9 million completed visits . during the covid-19 crisis , utilization of the platform achieved levels not seen before , evident by a larger number of clients ' own providers using the amwell platform . amg providers accounted for 27 % of total visits performed versus 66 % of total visits performed on the amwell platform during the years ended december 31 , 2020 and 2019 , respectively . 57 new use patterns and functionality looking past covid-19 , we can see that some effects of the current period may be felt beyond the immediate crisis . in particular , we are seeing the growing awareness among consumers of the availability and efficacy of telehealth for many healthcare needs and we are seeing more widespread hands-on experience among providers in delivering care via telehealth . it remains unclear the extent to which the currently more relaxed regulatory environment , favorable reimbursement policies , and leniency with respect to cross-state provider licensure will become normative . however , we believe that the current experience is more likely to be favorable to telehealth and amwell 's business than otherwise over the longer term . new client acquisition we believe our ability to add net new health system and health plan clients is a key indicator of our increasing market adoption and future revenue potential . we maintain dedicated direct sales teams for both health systems and health plans focused on selling solutions that meet each of their respective needs . our direct sales teams sell our full suite of technology , services and carepoints . channel partners also play an important role in marketing and selling our products to our customer base , primarily focusing on the amwell platform and carepoints . channel partners reduce our sales cycle and lower customer acquisition costs . for example , through our ehr channel partners we are able to natively embed our technology into existing health system technology infrastructure which , as a competitive differentiator , may lead to a higher win rate . in addition , because of the technology integration , an ehr partner sale may accelerate our ability to launch the technology and ultimately recognize revenue . carepoint channel partners primarily consist of value-added resellers that have established relationships with health systems and health plans . we typically generate lower revenues in connection with sales obtained through these channel partner agreements . client expansion and retention health system contracts are initially priced based on the size of the system and their projected visit activity . the contract value is typically expected to grow as the health system increases the number of providers on the platform and the number of consultations performed through the platform or adds the ability to deliver new use cases across their enterprise whether by the health system 's own providers or through amg . when a client chooses to adopt a new use case , amwell configures a module for its amwell platform instance . a module represents a unique patient or provider workflow , documentation requirement , or technology integration and associated services . our platform modules currently support over 100 active use cases with new modules continually being developed as virtual care continues to expand into new areas . we expand business with health plans when they expand the number of members who have access to our amwell platform and amg services or through offering new clinical programs to eligible plan members . in many cases health plans pay amwell incremental subscription fees for adding new members to the amwell platform , and for each clinical program that is deployed , which over time increases the annual contract value per health plan , a key indicator of the growth of our business . we believe our ability to grow subscription revenue in our existing health plan client base is an indicator of the long-term value of our customer relationships . active providers an important indicator of the value of our amwell platform to our clients is the number of non-amg providers that are active on the amwell platform . we define “ active providers ” as providers that have delivered a visit on the amwell platform at least once in the last 12 months . active providers demonstrate the prevalence of telehealth within our clients in both home and hospital environments . we believe active providers is a measure of our success in delivering on our mission of enabling access to care . we expect that the number of active providers will increase over time as a result of several factors : the number of modules and use cases deployed within health systems the adoption of telehealth by providers across the spectrum of care the number of programs offered through health plans the continued improvement in the regulatory environment for telehealth , including reimbursement for telehealth services 58 the ongoing consumerization of healthcare invest in growth we expect to continue to focus on long-term revenue growth through investments in technology development and sales and marketing efforts . in addition , we believe additional investments in platform modules and clinical programs will allow us to continue to penetrate our products and services further in to our existing client relationships . accordingly , in the short term we expect these activities to increase our net losses , but in the long term we anticipate that these investments will positively impact our results of operations . regulatory environment our operations are subject to comprehensive united states federal , state and local and international regulation in the jurisdictions in which we do business . story_separator_special_tag 64 consolidated results of operations the following table sets forth our summarized consolidated statement of operations data for the years ended december 31 , 2020 , 2019 and 2018 and the dollar and percentage change between the respective periods : replace_table_token_8_th revenue for the year ended december 31 , 2020 , the increase in revenue was substantially driven by an increase in visit revenue volume ( $ 76.5 million increase ) . visit revenue has increased due to the impact of the covid-19 crisis . revenue increase was also attributable to new clients using our platform and existing clients adding additional modules to their platform subscriptions , such as our covid-19 module . we believe that the strength of our technology platform will continue to serve as the foundation for our revenue growth . subscription revenue from health systems was $ 49.8 million for the year ended december 31 , 2020 , compared to $ 38.8 million during december 31 , 2019 , an increase of $ 11.0 million , or 28 % . revenue earned from amg patient visits increased by $ 76.5 million , or 188 % , from $ 40.7 million for the year ended december 31 , 2019 to $ 117.2 million in the december 31 , 2020. the increase was primarily driven by increased utilization across our health system and health plan clients primarily from the covid-19 pandemic as well as overall increased acceptance of telemedicine . amg visits constituted 27 % of the total visits for the year ended december 31 , 2020 , compared to 66 % for the year ended december 31 , 2019. revenue earned from services and carepoints was $ 29.7 million for the year ended december 31 , 2020 , compared to $ 24.5 million during december 31 , 2019 , an increase of $ 5.2 million , or 21 % . the increase in services and carepoints revenue was largely due to the overall increased volume of carepoints sales and partially the result of timing with respect to the performance of services and the timing of delivery of carepoints . for the year ended december 31 , 2019 , the increase in revenue was predominately the result of new clients using the platform as the average number of health system and health plan clients on our platform increased by 50 , to 194 as of december 31 , 2019 from 144 as of december 31 , 2018 , a 35 % increase . we believe that the strength of our technology platform will continue to serve as the foundation for our revenue growth . subscription revenue from health system clients was $ 38.8 million for the year ended december 31 , 2019 , compared to $ 27.3 million during the year ended december 31 , 2018 , an increase of $ 11.5 million , or 42 % . this increase was substantially driven by a 50 % increase in the average number of subscription clients increasing from 92 to 138. subscription revenue from health plan clients was $ 30.6 million for the year ended december 31 , 2019 , compared to $ 23.6 million during the year ended december 31 , 2018 , an increase of $ 7.0 million , or 30 % . this increase was driven by an 8 % increase in the average number of subscription clients , increasing from 52 to 56 , and increases in the health plan client average contract value increasing 21 % . the total number of paid amg patient visits increased 38 % , by 208,000 , from 551,000 in the year ended december 31 , 2018 to 759,000 in the year ended december 31 , 2019. this increase was primarily driven by increased utilization across our health system and health plan clients . amg visits constituted 66 % of the total visits for the year ended december 31 , 2019 , compared to 73 % for the year ended december 31 , 2018 . 65 costs of revenue , excluding depreciation and amortization of intangible assets for the year ended december 31 , 2020 , the increase in cost of revenue was primarily due to an increase of $ 50.8 million in provider related costs , with some portion of these provider costs due to increased visit volumes . some portion of these provider costs were above typical levels due to the covid-19 emergency rapid expansion of active providers . the increase in visit volume also resulted in the need to utilize a significantly higher level of non-clinical contractor resources to properly service visit demand . the company experienced a $ 14.1 million increase in employee-related expense ( primarily in the form of variable compensation and stock compensation expense ) . hardware costs increased $ 6.0 million related to the increase in sale of devices . there was also an increase of $ 5.5 million in third party software . as a percentage of revenue , cost of revenues has increased as a result of the shift in revenue mix . the impact of covid-19 has increased our visit revenue , which generates a lower gross margin contribution . for the year ended december 31 , 2019 , the increase in cost of revenue was primarily due to an increase of $ 4.6 million in employee-related expense ( inclusive of stock compensation expense ) and a $ 16.8 million increase in other costs , primarily provider related costs , combined with implementation and hosting related expenses . with respect to employee-related expense , our total administrative employee headcount dedicated to servicing amg increased to 158 on december 31 , 2019 , as compared to 145 on december 31 , 2018. as a percentage of revenue , cost of revenues have remained relatively consistent year over year . research and development expenses research and development expenses increased for the year ended december 31 , 2020 , compared the year ended december 31 , 2019 , which was primarily driven

cash used in operating activities for the year ended december 31 , 2020 , cash used in operating activities was $ 112.5 million . the primary driver of this use of cash was our net loss of $ 228.6 million . the net loss for the year was reflective of the investments made back into the company ( from both a personnel and technology perspective ) , partially offset by the overall growth of our business including an increase in new clients and expansion of business with existing clients . the net loss was partially offset by non-cash expenses of $ 134.6 million ( primarily stock-based compensation of $ 118.4 million and depreciation and amortization of $ 10.2 million ) . for the year ended december 31 , 2019 , cash used in operating activities was $ 81.9 million . the primary driver of this use of cash was our net loss of $ 88.4 million . the net loss for the year was reflective of the investments made back into the company ( from both a personnel and technology perspective ) , partially offset by the overall growth of our business including an increase in new clients and expansion of business with existing clients . the net loss was partially offset by non-cash expenses of $ 21.0 million ( primarily stock-based compensation of $ 12.1 million and depreciation and amortization of $ 7.8 million ) . for the year ended december 31 , 2018 , cash used in operating activities was $ 74.0 million . the primary driver of this use of cash was our net loss of $ 52.3 million . the cash used for operating activities was primarily driven by the overall growth of our business including an increase in new clients ( through organic growth and the avizia acquisition ) and expansion of business by existing clients . the net loss was partially offset by non-cash charges totaling $ 15.1 million , which was primarily comprised of stock-based compensation of $ 7.7 million and depreciation and amortization expense of $ 5.3 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash used in operating activities for the year ended december 31 , 2020 , cash used in operating activities was $ 112.5 million . the primary driver of this use of cash was our net loss of $ 228.6 million . the net loss for the year was reflective of the investments made back into the company ( from both a personnel and technology perspective ) , partially offset by the overall growth of our business including an increase in new clients and expansion of business with existing clients . the net loss was partially offset by non-cash expenses of $ 134.6 million ( primarily stock-based compensation of $ 118.4 million and depreciation and amortization of $ 10.2 million ) . for the year ended december 31 , 2019 , cash used in operating activities was $ 81.9 million . the primary driver of this use of cash was our net loss of $ 88.4 million . the net loss for the year was reflective of the investments made back into the company ( from both a personnel and technology perspective ) , partially offset by the overall growth of our business including an increase in new clients and expansion of business with existing clients . the net loss was partially offset by non-cash expenses of $ 21.0 million ( primarily stock-based compensation of $ 12.1 million and depreciation and amortization of $ 7.8 million ) . for the year ended december 31 , 2018 , cash used in operating activities was $ 74.0 million . the primary driver of this use of cash was our net loss of $ 52.3 million . the cash used for operating activities was primarily driven by the overall growth of our business including an increase in new clients ( through organic growth and the avizia acquisition ) and expansion of business by existing clients . the net loss was partially offset by non-cash charges totaling $ 15.1 million , which was primarily comprised of stock-based compensation of $ 7.7 million and depreciation and amortization expense of $ 5.3 million . ``` Suspicious Activity Report : in the year ended december 31 , 2019 , our clients completed a total of 1.1 million visits on the amwell platform , while in the year ended december 31 , 2020 , clients significantly expanded their use of the amwell platform with 5.9 million completed visits . during the covid-19 crisis , utilization of the platform achieved levels not seen before , evident by a larger number of clients ' own providers using the amwell platform . amg providers accounted for 27 % of total visits performed versus 66 % of total visits performed on the amwell platform during the years ended december 31 , 2020 and 2019 , respectively . 57 new use patterns and functionality looking past covid-19 , we can see that some effects of the current period may be felt beyond the immediate crisis . in particular , we are seeing the growing awareness among consumers of the availability and efficacy of telehealth for many healthcare needs and we are seeing more widespread hands-on experience among providers in delivering care via telehealth . it remains unclear the extent to which the currently more relaxed regulatory environment , favorable reimbursement policies , and leniency with respect to cross-state provider licensure will become normative . however , we believe that the current experience is more likely to be favorable to telehealth and amwell 's business than otherwise over the longer term . new client acquisition we believe our ability to add net new health system and health plan clients is a key indicator of our increasing market adoption and future revenue potential . we maintain dedicated direct sales teams for both health systems and health plans focused on selling solutions that meet each of their respective needs . our direct sales teams sell our full suite of technology , services and carepoints . channel partners also play an important role in marketing and selling our products to our customer base , primarily focusing on the amwell platform and carepoints . channel partners reduce our sales cycle and lower customer acquisition costs . for example , through our ehr channel partners we are able to natively embed our technology into existing health system technology infrastructure which , as a competitive differentiator , may lead to a higher win rate . in addition , because of the technology integration , an ehr partner sale may accelerate our ability to launch the technology and ultimately recognize revenue . carepoint channel partners primarily consist of value-added resellers that have established relationships with health systems and health plans . we typically generate lower revenues in connection with sales obtained through these channel partner agreements . client expansion and retention health system contracts are initially priced based on the size of the system and their projected visit activity . the contract value is typically expected to grow as the health system increases the number of providers on the platform and the number of consultations performed through the platform or adds the ability to deliver new use cases across their enterprise whether by the health system 's own providers or through amg . when a client chooses to adopt a new use case , amwell configures a module for its amwell platform instance . a module represents a unique patient or provider workflow , documentation requirement , or technology integration and associated services . our platform modules currently support over 100 active use cases with new modules continually being developed as virtual care continues to expand into new areas . we expand business with health plans when they expand the number of members who have access to our amwell platform and amg services or through offering new clinical programs to eligible plan members . in many cases health plans pay amwell incremental subscription fees for adding new members to the amwell platform , and for each clinical program that is deployed , which over time increases the annual contract value per health plan , a key indicator of the growth of our business . we believe our ability to grow subscription revenue in our existing health plan client base is an indicator of the long-term value of our customer relationships . active providers an important indicator of the value of our amwell platform to our clients is the number of non-amg providers that are active on the amwell platform . we define “ active providers ” as providers that have delivered a visit on the amwell platform at least once in the last 12 months . active providers demonstrate the prevalence of telehealth within our clients in both home and hospital environments . we believe active providers is a measure of our success in delivering on our mission of enabling access to care . we expect that the number of active providers will increase over time as a result of several factors : the number of modules and use cases deployed within health systems the adoption of telehealth by providers across the spectrum of care the number of programs offered through health plans the continued improvement in the regulatory environment for telehealth , including reimbursement for telehealth services 58 the ongoing consumerization of healthcare invest in growth we expect to continue to focus on long-term revenue growth through investments in technology development and sales and marketing efforts . in addition , we believe additional investments in platform modules and clinical programs will allow us to continue to penetrate our products and services further in to our existing client relationships . accordingly , in the short term we expect these activities to increase our net losses , but in the long term we anticipate that these investments will positively impact our results of operations . regulatory environment our operations are subject to comprehensive united states federal , state and local and international regulation in the jurisdictions in which we do business . story_separator_special_tag 64 consolidated results of operations the following table sets forth our summarized consolidated statement of operations data for the years ended december 31 , 2020 , 2019 and 2018 and the dollar and percentage change between the respective periods : replace_table_token_8_th revenue for the year ended december 31 , 2020 , the increase in revenue was substantially driven by an increase in visit revenue volume ( $ 76.5 million increase ) . visit revenue has increased due to the impact of the covid-19 crisis . revenue increase was also attributable to new clients using our platform and existing clients adding additional modules to their platform subscriptions , such as our covid-19 module . we believe that the strength of our technology platform will continue to serve as the foundation for our revenue growth . subscription revenue from health systems was $ 49.8 million for the year ended december 31 , 2020 , compared to $ 38.8 million during december 31 , 2019 , an increase of $ 11.0 million , or 28 % . revenue earned from amg patient visits increased by $ 76.5 million , or 188 % , from $ 40.7 million for the year ended december 31 , 2019 to $ 117.2 million in the december 31 , 2020. the increase was primarily driven by increased utilization across our health system and health plan clients primarily from the covid-19 pandemic as well as overall increased acceptance of telemedicine . amg visits constituted 27 % of the total visits for the year ended december 31 , 2020 , compared to 66 % for the year ended december 31 , 2019. revenue earned from services and carepoints was $ 29.7 million for the year ended december 31 , 2020 , compared to $ 24.5 million during december 31 , 2019 , an increase of $ 5.2 million , or 21 % . the increase in services and carepoints revenue was largely due to the overall increased volume of carepoints sales and partially the result of timing with respect to the performance of services and the timing of delivery of carepoints . for the year ended december 31 , 2019 , the increase in revenue was predominately the result of new clients using the platform as the average number of health system and health plan clients on our platform increased by 50 , to 194 as of december 31 , 2019 from 144 as of december 31 , 2018 , a 35 % increase . we believe that the strength of our technology platform will continue to serve as the foundation for our revenue growth . subscription revenue from health system clients was $ 38.8 million for the year ended december 31 , 2019 , compared to $ 27.3 million during the year ended december 31 , 2018 , an increase of $ 11.5 million , or 42 % . this increase was substantially driven by a 50 % increase in the average number of subscription clients increasing from 92 to 138. subscription revenue from health plan clients was $ 30.6 million for the year ended december 31 , 2019 , compared to $ 23.6 million during the year ended december 31 , 2018 , an increase of $ 7.0 million , or 30 % . this increase was driven by an 8 % increase in the average number of subscription clients , increasing from 52 to 56 , and increases in the health plan client average contract value increasing 21 % . the total number of paid amg patient visits increased 38 % , by 208,000 , from 551,000 in the year ended december 31 , 2018 to 759,000 in the year ended december 31 , 2019. this increase was primarily driven by increased utilization across our health system and health plan clients . amg visits constituted 66 % of the total visits for the year ended december 31 , 2019 , compared to 73 % for the year ended december 31 , 2018 . 65 costs of revenue , excluding depreciation and amortization of intangible assets for the year ended december 31 , 2020 , the increase in cost of revenue was primarily due to an increase of $ 50.8 million in provider related costs , with some portion of these provider costs due to increased visit volumes . some portion of these provider costs were above typical levels due to the covid-19 emergency rapid expansion of active providers . the increase in visit volume also resulted in the need to utilize a significantly higher level of non-clinical contractor resources to properly service visit demand . the company experienced a $ 14.1 million increase in employee-related expense ( primarily in the form of variable compensation and stock compensation expense ) . hardware costs increased $ 6.0 million related to the increase in sale of devices . there was also an increase of $ 5.5 million in third party software . as a percentage of revenue , cost of revenues has increased as a result of the shift in revenue mix . the impact of covid-19 has increased our visit revenue , which generates a lower gross margin contribution . for the year ended december 31 , 2019 , the increase in cost of revenue was primarily due to an increase of $ 4.6 million in employee-related expense ( inclusive of stock compensation expense ) and a $ 16.8 million increase in other costs , primarily provider related costs , combined with implementation and hosting related expenses . with respect to employee-related expense , our total administrative employee headcount dedicated to servicing amg increased to 158 on december 31 , 2019 , as compared to 145 on december 31 , 2018. as a percentage of revenue , cost of revenues have remained relatively consistent year over year . research and development expenses research and development expenses increased for the year ended december 31 , 2020 , compared the year ended december 31 , 2019 , which was primarily driven

the preparation of financial statements in conformity with gaap requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses . our estimates are based on information available to management at the time of preparation of the consolidated financial statements , including the result of historical analysis , our understanding and experience of the company 's operations , our knowledge of the industry and market-participant data available to us . actual results have historically been in line with management 's estimates and judgments used in applying each of the accounting policies described below and management periodically re-evaluates accounting estimates and assumptions . actual results could 36 differ from these estimates and materially impact our consolidated financial statements . however , the company does not expect our assessments and assumptions below to materially change in the future . a summary of our significant accounting policies is presented in note 2 to our consolidated financial statements , which appear in part ii , item 8 . “ financial statements and supplementary data . ” the following is a summary of our accounting policies that are most affected by judgments , estimates and assumptions . impairment of property and equipment real estate and long-lived assets are tested for potential impairment when changes in circumstances indicate the carrying amount of the assets , or other appropriate grouping of assets , may not be fully recoverable . indicators of impairment include material adverse changes in the projected revenues and expenses , significant underperformance relative to historical or projected future operating results , and significant negative industry or economic trends . an impairment is determined to have occurred if the future net undiscounted cash flows expected to be generated is less than the carrying value of an asset . the impairment is measured as the difference between the carrying value and the fair value . significant judgment is required both in determining impairment and in estimating the fair value . we may use assumptions and estimates derived from a review of our operating results , business projections , expected growth rates , discount rates , and tax rates . we also make certain assumptions about future economic conditions , interest rates , and other market data . many of the factors used in these assumptions and estimates are outside the control of management , and can change in future periods . impairment of intangible assets we assess the potential impairment of our intangible assets with indefinite lives on an annual basis or if an event occurs or circumstances change between annual tests that indicate that it is more likely than not that the asset is impaired . we perform our impairment test by comparing the fair value of the intangible asset with its carrying amount . if the carrying amount exceeds its fair value , an impairment loss will be recognized in an amount equal to that excess . we assess the potential impairment of our intangible assets with definite lives , when changes in circumstances indicate the carrying amount of the assets , or other appropriate grouping of assets , may not be fully recoverable . the assessment of recoverability is based on comparing management 's estimates of the sum of the estimated undiscounted cash flows generated by the underlying asset , or other appropriate grouping of assets , to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows . factors leading to impairment include significant under-performance relative to historical or projected results , significant changes in the manner of use of the acquired assets or the strategy for our overall business and significant negative industry or economic trends . membership deposit liabilities in our traditional golf business , private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club . initiation fee deposits are refundable 30 years after the date of acceptance as a member . the difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the consolidated statements of operations on a straight-line basis over the expected life of an active membership , which is estimated to be seven years . the present value of the refund obligation is recorded as a membership deposit liability in the consolidated balance sheets and accretes over a 30-year nonrefundable term using the effective interest method . this accretion is recorded as interest expense , net in the consolidated statements of operations . the determination of the estimated average expected life of an active membership is based on company-specific historical data and involves judgment and estimation . valuation of securities fair value of securities may be based upon broker quotations , counterparty quotations or pricing services quotations , which provide valuation estimates based upon reasonable market order indications or a good faith estimate thereof and are subject to significant variability based on market conditions , such as interest rates , credit spreads and market liquidity . our non-agency rmbs security is categorized as a level 3 asset . if we were forced to sell this asset in a short period to meet liquidity needs , the price we receive could be substantially less than the recorded fair value . see note 11 to our consolidated financial statements in part ii , item 8 . “ financial statements and supplementary data ” for information regarding the fair value of our investments , and respective estimation methodologies , as of december 31 , 2017 . 37 our estimation of the fair value of securities valued using internal models involves significant judgment . the inputs to our models include discount rates , prepayment speeds , default rates and severity assumptions . story_separator_special_tag impairment impairment of $ 6.2 million was recorded for the year ended december 31 , 2016 due to a $ 3.6 million impairment on one golf property when we reclassified the property to held-for-sale and a $ 2.6 million impairment charge related to two golf properties . there was no impairment recorded during the year ended december 31 , 2017 . realized and unrealized ( gain ) loss on investments realized and unrealized gain on investments decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to losses recorded on the interest rate cap for our traditional golf term loan . interest and investment income there was no significant change in interest and investment income during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 . interest expense , net interest expense , net increased by $ 2.8 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to : ( i ) a $ 3.7 million increase related to the term loan obtained in june 2016 , ( ii ) a $ 0.6 million increase in membership deposit liability interest accretion due to more members and ( iii ) a $ 0.2 million increase due to additional capital leases , partially offset by ( iv ) a $ 1.7 million decrease related to the repurchase agreement exited in june 2016. loss on extinguishment of debt loss on extinguishment of debt decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to fewer liability write-offs in 2017. other loss , net other loss , net decreased by $ 0.9 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due to : ( i ) lower lease disposition costs incurred in 2017 for leases exited in 2017 and 2016 and ( ii ) an increase in other liability write-offs in 2017 , partially offset by a loss on disposal for a golf property in oregon in 2017 . 46 comparison of traditional golf results of operations for the years ended december 31 , 2016 and 2015 ( a ) replace_table_token_15_th ( a ) we own , lease or manage 78 and 86 golf properties as of december 31 , 2016 and 2015 , respectively . n.m. – not meaningful revenues from golf course operations revenues from golf course operations increased by $ 1.8 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 5.5 million increase in net driving range revenues at public golf properties as a result of the continued growth of the players club program , ( ii ) a $ 2.0 million increase due to additional initiation fees from new member sales and higher membership dues rates , partially offset by ( iii ) a $ 3.4 million decrease in green fee and cart rental revenue as a result of unfavorable conditions , especially in california , ( iv ) a $ 1.9 million decrease in greens and cart fees and merchandise sales from properties that were exited in 2016 and ( v ) a $ 0.4 million decrease in sales of merchandise due to unfavorable conditions , especially in california . sales of food and beverages sales of food and beverages increased by $ 1.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to a $ 2.2 million increase in private event revenues and packaged round and beverage offers to the players club members , partially offset by a $ 1.0 million decrease from properties that were exited in 2016. operating expenses there was no significant change in operating expenses during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 . 47 cost of sales - food and beverages cost of sales - food and beverages decreased by $ 1.0 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 0.8 million decrease as a result of increased vendor rebates in 2016 , ( ii ) a $ 0.4 million decrease from properties that were exited in 2016 , partially offset by ( iii ) a $ 0.2 million increase due to additional food and beverage sales . general and administrative expense ( including acquisition and transaction expense ) there was no significant change in general and administrative expense during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 . depreciation and amortization depreciation and amortization decreased by $ 2.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to certain assets being fully depreciated in 2015 and 2016 from scheduled lease expirations partially offset by an increase in depreciation from additional capital leases . impairment impairment increased by $ 6.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 due to a $ 3.6 million impairment on one golf property when we reclassified the property to held-for-sale and a $ 2.6 million impairment charge related to two golf properties . realized and unrealized ( gain ) loss on investments realized and unrealized ( gain ) loss on investments increased by $ 0.3 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 due to a gain recorded on the interest rate cap on our golf term loan . interest and investment income there was no significant change in interest and investment income during the

loss on extinguishment of debt the loss on extinguishment of debt decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due to fewer write-offs of traditional golf liabilities . gain on deconsolidation the gain on deconsolidation of $ 82.1 million during the year ended december 31 , 2016 is related to the deconsolidation of cdo vi . there were no deconsolidations during the year ended december 31 , 2017 . other income ( loss ) , net other income ( loss ) , net increased by $ 3.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due in part to a $ 2.9 million writedown on our equity method investment during the year ended december 31 , 2016 and a decrease of $ 0.9 million in disposal related expenses in the traditional golf business during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 , offset by a $ 0.2 million decrease in collateral management fee income and a $ 0.1 million decrease from the disposal of legacy assets . replace_table_token_13_th n.m. – not meaningful 42 revenues from golf course operations revenues from golf course operations increased by $ 1.8 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 5.5 million increase in net driving range revenues at public golf properties as a result of the continued growth of the players club program , ( ii ) a $ 2.0 million increase due to additional initiation fees from new member sales and higher membership dues rates , partially offset by ( iii ) a $ 3.4 million decrease in green fee and cart rental revenue as a result of unfavorable conditions , especially in california , ( iv ) a $ 1.9 million decrease in greens and cart fees and merchandise sales from properties that were exited in 2016 and ( v ) a $ 0.4 million decrease in sales of merchandise due to unfavorable conditions , especially in california .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 the loss on extinguishment of debt decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due to fewer write-offs of traditional golf liabilities . gain on deconsolidation the gain on deconsolidation of $ 82.1 million during the year ended december 31 , 2016 is related to the deconsolidation of cdo vi . there were no deconsolidations during the year ended december 31 , 2017 . other income ( loss ) , net other income ( loss ) , net increased by $ 3.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due in part to a $ 2.9 million writedown on our equity method investment during the year ended december 31 , 2016 and a decrease of $ 0.9 million in disposal related expenses in the traditional golf business during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 , offset by a $ 0.2 million decrease in collateral management fee income and a $ 0.1 million decrease from the disposal of legacy assets . replace_table_token_13_th n.m. – not meaningful 42 revenues from golf course operations revenues from golf course operations increased by $ 1.8 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 5.5 million increase in net driving range revenues at public golf properties as a result of the continued growth of the players club program , ( ii ) a $ 2.0 million increase due to additional initiation fees from new member sales and higher membership dues rates , partially offset by ( iii ) a $ 3.4 million decrease in green fee and cart rental revenue as a result of unfavorable conditions , especially in california , ( iv ) a $ 1.9 million decrease in greens and cart fees and merchandise sales from properties that were exited in 2016 and ( v ) a $ 0.4 million decrease in sales of merchandise due to unfavorable conditions , especially in california . ``` Suspicious Activity Report : the preparation of financial statements in conformity with gaap requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses . our estimates are based on information available to management at the time of preparation of the consolidated financial statements , including the result of historical analysis , our understanding and experience of the company 's operations , our knowledge of the industry and market-participant data available to us . actual results have historically been in line with management 's estimates and judgments used in applying each of the accounting policies described below and management periodically re-evaluates accounting estimates and assumptions . actual results could 36 differ from these estimates and materially impact our consolidated financial statements . however , the company does not expect our assessments and assumptions below to materially change in the future . a summary of our significant accounting policies is presented in note 2 to our consolidated financial statements , which appear in part ii , item 8 . “ financial statements and supplementary data . ” the following is a summary of our accounting policies that are most affected by judgments , estimates and assumptions . impairment of property and equipment real estate and long-lived assets are tested for potential impairment when changes in circumstances indicate the carrying amount of the assets , or other appropriate grouping of assets , may not be fully recoverable . indicators of impairment include material adverse changes in the projected revenues and expenses , significant underperformance relative to historical or projected future operating results , and significant negative industry or economic trends . an impairment is determined to have occurred if the future net undiscounted cash flows expected to be generated is less than the carrying value of an asset . the impairment is measured as the difference between the carrying value and the fair value . significant judgment is required both in determining impairment and in estimating the fair value . we may use assumptions and estimates derived from a review of our operating results , business projections , expected growth rates , discount rates , and tax rates . we also make certain assumptions about future economic conditions , interest rates , and other market data . many of the factors used in these assumptions and estimates are outside the control of management , and can change in future periods . impairment of intangible assets we assess the potential impairment of our intangible assets with indefinite lives on an annual basis or if an event occurs or circumstances change between annual tests that indicate that it is more likely than not that the asset is impaired . we perform our impairment test by comparing the fair value of the intangible asset with its carrying amount . if the carrying amount exceeds its fair value , an impairment loss will be recognized in an amount equal to that excess . we assess the potential impairment of our intangible assets with definite lives , when changes in circumstances indicate the carrying amount of the assets , or other appropriate grouping of assets , may not be fully recoverable . the assessment of recoverability is based on comparing management 's estimates of the sum of the estimated undiscounted cash flows generated by the underlying asset , or other appropriate grouping of assets , to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows . factors leading to impairment include significant under-performance relative to historical or projected results , significant changes in the manner of use of the acquired assets or the strategy for our overall business and significant negative industry or economic trends . membership deposit liabilities in our traditional golf business , private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club . initiation fee deposits are refundable 30 years after the date of acceptance as a member . the difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the consolidated statements of operations on a straight-line basis over the expected life of an active membership , which is estimated to be seven years . the present value of the refund obligation is recorded as a membership deposit liability in the consolidated balance sheets and accretes over a 30-year nonrefundable term using the effective interest method . this accretion is recorded as interest expense , net in the consolidated statements of operations . the determination of the estimated average expected life of an active membership is based on company-specific historical data and involves judgment and estimation . valuation of securities fair value of securities may be based upon broker quotations , counterparty quotations or pricing services quotations , which provide valuation estimates based upon reasonable market order indications or a good faith estimate thereof and are subject to significant variability based on market conditions , such as interest rates , credit spreads and market liquidity . our non-agency rmbs security is categorized as a level 3 asset . if we were forced to sell this asset in a short period to meet liquidity needs , the price we receive could be substantially less than the recorded fair value . see note 11 to our consolidated financial statements in part ii , item 8 . “ financial statements and supplementary data ” for information regarding the fair value of our investments , and respective estimation methodologies , as of december 31 , 2017 . 37 our estimation of the fair value of securities valued using internal models involves significant judgment . the inputs to our models include discount rates , prepayment speeds , default rates and severity assumptions . story_separator_special_tag impairment impairment of $ 6.2 million was recorded for the year ended december 31 , 2016 due to a $ 3.6 million impairment on one golf property when we reclassified the property to held-for-sale and a $ 2.6 million impairment charge related to two golf properties . there was no impairment recorded during the year ended december 31 , 2017 . realized and unrealized ( gain ) loss on investments realized and unrealized gain on investments decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to losses recorded on the interest rate cap for our traditional golf term loan . interest and investment income there was no significant change in interest and investment income during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 . interest expense , net interest expense , net increased by $ 2.8 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to : ( i ) a $ 3.7 million increase related to the term loan obtained in june 2016 , ( ii ) a $ 0.6 million increase in membership deposit liability interest accretion due to more members and ( iii ) a $ 0.2 million increase due to additional capital leases , partially offset by ( iv ) a $ 1.7 million decrease related to the repurchase agreement exited in june 2016. loss on extinguishment of debt loss on extinguishment of debt decreased by $ 0.5 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 primarily due to fewer liability write-offs in 2017. other loss , net other loss , net decreased by $ 0.9 million during the year ended december 31 , 2017 compared to the year ended december 31 , 2016 due to : ( i ) lower lease disposition costs incurred in 2017 for leases exited in 2017 and 2016 and ( ii ) an increase in other liability write-offs in 2017 , partially offset by a loss on disposal for a golf property in oregon in 2017 . 46 comparison of traditional golf results of operations for the years ended december 31 , 2016 and 2015 ( a ) replace_table_token_15_th ( a ) we own , lease or manage 78 and 86 golf properties as of december 31 , 2016 and 2015 , respectively . n.m. – not meaningful revenues from golf course operations revenues from golf course operations increased by $ 1.8 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 5.5 million increase in net driving range revenues at public golf properties as a result of the continued growth of the players club program , ( ii ) a $ 2.0 million increase due to additional initiation fees from new member sales and higher membership dues rates , partially offset by ( iii ) a $ 3.4 million decrease in green fee and cart rental revenue as a result of unfavorable conditions , especially in california , ( iv ) a $ 1.9 million decrease in greens and cart fees and merchandise sales from properties that were exited in 2016 and ( v ) a $ 0.4 million decrease in sales of merchandise due to unfavorable conditions , especially in california . sales of food and beverages sales of food and beverages increased by $ 1.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to a $ 2.2 million increase in private event revenues and packaged round and beverage offers to the players club members , partially offset by a $ 1.0 million decrease from properties that were exited in 2016. operating expenses there was no significant change in operating expenses during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 . 47 cost of sales - food and beverages cost of sales - food and beverages decreased by $ 1.0 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to : ( i ) a $ 0.8 million decrease as a result of increased vendor rebates in 2016 , ( ii ) a $ 0.4 million decrease from properties that were exited in 2016 , partially offset by ( iii ) a $ 0.2 million increase due to additional food and beverage sales . general and administrative expense ( including acquisition and transaction expense ) there was no significant change in general and administrative expense during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 . depreciation and amortization depreciation and amortization decreased by $ 2.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 primarily due to certain assets being fully depreciated in 2015 and 2016 from scheduled lease expirations partially offset by an increase in depreciation from additional capital leases . impairment impairment increased by $ 6.2 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 due to a $ 3.6 million impairment on one golf property when we reclassified the property to held-for-sale and a $ 2.6 million impairment charge related to two golf properties . realized and unrealized ( gain ) loss on investments realized and unrealized ( gain ) loss on investments increased by $ 0.3 million during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 due to a gain recorded on the interest rate cap on our golf term loan . interest and investment income there was no significant change in interest and investment income during the

prior to the combination , head & engquist operated 25 facilities in the gulf coast region , and icm operated 16 facilities in the intermountain region of the united states . prior to our initial public offering in february 2006 , our business was conducted through h & e llc . in connection with our initial public offering , we converted h & e llc into h & e equipment services , inc. in order to have an operating delaware corporation as the issuer for our initial public offering , h & e equipment services , inc. was formed as a delaware corporation and wholly-owned subsidiary of h & e holdings l.l.c . ( “ h & e holdings ” ) , and immediately prior to the closing of our initial public offering , on february 3 , 2006 , h & e llc and h & e holdings merged with and into h & e equipment services , inc. , which survived the reincorporation merger as the operating company . effective february 3 , 2006 , h & e llc and h & e holdings no longer existed under operation of law pursuant to the reincorporation merger . business segments we have five reportable segments because we derive our revenues from five principal business activities : ( 1 ) equipment rentals ; ( 2 ) new equipment sales ; ( 3 ) used equipment sales ; ( 4 ) parts sales ; and ( 5 ) repair and maintenance services . these segments are based upon how we allocate resources and assess performance . in addition , we also have non-segmented revenues and costs that relate to equipment support activities . · equipment rentals . our rental operation primarily rents our four core types of construction and industrial equipment . we have a well-maintained rental fleet and our own dedicated sales force , focused by equipment type . we actively manage the size , quality , age and composition of our rental fleet based on our analysis of key measures such as time utilization ( which we analyze as equipment usage based on : ( 1 ) a percentage of original equipment cost , and ( 2 ) the number of rental equipment units available for rent ) , rental rate trends and targets , rental equipment dollar utilization and maintenance and repair costs , which we closely monitor . we maintain fleet quality through regional quality control managers and our parts and services operations . 26 · new equipment sales . our new equipment sales operation sells new equipment in all of our four core product categories . we have a retail sales force focused by equipment type that is separate from our rental sales force . manufacturer purchase terms and pricing are managed by our pr oduct specialists . · used equipment sales . our used equipment sales are generated primarily from sales of used equipment from our rental fleet , as well as from sales of inventoried equipment that we acquire through trade-ins from our equipment customers and through selective purchases of high quality used equipment . used equipment is sold by our dedicated retail sales force . our used equipment sales are an effective way for us to manage the size and composition of our rental fleet and provide a profitable distribution channel for disposal of rental equipment . · parts sales . our parts business sells new and used parts for the equipment we sell and also provides parts to our own rental fleet . to a lesser degree , we also sell parts for equipment produced by manufacturers whose products we neither rent nor sell . in order to provide timely parts and services support to our customers as well as our own rental fleet , we maintain an extensive parts inventory . · services . our services operation provides maintenance and repair services for our customers ' equipment and to our own rental fleet at our facilities as well as at our customers ' locations . as the authorized distributor for numerous equipment manufacturers , we are able to provide service to that equipment that will be covered under the manufacturer 's warranty . our non-segmented revenues and costs relate to equipment support activities that we provide , such as transportation , hauling , parts freight and damage waivers , and are not generally allocated to reportable segments . you can read more about our business segments under item 1—business and in note 17 of the consolidated financial statements in this annual report on form 10-k. revenue sources we generate all of our total revenues from our five business segments and our non-segmented equipment support activities . equipment rentals and new equipment sales account for more than half of our total revenues . for the year ended december 31 , 2015 , approximately 42.6 % of our total revenues were attributable to equipment rentals , 22.9 % of our total revenues were attributable to new equipment sales , 11.4 % were attributable to used equipment sales , 10.7 % were attributable to parts sales , 6.1 % were attributable to our services revenues and 6.3 % were attributable to non-segmented other revenues . the pie charts below illustrate a breakdown of our revenues and gross profit for the year ended december 31 , 2015 by business segment ( see note 17 to our consolidated financial statements for further information regarding our business segments ) : the equipment that we sell , rent and service is principally used in the construction industry , as well as by companies for commercial and industrial uses such as plant maintenance and turnarounds , as well as in the petrochemical and energy sectors . story_separator_special_tag we develop our estimate of this allowance based on our historical experience with specific customers , our understanding of our current economic circumstances and our own judgment as to the likelihood of ultimate payment . our largest exposure to doubtful accounts is in our rental operations . we perform credit evaluations of customers and establish credit limits based on reviews of our customers ' current credit information and payment histories . we believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures . during the year , we write-off customer account balances when we have exhausted reasonable collection efforts and determined that the likelihood of collection is remote . such write-offs are charged against our allowance for doubtful accounts . bad debt expense as a percentage of total revenues for the years ended december 31 , 2015 , 2014 and 2013 were approximately 0.3 % in each year . the actual rate of future credit losses , however , may not be similar to past experience . our estimate of doubtful accounts could change based on changing circumstances , including changes in the economy or in the particular circumstances of individual customers . accordingly , we may be required to increase or decrease our allowance for doubtful accounts . useful lives of rental equipment and property and equipment . we depreciate rental equipment and property and equipment over their estimated useful lives ( generally three to ten years ) , after giving effect to an estimated salvage value ranging from 0 % to 25 % of cost . the useful life of rental equipment is determined based on our estimate of the period the asset will generate revenues , and the salvage value is determined based on our estimate of the minimum value we could realize from the asset after such period . we periodically review the assumptions utilized in computing rates of depreciation . we may be required to change these estimates based on changes in our industry or other changing circumstances . if these estimates change in the future , we may be required to recognize increased or decreased depreciation expense for these assets . the amount of depreciation expense we record is highly dependent upon the estimated useful lives and the salvage values assigned to each category of rental equipment . generally , we assign estimated useful lives to our rental fleet ranging from a three-year life , five-year life with a 25 % salvage value , seven-year life and a ten-year life . depreciation expense on our rental fleet for the year ended december 31 , 2015 was approximately $ 162.1 million . for the year ended december 31 , 2015 , the estimated impact of a change in estimated useful lives for each category of equipment by two years was as follows : replace_table_token_8_th for purposes of the sensitivity analysis above , we elected not to decrease the useful lives of other equipment , which are primarily three-year estimated useful life assets ; rather , we have held the depreciation expense constant at the actual amount of depreciation expense . we believe that decreasing the life of the other equipment by two years is an unreasonable estimate and would potentially lead to the decision to expense , rather than capitalize , a significant portion of the subject asset class . in general terms , a one-year increase in the estimated life across all classes of our rental equipment will give rise to an approximate decrease in our annual 31 depreciation expense of approximately $ 20.8 million . additionally , a one-year decrease in the estimated li fe across all classes of our rental equipment ( with the exception of other equipment as discussed above ) will give rise to an approximate increase in our annual depreciation expense of approximately $ 18.1 million . another significant assumption used in our calculation of depreciation expense is the estimated salvage value assigned to our earthmoving equipment . based on our recent experience , we have used a 25 % factor of the equipment 's original cost to estimate its salvage value . this factor is highly subjective and subject to change upon future actual results at the time we dispose of the equipment . a change of 5 % , either increase or decrease , in the estimated salvage value would result in a change in our annual depreciation expense of approximately $ 2.6 million . purchase price allocation . we have made significant acquisitions in the past and we may make additional acquisitions in the future that meet our selection criteria that solidify our presence in the contiguous regions where we operate with an objective of increasing our revenues , improving our profitability , entering additional attractive markets and strengthening our competitive position . pursuant to financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 350 ( “ asc 350 ” ) , intangibles-goodwill and other , we record as goodwill the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired . such fair market value assessments require judgments and estimates that can be affected by various factors over time , which may cause final amounts to differ materially from original estimates . for acquisitions completed through december 31 , 2015 , adjustments to fair value assessments have been recorded to goodwill over the purchase price allocation period ( typically not exceeding 12 months ) . with the exception of goodwill , long-lived fixed assets generally represent the largest component of our acquisitions . typically , the long-lived fixed assets that we acquire are primarily comprised of rental fleet equipment . historically , virtually all of the rental equipment that we have acquired through purchase business combinations has been classified as “ to be used , ” rather than as

cash flow from operating activities . for the year ended december 31 , 2015 , the cash provided by our operating activities was $ 206.6 million . our reported net income of $ 44.3 million , when adjusted for non-cash income and expense items , such as depreciation and amortization , ( including net amortization ( accretion ) of note discount ( premium ) ) , deferred income taxes , provision for losses on accounts receivable , provision for inventory obsolescence , stock-based compensation expense and net gains on the sale of long-lived assets , provided positive cash flows of $ 231.1 million . these cash flows from operating activities were also positively impacted by a $ 13.6 million decrease in receivables and a $ 13.5 million increase in accounts payable . partially offsetting these positive cash flows were a $ 31.2 million decrease in manufacturing flooring plans payable and a $ 14.5 million increase in inventories . accrued expenses payable and other liabilities decreased $ 5.0 million and prepaid expenses and other assets increased $ 0.9 million . for the year ended december 31 , 2014 , the cash provided by our operating activities was $ 158.3 million . our reported net income of $ 55.1 million , when adjusted for non-cash income and expense items , such as depreciation and amortization , ( including net amortization ( accretion ) of note discount ( premium ) ) , deferred income taxes , provision for losses on accounts receivable , provision for inventory obsolescence , stock-based compensation expense and net gains on the sale of long-lived assets , provided positive cash flows of $ 227.1 million . these cash flows from operating activities were also positively impacted by a $ 44.5 million increase in manufacturing flooring plans payable and a $ 6.1 million increase in accrued expenses payable and other liabilities . partially offsetting these positive cash flows was an increase of $ 66.7 million in inventories as a result of increasing demand and improving sales of new 40 equipment as compared to last year and a $ 35 . 2 million increase in receivables .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flow from operating activities . for the year ended december 31 , 2015 , the cash provided by our operating activities was $ 206.6 million . our reported net income of $ 44.3 million , when adjusted for non-cash income and expense items , such as depreciation and amortization , ( including net amortization ( accretion ) of note discount ( premium ) ) , deferred income taxes , provision for losses on accounts receivable , provision for inventory obsolescence , stock-based compensation expense and net gains on the sale of long-lived assets , provided positive cash flows of $ 231.1 million . these cash flows from operating activities were also positively impacted by a $ 13.6 million decrease in receivables and a $ 13.5 million increase in accounts payable . partially offsetting these positive cash flows were a $ 31.2 million decrease in manufacturing flooring plans payable and a $ 14.5 million increase in inventories . accrued expenses payable and other liabilities decreased $ 5.0 million and prepaid expenses and other assets increased $ 0.9 million . for the year ended december 31 , 2014 , the cash provided by our operating activities was $ 158.3 million . our reported net income of $ 55.1 million , when adjusted for non-cash income and expense items , such as depreciation and amortization , ( including net amortization ( accretion ) of note discount ( premium ) ) , deferred income taxes , provision for losses on accounts receivable , provision for inventory obsolescence , stock-based compensation expense and net gains on the sale of long-lived assets , provided positive cash flows of $ 227.1 million . these cash flows from operating activities were also positively impacted by a $ 44.5 million increase in manufacturing flooring plans payable and a $ 6.1 million increase in accrued expenses payable and other liabilities . partially offsetting these positive cash flows was an increase of $ 66.7 million in inventories as a result of increasing demand and improving sales of new 40 equipment as compared to last year and a $ 35 . 2 million increase in receivables . ``` Suspicious Activity Report : prior to the combination , head & engquist operated 25 facilities in the gulf coast region , and icm operated 16 facilities in the intermountain region of the united states . prior to our initial public offering in february 2006 , our business was conducted through h & e llc . in connection with our initial public offering , we converted h & e llc into h & e equipment services , inc. in order to have an operating delaware corporation as the issuer for our initial public offering , h & e equipment services , inc. was formed as a delaware corporation and wholly-owned subsidiary of h & e holdings l.l.c . ( “ h & e holdings ” ) , and immediately prior to the closing of our initial public offering , on february 3 , 2006 , h & e llc and h & e holdings merged with and into h & e equipment services , inc. , which survived the reincorporation merger as the operating company . effective february 3 , 2006 , h & e llc and h & e holdings no longer existed under operation of law pursuant to the reincorporation merger . business segments we have five reportable segments because we derive our revenues from five principal business activities : ( 1 ) equipment rentals ; ( 2 ) new equipment sales ; ( 3 ) used equipment sales ; ( 4 ) parts sales ; and ( 5 ) repair and maintenance services . these segments are based upon how we allocate resources and assess performance . in addition , we also have non-segmented revenues and costs that relate to equipment support activities . · equipment rentals . our rental operation primarily rents our four core types of construction and industrial equipment . we have a well-maintained rental fleet and our own dedicated sales force , focused by equipment type . we actively manage the size , quality , age and composition of our rental fleet based on our analysis of key measures such as time utilization ( which we analyze as equipment usage based on : ( 1 ) a percentage of original equipment cost , and ( 2 ) the number of rental equipment units available for rent ) , rental rate trends and targets , rental equipment dollar utilization and maintenance and repair costs , which we closely monitor . we maintain fleet quality through regional quality control managers and our parts and services operations . 26 · new equipment sales . our new equipment sales operation sells new equipment in all of our four core product categories . we have a retail sales force focused by equipment type that is separate from our rental sales force . manufacturer purchase terms and pricing are managed by our pr oduct specialists . · used equipment sales . our used equipment sales are generated primarily from sales of used equipment from our rental fleet , as well as from sales of inventoried equipment that we acquire through trade-ins from our equipment customers and through selective purchases of high quality used equipment . used equipment is sold by our dedicated retail sales force . our used equipment sales are an effective way for us to manage the size and composition of our rental fleet and provide a profitable distribution channel for disposal of rental equipment . · parts sales . our parts business sells new and used parts for the equipment we sell and also provides parts to our own rental fleet . to a lesser degree , we also sell parts for equipment produced by manufacturers whose products we neither rent nor sell . in order to provide timely parts and services support to our customers as well as our own rental fleet , we maintain an extensive parts inventory . · services . our services operation provides maintenance and repair services for our customers ' equipment and to our own rental fleet at our facilities as well as at our customers ' locations . as the authorized distributor for numerous equipment manufacturers , we are able to provide service to that equipment that will be covered under the manufacturer 's warranty . our non-segmented revenues and costs relate to equipment support activities that we provide , such as transportation , hauling , parts freight and damage waivers , and are not generally allocated to reportable segments . you can read more about our business segments under item 1—business and in note 17 of the consolidated financial statements in this annual report on form 10-k. revenue sources we generate all of our total revenues from our five business segments and our non-segmented equipment support activities . equipment rentals and new equipment sales account for more than half of our total revenues . for the year ended december 31 , 2015 , approximately 42.6 % of our total revenues were attributable to equipment rentals , 22.9 % of our total revenues were attributable to new equipment sales , 11.4 % were attributable to used equipment sales , 10.7 % were attributable to parts sales , 6.1 % were attributable to our services revenues and 6.3 % were attributable to non-segmented other revenues . the pie charts below illustrate a breakdown of our revenues and gross profit for the year ended december 31 , 2015 by business segment ( see note 17 to our consolidated financial statements for further information regarding our business segments ) : the equipment that we sell , rent and service is principally used in the construction industry , as well as by companies for commercial and industrial uses such as plant maintenance and turnarounds , as well as in the petrochemical and energy sectors . story_separator_special_tag we develop our estimate of this allowance based on our historical experience with specific customers , our understanding of our current economic circumstances and our own judgment as to the likelihood of ultimate payment . our largest exposure to doubtful accounts is in our rental operations . we perform credit evaluations of customers and establish credit limits based on reviews of our customers ' current credit information and payment histories . we believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures . during the year , we write-off customer account balances when we have exhausted reasonable collection efforts and determined that the likelihood of collection is remote . such write-offs are charged against our allowance for doubtful accounts . bad debt expense as a percentage of total revenues for the years ended december 31 , 2015 , 2014 and 2013 were approximately 0.3 % in each year . the actual rate of future credit losses , however , may not be similar to past experience . our estimate of doubtful accounts could change based on changing circumstances , including changes in the economy or in the particular circumstances of individual customers . accordingly , we may be required to increase or decrease our allowance for doubtful accounts . useful lives of rental equipment and property and equipment . we depreciate rental equipment and property and equipment over their estimated useful lives ( generally three to ten years ) , after giving effect to an estimated salvage value ranging from 0 % to 25 % of cost . the useful life of rental equipment is determined based on our estimate of the period the asset will generate revenues , and the salvage value is determined based on our estimate of the minimum value we could realize from the asset after such period . we periodically review the assumptions utilized in computing rates of depreciation . we may be required to change these estimates based on changes in our industry or other changing circumstances . if these estimates change in the future , we may be required to recognize increased or decreased depreciation expense for these assets . the amount of depreciation expense we record is highly dependent upon the estimated useful lives and the salvage values assigned to each category of rental equipment . generally , we assign estimated useful lives to our rental fleet ranging from a three-year life , five-year life with a 25 % salvage value , seven-year life and a ten-year life . depreciation expense on our rental fleet for the year ended december 31 , 2015 was approximately $ 162.1 million . for the year ended december 31 , 2015 , the estimated impact of a change in estimated useful lives for each category of equipment by two years was as follows : replace_table_token_8_th for purposes of the sensitivity analysis above , we elected not to decrease the useful lives of other equipment , which are primarily three-year estimated useful life assets ; rather , we have held the depreciation expense constant at the actual amount of depreciation expense . we believe that decreasing the life of the other equipment by two years is an unreasonable estimate and would potentially lead to the decision to expense , rather than capitalize , a significant portion of the subject asset class . in general terms , a one-year increase in the estimated life across all classes of our rental equipment will give rise to an approximate decrease in our annual 31 depreciation expense of approximately $ 20.8 million . additionally , a one-year decrease in the estimated li fe across all classes of our rental equipment ( with the exception of other equipment as discussed above ) will give rise to an approximate increase in our annual depreciation expense of approximately $ 18.1 million . another significant assumption used in our calculation of depreciation expense is the estimated salvage value assigned to our earthmoving equipment . based on our recent experience , we have used a 25 % factor of the equipment 's original cost to estimate its salvage value . this factor is highly subjective and subject to change upon future actual results at the time we dispose of the equipment . a change of 5 % , either increase or decrease , in the estimated salvage value would result in a change in our annual depreciation expense of approximately $ 2.6 million . purchase price allocation . we have made significant acquisitions in the past and we may make additional acquisitions in the future that meet our selection criteria that solidify our presence in the contiguous regions where we operate with an objective of increasing our revenues , improving our profitability , entering additional attractive markets and strengthening our competitive position . pursuant to financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 350 ( “ asc 350 ” ) , intangibles-goodwill and other , we record as goodwill the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired . such fair market value assessments require judgments and estimates that can be affected by various factors over time , which may cause final amounts to differ materially from original estimates . for acquisitions completed through december 31 , 2015 , adjustments to fair value assessments have been recorded to goodwill over the purchase price allocation period ( typically not exceeding 12 months ) . with the exception of goodwill , long-lived fixed assets generally represent the largest component of our acquisitions . typically , the long-lived fixed assets that we acquire are primarily comprised of rental fleet equipment . historically , virtually all of the rental equipment that we have acquired through purchase business combinations has been classified as “ to be used , ” rather than as

distiller 's grains is influenced by the price of corn , the supply of dry distiller 's grains , and demand from the local dairy and feed markets . our revenue is further influenced by our decision to operate the plant at any capacity level , maintenance requirements , and the influences of the underlying biological processes . during 2014 , the most significant factor impacting revenue has been the price received for ethanol . on january 15 , 2013 , we temporarily idled the corn grinding and ethanol production activities at our keyes , california plant due to unfavorable market conditions for corn ethanol production , while we undertook efforts perform maintenance and to restart the plant as an advanced biofuel producer . this action was in keeping with the company 's plan to move to advanced biofuel feedstocks and inputs using a recently approved combined grain sorghum and biogas epa pathway for a significant portion of our operational capacity . operations at the ethanol plant were restarted in april 2013. in september 2013 , we received approval by the us environmental protection agency to produce ethanol using grain sorghum and biogas along with the keyes plant existing combined heat and power ( chp ) system to generate higher value advanced biofuel renewable identification numbers ( rin 's ) . india during the twelve months ended december 31 , 2014 , 2013 and 2012 , we operated our biodiesel plant in india . however , our india operations were constrained by funds available from our working capital partner and by diesel price subsidies from the india government . during 2014 , the india government eliminated subsidies for diesel and increased the sales price of diesel to the market prices . our biodiesel pricing is indexed to the price of petroleum diesel , and as such , the increase in the price of petroleum diesel is expected to favorably impact the profitability of our india operations . we continue to diversify our feedstock , our product lines and our customer base . in early 2012 , we completed the construction of glycerin and oil refining units , which enable us to produce and sell refined glycerin and refined palm oil . during 2013 , we further increased sales with expanded orders from international customers . in addition , we commissioned biodiesel distillation capacity for the biodiesel plant in february 2014 and this allows the india plant to produce quality biodiesel which meets or exceeds international standards . during 2014 , we further diversified our feedstock with the introduction of animal oils and fats , which we used for the production of biodiesel to be sold into the european markets . in addition , we have begun to develop a base of industrial customers who use fatty acid methyl ester ( biodiesel ) as a specialty chemical for commercial manufacturing . north america segment revenue substantially all of our north america revenues during the years ended december 31 , 2014 , 2013 , and 2012 were from sales of ethanol and wdg . during the twelve months ended december 31 , 2014 , 2013 , 2012 , we produced and sold 60.2 million gallons , 42.4 million gallons , and 53.0 million gallons of ethanol and 408 thousand tons , 301 thousand tons , and 380 thousand tons of wdg , respectively . cost of goods sold substantially all of our feedstock is procured by j.d . heiskell . our cost of feedstock includes rail , truck , or ship transportation , local basis costs and a handling fee paid to j.d . heiskell . cost of goods sold also includes chemicals , plant overhead and out bound transportation . plant overhead includes direct and indirect costs associated with the operation of the ethanol plant , including the cost of electricity and natural gas , maintenance , insurance , direct labor , depreciation and freight . transportation includes the costs of in-bound delivery of corn by rail , inbound delivery of grain sorghum by ship , rail , and truck , and out-bound shipments of ethanol and wdg by truck . in 2014 , transportation cost for ethanol and wdg was approximately $ 0.09 per gallon . pursuant to a corn procurement and working capital agreement with j.d . heiskell , we purchase all of our corn and grain sorghum from heiskell . title to the corn or grain sorghum passes to us when the corn is ground for processing at our facility and entered into the production process . the credit term of the corn or grain sorghum purchased from j.d . heiskell is five days . j.d . heiskell purchases our ethanol and wdg on one-day terms . the price of corn is established by j.d heiskell based on chicago board of trade ( cbot ) pricing including transportation and basis , plus a handling fee . we establish pricing for wdg and ethanol pursuant to marketing agreements with kinergy and a.l . gilbert . ethanol prices are based on daily opis published rates , while the price of wdg is based on a percentage of dry distiller grains and corn prices . j.d . heiskell is contractually obligated to sell all of the ethanol to kinergy marketing llc , who in turn sells the ethanol to local blenders and all of the wdg to a.l gilbert who in turn sells the wdg to local dairies and feedlots . 28 sales , marketing and general administrative expenses ( sg & a ) sg & a expenses consist of employee compensation , professional services , travel , depreciation , taxes , insurance , rent and utilities , including license and permit fees , penalties and interest , and sales and marketing fees . our single largest expense is employee compensation , including related stock compensation , followed by sales and marketing fees paid in connection with the marketing and sale of ethanol and wdg . story_separator_special_tag the increase in revenues in the india segment for the year ended december 31 , 2013 reflects ( i ) an increase in the amount of biodiesel produced and sold as a result of consistent sales into the domestic market and several sales to one international customer during the year ended december 31 , 2013 compared to no international sales during the year ended december 31 , 2012 , ( ii ) continuing stronger sales of the refined glycerin unit ( iii ) a decrease in sales of natural refined palm oil ( nrpo ) and an increase in sales of crude palm oil . we sold 19.4 thousand metric tons of biodiesel , and 4.9 thousand metric tons of refined glycerin in 2013 , which were increases of 369 % and 115 % , respectively , compared to 2012 ; while the prices of biodiesel and refined glycerin decreased by 26 % to $ 913 per metric ton and 4 % to $ 939 per metric ton respectively in 2013 compared to 2012. in addition , we sold 8.2 thousand metric tons of rpo/stearin in 2013 compared to 6.5 thousand metric tons in 2012 while average price decreased by 140 % from 2012 to 2013. also , we sold 2 thousand metric tons of cpo in 2013 which made up of 1 % of our total india revenue in 2013. for the year ended december 31 , 2013 , we generated approximately 55 % of revenue from sales of biodiesel ( methyl ester ) , 14 % of revenue from sales of glycerin and 31 % of revenue from sales of nrpo and crude palm oil , compared to 31 % of revenue from sales of biodiesel , 16 % of revenue from sales of glycerin and 53 % of revenue from sales of nrpo for the year ended december 31 , 2012. cost of goods sold fiscal year ended december 31 ( in thousands ) replace_table_token_12_th north america . we ground 15.0 million bushels of corn and grain sorghum during the year ended december 31 , 2013 compared to 18.6 million bushels of corn during the twelve months ended december 31 , 2012. our cost of feedstock on a per ton basis decreased by 14 % for the twelve months ended december 31 , 2013 as compared to 2012. the decrease in costs of goods sold between the twelve months ended december 31 , 2013 and 2012 reflects the idling of the keyes , ca plant from january 15 , 2013 through april 22 , 2013 compared to twelve months of operations during the year ended december 31 , 2012 as well as decreased feedstock costs . india . the increase in cost of goods sold reflects the increase in sales of biodiesel and refined glycerin revenue in 2013. in addition , the average cost of nrpo increased 21 % per ton in 2013 compared to 2012. even though , the cost of goods sold increased , gross margins were positive in 2013 due to higher volume sales in biodiesel and refined glycerin compared to 2012 which had negative gross margins due to higher raw material costs and lower finished goods prices in 2012. we processed 4 thousand metric tons of refined palm oil ( rpo ) and 3.9 thousand metric tons of crude glycerin during the twelve months ended december 31 , 2013 to produce 19.8 thousand metric tons of biodiesel and 5.0 thousand metric tons of refined glycerin compared to the processing of 4.7 thousand metric tons of refined palm oil and 1.3 thousand metric tons of crude glycerin to produce 4.0 thousand metric tons of biodiesel and 2.3 thousand metric tons of refined glycerin during the 2012 . 33 gross profit ( loss ) fiscal year ended december 31 ( in thousands ) replace_table_token_13_th north america . gross profit increased by 271.4 % in the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due to decreases in corn prices by 14 % . india . the increase in gross profit was attributable to the increase in overall revenues and volume in the year ended december 31 , 2013 compared to the year ended december 31 , 2012. operating expenses r & d fiscal year ended december 31 ( in thousands ) replace_table_token_14_th the decrease in r & d expense in our north america segment in 2013 primarily came from lower legal costs compared to 2012 offset by the increase in amortization expense in 2013. legal costs in 2012 related principally to the acquisition of zymetis in 2012. sg & a fiscal year ended december 31 ( in thousands ) replace_table_token_15_th selling , general and administrative expenses ( sg & a ) . sg & a expenses consist primarily of salaries and related expenses for employees , marketing expenses related to sales of ethanol and wdg in north america and biodiesel and other products in india , as well as professional fees , other corporate expenses , and related facilities expenses . north america . sg & a expenses as a percentage of revenue in the year ended december 31 , 2013 increased to 9 % as compared to 6 % in the corresponding period of 2012. the increase in sg & a in the year ended december 31 , 2013 was primarily attributable to : ( i ) reclassification of fixed costs from cost of goods sold to sg & a in early 2013 related to idling of the plant of approximately $ 2.5 million , ( ii ) stock compensation expense of approximately $ 0.7 million , ( iii ) $ 0.2 million in payroll expense , and ( iv ) $ 0.2 million in other miscellaneous expense . these increases for the year ended december 31 , 2013 compared with 2012 were offset by decreases in ( i ) financial advisory service fees of $ 1.9 million and ( ii ) marketing fees of $ 0.3

liquidity and capital resources cash and cash equivalents cash and cash equivalents were $ 0.3 million at december 31 , 2014 , of which $ 0.2 million was held in north america and $ 0.1 million was held in our indian subsidiary . our current ratio at december 31 , 2014 was 0.29 compared to a current ratio of 0.35 at december 31 , 2013. we expect that our future available capital resources will consist primarily of cash generated from operations , remaining cash balances , eb-5 program borrowings , amounts available for borrowing , if any , under our senior debt facilities and our subordinated debt facilities , and any additional funds raised through sales of equity . 35 liquidity cash and cash equivalents , current a ssets , current liabilities and debt at the end of each period were as follows ( in thousands ) : replace_table_token_17_th our principal sources of liquidity have been cash provided by operations and borrowings under various debt arrangements . during the first quarter of 2015 , funding from the eb-5 program began , and to the date of this report , funds from 37 investors , representing $ 18.5 million of funding have been authorized for release from the escrow account thus providing an additional source of liquidity for 2015. our principal uses of cash have been to service indebtedness and capital expenditures . we anticipate these uses will continue to be our principal uses of cash in the future . global financial and credit markets have been volatile in recent years , and future adverse conditions of these markets could negatively affect our ability to secure funds or raise capital at a reasonable cost or at all .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash and cash equivalents cash and cash equivalents were $ 0.3 million at december 31 , 2014 , of which $ 0.2 million was held in north america and $ 0.1 million was held in our indian subsidiary . our current ratio at december 31 , 2014 was 0.29 compared to a current ratio of 0.35 at december 31 , 2013. we expect that our future available capital resources will consist primarily of cash generated from operations , remaining cash balances , eb-5 program borrowings , amounts available for borrowing , if any , under our senior debt facilities and our subordinated debt facilities , and any additional funds raised through sales of equity . 35 liquidity cash and cash equivalents , current a ssets , current liabilities and debt at the end of each period were as follows ( in thousands ) : replace_table_token_17_th our principal sources of liquidity have been cash provided by operations and borrowings under various debt arrangements . during the first quarter of 2015 , funding from the eb-5 program began , and to the date of this report , funds from 37 investors , representing $ 18.5 million of funding have been authorized for release from the escrow account thus providing an additional source of liquidity for 2015. our principal uses of cash have been to service indebtedness and capital expenditures . we anticipate these uses will continue to be our principal uses of cash in the future . global financial and credit markets have been volatile in recent years , and future adverse conditions of these markets could negatively affect our ability to secure funds or raise capital at a reasonable cost or at all . ``` Suspicious Activity Report : distiller 's grains is influenced by the price of corn , the supply of dry distiller 's grains , and demand from the local dairy and feed markets . our revenue is further influenced by our decision to operate the plant at any capacity level , maintenance requirements , and the influences of the underlying biological processes . during 2014 , the most significant factor impacting revenue has been the price received for ethanol . on january 15 , 2013 , we temporarily idled the corn grinding and ethanol production activities at our keyes , california plant due to unfavorable market conditions for corn ethanol production , while we undertook efforts perform maintenance and to restart the plant as an advanced biofuel producer . this action was in keeping with the company 's plan to move to advanced biofuel feedstocks and inputs using a recently approved combined grain sorghum and biogas epa pathway for a significant portion of our operational capacity . operations at the ethanol plant were restarted in april 2013. in september 2013 , we received approval by the us environmental protection agency to produce ethanol using grain sorghum and biogas along with the keyes plant existing combined heat and power ( chp ) system to generate higher value advanced biofuel renewable identification numbers ( rin 's ) . india during the twelve months ended december 31 , 2014 , 2013 and 2012 , we operated our biodiesel plant in india . however , our india operations were constrained by funds available from our working capital partner and by diesel price subsidies from the india government . during 2014 , the india government eliminated subsidies for diesel and increased the sales price of diesel to the market prices . our biodiesel pricing is indexed to the price of petroleum diesel , and as such , the increase in the price of petroleum diesel is expected to favorably impact the profitability of our india operations . we continue to diversify our feedstock , our product lines and our customer base . in early 2012 , we completed the construction of glycerin and oil refining units , which enable us to produce and sell refined glycerin and refined palm oil . during 2013 , we further increased sales with expanded orders from international customers . in addition , we commissioned biodiesel distillation capacity for the biodiesel plant in february 2014 and this allows the india plant to produce quality biodiesel which meets or exceeds international standards . during 2014 , we further diversified our feedstock with the introduction of animal oils and fats , which we used for the production of biodiesel to be sold into the european markets . in addition , we have begun to develop a base of industrial customers who use fatty acid methyl ester ( biodiesel ) as a specialty chemical for commercial manufacturing . north america segment revenue substantially all of our north america revenues during the years ended december 31 , 2014 , 2013 , and 2012 were from sales of ethanol and wdg . during the twelve months ended december 31 , 2014 , 2013 , 2012 , we produced and sold 60.2 million gallons , 42.4 million gallons , and 53.0 million gallons of ethanol and 408 thousand tons , 301 thousand tons , and 380 thousand tons of wdg , respectively . cost of goods sold substantially all of our feedstock is procured by j.d . heiskell . our cost of feedstock includes rail , truck , or ship transportation , local basis costs and a handling fee paid to j.d . heiskell . cost of goods sold also includes chemicals , plant overhead and out bound transportation . plant overhead includes direct and indirect costs associated with the operation of the ethanol plant , including the cost of electricity and natural gas , maintenance , insurance , direct labor , depreciation and freight . transportation includes the costs of in-bound delivery of corn by rail , inbound delivery of grain sorghum by ship , rail , and truck , and out-bound shipments of ethanol and wdg by truck . in 2014 , transportation cost for ethanol and wdg was approximately $ 0.09 per gallon . pursuant to a corn procurement and working capital agreement with j.d . heiskell , we purchase all of our corn and grain sorghum from heiskell . title to the corn or grain sorghum passes to us when the corn is ground for processing at our facility and entered into the production process . the credit term of the corn or grain sorghum purchased from j.d . heiskell is five days . j.d . heiskell purchases our ethanol and wdg on one-day terms . the price of corn is established by j.d heiskell based on chicago board of trade ( cbot ) pricing including transportation and basis , plus a handling fee . we establish pricing for wdg and ethanol pursuant to marketing agreements with kinergy and a.l . gilbert . ethanol prices are based on daily opis published rates , while the price of wdg is based on a percentage of dry distiller grains and corn prices . j.d . heiskell is contractually obligated to sell all of the ethanol to kinergy marketing llc , who in turn sells the ethanol to local blenders and all of the wdg to a.l gilbert who in turn sells the wdg to local dairies and feedlots . 28 sales , marketing and general administrative expenses ( sg & a ) sg & a expenses consist of employee compensation , professional services , travel , depreciation , taxes , insurance , rent and utilities , including license and permit fees , penalties and interest , and sales and marketing fees . our single largest expense is employee compensation , including related stock compensation , followed by sales and marketing fees paid in connection with the marketing and sale of ethanol and wdg . story_separator_special_tag the increase in revenues in the india segment for the year ended december 31 , 2013 reflects ( i ) an increase in the amount of biodiesel produced and sold as a result of consistent sales into the domestic market and several sales to one international customer during the year ended december 31 , 2013 compared to no international sales during the year ended december 31 , 2012 , ( ii ) continuing stronger sales of the refined glycerin unit ( iii ) a decrease in sales of natural refined palm oil ( nrpo ) and an increase in sales of crude palm oil . we sold 19.4 thousand metric tons of biodiesel , and 4.9 thousand metric tons of refined glycerin in 2013 , which were increases of 369 % and 115 % , respectively , compared to 2012 ; while the prices of biodiesel and refined glycerin decreased by 26 % to $ 913 per metric ton and 4 % to $ 939 per metric ton respectively in 2013 compared to 2012. in addition , we sold 8.2 thousand metric tons of rpo/stearin in 2013 compared to 6.5 thousand metric tons in 2012 while average price decreased by 140 % from 2012 to 2013. also , we sold 2 thousand metric tons of cpo in 2013 which made up of 1 % of our total india revenue in 2013. for the year ended december 31 , 2013 , we generated approximately 55 % of revenue from sales of biodiesel ( methyl ester ) , 14 % of revenue from sales of glycerin and 31 % of revenue from sales of nrpo and crude palm oil , compared to 31 % of revenue from sales of biodiesel , 16 % of revenue from sales of glycerin and 53 % of revenue from sales of nrpo for the year ended december 31 , 2012. cost of goods sold fiscal year ended december 31 ( in thousands ) replace_table_token_12_th north america . we ground 15.0 million bushels of corn and grain sorghum during the year ended december 31 , 2013 compared to 18.6 million bushels of corn during the twelve months ended december 31 , 2012. our cost of feedstock on a per ton basis decreased by 14 % for the twelve months ended december 31 , 2013 as compared to 2012. the decrease in costs of goods sold between the twelve months ended december 31 , 2013 and 2012 reflects the idling of the keyes , ca plant from january 15 , 2013 through april 22 , 2013 compared to twelve months of operations during the year ended december 31 , 2012 as well as decreased feedstock costs . india . the increase in cost of goods sold reflects the increase in sales of biodiesel and refined glycerin revenue in 2013. in addition , the average cost of nrpo increased 21 % per ton in 2013 compared to 2012. even though , the cost of goods sold increased , gross margins were positive in 2013 due to higher volume sales in biodiesel and refined glycerin compared to 2012 which had negative gross margins due to higher raw material costs and lower finished goods prices in 2012. we processed 4 thousand metric tons of refined palm oil ( rpo ) and 3.9 thousand metric tons of crude glycerin during the twelve months ended december 31 , 2013 to produce 19.8 thousand metric tons of biodiesel and 5.0 thousand metric tons of refined glycerin compared to the processing of 4.7 thousand metric tons of refined palm oil and 1.3 thousand metric tons of crude glycerin to produce 4.0 thousand metric tons of biodiesel and 2.3 thousand metric tons of refined glycerin during the 2012 . 33 gross profit ( loss ) fiscal year ended december 31 ( in thousands ) replace_table_token_13_th north america . gross profit increased by 271.4 % in the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due to decreases in corn prices by 14 % . india . the increase in gross profit was attributable to the increase in overall revenues and volume in the year ended december 31 , 2013 compared to the year ended december 31 , 2012. operating expenses r & d fiscal year ended december 31 ( in thousands ) replace_table_token_14_th the decrease in r & d expense in our north america segment in 2013 primarily came from lower legal costs compared to 2012 offset by the increase in amortization expense in 2013. legal costs in 2012 related principally to the acquisition of zymetis in 2012. sg & a fiscal year ended december 31 ( in thousands ) replace_table_token_15_th selling , general and administrative expenses ( sg & a ) . sg & a expenses consist primarily of salaries and related expenses for employees , marketing expenses related to sales of ethanol and wdg in north america and biodiesel and other products in india , as well as professional fees , other corporate expenses , and related facilities expenses . north america . sg & a expenses as a percentage of revenue in the year ended december 31 , 2013 increased to 9 % as compared to 6 % in the corresponding period of 2012. the increase in sg & a in the year ended december 31 , 2013 was primarily attributable to : ( i ) reclassification of fixed costs from cost of goods sold to sg & a in early 2013 related to idling of the plant of approximately $ 2.5 million , ( ii ) stock compensation expense of approximately $ 0.7 million , ( iii ) $ 0.2 million in payroll expense , and ( iv ) $ 0.2 million in other miscellaneous expense . these increases for the year ended december 31 , 2013 compared with 2012 were offset by decreases in ( i ) financial advisory service fees of $ 1.9 million and ( ii ) marketing fees of $ 0.3

for any given individual estimate or assumption we make , there may also be other estimates or assumptions that are reasonable . we believe that the following critical accounting policies require the use of significant estimates , assumptions , and judgments . the use of different estimates , assumptions , and judgments could have a material effect on the reported amounts of assets , liabilities , revenue , expenses , and related disclosures as of the date of the financial statements and during the reporting period . revenue recognition revenue is recognized when obligations under the terms of a contract with a customer are satisfied ; generally this occurs with the transfer of control of devices , supplies , or services . revenue is measured as the amount of consideration the company expects to receive in exchange for transferring goods or providing services . for the majority of devices and supplies , the company transfers control and recognizes revenue when products ship from the warehouse to the customer . the company generally does not provide rights of return on devices and supplies . freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue . depending on the terms of the arrangement , the company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation ( e.g . installation ) . judgment is required to determine the standalone selling price ( “ ssp ” ) for each distinct performance obligation . the company 's estimate of ssp is a point estimate . the estimate is 31 calculated annually for each performance obligation that is not sold separately . in instances where ssp is not directly observable , such as when the company does not sell the product or service separately , the ssp is determined using information that may include market conditions and other observable inputs . the company sells separately-priced service contracts that extend maintenance coverages for both medical devices and data management systems beyond the base agreements to customers . the separately priced service contracts range from 12 months to 36 months . the company receives payment at the inception of the contract and recognizes revenue ratably over the service period . for products containing embedded software , the company determined the hardware and software components function together to deliver the products ' essential functionality and are considered a combined performance obligation . revenue recognition policies for sales of these products are substantially the same as for other tangible products . acquisition accounting we have made a number of acquisitions in the past and may continue to make acquisitions in the future . we account for acquired business combinations using the acquisition method of accounting . the assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition , with limited exceptions . valuations are generally completed for business acquisitions using a discounted cash flow analysis . the most significant estimates and assumptions inherent in a discounted cash flow analysis include the amount and timing of projected future cash flows , the discounted rate used to measure the risks inherent in the future cash flows , the assessment of the asset 's life cycle , and the competitive and other trends impacting the asset , including consideration of technical , legal , regulatory , economic and other factors . each of these factors and assumptions can significantly affect the value of the intangible asset . the excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill . determining the useful life of an intangible asset also requires judgment , as different types of intangibles assets will have different useful lives and certain assets may even be considered to have indefinite useful lives . useful life is the period over which the intangible asset is expected to contribute directly and indirectly to our future cash flows . we determine the useful lives of intangible assets based on a number of factors , such as legal , regulatory , or contractual provisions that may limit the useful life , and the effects of obsolescence , anticipated demand , existence or absence of competition , and other economic factors on useful life . 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 for tax losses 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 . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . we may record a valuation allowance if , based on all available positive and negative evidence , we determine that some portion of the deferred tax assets may not be realized prior to expiration . if we determine that we may be able to realize our deferred tax assets in the future excess of their net recorded amount , we would release the valuation allowance and recognize a discrete tax benefit during the period in which the determination was made . as part of the process of preparing our consolidated financial statements , we must estimate our income tax expense for each of the jurisdictions in which we operate . story_separator_special_tag as of december 31 , 2018 we have classified $ 35.0 million out of the $ 105.0 million outstanding as short-term on our balance sheet due to our intent to repay this portion over the next twelve months . we are not able to reasonably estimate the timing of any potential payments for uncertain tax positions under accounting standards codification ( `` asc `` ) 740 , accounting for uncertainty in income taxes—an interpretation of fasb statement 109 . as a result , the preceding table excludes any potential future payments related to our asc 740 liability for uncertain tax positions . see note 17 of our consolidated financial statements for further discussion on income taxes . quantitative and qualitative disclosures about market risk we are exposed to various market risks , including changes in foreign currency exchange rates and interest rates that could adversely affect our results of operations and financial condition . we are exposed to interest rate risk on our libor-indexed floating-rate debt . we have entered into an interest rate swap agreement to effectively covert a portion of our floating-rate debt to a fixed-rate . the principal objective of the swap contract is to reduce the variability of future earnings and cash flows associated with our floating-rate debt . we do not hold or issue derivative instruments for trading or other speculative purposes . foreign exchange rate risk we develop products in the u.s , canada , europe , and argentina , and sell those products into more than 100 countries throughout the world . as a result , our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets . most of our sales in europe and asia are denominated in the u.s. dollar and euro and with a portion of our sales denominated in canadian dollar , argentine peso and british pound . as our sales in currencies other than the u.s. dollar increase , our exposure to foreign currency fluctuations may increase . in addition , changes in exchange rates also may affect the end-user prices of our products compared to those of our foreign competitors , who may be selling their products based on local currency pricing . these factors may make our products less competitive in some countries . if the u.s. dollar uniformly increased or decreased in strength by 10 % relative to the currencies in which our sales were denominated , our net income would have correspondingly increased or decreased by an immaterial amount for the year ended december 31 , 2018 . our interest expense is sensitive to changes in interest rates and may vary with the federal funds rate and london interbank offered rate ( libor ) . we may decrease interest rate risk by keeping our debt leverage low . a hypothetical decrease of 1,000 basis points in market interest rates would not result in a material decrease in interest expense paid on debt held at december 31 , 2018 . 40 all of the potential changes noted above are based on sensitivity analyses performed on our financial position as of december 31 , 2018 . actual results may differ as our analysis of the effects of changes in interest rates does not account for , among other things , sales of securities prior to maturity and repurchase of replacement securities , the change in mix or quality of the investments in the portfolio , and changes in the relationship between short-term and long-term interest rates . interest rate risk during 2018 , we entered into an interest rate swap agreement with a notional amount of $ 40.0 million , designated as a cash flow hedge , to hedge the variability of cash flows in interest payments associated with our floating-rate debt . this interest rate swap agreement matures in september 2021 and converts a portion of our libor floating-rate debt to fixed-rate debt . the fair value of the interest rate swap agreement is based upon inputs corroborated by observable market data . changes in the fair value of the interest rate swap agreement are recorded as a component of accumulated other comprehensive income ( loss ) within stockholders ' equity and are amortized to interest expense over the term of the related debt . as of december 31 , 2018 , accumulated other comprehensive income ( loss ) related to the interest rate swap agreement included a net unrealized loss of approximately $ 61 thousand , net of tax , which will be recognized in interest expense after the following 12 months , at the then current values on a pre-tax basis . see note 11 to these condensed consolidated financial statements for additional discussion on our financial instruments and derivatives . interest rate risk sensitivity analysis our remaining indebtedness is at variable rates of interest . accordingly , changes in interest rates would impact our results of operations in future periods . based on a sensitivity analysis on actual rates experienced during 2018 , a hypothetical increase in interest rates of 50 basis points would have resulted in increased interest expense of $ 0.6 million of the year ended december 31 , 2018. recent accounting pronouncements see note 1—organization and significant accounting policies to the consolidated financial statements contained herein for a full description of recent accounting pronouncements including the respective expected dates of adoption and effects on results of our operations and financial condition . cautionary information regarding forward looking statements this report contains forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934 about natus medical incorporated . forward-looking statements can be identified by the words “ expects ” , “ anticipates ” , “ believes ” , “ intends ” , “ estimates ” , “ plans ” , “ will ” , “ outlook ” and similar expressions . forward-looking statements are based

liquidity and capital resources liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments . in addition , liquidity includes the ability to obtain appropriate financing and to raise capital . therefore , liquidity can not be considered separately from capital resources that consist of our current funds and the potential to increase those funds in the future . we plan to use these resources in meeting our commitments and in achieving our business objectives . we believe that our current cash and cash equivalents and any cash generated from operations will be sufficient to meet our ongoing operating requirements for the foreseeable future . as of december 31 , 2018 , we had cash and cash equivalents outside the u.s. in certain of our foreign operations of $ 46.8 million . we intend to permanently reinvest this cash held by our foreign subsidiaries except for excel-tech and natus ireland subsidiaries , which we intend to repatriate . if , however , a portion of these permanently reinvested funds were needed and distributed to our operations in the united states , we may be subject to additional u.s. income taxes and foreign withholding taxes depending on facts and circumstances at the time of distribution . the amount of taxes due would depend on the amount and manner of repatriation , as well as the location from where the funds were repatriated . on september 23 , 2016 , we entered into a credit agreement with jp morgan chase bank ( “ jp morgan ” ) and citibank , na ( “ citibank ” ) . the credit agreement provides for an aggregate $ 150.0 million of secured revolving credit facility ( the “ credit facility ” ) . on september 15 , 2017 , we exercised our right to increase the amount available under the facility by $ 75.0 million , bringing the aggregate revolving credit facility to $ 225.0 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments . in addition , liquidity includes the ability to obtain appropriate financing and to raise capital . therefore , liquidity can not be considered separately from capital resources that consist of our current funds and the potential to increase those funds in the future . we plan to use these resources in meeting our commitments and in achieving our business objectives . we believe that our current cash and cash equivalents and any cash generated from operations will be sufficient to meet our ongoing operating requirements for the foreseeable future . as of december 31 , 2018 , we had cash and cash equivalents outside the u.s. in certain of our foreign operations of $ 46.8 million . we intend to permanently reinvest this cash held by our foreign subsidiaries except for excel-tech and natus ireland subsidiaries , which we intend to repatriate . if , however , a portion of these permanently reinvested funds were needed and distributed to our operations in the united states , we may be subject to additional u.s. income taxes and foreign withholding taxes depending on facts and circumstances at the time of distribution . the amount of taxes due would depend on the amount and manner of repatriation , as well as the location from where the funds were repatriated . on september 23 , 2016 , we entered into a credit agreement with jp morgan chase bank ( “ jp morgan ” ) and citibank , na ( “ citibank ” ) . the credit agreement provides for an aggregate $ 150.0 million of secured revolving credit facility ( the “ credit facility ” ) . on september 15 , 2017 , we exercised our right to increase the amount available under the facility by $ 75.0 million , bringing the aggregate revolving credit facility to $ 225.0 million . ``` Suspicious Activity Report : for any given individual estimate or assumption we make , there may also be other estimates or assumptions that are reasonable . we believe that the following critical accounting policies require the use of significant estimates , assumptions , and judgments . the use of different estimates , assumptions , and judgments could have a material effect on the reported amounts of assets , liabilities , revenue , expenses , and related disclosures as of the date of the financial statements and during the reporting period . revenue recognition revenue is recognized when obligations under the terms of a contract with a customer are satisfied ; generally this occurs with the transfer of control of devices , supplies , or services . revenue is measured as the amount of consideration the company expects to receive in exchange for transferring goods or providing services . for the majority of devices and supplies , the company transfers control and recognizes revenue when products ship from the warehouse to the customer . the company generally does not provide rights of return on devices and supplies . freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue . depending on the terms of the arrangement , the company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation ( e.g . installation ) . judgment is required to determine the standalone selling price ( “ ssp ” ) for each distinct performance obligation . the company 's estimate of ssp is a point estimate . the estimate is 31 calculated annually for each performance obligation that is not sold separately . in instances where ssp is not directly observable , such as when the company does not sell the product or service separately , the ssp is determined using information that may include market conditions and other observable inputs . the company sells separately-priced service contracts that extend maintenance coverages for both medical devices and data management systems beyond the base agreements to customers . the separately priced service contracts range from 12 months to 36 months . the company receives payment at the inception of the contract and recognizes revenue ratably over the service period . for products containing embedded software , the company determined the hardware and software components function together to deliver the products ' essential functionality and are considered a combined performance obligation . revenue recognition policies for sales of these products are substantially the same as for other tangible products . acquisition accounting we have made a number of acquisitions in the past and may continue to make acquisitions in the future . we account for acquired business combinations using the acquisition method of accounting . the assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition , with limited exceptions . valuations are generally completed for business acquisitions using a discounted cash flow analysis . the most significant estimates and assumptions inherent in a discounted cash flow analysis include the amount and timing of projected future cash flows , the discounted rate used to measure the risks inherent in the future cash flows , the assessment of the asset 's life cycle , and the competitive and other trends impacting the asset , including consideration of technical , legal , regulatory , economic and other factors . each of these factors and assumptions can significantly affect the value of the intangible asset . the excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill . determining the useful life of an intangible asset also requires judgment , as different types of intangibles assets will have different useful lives and certain assets may even be considered to have indefinite useful lives . useful life is the period over which the intangible asset is expected to contribute directly and indirectly to our future cash flows . we determine the useful lives of intangible assets based on a number of factors , such as legal , regulatory , or contractual provisions that may limit the useful life , and the effects of obsolescence , anticipated demand , existence or absence of competition , and other economic factors on useful life . 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 for tax losses 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 . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . we may record a valuation allowance if , based on all available positive and negative evidence , we determine that some portion of the deferred tax assets may not be realized prior to expiration . if we determine that we may be able to realize our deferred tax assets in the future excess of their net recorded amount , we would release the valuation allowance and recognize a discrete tax benefit during the period in which the determination was made . as part of the process of preparing our consolidated financial statements , we must estimate our income tax expense for each of the jurisdictions in which we operate . story_separator_special_tag as of december 31 , 2018 we have classified $ 35.0 million out of the $ 105.0 million outstanding as short-term on our balance sheet due to our intent to repay this portion over the next twelve months . we are not able to reasonably estimate the timing of any potential payments for uncertain tax positions under accounting standards codification ( `` asc `` ) 740 , accounting for uncertainty in income taxes—an interpretation of fasb statement 109 . as a result , the preceding table excludes any potential future payments related to our asc 740 liability for uncertain tax positions . see note 17 of our consolidated financial statements for further discussion on income taxes . quantitative and qualitative disclosures about market risk we are exposed to various market risks , including changes in foreign currency exchange rates and interest rates that could adversely affect our results of operations and financial condition . we are exposed to interest rate risk on our libor-indexed floating-rate debt . we have entered into an interest rate swap agreement to effectively covert a portion of our floating-rate debt to a fixed-rate . the principal objective of the swap contract is to reduce the variability of future earnings and cash flows associated with our floating-rate debt . we do not hold or issue derivative instruments for trading or other speculative purposes . foreign exchange rate risk we develop products in the u.s , canada , europe , and argentina , and sell those products into more than 100 countries throughout the world . as a result , our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets . most of our sales in europe and asia are denominated in the u.s. dollar and euro and with a portion of our sales denominated in canadian dollar , argentine peso and british pound . as our sales in currencies other than the u.s. dollar increase , our exposure to foreign currency fluctuations may increase . in addition , changes in exchange rates also may affect the end-user prices of our products compared to those of our foreign competitors , who may be selling their products based on local currency pricing . these factors may make our products less competitive in some countries . if the u.s. dollar uniformly increased or decreased in strength by 10 % relative to the currencies in which our sales were denominated , our net income would have correspondingly increased or decreased by an immaterial amount for the year ended december 31 , 2018 . our interest expense is sensitive to changes in interest rates and may vary with the federal funds rate and london interbank offered rate ( libor ) . we may decrease interest rate risk by keeping our debt leverage low . a hypothetical decrease of 1,000 basis points in market interest rates would not result in a material decrease in interest expense paid on debt held at december 31 , 2018 . 40 all of the potential changes noted above are based on sensitivity analyses performed on our financial position as of december 31 , 2018 . actual results may differ as our analysis of the effects of changes in interest rates does not account for , among other things , sales of securities prior to maturity and repurchase of replacement securities , the change in mix or quality of the investments in the portfolio , and changes in the relationship between short-term and long-term interest rates . interest rate risk during 2018 , we entered into an interest rate swap agreement with a notional amount of $ 40.0 million , designated as a cash flow hedge , to hedge the variability of cash flows in interest payments associated with our floating-rate debt . this interest rate swap agreement matures in september 2021 and converts a portion of our libor floating-rate debt to fixed-rate debt . the fair value of the interest rate swap agreement is based upon inputs corroborated by observable market data . changes in the fair value of the interest rate swap agreement are recorded as a component of accumulated other comprehensive income ( loss ) within stockholders ' equity and are amortized to interest expense over the term of the related debt . as of december 31 , 2018 , accumulated other comprehensive income ( loss ) related to the interest rate swap agreement included a net unrealized loss of approximately $ 61 thousand , net of tax , which will be recognized in interest expense after the following 12 months , at the then current values on a pre-tax basis . see note 11 to these condensed consolidated financial statements for additional discussion on our financial instruments and derivatives . interest rate risk sensitivity analysis our remaining indebtedness is at variable rates of interest . accordingly , changes in interest rates would impact our results of operations in future periods . based on a sensitivity analysis on actual rates experienced during 2018 , a hypothetical increase in interest rates of 50 basis points would have resulted in increased interest expense of $ 0.6 million of the year ended december 31 , 2018. recent accounting pronouncements see note 1—organization and significant accounting policies to the consolidated financial statements contained herein for a full description of recent accounting pronouncements including the respective expected dates of adoption and effects on results of our operations and financial condition . cautionary information regarding forward looking statements this report contains forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934 about natus medical incorporated . forward-looking statements can be identified by the words “ expects ” , “ anticipates ” , “ believes ” , “ intends ” , “ estimates ” , “ plans ” , “ will ” , “ outlook ” and similar expressions . forward-looking statements are based

we are developing rhopressa as the first of a new class of compounds that is designed to lower iop in patients through novel moas . we believe that , if approved , rhopressa will represent the first new moas for lowering iop in patients with glaucoma in over 20 years . based on preclinical studies and clinical data to date , we expect that rhopressa , if approved , will have the potential to compete with non-pga ( prostaglandin analog ) products as a preferred adjunctive therapy to pgas , due to its targeting of the diseased tissue known as the trabecular meshwork , or tm , its demonstrated iop-lowering ability at consistent levels across tested baselines with once-daily dosing relative to currently marketed non-pga products , its potential synergistic effect with pga products , its once daily dosing and its lack of serious drug related adverse events . in addition , if approved , we believe that rhopressa may also potentially become a preferred therapy where pgas are contraindicated , for patients who do not respond to pgas , for patients who have lower iops but nevertheless present with glaucomatous damage to 66 the optic nerve , which is commonly referred to as “ low-tension ” or “ normal tension ” glaucoma , as well as for patients who choose to avoid the cosmetic issues associated with pga products . our second product candidate , once-daily roclatan ophthalmic solution ( netarsudil/latanoprost ophthalmic solution ) 0.02 % /0.005 % ( “ roclatan ” ) , is a fixed-dose combination of rhopressa and latanoprost , the most commonly prescribed drug for the treatment of patients with open-angle glaucoma . the first phase 3 registration trial for roclatan , named “ mercury 1 , ” which is a 12-month safety trial with a 90-day efficacy readout , commenced in september 2015 and , in september 2016 , we announced that mercury 1 achieved its primary efficacy endpoint of demonstrating superiority of roclatan to each of its components . the trial is designed to evaluate patients with maximum baseline iops ranging from above 20 mmhg to below 36 mmhg at nine measured time points over the 90-day efficacy period . in the 90-day efficacy results , the iop-lowering effect of roclatan exceeded that of the latanoprost monotherapy in a range of 1.3 mmhg to 2.5 mmhg and that of the rhopressa monotherapy in a range of 1.8 mmhg to 3.0 mmhg . roclatan reduced mean diurnal iops to 16 mmhg or lower in 61 % of patients , a significantly higher percentage than observed in the comparator arms in the study . the safety and tolerability results for roclatan tm from the 90-day efficacy period of mercury 1 showed no drug-related serious adverse events . the most common adverse event observed in the roclatan tm arm was conjunctival hyperemia , or eye redness , which was reported in approximately 50 % of patients , approximately 80 % of which was reported as mild . there were no drug-related serious adverse events for any of the comparators in the trial . we expect to report mercury 1 topline 12-month safety data in the third quarter of 2017. the second phase 3 registration trial for roclatan , named “ mercury 2 , ” commenced in march 2016. mercury 2 is a 90-day efficacy and safety trial designed to demonstrate superiority of roclatan to each of its components . we expect to report the topline 90-day efficacy data for mercury 2 in the second quarter of 2017. if both mercury 1 and mercury 2 are successful , we expect to submit an nda for roclatan in late 2017 or early 2018 , which may be prior to obtaining approval for rhopressa . we are permitted to submit the roclatan nda while the rhopressa is still being reviewed by the fda . mercury 1 and mercury 2 will also be used for european approval of roclatan , and we plan to initiate a third phase 3 registration trial for roclatan , named “ mercury 3 , ” in europe in mid-2017 . mercury 3 will be designed to compare roclatan to ganfort® , a fixed-dose combination product of bimatoprost and timolol marketed in europe , which if successful , should improve our commercialization prospects in that region . we believe , based on our preclinical studies and clinical trials to date , that roclatan , if approved , will be the only glaucoma product that covers the full spectrum of currently known iop-lowering moas , giving it the potential to provide a greater iop-lowering effect than any currently marketed glaucoma product . therefore , we believe that roclatan tm , if approved , could compete with both pga and non-pga therapies for patients requiring maximal iop lowering , including those with higher iops and those who present with significant disease progression despite currently available therapies . our stated objective is to build a major ophthalmic pharmaceutical company . in addition to our primary product candidates , rhopressa and roclatan , we continue to explore the impact of rhopressa on the diseased tm . we have issued several research updates on preclinical results demonstrating that rhopressa may have the potential for disease modification , including stopping and potentially reversing fibrosis in the tm , and also increasing perfusion in the trabecular outflow pathway thus increasing both drainage and the delivery of nutrients to the diseased tissue . we are also conducting ongoing research to evaluate injectable sustained release formulation technologies with the potential capability of delivering rhopressa internally in the eye over several months for the treatment of glaucoma . we are also evaluating possible uses of our existing proprietary portfolio of rho kinase inhibitors beyond glaucoma . story_separator_special_tag fair value measurements we record certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants . the fair value of our financial instruments , including cash and cash equivalents , short-term investments , other current assets , accounts payable and accrued expenses approximate their respective carrying values due to the short-term nature of these instruments . the carrying amounts of long-term investments represent their estimated fair values . the estimated fair value of the 2014 convertible notes was $ 209.6 million and $ 140.1 million as of december 31 , 2016 and 2015 , respectively . the increase in the estimated fair value of the 2014 convertible notes was primarily attributable to the change in the closing price of our common stock on december 31 , 2016 as compared to december 31 , 2015. stock-based compensation we recognize compensation costs related to stock options granted to employees ratably over the requisite service period , which in most cases is the vesting period of the award for employees , based on the estimated fair value of the awards on the date of grant . compensation expense for options granted to non-employees is determined as the fair value of consideration received or the fair value of the equity instruments issued , whichever is more reliably measured . the fair value of the awards granted to non-employees is re-measured each period until the related service is complete . compensation expense related to restricted stock awards is based on the market value of our common stock on the grant date and is expensed ratably over the vesting period . compensation expense for stock purchase rights under our employee stock purchase plan is measured and recognized on the date that we become obligated to issue shares of our common stock and is based on the difference between the fair value of our common stock and the purchase price on such date . stock-based compensation expense was $ 16.8 million , $ 12.9 million and $ 9.2 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . as of december 31 , 2016 , we had $ 29.0 million of unrecognized compensation expense . the intrinsic value of all stock options outstanding as of december 31 , 2016 was $ 123.6 million , of which $ 88.7 million and $ 34.9 million related to stock options that were vested and unvested , respectively , at that date . significant factors , assumptions and methodologies used in determining fair value determining the appropriate fair value measurement of stock-based awards requires the use of subjective assumptions . in the absence of a public trading market for our common stock prior to the completion of our ipo , we conducted periodic assessments of the valuation of our common stock . the determination of the fair value measurement of options using the black-scholes option pricing model is affected by our estimated common stock fair values as well as assumptions regarding a number of other subjective variables . these other variables include the expected term of the options , our expected stock price volatility over the expected term of the options , stock option exercise and cancellation behaviors , risk-free interest rates and expected dividends . we estimated the fair value of stock options at the grant date using the following assumptions : fair value of our common stock . for all stock options granted after the completion of our ipo , the fair value for our underlying common stock is determined using the closing price on the date of grant as reported on the nasdaq global market . for all stock options granted prior to the completion of our ipo , the fair value for our underlying common stock was determined by our board of directors in its sole discretion based on recommendations from management and taking into account advice and assistance provided by third-party valuation consultants engaged to assist us in connection with such valuations . volatility . we calculate expected volatility based on our historical volatility in combination with reported data for a selected group of similar publicly traded companies , or guideline peer group , for which the relevant historical information is available . we selected representative companies from the pharmaceutical industry with similar characteristics to us , including stage of product development and therapeutic focus . we will continue to use a combination of our historical volatility and the guideline peer group volatility information for the foreseeable future . expected term . we used the simplified method as prescribed by the sec staff accounting bulletin no . 107 , share-based payment , as we do not have sufficient historical exercise and post-vesting termination data to 72 provide a reasonable basis upon which to estimate the expected term of stock options granted to employees . the simplified method is based on the vesting period and the contractual term for each grant , or for each vesting-tranche for awards with graded vesting . the midpoint between the vesting date and the maximum contractual expiration date is used as the expected term under this method . risk-free rate . the risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected time to exercise . forfeiture . forfeitures are estimated such that we only recognize expense for the shares expected to vest , and adjustments are made if actual forfeitures differ from those estimates . we estimate our annual forfeiture rates based on our historical analysis of actual stock option forfeitures and our future expectations . dividend yield . except for a one-time cash dividend related to the spin-off of certain non-core intellectual property that occurred in 2012 , we have never declared or paid any

liquidity and capital resources since our inception , we have funded operations primarily through the sale of equity securities and the issuance of convertible notes . we have incurred losses and experienced negative operating cash flows since our inception and anticipate that we will continue to incur losses until such a time when our product candidates are commercially successful , if at all . prior to our ipo , we raised net cash proceeds of $ 78.6 million from the private placement of convertible preferred stock and convertible notes . prior to and in connection with our ipo , all outstanding shares of convertible preferred stock and all convertible notes were converted into shares of common stock . on october 30 , 2013 , we completed our ipo and issued 7,728,000 shares of our common stock at an ipo price of $ 10.00 per share . we received net proceeds from the ipo of approximately $ 68.3 million . on september 30 , 2014 , we issued $ 125.0 million aggregate principal amount of the 2014 convertible notes , of which we received net proceeds of approximately $ 122.9 million . on november 3 , 2014 , we filed a shelf registration statement on form s-3 ( “ the 2014 registration statement ” ) that permitted the offering , issuance and sale by us of up to a maximum aggregate offering price of $150.0 million of our common stock and permits sales of common stock by certain selling stockholders .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources since our inception , we have funded operations primarily through the sale of equity securities and the issuance of convertible notes . we have incurred losses and experienced negative operating cash flows since our inception and anticipate that we will continue to incur losses until such a time when our product candidates are commercially successful , if at all . prior to our ipo , we raised net cash proceeds of $ 78.6 million from the private placement of convertible preferred stock and convertible notes . prior to and in connection with our ipo , all outstanding shares of convertible preferred stock and all convertible notes were converted into shares of common stock . on october 30 , 2013 , we completed our ipo and issued 7,728,000 shares of our common stock at an ipo price of $ 10.00 per share . we received net proceeds from the ipo of approximately $ 68.3 million . on september 30 , 2014 , we issued $ 125.0 million aggregate principal amount of the 2014 convertible notes , of which we received net proceeds of approximately $ 122.9 million . on november 3 , 2014 , we filed a shelf registration statement on form s-3 ( “ the 2014 registration statement ” ) that permitted the offering , issuance and sale by us of up to a maximum aggregate offering price of $150.0 million of our common stock and permits sales of common stock by certain selling stockholders . ``` Suspicious Activity Report : we are developing rhopressa as the first of a new class of compounds that is designed to lower iop in patients through novel moas . we believe that , if approved , rhopressa will represent the first new moas for lowering iop in patients with glaucoma in over 20 years . based on preclinical studies and clinical data to date , we expect that rhopressa , if approved , will have the potential to compete with non-pga ( prostaglandin analog ) products as a preferred adjunctive therapy to pgas , due to its targeting of the diseased tissue known as the trabecular meshwork , or tm , its demonstrated iop-lowering ability at consistent levels across tested baselines with once-daily dosing relative to currently marketed non-pga products , its potential synergistic effect with pga products , its once daily dosing and its lack of serious drug related adverse events . in addition , if approved , we believe that rhopressa may also potentially become a preferred therapy where pgas are contraindicated , for patients who do not respond to pgas , for patients who have lower iops but nevertheless present with glaucomatous damage to 66 the optic nerve , which is commonly referred to as “ low-tension ” or “ normal tension ” glaucoma , as well as for patients who choose to avoid the cosmetic issues associated with pga products . our second product candidate , once-daily roclatan ophthalmic solution ( netarsudil/latanoprost ophthalmic solution ) 0.02 % /0.005 % ( “ roclatan ” ) , is a fixed-dose combination of rhopressa and latanoprost , the most commonly prescribed drug for the treatment of patients with open-angle glaucoma . the first phase 3 registration trial for roclatan , named “ mercury 1 , ” which is a 12-month safety trial with a 90-day efficacy readout , commenced in september 2015 and , in september 2016 , we announced that mercury 1 achieved its primary efficacy endpoint of demonstrating superiority of roclatan to each of its components . the trial is designed to evaluate patients with maximum baseline iops ranging from above 20 mmhg to below 36 mmhg at nine measured time points over the 90-day efficacy period . in the 90-day efficacy results , the iop-lowering effect of roclatan exceeded that of the latanoprost monotherapy in a range of 1.3 mmhg to 2.5 mmhg and that of the rhopressa monotherapy in a range of 1.8 mmhg to 3.0 mmhg . roclatan reduced mean diurnal iops to 16 mmhg or lower in 61 % of patients , a significantly higher percentage than observed in the comparator arms in the study . the safety and tolerability results for roclatan tm from the 90-day efficacy period of mercury 1 showed no drug-related serious adverse events . the most common adverse event observed in the roclatan tm arm was conjunctival hyperemia , or eye redness , which was reported in approximately 50 % of patients , approximately 80 % of which was reported as mild . there were no drug-related serious adverse events for any of the comparators in the trial . we expect to report mercury 1 topline 12-month safety data in the third quarter of 2017. the second phase 3 registration trial for roclatan , named “ mercury 2 , ” commenced in march 2016. mercury 2 is a 90-day efficacy and safety trial designed to demonstrate superiority of roclatan to each of its components . we expect to report the topline 90-day efficacy data for mercury 2 in the second quarter of 2017. if both mercury 1 and mercury 2 are successful , we expect to submit an nda for roclatan in late 2017 or early 2018 , which may be prior to obtaining approval for rhopressa . we are permitted to submit the roclatan nda while the rhopressa is still being reviewed by the fda . mercury 1 and mercury 2 will also be used for european approval of roclatan , and we plan to initiate a third phase 3 registration trial for roclatan , named “ mercury 3 , ” in europe in mid-2017 . mercury 3 will be designed to compare roclatan to ganfort® , a fixed-dose combination product of bimatoprost and timolol marketed in europe , which if successful , should improve our commercialization prospects in that region . we believe , based on our preclinical studies and clinical trials to date , that roclatan , if approved , will be the only glaucoma product that covers the full spectrum of currently known iop-lowering moas , giving it the potential to provide a greater iop-lowering effect than any currently marketed glaucoma product . therefore , we believe that roclatan tm , if approved , could compete with both pga and non-pga therapies for patients requiring maximal iop lowering , including those with higher iops and those who present with significant disease progression despite currently available therapies . our stated objective is to build a major ophthalmic pharmaceutical company . in addition to our primary product candidates , rhopressa and roclatan , we continue to explore the impact of rhopressa on the diseased tm . we have issued several research updates on preclinical results demonstrating that rhopressa may have the potential for disease modification , including stopping and potentially reversing fibrosis in the tm , and also increasing perfusion in the trabecular outflow pathway thus increasing both drainage and the delivery of nutrients to the diseased tissue . we are also conducting ongoing research to evaluate injectable sustained release formulation technologies with the potential capability of delivering rhopressa internally in the eye over several months for the treatment of glaucoma . we are also evaluating possible uses of our existing proprietary portfolio of rho kinase inhibitors beyond glaucoma . story_separator_special_tag fair value measurements we record certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants . the fair value of our financial instruments , including cash and cash equivalents , short-term investments , other current assets , accounts payable and accrued expenses approximate their respective carrying values due to the short-term nature of these instruments . the carrying amounts of long-term investments represent their estimated fair values . the estimated fair value of the 2014 convertible notes was $ 209.6 million and $ 140.1 million as of december 31 , 2016 and 2015 , respectively . the increase in the estimated fair value of the 2014 convertible notes was primarily attributable to the change in the closing price of our common stock on december 31 , 2016 as compared to december 31 , 2015. stock-based compensation we recognize compensation costs related to stock options granted to employees ratably over the requisite service period , which in most cases is the vesting period of the award for employees , based on the estimated fair value of the awards on the date of grant . compensation expense for options granted to non-employees is determined as the fair value of consideration received or the fair value of the equity instruments issued , whichever is more reliably measured . the fair value of the awards granted to non-employees is re-measured each period until the related service is complete . compensation expense related to restricted stock awards is based on the market value of our common stock on the grant date and is expensed ratably over the vesting period . compensation expense for stock purchase rights under our employee stock purchase plan is measured and recognized on the date that we become obligated to issue shares of our common stock and is based on the difference between the fair value of our common stock and the purchase price on such date . stock-based compensation expense was $ 16.8 million , $ 12.9 million and $ 9.2 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . as of december 31 , 2016 , we had $ 29.0 million of unrecognized compensation expense . the intrinsic value of all stock options outstanding as of december 31 , 2016 was $ 123.6 million , of which $ 88.7 million and $ 34.9 million related to stock options that were vested and unvested , respectively , at that date . significant factors , assumptions and methodologies used in determining fair value determining the appropriate fair value measurement of stock-based awards requires the use of subjective assumptions . in the absence of a public trading market for our common stock prior to the completion of our ipo , we conducted periodic assessments of the valuation of our common stock . the determination of the fair value measurement of options using the black-scholes option pricing model is affected by our estimated common stock fair values as well as assumptions regarding a number of other subjective variables . these other variables include the expected term of the options , our expected stock price volatility over the expected term of the options , stock option exercise and cancellation behaviors , risk-free interest rates and expected dividends . we estimated the fair value of stock options at the grant date using the following assumptions : fair value of our common stock . for all stock options granted after the completion of our ipo , the fair value for our underlying common stock is determined using the closing price on the date of grant as reported on the nasdaq global market . for all stock options granted prior to the completion of our ipo , the fair value for our underlying common stock was determined by our board of directors in its sole discretion based on recommendations from management and taking into account advice and assistance provided by third-party valuation consultants engaged to assist us in connection with such valuations . volatility . we calculate expected volatility based on our historical volatility in combination with reported data for a selected group of similar publicly traded companies , or guideline peer group , for which the relevant historical information is available . we selected representative companies from the pharmaceutical industry with similar characteristics to us , including stage of product development and therapeutic focus . we will continue to use a combination of our historical volatility and the guideline peer group volatility information for the foreseeable future . expected term . we used the simplified method as prescribed by the sec staff accounting bulletin no . 107 , share-based payment , as we do not have sufficient historical exercise and post-vesting termination data to 72 provide a reasonable basis upon which to estimate the expected term of stock options granted to employees . the simplified method is based on the vesting period and the contractual term for each grant , or for each vesting-tranche for awards with graded vesting . the midpoint between the vesting date and the maximum contractual expiration date is used as the expected term under this method . risk-free rate . the risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected time to exercise . forfeiture . forfeitures are estimated such that we only recognize expense for the shares expected to vest , and adjustments are made if actual forfeitures differ from those estimates . we estimate our annual forfeiture rates based on our historical analysis of actual stock option forfeitures and our future expectations . dividend yield . except for a one-time cash dividend related to the spin-off of certain non-core intellectual property that occurred in 2012 , we have never declared or paid any

these statements represent projections , beliefs and expectations based on current circumstances and conditions and in light of recent events and trends , and you should not construe these statements either as assurances of performances or as promises of a given course of action . instead , various known and unknown factors are likely to cause our actual performance and management 's actions to vary , and the results of these variances may be both material and adverse . a list of the known material factors that may cause our results to vary , or may cause management to deviate from its current plans and expectations , is included in item 1a “ risk factors . ” the following discussion should also be read in conjunction with the consolidated financial statements and notes included herein . 23 going concern our independent registered public accounting firm has included an explanatory paragraph in their report on our financial statements included in this form 10-k which expressed doubt as to our ability to continue as a going concern . the accompanying financial statements have been prepared assuming that we will continue as a going concern , however , there can be no assurance that we will be able to do so . our recurring losses and difficulty in generating sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern , and our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . business overview nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters . our filters , which we call ultrafilters , are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate . because our ultrafilters capture contaminants as small as 0.005 microns in size , they eliminate a wide variety of bacteria , viruses , fungi , parasites , and endotoxins harmful to humans . all of our ultrafilters use proprietary hollow fiber technology . we believe the hollow fiber design allows our ultrafilters to be the only commercially available filters for healthcare applications that optimize the three elements critical to filter performance : · filtration – as low as 0.005 microns · flow rate – minimal disruption · filter life – up to 12 months by comparison , competitive filters on the market today are typically effective only to the 0.2 micron level and are prone to clog more quickly , thus reducing their useful lives . we were founded in 1997 by healthcare professionals affiliated with columbia university medical center/new york-presbyterian hospital to develop and commercialize an alternative method to hemodialysis ( hd ) . in 2009 , we began to extend our filtration technologies to meet the demand for liquid purification in other areas , in particular water purification . we have not begun to broadly market our mid-hdf system and plan to seek a commercialization partner in the u.s. the following trends , events and uncertainties may have a material impact on our potential sales , revenue and income from operations : · the market acceptance of our products in the united states and of our technologies and products in each of our target markets ; · our ability to effectively and efficiently manufacture , market and distribute our products ; · our ability to sell our products at competitive prices which exceed our per unit costs ; · the consolidation of dialysis clinics into larger clinical groups ; and · the current u.s. healthcare plan is to bundle reimbursement for dialysis treatment which may force dialysis clinics to change therapies due to financial reasons . to the extent we are unable to succeed in accomplishing the foregoing , our sales could be lower than expected and dramatically impair our ability to generate income from operations . recently adopted accounting pronouncements in june 2011 , the fasb issued asu no . 2011-05 , `` comprehensive income ( asc topic 220 ) : presentation of comprehensive income , `` ( `` asu 2011-05 `` ) which amends current comprehensive income guidance . this accounting update eliminates the option to present the components of other comprehensive income as part of the statement of shareholders ' equity . instead , we must report comprehensive income in either a single continuous statement of comprehensive income which contains two sections , net income and other comprehensive income , or in two separate but consecutive statements . asu 2011-05 will be effective for public companies during the interim and annual periods beginning after dec. 15 , 2011 with early adoption permitted . we adopted this guidance as of january 1 , 2012 and since this relates to presentation only , the adoption of this guidance did not have any other effect on our consolidated financial statements . 24 critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of financial statements in accordance with generally accepted accounting principles in the united states requires application of management 's subjective judgments , often requiring the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . our actual results may differ substantially from these estimates under different assumptions or conditions . story_separator_special_tag we anticipate that our annual results of operations will be impacted for the foreseeable future by several factors including the progress and timing of expenditures related to our research and development efforts , marketing expenses related to product launches , timing of regulatory approval of our various products and market acceptance of our products . due to these fluctuations , we believe that the period to period comparisons of our operating results are not a good indication of our future performance . the fiscal year ended december 31 , 2012 compared to the fiscal year ended december 31 , 2011 revenues total revenues for the year ended december 31 , 2012 were approximately $ 1,807,000 compared to approximately $ 2,214,000 for the year ended december 31 , 2011. total revenues decreased approximately $ 407,000 , or 18 % as a result of decreases of approximately $ 733,000 related to our md filters in europe , $ 346,000 related to the office of naval research , whose contract ended as of march 2012 , and approximately $ 33,000 related to the steris project . these decreases were partially offset by an increase of approximately $ 315,000 related to the bellco license agreement as well as a 63 % increase in water filter sales , which increased from $ 620,000 in 2011 to $ 1,010,000 in 2012. revenues were not significantly impacted by inflation or changing prices for the years ended december 31 , 2012 or 2011. cost of goods sold cost of goods sold was approximately $ 737,000 for the year ended december 31 , 2012 compared to approximately $ 1,346,000 for the year ended december 31 , 2011. the decrease of approximately $ 609,000 or 45 % , in cost of goods sold is primarily related to a $ 583,000 reduction in cost of goods sold of our md filters in europe . additional decreases include approximately $ 208,000 related to the office of naval research , approximately $ 15,000 related to dsu sales for the year ended december 31 , 2012 compared to the same period in 2011 and a decrease of approximately $ 29,000 related to the steris project . these decreases were partially offset by an increase in cost of goods sold of approximately $ 226,000 related to filters sold to the military during the year ended december 31 , 2012 , a 100 % increase compared to the same period in 2011. cost of goods sold includes increases in inventory reserves of approximately $ 82,000 and $ 218,000 for the years ended december 31 , 2012 and 2011 , respectively . research and development research and development expenses were approximately $ 632,000 and $ 451,000 respectively , for the years ended december 31 , 2012 and december 31 , 2011. this increase of approximately $ 181,000 or 40 % is primarily due to an increase in research and development personnel related costs of approximately $ 136,000 during the year ended december 31 , 2012 compared to the year ended december 31 , 2011. depreciation and amortization expense depreciation and amortization expense was approximately $ 151,000 for the year ended december 31 , 2012 compared to approximately $ 91,000 for the year ended december 31 , 2011 , an increase of 66 % . the increase of approximately $ 60,000 is primarily due to amortization of approximately $ 142,000 related to the asset recognized in conjunction with the license and supply agreement offset partially by several assets having been fully depreciated as of year-end 2011 resulting in no depreciation expense for those assets during the year ended december 31 , 2012 . 26 selling , general and administrative expenses selling , general and administrative expenses were approximately $ 3,620,000 for the year ended december 31 , 2012 compared to approximately $ 2,636,000 for the year ended december 31 , 2011 , an increase of $ 984,000 or 37 % . the increase is primarily due to $ 489,000 of salary expense , an increase in legal expenses of approximately $ 330,000 , an increase in stock compensation expense of $ 159,000 , and $ 171,000 of travel related expenses during the year ended december 31 , 2012 compared to the year ended december 30 , 2011. these increases were partially offset by a reduction in bonus expense of approximately $ 165,000 for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. interest income interest income was approximately $ 2,000 for the year ended december 31 , 2012 compared to approximately $ 4,000 for the year ended december 31 , 2011. the decrease of $ 2,000 reflects the impact of having less cash on hand in 2012 compared to 2011. interest expense interest expense for the year ended december 31 , 2012 was $ 0 compared to $ 12,000 for the year ended december 31 , 2011. interest expense for the year ended december 31 , 2011 relates to interest accrued on the $ 500,000 senior secured note issued to lambda investors llc , which was paid in march 2011. amortization of debt issuance costs we account for debt issuance costs in accordance with asc 835 , which requires that these costs be reported in the balance sheet as deferred charges and amortized over the term of the associated debt . amortization of debt issuance costs of $ 0 and $ 40,000 for the years ended december 31 , 2012 and 2011 , respectively , were associated with the senior secured note issued to lambda investors llc . the note was paid in march 2011 and these capitalized costs were fully amortized by the first quarter of 2011. other income/expense other income in the amount of approximately $ 69,000 for the year ended december 31 , 2012 was primarily due to approximately $ 55,000 arising from the sale of fully depreciated manufacturing equipment sold to medica in october 2012. in addition , approximately $ 18,000 was related to the write-offs of

liquidity and capital resources our future liquidity sources and requirements will depend on many factors , including : · receipt of scheduled payments per the bellco s.r.l . license agreement ; · the availability of additional financing , through the sale of equity securities or otherwise , on commercially reasonable terms or at all ; · the market acceptance of our products , and our ability to effectively and efficiently produce and market our products ; · the continued progress in and the costs of clinical studies and other research and development programs ; · the costs involved in filing and enforcing patent claims and the status of competitive products ; and · the cost of litigation , including potential patent litigation and any other actual or threatened litigation . 27 we expect to put our current capital resources to the following uses : · for the marketing and sales of our water-filtration products ; · to pursue business development opportunities with respect to our chronic renal treatment system ; and · for working capital purposes . in response to liquidity issues experienced with our auction rate securities , and in order to facilitate greater liquidity in our short-term investments , on march 27 , 2008 , our board of directors adopted an investment , risk management and accounting policy . such policy limits the types of instruments or securities in which we may invest our excess funds in the future to : u.s. treasury securities ; certificates of deposit issued by money center banks ; money funds by money center banks ; repurchase agreements ; and eurodollar certificates of deposit issued by money center banks . this policy provides that our primary objectives for investments shall be the preservation of principal and achieving sufficient liquidity to meet our forecasted cash requirements . in addition , provided that such primary objectives are met , we may seek to achieve the maximum yield available under such constraints . on march 10 , 2011 we completed our rights offering and private placement that together resulted in gross proceeds of approximately $ 3.2 million to us .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 future liquidity sources and requirements will depend on many factors , including : · receipt of scheduled payments per the bellco s.r.l . license agreement ; · the availability of additional financing , through the sale of equity securities or otherwise , on commercially reasonable terms or at all ; · the market acceptance of our products , and our ability to effectively and efficiently produce and market our products ; · the continued progress in and the costs of clinical studies and other research and development programs ; · the costs involved in filing and enforcing patent claims and the status of competitive products ; and · the cost of litigation , including potential patent litigation and any other actual or threatened litigation . 27 we expect to put our current capital resources to the following uses : · for the marketing and sales of our water-filtration products ; · to pursue business development opportunities with respect to our chronic renal treatment system ; and · for working capital purposes . in response to liquidity issues experienced with our auction rate securities , and in order to facilitate greater liquidity in our short-term investments , on march 27 , 2008 , our board of directors adopted an investment , risk management and accounting policy . such policy limits the types of instruments or securities in which we may invest our excess funds in the future to : u.s. treasury securities ; certificates of deposit issued by money center banks ; money funds by money center banks ; repurchase agreements ; and eurodollar certificates of deposit issued by money center banks . this policy provides that our primary objectives for investments shall be the preservation of principal and achieving sufficient liquidity to meet our forecasted cash requirements . in addition , provided that such primary objectives are met , we may seek to achieve the maximum yield available under such constraints . on march 10 , 2011 we completed our rights offering and private placement that together resulted in gross proceeds of approximately $ 3.2 million to us . ``` Suspicious Activity Report : these statements represent projections , beliefs and expectations based on current circumstances and conditions and in light of recent events and trends , and you should not construe these statements either as assurances of performances or as promises of a given course of action . instead , various known and unknown factors are likely to cause our actual performance and management 's actions to vary , and the results of these variances may be both material and adverse . a list of the known material factors that may cause our results to vary , or may cause management to deviate from its current plans and expectations , is included in item 1a “ risk factors . ” the following discussion should also be read in conjunction with the consolidated financial statements and notes included herein . 23 going concern our independent registered public accounting firm has included an explanatory paragraph in their report on our financial statements included in this form 10-k which expressed doubt as to our ability to continue as a going concern . the accompanying financial statements have been prepared assuming that we will continue as a going concern , however , there can be no assurance that we will be able to do so . our recurring losses and difficulty in generating sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern , and our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . business overview nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters . our filters , which we call ultrafilters , are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate . because our ultrafilters capture contaminants as small as 0.005 microns in size , they eliminate a wide variety of bacteria , viruses , fungi , parasites , and endotoxins harmful to humans . all of our ultrafilters use proprietary hollow fiber technology . we believe the hollow fiber design allows our ultrafilters to be the only commercially available filters for healthcare applications that optimize the three elements critical to filter performance : · filtration – as low as 0.005 microns · flow rate – minimal disruption · filter life – up to 12 months by comparison , competitive filters on the market today are typically effective only to the 0.2 micron level and are prone to clog more quickly , thus reducing their useful lives . we were founded in 1997 by healthcare professionals affiliated with columbia university medical center/new york-presbyterian hospital to develop and commercialize an alternative method to hemodialysis ( hd ) . in 2009 , we began to extend our filtration technologies to meet the demand for liquid purification in other areas , in particular water purification . we have not begun to broadly market our mid-hdf system and plan to seek a commercialization partner in the u.s. the following trends , events and uncertainties may have a material impact on our potential sales , revenue and income from operations : · the market acceptance of our products in the united states and of our technologies and products in each of our target markets ; · our ability to effectively and efficiently manufacture , market and distribute our products ; · our ability to sell our products at competitive prices which exceed our per unit costs ; · the consolidation of dialysis clinics into larger clinical groups ; and · the current u.s. healthcare plan is to bundle reimbursement for dialysis treatment which may force dialysis clinics to change therapies due to financial reasons . to the extent we are unable to succeed in accomplishing the foregoing , our sales could be lower than expected and dramatically impair our ability to generate income from operations . recently adopted accounting pronouncements in june 2011 , the fasb issued asu no . 2011-05 , `` comprehensive income ( asc topic 220 ) : presentation of comprehensive income , `` ( `` asu 2011-05 `` ) which amends current comprehensive income guidance . this accounting update eliminates the option to present the components of other comprehensive income as part of the statement of shareholders ' equity . instead , we must report comprehensive income in either a single continuous statement of comprehensive income which contains two sections , net income and other comprehensive income , or in two separate but consecutive statements . asu 2011-05 will be effective for public companies during the interim and annual periods beginning after dec. 15 , 2011 with early adoption permitted . we adopted this guidance as of january 1 , 2012 and since this relates to presentation only , the adoption of this guidance did not have any other effect on our consolidated financial statements . 24 critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of financial statements in accordance with generally accepted accounting principles in the united states requires application of management 's subjective judgments , often requiring the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . our actual results may differ substantially from these estimates under different assumptions or conditions . story_separator_special_tag we anticipate that our annual results of operations will be impacted for the foreseeable future by several factors including the progress and timing of expenditures related to our research and development efforts , marketing expenses related to product launches , timing of regulatory approval of our various products and market acceptance of our products . due to these fluctuations , we believe that the period to period comparisons of our operating results are not a good indication of our future performance . the fiscal year ended december 31 , 2012 compared to the fiscal year ended december 31 , 2011 revenues total revenues for the year ended december 31 , 2012 were approximately $ 1,807,000 compared to approximately $ 2,214,000 for the year ended december 31 , 2011. total revenues decreased approximately $ 407,000 , or 18 % as a result of decreases of approximately $ 733,000 related to our md filters in europe , $ 346,000 related to the office of naval research , whose contract ended as of march 2012 , and approximately $ 33,000 related to the steris project . these decreases were partially offset by an increase of approximately $ 315,000 related to the bellco license agreement as well as a 63 % increase in water filter sales , which increased from $ 620,000 in 2011 to $ 1,010,000 in 2012. revenues were not significantly impacted by inflation or changing prices for the years ended december 31 , 2012 or 2011. cost of goods sold cost of goods sold was approximately $ 737,000 for the year ended december 31 , 2012 compared to approximately $ 1,346,000 for the year ended december 31 , 2011. the decrease of approximately $ 609,000 or 45 % , in cost of goods sold is primarily related to a $ 583,000 reduction in cost of goods sold of our md filters in europe . additional decreases include approximately $ 208,000 related to the office of naval research , approximately $ 15,000 related to dsu sales for the year ended december 31 , 2012 compared to the same period in 2011 and a decrease of approximately $ 29,000 related to the steris project . these decreases were partially offset by an increase in cost of goods sold of approximately $ 226,000 related to filters sold to the military during the year ended december 31 , 2012 , a 100 % increase compared to the same period in 2011. cost of goods sold includes increases in inventory reserves of approximately $ 82,000 and $ 218,000 for the years ended december 31 , 2012 and 2011 , respectively . research and development research and development expenses were approximately $ 632,000 and $ 451,000 respectively , for the years ended december 31 , 2012 and december 31 , 2011. this increase of approximately $ 181,000 or 40 % is primarily due to an increase in research and development personnel related costs of approximately $ 136,000 during the year ended december 31 , 2012 compared to the year ended december 31 , 2011. depreciation and amortization expense depreciation and amortization expense was approximately $ 151,000 for the year ended december 31 , 2012 compared to approximately $ 91,000 for the year ended december 31 , 2011 , an increase of 66 % . the increase of approximately $ 60,000 is primarily due to amortization of approximately $ 142,000 related to the asset recognized in conjunction with the license and supply agreement offset partially by several assets having been fully depreciated as of year-end 2011 resulting in no depreciation expense for those assets during the year ended december 31 , 2012 . 26 selling , general and administrative expenses selling , general and administrative expenses were approximately $ 3,620,000 for the year ended december 31 , 2012 compared to approximately $ 2,636,000 for the year ended december 31 , 2011 , an increase of $ 984,000 or 37 % . the increase is primarily due to $ 489,000 of salary expense , an increase in legal expenses of approximately $ 330,000 , an increase in stock compensation expense of $ 159,000 , and $ 171,000 of travel related expenses during the year ended december 31 , 2012 compared to the year ended december 30 , 2011. these increases were partially offset by a reduction in bonus expense of approximately $ 165,000 for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. interest income interest income was approximately $ 2,000 for the year ended december 31 , 2012 compared to approximately $ 4,000 for the year ended december 31 , 2011. the decrease of $ 2,000 reflects the impact of having less cash on hand in 2012 compared to 2011. interest expense interest expense for the year ended december 31 , 2012 was $ 0 compared to $ 12,000 for the year ended december 31 , 2011. interest expense for the year ended december 31 , 2011 relates to interest accrued on the $ 500,000 senior secured note issued to lambda investors llc , which was paid in march 2011. amortization of debt issuance costs we account for debt issuance costs in accordance with asc 835 , which requires that these costs be reported in the balance sheet as deferred charges and amortized over the term of the associated debt . amortization of debt issuance costs of $ 0 and $ 40,000 for the years ended december 31 , 2012 and 2011 , respectively , were associated with the senior secured note issued to lambda investors llc . the note was paid in march 2011 and these capitalized costs were fully amortized by the first quarter of 2011. other income/expense other income in the amount of approximately $ 69,000 for the year ended december 31 , 2012 was primarily due to approximately $ 55,000 arising from the sale of fully depreciated manufacturing equipment sold to medica in october 2012. in addition , approximately $ 18,000 was related to the write-offs of

the three month simple average price per pound , as published by the american market indexes , were as follows : replace_table_token_4_th due to differences in the timing of passing through resin cost changes to our customers on escalator/de-escalator programs , segments are negatively impacted in the short term when plastic resin costs increase and are positively impacted in the short term when plastic resin costs decrease . this timing lag in passing through raw material cost changes could affect our results as plastic resin costs fluctuate . outlook . the company is impacted by general economic and industrial growth , plastic resin availability and affordability , and general industrial production . our business has both geographic and end-market diversity , which reduces the effect of any one of these factors on our overall performance . our results are affected by our ability to pass through raw material cost changes to our customers , improve manufacturing productivity and adapt to volume changes of our customers . we believe there are long term growth opportunities within the health , pharmaceuticals , personal care and food packaging markets existing outside of north america , especially in asia , where expected per capita consumption increases should result in organic market growth . in addition , while we continue to believe that long term dynamics of the resin markets will be an advantage to berry , the short term challenges to regional transportation systems and higher raw material prices for certain inputs as a result of recent storm disruptions , as well as macroeconomic pressures in south america could create modest short-term headwinds for early fiscal 2018. for fiscal 2018 , we project cash flow from operations and adjusted free cash flow of $ 965 million and $ 610 million , respectively . while we expect the recent raw material inflation to result in increases to working capital in the beginning of fiscal 2018 , our annual projections assume flat working capital as we believe raw materials will normalize as the year progresses . additionally , our capital spending and cash interest costs are forecasted to be $ 320 million and $ 250 million , respectively . within our adjusted free cash flow guidance , we are also assuming cash taxes to be $ 210 million , including a $ 35 million payment in the first quarter under the company 's tax receivable agreement , along with other cash uses of $ 40 million related to items such as acquisition integration expenses and costs to achieve synergies . these estimates and assumptions do not include our most recent definitive agreement to acquire clopay . for the definition of adjusted free cash flow and further information related to adjusted free cash flow as a non-gaap financial measure , see `` liquidity and capital resources . `` recent acquisitions our acquisition strategy is focused on improving our long-term financial performance , enhancing our market positions , and expanding our existing and complementary product lines . we seek to obtain businesses for attractive post-synergy multiples , creating value for our stockholders from synergy realization , leveraging the acquired products across our customer base , creating new platforms for future growth , and assuming best practices from the businesses we acquire . the company has included the expected benefits of acquisition integrations and restructuring plans within our unrealized synergies , which are in turn recognized in earnings after an acquisition has been fully integrated or the restructuring plan is completed . while the expected benefits on earnings is estimated at the commencement of each transaction , once the execution of the plan and integration occur , we are generally unable to accurately estimate or track what the ultimate effects have been due to system integrations and movements of activities to multiple facilities . as historical business combinations and restructuring plans have not allowed us to accurately separate realized synergies compared to what was initially identified , we measure the synergy realization based on the overall segment profitability post integration . clopay plastic products company , inc. in november 2017 , the company entered into a definitive purchase agreement to acquire all of the outstanding shares of clopay plastic products company , inc. ( `` clopay `` ) for a purchase price of approximately $ 475 million which is preliminary and subject to adjustment and is intended to be funded with existing liquidity or an additional debt offering . clopay manufactures printed breathable films and is an innovator in the development of elastic films and laminates with product offerings uniquely designed for applications used in a number of markets including : hygiene , healthcare , construction and industrial protective apparel . clopay reported $ 461 million in sales for its fiscal year ended september 30 , 2017 and will be operated within the health , hygiene and specialties segment upon completion of the transaction . the completion of the clopay acquisition is subject to certain closing conditions and the terms and conditions of the purchase agreement . the company expects to realize annual cost synergies of approximately $ 20 million from the completion of the clopay transaction . 13 aep industries inc. in january 2017 , the company acquired aep industries inc. ( `` aep `` ) for a purchase price of $ 791 million , net of cash acquired . a portion of the purchase price consisted of issuing 6.4 million of berry common shares which were valued at $ 324 million at the time of closing . aep manufactures and markets an extensive and diverse line of polyethylene and polyvinyl chloride flexible plastic packaging products with consumer , industrial , and agricultural applications . the acquired business is operated in our engineered materials segment . story_separator_special_tag currency translation losses are primarily related to non-u.s. subsidiaries with a functional currency other than the u.s. dollar whereby assets and liabilities are translated from the respective functional currency into u.s. dollars using period-end exchange rates . the change in currency translation losses were primarily attributed to locations utilizing the euro , pound sterling , and brazilian real as their functional currency . unrealized losses on pension plans in the current period were primarily attributable to actuarial losses from the reduction in the underlying discount rate and application of the new mortality tables . as part of the overall risk management , the company uses derivative instruments to reduce exposure to changes in interest rates attributed to the company 's floating-rate borrowings and records changes to the fair value of these instruments in accumulated other comprehensive income . the change in fair value of these instruments in fiscal 2016 versus fiscal 2015 is primarily attributed to a change in the forward interest curve between measurement dates . story_separator_special_tag any other measure determined in accordance with gaap . we use adjusted free cash flow as a measure of liquidity because it assists us in assessing our company 's ability to fund its growth through its generation of cash , and believe it is useful to investors for such purpose . in addition , adjusted free cash flow and similar measures are widely used by investors , securities analysts and other interested parties in our industry to measure a company 's liquidity . adjusted free cash flow may be calculated differently by other companies , including other companies in our industry , limiting its usefulness as a comparative measure . 19 liquidity outlook at the end of fiscal 2017 , our cash balance was $ 306 million , of which approximately 92 % was located outside the u.s. the company has deemed cash located outside the u.s. to be indefinitely reinvested and will use for future international expansion . we believe our existing u.s. based cash and cash flow from u.s. operations , together with available borrowings under our senior secured credit facilities , will be adequate to meet our liquidity needs over the next twelve months . we do not expect our free cash flow to be sufficient to cover all long-term debt obligations and intend to refinance these obligations prior to maturity . however , we can not predict our future results of operations and our ability to meet our obligations involves numerous risks and uncertainties , including , but not limited to , those described in the `` risk factors `` section in this form 10-k. critical accounting policies and estimates we disclose those accounting policies that we consider to be significant in determining the amounts to be utilized for communicating our consolidated financial position , results of operations and cash flows in the first note to our consolidated financial statements included elsewhere herein . our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of financial statements in conformity with these principles requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes . our estimates and judgments are based on historical experience and on various other factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . revenue recognition . revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer ( either when the products reach the free-on-board shipping point or destination depending on the contractual terms ) , there is persuasive evidence of an arrangement , the sales price is fixed and determinable and collection is reasonably assured . accrued rebates . we offer various rebates to our customers in exchange for their purchases . these rebate programs are individually negotiated with our customers and contain a variety of different terms and conditions . certain rebates are calculated as flat percentages of purchases , while others include tiered volume incentives . these rebates may be payable monthly , quarterly , or annually . the calculation of the accrued rebate balance involves significant management estimates , especially where the terms of the rebate involve tiered volume levels that require estimates of expected annual sales . these provisions are based on estimates derived from current program requirements and historical experience . we use all available information when calculating these reserves . our accrual for customer rebates was $ 58 million and $ 54 million as of the end of fiscal 2017 and 2016 , respectively . impairments of long-lived assets . in accordance with the guidance from the fasb for the impairment or disposal of long-lived assets we review long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amounts . the impairment loss is measured by comparing the fair value of the asset to its carrying amount . we recognized non-cash asset impairment of long-lived assets of $ 2 million , $ 3 million and $ 2 million in fiscal 2017 , 2016 and 2015 , respectively . goodwill and other indefinite lived intangible assets . we evaluate goodwill using a qualitative assessment to determine whether it is more likely than not that the fair value of any reporting unit is less that the carrying amount . if we determine that the fair value of the reporting unit may be less than its carrying amount , we evaluate the goodwill of that reporting unit using the one-step impairment test . otherwise ,

liquidity and capital resources term loans in january 2017 , in order to finance the aep acquisition , the company entered into an incremental assumption agreement to increase the commitments under the existing term loan credit agreement by $ 500 million , maturing in january 2024. based on market conditions , from time to time , the company may reprice existing term loans in order to lower interest rates . as a result of repricing activities , each of the company 's term loans currently bear interest at libor plus 2.25 % with a 0 % libor floor . all other terms remain unchanged ( see footnote 3 to the notes to the consolidated financial statements incorporated herein ) . senior secured credit facility we manage our global cash requirements considering ( i ) available funds among the many subsidiaries through which we conduct business , ( ii ) the geographic location of our liquidity needs , and ( iii ) the cost to access international cash balances . in march 2017 , we entered into an agreement to increase our asset-based revolving line of credit that matures in may 2020 by $ 100 million to $ 750 million . at the end of fiscal 2017 , there was no outstanding balance on the revolving credit facility .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources term loans in january 2017 , in order to finance the aep acquisition , the company entered into an incremental assumption agreement to increase the commitments under the existing term loan credit agreement by $ 500 million , maturing in january 2024. based on market conditions , from time to time , the company may reprice existing term loans in order to lower interest rates . as a result of repricing activities , each of the company 's term loans currently bear interest at libor plus 2.25 % with a 0 % libor floor . all other terms remain unchanged ( see footnote 3 to the notes to the consolidated financial statements incorporated herein ) . senior secured credit facility we manage our global cash requirements considering ( i ) available funds among the many subsidiaries through which we conduct business , ( ii ) the geographic location of our liquidity needs , and ( iii ) the cost to access international cash balances . in march 2017 , we entered into an agreement to increase our asset-based revolving line of credit that matures in may 2020 by $ 100 million to $ 750 million . at the end of fiscal 2017 , there was no outstanding balance on the revolving credit facility . ``` Suspicious Activity Report : the three month simple average price per pound , as published by the american market indexes , were as follows : replace_table_token_4_th due to differences in the timing of passing through resin cost changes to our customers on escalator/de-escalator programs , segments are negatively impacted in the short term when plastic resin costs increase and are positively impacted in the short term when plastic resin costs decrease . this timing lag in passing through raw material cost changes could affect our results as plastic resin costs fluctuate . outlook . the company is impacted by general economic and industrial growth , plastic resin availability and affordability , and general industrial production . our business has both geographic and end-market diversity , which reduces the effect of any one of these factors on our overall performance . our results are affected by our ability to pass through raw material cost changes to our customers , improve manufacturing productivity and adapt to volume changes of our customers . we believe there are long term growth opportunities within the health , pharmaceuticals , personal care and food packaging markets existing outside of north america , especially in asia , where expected per capita consumption increases should result in organic market growth . in addition , while we continue to believe that long term dynamics of the resin markets will be an advantage to berry , the short term challenges to regional transportation systems and higher raw material prices for certain inputs as a result of recent storm disruptions , as well as macroeconomic pressures in south america could create modest short-term headwinds for early fiscal 2018. for fiscal 2018 , we project cash flow from operations and adjusted free cash flow of $ 965 million and $ 610 million , respectively . while we expect the recent raw material inflation to result in increases to working capital in the beginning of fiscal 2018 , our annual projections assume flat working capital as we believe raw materials will normalize as the year progresses . additionally , our capital spending and cash interest costs are forecasted to be $ 320 million and $ 250 million , respectively . within our adjusted free cash flow guidance , we are also assuming cash taxes to be $ 210 million , including a $ 35 million payment in the first quarter under the company 's tax receivable agreement , along with other cash uses of $ 40 million related to items such as acquisition integration expenses and costs to achieve synergies . these estimates and assumptions do not include our most recent definitive agreement to acquire clopay . for the definition of adjusted free cash flow and further information related to adjusted free cash flow as a non-gaap financial measure , see `` liquidity and capital resources . `` recent acquisitions our acquisition strategy is focused on improving our long-term financial performance , enhancing our market positions , and expanding our existing and complementary product lines . we seek to obtain businesses for attractive post-synergy multiples , creating value for our stockholders from synergy realization , leveraging the acquired products across our customer base , creating new platforms for future growth , and assuming best practices from the businesses we acquire . the company has included the expected benefits of acquisition integrations and restructuring plans within our unrealized synergies , which are in turn recognized in earnings after an acquisition has been fully integrated or the restructuring plan is completed . while the expected benefits on earnings is estimated at the commencement of each transaction , once the execution of the plan and integration occur , we are generally unable to accurately estimate or track what the ultimate effects have been due to system integrations and movements of activities to multiple facilities . as historical business combinations and restructuring plans have not allowed us to accurately separate realized synergies compared to what was initially identified , we measure the synergy realization based on the overall segment profitability post integration . clopay plastic products company , inc. in november 2017 , the company entered into a definitive purchase agreement to acquire all of the outstanding shares of clopay plastic products company , inc. ( `` clopay `` ) for a purchase price of approximately $ 475 million which is preliminary and subject to adjustment and is intended to be funded with existing liquidity or an additional debt offering . clopay manufactures printed breathable films and is an innovator in the development of elastic films and laminates with product offerings uniquely designed for applications used in a number of markets including : hygiene , healthcare , construction and industrial protective apparel . clopay reported $ 461 million in sales for its fiscal year ended september 30 , 2017 and will be operated within the health , hygiene and specialties segment upon completion of the transaction . the completion of the clopay acquisition is subject to certain closing conditions and the terms and conditions of the purchase agreement . the company expects to realize annual cost synergies of approximately $ 20 million from the completion of the clopay transaction . 13 aep industries inc. in january 2017 , the company acquired aep industries inc. ( `` aep `` ) for a purchase price of $ 791 million , net of cash acquired . a portion of the purchase price consisted of issuing 6.4 million of berry common shares which were valued at $ 324 million at the time of closing . aep manufactures and markets an extensive and diverse line of polyethylene and polyvinyl chloride flexible plastic packaging products with consumer , industrial , and agricultural applications . the acquired business is operated in our engineered materials segment . story_separator_special_tag currency translation losses are primarily related to non-u.s. subsidiaries with a functional currency other than the u.s. dollar whereby assets and liabilities are translated from the respective functional currency into u.s. dollars using period-end exchange rates . the change in currency translation losses were primarily attributed to locations utilizing the euro , pound sterling , and brazilian real as their functional currency . unrealized losses on pension plans in the current period were primarily attributable to actuarial losses from the reduction in the underlying discount rate and application of the new mortality tables . as part of the overall risk management , the company uses derivative instruments to reduce exposure to changes in interest rates attributed to the company 's floating-rate borrowings and records changes to the fair value of these instruments in accumulated other comprehensive income . the change in fair value of these instruments in fiscal 2016 versus fiscal 2015 is primarily attributed to a change in the forward interest curve between measurement dates . story_separator_special_tag any other measure determined in accordance with gaap . we use adjusted free cash flow as a measure of liquidity because it assists us in assessing our company 's ability to fund its growth through its generation of cash , and believe it is useful to investors for such purpose . in addition , adjusted free cash flow and similar measures are widely used by investors , securities analysts and other interested parties in our industry to measure a company 's liquidity . adjusted free cash flow may be calculated differently by other companies , including other companies in our industry , limiting its usefulness as a comparative measure . 19 liquidity outlook at the end of fiscal 2017 , our cash balance was $ 306 million , of which approximately 92 % was located outside the u.s. the company has deemed cash located outside the u.s. to be indefinitely reinvested and will use for future international expansion . we believe our existing u.s. based cash and cash flow from u.s. operations , together with available borrowings under our senior secured credit facilities , will be adequate to meet our liquidity needs over the next twelve months . we do not expect our free cash flow to be sufficient to cover all long-term debt obligations and intend to refinance these obligations prior to maturity . however , we can not predict our future results of operations and our ability to meet our obligations involves numerous risks and uncertainties , including , but not limited to , those described in the `` risk factors `` section in this form 10-k. critical accounting policies and estimates we disclose those accounting policies that we consider to be significant in determining the amounts to be utilized for communicating our consolidated financial position , results of operations and cash flows in the first note to our consolidated financial statements included elsewhere herein . our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of financial statements in conformity with these principles requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes . our estimates and judgments are based on historical experience and on various other factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . revenue recognition . revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer ( either when the products reach the free-on-board shipping point or destination depending on the contractual terms ) , there is persuasive evidence of an arrangement , the sales price is fixed and determinable and collection is reasonably assured . accrued rebates . we offer various rebates to our customers in exchange for their purchases . these rebate programs are individually negotiated with our customers and contain a variety of different terms and conditions . certain rebates are calculated as flat percentages of purchases , while others include tiered volume incentives . these rebates may be payable monthly , quarterly , or annually . the calculation of the accrued rebate balance involves significant management estimates , especially where the terms of the rebate involve tiered volume levels that require estimates of expected annual sales . these provisions are based on estimates derived from current program requirements and historical experience . we use all available information when calculating these reserves . our accrual for customer rebates was $ 58 million and $ 54 million as of the end of fiscal 2017 and 2016 , respectively . impairments of long-lived assets . in accordance with the guidance from the fasb for the impairment or disposal of long-lived assets we review long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amounts . the impairment loss is measured by comparing the fair value of the asset to its carrying amount . we recognized non-cash asset impairment of long-lived assets of $ 2 million , $ 3 million and $ 2 million in fiscal 2017 , 2016 and 2015 , respectively . goodwill and other indefinite lived intangible assets . we evaluate goodwill using a qualitative assessment to determine whether it is more likely than not that the fair value of any reporting unit is less that the carrying amount . if we determine that the fair value of the reporting unit may be less than its carrying amount , we evaluate the goodwill of that reporting unit using the one-step impairment test . otherwise ,

in such reclassification , we take into consideration of the following factors , but are not limited to ; npl and or classified status , non-accrual status , and days delinquent ; possibility of rehabilitation or workout for the near future and long term earning capability as an asset ; number of times the note was modified ; overall debt coverage ratio ; whether the debt is on troubled debt restructure status ; the location of the collateral ; and the borrower 's overall financial condition . the fair value of nonperforming loans held for sale is generally based upon the recent appraisal , quotes , bids or sales contract price which approximate the fair value . nonperforming loans held for sale are recorded at the lower of cost or fair value . investment securities the classification and accounting for investment securities are discussed in more detail in “notes to consolidated financial statements , note 2 – summary of significant accounting policies” presented elsewhere herein . under fasb asc 320 , “investment , ” investment securities generally must be classified as held-to-maturity , available-for-sale or trading . the appropriate classification is based partially on our ability to hold the securities to maturity and largely on management 's intentions with respect to either holding or selling the securities . the classification of investment securities is significant since it directly impacts the accounting for unrealized gains and losses on securities . unrealized gains and losses on trading securities flow directly through earnings during the periods in which they arise . investment securities that are classified as held-to-maturity are recorded at amortized cost . unrealized gains and losses on available-for-sale securities are recorded as a separate component of stockholders ' equity ( accumulated other comprehensive income or loss ) and do not affect earnings until realized or are deemed to be other-than-temporarily impaired . the fair values of investment securities are generally determined by reference to the average of at least two quoted market prices obtained from independent external brokers or independent external pricing service providers who have experience in valuing these securities . in obtaining such valuation information from third parties , we have evaluated the methodologies used to develop the resulting fair values . we perform a monthly analysis on the broker quotes received from third parties to ensure that the prices represent a reasonable estimate of the fair value . the procedures include , but are not limited to , initial and on-going review of third party pricing methodologies , review of pricing trends , and monitoring of trading volumes . we are obligated to assess , at each reporting date , whether there is an other-than-temporary impairment ( “otti” ) to our investment securities . such impairment must be recognized in current earnings rather than in other comprehensive income . the determination of otti is a subjective process , requiring the use of judgments and assumptions . we examine all individual securities that are in an unrealized loss position at each reporting date for otti . specific investment-related factors we examine to assess impairment include the nature of the investment , severity and duration of the loss , the probability that we will be unable to collect all amounts due , an analysis of 56 the issuers of the securities and whether there has been any cause for default on the securities and any change in the rating of the securities by the various rating agencies . additionally , we evaluate whether the creditworthiness of the issuer calls the realization of contractual cash flows into question . our impairment assessment also takes into consideration factor that we do not intend to sell the security and it is more likely than not it will be required to sell the security prior to recovery of its amortized cost basis of the security . if the decline in fair value is judged to be other than temporary , the security is written down to fair value which becomes the new cost basis and an impairment loss is recognized . for debt securities , the classification of otti depends on whether we intend to sell the security or it more likely than not will be required to sell the security before recovery of its costs basis , and on the nature of the impairment . if we intend to sell a security or it is more likely than not it will be required to sell a security prior to recovery of its cost basis , the entire amount of impairment is recognized in earnings . if we do not intend to sell the security or it is more likely than not it will be required to sell the security prior to recovery of its cost basis , the credit loss component of impairment is recognized in earnings and impairment associated with non-credit factors , such as market liquidity , is recognized in other comprehensive income net of tax . a credit loss is the difference between the cost basis of the security and the present value of cash flows expected to be collected , discounted at the security 's effective interest rate at the date of acquisition . the cost basis of an other-than-temporarily impaired security is written down by the amount of impairment recognized in earnings . the new cost basis is not adjusted for subsequent recoveries in fair value . management does not believe that there are any investment securities , other than those identified in the current and previous periods , that are deemed other-than-temporarily impaired as of december 31 , 2011 and 2010. investment securities are discussed in more detail in “notes to consolidated financial statements , note 4 – investment securities” presented elsewhere herein . income taxes we provide for income taxes using the asset and liability method . story_separator_special_tag net charge-offs decreased by $ 0.7 million , or 0.6 percent , from $ 122.6 million for the year ended december 31 , 2009 to $ 121.9 million for the year ended december 31 , 2010. non-performing loans decreased from $ 219.1 million , or 7.77 percent of total gross loans , as of december 31 , 2009 to $ 169.0 million , or 7.45 percent of total gross loans , as of december 31 , 2010. non-interest income we earn non-interest income from five major sources : service charges on deposit accounts , insurance commissions , remittance fees , fees generated from international trade finance and other service changes . in addition , we sell certain assets primarily for risk and liquidity management purposes . the following table sets forth the various components of non-interest income for the years indicated : replace_table_token_11_th for the year ended december 31 , 2011 , non-interest income was $ 23.9 million , a decrease of $ 1.6 million or 6.1 percent , from $ 25.4 million for the year ended december 31 , 2010. the decrease in non-interest income for 2011 is primarily attributable to a decrease in service charges on deposit accounts , and an increase in net loss on sales of loans partially offset by a net gain recognized from the sale of investment securities . the service charges on deposit accounts decreased $ 1.2 million , or 8.7 percent , to $ 12.8 million for the year ended december 31 , 2011 compared to $ 14.0 million for the year ended december 31 , 2010 due to the shrinkage in the deposit portfolio under our deleveraging strategy in the slowed economy . the net loss on sale of loans was $ 1.5 million compared to the net gain of $ 514,000 for the year ended december 31 , 2010 , as a result of our effort to enhance our credit quality through note sales . approximately , $ 135.0 million and $ 119.2 million of impaired loans were sold during 2011 and 2010 , respectively . the net gain from the sales of investment securities increased by $ 1.5 million for the year ended december 31 , 2011 to $ 1.6 million compared to $ 122,000 for the year ended december 31 , 2010. the aforementioned higher level of sales transaction of loans and investment securities in 2011 was a direct result of our balance-sheet deleveraging strategy . the additional liquidity from such sale of assets allowed us to reduce wholesale funds . for the year ended december 31 , 2010 , non-interest income was $ 25.4 million , a decrease of 20.9 percent from $ 32.1 million for the year ended december 31 , 2009. the decrease in non-interest income for 2010 is 63 primarily attributable to decreases in service charges on deposit accounts , a net gain on sales of loans and investment securities , and impairment loss on investment securities . the service charges on deposit accounts decreased $ 3.0 million , or 17.6 percent , to $ 14.0 million in 2010 compared to $ 17.1 million in 2009 due to the shrinkage in the deposit portfolio under our deleveraging strategy in the slowed economy . impairment loss on investment securities of $ 790,000 resulted from a write-down of equity securities , acquired prior to 2004 for community reinvestment act purposes , upon recapitalization of the issuer of such equity securities . the net gain on sale of loans decreased by $ 706,000 in 2010 compared to 2009 as a result of lower sales volume . in 2009 , we sold accumulated inventory of sba loans upon the recovery of the sba secondary market . the net gain on sales of investment securities also decreased by $ 1.7 million in 2010 compared to 2009. the aforementioned higher level of sales transaction of loans and investment securities in 2009 was a direct result of our balance-sheet deleveraging strategy . the additional liquidity from such sale of assets allowed us to reduce wholesale funds . non-interest expense the following table sets forth the breakdown of non-interest expense for the years indicated : replace_table_token_12_th for the year ended december 31 , 2011 , non-interest expense was $ 84.0 million , a decrease of $ 12.8 million or 13.2 percent , from $ 96.8 million for the year ended december 31 , 2010. the decrease was primarily due to the decreases in oreo expense and deposit insurance premiums and regulatory assessments , partially offset by the expense incurred in relation to an unconsummated capital offering transaction . oreo expense decreased by $ 9.1 million to $ 1.6 million for the year ended december 31 , 2011 compared to $ 10.7 million for the year ended december 31 , 2010 , mainly due to the absence of $ 8.7 million valuation allowance charged during the prior year and a decrease in maintenance costs related to foreclosed assets . the deposit insurance premiums and regulatory assessments decreased by $ 4.1 million or 38.4 percent , to $ 6.6 million compared to $ 10.8 million for the year ended december 31 , 2010 , primarily due to the lower assessment rates for the fdic insurance on deposits . the average assessment rates decreased by 16 basis points to 26 basis points for the year ended december 31 , 2011 from 41 basis points for the year ended december 31 , 2010 , resulting from the improvement in risk categories of the bank and the dodd-frank act 's changes to fdic assessment systems in early 2011. such decreases in non-interest expense was partially offset by the expense of $ 2.2 million associated with the unconsummated capital offering related to a definitive securities purchase agreement with woori finance holdings co. , ltd. for the year ended december 31 , 2010 , non-interest expense was $ 96.8 million , an increase of $ 6.5 million , or 7.1 percent , from $ 90.4 million for the year

capital resources and liquidity capital resources historically , our primary source of capital has been the retention of operating earnings . in order to ensure adequate levels of capital , the board continually assesses projected sources and uses of capital in conjunction with projected increases in assets and levels of risk . management considers , among other things , earnings generated from operations , and access to capital from financial markets through the issuance of additional securities , including common stock or notes , to meet our capital needs . under the final order , the bank was required to increase its capital prior to certain dates , and is required to maintain certain regulatory capital ratios as specified in the final oder . by july 31 , 2010 , the bank was required to increase its contributed equity capital by not less than an additional $ 100 million , which it was able to do following the successful completion of a registered rights and best efforts offering by which we raised net proceeds of approximately $ 116.8 million . as of december 31 , 2010 , the bank was “well capitalized” according to the regulatory guidelines . however , the final order requires the bank to maintain a ratio of tangible stockholders ' equity to total tangible assets as follows : date ratio of tangible stockholders ' equity to total tangible assets from december 31 , 2010 and until the order is terminated not less than 9.5 percent if the bank was not able to maintain the capital ratios identified in the final order , it was required to notify the dfi , and hanmi financial and the bank are required to notify the frb if their respective capital ratios fall below those set forth in the capital plan submitted to the frb . on july 27 , 2010 , we completed a registered rights and best efforts public offering of our common stock by which we raised $ 116.8 million in net proceeds .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 capital resources historically , our primary source of capital has been the retention of operating earnings . in order to ensure adequate levels of capital , the board continually assesses projected sources and uses of capital in conjunction with projected increases in assets and levels of risk . management considers , among other things , earnings generated from operations , and access to capital from financial markets through the issuance of additional securities , including common stock or notes , to meet our capital needs . under the final order , the bank was required to increase its capital prior to certain dates , and is required to maintain certain regulatory capital ratios as specified in the final oder . by july 31 , 2010 , the bank was required to increase its contributed equity capital by not less than an additional $ 100 million , which it was able to do following the successful completion of a registered rights and best efforts offering by which we raised net proceeds of approximately $ 116.8 million . as of december 31 , 2010 , the bank was “well capitalized” according to the regulatory guidelines . however , the final order requires the bank to maintain a ratio of tangible stockholders ' equity to total tangible assets as follows : date ratio of tangible stockholders ' equity to total tangible assets from december 31 , 2010 and until the order is terminated not less than 9.5 percent if the bank was not able to maintain the capital ratios identified in the final order , it was required to notify the dfi , and hanmi financial and the bank are required to notify the frb if their respective capital ratios fall below those set forth in the capital plan submitted to the frb . on july 27 , 2010 , we completed a registered rights and best efforts public offering of our common stock by which we raised $ 116.8 million in net proceeds . ``` Suspicious Activity Report : in such reclassification , we take into consideration of the following factors , but are not limited to ; npl and or classified status , non-accrual status , and days delinquent ; possibility of rehabilitation or workout for the near future and long term earning capability as an asset ; number of times the note was modified ; overall debt coverage ratio ; whether the debt is on troubled debt restructure status ; the location of the collateral ; and the borrower 's overall financial condition . the fair value of nonperforming loans held for sale is generally based upon the recent appraisal , quotes , bids or sales contract price which approximate the fair value . nonperforming loans held for sale are recorded at the lower of cost or fair value . investment securities the classification and accounting for investment securities are discussed in more detail in “notes to consolidated financial statements , note 2 – summary of significant accounting policies” presented elsewhere herein . under fasb asc 320 , “investment , ” investment securities generally must be classified as held-to-maturity , available-for-sale or trading . the appropriate classification is based partially on our ability to hold the securities to maturity and largely on management 's intentions with respect to either holding or selling the securities . the classification of investment securities is significant since it directly impacts the accounting for unrealized gains and losses on securities . unrealized gains and losses on trading securities flow directly through earnings during the periods in which they arise . investment securities that are classified as held-to-maturity are recorded at amortized cost . unrealized gains and losses on available-for-sale securities are recorded as a separate component of stockholders ' equity ( accumulated other comprehensive income or loss ) and do not affect earnings until realized or are deemed to be other-than-temporarily impaired . the fair values of investment securities are generally determined by reference to the average of at least two quoted market prices obtained from independent external brokers or independent external pricing service providers who have experience in valuing these securities . in obtaining such valuation information from third parties , we have evaluated the methodologies used to develop the resulting fair values . we perform a monthly analysis on the broker quotes received from third parties to ensure that the prices represent a reasonable estimate of the fair value . the procedures include , but are not limited to , initial and on-going review of third party pricing methodologies , review of pricing trends , and monitoring of trading volumes . we are obligated to assess , at each reporting date , whether there is an other-than-temporary impairment ( “otti” ) to our investment securities . such impairment must be recognized in current earnings rather than in other comprehensive income . the determination of otti is a subjective process , requiring the use of judgments and assumptions . we examine all individual securities that are in an unrealized loss position at each reporting date for otti . specific investment-related factors we examine to assess impairment include the nature of the investment , severity and duration of the loss , the probability that we will be unable to collect all amounts due , an analysis of 56 the issuers of the securities and whether there has been any cause for default on the securities and any change in the rating of the securities by the various rating agencies . additionally , we evaluate whether the creditworthiness of the issuer calls the realization of contractual cash flows into question . our impairment assessment also takes into consideration factor that we do not intend to sell the security and it is more likely than not it will be required to sell the security prior to recovery of its amortized cost basis of the security . if the decline in fair value is judged to be other than temporary , the security is written down to fair value which becomes the new cost basis and an impairment loss is recognized . for debt securities , the classification of otti depends on whether we intend to sell the security or it more likely than not will be required to sell the security before recovery of its costs basis , and on the nature of the impairment . if we intend to sell a security or it is more likely than not it will be required to sell a security prior to recovery of its cost basis , the entire amount of impairment is recognized in earnings . if we do not intend to sell the security or it is more likely than not it will be required to sell the security prior to recovery of its cost basis , the credit loss component of impairment is recognized in earnings and impairment associated with non-credit factors , such as market liquidity , is recognized in other comprehensive income net of tax . a credit loss is the difference between the cost basis of the security and the present value of cash flows expected to be collected , discounted at the security 's effective interest rate at the date of acquisition . the cost basis of an other-than-temporarily impaired security is written down by the amount of impairment recognized in earnings . the new cost basis is not adjusted for subsequent recoveries in fair value . management does not believe that there are any investment securities , other than those identified in the current and previous periods , that are deemed other-than-temporarily impaired as of december 31 , 2011 and 2010. investment securities are discussed in more detail in “notes to consolidated financial statements , note 4 – investment securities” presented elsewhere herein . income taxes we provide for income taxes using the asset and liability method . story_separator_special_tag net charge-offs decreased by $ 0.7 million , or 0.6 percent , from $ 122.6 million for the year ended december 31 , 2009 to $ 121.9 million for the year ended december 31 , 2010. non-performing loans decreased from $ 219.1 million , or 7.77 percent of total gross loans , as of december 31 , 2009 to $ 169.0 million , or 7.45 percent of total gross loans , as of december 31 , 2010. non-interest income we earn non-interest income from five major sources : service charges on deposit accounts , insurance commissions , remittance fees , fees generated from international trade finance and other service changes . in addition , we sell certain assets primarily for risk and liquidity management purposes . the following table sets forth the various components of non-interest income for the years indicated : replace_table_token_11_th for the year ended december 31 , 2011 , non-interest income was $ 23.9 million , a decrease of $ 1.6 million or 6.1 percent , from $ 25.4 million for the year ended december 31 , 2010. the decrease in non-interest income for 2011 is primarily attributable to a decrease in service charges on deposit accounts , and an increase in net loss on sales of loans partially offset by a net gain recognized from the sale of investment securities . the service charges on deposit accounts decreased $ 1.2 million , or 8.7 percent , to $ 12.8 million for the year ended december 31 , 2011 compared to $ 14.0 million for the year ended december 31 , 2010 due to the shrinkage in the deposit portfolio under our deleveraging strategy in the slowed economy . the net loss on sale of loans was $ 1.5 million compared to the net gain of $ 514,000 for the year ended december 31 , 2010 , as a result of our effort to enhance our credit quality through note sales . approximately , $ 135.0 million and $ 119.2 million of impaired loans were sold during 2011 and 2010 , respectively . the net gain from the sales of investment securities increased by $ 1.5 million for the year ended december 31 , 2011 to $ 1.6 million compared to $ 122,000 for the year ended december 31 , 2010. the aforementioned higher level of sales transaction of loans and investment securities in 2011 was a direct result of our balance-sheet deleveraging strategy . the additional liquidity from such sale of assets allowed us to reduce wholesale funds . for the year ended december 31 , 2010 , non-interest income was $ 25.4 million , a decrease of 20.9 percent from $ 32.1 million for the year ended december 31 , 2009. the decrease in non-interest income for 2010 is 63 primarily attributable to decreases in service charges on deposit accounts , a net gain on sales of loans and investment securities , and impairment loss on investment securities . the service charges on deposit accounts decreased $ 3.0 million , or 17.6 percent , to $ 14.0 million in 2010 compared to $ 17.1 million in 2009 due to the shrinkage in the deposit portfolio under our deleveraging strategy in the slowed economy . impairment loss on investment securities of $ 790,000 resulted from a write-down of equity securities , acquired prior to 2004 for community reinvestment act purposes , upon recapitalization of the issuer of such equity securities . the net gain on sale of loans decreased by $ 706,000 in 2010 compared to 2009 as a result of lower sales volume . in 2009 , we sold accumulated inventory of sba loans upon the recovery of the sba secondary market . the net gain on sales of investment securities also decreased by $ 1.7 million in 2010 compared to 2009. the aforementioned higher level of sales transaction of loans and investment securities in 2009 was a direct result of our balance-sheet deleveraging strategy . the additional liquidity from such sale of assets allowed us to reduce wholesale funds . non-interest expense the following table sets forth the breakdown of non-interest expense for the years indicated : replace_table_token_12_th for the year ended december 31 , 2011 , non-interest expense was $ 84.0 million , a decrease of $ 12.8 million or 13.2 percent , from $ 96.8 million for the year ended december 31 , 2010. the decrease was primarily due to the decreases in oreo expense and deposit insurance premiums and regulatory assessments , partially offset by the expense incurred in relation to an unconsummated capital offering transaction . oreo expense decreased by $ 9.1 million to $ 1.6 million for the year ended december 31 , 2011 compared to $ 10.7 million for the year ended december 31 , 2010 , mainly due to the absence of $ 8.7 million valuation allowance charged during the prior year and a decrease in maintenance costs related to foreclosed assets . the deposit insurance premiums and regulatory assessments decreased by $ 4.1 million or 38.4 percent , to $ 6.6 million compared to $ 10.8 million for the year ended december 31 , 2010 , primarily due to the lower assessment rates for the fdic insurance on deposits . the average assessment rates decreased by 16 basis points to 26 basis points for the year ended december 31 , 2011 from 41 basis points for the year ended december 31 , 2010 , resulting from the improvement in risk categories of the bank and the dodd-frank act 's changes to fdic assessment systems in early 2011. such decreases in non-interest expense was partially offset by the expense of $ 2.2 million associated with the unconsummated capital offering related to a definitive securities purchase agreement with woori finance holdings co. , ltd. for the year ended december 31 , 2010 , non-interest expense was $ 96.8 million , an increase of $ 6.5 million , or 7.1 percent , from $ 90.4 million for the year

this increase was primarily due to the net impact of ( 1 ) a $ 13.7 million , or 12.0 % , increase in our net interest income ; ( 2 ) an increase in the credit to provision for loan and lease losses of $ 763,000 ; ( 3 ) an increase of $ 4.9 million , or 10.2 % , in non-interest income ; offset by ( 4 ) an increase of $ 11.0 million , or 10.9 % , in our non-interest expense ; ( 5 ) a $ 2.5 million increase in income taxes ; and ( 6 ) an increase in preferred stock dividends of $ 3.6 million . our diluted earnings per share ( “ eps ” ) was $ 1.89 for the year ended december 31 , 2019 , compared to $ 1.81 in 2018 . the increase in diluted eps was a result of the continued growth of our business lines , which was the driver of additional net income available to common shareholders . 45 for the year ended december 31 , 2019 , total revenue increased $ 18.0 million , or 11.2 % , to $ 179.4 million from $ 161.4 million in 2018 , driven largely by higher net interest income and swap fees for the bank . our net interest margin was 1.97 % for the year ended december 31 , 2019 , as compared to 2.26 % in 2018 . the decrease in net interest margin for the year ended december 31 , 2019 , was driven by an increase of 41 basis points in the cost of interest-bearing liabilities , partially offset by an increase of 10 basis points in the yield on loans . our loans are predominantly variable rate loans indexed to 1-month libor and our deposits are a combination of fixed-rate time deposits and variable rate deposits , some of which are indexed or otherwise priced in reference to the effective federal funds rate . when the financial markets anticipate an interest rate cut , libor rates typically decrease in advance of action taken by the federal reserve , which compresses and can invert the historical spread between 1-month libor and the effective federal funds rate . this occurred at certain times during the year ended december 31 , 2019 . in addition , we intentionally increased our liquid assets as a component of our assets and our deposits as portion of our assets for the express purpose of carrying more on balance sheet liquidity . this increased the level of liquid assets that were generating lower returns based on the interest rate environment and interest rate term structure curve . also , certain hedge arrangements that we had in place which provided beneficial pricing on certain liquidity expired in 2019 and could not be replicated in the 2019 interest rate environment . all of this contributed to the compression of our net interest margin , impacted our net interest income and our rate of revenue growth , and affected profitability ratios such as the bank 's efficiency ratio , return on average assets , and return on average common equity . our non-interest income is largely comprised of investment management fees for chartwell , which totaled $ 36.4 million for the year ended december 31 , 2019 , as compared to $ 37.6 million in 2018 . the decrease was driven by a lower weighted average fee rate from the change in asset composition across investment products , partially offset by higher assets under management . assets under management were $ 9.70 billion as of december 31 , 2019 , an increase of $ 512.0 million from december 31 , 2018 , driven by market appreciation of $ 1.3 billion , partially offset by net outflows of $ 771.0 million . the non-interest income from the bank 's operations , which consisted of swap fee revenue , loan and service fees , and treasury management program fees , grew to $ 15.5 million from $ 11.0 million in 2018 . for the year ended december 31 , 2019 , the bank 's efficiency ratio was 54.49 % , as compared to 53.09 % in 2018 . the bank 's efficiency ratio reflects growth in the bank 's total revenue of 13.0 % and growth in the bank 's non-interest expense of 16.0 % . non-interest expense was $ 112.1 million for the year ended december 31 , 2019 , which included approximately $ 850,000 of expenses related to the due diligence with an investment management acquisition candidate , which concluded before the parties reached a definitive agreement . our non-interest expense to average assets for the year ended december 31 , 2019 , was 1.66 % , as compared to 1.93 % in 2018 . our return on average assets ( net income to average total assets ) was 0.89 % for the year ended december 31 , 2019 , as compared to 1.04 % in 2018 . our return on average common equity ( net income available to common shareholders to average common equity ) was 11.47 % for the year ended december 31 , 2019 , as compared to 12.57 % in 2018 . total assets of $ 7.77 billion as of december 31 , 2019 , increased $ 1.73 billion , or 28.7 % , from december 31 , 2018 . loans and leases held-for-investment grew by $ 1.44 billion to $ 6.58 billion as of december 31 , 2019 , an increase of 28.1 % from december 31 , 2018 , as a result of growth in our commercial and private banking loan and lease portfolios . total deposits increased $ 1.58 billion , or 31.4 % , to $ 6.63 billion as of december 31 , 2019 , from $ 5.05 billion as of december 31 , 2018 . story_separator_special_tag this increase was primarily related to increases in swap fees and commitment and other loan fees and higher net gain on debt securities , partially offset by lower investment management fees and other income ( loss ) , as follows : bank segment : swap fees increased $ 3.7 million for the year ended december 31 , 2019 , as compared to 2018 , due to an increase in the number of customer swap transactions closed during the year . while level and frequency of income associated with swap transactions can vary materially from period to period based on customers ' expectations of market conditions and term loan originations , there is strong customer demand for long-term interest rate protection in the current interest rate environment and we continue to run the business to increase demand through targeted loan production , enhanced messaging of the opportunity , process optimization and refined emphasis on marketing swaps to a broader portion of our loan portfolio , including loans collateralized by marketable securities . there was a net gain on the sale and call of debt securities of $ 416,000 for the year ended december 31 , 2019 , as compared to a net loss of $ 70,000 for the year ended december 31 , 2018 . commitment and other loan fees increased $ 377,000 for the year ended december 31 , 2019 primarily due to higher unused commitment fee income and other loan fee income due to the continued growth in our loan and lease portfolio . other income ( loss ) decreased $ 165,000 for the year ended december 31 , 2019 , as compared to 2018 , primarily due to a loss on the sale of oreo and lower unrealized gains on swaps . investment management segment : investment management fees decreased $ 1.1 million for the year ended december 31 , 2019 , as compared to 2018 , primarily due to a shift in the asset composition across investment products which resulted in a lower weighted average fee rate of 0.36 % for the year ended december 31 , 2019 , compared to 0.39 % for the year ended december 31 , 2018 , partially offset by higher assets under management of $ 512.0 million . for additional information on assets under management , refer to item 1 , business - investment management products . parent and other other income was comprised of a net gain on equity securities of $ 842,000 for the year ended december 31 , 2019 , as compared to a net loss of $ 773,000 for the year ended december 31 , 2018 . these equity securities were related to our mutual funds invested in short-duration , corporate bonds and mid-cap value equities , which were sold by december 31 , 2019 . 53 the following table presents the components of our non-interest income by operating segment for the years ended december 31 , 2018 and 2017 : replace_table_token_20_th non-interest income for the years ended december 31 , 2018 and 2017 . our non-interest income was $ 47.9 million for the year ended december 31 , 2018 , an increase of $ 951,000 , or 2.0 % , from $ 47.0 million for 2017 . this increase was primarily related to increases in swap fees and investment management fees , partially offset by decreases in net gain ( loss ) on debt securities and other income ( loss ) , as follows : bank segment : swap fees increased $ 2.0 million for the year ended december 31 , 2018 , as compared to 2017 , driven by increases in customer demand for long-term interest rate protection . the level and frequency of income associated with swap transactions can vary materially from period to period based on customers ' expectations of market conditions and loan originations . there was a net loss on the sale and call of debt securities of $ 70,000 for the year ended december 31 , 2018 , as compared to a net gain of $ 310,000 for the year ended december 31 , 2017. other income ( loss ) decreased $ 458,000 for the year ended december 31 , 2018 , as compared to 2017 , primarily due to lower gain on the sale of oreo and lower unrealized gains on swaps . investment management segment : investment management fees increased $ 630,000 for the year ended december 31 , 2018 , as compared to 2017 , which included higher assets under management related to the columbia acquisition , which closed on april 6 , 2018 , and net inflows , partially offset by market depreciation . assets under management were $ 9.19 billion as of december 31 , 2018 , an increase of $ 880.0 million from december 31 , 2017. parent and other other income ( loss ) reflected $ 775,000 of unrealized losses on equity securities for the year ended december 31 , 2018 , related to our mutual funds invested in short-duration , corporate bonds and mid-cap value equities . non-interest expense our non-interest expense represents the operating cost of maintaining and growing our business . the largest portion of non-interest expense for each segment is compensation and employee benefits , which include employee payroll expense as well as the cost of incentive compensation , benefit plans , health insurance and payroll taxes , all of which are impacted by the growth in our employee base , coupled with increases in the level of compensation and benefits of our existing employees . the information provided under the caption “ parent and other ” represents general operating activity of the company not considered to be a reportable segment , which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts . 54 the following table presents the components of our non-interest expense by operating segment for the years ended december 31 , 2019 and 2018

. cash and cash equivalents increased $ 213.9 million to $ 403.9 million as of december 31 , 2019 , from $ 190.0 million as of december 31 , 2018 . our asset and liability committee ( “ alco ” ) is responsible for managing the investment portfolio and liquidity of the bank , among other responsibilities . given the current overall interest rate environment and the strength of our loan growth , our alco has kept excess liquidity in interest-earning cash deposits . 57 as of december 31 , 2019 , our total deposits were $ 6.63 billion , an increase of $ 1.58 billion , or 31.4 % , from december 31 , 2018 , and were primarily used to fund loan growth . net borrowings decreased $ 49.2 million , or 12.2 % , to $ 355.0 million as of december 31 , 2019 , compared to $ 404.2 million as of december 31 , 2018 . our shareholders ' equity increased $ 141.9 million to $ 621.3 million as of december 31 , 2019 , compared to $ 479.4 million as of december 31 , 2018 . this increase was primarily the result of the issuance of $ 77.6 million in preferred stock , $ 60.2 million in net income , the impact of $ 8.8 million in stock-based compensation , an increase of $ 2.5 million in other accumulated comprehensive income and $ 900,000 in proceeds from stock option exercises , partially offset by preferred stock dividends declared of $ 5.8 million and the purchase of $ 2.3 million in treasury stock . our total assets as of december 31 , 2018 , were $ 6.04 billion , an increase of $ 1.26 billion , or 26.3

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```. cash and cash equivalents increased $ 213.9 million to $ 403.9 million as of december 31 , 2019 , from $ 190.0 million as of december 31 , 2018 . our asset and liability committee ( “ alco ” ) is responsible for managing the investment portfolio and liquidity of the bank , among other responsibilities . given the current overall interest rate environment and the strength of our loan growth , our alco has kept excess liquidity in interest-earning cash deposits . 57 as of december 31 , 2019 , our total deposits were $ 6.63 billion , an increase of $ 1.58 billion , or 31.4 % , from december 31 , 2018 , and were primarily used to fund loan growth . net borrowings decreased $ 49.2 million , or 12.2 % , to $ 355.0 million as of december 31 , 2019 , compared to $ 404.2 million as of december 31 , 2018 . our shareholders ' equity increased $ 141.9 million to $ 621.3 million as of december 31 , 2019 , compared to $ 479.4 million as of december 31 , 2018 . this increase was primarily the result of the issuance of $ 77.6 million in preferred stock , $ 60.2 million in net income , the impact of $ 8.8 million in stock-based compensation , an increase of $ 2.5 million in other accumulated comprehensive income and $ 900,000 in proceeds from stock option exercises , partially offset by preferred stock dividends declared of $ 5.8 million and the purchase of $ 2.3 million in treasury stock . our total assets as of december 31 , 2018 , were $ 6.04 billion , an increase of $ 1.26 billion , or 26.3 ``` Suspicious Activity Report : this increase was primarily due to the net impact of ( 1 ) a $ 13.7 million , or 12.0 % , increase in our net interest income ; ( 2 ) an increase in the credit to provision for loan and lease losses of $ 763,000 ; ( 3 ) an increase of $ 4.9 million , or 10.2 % , in non-interest income ; offset by ( 4 ) an increase of $ 11.0 million , or 10.9 % , in our non-interest expense ; ( 5 ) a $ 2.5 million increase in income taxes ; and ( 6 ) an increase in preferred stock dividends of $ 3.6 million . our diluted earnings per share ( “ eps ” ) was $ 1.89 for the year ended december 31 , 2019 , compared to $ 1.81 in 2018 . the increase in diluted eps was a result of the continued growth of our business lines , which was the driver of additional net income available to common shareholders . 45 for the year ended december 31 , 2019 , total revenue increased $ 18.0 million , or 11.2 % , to $ 179.4 million from $ 161.4 million in 2018 , driven largely by higher net interest income and swap fees for the bank . our net interest margin was 1.97 % for the year ended december 31 , 2019 , as compared to 2.26 % in 2018 . the decrease in net interest margin for the year ended december 31 , 2019 , was driven by an increase of 41 basis points in the cost of interest-bearing liabilities , partially offset by an increase of 10 basis points in the yield on loans . our loans are predominantly variable rate loans indexed to 1-month libor and our deposits are a combination of fixed-rate time deposits and variable rate deposits , some of which are indexed or otherwise priced in reference to the effective federal funds rate . when the financial markets anticipate an interest rate cut , libor rates typically decrease in advance of action taken by the federal reserve , which compresses and can invert the historical spread between 1-month libor and the effective federal funds rate . this occurred at certain times during the year ended december 31 , 2019 . in addition , we intentionally increased our liquid assets as a component of our assets and our deposits as portion of our assets for the express purpose of carrying more on balance sheet liquidity . this increased the level of liquid assets that were generating lower returns based on the interest rate environment and interest rate term structure curve . also , certain hedge arrangements that we had in place which provided beneficial pricing on certain liquidity expired in 2019 and could not be replicated in the 2019 interest rate environment . all of this contributed to the compression of our net interest margin , impacted our net interest income and our rate of revenue growth , and affected profitability ratios such as the bank 's efficiency ratio , return on average assets , and return on average common equity . our non-interest income is largely comprised of investment management fees for chartwell , which totaled $ 36.4 million for the year ended december 31 , 2019 , as compared to $ 37.6 million in 2018 . the decrease was driven by a lower weighted average fee rate from the change in asset composition across investment products , partially offset by higher assets under management . assets under management were $ 9.70 billion as of december 31 , 2019 , an increase of $ 512.0 million from december 31 , 2018 , driven by market appreciation of $ 1.3 billion , partially offset by net outflows of $ 771.0 million . the non-interest income from the bank 's operations , which consisted of swap fee revenue , loan and service fees , and treasury management program fees , grew to $ 15.5 million from $ 11.0 million in 2018 . for the year ended december 31 , 2019 , the bank 's efficiency ratio was 54.49 % , as compared to 53.09 % in 2018 . the bank 's efficiency ratio reflects growth in the bank 's total revenue of 13.0 % and growth in the bank 's non-interest expense of 16.0 % . non-interest expense was $ 112.1 million for the year ended december 31 , 2019 , which included approximately $ 850,000 of expenses related to the due diligence with an investment management acquisition candidate , which concluded before the parties reached a definitive agreement . our non-interest expense to average assets for the year ended december 31 , 2019 , was 1.66 % , as compared to 1.93 % in 2018 . our return on average assets ( net income to average total assets ) was 0.89 % for the year ended december 31 , 2019 , as compared to 1.04 % in 2018 . our return on average common equity ( net income available to common shareholders to average common equity ) was 11.47 % for the year ended december 31 , 2019 , as compared to 12.57 % in 2018 . total assets of $ 7.77 billion as of december 31 , 2019 , increased $ 1.73 billion , or 28.7 % , from december 31 , 2018 . loans and leases held-for-investment grew by $ 1.44 billion to $ 6.58 billion as of december 31 , 2019 , an increase of 28.1 % from december 31 , 2018 , as a result of growth in our commercial and private banking loan and lease portfolios . total deposits increased $ 1.58 billion , or 31.4 % , to $ 6.63 billion as of december 31 , 2019 , from $ 5.05 billion as of december 31 , 2018 . story_separator_special_tag this increase was primarily related to increases in swap fees and commitment and other loan fees and higher net gain on debt securities , partially offset by lower investment management fees and other income ( loss ) , as follows : bank segment : swap fees increased $ 3.7 million for the year ended december 31 , 2019 , as compared to 2018 , due to an increase in the number of customer swap transactions closed during the year . while level and frequency of income associated with swap transactions can vary materially from period to period based on customers ' expectations of market conditions and term loan originations , there is strong customer demand for long-term interest rate protection in the current interest rate environment and we continue to run the business to increase demand through targeted loan production , enhanced messaging of the opportunity , process optimization and refined emphasis on marketing swaps to a broader portion of our loan portfolio , including loans collateralized by marketable securities . there was a net gain on the sale and call of debt securities of $ 416,000 for the year ended december 31 , 2019 , as compared to a net loss of $ 70,000 for the year ended december 31 , 2018 . commitment and other loan fees increased $ 377,000 for the year ended december 31 , 2019 primarily due to higher unused commitment fee income and other loan fee income due to the continued growth in our loan and lease portfolio . other income ( loss ) decreased $ 165,000 for the year ended december 31 , 2019 , as compared to 2018 , primarily due to a loss on the sale of oreo and lower unrealized gains on swaps . investment management segment : investment management fees decreased $ 1.1 million for the year ended december 31 , 2019 , as compared to 2018 , primarily due to a shift in the asset composition across investment products which resulted in a lower weighted average fee rate of 0.36 % for the year ended december 31 , 2019 , compared to 0.39 % for the year ended december 31 , 2018 , partially offset by higher assets under management of $ 512.0 million . for additional information on assets under management , refer to item 1 , business - investment management products . parent and other other income was comprised of a net gain on equity securities of $ 842,000 for the year ended december 31 , 2019 , as compared to a net loss of $ 773,000 for the year ended december 31 , 2018 . these equity securities were related to our mutual funds invested in short-duration , corporate bonds and mid-cap value equities , which were sold by december 31 , 2019 . 53 the following table presents the components of our non-interest income by operating segment for the years ended december 31 , 2018 and 2017 : replace_table_token_20_th non-interest income for the years ended december 31 , 2018 and 2017 . our non-interest income was $ 47.9 million for the year ended december 31 , 2018 , an increase of $ 951,000 , or 2.0 % , from $ 47.0 million for 2017 . this increase was primarily related to increases in swap fees and investment management fees , partially offset by decreases in net gain ( loss ) on debt securities and other income ( loss ) , as follows : bank segment : swap fees increased $ 2.0 million for the year ended december 31 , 2018 , as compared to 2017 , driven by increases in customer demand for long-term interest rate protection . the level and frequency of income associated with swap transactions can vary materially from period to period based on customers ' expectations of market conditions and loan originations . there was a net loss on the sale and call of debt securities of $ 70,000 for the year ended december 31 , 2018 , as compared to a net gain of $ 310,000 for the year ended december 31 , 2017. other income ( loss ) decreased $ 458,000 for the year ended december 31 , 2018 , as compared to 2017 , primarily due to lower gain on the sale of oreo and lower unrealized gains on swaps . investment management segment : investment management fees increased $ 630,000 for the year ended december 31 , 2018 , as compared to 2017 , which included higher assets under management related to the columbia acquisition , which closed on april 6 , 2018 , and net inflows , partially offset by market depreciation . assets under management were $ 9.19 billion as of december 31 , 2018 , an increase of $ 880.0 million from december 31 , 2017. parent and other other income ( loss ) reflected $ 775,000 of unrealized losses on equity securities for the year ended december 31 , 2018 , related to our mutual funds invested in short-duration , corporate bonds and mid-cap value equities . non-interest expense our non-interest expense represents the operating cost of maintaining and growing our business . the largest portion of non-interest expense for each segment is compensation and employee benefits , which include employee payroll expense as well as the cost of incentive compensation , benefit plans , health insurance and payroll taxes , all of which are impacted by the growth in our employee base , coupled with increases in the level of compensation and benefits of our existing employees . the information provided under the caption “ parent and other ” represents general operating activity of the company not considered to be a reportable segment , which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts . 54 the following table presents the components of our non-interest expense by operating segment for the years ended december 31 , 2019 and 2018

unless required by law , the company does not undertake , and specifically disclaims any obligations to , publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements . general the financial review , which follows focuses on the factors affecting the consolidated financial condition and results of operations of the company and its wholly-owned subsidiaries , the bank , nbt financial services and nbt holdings during 2017 and , in summary form , the preceding two years . collectively , the registrant and its subsidiaries are referred to herein as “ the company . ” net interest margin is presented in this discussion on a fully taxable equivalent ( `` fte `` ) basis . average balances discussed are daily averages unless otherwise described . the audited consolidated financial statements and related notes as of december 31 , 2017 and 2016 and for each of the years in the three-year period ended december 31 , 2017 should be read in conjunction with this review . amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the 2017 presentation . critical accounting policies the company has identified policies as being critical because they require management to make particularly difficult , subjective and or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions . these policies relate to the allowance for loan losses , pension accounting and provision for income taxes . management of the company considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations . while management 's current evaluation of the allowance for loan losses indicates that the allowance is appropriate , under adversely different conditions or assumptions , the allowance may need to be increased . for example , if historical loan loss experience significantly worsened or if current economic conditions significantly deteriorated , additional provision for loan losses would be required to increase the allowance . in addition , the assumptions and estimates used in the internal reviews of the company 's nonperforming loans and potential problem loans have a significant impact on the overall analysis of the adequacy of the allowance for loan losses . while management has concluded that the current evaluation of collateral values is reasonable under the circumstances , if collateral values were significantly lower , the company 's allowance for loan loss policy would also require additional provision for loan losses . 30 management is required to make various assumptions in valuing the company 's pension assets and liabilities . these assumptions include the expected rate of return on plan assets , the discount rate and the rate of increase in future compensation levels . changes to these assumptions could impact earnings in future periods . the company takes into account the plan asset mix , funding obligations and expert opinions in determining the various rates used to estimate pension expense . the company also considers the citigroup pension liability index , market interest rates and discounted cash flows in setting the appropriate discount rate . in addition , the company reviews expected inflationary and merit increases to compensation in determining the rate of increase in future compensation levels . the company is subject to examinations from various taxing authorities . such examinations may result in challenges to the tax return treatment applied by the company to specific transactions . management believes that the assumptions and judgments used to record tax-related assets or liabilities have been appropriate . should tax laws change or the taxing authorities determine that management 's assumptions were inappropriate , an adjustment may be required which could have a material effect on the company 's results of operations . the company 's policies on the allowance for loan losses , pension accounting and provision for income taxes are disclosed in note 1 to the consolidated financial statements . a more detailed description of the allowance for loan losses is included in the section captioned “ risk management – credit risk ” in item 7. management 's discussion and analysis of financial condition and results of operations of this form 10-k. all significant pension accounting assumptions , income tax assumptions and intangible asset assumptions and detail are disclosed in notes 13 , 12 and 7 to the consolidated financial statements , respectively . all accounting policies are important , and as such , the company encourages the reader to review each of the policies included in note 1 to obtain a better understanding of how the company 's financial performance is reported . non-gaap measures this annual report on form 10-k contains financial information determined by methods other than in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . these measures adjust gaap measures to exclude the effects of acquisition-related intangible amortization expense on earnings and equity as well as providing a fte yield on securities and loans . where non-gaap disclosures are used in this annual report on form 10-k , the comparable gaap measure , as well as a reconciliation to the comparable gaap measure , is provided in the accompanying tables . management believes that these non-gaap measures provide useful information that is important to an understanding of the results of the company 's core business as well as provide information standard in the financial institution industry . story_separator_special_tag noninterest income noninterest income is a significant source of revenue for the company and an important factor in the company 's results of operations . the following table sets forth information by category of noninterest income for the years indicated : replace_table_token_12_th 37 noninterest income for the year ended december 31 , 2017 was $ 121.3 million , up $ 5.6 million , or 4.8 % , from the same period of 2016. the increase in noninterest income from the prior year was driven by higher retirement plan administration fees , net securities gains ( losses ) , atm and debit card fees and trust revenues that were partially offset by lower other noninterest income and insurance and other financial services revenue during 2017 as compared to 2016. retirement plan administration fees increased in 2017 as compared to the prior year due primarily to acquisitions completed in 2016 and the acquisition of downeast pension services ( `` dps `` ) in the second quarter of 2017. net securities gains ( losses ) increased due to a gain recognized on the sale of securities in 2017 as compared to a net loss in 2016. atm and debit card fees increased from the prior year due to a higher number of accounts and increased usage in 2017 as compared to 2016. trust revenue increased from the prior year due to market returns and account growth . other noninterest income decreased from 2016 to 2017 due to lower swap fee income and a net decrease in non-recurring items of $ 1.4 million . insurance and other financial services revenue decreased from the prior year primarily due to the divestiture of a book of business in the third quarter of 2016. noninterest income as a percent of total revenue excluding net securities gains ( losses ) and the gain on the sale of equity investment was 29.5 % and 30.6 % for the years ended december 31 , 2017 and 2016 , respectively . noninterest expense noninterest expenses are also an important factor in the company 's results of operations . the following table sets forth the major components of noninterest expense for the years indicated : replace_table_token_13_th noninterest expense for the year ended december 31 , 2017 was $ 245.6 million , up $ 9.7 million , or 4.1 % from 2016. this increase was due to higher salaries and employee benefits , loan collection and other real estate owned ( `` oreo `` ) expense and other noninterest expense . other noninterest expense increased $ 3.9 million due to the write-down of an intangible asset no longer in use due to a change in business strategy combined with a favorable settlement of an accrual in 2016. salaries and employee benefits increased from the prior year due to the acquisition of dps in the second quarter of 2017 and higher medical costs . loan collection and oreo expense increased from the prior year due primarily to commercial property write-downs . income taxes we calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . the amount of income taxes the company pays is subject at times to ongoing audits by federal and state tax authorities , which may result in proposed assessments . future results may include favorable or unfavorable adjustments to the estimated tax liabilities in the period the assessments are proposed or resolved or when statutes of limitation on potential assessments expire . as a result , the company 's effective tax rate may fluctuate significantly on a quarterly or annual basis . on december 22 , 2017 , the u.s. government enacted the tax cuts and jobs act ( the `` tax act `` ) . the tax act includes significant changes to the u.s. corporate income tax system including a federal corporate rate reduction from 35 % to 21 % . the company follows the guidance in sec staff accounting bulletin 118 ( `` sab 118 `` ) , which provides additional clarification regarding the application of asc topic 740 , income taxe s , in situations where the company does not have the necessary information available , prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax act for the reporting period in which the tax act was enacted . sab 118 provides for a measurement period beginning in the reporting period that includes the tax act 's enactment data and ending when the company has obtained , prepared and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date . in connection with our initial analysis of the impact of the tax act , the company recorded a $ 4.4 million adjustment in the year ended december 31 , 2017 for remeasurement of deferred tax assets and liabilities for the corporate rate reduction . a certain amount of this adjustment is provisional , related to consideration of depreciation , compensation matters and different interpretations by various regulatory authorities . 38 income tax expense for the year ended december 31 , 2017 was $ 46.0 million , up $ 5.6 million , or 13.9 % , from $ 40.4 million , for the same period of 2016. the effective tax rate of 35.9 % for 2017 was up from 34.0 % for 2016. the increase from the prior year was primarily due to a higher level of taxable income in 2017 combined with the $ 4.4 million estimated non-cash charge related to the enactment of the tax act resulting in the remeasurement of the company 's deferred tax assets and liabilities arising from the lower federal

capital resources consistent with its goal to operate a sound and profitable financial institution , the company actively seeks to maintain a “ well-capitalized ” institution in accordance with regulatory standards . the principal source of capital to the company is earnings retention . the company 's capital measurements are in excess of both regulatory minimum guidelines and meet the requirements to be considered well-capitalized . the company 's principal source of funds to pay interest on trust preferred debentures and pay cash dividends to its shareholders are dividends from its subsidiaries . various laws and regulations restrict the ability of banks to pay dividends to their shareholders . generally , the payment of dividends by the company in the future as well as the payment of interest on the capital securities will require the generation of sufficient future earnings by its subsidiaries . the bank also is subject to substantial regulatory restrictions on its ability to pay dividends to the company . under occ regulations , the bank may not pay a dividend , without prior occ approval , if the total amount of all dividends declared during the calendar year , including the proposed dividend , exceeds the sum of its retained net income to date during the calendar year and its retained net income over the preceding two years . at december 31 , 2017 and 2016 , approximately $ 107.5 million and $ 102.5 million , respectively , of the total stockholders ' equity of the bank was available for payment of dividends to the company without approval by the occ . the bank 's ability to pay dividends also is subject to the bank being in compliance with regulatory capital requirements . the bank is currently in compliance with these requirements .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 consistent with its goal to operate a sound and profitable financial institution , the company actively seeks to maintain a “ well-capitalized ” institution in accordance with regulatory standards . the principal source of capital to the company is earnings retention . the company 's capital measurements are in excess of both regulatory minimum guidelines and meet the requirements to be considered well-capitalized . the company 's principal source of funds to pay interest on trust preferred debentures and pay cash dividends to its shareholders are dividends from its subsidiaries . various laws and regulations restrict the ability of banks to pay dividends to their shareholders . generally , the payment of dividends by the company in the future as well as the payment of interest on the capital securities will require the generation of sufficient future earnings by its subsidiaries . the bank also is subject to substantial regulatory restrictions on its ability to pay dividends to the company . under occ regulations , the bank may not pay a dividend , without prior occ approval , if the total amount of all dividends declared during the calendar year , including the proposed dividend , exceeds the sum of its retained net income to date during the calendar year and its retained net income over the preceding two years . at december 31 , 2017 and 2016 , approximately $ 107.5 million and $ 102.5 million , respectively , of the total stockholders ' equity of the bank was available for payment of dividends to the company without approval by the occ . the bank 's ability to pay dividends also is subject to the bank being in compliance with regulatory capital requirements . the bank is currently in compliance with these requirements . ``` Suspicious Activity Report : unless required by law , the company does not undertake , and specifically disclaims any obligations to , publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements . general the financial review , which follows focuses on the factors affecting the consolidated financial condition and results of operations of the company and its wholly-owned subsidiaries , the bank , nbt financial services and nbt holdings during 2017 and , in summary form , the preceding two years . collectively , the registrant and its subsidiaries are referred to herein as “ the company . ” net interest margin is presented in this discussion on a fully taxable equivalent ( `` fte `` ) basis . average balances discussed are daily averages unless otherwise described . the audited consolidated financial statements and related notes as of december 31 , 2017 and 2016 and for each of the years in the three-year period ended december 31 , 2017 should be read in conjunction with this review . amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the 2017 presentation . critical accounting policies the company has identified policies as being critical because they require management to make particularly difficult , subjective and or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions . these policies relate to the allowance for loan losses , pension accounting and provision for income taxes . management of the company considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations . while management 's current evaluation of the allowance for loan losses indicates that the allowance is appropriate , under adversely different conditions or assumptions , the allowance may need to be increased . for example , if historical loan loss experience significantly worsened or if current economic conditions significantly deteriorated , additional provision for loan losses would be required to increase the allowance . in addition , the assumptions and estimates used in the internal reviews of the company 's nonperforming loans and potential problem loans have a significant impact on the overall analysis of the adequacy of the allowance for loan losses . while management has concluded that the current evaluation of collateral values is reasonable under the circumstances , if collateral values were significantly lower , the company 's allowance for loan loss policy would also require additional provision for loan losses . 30 management is required to make various assumptions in valuing the company 's pension assets and liabilities . these assumptions include the expected rate of return on plan assets , the discount rate and the rate of increase in future compensation levels . changes to these assumptions could impact earnings in future periods . the company takes into account the plan asset mix , funding obligations and expert opinions in determining the various rates used to estimate pension expense . the company also considers the citigroup pension liability index , market interest rates and discounted cash flows in setting the appropriate discount rate . in addition , the company reviews expected inflationary and merit increases to compensation in determining the rate of increase in future compensation levels . the company is subject to examinations from various taxing authorities . such examinations may result in challenges to the tax return treatment applied by the company to specific transactions . management believes that the assumptions and judgments used to record tax-related assets or liabilities have been appropriate . should tax laws change or the taxing authorities determine that management 's assumptions were inappropriate , an adjustment may be required which could have a material effect on the company 's results of operations . the company 's policies on the allowance for loan losses , pension accounting and provision for income taxes are disclosed in note 1 to the consolidated financial statements . a more detailed description of the allowance for loan losses is included in the section captioned “ risk management – credit risk ” in item 7. management 's discussion and analysis of financial condition and results of operations of this form 10-k. all significant pension accounting assumptions , income tax assumptions and intangible asset assumptions and detail are disclosed in notes 13 , 12 and 7 to the consolidated financial statements , respectively . all accounting policies are important , and as such , the company encourages the reader to review each of the policies included in note 1 to obtain a better understanding of how the company 's financial performance is reported . non-gaap measures this annual report on form 10-k contains financial information determined by methods other than in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . these measures adjust gaap measures to exclude the effects of acquisition-related intangible amortization expense on earnings and equity as well as providing a fte yield on securities and loans . where non-gaap disclosures are used in this annual report on form 10-k , the comparable gaap measure , as well as a reconciliation to the comparable gaap measure , is provided in the accompanying tables . management believes that these non-gaap measures provide useful information that is important to an understanding of the results of the company 's core business as well as provide information standard in the financial institution industry . story_separator_special_tag noninterest income noninterest income is a significant source of revenue for the company and an important factor in the company 's results of operations . the following table sets forth information by category of noninterest income for the years indicated : replace_table_token_12_th 37 noninterest income for the year ended december 31 , 2017 was $ 121.3 million , up $ 5.6 million , or 4.8 % , from the same period of 2016. the increase in noninterest income from the prior year was driven by higher retirement plan administration fees , net securities gains ( losses ) , atm and debit card fees and trust revenues that were partially offset by lower other noninterest income and insurance and other financial services revenue during 2017 as compared to 2016. retirement plan administration fees increased in 2017 as compared to the prior year due primarily to acquisitions completed in 2016 and the acquisition of downeast pension services ( `` dps `` ) in the second quarter of 2017. net securities gains ( losses ) increased due to a gain recognized on the sale of securities in 2017 as compared to a net loss in 2016. atm and debit card fees increased from the prior year due to a higher number of accounts and increased usage in 2017 as compared to 2016. trust revenue increased from the prior year due to market returns and account growth . other noninterest income decreased from 2016 to 2017 due to lower swap fee income and a net decrease in non-recurring items of $ 1.4 million . insurance and other financial services revenue decreased from the prior year primarily due to the divestiture of a book of business in the third quarter of 2016. noninterest income as a percent of total revenue excluding net securities gains ( losses ) and the gain on the sale of equity investment was 29.5 % and 30.6 % for the years ended december 31 , 2017 and 2016 , respectively . noninterest expense noninterest expenses are also an important factor in the company 's results of operations . the following table sets forth the major components of noninterest expense for the years indicated : replace_table_token_13_th noninterest expense for the year ended december 31 , 2017 was $ 245.6 million , up $ 9.7 million , or 4.1 % from 2016. this increase was due to higher salaries and employee benefits , loan collection and other real estate owned ( `` oreo `` ) expense and other noninterest expense . other noninterest expense increased $ 3.9 million due to the write-down of an intangible asset no longer in use due to a change in business strategy combined with a favorable settlement of an accrual in 2016. salaries and employee benefits increased from the prior year due to the acquisition of dps in the second quarter of 2017 and higher medical costs . loan collection and oreo expense increased from the prior year due primarily to commercial property write-downs . income taxes we calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . the amount of income taxes the company pays is subject at times to ongoing audits by federal and state tax authorities , which may result in proposed assessments . future results may include favorable or unfavorable adjustments to the estimated tax liabilities in the period the assessments are proposed or resolved or when statutes of limitation on potential assessments expire . as a result , the company 's effective tax rate may fluctuate significantly on a quarterly or annual basis . on december 22 , 2017 , the u.s. government enacted the tax cuts and jobs act ( the `` tax act `` ) . the tax act includes significant changes to the u.s. corporate income tax system including a federal corporate rate reduction from 35 % to 21 % . the company follows the guidance in sec staff accounting bulletin 118 ( `` sab 118 `` ) , which provides additional clarification regarding the application of asc topic 740 , income taxe s , in situations where the company does not have the necessary information available , prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax act for the reporting period in which the tax act was enacted . sab 118 provides for a measurement period beginning in the reporting period that includes the tax act 's enactment data and ending when the company has obtained , prepared and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date . in connection with our initial analysis of the impact of the tax act , the company recorded a $ 4.4 million adjustment in the year ended december 31 , 2017 for remeasurement of deferred tax assets and liabilities for the corporate rate reduction . a certain amount of this adjustment is provisional , related to consideration of depreciation , compensation matters and different interpretations by various regulatory authorities . 38 income tax expense for the year ended december 31 , 2017 was $ 46.0 million , up $ 5.6 million , or 13.9 % , from $ 40.4 million , for the same period of 2016. the effective tax rate of 35.9 % for 2017 was up from 34.0 % for 2016. the increase from the prior year was primarily due to a higher level of taxable income in 2017 combined with the $ 4.4 million estimated non-cash charge related to the enactment of the tax act resulting in the remeasurement of the company 's deferred tax assets and liabilities arising from the lower federal

we also continued to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions . the market for our systems and aftermarket products and services is represented by a relatively small number of companies . in 2018 , the top 20 semiconductor chip manufacturers accounted for approximately 88.8 % of total semiconductor capital equipment spending , down from 90.9 % in 2017. our net revenue from our ten largest customers accounted for 76.9 % of total revenue for the year ended december 31 , 2018 compared to 73.3 % and 70.2 % of revenue for the years ended december 31 , 2017 and 2016 , respectively . for the year ended december 31 , 2018 , we had two customers representing 20.1 % and 12.1 % of total revenue , respectively . critical accounting estimates management 's discussion and analysis of our financial condition and results of operations are based upon axcelis ' consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . on an on‑going basis , we evaluate our estimates and assumptions . management 's estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and 18 liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following accounting policies are critical in the portrayal of our financial condition and results of operations and require management 's most significant judgments and estimates in the preparation of our consolidated financial statements . for additional accounting policies see note 2 to the consolidated financial statements for the year ended december 31 , 2018 included in this annual report on form 10-k. revenue recognition our accounting policies relating to the recognition of revenue require management to make estimates , determinations and judgments based on historical experience and on various other assumptions , which include ( i ) the existence of a contract with the customer , ( ii ) the identification of the performance obligations in the contract , ( iii ) the value of any variable consideration in the contract , ( iv ) the stand alone selling price of multiple obligations in the contract , for the purpose of allocating the consideration in the contract , and ( v ) determining when a performance obligation has been met . our revenue recognition policies are set forth in section ( i ) of note 2 , summary of significant accounting policies , to the consolidated financial statements for the year ended december 31 , 2018 included in this annual report on form 10-k. recognition of revenue based on incorrect judgments , including an erroneous allocation of the estimated sales price between the units of accounting , could result in inappropriate recognition of revenue , or incorrect timing of revenue recognition , which could have a material effect on our financial condition and results of operations . impairment of long‑lived assets we record impairment losses on long‑lived assets when events and circumstances indicate that these assets might not be recoverable . recoverability is measured by a comparison of the assets ' carrying amount to their expected future undiscounted net cash flows . if such assets are considered to be impaired , the impairment is measured based on the amount by which the carrying value exceeds its fair value . actual performance could be materially different from our current forecasts , which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long‑lived assets in the future . this could be caused by strategic decisions made in response to economic and competitive conditions , the impact of the economic environment on our customer base or a material adverse change in our relationships with significant customers . we did not record an impairment charge in the years ended december 31 , 2018 , 2017 or 2016. accounts receivable—allowance for doubtful accounts we record 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 established based on a specific assessment of collectability of our customer accounts . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be necessary . inventory—provision for excess and obsolescence and lower of cost or net realizable value we record a provision for estimated excess and obsolete inventory and lower of cost or net realizable value . the provision is determined using management 's assumptions of materials usage , based on estimates of forecasted and historical demand and market conditions . if actual market conditions become less favorable than those projected by management , additional inventory write‑downs may be required . although we make every effort to ensure the accuracy of our forecasts or product demand and pricing assumptions , any significant unanticipated changes in demand , pricing , or technical developments would significantly impact the value of our inventory and our reported operating results . in the future , if we determine that inventory needs 19 to be written down , we will recognize such costs in our cost of revenue at the time of such determination . if we subsequently sell product that has previously been written down , our gross margin in that period will be favorably impacted . story_separator_special_tag 24 operating expenses the following table sets forth our operating expenses : replace_table_token_4_th our operating expenses consist primarily of personnel costs , including salaries , commissions , bonuses , stock-based compensation and related benefits and taxes ; project material costs related to the design and development of new products and enhancement of existing products ; and professional fees , travel and depreciation expenses . personnel costs are our largest expense , representing $ 74.3 million , or 62.1 % of our total operating expenses , for the year ended december 31 , 2018 ; $ 64.5 million , or 63.0 % , of our total operating expenses for the year ended december 31 , 2017 ; and $ 47.6 million , or 57.5 % , of our total operating expenses for the year ended december 31 , 2016. research and development replace_table_token_5_th our ability to remain competitive depends largely on continuously developing innovative technology , with new and enhanced features and systems and introducing them at competitive prices on a timely basis . accordingly , based on our strategic plan , we establish annual r & d budgets to fund programs that we expect will drive competitive advantages . 2018 compared with 2017 research and development expense was $ 51.9 million in 2018 , an increase of $ 8.8 million , or 20.4 % , compared with $ 43.1 million in 2017. the increase was primarily due to increased headcount and to project costs to support development of new purion products and extensions . 2017 compared with 2016 research and development expense was $ 43.1 million in 2017 , an increase of approximately $ 8.7 million , or 25.2 % , compared with $ 34.4 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . 25 sales and marketing replace_table_token_6_th our sales and marketing expenses result primarily from the sale of our equipment and services through our direct sales force . 2018 compared with 2017 sales and marketing expense was $ 34.6 million in 2018 , an increase of $ 6.1 million , or 21.3 % , compared with $ 28.5 million in 2017. the increase was primarily due to increased headcount . 2017 compared with 2016 sales and marketing expense was $ 28.5 million in 2017 , an increase of $ 4.7 million , or 19.7 % , compared with $ 23.8 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . general and administrative replace_table_token_7_th our general and administrative expenses result primarily from the costs associated with our executive , finance , information technology , legal and human resource functions . 2018 compared with 2017 general and administrative expense was $ 33.2 million in 2018 , an increase of $ 2.4 million , or 7.8 % compared with $ 30.8 million in 2017. the increase was primarily due to increases in professional and consulting fees and to a lesser extent , increased headcount . 2017 compared with 2016 general and administrative expense was $ 30.8 million in 2017 , an increase of $ 6.4 million , or 26.0 % compared with $ 24.5 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . 26 restructuring we from time to time incur expenses relating to restructuring . 2017 compared with 2016 during the year ended december 31 , 2016 we recorded $ 0.3 million to restructuring expense due to a consolidation in our customer base . other ( expense ) income other ( expense ) income consists primarily of interest expense relating to the lease obligation we incurred in connection with the 2015 sale of our headquarters facility ( “ sale leaseback ” ) and other financing obligations , foreign exchange gains and losses attributable to fluctuations of the u.s. dollar against the local currencies of certain of the countries in which we operate , as well as interest earned on our invested cash balances . replace_table_token_8_th 2018 compared with 2017 other expense for the year ended december 31 , 2018 was $ 5.3 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation , $ 1.3 million of foreign currency translation losses , other miscellaneous expense of $ 1.2 million , partially offset by interest income of $ 2.3 million . other expense for the year ended december 31 , 2017 was $ 4.0 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation and other miscellaneous expense of $ 0.7 million , partially offset by interest income of $ 0.7 million and $ 1.1 million of foreign currency translation gains . 2017 compared with 2016 other expense for the year ended december 31 , 2017 was $ 4.0 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation and other miscellaneous expense of $ 0.7 million , offset by interest income of $ 0.7 million and $ 1.1 million of foreign currency translation gains . other expense for the year ended december 31 , 2016 was $ 5.6 million and includes interest expense of $ 5.1 million , interest income of $ 0.2 million and $ 0.6 million of foreign currency translation loss . income taxes replace_table_token_9_th 27 2018 compared with 2017 income tax expense was $ 8.8 million for the year ended december 31 , 2018 compared to an income tax benefit of $ 83.1 million in the previous year . the income tax expense of $ 8.8 million in 2018 reflects a net effective tax rate of 16.1 % on our worldwide pre-tax income . the income tax benefit of $ 83.1 million in 2017 was primarily due to the release of our valuation allowance on our deferred tax assets . we have significant net operating loss carryforwards in the united

liquidity and capital resources our liquidity is affected by many factors . some of these relate specifically to the operations of our business . for example , our sales and other factors relate to the uncertainties of global economies , including the availability of credit and the condition of the overall semiconductor capital equipment industry . our established cost structure does not vary significantly with changes in volume . we experience fluctuations in operating results and cash flows depending on fluctuations in our revenue level . in 2018 , $ 47.0 million of cash was provided by operating activities . this compares to $ 56.3 million of cash provided by operations in 2017. cash and cash equivalents at december 31 , 2018 was $ 178.0 million , compared to $ 133.4 million at december 31 , 2017. approximately $ 16.2 million of cash was located in foreign jurisdictions as of december 31 , 2018. in addition to the cash and cash equivalent balance at december 31 , 2018 , we had $ 6.9 million in restricted cash which relates to a $ 5.9 million letter of credit associated with the security deposit for the lease on our corporate headquarters in beverly , massachusetts , a $ 0.8 million letter of credit relating to workers ' compensation insurance , a $ 0.1 million bank guarantee and a $ 0.1 million deposit relating to customs activity . working capital at december 31 , 2018 was $ 311.8 million . at december 31 , 2018 , we had no bank debt . capital expenditures were $ 4.7 million and $ 7.3 million for the years ended december 31 , 2018 and 2017 , respectively .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our liquidity is affected by many factors . some of these relate specifically to the operations of our business . for example , our sales and other factors relate to the uncertainties of global economies , including the availability of credit and the condition of the overall semiconductor capital equipment industry . our established cost structure does not vary significantly with changes in volume . we experience fluctuations in operating results and cash flows depending on fluctuations in our revenue level . in 2018 , $ 47.0 million of cash was provided by operating activities . this compares to $ 56.3 million of cash provided by operations in 2017. cash and cash equivalents at december 31 , 2018 was $ 178.0 million , compared to $ 133.4 million at december 31 , 2017. approximately $ 16.2 million of cash was located in foreign jurisdictions as of december 31 , 2018. in addition to the cash and cash equivalent balance at december 31 , 2018 , we had $ 6.9 million in restricted cash which relates to a $ 5.9 million letter of credit associated with the security deposit for the lease on our corporate headquarters in beverly , massachusetts , a $ 0.8 million letter of credit relating to workers ' compensation insurance , a $ 0.1 million bank guarantee and a $ 0.1 million deposit relating to customs activity . working capital at december 31 , 2018 was $ 311.8 million . at december 31 , 2018 , we had no bank debt . capital expenditures were $ 4.7 million and $ 7.3 million for the years ended december 31 , 2018 and 2017 , respectively . ``` Suspicious Activity Report : we also continued to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions . the market for our systems and aftermarket products and services is represented by a relatively small number of companies . in 2018 , the top 20 semiconductor chip manufacturers accounted for approximately 88.8 % of total semiconductor capital equipment spending , down from 90.9 % in 2017. our net revenue from our ten largest customers accounted for 76.9 % of total revenue for the year ended december 31 , 2018 compared to 73.3 % and 70.2 % of revenue for the years ended december 31 , 2017 and 2016 , respectively . for the year ended december 31 , 2018 , we had two customers representing 20.1 % and 12.1 % of total revenue , respectively . critical accounting estimates management 's discussion and analysis of our financial condition and results of operations are based upon axcelis ' consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . on an on‑going basis , we evaluate our estimates and assumptions . management 's estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and 18 liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following accounting policies are critical in the portrayal of our financial condition and results of operations and require management 's most significant judgments and estimates in the preparation of our consolidated financial statements . for additional accounting policies see note 2 to the consolidated financial statements for the year ended december 31 , 2018 included in this annual report on form 10-k. revenue recognition our accounting policies relating to the recognition of revenue require management to make estimates , determinations and judgments based on historical experience and on various other assumptions , which include ( i ) the existence of a contract with the customer , ( ii ) the identification of the performance obligations in the contract , ( iii ) the value of any variable consideration in the contract , ( iv ) the stand alone selling price of multiple obligations in the contract , for the purpose of allocating the consideration in the contract , and ( v ) determining when a performance obligation has been met . our revenue recognition policies are set forth in section ( i ) of note 2 , summary of significant accounting policies , to the consolidated financial statements for the year ended december 31 , 2018 included in this annual report on form 10-k. recognition of revenue based on incorrect judgments , including an erroneous allocation of the estimated sales price between the units of accounting , could result in inappropriate recognition of revenue , or incorrect timing of revenue recognition , which could have a material effect on our financial condition and results of operations . impairment of long‑lived assets we record impairment losses on long‑lived assets when events and circumstances indicate that these assets might not be recoverable . recoverability is measured by a comparison of the assets ' carrying amount to their expected future undiscounted net cash flows . if such assets are considered to be impaired , the impairment is measured based on the amount by which the carrying value exceeds its fair value . actual performance could be materially different from our current forecasts , which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long‑lived assets in the future . this could be caused by strategic decisions made in response to economic and competitive conditions , the impact of the economic environment on our customer base or a material adverse change in our relationships with significant customers . we did not record an impairment charge in the years ended december 31 , 2018 , 2017 or 2016. accounts receivable—allowance for doubtful accounts we record 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 established based on a specific assessment of collectability of our customer accounts . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be necessary . inventory—provision for excess and obsolescence and lower of cost or net realizable value we record a provision for estimated excess and obsolete inventory and lower of cost or net realizable value . the provision is determined using management 's assumptions of materials usage , based on estimates of forecasted and historical demand and market conditions . if actual market conditions become less favorable than those projected by management , additional inventory write‑downs may be required . although we make every effort to ensure the accuracy of our forecasts or product demand and pricing assumptions , any significant unanticipated changes in demand , pricing , or technical developments would significantly impact the value of our inventory and our reported operating results . in the future , if we determine that inventory needs 19 to be written down , we will recognize such costs in our cost of revenue at the time of such determination . if we subsequently sell product that has previously been written down , our gross margin in that period will be favorably impacted . story_separator_special_tag 24 operating expenses the following table sets forth our operating expenses : replace_table_token_4_th our operating expenses consist primarily of personnel costs , including salaries , commissions , bonuses , stock-based compensation and related benefits and taxes ; project material costs related to the design and development of new products and enhancement of existing products ; and professional fees , travel and depreciation expenses . personnel costs are our largest expense , representing $ 74.3 million , or 62.1 % of our total operating expenses , for the year ended december 31 , 2018 ; $ 64.5 million , or 63.0 % , of our total operating expenses for the year ended december 31 , 2017 ; and $ 47.6 million , or 57.5 % , of our total operating expenses for the year ended december 31 , 2016. research and development replace_table_token_5_th our ability to remain competitive depends largely on continuously developing innovative technology , with new and enhanced features and systems and introducing them at competitive prices on a timely basis . accordingly , based on our strategic plan , we establish annual r & d budgets to fund programs that we expect will drive competitive advantages . 2018 compared with 2017 research and development expense was $ 51.9 million in 2018 , an increase of $ 8.8 million , or 20.4 % , compared with $ 43.1 million in 2017. the increase was primarily due to increased headcount and to project costs to support development of new purion products and extensions . 2017 compared with 2016 research and development expense was $ 43.1 million in 2017 , an increase of approximately $ 8.7 million , or 25.2 % , compared with $ 34.4 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . 25 sales and marketing replace_table_token_6_th our sales and marketing expenses result primarily from the sale of our equipment and services through our direct sales force . 2018 compared with 2017 sales and marketing expense was $ 34.6 million in 2018 , an increase of $ 6.1 million , or 21.3 % , compared with $ 28.5 million in 2017. the increase was primarily due to increased headcount . 2017 compared with 2016 sales and marketing expense was $ 28.5 million in 2017 , an increase of $ 4.7 million , or 19.7 % , compared with $ 23.8 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . general and administrative replace_table_token_7_th our general and administrative expenses result primarily from the costs associated with our executive , finance , information technology , legal and human resource functions . 2018 compared with 2017 general and administrative expense was $ 33.2 million in 2018 , an increase of $ 2.4 million , or 7.8 % compared with $ 30.8 million in 2017. the increase was primarily due to increases in professional and consulting fees and to a lesser extent , increased headcount . 2017 compared with 2016 general and administrative expense was $ 30.8 million in 2017 , an increase of $ 6.4 million , or 26.0 % compared with $ 24.5 million in 2016. the increase was primarily due to variable incentive plan expense and to a lesser extent to increased headcount . 26 restructuring we from time to time incur expenses relating to restructuring . 2017 compared with 2016 during the year ended december 31 , 2016 we recorded $ 0.3 million to restructuring expense due to a consolidation in our customer base . other ( expense ) income other ( expense ) income consists primarily of interest expense relating to the lease obligation we incurred in connection with the 2015 sale of our headquarters facility ( “ sale leaseback ” ) and other financing obligations , foreign exchange gains and losses attributable to fluctuations of the u.s. dollar against the local currencies of certain of the countries in which we operate , as well as interest earned on our invested cash balances . replace_table_token_8_th 2018 compared with 2017 other expense for the year ended december 31 , 2018 was $ 5.3 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation , $ 1.3 million of foreign currency translation losses , other miscellaneous expense of $ 1.2 million , partially offset by interest income of $ 2.3 million . other expense for the year ended december 31 , 2017 was $ 4.0 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation and other miscellaneous expense of $ 0.7 million , partially offset by interest income of $ 0.7 million and $ 1.1 million of foreign currency translation gains . 2017 compared with 2016 other expense for the year ended december 31 , 2017 was $ 4.0 million , which includes $ 5.1 million of interest expense related to our sale leaseback obligation and other miscellaneous expense of $ 0.7 million , offset by interest income of $ 0.7 million and $ 1.1 million of foreign currency translation gains . other expense for the year ended december 31 , 2016 was $ 5.6 million and includes interest expense of $ 5.1 million , interest income of $ 0.2 million and $ 0.6 million of foreign currency translation loss . income taxes replace_table_token_9_th 27 2018 compared with 2017 income tax expense was $ 8.8 million for the year ended december 31 , 2018 compared to an income tax benefit of $ 83.1 million in the previous year . the income tax expense of $ 8.8 million in 2018 reflects a net effective tax rate of 16.1 % on our worldwide pre-tax income . the income tax benefit of $ 83.1 million in 2017 was primarily due to the release of our valuation allowance on our deferred tax assets . we have significant net operating loss carryforwards in the united

we believe the epam brand name and our reputation are important corporate assets that help distinguish our services from those of our competitors and also contribute to our efforts to recruit and retain talented employees in cee and the cis . we seek to accurately manage our pricing and cost estimates when negotiating contract terms with our clients to ensure we are able to maintain appropriate levels of project profitability while providing a high quality of service . we also seek to maintain optimal resource utilization levels and productivity with the efficient allocation of our it professionals and facilities in our development centers in cee and the cis . we believe that the most significant factors affecting our results of operations include : market demand for software development services ; economic growth rates in the industries and countries in which our clients operate ; shortages of skilled it professionals in the united states and europe ; isvs and technology companies increasingly outsourcing work to it service professionals to more efficiently scale their operations with strong software engineering skills ; wage rates in countries where we operate , particularly in cee countries where most of our employees are based ; and changes in foreign exchange rates , especially relative changes in exchange rates between the u.s dollar and the british pound , euro , russian ruble and hungarian forint . our results of operations in any given period are also directly affected by company-specific factors , including : our ability to obtain new clients and generate repeat business from existing clients ; our ability to expand the quality , range and delivery of our portfolio of service offerings and our expertise relative to our competitors ; our ability to efficiently manage and utilize our it professionals ; and our ability to identify , integrate and effectively manage businesses that we acquire . certain income statement line items revenues revenues are derived primarily from providing software development services to our clients . during the third quarter of 2008 , we started to experience a decrease in demand for our services as a result of the global economic downturn , which also continued to adversely affect demand during 2009. however , in 2010 and 2011 we experienced rapid growth in demand for our services and significantly expanded our business . in 2010 , revenues increased by 47.9 % to $ 221.8 million from $ 149.9 million in 2009 , and increased by 50.8 % to $ 334.5 million in 2011 from $ 221.8 million in 2010. we discuss below the breakdown of our revenues by service offering , vertical , client location , contract type and client concentration . revenues consist of it services revenues and reimbursable expenses and other revenues , which primarily include travel and entertainment costs that are chargeable to clients . 53 revenues by service offering software development includes software product development , custom application development services and enterprise application platforms services , and has historically represented , and we expect to continue to represent , the substantial majority of our business . the following table sets forth revenues by service offering by amount and as a percentage of our revenues for the periods indicated : replace_table_token_10_th revenues by vertical the foundation we have built with isvs and technology companies has enabled us to leverage our strong domain knowledge and industry-specific knowledge capabilities to become a premier it services provider to a range of additional verticals such as banking and financial services , business information and media , travel and hospitality and retail and consumer . the following table sets forth revenues by vertical by amount and as a percentage of our revenues for the periods indicated : replace_table_token_11_th 54 revenues by client location our revenues are sourced from three geographic markets : north america , europe and the cis . we present our revenues by client location based on the location of the specific client site that we serve , irrespective of the location of the headquarters of the client or the location of the delivery center where the work is performed . as such , revenues by client location differ from the segment information in our audited consolidated financial statements included elsewhere in this annual report , which is not solely based on the geographic location of the clients but rather is based on managerial responsibility for a particular client regardless of client location . the following table sets forth revenues by client location by amount and as a percentage of our revenues for the periods indicated : replace_table_token_12_th revenues by contract type our services are performed under both time-and-material and fixed-price arrangements . our engagement models depend on the type of services provided to a client , the mix and locations of professionals involved and the business outcomes our clients are looking to achieve . historically , the majority of our revenues have been generated under time-and-material contracts . under time-and-material contracts , we are compensated for actual time incurred by our it professionals at negotiated hourly , daily or monthly rates . fixed-price contracts require us to perform services throughout the contractual period and we are paid in installments on pre-agreed intervals . we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . the following table sets forth revenues by contract type by amount and as a percentage of our revenues for the periods indicated : replace_table_token_13_th revenues by client concentration we have grown our revenues from our clients by continually expanding the scope and size of our engagements , and we have grown our key client base through internal business development efforts and several strategic acquisitions . 55 our focus on delivering quality to our clients is reflected by an average of 86.0 % and 70.5 % of our revenues in 2011 coming from clients that had used our services for at least two and three years , respectively . story_separator_special_tag there is no assurance that we would be able to raise additional funds on favorable terms or at all . off-balance sheet commitments and arrangements we do not have any investments in special purpose entities or undisclosed borrowings or debt . accordingly , our results of operations , financial condition and cash flows are not subject to off-balance sheet risks . critical accounting policies we prepare our audited consolidated financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) , which require us to make judgments , estimates and assumptions that affect : ( i ) the reported amounts of assets and liabilities , ( ii ) disclosure of contingent assets and liabilities at the end of each reporting period and ( iii ) the reported amounts of revenues and expenses during each reporting period . we evaluate these estimates and assumptions based on historical experience , knowledge and assessment of current business and other conditions , and expectations regarding the future based on available information and reasonable assumptions , which together form a basis for making judgments about matters not readily apparent from other sources . since the use of estimates is an integral component of the financial reporting process , actual results could differ from those estimates . some of our accounting policies require higher degrees of judgment than others in their application . when reviewing our audited consolidated financial statements , you should consider ( i ) our selection of critical accounting policies , ( ii ) the judgment and other uncertainties affecting the application of such policies and ( iii ) the sensitivity of reported results to changes in conditions and assumptions . we consider the policies discussed below to be critical to an understanding of our audited consolidated financial statements as their application places significant demands on the judgment of our management . an accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates that reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the audited consolidated financial statements . we believe that the following critical accounting policies are the most sensitive and require more significant estimates and assumptions used in the preparation of our audited consolidated financial statements . you should read the following descriptions of critical accounting policies , judgments and estimates in conjunction with our audited consolidated financial statements and other disclosures included in this annual report . revenue recognition we generate revenues primarily from software development services . we recognize revenues when realized or realizable and earned , which is when the following criteria are met : persuasive evidence of an arrangement exists ; delivery has occurred ; the sales price is fixed or determinable ; and collectability is reasonably assured . if there is an uncertainty about the project completion or receipt of payment for the consulting services , revenues are deferred until the uncertainty is sufficiently resolved . at the time revenues are recognized , we provide for client incentive programs and reduce revenues accordingly . we defer amounts billed to our clients for revenues not yet earned . such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods . unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms . all such amounts are anticipated to be realized in subsequent periods . 63 our services are performed under both time-and-material and fixed-price contracts arrangements . for revenues generated under time-and-material contracts , revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues when incurred . the majority of such revenues are billed on an hourly , daily or monthly basis whereby actual time is charged directly to the client . we recognize revenues from fixed-price contracts based on the proportional performance method . in instances where final acceptance of the product , system or solution is specified by the client , revenues are deferred until all acceptance criteria have been met . in absence of a sufficient basis to measure progress towards completion , revenues are recognized upon receipt of final acceptance from the client . the complexity of the estimation process and factors relating to the assumptions , risks and uncertainties inherent with the application of the proportional performance method of accounting affects the amounts of revenues and related expenses reported in our audited consolidated financial statements . a number of internal and external factors can affect our estimates , including labor hours and specification and testing requirement changes . the cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known . our fixed price contracts are generally recognized over a period of twelve months or less . we enter into multiple element arrangements with our clients under time-and-material and fixed-fee contracts . in october 2009 , the fasb issued a new accounting standard which provides guidance for arrangements with multiple deliverables . we adopted this standard effective january 1 , 2010 for all new or amended contracts , and it did not have a material effect on our financial condition or consolidated results of operations , or change our units of accounting and how we allocate the arrangement consideration to various units of accounting . these arrangements consist of development services and other service deliverables that qualify for separate units of accounting . these other services include maintenance and support services for our time-and-material contracts and separately priced warranties for our fixed-fee contracts . these deliverables qualify for multiple units of accounting and therefore arrangement consideration is allocated among the units of accounting based on their relative selling price . the relative selling price is

capital resources at december 31 , 2011 , our principal sources of liquidity were cash and cash equivalents totaling $ 88.8 million and $ 30.0 million of available borrowings under our revolving line of credit . at december 31 , 2011 , we had cash and cash equivalents of $ 88.8 million , of which $ 55.5 million was held outside the united states , including $ 24.2 million held in u.s. dollar denominated accounts in belarus , which accrued at an average interest rate of 6.5 % during 2010 and 2011. we have a $ 30.0 million revolving line of credit with pnc bank , national association . advances under our revolving line of credit accrue interest at an annual rate equal to the london interbank offer rate , or libor , plus 1.25 % . our revolving line of credit is secured by the grant of a security interest in all of our u.s. trade receivables and cash on hand in favor of the bank and contains customary financial and reporting covenants and limitations . we are currently in compliance with all covenants contained in our revolving line of credit and believe that our revolving line of credit provides sufficient flexibility so that we will remain in compliance with its terms in the foreseeable future . our revolving line of credit expires on october 15 , 2013. at december 31 , 2011 , we had no borrowings outstanding under our revolving line of credit . the cash and cash equivalents held at locations outside of the united states are for future operating expenses and we have no intention of repatriating those funds . we are not , however , restricted in repatriating those funds back to the united states , if necessary . if we decide to remit funds to the united states in the form of dividends , $ 55.1 million would be subject to foreign withholding taxes , of which $ 46 million would also be 60 subject to u.s. corporate income tax .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 at december 31 , 2011 , our principal sources of liquidity were cash and cash equivalents totaling $ 88.8 million and $ 30.0 million of available borrowings under our revolving line of credit . at december 31 , 2011 , we had cash and cash equivalents of $ 88.8 million , of which $ 55.5 million was held outside the united states , including $ 24.2 million held in u.s. dollar denominated accounts in belarus , which accrued at an average interest rate of 6.5 % during 2010 and 2011. we have a $ 30.0 million revolving line of credit with pnc bank , national association . advances under our revolving line of credit accrue interest at an annual rate equal to the london interbank offer rate , or libor , plus 1.25 % . our revolving line of credit is secured by the grant of a security interest in all of our u.s. trade receivables and cash on hand in favor of the bank and contains customary financial and reporting covenants and limitations . we are currently in compliance with all covenants contained in our revolving line of credit and believe that our revolving line of credit provides sufficient flexibility so that we will remain in compliance with its terms in the foreseeable future . our revolving line of credit expires on october 15 , 2013. at december 31 , 2011 , we had no borrowings outstanding under our revolving line of credit . the cash and cash equivalents held at locations outside of the united states are for future operating expenses and we have no intention of repatriating those funds . we are not , however , restricted in repatriating those funds back to the united states , if necessary . if we decide to remit funds to the united states in the form of dividends , $ 55.1 million would be subject to foreign withholding taxes , of which $ 46 million would also be 60 subject to u.s. corporate income tax . ``` Suspicious Activity Report : we believe the epam brand name and our reputation are important corporate assets that help distinguish our services from those of our competitors and also contribute to our efforts to recruit and retain talented employees in cee and the cis . we seek to accurately manage our pricing and cost estimates when negotiating contract terms with our clients to ensure we are able to maintain appropriate levels of project profitability while providing a high quality of service . we also seek to maintain optimal resource utilization levels and productivity with the efficient allocation of our it professionals and facilities in our development centers in cee and the cis . we believe that the most significant factors affecting our results of operations include : market demand for software development services ; economic growth rates in the industries and countries in which our clients operate ; shortages of skilled it professionals in the united states and europe ; isvs and technology companies increasingly outsourcing work to it service professionals to more efficiently scale their operations with strong software engineering skills ; wage rates in countries where we operate , particularly in cee countries where most of our employees are based ; and changes in foreign exchange rates , especially relative changes in exchange rates between the u.s dollar and the british pound , euro , russian ruble and hungarian forint . our results of operations in any given period are also directly affected by company-specific factors , including : our ability to obtain new clients and generate repeat business from existing clients ; our ability to expand the quality , range and delivery of our portfolio of service offerings and our expertise relative to our competitors ; our ability to efficiently manage and utilize our it professionals ; and our ability to identify , integrate and effectively manage businesses that we acquire . certain income statement line items revenues revenues are derived primarily from providing software development services to our clients . during the third quarter of 2008 , we started to experience a decrease in demand for our services as a result of the global economic downturn , which also continued to adversely affect demand during 2009. however , in 2010 and 2011 we experienced rapid growth in demand for our services and significantly expanded our business . in 2010 , revenues increased by 47.9 % to $ 221.8 million from $ 149.9 million in 2009 , and increased by 50.8 % to $ 334.5 million in 2011 from $ 221.8 million in 2010. we discuss below the breakdown of our revenues by service offering , vertical , client location , contract type and client concentration . revenues consist of it services revenues and reimbursable expenses and other revenues , which primarily include travel and entertainment costs that are chargeable to clients . 53 revenues by service offering software development includes software product development , custom application development services and enterprise application platforms services , and has historically represented , and we expect to continue to represent , the substantial majority of our business . the following table sets forth revenues by service offering by amount and as a percentage of our revenues for the periods indicated : replace_table_token_10_th revenues by vertical the foundation we have built with isvs and technology companies has enabled us to leverage our strong domain knowledge and industry-specific knowledge capabilities to become a premier it services provider to a range of additional verticals such as banking and financial services , business information and media , travel and hospitality and retail and consumer . the following table sets forth revenues by vertical by amount and as a percentage of our revenues for the periods indicated : replace_table_token_11_th 54 revenues by client location our revenues are sourced from three geographic markets : north america , europe and the cis . we present our revenues by client location based on the location of the specific client site that we serve , irrespective of the location of the headquarters of the client or the location of the delivery center where the work is performed . as such , revenues by client location differ from the segment information in our audited consolidated financial statements included elsewhere in this annual report , which is not solely based on the geographic location of the clients but rather is based on managerial responsibility for a particular client regardless of client location . the following table sets forth revenues by client location by amount and as a percentage of our revenues for the periods indicated : replace_table_token_12_th revenues by contract type our services are performed under both time-and-material and fixed-price arrangements . our engagement models depend on the type of services provided to a client , the mix and locations of professionals involved and the business outcomes our clients are looking to achieve . historically , the majority of our revenues have been generated under time-and-material contracts . under time-and-material contracts , we are compensated for actual time incurred by our it professionals at negotiated hourly , daily or monthly rates . fixed-price contracts require us to perform services throughout the contractual period and we are paid in installments on pre-agreed intervals . we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . the following table sets forth revenues by contract type by amount and as a percentage of our revenues for the periods indicated : replace_table_token_13_th revenues by client concentration we have grown our revenues from our clients by continually expanding the scope and size of our engagements , and we have grown our key client base through internal business development efforts and several strategic acquisitions . 55 our focus on delivering quality to our clients is reflected by an average of 86.0 % and 70.5 % of our revenues in 2011 coming from clients that had used our services for at least two and three years , respectively . story_separator_special_tag there is no assurance that we would be able to raise additional funds on favorable terms or at all . off-balance sheet commitments and arrangements we do not have any investments in special purpose entities or undisclosed borrowings or debt . accordingly , our results of operations , financial condition and cash flows are not subject to off-balance sheet risks . critical accounting policies we prepare our audited consolidated financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) , which require us to make judgments , estimates and assumptions that affect : ( i ) the reported amounts of assets and liabilities , ( ii ) disclosure of contingent assets and liabilities at the end of each reporting period and ( iii ) the reported amounts of revenues and expenses during each reporting period . we evaluate these estimates and assumptions based on historical experience , knowledge and assessment of current business and other conditions , and expectations regarding the future based on available information and reasonable assumptions , which together form a basis for making judgments about matters not readily apparent from other sources . since the use of estimates is an integral component of the financial reporting process , actual results could differ from those estimates . some of our accounting policies require higher degrees of judgment than others in their application . when reviewing our audited consolidated financial statements , you should consider ( i ) our selection of critical accounting policies , ( ii ) the judgment and other uncertainties affecting the application of such policies and ( iii ) the sensitivity of reported results to changes in conditions and assumptions . we consider the policies discussed below to be critical to an understanding of our audited consolidated financial statements as their application places significant demands on the judgment of our management . an accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates that reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the audited consolidated financial statements . we believe that the following critical accounting policies are the most sensitive and require more significant estimates and assumptions used in the preparation of our audited consolidated financial statements . you should read the following descriptions of critical accounting policies , judgments and estimates in conjunction with our audited consolidated financial statements and other disclosures included in this annual report . revenue recognition we generate revenues primarily from software development services . we recognize revenues when realized or realizable and earned , which is when the following criteria are met : persuasive evidence of an arrangement exists ; delivery has occurred ; the sales price is fixed or determinable ; and collectability is reasonably assured . if there is an uncertainty about the project completion or receipt of payment for the consulting services , revenues are deferred until the uncertainty is sufficiently resolved . at the time revenues are recognized , we provide for client incentive programs and reduce revenues accordingly . we defer amounts billed to our clients for revenues not yet earned . such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods . unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms . all such amounts are anticipated to be realized in subsequent periods . 63 our services are performed under both time-and-material and fixed-price contracts arrangements . for revenues generated under time-and-material contracts , revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues when incurred . the majority of such revenues are billed on an hourly , daily or monthly basis whereby actual time is charged directly to the client . we recognize revenues from fixed-price contracts based on the proportional performance method . in instances where final acceptance of the product , system or solution is specified by the client , revenues are deferred until all acceptance criteria have been met . in absence of a sufficient basis to measure progress towards completion , revenues are recognized upon receipt of final acceptance from the client . the complexity of the estimation process and factors relating to the assumptions , risks and uncertainties inherent with the application of the proportional performance method of accounting affects the amounts of revenues and related expenses reported in our audited consolidated financial statements . a number of internal and external factors can affect our estimates , including labor hours and specification and testing requirement changes . the cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known . our fixed price contracts are generally recognized over a period of twelve months or less . we enter into multiple element arrangements with our clients under time-and-material and fixed-fee contracts . in october 2009 , the fasb issued a new accounting standard which provides guidance for arrangements with multiple deliverables . we adopted this standard effective january 1 , 2010 for all new or amended contracts , and it did not have a material effect on our financial condition or consolidated results of operations , or change our units of accounting and how we allocate the arrangement consideration to various units of accounting . these arrangements consist of development services and other service deliverables that qualify for separate units of accounting . these other services include maintenance and support services for our time-and-material contracts and separately priced warranties for our fixed-fee contracts . these deliverables qualify for multiple units of accounting and therefore arrangement consideration is allocated among the units of accounting based on their relative selling price . the relative selling price is

our actual results could differ materially from those anticipated in these forward-looking statements , which are subject to a number of risks , uncertainties and assumptions described in the “ risk factors ” section and elsewhere in this report . company history we were originally incorporated in the state of delaware in june 1985 under the name vocaltech , inc. to develop , design , manufacture and market products utilizing proprietary speech-generated tactile feedback devices . we completed our initial public offering of our securities in october 1987. in january 1992 , we effected a 1-for-6.3 reverse stock split of our common stock . we changed our name to innotek , inc. in november 1992. in december 1994 , we acquired all of the outstanding stock of innovisions , inc. , a developer and marketer of skin protective products , discontinued our prior operations in their entirety and changed our name to dermarx corporation . in april 2000 , we effected a reverse merger with a subsidiary of go public network , inc. , which was engaged in assisting early-stage development and emerging growth companies with financial and business development services . we changed our name to gopublicnow.com , inc. , effected a 1-for-5 reverse stock split and discontinued our prior operations in their entirety . in november 2000 , we changed our name to gpn network , inc. in july 2001 , we discontinued the operations of gpn network , inc. in their entirety and began looking for appropriate merger partners . our objective became the acquisition of an operating company with the potential for growth in exchange for our securities . in july 2003 , we effected a reverse merger with immuneregen biosciences , inc. , adopted our current business model and thereafter changed our name to ir biosciences holdings , inc. in july 2003 , we effected a 1-for-20 reverse stock split , and in april 2004 , we effected a 2-for-1 stock split . in june 2006 , our stockholders voted to increase the number of authorized shares of common stock to 250,000,000. on august 1 , 2008 , the company effected a 1-for-10 reverse stock split of all of its issued and outstanding shares of common stock and simultaneously reduced its authorized shares of common stock to 100,000,000 ; par value remained unchanged . accordingly , the number of shares and per share amounts included in the consolidated financial statements and the accompanying notes included in the f- section have been adjusted to reflect the reverse stock split retroactively . unless otherwise indicated , all references to number of share , per share amounts and earnings per share information contained in this report give effect to the 1-for-10 reverse stock split . immuneregen biosciences , inc. was incorporated in october 2002 ; all information contained herein refers to the operations of immuneregen biosciences , inc. , our wholly-owned operational subsidiary . overview we continue to engage in research and development activities focused on developing therapies in pulmonology , immunology and hematology , and in developing proprietary therapeutics through phase i / ii clinical studies while seeking out-licensing arrangements and collaborations with partners to complete development and achieve commercialization . we have not commenced any product commercialization and , until such time , we will not generate significant product revenues . our accumulated deficit has increased , from $ 24,556,491 at december 31 , 2008 to $ 27,759,973 at december 31 , 2009. operating losses are expected to continue for the foreseeable future and until such time as the company is able obtain a pharmaceutical partner or attain sales levels sufficient to support operations . in 2010 we will continue research and development activities , as well as the activities necessary to develop commercial partnerships and licenses . expenditure of financial resources in 2010 will fall principally into five broad categories , as follows : research and development ; personnel ; consulting and professional ( except legal and accounting ) ; legal and accounting ; and public relations , investor relations and shareholder relations . 58 the preliminary results of our pre-clinical studies may not be indicative of results that will be obtained from subsequent studies or from more extensive trials . further , our pre-clinical or clinical trials may not be successful , and we may not be able to obtain the required regulatory approvals in a timely fashion , or at all . see `` risk factors . `` story_separator_special_tag in a timely manner on a basis favorable to us , or at all . if we are unable to raise needed funds , we will not be able to develop or enhance our potential products , take advantage of future opportunities or respond to competitive pressures or unanticipated requirements . a material shortage of capital will require us to take drastic steps such as reducing our level of operations , disposing of selected assets or seeking an acquisition partner . during fiscal year 2010 , we will pay our chief executive officer , chief financial officer and chief scientific officer an aggregate of $ 775,000 pursuant to their employment agreements . as of december 31 , 2009 we have $ 9,068,889 in notes payable , of which $ 2,000,000 is current on december 31 , 2009 and of which $ 1,500,000 is callable by the noteholder at any time after december 31 , 2009. any amount redeemed by this call provision will be subject to a 20 % redemption premium payable to the holder of the note . the company and the lender are currently in negotiations to restructure the terms of the call provision . an additional $ 1,000,000 matures on may 31 , 2011 and the remaining balance of $ 6,068,889 will mature in 2013 and beyond . story_separator_special_tag until such time , if at all , as we receive adequate funding , we intend to continue to defer payment of all of our obligations which are capable of being deferred , which actions have resulted in some vendors demanding cash payment for their goods and services in advance , and other vendors refusing to continue to do business with us . we do not expect to generate a positive cash flow from our operations for at least several years , if at all , due to anticipated expenditures for research and development activities , administrative and marketing activities , and working capital requirements and expect to continue to attempt to raise further capital through one or more further private placements . we believe that we will require an additional $ 3,500,000 to meet our expenses over the next 12 months . critical accounting policies the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and judgments that affect our reported assets , liabilities , revenues , and expenses , and the disclosure of contingent assets and liabilities . we base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances . future events , however , may differ markedly from our current expectations and assumptions . while there are a number of significant accounting policies affecting our consolidated financial statements ; we believe the following critical accounting policy involves the most complex , difficult and subjective estimates and judgments : 60 stock-based compensation the company accounts for our stock based awards in accordance with accounting standards codification subtopic 718-10 , compensation ( “ asc 718-10 ” ) . , which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors , including employee stock options and restricted stock awards . the company estimates the fair value of stock options granted using the black-scholes valuation model . this model requires us to make estimates and assumptions including , among other things , estimates regarding the length of time an employee will retain vested stock options before exercising them , the estimated volatility of our common stock price and the number of options that will be forfeited prior to vesting . the fair value is then amortized on a straight-line basis over the requisite service periods of the awards , which is generally the vesting period . changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently , the related amount recognized in our consolidated statements of operations . the expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards , giving consideration to the contractual terms , vesting schedules and expectations of future employee behavior . recent accounting pronouncements for a discussion of new accounting pronouncements affecting the company , refer to note 1 of notes to financial statements . result of operations comparison of results for the fiscal year ended december 31 , 2009 , to the fiscal year ended december 31 , 2008. revenues we have not generated any revenues from operations from our inception . we believe we will begin earning revenues from operations during calendar year 2010 as we transition from a development stage company . 61 costs and expenses from our inception through december 31 , 2009 , we have incurred losses of $ 27,759,973. these expenses were associated principally with equity-based compensation to employees and consultants , product development costs and professional services , interest expense and equity based compensation to stockholders for the penalty incurred for the late registration of shares . selling , general and administrative expenses we were successful in cutting costs in 2009. selling , general and administrative expenses were reduced from $ 5,024,013 for the fiscal year ended december 31 , 2008 to $ 3,126,423 for the fiscal year ended december 31 , 2009 , a cost savings of $ 1,897,590 or approximately 38 % . this was mostly because payroll and related expenses were cut by $ 418,411 ( 29.8 % ) from $ 1,405,528 in 2008 to $ 987,117 in 2009 , research and development cost were reduced by 732,787 ( 56.7 % ) , legal and accounting fees were reduced by $ 310,312 ( 33.9 % ) , non-cash compensation was reduced by $ 128,972 ( 35.8 % ) and travel and entertainment costs were reduced by $ 94,444 ( 49.4 % ) . interest expense for the twelve months ending december 31 , 2009 , interest expense ( net ) was $ 2,163,065 an increase of approximately 258 % compared to interest income ( net ) of $ 603,965 during the 12 months ended december 31 , 2008. interest expense increased during 2009 and we expect it to remain the same during the coming twelve months as we have accrued a full year of interest expenses on the convertible debentures we issued in january , june and august of 2008. net loss for the reasons stated above , our net loss for the twelve months ending december 31 , 2009 was $ 6,462,817 or $ 0.49 per share versus a net loss for the twelve months ending december 31 , 2008 of $ 5,807,353 or $ 0.49 per share . for the period of inception ( october 30 , 2002 ) through december 31 , 2009 , our net loss was $ 27,759,973 , or $ 3.55 per share . we expect that losses will continue at least through the year ending december 31 , 2011. our independent certified public accountants have stated in their report included in this form 10-k that we have incurred a net loss and negative cash flows from operations of $ 6,462,817 and $ 2,876,417 , respectively , for the year ended december

liquidity and capital resources at december 31 , 2009 , we had current assets of $ 348,656 consisting of cash and cash equivalents of $ 280,309 , and prepaid assets and other current assets of $ 68,347. also , at december 31 , 2009 , we had current liabilities of $ 3,085,501 , consisting of accounts payable and accrued liabilities of $ 785,501 , notes payable of $ 2,000,000 and a redemption option liability of $ 300,000. this resulted in a working capital deficit of $ 2,736,845. during the twelve months ended december 31 , 2009 , we used cash in operating activities of $ 2,876,417. from the date of inception ( october 30 , 2002 ) to december 31 , 2009 , we had a net loss of $ 27,759,973 and used cash of $ 16,095,893 in operating activities . we met our cash requirements from our inception ( october 30 , 2002 ) through december 31 , 2009 via the private placement of $ 7,889,151 of our common stock and $ 8,573,628 from the issuance of notes payable , net of repayments . continued losses and lack of liquidity indicate that we may not be able to continue as a going concern for a reasonable period of time . the ability to continue as a going concern is dependent upon several factors including , but not limited to , the ability to generate sufficient cash flow to meet obligations on a timely basis , obtain additional financing and continue to obtain supplies and services from vendors . we currently have no revenue . there is no guarantee that our business model will be successful , or that we will be able to generate sufficient revenue to fund future operations . as a result , we expect our operations to continue to use net cash , and that we will be required to seek additional debt or equity financings during the coming quarters . since inception , we have financed our operations through debt and equity financing .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources at december 31 , 2009 , we had current assets of $ 348,656 consisting of cash and cash equivalents of $ 280,309 , and prepaid assets and other current assets of $ 68,347. also , at december 31 , 2009 , we had current liabilities of $ 3,085,501 , consisting of accounts payable and accrued liabilities of $ 785,501 , notes payable of $ 2,000,000 and a redemption option liability of $ 300,000. this resulted in a working capital deficit of $ 2,736,845. during the twelve months ended december 31 , 2009 , we used cash in operating activities of $ 2,876,417. from the date of inception ( october 30 , 2002 ) to december 31 , 2009 , we had a net loss of $ 27,759,973 and used cash of $ 16,095,893 in operating activities . we met our cash requirements from our inception ( october 30 , 2002 ) through december 31 , 2009 via the private placement of $ 7,889,151 of our common stock and $ 8,573,628 from the issuance of notes payable , net of repayments . continued losses and lack of liquidity indicate that we may not be able to continue as a going concern for a reasonable period of time . the ability to continue as a going concern is dependent upon several factors including , but not limited to , the ability to generate sufficient cash flow to meet obligations on a timely basis , obtain additional financing and continue to obtain supplies and services from vendors . we currently have no revenue . there is no guarantee that our business model will be successful , or that we will be able to generate sufficient revenue to fund future operations . as a result , we expect our operations to continue to use net cash , and that we will be required to seek additional debt or equity financings during the coming quarters . since inception , we have financed our operations through debt and equity financing . ``` Suspicious Activity Report : our actual results could differ materially from those anticipated in these forward-looking statements , which are subject to a number of risks , uncertainties and assumptions described in the “ risk factors ” section and elsewhere in this report . company history we were originally incorporated in the state of delaware in june 1985 under the name vocaltech , inc. to develop , design , manufacture and market products utilizing proprietary speech-generated tactile feedback devices . we completed our initial public offering of our securities in october 1987. in january 1992 , we effected a 1-for-6.3 reverse stock split of our common stock . we changed our name to innotek , inc. in november 1992. in december 1994 , we acquired all of the outstanding stock of innovisions , inc. , a developer and marketer of skin protective products , discontinued our prior operations in their entirety and changed our name to dermarx corporation . in april 2000 , we effected a reverse merger with a subsidiary of go public network , inc. , which was engaged in assisting early-stage development and emerging growth companies with financial and business development services . we changed our name to gopublicnow.com , inc. , effected a 1-for-5 reverse stock split and discontinued our prior operations in their entirety . in november 2000 , we changed our name to gpn network , inc. in july 2001 , we discontinued the operations of gpn network , inc. in their entirety and began looking for appropriate merger partners . our objective became the acquisition of an operating company with the potential for growth in exchange for our securities . in july 2003 , we effected a reverse merger with immuneregen biosciences , inc. , adopted our current business model and thereafter changed our name to ir biosciences holdings , inc. in july 2003 , we effected a 1-for-20 reverse stock split , and in april 2004 , we effected a 2-for-1 stock split . in june 2006 , our stockholders voted to increase the number of authorized shares of common stock to 250,000,000. on august 1 , 2008 , the company effected a 1-for-10 reverse stock split of all of its issued and outstanding shares of common stock and simultaneously reduced its authorized shares of common stock to 100,000,000 ; par value remained unchanged . accordingly , the number of shares and per share amounts included in the consolidated financial statements and the accompanying notes included in the f- section have been adjusted to reflect the reverse stock split retroactively . unless otherwise indicated , all references to number of share , per share amounts and earnings per share information contained in this report give effect to the 1-for-10 reverse stock split . immuneregen biosciences , inc. was incorporated in october 2002 ; all information contained herein refers to the operations of immuneregen biosciences , inc. , our wholly-owned operational subsidiary . overview we continue to engage in research and development activities focused on developing therapies in pulmonology , immunology and hematology , and in developing proprietary therapeutics through phase i / ii clinical studies while seeking out-licensing arrangements and collaborations with partners to complete development and achieve commercialization . we have not commenced any product commercialization and , until such time , we will not generate significant product revenues . our accumulated deficit has increased , from $ 24,556,491 at december 31 , 2008 to $ 27,759,973 at december 31 , 2009. operating losses are expected to continue for the foreseeable future and until such time as the company is able obtain a pharmaceutical partner or attain sales levels sufficient to support operations . in 2010 we will continue research and development activities , as well as the activities necessary to develop commercial partnerships and licenses . expenditure of financial resources in 2010 will fall principally into five broad categories , as follows : research and development ; personnel ; consulting and professional ( except legal and accounting ) ; legal and accounting ; and public relations , investor relations and shareholder relations . 58 the preliminary results of our pre-clinical studies may not be indicative of results that will be obtained from subsequent studies or from more extensive trials . further , our pre-clinical or clinical trials may not be successful , and we may not be able to obtain the required regulatory approvals in a timely fashion , or at all . see `` risk factors . `` story_separator_special_tag in a timely manner on a basis favorable to us , or at all . if we are unable to raise needed funds , we will not be able to develop or enhance our potential products , take advantage of future opportunities or respond to competitive pressures or unanticipated requirements . a material shortage of capital will require us to take drastic steps such as reducing our level of operations , disposing of selected assets or seeking an acquisition partner . during fiscal year 2010 , we will pay our chief executive officer , chief financial officer and chief scientific officer an aggregate of $ 775,000 pursuant to their employment agreements . as of december 31 , 2009 we have $ 9,068,889 in notes payable , of which $ 2,000,000 is current on december 31 , 2009 and of which $ 1,500,000 is callable by the noteholder at any time after december 31 , 2009. any amount redeemed by this call provision will be subject to a 20 % redemption premium payable to the holder of the note . the company and the lender are currently in negotiations to restructure the terms of the call provision . an additional $ 1,000,000 matures on may 31 , 2011 and the remaining balance of $ 6,068,889 will mature in 2013 and beyond . story_separator_special_tag until such time , if at all , as we receive adequate funding , we intend to continue to defer payment of all of our obligations which are capable of being deferred , which actions have resulted in some vendors demanding cash payment for their goods and services in advance , and other vendors refusing to continue to do business with us . we do not expect to generate a positive cash flow from our operations for at least several years , if at all , due to anticipated expenditures for research and development activities , administrative and marketing activities , and working capital requirements and expect to continue to attempt to raise further capital through one or more further private placements . we believe that we will require an additional $ 3,500,000 to meet our expenses over the next 12 months . critical accounting policies the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and judgments that affect our reported assets , liabilities , revenues , and expenses , and the disclosure of contingent assets and liabilities . we base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances . future events , however , may differ markedly from our current expectations and assumptions . while there are a number of significant accounting policies affecting our consolidated financial statements ; we believe the following critical accounting policy involves the most complex , difficult and subjective estimates and judgments : 60 stock-based compensation the company accounts for our stock based awards in accordance with accounting standards codification subtopic 718-10 , compensation ( “ asc 718-10 ” ) . , which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors , including employee stock options and restricted stock awards . the company estimates the fair value of stock options granted using the black-scholes valuation model . this model requires us to make estimates and assumptions including , among other things , estimates regarding the length of time an employee will retain vested stock options before exercising them , the estimated volatility of our common stock price and the number of options that will be forfeited prior to vesting . the fair value is then amortized on a straight-line basis over the requisite service periods of the awards , which is generally the vesting period . changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently , the related amount recognized in our consolidated statements of operations . the expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards , giving consideration to the contractual terms , vesting schedules and expectations of future employee behavior . recent accounting pronouncements for a discussion of new accounting pronouncements affecting the company , refer to note 1 of notes to financial statements . result of operations comparison of results for the fiscal year ended december 31 , 2009 , to the fiscal year ended december 31 , 2008. revenues we have not generated any revenues from operations from our inception . we believe we will begin earning revenues from operations during calendar year 2010 as we transition from a development stage company . 61 costs and expenses from our inception through december 31 , 2009 , we have incurred losses of $ 27,759,973. these expenses were associated principally with equity-based compensation to employees and consultants , product development costs and professional services , interest expense and equity based compensation to stockholders for the penalty incurred for the late registration of shares . selling , general and administrative expenses we were successful in cutting costs in 2009. selling , general and administrative expenses were reduced from $ 5,024,013 for the fiscal year ended december 31 , 2008 to $ 3,126,423 for the fiscal year ended december 31 , 2009 , a cost savings of $ 1,897,590 or approximately 38 % . this was mostly because payroll and related expenses were cut by $ 418,411 ( 29.8 % ) from $ 1,405,528 in 2008 to $ 987,117 in 2009 , research and development cost were reduced by 732,787 ( 56.7 % ) , legal and accounting fees were reduced by $ 310,312 ( 33.9 % ) , non-cash compensation was reduced by $ 128,972 ( 35.8 % ) and travel and entertainment costs were reduced by $ 94,444 ( 49.4 % ) . interest expense for the twelve months ending december 31 , 2009 , interest expense ( net ) was $ 2,163,065 an increase of approximately 258 % compared to interest income ( net ) of $ 603,965 during the 12 months ended december 31 , 2008. interest expense increased during 2009 and we expect it to remain the same during the coming twelve months as we have accrued a full year of interest expenses on the convertible debentures we issued in january , june and august of 2008. net loss for the reasons stated above , our net loss for the twelve months ending december 31 , 2009 was $ 6,462,817 or $ 0.49 per share versus a net loss for the twelve months ending december 31 , 2008 of $ 5,807,353 or $ 0.49 per share . for the period of inception ( october 30 , 2002 ) through december 31 , 2009 , our net loss was $ 27,759,973 , or $ 3.55 per share . we expect that losses will continue at least through the year ending december 31 , 2011. our independent certified public accountants have stated in their report included in this form 10-k that we have incurred a net loss and negative cash flows from operations of $ 6,462,817 and $ 2,876,417 , respectively , for the year ended december

pursuant to the terms of the merger agreement , partnership shareholders had the option to receive either 0.34879 shares of the company 's common stock or $ 17.3001 in cash for each outstanding share of partnership common stock , and cash in lieu of any remaining fractional share . the stock versus cash elections by the partnership shareholders were subject to final consideration being made up of approximately $ 14.3 million in cash and 534,659 shares of company common stock , valued at approximately $ 35.3 million ( based on a value of $ 66.03 per share on the closing date ) . on may 15 , 2020 , the company completed a merger with timberwood , a bank holding company headquartered in tomah , wi , pursuant to the agreement and plan of bank merger , dated as of november 20 , 2019 , by and among the company and timberwood , whereby timberwood was merged with and into the company , and timberwood bank , timberwood 's wholly owned banking subsidiary , was merged with and into the bank . timberwood 's principal activity was the ownership and operation of timberwood bank , a state-chartered banking institution that operated one ( 1 ) branch in wisconsin at the time of closing . the merger consideration totaled approximately $ 29.8 million . pursuant to the terms of the merger agreement , timberwood shareholders received 5.1445 shares of the company 's common stock for each outstanding share of timberwood common stock , and cash in lieu of any remaining fractional share . company stock issued totaled 575,641 shares valued at approximately $ 29.4 million , with cash of $ 0.4 million comprising the remainder of merger consideration . the company accounted for these transactions under the acquisition method of accounting , and thus , the financial position and results of operations of partnership and timberwood prior to the consummation date were not included in the accompanying consolidated financial statements . the accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition . the company determined the fair value of core deposit intangibles , securities , premises and equipment , loans , other assets and liabilities , deposits and borrowings with the assistance of third party valuations , appraisals , and third party advisors . the estimated fair values are subject to refinement for up to one year after the consummation as additional information becomes available relative to the closing date fair values . covid-19 during the first quarter of 2020 , covid-19 was declared a global pandemic by the world health organization and a national public health emergency was declared in the united states . shortly before the end of march 2020 , in response to the covid-19 pandemic , the government of wisconsin and of most other states took preventative or protective actions , such as imposing restrictions on travel and business operations , advising or requiring individuals to limit or forego their time outside of their homes , and ordering temporary closures of businesses that have been deemed to be non-essential . these preventative and protective actions within wisconsin were lifted during may 2020 , but continued uncertainty remains as future actions may be warranted based on the progression of the pandemic . 45 the impact of the covid-19 pandemic on the economy continues to evolve . the covid-19 pandemic and its associated impacts on trade , travel , unemployment , consumer spending , and other economic activities has resulted in less economic activity and could have an adverse effect on our business , financial condition and results of operations . the ultimate extent of the impact of the covid-19 pandemic on our business , financial condition and results of operations is currently uncertain and will depend on various developments and other factors , including , among others , the duration and scope of the pandemic , as well as governmental , regulatory and private sector responses to the pandemic , and the associated impacts on the economy , financial markets and our customers . in response to the covid-19 pandemic , the cares act was signed into law on march 27 , 2020. the cares act provided an estimated $ 2.2 trillion to address the economic impact of the covid-19 pandemic and stimulate the economy by supporting individuals and businesses through loans , grants , tax changes , and other types of relief . the cares act also included provisions to encourage financial institutions to work prudently with borrowers . on december 27 , 2020 , the economic aid act was signed into law . this second coronavirus relief package granted additional funds for a new round of ppp loans . additionally , it expanded the eligibility for loans and allows certain businesses to request a second loan . under the cares act , banks may elect to deem that loan modifications do not result in troubled debt restructurings ( `` tdrs `` ) if they are ( 1 ) related to covid-19 ; ( 2 ) executed on a loan that was not more than 30 days past due as of december 31 , 2019 ; and ( 3 ) executed between march 1 , 2020 and the earlier of ( a ) 60 days after the date of termination of the national emergency declaration or ( b ) december 31 , 2020. additionally , in accordance with the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) , other short-term modifications made on a good faith basis in response to covid-19 to borrowers who were current prior to any relief are not tdrs under asc subtopic 310-40. this includes short-term ( e.g . up to six months ) modifications such as payment deferrals , fee waivers , extensions of repayment terms , or delays in payment that are insignificant . story_separator_special_tag this decline was primarily the result of a significantly lower interest rate environment that developed through the first half of 2020. interest expense on interest-bearing deposits decreased by $ 5.4 million to $ 12.5 million for the year ended december 31 , 2020 , from $ 17.9 million for the year ended december 31 , 2019. this decrease was primarily due to the aforementioned lower interest rate environment , allowing the company to significantly reduce crediting interest rates on non-time , interest-bearing deposit accounts . the average cost of interest-bearing deposits was 0.83 % for the year ended december 31 , 2020 , compared to 1.50 % for the year ended december 31 , 2019. provision for loan losses . credit risk is inherent in the business of making loans . we establish an alll through charges to earnings , which are shown in the statements of operations as the provision for loan losses . specifically identifiable and quantifiable known losses are promptly charged off against the allowance . the provision for loan losses is determined by conducting a quarterly evaluation of the adequacy of our alll and charging the shortfall or excess , if any , to the current quarter 's expense . this has the effect of creating variability in the amount and frequency of charges to earnings . the provision for loan losses and level of allowance for each period are dependent upon many factors , including loan growth , net charge-offs , changes in the composition of the loan portfolio , delinquencies , management 's assessment of the quality of the loan portfolio , the valuation of problem loans and the general economic conditions in our market area . the determination of the amount is complex and involves a high degree of judgment and subjectivity . we recorded a provision for loan losses of $ 7.1 million for the year ended december 31 , 2020 , compared to $ 5.3 million for the year ended december 31 , 2019. significant charge-offs occurring during the third quarter of 2019 necessitated increased provisions for loan losses during 2019. these charge-offs were the result of exiting certain relationships during that quarter which were originally acquired as part of the waupaca transaction . despite having significantly reduced charge-offs during 2020 , economic uncertainties as a result of the covid-19 pandemic required a build-up of our alll , resulting in higher provision expense . the alll was $ 17.7 million , or 0.81 % of total loans , at december 31 , 2020 compared to $ 11.4 million , or 0.66 % of total loans at december 31 , 2019 . 50 noninterest income . noninterest income is an important component of our total revenues . a significant portion of our noninterest income is associated with service charges and income from the bank 's unconsolidated subsidiaries , ansay and ufs . other sources of noninterest income include loan servicing fees , gains on sales of mortgage loans , and other income from strategic alliances . noninterest income increased $ 10.9 million to $ 23.5 million in 2020 compared to $ 12.6 million in 2019. service charges increased by $ 1.5 million , or 42.7 % , from 2019 to 2020 , the result of new markets and added scale from three acquisitions in slightly more than three years . income from ansay increased by $ 0.9 million as a result of modestly higher profitability at that organization as well as the increase in our ownership during october 2019. loan servicing income and net gain on sales of mortgage loans increased by $ 0.9 and $ 3.9 million from 2019 to 2020 , the result of a robust residential mortgage lending environment during 2020 spurred by historically low mortgage interest rates . due to uncertainty about liquidity needs in financial markets during the early days of the covid-19 pandemic , the company sold approximately $ 34.0 million in u.s. treasury securities during the second quarter of 2020 , resulting in a gain on sale of securities of $ 3.2 million , an increase of $ 2.6 million over 2019. finally , the company recorded a $ 1.7 million gain on the sale of a branch location during december 2020 , causing other noninterest income to increase year-over-year . the major components of our noninterest income are listed in the table below : replace_table_token_5_th ​ 51 noninterest expense . noninterest expense increased $ 10.6 million to $ 53.4 million for the year ended december 31 , 2020 , up from $ 42.8 million for the year ended december 31 , 2019. year-over-year , personnel expense increased $ 4.4 million , or 19.1 % , occupancy expense increased $ 0.9 million , or 22.3 % , data processing increased $ 1.0 million , or 22.3 % , outside service fees increased $ 1.1 million , or 35.2 % , and amortization of intangibles increased $ 0.6 million , or 53.0 % the result of added scale and expenses from acquisitions of partnership and timberwood during 2019 and 2020. postage , stationary , and supplies increased by $ 0.3 million , or 47.6 % , from 2019 to 2020 as a result of costs associated with the company 's response to the covid-19 pandemic . the company had sales of two large foreclosed properties scheduled to close late in the first quarter of 2020 which would have resulted in modest losses . due to the economic turmoil that resulted during the last several weeks of that quarter , terms of these sales were negatively impacted . rather than hold these properties heading into this time of uncertainty , the company chose to accept the reduced terms , causing significant losses on these sales that were the primary components of $ 1.4 million in total losses on sales and valuations of other real estate owned , compared to gains of $ 0.1 million during 2019. finally , during the second quarter of 2020 the company paid

cash and cash equivalents . cash and cash equivalents increased by $ 83.8 million , or 96.9 % , to $ 170.2 million at december 31 2020 from $ 86.5 million at december 31 , 2019. investment securities . the carrying value of total investment securities decreased by $ 53.5 million to $ 171.7 million at december 31 , 2020 from $ 225.2 million at december 31 , 2019. loans . net loans increased by $ 448.9 million , or 26.0 % , to $ 2.17 billion at december 31 , 2020 from $ 1.72 billion at december 31 , 2019. bank-owned life insurance . at december 31 , 2020 , our investment in bank-owned life insurance was $ 31.4 million , an increase of $ 6.5 million from $ 24.9 million at december 31 , 2019. deposits . deposits increased $ 477.7 million , or 25.9 % , to $ 2.32 billion at december 31 , 2020 from $ 1.84 billion at december 31 , 2019 . 57 borrowings . at december 31 , 2020 , borrowings consisted of advances from the fhlb of chicago and subordinated debt to other banks . at december 31 , 2019 , borrowings also included notes payable to other banks . fhlb borrowings totaled $ 23.5 million at december 31 , 2020. fhlb borrowings and notes payable to other banks totaled $ 39.8 million and $ 10.0 million , respectively , at december 31 , 2019. subordinated debt decreased $ 1.1 million to $ 17.5 million at december 31 , 2020 from $ 18.6 million at december 31 , 2019. stockholders ' equity . total stockholders ' equity increased $ 64.6 million , or 28.1 % , to $ 294.8 million at december 31 , 2020 from $ 230.2 million at december 31 , 2019. loans our lending activities are conducted principally in wisconsin . the bank makes commercial and industrial loans , commercial real estate loans , construction and development loans , residential real estate loans , and a variety of consumer loans and other loans . much of the loans made by the bank are secured by real estate collateral .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 increased by $ 83.8 million , or 96.9 % , to $ 170.2 million at december 31 2020 from $ 86.5 million at december 31 , 2019. investment securities . the carrying value of total investment securities decreased by $ 53.5 million to $ 171.7 million at december 31 , 2020 from $ 225.2 million at december 31 , 2019. loans . net loans increased by $ 448.9 million , or 26.0 % , to $ 2.17 billion at december 31 , 2020 from $ 1.72 billion at december 31 , 2019. bank-owned life insurance . at december 31 , 2020 , our investment in bank-owned life insurance was $ 31.4 million , an increase of $ 6.5 million from $ 24.9 million at december 31 , 2019. deposits . deposits increased $ 477.7 million , or 25.9 % , to $ 2.32 billion at december 31 , 2020 from $ 1.84 billion at december 31 , 2019 . 57 borrowings . at december 31 , 2020 , borrowings consisted of advances from the fhlb of chicago and subordinated debt to other banks . at december 31 , 2019 , borrowings also included notes payable to other banks . fhlb borrowings totaled $ 23.5 million at december 31 , 2020. fhlb borrowings and notes payable to other banks totaled $ 39.8 million and $ 10.0 million , respectively , at december 31 , 2019. subordinated debt decreased $ 1.1 million to $ 17.5 million at december 31 , 2020 from $ 18.6 million at december 31 , 2019. stockholders ' equity . total stockholders ' equity increased $ 64.6 million , or 28.1 % , to $ 294.8 million at december 31 , 2020 from $ 230.2 million at december 31 , 2019. loans our lending activities are conducted principally in wisconsin . the bank makes commercial and industrial loans , commercial real estate loans , construction and development loans , residential real estate loans , and a variety of consumer loans and other loans . much of the loans made by the bank are secured by real estate collateral . ``` Suspicious Activity Report : pursuant to the terms of the merger agreement , partnership shareholders had the option to receive either 0.34879 shares of the company 's common stock or $ 17.3001 in cash for each outstanding share of partnership common stock , and cash in lieu of any remaining fractional share . the stock versus cash elections by the partnership shareholders were subject to final consideration being made up of approximately $ 14.3 million in cash and 534,659 shares of company common stock , valued at approximately $ 35.3 million ( based on a value of $ 66.03 per share on the closing date ) . on may 15 , 2020 , the company completed a merger with timberwood , a bank holding company headquartered in tomah , wi , pursuant to the agreement and plan of bank merger , dated as of november 20 , 2019 , by and among the company and timberwood , whereby timberwood was merged with and into the company , and timberwood bank , timberwood 's wholly owned banking subsidiary , was merged with and into the bank . timberwood 's principal activity was the ownership and operation of timberwood bank , a state-chartered banking institution that operated one ( 1 ) branch in wisconsin at the time of closing . the merger consideration totaled approximately $ 29.8 million . pursuant to the terms of the merger agreement , timberwood shareholders received 5.1445 shares of the company 's common stock for each outstanding share of timberwood common stock , and cash in lieu of any remaining fractional share . company stock issued totaled 575,641 shares valued at approximately $ 29.4 million , with cash of $ 0.4 million comprising the remainder of merger consideration . the company accounted for these transactions under the acquisition method of accounting , and thus , the financial position and results of operations of partnership and timberwood prior to the consummation date were not included in the accompanying consolidated financial statements . the accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition . the company determined the fair value of core deposit intangibles , securities , premises and equipment , loans , other assets and liabilities , deposits and borrowings with the assistance of third party valuations , appraisals , and third party advisors . the estimated fair values are subject to refinement for up to one year after the consummation as additional information becomes available relative to the closing date fair values . covid-19 during the first quarter of 2020 , covid-19 was declared a global pandemic by the world health organization and a national public health emergency was declared in the united states . shortly before the end of march 2020 , in response to the covid-19 pandemic , the government of wisconsin and of most other states took preventative or protective actions , such as imposing restrictions on travel and business operations , advising or requiring individuals to limit or forego their time outside of their homes , and ordering temporary closures of businesses that have been deemed to be non-essential . these preventative and protective actions within wisconsin were lifted during may 2020 , but continued uncertainty remains as future actions may be warranted based on the progression of the pandemic . 45 the impact of the covid-19 pandemic on the economy continues to evolve . the covid-19 pandemic and its associated impacts on trade , travel , unemployment , consumer spending , and other economic activities has resulted in less economic activity and could have an adverse effect on our business , financial condition and results of operations . the ultimate extent of the impact of the covid-19 pandemic on our business , financial condition and results of operations is currently uncertain and will depend on various developments and other factors , including , among others , the duration and scope of the pandemic , as well as governmental , regulatory and private sector responses to the pandemic , and the associated impacts on the economy , financial markets and our customers . in response to the covid-19 pandemic , the cares act was signed into law on march 27 , 2020. the cares act provided an estimated $ 2.2 trillion to address the economic impact of the covid-19 pandemic and stimulate the economy by supporting individuals and businesses through loans , grants , tax changes , and other types of relief . the cares act also included provisions to encourage financial institutions to work prudently with borrowers . on december 27 , 2020 , the economic aid act was signed into law . this second coronavirus relief package granted additional funds for a new round of ppp loans . additionally , it expanded the eligibility for loans and allows certain businesses to request a second loan . under the cares act , banks may elect to deem that loan modifications do not result in troubled debt restructurings ( `` tdrs `` ) if they are ( 1 ) related to covid-19 ; ( 2 ) executed on a loan that was not more than 30 days past due as of december 31 , 2019 ; and ( 3 ) executed between march 1 , 2020 and the earlier of ( a ) 60 days after the date of termination of the national emergency declaration or ( b ) december 31 , 2020. additionally , in accordance with the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) , other short-term modifications made on a good faith basis in response to covid-19 to borrowers who were current prior to any relief are not tdrs under asc subtopic 310-40. this includes short-term ( e.g . up to six months ) modifications such as payment deferrals , fee waivers , extensions of repayment terms , or delays in payment that are insignificant . story_separator_special_tag this decline was primarily the result of a significantly lower interest rate environment that developed through the first half of 2020. interest expense on interest-bearing deposits decreased by $ 5.4 million to $ 12.5 million for the year ended december 31 , 2020 , from $ 17.9 million for the year ended december 31 , 2019. this decrease was primarily due to the aforementioned lower interest rate environment , allowing the company to significantly reduce crediting interest rates on non-time , interest-bearing deposit accounts . the average cost of interest-bearing deposits was 0.83 % for the year ended december 31 , 2020 , compared to 1.50 % for the year ended december 31 , 2019. provision for loan losses . credit risk is inherent in the business of making loans . we establish an alll through charges to earnings , which are shown in the statements of operations as the provision for loan losses . specifically identifiable and quantifiable known losses are promptly charged off against the allowance . the provision for loan losses is determined by conducting a quarterly evaluation of the adequacy of our alll and charging the shortfall or excess , if any , to the current quarter 's expense . this has the effect of creating variability in the amount and frequency of charges to earnings . the provision for loan losses and level of allowance for each period are dependent upon many factors , including loan growth , net charge-offs , changes in the composition of the loan portfolio , delinquencies , management 's assessment of the quality of the loan portfolio , the valuation of problem loans and the general economic conditions in our market area . the determination of the amount is complex and involves a high degree of judgment and subjectivity . we recorded a provision for loan losses of $ 7.1 million for the year ended december 31 , 2020 , compared to $ 5.3 million for the year ended december 31 , 2019. significant charge-offs occurring during the third quarter of 2019 necessitated increased provisions for loan losses during 2019. these charge-offs were the result of exiting certain relationships during that quarter which were originally acquired as part of the waupaca transaction . despite having significantly reduced charge-offs during 2020 , economic uncertainties as a result of the covid-19 pandemic required a build-up of our alll , resulting in higher provision expense . the alll was $ 17.7 million , or 0.81 % of total loans , at december 31 , 2020 compared to $ 11.4 million , or 0.66 % of total loans at december 31 , 2019 . 50 noninterest income . noninterest income is an important component of our total revenues . a significant portion of our noninterest income is associated with service charges and income from the bank 's unconsolidated subsidiaries , ansay and ufs . other sources of noninterest income include loan servicing fees , gains on sales of mortgage loans , and other income from strategic alliances . noninterest income increased $ 10.9 million to $ 23.5 million in 2020 compared to $ 12.6 million in 2019. service charges increased by $ 1.5 million , or 42.7 % , from 2019 to 2020 , the result of new markets and added scale from three acquisitions in slightly more than three years . income from ansay increased by $ 0.9 million as a result of modestly higher profitability at that organization as well as the increase in our ownership during october 2019. loan servicing income and net gain on sales of mortgage loans increased by $ 0.9 and $ 3.9 million from 2019 to 2020 , the result of a robust residential mortgage lending environment during 2020 spurred by historically low mortgage interest rates . due to uncertainty about liquidity needs in financial markets during the early days of the covid-19 pandemic , the company sold approximately $ 34.0 million in u.s. treasury securities during the second quarter of 2020 , resulting in a gain on sale of securities of $ 3.2 million , an increase of $ 2.6 million over 2019. finally , the company recorded a $ 1.7 million gain on the sale of a branch location during december 2020 , causing other noninterest income to increase year-over-year . the major components of our noninterest income are listed in the table below : replace_table_token_5_th ​ 51 noninterest expense . noninterest expense increased $ 10.6 million to $ 53.4 million for the year ended december 31 , 2020 , up from $ 42.8 million for the year ended december 31 , 2019. year-over-year , personnel expense increased $ 4.4 million , or 19.1 % , occupancy expense increased $ 0.9 million , or 22.3 % , data processing increased $ 1.0 million , or 22.3 % , outside service fees increased $ 1.1 million , or 35.2 % , and amortization of intangibles increased $ 0.6 million , or 53.0 % the result of added scale and expenses from acquisitions of partnership and timberwood during 2019 and 2020. postage , stationary , and supplies increased by $ 0.3 million , or 47.6 % , from 2019 to 2020 as a result of costs associated with the company 's response to the covid-19 pandemic . the company had sales of two large foreclosed properties scheduled to close late in the first quarter of 2020 which would have resulted in modest losses . due to the economic turmoil that resulted during the last several weeks of that quarter , terms of these sales were negatively impacted . rather than hold these properties heading into this time of uncertainty , the company chose to accept the reduced terms , causing significant losses on these sales that were the primary components of $ 1.4 million in total losses on sales and valuations of other real estate owned , compared to gains of $ 0.1 million during 2019. finally , during the second quarter of 2020 the company paid

while the business environment remained competitive , we experienced pricing improvement in several areas of our business . we use the term “ pricing ” to mean the contract profitability or margin on the work that we sell . in our consulting business , revenues for fiscal 2019 increased 5 % in u.s. dollars and 8 % in local currency compared to fiscal 2018 . consulting revenue growth in local currency in fiscal 2019 was led by very strong growth in resources , strong growth in health & public service , products and communications , media & technology and modest growth in financial services . our consulting revenue growth continues to be driven by strong demand for digital- , cloud- and security-related services and assisting clients with the adoption of new technologies . in addition , clients continue to be focused on initiatives designed to deliver cost savings and operational efficiency , as well as projects to integrate their global operations and grow and transform their businesses . in our outsourcing business , revenues for fiscal 2019 increased 6 % in u.s. dollars and 9 % in local currency compared to fiscal 2018 . outsourcing revenue growth in local currency in fiscal 2019 was led by very strong growth in resources , communications , media & technology and products , solid growth in financial services and modest 27 growth in health & public service . we continue to experience growing demand to assist clients with the operation and maintenance of digital-related services and cloud enablement . in addition , clients continue to be focused on transforming their operations to improve effectiveness and cost efficiency . as we are a global company , our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations . if the u.s. dollar weakens against other currencies , resulting in favorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be higher . if the u.s. dollar strengthens against other currencies , resulting in unfavorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be lower . the u.s. dollar strengthened against various currencies during fiscal 2019 , resulting in unfavorable currency translation and u.s. dollar revenue growth that was approximately 3 % lower than our revenue growth in local currency for the year . assuming that exchange rates stay within recent ranges , we estimate that our full fiscal 2020 revenue growth in u.s. dollars will be approximately 1 % lower in u.s. dollars than our revenue growth in local currency . the primary categories of operating expenses include cost of services , sales and marketing and general and administrative costs . cost of services is primarily driven by the cost of client-service personnel , which consists mainly of compensation , subcontractor and other personnel costs , and non-payroll costs on outsourcing contracts . cost of services includes a variety of activities such as : contract delivery ; recruiting and training ; software development ; and integration of acquisitions . sales and marketing costs are driven primarily by : compensation costs for business development activities ; marketing- and advertising-related activities ; and certain acquisition-related costs . general and administrative costs primarily include costs for non-client-facing personnel , information systems , office space and certain acquisition-related costs . utilization for fiscal 2019 was 91 % , consistent with fiscal 2018 . we continue to hire to meet current and projected future demand . we proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions , given that compensation costs are the most significant portion of our operating expenses . based on current and projected future demand , we have increased our headcount , the majority of which serve our clients , to approximately 492,000 as of august 31 , 2019 , compared to approximately 459,000 as of august 31 , 2018 . the year-over-year increase in our headcount reflects an overall increase in demand for our services and solutions , as well as headcount added in connection with acquisitions . attrition , excluding involuntary terminations , for fiscal 2019 was 17 % , up from 15 % in fiscal 2018 . we evaluate voluntary attrition , adjust levels of new hiring and use involuntary terminations as means to keep our supply of skills and resources in balance with changes in client demand . in addition , we adjust compensation in certain skill sets and geographies in order to attract and retain appropriate numbers of qualified employees . for the majority of our personnel , compensation increases become effective december 1st of each fiscal year . we strive to adjust pricing and or the mix of resources to reduce the impact of compensation increases on our margin . our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to : keep our supply of skills and resources in balance with changes in the types or amounts of services and solutions clients are demanding ; recover increases in compensation ; deploy our employees globally on a timely basis ; manage attrition ; and or effectively assimilate and utilize new employees . effective september 1 , 2018 , we adopted asu no . 2017-07 , compensation—retirement benefits ( topic 715 ) , which required us to reclassify certain components of pension costs from operating expenses to non-operating expenses . prior period results have been revised to reflect the fiscal 2019 presentation . for additional information , see note 1 ( summary of significant accounting policies ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . story_separator_special_tag operating expenses operating expenses for fiscal 2019 increased $ 1,816 million , or 5 % , over fiscal 2018 , and decreased as a percentage of revenues to 85.4 % from 85.6 % during this period . cost of services cost of services for fiscal 2019 increased $ 1,401 million , or 5 % , over fiscal 2018 , and decreased as a percentage of revenues to 69.2 % from 69.5 % during this period . gross margin for fiscal 2019 increased to 30.8 % from 30.5 % in fiscal 2018 . the increase in gross margin for fiscal 2019 was primarily due to lower non-payroll and labor costs as a percentage of revenues compared to fiscal 2018. sales and marketing sales and marketing expense for fiscal 2019 increased $ 251 million , or 6 % , over fiscal 2018 , and increased as a percentage of revenues to 10.3 % from 10.2 % during this period . general and administrative costs general and administrative costs for fiscal 2019 increased $ 164 million , or 7 % , over fiscal 2018 , and remained flat as a percentage of revenues at 5.9 % during this period . operating income and operating margin operating income for fiscal 2019 increased $ 406 million , or 7 % , over fiscal 2018 . operating income and operating margin for each of the operating groups were as follows : replace_table_token_4_th _ amounts in table may not total due to rounding . ( 1 ) effective september 1 , 2018 , we adopted fasb asu no . 2017-07 , compensation-retirement benefits ( topic 715 ) : improving the presentation of net periodic pension cost and net periodic postretirement benefit cost . certain components of pension service costs were reclassified from operating expenses to non-operating expenses . prior period amounts have been revised to conform with the current period presentation . we estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2019 was similar to that disclosed for revenue . the commentary below provides insight into other factors affecting operating group performance and operating margin for fiscal 2019 compared with fiscal 2018 : communications , media & technology operating income increased primarily due to revenue growth and higher contract profitability . financial services operating income decreased as higher consulting contract profitability and revenue growth were offset by higher operating expenses as a percentage of revenues . 33 health & public service operating income decreased as revenue growth was offset by lower consulting contract profitability and higher operating expenses as a percentage of revenues . products operating income increased primarily due to revenue growth and higher contract profitability , partially offset by higher operating expenses as a percentage of revenues . resources operating income increased primarily due to revenue growth and higher contract profitability . provision for income taxes the effective tax rate for fiscal 2019 was 22.5 % , compared with 27.4 % for fiscal 2018 . in fiscal 2018 , we recorded a $ 258 million charge associated with tax law changes . absent this charge , our effective tax rate for fiscal 2018 would have been 23.0 % . the lower effective tax rate for fiscal 2019 was primarily due to changes in the geographic distribution of earnings , higher benefits from final determinations of prior year taxes and lower expense for adjustments to prior year tax liabilities . these decreases were partially offset by higher expense from the adoption of fasb asu no . 2016-16 and lower tax benefits from share-based payments . for additional information , see note 10 ( income taxes ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” net income attributable to noncontrolling interests net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of accenture leadership and their permitted transferees have in our accenture canada holdings inc. subsidiary . see “ business—organizational structure . ” noncontrolling interests also includes amounts primarily attributable to noncontrolling shareholders in our avanade inc. subsidiary . net income attributable to accenture plc represents the income attributable to the shareholders of accenture plc . net income attributable to noncontrolling interests for fiscal 2019 decreased $ 88 million , or 57 % , from fiscal 2018 , due to the decrease in the non-controlling ownership percentage in march 2018 from 4 % held by accenture holdings plc and accenture canada holdings inc. to less than 1 % held by only accenture canada holdings inc. driven by the accenture holdings plc merger with and into accenture plc . for additional information on the merger , see note 1 ( summary of significant accounting policies ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” earnings per share diluted earnings per share were $ 7.36 for fiscal 2019 , compared with $ 6.34 for fiscal 2018 . the $ 1.02 increase in our diluted earnings per share included the impact of tax law changes , which decreased diluted earnings per share for fiscal 2018 by $ 0.40 . excluding the impact of these changes , diluted earnings per share for fiscal 2019 increased $ 0.62 compared with fiscal 2018 , due to increases of $ 0.48 from higher revenues and operating results , $ 0.05 from a lower effective tax rate , $ 0.05 from lower weighted average shares outstanding , and $ 0.04 from lower non-operating expense . for information regarding our earnings per share calculations , see note 3 ( earnings per share ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” 34 results of operations for fiscal 2018 compared to fiscal 2017 revenues ( by operating group , geographic region and type of work ) were as follows : replace_table_token_5_th _ n/m = not meaningful amounts

liquidity and capital resources our primary sources of liquidity are cash flows from operations , available cash reserves and debt capacity available under various credit facilities . we could raise additional funds through other public or private debt or equity financings . we may use our available or additional funds to , among other things : facilitate purchases , redemptions and exchanges of shares and pay dividends ; acquire complementary businesses or technologies ; take advantage of opportunities , including more rapid expansion ; or develop new services and solutions . as of august 31 , 2019 , cash and cash equivalents were $ 6.1 billion , compared with $ 5.1 billion as of august 31 , 2018 . cash flows from operating , investing and financing activities , as reflected in our consolidated cash flows statements , are summarized in the following table : replace_table_token_7_th operating activities : the $ 600 million year-over-year increase in operating cash flow was due to higher net income as well as changes in operating assets and liabilities , including an increase in accounts payable , partially offset by higher tax disbursements . investing activities : the $ 506 million increase in cash used was primarily due to higher spending on business acquisitions and investments . for additional information , see note 6 ( business combinations ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data.

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary sources of liquidity are cash flows from operations , available cash reserves and debt capacity available under various credit facilities . we could raise additional funds through other public or private debt or equity financings . we may use our available or additional funds to , among other things : facilitate purchases , redemptions and exchanges of shares and pay dividends ; acquire complementary businesses or technologies ; take advantage of opportunities , including more rapid expansion ; or develop new services and solutions . as of august 31 , 2019 , cash and cash equivalents were $ 6.1 billion , compared with $ 5.1 billion as of august 31 , 2018 . cash flows from operating , investing and financing activities , as reflected in our consolidated cash flows statements , are summarized in the following table : replace_table_token_7_th operating activities : the $ 600 million year-over-year increase in operating cash flow was due to higher net income as well as changes in operating assets and liabilities , including an increase in accounts payable , partially offset by higher tax disbursements . investing activities : the $ 506 million increase in cash used was primarily due to higher spending on business acquisitions and investments . for additional information , see note 6 ( business combinations ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data. ``` Suspicious Activity Report : while the business environment remained competitive , we experienced pricing improvement in several areas of our business . we use the term “ pricing ” to mean the contract profitability or margin on the work that we sell . in our consulting business , revenues for fiscal 2019 increased 5 % in u.s. dollars and 8 % in local currency compared to fiscal 2018 . consulting revenue growth in local currency in fiscal 2019 was led by very strong growth in resources , strong growth in health & public service , products and communications , media & technology and modest growth in financial services . our consulting revenue growth continues to be driven by strong demand for digital- , cloud- and security-related services and assisting clients with the adoption of new technologies . in addition , clients continue to be focused on initiatives designed to deliver cost savings and operational efficiency , as well as projects to integrate their global operations and grow and transform their businesses . in our outsourcing business , revenues for fiscal 2019 increased 6 % in u.s. dollars and 9 % in local currency compared to fiscal 2018 . outsourcing revenue growth in local currency in fiscal 2019 was led by very strong growth in resources , communications , media & technology and products , solid growth in financial services and modest 27 growth in health & public service . we continue to experience growing demand to assist clients with the operation and maintenance of digital-related services and cloud enablement . in addition , clients continue to be focused on transforming their operations to improve effectiveness and cost efficiency . as we are a global company , our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations . if the u.s. dollar weakens against other currencies , resulting in favorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be higher . if the u.s. dollar strengthens against other currencies , resulting in unfavorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be lower . the u.s. dollar strengthened against various currencies during fiscal 2019 , resulting in unfavorable currency translation and u.s. dollar revenue growth that was approximately 3 % lower than our revenue growth in local currency for the year . assuming that exchange rates stay within recent ranges , we estimate that our full fiscal 2020 revenue growth in u.s. dollars will be approximately 1 % lower in u.s. dollars than our revenue growth in local currency . the primary categories of operating expenses include cost of services , sales and marketing and general and administrative costs . cost of services is primarily driven by the cost of client-service personnel , which consists mainly of compensation , subcontractor and other personnel costs , and non-payroll costs on outsourcing contracts . cost of services includes a variety of activities such as : contract delivery ; recruiting and training ; software development ; and integration of acquisitions . sales and marketing costs are driven primarily by : compensation costs for business development activities ; marketing- and advertising-related activities ; and certain acquisition-related costs . general and administrative costs primarily include costs for non-client-facing personnel , information systems , office space and certain acquisition-related costs . utilization for fiscal 2019 was 91 % , consistent with fiscal 2018 . we continue to hire to meet current and projected future demand . we proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions , given that compensation costs are the most significant portion of our operating expenses . based on current and projected future demand , we have increased our headcount , the majority of which serve our clients , to approximately 492,000 as of august 31 , 2019 , compared to approximately 459,000 as of august 31 , 2018 . the year-over-year increase in our headcount reflects an overall increase in demand for our services and solutions , as well as headcount added in connection with acquisitions . attrition , excluding involuntary terminations , for fiscal 2019 was 17 % , up from 15 % in fiscal 2018 . we evaluate voluntary attrition , adjust levels of new hiring and use involuntary terminations as means to keep our supply of skills and resources in balance with changes in client demand . in addition , we adjust compensation in certain skill sets and geographies in order to attract and retain appropriate numbers of qualified employees . for the majority of our personnel , compensation increases become effective december 1st of each fiscal year . we strive to adjust pricing and or the mix of resources to reduce the impact of compensation increases on our margin . our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to : keep our supply of skills and resources in balance with changes in the types or amounts of services and solutions clients are demanding ; recover increases in compensation ; deploy our employees globally on a timely basis ; manage attrition ; and or effectively assimilate and utilize new employees . effective september 1 , 2018 , we adopted asu no . 2017-07 , compensation—retirement benefits ( topic 715 ) , which required us to reclassify certain components of pension costs from operating expenses to non-operating expenses . prior period results have been revised to reflect the fiscal 2019 presentation . for additional information , see note 1 ( summary of significant accounting policies ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . story_separator_special_tag operating expenses operating expenses for fiscal 2019 increased $ 1,816 million , or 5 % , over fiscal 2018 , and decreased as a percentage of revenues to 85.4 % from 85.6 % during this period . cost of services cost of services for fiscal 2019 increased $ 1,401 million , or 5 % , over fiscal 2018 , and decreased as a percentage of revenues to 69.2 % from 69.5 % during this period . gross margin for fiscal 2019 increased to 30.8 % from 30.5 % in fiscal 2018 . the increase in gross margin for fiscal 2019 was primarily due to lower non-payroll and labor costs as a percentage of revenues compared to fiscal 2018. sales and marketing sales and marketing expense for fiscal 2019 increased $ 251 million , or 6 % , over fiscal 2018 , and increased as a percentage of revenues to 10.3 % from 10.2 % during this period . general and administrative costs general and administrative costs for fiscal 2019 increased $ 164 million , or 7 % , over fiscal 2018 , and remained flat as a percentage of revenues at 5.9 % during this period . operating income and operating margin operating income for fiscal 2019 increased $ 406 million , or 7 % , over fiscal 2018 . operating income and operating margin for each of the operating groups were as follows : replace_table_token_4_th _ amounts in table may not total due to rounding . ( 1 ) effective september 1 , 2018 , we adopted fasb asu no . 2017-07 , compensation-retirement benefits ( topic 715 ) : improving the presentation of net periodic pension cost and net periodic postretirement benefit cost . certain components of pension service costs were reclassified from operating expenses to non-operating expenses . prior period amounts have been revised to conform with the current period presentation . we estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2019 was similar to that disclosed for revenue . the commentary below provides insight into other factors affecting operating group performance and operating margin for fiscal 2019 compared with fiscal 2018 : communications , media & technology operating income increased primarily due to revenue growth and higher contract profitability . financial services operating income decreased as higher consulting contract profitability and revenue growth were offset by higher operating expenses as a percentage of revenues . 33 health & public service operating income decreased as revenue growth was offset by lower consulting contract profitability and higher operating expenses as a percentage of revenues . products operating income increased primarily due to revenue growth and higher contract profitability , partially offset by higher operating expenses as a percentage of revenues . resources operating income increased primarily due to revenue growth and higher contract profitability . provision for income taxes the effective tax rate for fiscal 2019 was 22.5 % , compared with 27.4 % for fiscal 2018 . in fiscal 2018 , we recorded a $ 258 million charge associated with tax law changes . absent this charge , our effective tax rate for fiscal 2018 would have been 23.0 % . the lower effective tax rate for fiscal 2019 was primarily due to changes in the geographic distribution of earnings , higher benefits from final determinations of prior year taxes and lower expense for adjustments to prior year tax liabilities . these decreases were partially offset by higher expense from the adoption of fasb asu no . 2016-16 and lower tax benefits from share-based payments . for additional information , see note 10 ( income taxes ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” net income attributable to noncontrolling interests net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of accenture leadership and their permitted transferees have in our accenture canada holdings inc. subsidiary . see “ business—organizational structure . ” noncontrolling interests also includes amounts primarily attributable to noncontrolling shareholders in our avanade inc. subsidiary . net income attributable to accenture plc represents the income attributable to the shareholders of accenture plc . net income attributable to noncontrolling interests for fiscal 2019 decreased $ 88 million , or 57 % , from fiscal 2018 , due to the decrease in the non-controlling ownership percentage in march 2018 from 4 % held by accenture holdings plc and accenture canada holdings inc. to less than 1 % held by only accenture canada holdings inc. driven by the accenture holdings plc merger with and into accenture plc . for additional information on the merger , see note 1 ( summary of significant accounting policies ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” earnings per share diluted earnings per share were $ 7.36 for fiscal 2019 , compared with $ 6.34 for fiscal 2018 . the $ 1.02 increase in our diluted earnings per share included the impact of tax law changes , which decreased diluted earnings per share for fiscal 2018 by $ 0.40 . excluding the impact of these changes , diluted earnings per share for fiscal 2019 increased $ 0.62 compared with fiscal 2018 , due to increases of $ 0.48 from higher revenues and operating results , $ 0.05 from a lower effective tax rate , $ 0.05 from lower weighted average shares outstanding , and $ 0.04 from lower non-operating expense . for information regarding our earnings per share calculations , see note 3 ( earnings per share ) to our consolidated financial statements under item 8 , “ financial statements and supplementary data . ” 34 results of operations for fiscal 2018 compared to fiscal 2017 revenues ( by operating group , geographic region and type of work ) were as follows : replace_table_token_5_th _ n/m = not meaningful amounts

revenues generated by our other professionals , or full-time equivalents , are largely dependent on the number of consultants we employ , their hours worked and billing rates charged , as well as the number of pages reviewed and amount of data processed in the case of our document review and electronic data discovery groups , respectively . we generate the majority of our revenues from providing professional services under three types of billing arrangements : time-and-expense , fixed-fee , and performance-based . time-and-expense billing arrangements require the client to pay based on either the number of hours worked , the number of pages reviewed , or the amount of data processed by our revenue-generating professionals at agreed upon rates . we recognize revenues under time-and-expense billing arrangements as the related services are rendered . time-and-expense engagements represented 44.2 % , 45.9 % and 42.3 % of our revenues in 2011 , 2010 and 2009 , respectively . in fixed-fee billing arrangements , we agree to a pre-established fee in exchange for a predetermined set of professional services . we set the fees based on our estimates of the costs and timing for completing the engagements . it is the client 's expectation in these engagements that the pre-established fee will not be exceeded except in mutually agreed upon circumstances . we recognize revenues under fixed-fee billing arrangements using a proportionate 23 performance approach , which is based on work completed to-date versus our estimates of the total services to be provided under the engagement . for the years ended december 31 , 2011 , 2010 and 2009 , fixed-fee engagements represented approximately 35.4 % , 40.3 % and 39.4 % , respectively , of our revenues . in performance-based fee billing arrangements , fees are tied to the attainment of contractually defined objectives . we enter into performance-based engagements in essentially two forms . first , we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review . second , we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur . often , performance-based fees supplement our time-and-expense or fixed-fee engagements . we do not recognize revenues under performance-based billing arrangements until all related performance criteria are met . performance-based fee revenues represented 17.6 % , 11.6 % and 16.5 % of our revenues in 2011 , 2010 and 2009 , respectively . performance-based fee engagements may cause significant variations in revenues and operating results depending on the timing of achieving the performance-based criteria . we also generate revenues from licensing two types of proprietary software to clients . license revenue from our research administration and compliance software is recognized in accordance with fasb asc topic 985-605 , generally in the month in which the software is delivered . license revenue from our revenue cycle management software is sold only as a component of our consulting projects , and the services we provide are essential to the functionality of the software . therefore , revenues from these software licenses are recognized over the term of the related consulting services contract in accordance with fasb asc topic 605-35. clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance . annual support and maintenance fee revenue is recognized ratably over the support period , which is generally one year . these fees are billed in advance and included in deferred revenues until recognized . support and maintenance revenues represented 2.8 % , 2.2 % and 1.8 % of our revenues in 2011 , 2010 and 2009 , respectively . our quarterly results are impacted principally by our full-time consultants ' utilization rate , the number of business days in each quarter , the number of our revenue-generating professionals who are available to work and the amount of performance-based fees recognized which often vary significantly between quarters . our utilization rate can be negatively affected by increased hiring because there is generally a transition period for new professionals that results in a temporary drop in our utilization rate . our utilization rate can also be affected by seasonal variations in the demand for our services from our clients . for example , during the third and fourth quarters of the year , vacations taken by our clients can result in the deferral of activity on existing and new engagements , which would negatively affect our utilization rate . the number of business work days is also affected by the number of vacation days taken by our consultants and holidays in each quarter . we typically have fewer business work days available in the fourth quarter of the year , which can impact revenues during that period . time-and-expense engagements do not provide us with a high degree of predictability as to performance in future periods . unexpected changes in the demand for our services can result in significant variations in utilization and revenues and present a challenge to optimal hiring and staffing . moreover , our clients typically retain us on an engagement-by-engagement basis , rather than under long-term recurring contracts . the volume of work performed for any particular client can vary widely from period to period . reimbursable expenses reimbursable expenses that are billed to clients , primarily relating to travel and out-of-pocket expenses incurred in connection with engagements , are included in total revenues and reimbursable expenses , and typically an equivalent amount of these expenses are included in total direct costs and reimbursable expenses . reimbursable expenses also include those subcontractors who are billed to our clients at cost . we manage our business on the basis of revenues before reimbursable expenses . story_separator_special_tag ( 6 ) consists of consultants who work variable schedules as needed by our clients , as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced , such as pages reviewed and data processed . also includes full-time employees who provide software support and maintenance services to our clients . see note 4 “discontinued operations” under “part ii—item 8. financial statements and supplementary data” for additional information . non-gaap measures we also assess our results of operations using certain non-gaap financial measures . these non-gaap financial measures differ from gaap because the non-gaap financial measures we calculate to measure adjusted ebitda , adjusted 30 net income from continuing operations and adjusted diluted earnings per share exclude a number of items required by gaap , each discussed below . these non-gaap financial measures should be considered in addition to , and not as a substitute for or superior to , any measure of performance , cash flows or liquidity prepared in accordance with gaap . our non-gaap financial measures may be defined differently from time to time and may be defined differently than similar terms used by other companies , and accordingly , care should be exercised in understanding how we define our non-gaap financial measures . our management uses the non-gaap financial measures to gain an understanding of our comparative operating performance , for example when comparing such results with previous periods or forecasts . these non-gaap financial measures are used by management in their financial and operating decision-making because management believes they reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons . management also uses these non-gaap financial measures when publicly providing our business outlook , for internal management purposes , and as a basis for evaluating potential acquisitions and dispositions . we believe that these non-gaap financial measures provide useful information to investors and others ( a ) in understanding and evaluating huron 's current operating performance and future prospects in the same manner as management does , ( b ) in comparing in a consistent manner huron 's current financial results with huron 's past financial results and ( c ) in understanding the company 's ability to generate cash flows from operations that are available for taxes , capital expenditures , and debt repayment . the reconciliations of these non-gaap financial measures from gaap to non-gaap are as follows : replace_table_token_6_th 31 replace_table_token_7_th these non-gaap financial measures include adjustments for the following items : non-cash compensation : as discussed in note 3 “restatement of previously-issued financial statements” under “part ii—item 8. financial statements and supplementary data , ” we recorded non-cash compensation expense related to shareholder payments and employee payments in conjunction with certain acquisitions . we have excluded the effect of the non-cash compensation expense from our non-gaap measures because these items are non-cash and non-recurring in nature . restatement related expenses : we have incurred significant expenses related to our financial statement restatement . we have excluded the effect of these restatement related expenses from our non-gaap measures due to the non-recurring nature of the underlying event as a means to provide comparability with periods that were not impacted by the restatement related expenses . restructuring charges : we have incurred charges due to the restructuring of various parts of our business . these restructuring charges have primarily consisted of severance charges , costs associated with office space reductions including the accelerated depreciation of certain leasehold improvements , and the write-off of impaired intangible assets . we have excluded the effect of the restructuring charges from our non-gaap measures as a means to provide comparability with periods that were not impacted by a restructuring charge . additionally , the amount of each restructuring charge is significantly affected by the timing and size of the restructured business or component of a business . litigation settlements , net and goodwill impairment charges : we have excluded the effects of the litigation settlement expense in 2011 and 2010 and goodwill impairment charges in 2011 and 2009 from our non-gaap measures because their exclusion permits comparability with periods that were not impacted by these charges . other gain : we recorded a gain in 2009 related to a release of certain employees from their non-solicitation agreements with the company and a settlement of certain other contractual obligations . we have excluded the effect of the other gain from our non-gaap measures due to the fact that it is unusual and infrequent in nature as a means to provide comparability with the periods that were not impacted by the other gain . 32 amortization of intangible assets : we have excluded the effect of amortization of intangible assets from the non-gaap measures presented above . amortization of intangibles is inconsistent in its amount and frequency and is significantly affected by the timing and size of our acquisitions . tax effect : the non-gaap income tax adjustment reflects the incremental tax rate applicable to the non-gaap adjustments . income tax expense , interest and other expenses , depreciation and amortization : we have excluded the effects of income tax expense , interest and other expenses , and depreciation and amortization in the calculation of ebitda as these are customary exclusions as defined by the calculation of ebitda to arrive at meaningful earnings from core operations excluding the effect of such items . year ended december 31 , 2011 compared to year ended december 31 , 2010 revenues revenues increased $ 90.6 million , or 17.6 % , to $ 606.3 million for the year ended december 31 , 2011 from $ 515.7 million for the year ended december 31 , 2010. of the overall $ 90.6 million increase in revenues , $ 67.4 million was attributable to our full-time consultants , while $ 23.2 million was attributable to our full-time equivalents . the $ 67.4 million increase in full-time billable consultant revenues was attributable to

liquidity and capital resources cash and cash equivalents decreased $ 1.2 million , from $ 6.3 million at december 31 , 2010 , to $ 5.1 million at december 31 , 2011. cash and cash equivalents decreased $ 0.2 million , from $ 6.5 million at december 31 , 2009 , to $ 6.3 million at december 31 , 2010. cash and cash equivalents included $ 0.1 million and $ 0.7 million of cash related to discontinued operations as of december 31 , 2010 and 2009 , respectively . our primary sources of liquidity are cash flows from operations and debt capacity available under our credit facility . 41 operating activities cash flows provided by operating activities totaled $ 108.6 million , $ 50.1 million and $ 113.9 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . our operating assets and liabilities consist primarily of receivables from clients and unbilled services , accounts payable and accrued expenses , and accrued payroll and related benefits . the volume of services rendered and the related billings and timing of collections on those billings , as well as payments of our accounts payable affect these account balances . the increase in cash provided by operations in 2011 when compared with 2010 was primarily attributable to higher revenues partially offset by increases in direct costs and selling , general and administrative costs in combination with an increase in the accrued payroll and related benefits liability . the increase in the accrued payroll and related benefits liability is the result of lower bonus payments in 2011 for the 2010 performance year compared to the amount accrued in 2011 that will not be paid out until 2012. the decrease in cash flow from operations in 2010 was attributable to the increased payment of 2009 performance-based bonuses during the first quarter of 2010 as compared to the same period in 2009 coupled with an increase in accounts payable payments in 2010 compared to 2009 , primarily related to the timing of when payments were made .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash and cash equivalents decreased $ 1.2 million , from $ 6.3 million at december 31 , 2010 , to $ 5.1 million at december 31 , 2011. cash and cash equivalents decreased $ 0.2 million , from $ 6.5 million at december 31 , 2009 , to $ 6.3 million at december 31 , 2010. cash and cash equivalents included $ 0.1 million and $ 0.7 million of cash related to discontinued operations as of december 31 , 2010 and 2009 , respectively . our primary sources of liquidity are cash flows from operations and debt capacity available under our credit facility . 41 operating activities cash flows provided by operating activities totaled $ 108.6 million , $ 50.1 million and $ 113.9 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . our operating assets and liabilities consist primarily of receivables from clients and unbilled services , accounts payable and accrued expenses , and accrued payroll and related benefits . the volume of services rendered and the related billings and timing of collections on those billings , as well as payments of our accounts payable affect these account balances . the increase in cash provided by operations in 2011 when compared with 2010 was primarily attributable to higher revenues partially offset by increases in direct costs and selling , general and administrative costs in combination with an increase in the accrued payroll and related benefits liability . the increase in the accrued payroll and related benefits liability is the result of lower bonus payments in 2011 for the 2010 performance year compared to the amount accrued in 2011 that will not be paid out until 2012. the decrease in cash flow from operations in 2010 was attributable to the increased payment of 2009 performance-based bonuses during the first quarter of 2010 as compared to the same period in 2009 coupled with an increase in accounts payable payments in 2010 compared to 2009 , primarily related to the timing of when payments were made . ``` Suspicious Activity Report : revenues generated by our other professionals , or full-time equivalents , are largely dependent on the number of consultants we employ , their hours worked and billing rates charged , as well as the number of pages reviewed and amount of data processed in the case of our document review and electronic data discovery groups , respectively . we generate the majority of our revenues from providing professional services under three types of billing arrangements : time-and-expense , fixed-fee , and performance-based . time-and-expense billing arrangements require the client to pay based on either the number of hours worked , the number of pages reviewed , or the amount of data processed by our revenue-generating professionals at agreed upon rates . we recognize revenues under time-and-expense billing arrangements as the related services are rendered . time-and-expense engagements represented 44.2 % , 45.9 % and 42.3 % of our revenues in 2011 , 2010 and 2009 , respectively . in fixed-fee billing arrangements , we agree to a pre-established fee in exchange for a predetermined set of professional services . we set the fees based on our estimates of the costs and timing for completing the engagements . it is the client 's expectation in these engagements that the pre-established fee will not be exceeded except in mutually agreed upon circumstances . we recognize revenues under fixed-fee billing arrangements using a proportionate 23 performance approach , which is based on work completed to-date versus our estimates of the total services to be provided under the engagement . for the years ended december 31 , 2011 , 2010 and 2009 , fixed-fee engagements represented approximately 35.4 % , 40.3 % and 39.4 % , respectively , of our revenues . in performance-based fee billing arrangements , fees are tied to the attainment of contractually defined objectives . we enter into performance-based engagements in essentially two forms . first , we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review . second , we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur . often , performance-based fees supplement our time-and-expense or fixed-fee engagements . we do not recognize revenues under performance-based billing arrangements until all related performance criteria are met . performance-based fee revenues represented 17.6 % , 11.6 % and 16.5 % of our revenues in 2011 , 2010 and 2009 , respectively . performance-based fee engagements may cause significant variations in revenues and operating results depending on the timing of achieving the performance-based criteria . we also generate revenues from licensing two types of proprietary software to clients . license revenue from our research administration and compliance software is recognized in accordance with fasb asc topic 985-605 , generally in the month in which the software is delivered . license revenue from our revenue cycle management software is sold only as a component of our consulting projects , and the services we provide are essential to the functionality of the software . therefore , revenues from these software licenses are recognized over the term of the related consulting services contract in accordance with fasb asc topic 605-35. clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance . annual support and maintenance fee revenue is recognized ratably over the support period , which is generally one year . these fees are billed in advance and included in deferred revenues until recognized . support and maintenance revenues represented 2.8 % , 2.2 % and 1.8 % of our revenues in 2011 , 2010 and 2009 , respectively . our quarterly results are impacted principally by our full-time consultants ' utilization rate , the number of business days in each quarter , the number of our revenue-generating professionals who are available to work and the amount of performance-based fees recognized which often vary significantly between quarters . our utilization rate can be negatively affected by increased hiring because there is generally a transition period for new professionals that results in a temporary drop in our utilization rate . our utilization rate can also be affected by seasonal variations in the demand for our services from our clients . for example , during the third and fourth quarters of the year , vacations taken by our clients can result in the deferral of activity on existing and new engagements , which would negatively affect our utilization rate . the number of business work days is also affected by the number of vacation days taken by our consultants and holidays in each quarter . we typically have fewer business work days available in the fourth quarter of the year , which can impact revenues during that period . time-and-expense engagements do not provide us with a high degree of predictability as to performance in future periods . unexpected changes in the demand for our services can result in significant variations in utilization and revenues and present a challenge to optimal hiring and staffing . moreover , our clients typically retain us on an engagement-by-engagement basis , rather than under long-term recurring contracts . the volume of work performed for any particular client can vary widely from period to period . reimbursable expenses reimbursable expenses that are billed to clients , primarily relating to travel and out-of-pocket expenses incurred in connection with engagements , are included in total revenues and reimbursable expenses , and typically an equivalent amount of these expenses are included in total direct costs and reimbursable expenses . reimbursable expenses also include those subcontractors who are billed to our clients at cost . we manage our business on the basis of revenues before reimbursable expenses . story_separator_special_tag ( 6 ) consists of consultants who work variable schedules as needed by our clients , as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced , such as pages reviewed and data processed . also includes full-time employees who provide software support and maintenance services to our clients . see note 4 “discontinued operations” under “part ii—item 8. financial statements and supplementary data” for additional information . non-gaap measures we also assess our results of operations using certain non-gaap financial measures . these non-gaap financial measures differ from gaap because the non-gaap financial measures we calculate to measure adjusted ebitda , adjusted 30 net income from continuing operations and adjusted diluted earnings per share exclude a number of items required by gaap , each discussed below . these non-gaap financial measures should be considered in addition to , and not as a substitute for or superior to , any measure of performance , cash flows or liquidity prepared in accordance with gaap . our non-gaap financial measures may be defined differently from time to time and may be defined differently than similar terms used by other companies , and accordingly , care should be exercised in understanding how we define our non-gaap financial measures . our management uses the non-gaap financial measures to gain an understanding of our comparative operating performance , for example when comparing such results with previous periods or forecasts . these non-gaap financial measures are used by management in their financial and operating decision-making because management believes they reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons . management also uses these non-gaap financial measures when publicly providing our business outlook , for internal management purposes , and as a basis for evaluating potential acquisitions and dispositions . we believe that these non-gaap financial measures provide useful information to investors and others ( a ) in understanding and evaluating huron 's current operating performance and future prospects in the same manner as management does , ( b ) in comparing in a consistent manner huron 's current financial results with huron 's past financial results and ( c ) in understanding the company 's ability to generate cash flows from operations that are available for taxes , capital expenditures , and debt repayment . the reconciliations of these non-gaap financial measures from gaap to non-gaap are as follows : replace_table_token_6_th 31 replace_table_token_7_th these non-gaap financial measures include adjustments for the following items : non-cash compensation : as discussed in note 3 “restatement of previously-issued financial statements” under “part ii—item 8. financial statements and supplementary data , ” we recorded non-cash compensation expense related to shareholder payments and employee payments in conjunction with certain acquisitions . we have excluded the effect of the non-cash compensation expense from our non-gaap measures because these items are non-cash and non-recurring in nature . restatement related expenses : we have incurred significant expenses related to our financial statement restatement . we have excluded the effect of these restatement related expenses from our non-gaap measures due to the non-recurring nature of the underlying event as a means to provide comparability with periods that were not impacted by the restatement related expenses . restructuring charges : we have incurred charges due to the restructuring of various parts of our business . these restructuring charges have primarily consisted of severance charges , costs associated with office space reductions including the accelerated depreciation of certain leasehold improvements , and the write-off of impaired intangible assets . we have excluded the effect of the restructuring charges from our non-gaap measures as a means to provide comparability with periods that were not impacted by a restructuring charge . additionally , the amount of each restructuring charge is significantly affected by the timing and size of the restructured business or component of a business . litigation settlements , net and goodwill impairment charges : we have excluded the effects of the litigation settlement expense in 2011 and 2010 and goodwill impairment charges in 2011 and 2009 from our non-gaap measures because their exclusion permits comparability with periods that were not impacted by these charges . other gain : we recorded a gain in 2009 related to a release of certain employees from their non-solicitation agreements with the company and a settlement of certain other contractual obligations . we have excluded the effect of the other gain from our non-gaap measures due to the fact that it is unusual and infrequent in nature as a means to provide comparability with the periods that were not impacted by the other gain . 32 amortization of intangible assets : we have excluded the effect of amortization of intangible assets from the non-gaap measures presented above . amortization of intangibles is inconsistent in its amount and frequency and is significantly affected by the timing and size of our acquisitions . tax effect : the non-gaap income tax adjustment reflects the incremental tax rate applicable to the non-gaap adjustments . income tax expense , interest and other expenses , depreciation and amortization : we have excluded the effects of income tax expense , interest and other expenses , and depreciation and amortization in the calculation of ebitda as these are customary exclusions as defined by the calculation of ebitda to arrive at meaningful earnings from core operations excluding the effect of such items . year ended december 31 , 2011 compared to year ended december 31 , 2010 revenues revenues increased $ 90.6 million , or 17.6 % , to $ 606.3 million for the year ended december 31 , 2011 from $ 515.7 million for the year ended december 31 , 2010. of the overall $ 90.6 million increase in revenues , $ 67.4 million was attributable to our full-time consultants , while $ 23.2 million was attributable to our full-time equivalents . the $ 67.4 million increase in full-time billable consultant revenues was attributable to

net proceeds from the offering were approximately $ 28 million , after an approximate 6 % underwriting fee and other offering expenses and reimbursements pursuant to the underwriting agreement . following our ipo , and to meet our obligations under the registration rights agreement , we filed a final prospectus on december 9 , 2013 registering 51,101,434 class a common shares . these shares had previously been issued during our private placement . through our primary mortgage insurance subsidiary , nmic , a monoline mi company , and its affiliated reinsurance company , re one , we provide residential mi in the united states . we are one of seven companies in the u.s. who offer such insurance . we believe the mi industry has significant barriers to entry due to the substantial capital necessary to fund operations and satisfy gse requirements , the need for a customer-integrated operating platform capable of issuing and servicing mortgage insurance policies , the competitive positions and established customer relationships of existing mortgage insurance providers , and in order to conduct mi business nationwide , the need to obtain and maintain insurance licenses in all 50 states and d.c. additionally , the resource commitment required by customers , and larger lenders in particular , to connect to a new mortgage insurance platform , such as ours , is significant , and absent a critical need , such as the capital constraints in the mi industry during the financial crisis , they have historically , in our view , been reluctant to make such an investment . we were formed at a time when the severe dislocation in the private mortgage insurance industry caused by the financial crisis created a need for newly capitalized mortgage insurers and this has facilitated our efforts to establish relationships with lenders . 57 since the company 's inception , our efforts to build our mi business have included , among other things , building an executive management team and hiring other key officers and directors and staff , building our operating processes , designing and developing our business and technology applications , environment and infrastructure , and obtaining state licenses and gse approval . nmic works to differentiate itself primarily by prompt and predictable underwriting , thereby aiming to provide our customers with a higher degree of confidence of coverage than our competitors provide . we have established risk management controls throughout our organization that we believe will support our continued financial strength . as a newly capitalized mortgage insurer , we have the ability to write new business without the burden of risky legacy exposures and believe our current capital supports our current business writing strategy while staying within the regulatory guidelines imposed by state insurance departments and the gses . our financial results to date have been primarily driven by expenditures related to our business development activities , and to a lesser extent , by our investment activities . since we commenced writing mi on a limited test basis in april 2013 , we have become a fully operational mi company , with $ 161.7 million of primary insurance-in-force and $ 5.1 billion of pool insurance in force as of december 31 , 2013 . for the year ended december 31 , 2013 , the company had primary risk-in-force of $ 36.5 million compared to primary risk-in-force of $ 1.2 million at september 30 , 2013. pool risk-in-force for the year ended december 31 , 2013 was $ 93.1 million . we discuss the following in turn below : the significant conditions and factors that have affected our operating results , including the costs associated with the key start-up activities in which we were engaged and development of our investment portfolio ; the factors we expect will impact our future results as our mortgage insurance business continues to grow , and certain issues impacting our holding company , nmih ; our sources and uses of liquidity and capital resources ; our operating results , which were primarily driven by our start up activities , and the composition of our niw and iif ; and critical accounting estimates that require management to exercise significant judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . operating expenses from start up activities our expenses for the years ended december 31 , 2013 , 2012 and 2011 , were $ 60.7 million , $ 27.8 million and $ 1.3 million , respectively , and consist largely of expenses associated with start up activities , including payroll and related expenses , share-based compensation and professional fees . the costs that we have incurred to date represent the culmination of our start-up activities . as such , they do not reflect the same types of expenses that an mi company with an established insurance portfolio after many years of operations would be expected to incur . we anticipate that , as our insurance writings grow and our sale activities increase , our underwriting expenses in future periods will be considerably higher than in the periods presented to date . although we expect our year-over-year expenses to increase as we grow our business , we ultimately expect that the majority of our operating expenses will be relatively fixed in the long term . as our business matures and we deploy the majority of our capital , we are targeting our expense ratio ( expenses to premiums written ) to fall into a range of 20 % to 25 % . during the first few years of operation , our expense ratio is expected to be significantly higher than this range given the low levels of premium written compared to our `` fixed `` costs customary to operating a mortgage insurance company . we believe that we will have an efficient expense structure providing us with greater flexibility . story_separator_special_tag achieving connectivity with leading third-party loan origination systems utilized by regional accounts , including ellie mae encompass360® . the regional accounts who originate loans using these third-party loan origination systems will be able to automatically select nmic as an mi provider within those systems . the progress we have made to date connecting with these loan origination systems is another significant achievement with respect to our readiness to engage with regional accounts . 61 competition the mi industry is highly competitive and includes other private mortgage insurers , governmental agencies that sponsor government-backed mortgage insurance programs and alternatives to credit enhancement products , such as piggy-back loans . see part i , item 1 , `` business - sales and marketing and competition - competition , `` for additional discussion of our competitors . the mi industry has recently been in a state of flux , with some existing companies exiting and new companies entering the space . in addition to ourselves , in 2010 another new mi company was formed and started writing mi . one existing company that had been serving credit unions only was acquired and announced its intent to expand operations to serve the entire mortgage market . in addition , an existing mi company that had previously stopped writing mi business has announced its intent to attempt to resume its mi operations . given this dynamic , we expect that there will be pressure in the coming years for industry participants to establish , grow or maintain their market share and that many mi companies will respond to this pressure by lowering their rates , which will in turn put pressure on the rest of the industry . we believe that our strong capital position and clear terms of coverage convey upon us an advantage in the marketplace . we expect that this advantage will translate to achieving our pro-rata market share on a faster than normal timeline . our competitors ' market share of the private mi industry for the year ended december 31 , 2013 varied from a low of approximately 3 % to a high of approximately 28 % . in general , we expect the total origination market to decline in 2014. however , within the total market of low-down payment loan originations , we expect the overall private mi penetration rate to increase as the fha continues to scale back . see `` - factors expected to affect results as our mortgage insurance operations grow - competition with fha , `` below . employees we believe our company is an attractive , stable place of employment , given that we are a well-capitalized insurance company that has made significant progress in commencing business in the mi marketplace , allowing us to attract what we believe to be high-quality talent . we believe that our growth and future success will depend in large part on our services and the skills of our management team and our ability to motivate and retain these individuals and other key personnel . as of december 31 , 2013 , we had significantly developed our employee base to support our regional and national sales teams , policy acquisition and servicing , it , and all other back-office functions . based on the execution of our business plan , we hired a substantial number of employees since raising our initial capital in april 2012 and expect to continue to add additional staff throughout the first half of 2014 . as of december 31 , 2013 , we had 141 total full-time employees . new business writings nmic commenced , on a limited test basis , writing insurance business in april 2013. as of december 31 , 2013 , nmic has primary insurance-in-force of $ 161.7 million and $ 36.5 million of primary risk-in-force , representing 653 loans . we expect nmic 's insurance-in-force and risk-in-force to increase over the coming months as our operations continue to mature . during the second fiscal quarter of 2013 , nmic bid on a pool insurance transaction proposed by fannie mae . as discussed previously , the fhfa set targets for reducing the gses ' mortgage risk in 2013. one of the methods available to the gses was to utilize mi companies as insurers of particular groups , or pools , of loans . in july 2013 , we were notified that fannie mae had selected nmic for this pool transaction . nmic entered into an agreement with fannie mae , pursuant to which nmic initially insured approximately 22,000 loans with insurance-in-force of $ 5.2 billion ( as of september 1 , 2013 ) . the effective date of the agreement and the coverage was september 1 , 2013 , and in september 2013 , we received our first monthly premium payment from fannie mae . the agreement has an expected term of 10 years from the coverage effective date . the risk-in-force to nmic is $ 93.1 million which represents the amount between a deductible payable by fannie mae on initial losses and a stop loss , above which , losses are borne by fannie mae . nmic provides this same level of risk coverage over the term of the agreement . in addition , the agreement contains counterparty requirements that specify the amount of capital nmic will need to maintain to support the agreement , which is equal to the amount of primary net risk-in-force on this pool . the capital we are required to maintain to support this risk will decline over the 10 -year term of the agreement as the loans in the pool amortize . nmic will be paid monthly premiums by fannie mae based on a fixed premium rate and the aggregate outstanding unpaid principal balance of loans in the pool . similar to other monthly products , we will record the premium received on a monthly basis as written premium . in addition , all of the premium will be recorded as earned in

liquidity and capital resources our mi companies ' principal operating sources of liquidity will be premiums that we receive from policies and income generated by our investment portfolio . our mi companies ' primary liquidity needs include the payment of claims on our mi policies , operating expenses , investment expenses and other costs of our business . we raised net proceeds of $ 510 million in our private placement , which we have primarily used to fund our operations . we contributed $ 210 million to nmic , whereupon nmic contributed $ 10 million to its wholly-owned subsidiary , re two . in addition , we contributed $ 10 million to re one . on september 30 , 2013 , we merged re two into nmic with nmic surviving the merger . as of december 31 , 2013 , we had approximately $ 465 million in cash and investments of which $ 265 million was held at our holding company . as of december 31 , 2013 , the amount of restricted net assets held by our consolidated insurance subsidiaries totaled approximately $ 193 million of our consolidated net assets of approximately $ 463 million . the following table summarizes our consolidated cash flows from operating , investing and financing activities : replace_table_token_6_th 68 cash used in operating activities for the year ended december 31 , 2013 was higher compared to the same period in 2012 due primarily to significant hiring of management and staff personnel beginning in may 2012 through year end 2013 and professional costs incurred in conjunction with our state licensing process and litigation support , offset somewhat by collected premiums during 2013. cash used in

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 mi companies ' principal operating sources of liquidity will be premiums that we receive from policies and income generated by our investment portfolio . our mi companies ' primary liquidity needs include the payment of claims on our mi policies , operating expenses , investment expenses and other costs of our business . we raised net proceeds of $ 510 million in our private placement , which we have primarily used to fund our operations . we contributed $ 210 million to nmic , whereupon nmic contributed $ 10 million to its wholly-owned subsidiary , re two . in addition , we contributed $ 10 million to re one . on september 30 , 2013 , we merged re two into nmic with nmic surviving the merger . as of december 31 , 2013 , we had approximately $ 465 million in cash and investments of which $ 265 million was held at our holding company . as of december 31 , 2013 , the amount of restricted net assets held by our consolidated insurance subsidiaries totaled approximately $ 193 million of our consolidated net assets of approximately $ 463 million . the following table summarizes our consolidated cash flows from operating , investing and financing activities : replace_table_token_6_th 68 cash used in operating activities for the year ended december 31 , 2013 was higher compared to the same period in 2012 due primarily to significant hiring of management and staff personnel beginning in may 2012 through year end 2013 and professional costs incurred in conjunction with our state licensing process and litigation support , offset somewhat by collected premiums during 2013. cash used in ``` Suspicious Activity Report : net proceeds from the offering were approximately $ 28 million , after an approximate 6 % underwriting fee and other offering expenses and reimbursements pursuant to the underwriting agreement . following our ipo , and to meet our obligations under the registration rights agreement , we filed a final prospectus on december 9 , 2013 registering 51,101,434 class a common shares . these shares had previously been issued during our private placement . through our primary mortgage insurance subsidiary , nmic , a monoline mi company , and its affiliated reinsurance company , re one , we provide residential mi in the united states . we are one of seven companies in the u.s. who offer such insurance . we believe the mi industry has significant barriers to entry due to the substantial capital necessary to fund operations and satisfy gse requirements , the need for a customer-integrated operating platform capable of issuing and servicing mortgage insurance policies , the competitive positions and established customer relationships of existing mortgage insurance providers , and in order to conduct mi business nationwide , the need to obtain and maintain insurance licenses in all 50 states and d.c. additionally , the resource commitment required by customers , and larger lenders in particular , to connect to a new mortgage insurance platform , such as ours , is significant , and absent a critical need , such as the capital constraints in the mi industry during the financial crisis , they have historically , in our view , been reluctant to make such an investment . we were formed at a time when the severe dislocation in the private mortgage insurance industry caused by the financial crisis created a need for newly capitalized mortgage insurers and this has facilitated our efforts to establish relationships with lenders . 57 since the company 's inception , our efforts to build our mi business have included , among other things , building an executive management team and hiring other key officers and directors and staff , building our operating processes , designing and developing our business and technology applications , environment and infrastructure , and obtaining state licenses and gse approval . nmic works to differentiate itself primarily by prompt and predictable underwriting , thereby aiming to provide our customers with a higher degree of confidence of coverage than our competitors provide . we have established risk management controls throughout our organization that we believe will support our continued financial strength . as a newly capitalized mortgage insurer , we have the ability to write new business without the burden of risky legacy exposures and believe our current capital supports our current business writing strategy while staying within the regulatory guidelines imposed by state insurance departments and the gses . our financial results to date have been primarily driven by expenditures related to our business development activities , and to a lesser extent , by our investment activities . since we commenced writing mi on a limited test basis in april 2013 , we have become a fully operational mi company , with $ 161.7 million of primary insurance-in-force and $ 5.1 billion of pool insurance in force as of december 31 , 2013 . for the year ended december 31 , 2013 , the company had primary risk-in-force of $ 36.5 million compared to primary risk-in-force of $ 1.2 million at september 30 , 2013. pool risk-in-force for the year ended december 31 , 2013 was $ 93.1 million . we discuss the following in turn below : the significant conditions and factors that have affected our operating results , including the costs associated with the key start-up activities in which we were engaged and development of our investment portfolio ; the factors we expect will impact our future results as our mortgage insurance business continues to grow , and certain issues impacting our holding company , nmih ; our sources and uses of liquidity and capital resources ; our operating results , which were primarily driven by our start up activities , and the composition of our niw and iif ; and critical accounting estimates that require management to exercise significant judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . operating expenses from start up activities our expenses for the years ended december 31 , 2013 , 2012 and 2011 , were $ 60.7 million , $ 27.8 million and $ 1.3 million , respectively , and consist largely of expenses associated with start up activities , including payroll and related expenses , share-based compensation and professional fees . the costs that we have incurred to date represent the culmination of our start-up activities . as such , they do not reflect the same types of expenses that an mi company with an established insurance portfolio after many years of operations would be expected to incur . we anticipate that , as our insurance writings grow and our sale activities increase , our underwriting expenses in future periods will be considerably higher than in the periods presented to date . although we expect our year-over-year expenses to increase as we grow our business , we ultimately expect that the majority of our operating expenses will be relatively fixed in the long term . as our business matures and we deploy the majority of our capital , we are targeting our expense ratio ( expenses to premiums written ) to fall into a range of 20 % to 25 % . during the first few years of operation , our expense ratio is expected to be significantly higher than this range given the low levels of premium written compared to our `` fixed `` costs customary to operating a mortgage insurance company . we believe that we will have an efficient expense structure providing us with greater flexibility . story_separator_special_tag achieving connectivity with leading third-party loan origination systems utilized by regional accounts , including ellie mae encompass360® . the regional accounts who originate loans using these third-party loan origination systems will be able to automatically select nmic as an mi provider within those systems . the progress we have made to date connecting with these loan origination systems is another significant achievement with respect to our readiness to engage with regional accounts . 61 competition the mi industry is highly competitive and includes other private mortgage insurers , governmental agencies that sponsor government-backed mortgage insurance programs and alternatives to credit enhancement products , such as piggy-back loans . see part i , item 1 , `` business - sales and marketing and competition - competition , `` for additional discussion of our competitors . the mi industry has recently been in a state of flux , with some existing companies exiting and new companies entering the space . in addition to ourselves , in 2010 another new mi company was formed and started writing mi . one existing company that had been serving credit unions only was acquired and announced its intent to expand operations to serve the entire mortgage market . in addition , an existing mi company that had previously stopped writing mi business has announced its intent to attempt to resume its mi operations . given this dynamic , we expect that there will be pressure in the coming years for industry participants to establish , grow or maintain their market share and that many mi companies will respond to this pressure by lowering their rates , which will in turn put pressure on the rest of the industry . we believe that our strong capital position and clear terms of coverage convey upon us an advantage in the marketplace . we expect that this advantage will translate to achieving our pro-rata market share on a faster than normal timeline . our competitors ' market share of the private mi industry for the year ended december 31 , 2013 varied from a low of approximately 3 % to a high of approximately 28 % . in general , we expect the total origination market to decline in 2014. however , within the total market of low-down payment loan originations , we expect the overall private mi penetration rate to increase as the fha continues to scale back . see `` - factors expected to affect results as our mortgage insurance operations grow - competition with fha , `` below . employees we believe our company is an attractive , stable place of employment , given that we are a well-capitalized insurance company that has made significant progress in commencing business in the mi marketplace , allowing us to attract what we believe to be high-quality talent . we believe that our growth and future success will depend in large part on our services and the skills of our management team and our ability to motivate and retain these individuals and other key personnel . as of december 31 , 2013 , we had significantly developed our employee base to support our regional and national sales teams , policy acquisition and servicing , it , and all other back-office functions . based on the execution of our business plan , we hired a substantial number of employees since raising our initial capital in april 2012 and expect to continue to add additional staff throughout the first half of 2014 . as of december 31 , 2013 , we had 141 total full-time employees . new business writings nmic commenced , on a limited test basis , writing insurance business in april 2013. as of december 31 , 2013 , nmic has primary insurance-in-force of $ 161.7 million and $ 36.5 million of primary risk-in-force , representing 653 loans . we expect nmic 's insurance-in-force and risk-in-force to increase over the coming months as our operations continue to mature . during the second fiscal quarter of 2013 , nmic bid on a pool insurance transaction proposed by fannie mae . as discussed previously , the fhfa set targets for reducing the gses ' mortgage risk in 2013. one of the methods available to the gses was to utilize mi companies as insurers of particular groups , or pools , of loans . in july 2013 , we were notified that fannie mae had selected nmic for this pool transaction . nmic entered into an agreement with fannie mae , pursuant to which nmic initially insured approximately 22,000 loans with insurance-in-force of $ 5.2 billion ( as of september 1 , 2013 ) . the effective date of the agreement and the coverage was september 1 , 2013 , and in september 2013 , we received our first monthly premium payment from fannie mae . the agreement has an expected term of 10 years from the coverage effective date . the risk-in-force to nmic is $ 93.1 million which represents the amount between a deductible payable by fannie mae on initial losses and a stop loss , above which , losses are borne by fannie mae . nmic provides this same level of risk coverage over the term of the agreement . in addition , the agreement contains counterparty requirements that specify the amount of capital nmic will need to maintain to support the agreement , which is equal to the amount of primary net risk-in-force on this pool . the capital we are required to maintain to support this risk will decline over the 10 -year term of the agreement as the loans in the pool amortize . nmic will be paid monthly premiums by fannie mae based on a fixed premium rate and the aggregate outstanding unpaid principal balance of loans in the pool . similar to other monthly products , we will record the premium received on a monthly basis as written premium . in addition , all of the premium will be recorded as earned in

we also do not own or operate , and currently have no plans to establish , any manufacturing facilities . we rely , and expect to continue to rely , on third parties for the manufacture of our product candidates for preclinical and clinical testing , as well as for commercial manufacturing if any of our product candidates obtain marketing approval . we believe that this strategy allows us to maintain a more efficient infrastructure by eliminating the need for us to invest in our own manufacturing facilities , equipment and personnel while also enabling us to focus our expertise and resources on the development of our product candidates . to date , we have financed our operations primarily through proceeds from the issuance of common stock and private placements of our convertible preferred stock . as of december 31 , 2020 , we had cash and cash equivalents and short-term investments of $ 396.9 million . based on our current operating plan , we believe that our current cash and cash equivalents will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months . we have incurred significant losses since the commencement of our operations . our net losses for the years ended december 31 , 2020 and 2019 were $ 35.8 million and $ 12.0 million , respectively , and we expect to continue to incur significant and increasing losses for the foreseeable future as we continue to advance our product candidates and any future product candidates from discovery through preclinical development and into clinical trials as we seek regulatory approval for these product candidates . our net losses may fluctuate significantly from period to period , depending on the timing of expenditures on our research and development activities . as of december 31 , 2020 , we had an accumulated deficit of $ 53.3 million . 98 we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities as we : ● advance our raf and fgfr programs from discovery and preclinical development into and through clinical development ; ● advance the development of our other small molecule research programs , including our cdk12 inhibitor ; ● expand our pipeline of product candidates through our own product discovery and development efforts ; ● seek to discover and develop additional product candidates ; ● seek regulatory approvals for any product candidates that successfully complete clinical trials ; ● establish a sales , marketing and distribution infrastructure to commercialize any approved product candidates and related additional commercial manufacturing costs ; ● implement operational , financial and management systems ; ● attract , hire and retain additional clinical , scientific , management and administrative personnel ; ● maintain , expand , protect and enforce our intellectual property portfolio , including patents , trade secrets and know how ; and ● operate as a public company . we will require substantial additional funding to develop our product candidates and support our continuing operations . until such time that we can generate significant revenue from product sales or other sources , if ever , we expect to finance our operations through the sale of equity , debt financings or other capital sources , which could include income from collaborations , strategic partnerships or marketing , distribution , licensing or other strategic arrangements with third parties , or from grants . we may be unable to raise additional funds or to enter into such agreements or arrangements on favorable terms , or at all . our ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and the recent disruptions to , and volatility in , the credit and financial markets in the united states and worldwide resulting from the ongoing covid-19 pandemic and otherwise . our failure to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on our business , results of operations or financial condition , including requiring us to have to delay , reduce or eliminate our product development or future commercialization efforts . insufficient liquidity may also require us to relinquish rights to product candidates at an earlier stage of development or on less favorable terms than we would otherwise choose . the amount and timing of our future funding requirements will depend on many factors , including the pace and results of our development efforts . we can not provide assurance that we will ever be profitable or generate positive cash flow from operating activities . the global covid-19 pandemic continues to rapidly evolve . the extent of the impact of the covid-19 on our business , operations and development timelines and plans remains uncertain , and will depend on certain developments , including the duration and spread of the outbreak and its impact on our development activities , planned clinical trial enrollment , future trial sites , cros , third-party manufacturers , and other third parties with whom we do business , as well as its impact on regulatory authorities and our key scientific and management personnel . the ultimate impact of the covid-19 pandemic or a similar health epidemic is highly uncertain and subject to change . to the extent possible , we are conducting business as usual , with necessary or advisable modifications to employee travel and with our employees working remotely . we will continue to actively monitor the rapidly evolving situation related to covid-19 and may take further actions that alter our operations , including those that may be required by federal , state or local authorities , or that we determine are in the best interests of our employees and other third parties with whom we do business . at this point , the extent to which the covid-19 pandemic may affect our business , operations and development timelines and plans , including the resulting impact on our expenditures and capital needs , remains uncertain . story_separator_special_tag or royalties on , our current or future product candidates , if any ; and ● the costs associated with operating as a public company . a change in the outcome of any of these or other factors with respect to the development of any of our product candidates could significantly change the costs and timing associated with the development of that product candidate . furthermore , our operating plans may change in the future , and we may need additional funds to meet operational needs and capital requirements associated with such operating plans . story_separator_special_tag our actual results may differ from these estimates . 105 while our significant accounting policies are described in more detail in the notes to our financial statements appearing elsewhere in this annual report on form 10-k , we believe that the following accounting policies are critical to understanding our historical and future performance , as the policies relate to the more significant areas involving management 's judgments and estimates used in the preparation of our financial statements . research and development expenses as part of the process of preparing our financial statements , we are required to estimate our accrued research and development expenses as of each balance sheet date . this process involves reviewing open contracts and purchase orders , communicating with our 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 costs . the majority of our service providers invoice us in arrears for services performed , based on a pre-determined schedule or when contractual milestones are met , but some require advance payments . we make estimates of our accrued expenses as of each balance sheet date in the financial statements based on facts and circumstances known to us at that time . if timelines or contracts are modified based upon changes in the protocol or scope of work to be performed , we modify our estimates and accruals accordingly on a prospective basis . we base our expenses related to external research and development services on our estimates of the services received and efforts expended pursuant to quotes and contracts with vendors that conduct research and development on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation stock-based compensation expense represents the cost of the grant date fair value of employee , officer , director and non-employee stock option grants , estimated in accordance with the applicable accounting guidance , recognized on a straight-line basis over the vesting period . the vesting period generally approximates the expected service period of the awards . we recognize forfeitures as they occur . the fair value of stock options is estimated using a black-scholes valuation model on the date of grant . the black-scholes option-pricing model requires inputs based on certain subjective assumptions . changes to these assumptions can materially affect the fair value of stock options and ultimately the amount of stock-based compensation expense recognized in our financial statements . these assumptions include : ● fair value of common stock- prior to our initial public offering , the estimated fair value of our common stock was determined by our board of directors as of the date of each option grant , with input from management , considering our most recently available third-party valuation of our common stock as well as our board of directors ' assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent third-party valuation to the date of the grant . since the completion of our initial public offering , the fair value of each share of common stock underlying stock option grants is based on the closing price of our common stock on the nasdaq global select market as reported on the date of grant . ● expected term-we have opted to use the “ simplified method ” for estimating the expected term of options , whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option , which is generally 10 years . ● expected volatility-due to our limited operating history and a lack of company-specific historical and implied volatility data , we have based our estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded . the historical volatility data was computed using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of the stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . ● risk-free interest rate-the risk-free interest rates used are based on

cash flows the following tables summarizes our cash flow for the periods indicated : replace_table_token_3_th operating activities net cash used in operating activities during the year ended december 31 , 2020 was $ 30.2 million . this consisted of our net loss of $ 35.8 million offset by a net increase in working capital of $ 3.1 million , primarily due to increases in accounts payable and accrued expenses for research and development activities , increases in prepaid expenses and other assets and a decrease in intercompany receivables , net of stock compensation expense of $ 2.5 million . net cash used in operating activities during the year ended december 31 , 2019 was $ 10.5 million . this consisted of our net loss of $ 12.0 million offset by a net increase in working capital of $ 1.4 million , primarily due to increases in accounts payable and accrued expenses for research and development activities . investing activities net cash used in investing activities during the year ended december 31 , 2020 was $ 31.7 million and related to purchases of short-term investments of $ 31.4 million and purchases of property and equipment of $ 0.3 million . there was no cash used in or provided by investing activities during the year ended december 31 , 2019. financing activities net cash provided by financing activities during the year ended december 31 , 2020 was $ 350.9 million . this consisted primarily of proceeds of $ 97.7 million from the sale of shares of series c convertible preferred stock , net of issuance costs , and proceeds of $ 253.3 million from our initial public offering , net of issuance costs , in december 2020 . 104 net cash provided by financing activities during the year ended december 31 , 2019 was $ 80.0 million . this primarily consisted of proceeds of $ 5.8 million resulting from the sale of shares of series a convertible preferred stock , net of issuance costs , and proceeds of $ 74.2 million resulting from the sale of shares of series b convertible preferred stock , net of issuance costs .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following tables summarizes our cash flow for the periods indicated : replace_table_token_3_th operating activities net cash used in operating activities during the year ended december 31 , 2020 was $ 30.2 million . this consisted of our net loss of $ 35.8 million offset by a net increase in working capital of $ 3.1 million , primarily due to increases in accounts payable and accrued expenses for research and development activities , increases in prepaid expenses and other assets and a decrease in intercompany receivables , net of stock compensation expense of $ 2.5 million . net cash used in operating activities during the year ended december 31 , 2019 was $ 10.5 million . this consisted of our net loss of $ 12.0 million offset by a net increase in working capital of $ 1.4 million , primarily due to increases in accounts payable and accrued expenses for research and development activities . investing activities net cash used in investing activities during the year ended december 31 , 2020 was $ 31.7 million and related to purchases of short-term investments of $ 31.4 million and purchases of property and equipment of $ 0.3 million . there was no cash used in or provided by investing activities during the year ended december 31 , 2019. financing activities net cash provided by financing activities during the year ended december 31 , 2020 was $ 350.9 million . this consisted primarily of proceeds of $ 97.7 million from the sale of shares of series c convertible preferred stock , net of issuance costs , and proceeds of $ 253.3 million from our initial public offering , net of issuance costs , in december 2020 . 104 net cash provided by financing activities during the year ended december 31 , 2019 was $ 80.0 million . this primarily consisted of proceeds of $ 5.8 million resulting from the sale of shares of series a convertible preferred stock , net of issuance costs , and proceeds of $ 74.2 million resulting from the sale of shares of series b convertible preferred stock , net of issuance costs . ``` Suspicious Activity Report : we also do not own or operate , and currently have no plans to establish , any manufacturing facilities . we rely , and expect to continue to rely , on third parties for the manufacture of our product candidates for preclinical and clinical testing , as well as for commercial manufacturing if any of our product candidates obtain marketing approval . we believe that this strategy allows us to maintain a more efficient infrastructure by eliminating the need for us to invest in our own manufacturing facilities , equipment and personnel while also enabling us to focus our expertise and resources on the development of our product candidates . to date , we have financed our operations primarily through proceeds from the issuance of common stock and private placements of our convertible preferred stock . as of december 31 , 2020 , we had cash and cash equivalents and short-term investments of $ 396.9 million . based on our current operating plan , we believe that our current cash and cash equivalents will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months . we have incurred significant losses since the commencement of our operations . our net losses for the years ended december 31 , 2020 and 2019 were $ 35.8 million and $ 12.0 million , respectively , and we expect to continue to incur significant and increasing losses for the foreseeable future as we continue to advance our product candidates and any future product candidates from discovery through preclinical development and into clinical trials as we seek regulatory approval for these product candidates . our net losses may fluctuate significantly from period to period , depending on the timing of expenditures on our research and development activities . as of december 31 , 2020 , we had an accumulated deficit of $ 53.3 million . 98 we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities as we : ● advance our raf and fgfr programs from discovery and preclinical development into and through clinical development ; ● advance the development of our other small molecule research programs , including our cdk12 inhibitor ; ● expand our pipeline of product candidates through our own product discovery and development efforts ; ● seek to discover and develop additional product candidates ; ● seek regulatory approvals for any product candidates that successfully complete clinical trials ; ● establish a sales , marketing and distribution infrastructure to commercialize any approved product candidates and related additional commercial manufacturing costs ; ● implement operational , financial and management systems ; ● attract , hire and retain additional clinical , scientific , management and administrative personnel ; ● maintain , expand , protect and enforce our intellectual property portfolio , including patents , trade secrets and know how ; and ● operate as a public company . we will require substantial additional funding to develop our product candidates and support our continuing operations . until such time that we can generate significant revenue from product sales or other sources , if ever , we expect to finance our operations through the sale of equity , debt financings or other capital sources , which could include income from collaborations , strategic partnerships or marketing , distribution , licensing or other strategic arrangements with third parties , or from grants . we may be unable to raise additional funds or to enter into such agreements or arrangements on favorable terms , or at all . our ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and the recent disruptions to , and volatility in , the credit and financial markets in the united states and worldwide resulting from the ongoing covid-19 pandemic and otherwise . our failure to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on our business , results of operations or financial condition , including requiring us to have to delay , reduce or eliminate our product development or future commercialization efforts . insufficient liquidity may also require us to relinquish rights to product candidates at an earlier stage of development or on less favorable terms than we would otherwise choose . the amount and timing of our future funding requirements will depend on many factors , including the pace and results of our development efforts . we can not provide assurance that we will ever be profitable or generate positive cash flow from operating activities . the global covid-19 pandemic continues to rapidly evolve . the extent of the impact of the covid-19 on our business , operations and development timelines and plans remains uncertain , and will depend on certain developments , including the duration and spread of the outbreak and its impact on our development activities , planned clinical trial enrollment , future trial sites , cros , third-party manufacturers , and other third parties with whom we do business , as well as its impact on regulatory authorities and our key scientific and management personnel . the ultimate impact of the covid-19 pandemic or a similar health epidemic is highly uncertain and subject to change . to the extent possible , we are conducting business as usual , with necessary or advisable modifications to employee travel and with our employees working remotely . we will continue to actively monitor the rapidly evolving situation related to covid-19 and may take further actions that alter our operations , including those that may be required by federal , state or local authorities , or that we determine are in the best interests of our employees and other third parties with whom we do business . at this point , the extent to which the covid-19 pandemic may affect our business , operations and development timelines and plans , including the resulting impact on our expenditures and capital needs , remains uncertain . story_separator_special_tag or royalties on , our current or future product candidates , if any ; and ● the costs associated with operating as a public company . a change in the outcome of any of these or other factors with respect to the development of any of our product candidates could significantly change the costs and timing associated with the development of that product candidate . furthermore , our operating plans may change in the future , and we may need additional funds to meet operational needs and capital requirements associated with such operating plans . story_separator_special_tag our actual results may differ from these estimates . 105 while our significant accounting policies are described in more detail in the notes to our financial statements appearing elsewhere in this annual report on form 10-k , we believe that the following accounting policies are critical to understanding our historical and future performance , as the policies relate to the more significant areas involving management 's judgments and estimates used in the preparation of our financial statements . research and development expenses as part of the process of preparing our financial statements , we are required to estimate our accrued research and development expenses as of each balance sheet date . this process involves reviewing open contracts and purchase orders , communicating with our 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 costs . the majority of our service providers invoice us in arrears for services performed , based on a pre-determined schedule or when contractual milestones are met , but some require advance payments . we make estimates of our accrued expenses as of each balance sheet date in the financial statements based on facts and circumstances known to us at that time . if timelines or contracts are modified based upon changes in the protocol or scope of work to be performed , we modify our estimates and accruals accordingly on a prospective basis . we base our expenses related to external research and development services on our estimates of the services received and efforts expended pursuant to quotes and contracts with vendors that conduct research and development on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation stock-based compensation expense represents the cost of the grant date fair value of employee , officer , director and non-employee stock option grants , estimated in accordance with the applicable accounting guidance , recognized on a straight-line basis over the vesting period . the vesting period generally approximates the expected service period of the awards . we recognize forfeitures as they occur . the fair value of stock options is estimated using a black-scholes valuation model on the date of grant . the black-scholes option-pricing model requires inputs based on certain subjective assumptions . changes to these assumptions can materially affect the fair value of stock options and ultimately the amount of stock-based compensation expense recognized in our financial statements . these assumptions include : ● fair value of common stock- prior to our initial public offering , the estimated fair value of our common stock was determined by our board of directors as of the date of each option grant , with input from management , considering our most recently available third-party valuation of our common stock as well as our board of directors ' assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent third-party valuation to the date of the grant . since the completion of our initial public offering , the fair value of each share of common stock underlying stock option grants is based on the closing price of our common stock on the nasdaq global select market as reported on the date of grant . ● expected term-we have opted to use the “ simplified method ” for estimating the expected term of options , whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option , which is generally 10 years . ● expected volatility-due to our limited operating history and a lack of company-specific historical and implied volatility data , we have based our estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded . the historical volatility data was computed using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of the stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . ● risk-free interest rate-the risk-free interest rates used are based on

we believe that determining and executing on a strategy to receive , process and deliver online orders , which we refer to collectively as fulfillment , is critical to success for online sellers . therefore , it will be increasingly important for us to facilitate and optimize fulfillment services on behalf of our customers , which in turn may result in additional research and development investment . we believe our 2017 acquisition of a fulfillment platform will further enhance our fulfillment offering and strategy . focus on employees . none of our success would be possible without our team . we strive to provide our employees competitive compensation and benefits programs to help drive the success of our customers . we increased headcount by 5.7 % from december 31 , 2016 to december 31 , 2017 to help drive revenue growth and support our overall operations . shifts in foreign currency . our operations in the united kingdom were impacted by the 4.5 % decline in the average exchange rate of the british pound sterling against the u.s. dollar for the year ended december 31 , 2017 as compared to the prior year . the decline of the british pound sterling against the u.s. dollar resulted in a $ 0.7 million decrease in revenue for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 . seasonality . our revenue fluctuates as a result of seasonal variations in our business , principally due to the peak consumer demand and related increased volume of our customers ' gmv during the year-end holiday season . as a result , we have historically had higher revenue in our fourth quarter than other quarters due to increased gmv processed through our platform , resulting in higher variable subscription fees . opportunities and risks dynamic e-commerce landscape . we will need to continue to innovate in the face of a rapidly changing e-commerce landscape if we are to remain competitive , and we will need to effectively manage our growth , especially related to our international expansion . retailers and branded manufacturers . as consumer preferences potentially shift from smaller retailers , we need to continue to add large retailers and branded manufacturers as profitable customers . these customers generally pay a lower percentage of gmv as fees to us based on the relatively higher volume of their gmv processed through our platform . to help drive our future growth , we have made significant investments in our sales force and allocated resources focused on growing our customer base of large retailers and branded manufacturers . we continue to focus our efforts on increasing value for our customers to support higher rates . increasing complexity and fragmentation of e-commerce . although e-commerce continues to expand as retailers and branded manufacturers continue to increase their online sales , it is also becoming more complex and fragmented due to the hundreds of channels available to retailers and branded manufacturers and the rapid pace of change and innovation across those channels . in order to gain consumers ' attention in a more crowded and competitive online marketplace , many retailers and an increasing number of branded manufacturers sell their merchandise through multiple online channels , each with its own rules , requirements and specifications . in particular , third-party marketplaces are an increasingly important driver of growth for a number of large online retailers and branded manufacturers , and as a result we need to continue to support multiple channels in a variety of geographies in order to support our targeted revenue growth . as of december 31 , 2017 , we supported 89 marketplaces , up from over 70 at december 31 , 2016 . global growth in e-commerce . we believe the growth in e-commerce globally presents an opportunity for retailers and branded manufacturers to engage in international sales . however , country-specific marketplaces are often the market share leaders in their regions , as is the case for alibaba in asia . in order to help our customers capitalize on this potential market opportunity , and to address our customers ' needs with respect to cross-border trade , we intend to continue to invest in our international operations , specifically in the asia pacific region . doing business overseas involves substantial challenges , including management attention and resources needed to adapt to multiple languages , cultures , laws and commercial infrastructure , as further described in this report under the caption `` risks related to our international operations . `` our senior management continuously focuses on these and other trends and challenges , and we believe that our culture of innovation and our history of growth and expansion will contribute to the success of our business . we can not , however , assure you that we will be successful in addressing and managing the many challenges and risks that we face . 33 key financial and operating metrics the average revenue generated by our customers is a primary determinant of our revenue . we calculate this metric by dividing our revenue for a particular period by the average monthly number of customers during the period , which is calculated by taking the sum of the number of customers at the end of each month in the period and dividing by the number of months in the period . we typically calculate average revenue per customer in absolute dollars on a rolling twelve-month basis , but we may also calculate percentage changes in average revenue per customer on a quarterly basis in order to help us evaluate our period-over-period performance . story_separator_special_tag our improved gross margin is a result of our strategic efforts to achieve increasing scale in our business operations . operating margin improved by 890 basis points to ( 12.2 ) % during the year ended december 31 , 2016 due to our 12.5 % increase in revenue , which exceeded the increases in our cost of revenue and operating expenses of 6.9 % and 3.6 % , respectively , as a result of a strategic effort to strengthen margins in our business . total other income ( expense ) other income ( expense ) consists primarily of : interest received on our cash and cash equivalents ; interest expense on our capital leases ; and the net effect of foreign currency revaluation gains and losses . comparison of 2017 to 2016 other income ( expense ) increased by $ 0.1 million to $ 0.3 million for the year ended december 31 , 2017 primarily due to interest income on our cash and cash equivalents . comparison of 2016 to 2015 other income ( expense ) increased by $ 0.1 million to $ 0.2 million for the year ended december 31 , 2016 primarily due to interest income on our cash and cash equivalents . income tax expense ( benefit ) our provision for income taxes consists of provisions for federal , state , and foreign income taxes . we operate in an international environment with operations in various locations outside of the united states . accordingly , our combined income tax rate is a composite rate reflecting our operating results in various locations and the applicable rates . 41 comparison of 2017 to 2016 income tax expense was $ 0.3 million for the year ended december 31 , 2017 compared to an income tax benefit of $ 5.7 million for the year ended december 31 , 2016 . the change was primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million . the release of the valuation allowance was the result of our evaluation of the likelihood of potential tax benefits related to our foreign subsidiaries ' most recent three years of operating results and projections of future profitability , which primarily resulted from a change in our global transfer pricing methodology . comparison of 2016 to 2015 income tax benefit was $ 5.7 million for the year ended december 31 , 2016 compared to an income tax benefit of $ 0.2 million for the year ended december 31 , 2015 primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million noted above . story_separator_special_tag font-size:10pt ; `` > a $ 5.5 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . these decreases in cash were partially offset by increases in cash due to a $ 5.2 million increase in accounts payable and accrued expenses , primarily driven by timing of payments to our vendors and a one-time charge in connection with our decision to enter into vdas related to our potential unpaid sales tax obligations ; and a $ 3.6 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis . investing activities our cash used in investing activities consisted of : $ 2.8 million of capital expenditures primarily related to the purchase of computer equipment ; $ 2.2 million for the acquisition of hublogix , net of cash acquired ; and $ 0.3 million of internal-use software development costs . financing activities our cash used in financing activities consisted of : $ 2.8 million used for the repayment of capital leases ; $ 2.7 million used for the payment of taxes related to the net-share settlement of restricted stock units ; partially offset by $ 1.4 million in cash received upon the exercise of stock options . 2016 operating activities our cash provided by operating activities consisted of a net loss of $ ( 8.0 ) million adjusted for certain non-cash items totaling $ 15.1 million , which consisted of stock-based compensation expense , depreciation and amortization expense , bad debt expense and other non-cash items , principally the amortization of a lease incentive obligation related to our new corporate headquarters . the net increase in cash resulting from changes in assets and liabilities of $ 4.5 million primarily consisted of : a $ 4.7 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis ; and a $ 3.7 million increase in accounts payable and accrued expenses , primarily related to activity-based fees incurred for specific channels on behalf of our customers . these increases in cash were partially offset by decreases in cash due to a $ 2.0 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . the increase is partially offset by the receipt of cash for a lease incentive related to our new corporate headquarters ; and a $ 1.9 million increase in accounts receivable as a result of increased billings , primarily driven by an increase in average contract size as well as more semi-annual and annual contracts being invoiced . 44 investing activities our cash used in investing activities consisted of : $ 1.8 million of capital

liquidity and capital resources we derive our liquidity and operating capital primarily from cash flows from operations . based on our current level of operations and anticipated growth , we believe our future cash flows from operating activities and our existing cash balances will be sufficient to meet our cash requirements for at least the next 12 months . during this period , we expect our capital expenditure requirements to approximate a range of $ 2.0 million to $ 4.0 million , which will primarily consist of computer hardware and purchased software . working capital the following table summarizes our cash and cash equivalents , accounts receivable and working capital as of the end of each of the last three years : replace_table_token_7_th our cash at december 31 , 2017 was held for working capital purposes . we do not enter into investments for trading or speculative purposes . our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity . accordingly , our cash is invested primarily in demand deposit accounts and short-term money market accounts . of our total cash and cash equivalents , approximately 10 % was held outside of the united states at december 31 , 2017 . our international operations primarily consist of selling and marketing and research and development functions supported by our u.s. operations , and we are dependent on our u.s. operations for our international working capital needs . if our cash and cash equivalents held outside of the united states were ever needed for our operations inside the united states , we could be required to accrue and pay u.s. taxes to repatriate these funds .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 derive our liquidity and operating capital primarily from cash flows from operations . based on our current level of operations and anticipated growth , we believe our future cash flows from operating activities and our existing cash balances will be sufficient to meet our cash requirements for at least the next 12 months . during this period , we expect our capital expenditure requirements to approximate a range of $ 2.0 million to $ 4.0 million , which will primarily consist of computer hardware and purchased software . working capital the following table summarizes our cash and cash equivalents , accounts receivable and working capital as of the end of each of the last three years : replace_table_token_7_th our cash at december 31 , 2017 was held for working capital purposes . we do not enter into investments for trading or speculative purposes . our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity . accordingly , our cash is invested primarily in demand deposit accounts and short-term money market accounts . of our total cash and cash equivalents , approximately 10 % was held outside of the united states at december 31 , 2017 . our international operations primarily consist of selling and marketing and research and development functions supported by our u.s. operations , and we are dependent on our u.s. operations for our international working capital needs . if our cash and cash equivalents held outside of the united states were ever needed for our operations inside the united states , we could be required to accrue and pay u.s. taxes to repatriate these funds . ``` Suspicious Activity Report : we believe that determining and executing on a strategy to receive , process and deliver online orders , which we refer to collectively as fulfillment , is critical to success for online sellers . therefore , it will be increasingly important for us to facilitate and optimize fulfillment services on behalf of our customers , which in turn may result in additional research and development investment . we believe our 2017 acquisition of a fulfillment platform will further enhance our fulfillment offering and strategy . focus on employees . none of our success would be possible without our team . we strive to provide our employees competitive compensation and benefits programs to help drive the success of our customers . we increased headcount by 5.7 % from december 31 , 2016 to december 31 , 2017 to help drive revenue growth and support our overall operations . shifts in foreign currency . our operations in the united kingdom were impacted by the 4.5 % decline in the average exchange rate of the british pound sterling against the u.s. dollar for the year ended december 31 , 2017 as compared to the prior year . the decline of the british pound sterling against the u.s. dollar resulted in a $ 0.7 million decrease in revenue for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 . seasonality . our revenue fluctuates as a result of seasonal variations in our business , principally due to the peak consumer demand and related increased volume of our customers ' gmv during the year-end holiday season . as a result , we have historically had higher revenue in our fourth quarter than other quarters due to increased gmv processed through our platform , resulting in higher variable subscription fees . opportunities and risks dynamic e-commerce landscape . we will need to continue to innovate in the face of a rapidly changing e-commerce landscape if we are to remain competitive , and we will need to effectively manage our growth , especially related to our international expansion . retailers and branded manufacturers . as consumer preferences potentially shift from smaller retailers , we need to continue to add large retailers and branded manufacturers as profitable customers . these customers generally pay a lower percentage of gmv as fees to us based on the relatively higher volume of their gmv processed through our platform . to help drive our future growth , we have made significant investments in our sales force and allocated resources focused on growing our customer base of large retailers and branded manufacturers . we continue to focus our efforts on increasing value for our customers to support higher rates . increasing complexity and fragmentation of e-commerce . although e-commerce continues to expand as retailers and branded manufacturers continue to increase their online sales , it is also becoming more complex and fragmented due to the hundreds of channels available to retailers and branded manufacturers and the rapid pace of change and innovation across those channels . in order to gain consumers ' attention in a more crowded and competitive online marketplace , many retailers and an increasing number of branded manufacturers sell their merchandise through multiple online channels , each with its own rules , requirements and specifications . in particular , third-party marketplaces are an increasingly important driver of growth for a number of large online retailers and branded manufacturers , and as a result we need to continue to support multiple channels in a variety of geographies in order to support our targeted revenue growth . as of december 31 , 2017 , we supported 89 marketplaces , up from over 70 at december 31 , 2016 . global growth in e-commerce . we believe the growth in e-commerce globally presents an opportunity for retailers and branded manufacturers to engage in international sales . however , country-specific marketplaces are often the market share leaders in their regions , as is the case for alibaba in asia . in order to help our customers capitalize on this potential market opportunity , and to address our customers ' needs with respect to cross-border trade , we intend to continue to invest in our international operations , specifically in the asia pacific region . doing business overseas involves substantial challenges , including management attention and resources needed to adapt to multiple languages , cultures , laws and commercial infrastructure , as further described in this report under the caption `` risks related to our international operations . `` our senior management continuously focuses on these and other trends and challenges , and we believe that our culture of innovation and our history of growth and expansion will contribute to the success of our business . we can not , however , assure you that we will be successful in addressing and managing the many challenges and risks that we face . 33 key financial and operating metrics the average revenue generated by our customers is a primary determinant of our revenue . we calculate this metric by dividing our revenue for a particular period by the average monthly number of customers during the period , which is calculated by taking the sum of the number of customers at the end of each month in the period and dividing by the number of months in the period . we typically calculate average revenue per customer in absolute dollars on a rolling twelve-month basis , but we may also calculate percentage changes in average revenue per customer on a quarterly basis in order to help us evaluate our period-over-period performance . story_separator_special_tag our improved gross margin is a result of our strategic efforts to achieve increasing scale in our business operations . operating margin improved by 890 basis points to ( 12.2 ) % during the year ended december 31 , 2016 due to our 12.5 % increase in revenue , which exceeded the increases in our cost of revenue and operating expenses of 6.9 % and 3.6 % , respectively , as a result of a strategic effort to strengthen margins in our business . total other income ( expense ) other income ( expense ) consists primarily of : interest received on our cash and cash equivalents ; interest expense on our capital leases ; and the net effect of foreign currency revaluation gains and losses . comparison of 2017 to 2016 other income ( expense ) increased by $ 0.1 million to $ 0.3 million for the year ended december 31 , 2017 primarily due to interest income on our cash and cash equivalents . comparison of 2016 to 2015 other income ( expense ) increased by $ 0.1 million to $ 0.2 million for the year ended december 31 , 2016 primarily due to interest income on our cash and cash equivalents . income tax expense ( benefit ) our provision for income taxes consists of provisions for federal , state , and foreign income taxes . we operate in an international environment with operations in various locations outside of the united states . accordingly , our combined income tax rate is a composite rate reflecting our operating results in various locations and the applicable rates . 41 comparison of 2017 to 2016 income tax expense was $ 0.3 million for the year ended december 31 , 2017 compared to an income tax benefit of $ 5.7 million for the year ended december 31 , 2016 . the change was primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million . the release of the valuation allowance was the result of our evaluation of the likelihood of potential tax benefits related to our foreign subsidiaries ' most recent three years of operating results and projections of future profitability , which primarily resulted from a change in our global transfer pricing methodology . comparison of 2016 to 2015 income tax benefit was $ 5.7 million for the year ended december 31 , 2016 compared to an income tax benefit of $ 0.2 million for the year ended december 31 , 2015 primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million noted above . story_separator_special_tag font-size:10pt ; `` > a $ 5.5 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . these decreases in cash were partially offset by increases in cash due to a $ 5.2 million increase in accounts payable and accrued expenses , primarily driven by timing of payments to our vendors and a one-time charge in connection with our decision to enter into vdas related to our potential unpaid sales tax obligations ; and a $ 3.6 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis . investing activities our cash used in investing activities consisted of : $ 2.8 million of capital expenditures primarily related to the purchase of computer equipment ; $ 2.2 million for the acquisition of hublogix , net of cash acquired ; and $ 0.3 million of internal-use software development costs . financing activities our cash used in financing activities consisted of : $ 2.8 million used for the repayment of capital leases ; $ 2.7 million used for the payment of taxes related to the net-share settlement of restricted stock units ; partially offset by $ 1.4 million in cash received upon the exercise of stock options . 2016 operating activities our cash provided by operating activities consisted of a net loss of $ ( 8.0 ) million adjusted for certain non-cash items totaling $ 15.1 million , which consisted of stock-based compensation expense , depreciation and amortization expense , bad debt expense and other non-cash items , principally the amortization of a lease incentive obligation related to our new corporate headquarters . the net increase in cash resulting from changes in assets and liabilities of $ 4.5 million primarily consisted of : a $ 4.7 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis ; and a $ 3.7 million increase in accounts payable and accrued expenses , primarily related to activity-based fees incurred for specific channels on behalf of our customers . these increases in cash were partially offset by decreases in cash due to a $ 2.0 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . the increase is partially offset by the receipt of cash for a lease incentive related to our new corporate headquarters ; and a $ 1.9 million increase in accounts receivable as a result of increased billings , primarily driven by an increase in average contract size as well as more semi-annual and annual contracts being invoiced . 44 investing activities our cash used in investing activities consisted of : $ 1.8 million of capital

which we have interests ; threatened terrorist attacks and military action ; 32 reduced access to capital markets or significant increases in costs to borrow ; and a reduction of advertising revenue associated with unexpected reductions in the number of subscribers . for additional risk factors , refer to item 1a , “ risk factors . ” these forward-looking statements and such risks , uncertainties , and other factors speak only as of the date of this annual report on form 10-k , and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein , to reflect any change in our expectations with regard thereto , or any other change in events , conditions or circumstances on which any such statement is based . business overview we are a global media company that provides content across multiple distribution platforms , including pay-tv , fta and broadcast television , websites , digital distribution arrangements and content licensing agreements . our portfolio of networks includes prominent television brands such as discovery channel , our most widely distributed global brand , tlc , animal planet , id , velocity ( known as turbo outside of the u.s. ) and eurosport , a leading sports entertainment pay-tv programmer across europe and asia . we also develop and sell curriculum-based education products and services and operate production studios . our objectives are to invest in content for our networks to build viewership , optimize distribution revenue , capture advertising sales and create or reposition branded channels and businesses that can sustain long-term growth and occupy a desired content niche with strong consumer appeal . our strategy is to maximize the distribution , ratings and profit potential of each of our branded networks . in addition to growing distribution and advertising revenues for our branded networks , we are extending content distribution across new platforms , including brand-aligned websites , web-native networks , on-line streaming , mobile devices , vod and broadband channels , which provide promotional platforms for our television content and serve as additional outlets for advertising and distribution revenue . audience ratings are a key driver in generating advertising revenue and creating demand on the part of cable television operators , dth satellite operators , telecommunication service providers , and other content distributors , that deliver our content to their customers . our content spans genres including survival , exploration , sports , lifestyle , general entertainment , heroes , adventure , crime and investigation , health and kids . we have an extensive library of high-definition content and own rights to much of our content and footage , which enables us to exploit our library to launch brands and services into new markets quickly . our content can be re-edited and updated in a cost-effective manner to provide topical versions of subject matter that can be utilized around the world on a variety of platforms . although the company utilizes certain brands and content globally , we classify our operations in two reportable segments : u.s. networks , consisting principally of domestic television networks and websites , and international networks , consisting primarily of international television networks and websites . for further discussion of our company , segments in which we do business , and our content development activities and revenues , see our business overview set forth in item 1 , `` business `` in this annual report on form 10-k. 33 results of operations – 2016 vs. 2015 consolidated results of operations – 2016 vs. 2015 our consolidated results of operations for 2016 and 2015 were as follows ( in millions ) . replace_table_token_5_th nm - not meaningful revenues distribution revenue includes affiliate fees and digital distribution revenue and is largely dependent on the rates negotiated in our distribution agreements , the number of subscribers that receive our networks or content , and the market demand for the content that we provide . distribution revenue increased 5 % . excluding the impact of foreign currency fluctuations and the acquisition of eurosport france in march 2015 , distribution revenue increased 7 % at our u.s. networks segment and 9 % at our international networks segment . u.s. networks distribution revenue increased primarily due to contractual rate increases partially offset by slight declines in subscribers . international networks ' distribution revenue increases were mostly due to increases in rates in europe and increases in subscribers and rates in latin america . advertising revenue is dependent upon a number of factors , including the stage of development of television markets , the number of subscribers to our channels , viewership demographics , the popularity of our content , our ability to sell commercial time over a group of channels , market demand , the mix of sales of commercial time between the upfront and scatter markets , and economic conditions . these factors impact the pricing and volume of our advertising inventory . advertising revenue decreased 1 % . excluding the impact of foreign currency fluctuations and the disposition of the company 's radio business , advertising revenue increased 2 % as a result of increases of 2 % at our u.s. networks and 3 % at our international networks . the increase for our u.s. networks was due to inventory management and pricing increases , partially offset by a decline in ratings . the increase for our international networks was primarily driven by ratings and volume in southern europe , and to a lesser extent , pricing , ratings and volume in central and eastern europe , the middle east , and africa ( “ ceemea ” ) , partially offset by lower ratings in northern europe . other revenue decreased 2 % . excluding the impact of foreign currency fluctuations and the disposition of the company 's radio business , other revenue , which includes revenues from services provided to equity investees , increased 3 % . story_separator_special_tag the increase in our international networks ' distribution revenue , excluding the impact of foreign currency and the acquisition of eurosport , was mostly due to increases in affiliate rates and subscribers , in equivalent amounts , in latin america , and , a lesser extent , to increases in subscribers in ceemea and digital distribution revenue . 43 advertising revenue is dependent upon a number of factors , including the stage of development of television markets , the number of subscribers to our channels , viewership demographics , the popularity of our content , our ability to sell commercial time over a group of channels , market demand , the mix of sales of commercial time between the upfront and scatter markets , and economic conditions . these factors impact the pricing and volume of our advertising inventory . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , advertising revenue increased 6 % , primarily due to increases of 11 % at our international networks segment and , to a lesser extent , increases of 2 % at our u.s. networks segment . the increase at our international networks segment was mostly driven by pricing and , to a lesser extent , ratings in southern europe and pricing , volume , and to a lesser extent , ratings in latin america . southern europe and latin america contributed to the increase in equivalent amounts . the increases were also , to a lesser extent , due to pricing in northern europe . these increases were partially offset by decreases due to changes in regulations involving advertising sales operations in russia , as further described in item 1 , `` business `` in this annual report on form 10-k. u.s. networks ' advertising revenue increased due to increases in pricing , partially offset by lower audience delivery . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , other revenue increased 4 % . this increase was primarily due to an increase at our education and other segments due to increased productions and , to a lesser extent , an increase at our international networks segment as result of increased program sales . these increases were offset by a decrease at our u.s. networks segment primarily due to the absence of representation service fees for discovery family , which have been eliminated since the company began to consolidate discovery family . costs of revenues excluding the impact of foreign currency fluctuations , the acquisitions of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , costs of revenues increased 11 % as result of increases of 12 % at our international networks segment and 7 % at our u.s. networks segment . the increases in costs of revenues were mostly due to our commitment to increased spending for content on our networks , which increased content amortization , and , to a lesser extent , increases in content impairments that were not included in restructuring and other charges . excluding the impact of foreign currency fluctuations , the acquisition of eurosport and the effect of the consolidation of discovery family , content amortization was $ 1.5 billion and $ 1.3 billion for the years ended december 31 , 2015 and december 31 , 2014 , respectively . content amortization rates on our networks have been slightly accelerating . selling , general and administrative selling , general and administrative expenses consist principally of employee costs , marketing costs , research costs , occupancy and back office support fees . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the consolidation of discovery family , and the disposition of the company 's radio business , selling , general and administrative expenses increased 3 % for the year ended december 31 , 2015. the increase was primarily due to an increase in selling , general and administrative expense at our international networks segment of 10 % mostly due to increased personnel and associated support costs and , to a lesser extent , increased marketing costs . the increase was also , to a lesser extent , due to slight increases at our u.s. network segment due to an increase in research and , to a lesser extent , marketing costs . these increases were partially offset by a decrease in our equity-based compensation expense . depreciation and amortization depreciation and amortization expense includes depreciation of fixed assets and amortization of finite-lived intangible assets . excluding the impact of foreign currency fluctuations , business combinations and dispositions , depreciation and amortization remained consistent for the year ended december 31 , 2015. restructuring and other charge s restructuring and other charges decreased $ 40 million . the decrease was primarily due to a decrease in content impairment resulting from the post-acquisition rebranding of the hub network to discovery family in 2014 ( see note 6 and note 15 to the accompanying consolidated financial statements . ) 44 loss ( gain ) on disposition loss on dispositions comprised $ 12 million for the sale of the sbs radio business and $ 5 million for the contribution of the russian business to the new russian business for the year ended december 31 , 2015. gain on disposition comprised $ 31 million for the sale of howstuffworks for the year ended december 31 , 2014 . ( see note 3 to the accompanying consolidated financial statements . ) interest expense interest expense remained consistent for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . income from equity investees , net income from our equity method investees declined $ 22

cash provided by operating activities decreased $ 41 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . the decrease was primarily attributable to negative foreign currency fluctuations that impacted the company 's operating performance , increased content investment of $ 90 million and decreases in working capital of $ 182 million due to decreases in accounts payable and accruals . these decreases were partially offset by a decrease in cash payments for equity-based compensation of $ 56 million . investing activities cash flows used in investing activities decreased $ 45 million for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 . the decrease was primarily attributable to a decrease in cash paid for business combinations , net of cash acquired of $ 80 million , partially offset by a decrease in proceeds from dispositions of business of $ 42 million . cash flows used in investing activities decreased $ 267 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . the decrease was primarily attributable to a decrease in cash paid for business combinations , net of cash acquired of $ 292 million and partially offset by an increase in payments for investments , net of $ 92 million . financing activities cash flows used in financing activities increased $ 275 million for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 . the increase was attributable to an increase in repurchases of stock of $ 423 million and a decrease in net borrowings of $ 471 million , which is comprised of increases in repayments on the revolver loans , net of repayments , of $ 973 million partially offset by increased borrowings of senior notes , net of repayments , of $ 411 million and decreases in commercial paper repayments of $ 91 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 provided by operating activities decreased $ 41 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . the decrease was primarily attributable to negative foreign currency fluctuations that impacted the company 's operating performance , increased content investment of $ 90 million and decreases in working capital of $ 182 million due to decreases in accounts payable and accruals . these decreases were partially offset by a decrease in cash payments for equity-based compensation of $ 56 million . investing activities cash flows used in investing activities decreased $ 45 million for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 . the decrease was primarily attributable to a decrease in cash paid for business combinations , net of cash acquired of $ 80 million , partially offset by a decrease in proceeds from dispositions of business of $ 42 million . cash flows used in investing activities decreased $ 267 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . the decrease was primarily attributable to a decrease in cash paid for business combinations , net of cash acquired of $ 292 million and partially offset by an increase in payments for investments , net of $ 92 million . financing activities cash flows used in financing activities increased $ 275 million for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 . the increase was attributable to an increase in repurchases of stock of $ 423 million and a decrease in net borrowings of $ 471 million , which is comprised of increases in repayments on the revolver loans , net of repayments , of $ 973 million partially offset by increased borrowings of senior notes , net of repayments , of $ 411 million and decreases in commercial paper repayments of $ 91 million . ``` Suspicious Activity Report : which we have interests ; threatened terrorist attacks and military action ; 32 reduced access to capital markets or significant increases in costs to borrow ; and a reduction of advertising revenue associated with unexpected reductions in the number of subscribers . for additional risk factors , refer to item 1a , “ risk factors . ” these forward-looking statements and such risks , uncertainties , and other factors speak only as of the date of this annual report on form 10-k , and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein , to reflect any change in our expectations with regard thereto , or any other change in events , conditions or circumstances on which any such statement is based . business overview we are a global media company that provides content across multiple distribution platforms , including pay-tv , fta and broadcast television , websites , digital distribution arrangements and content licensing agreements . our portfolio of networks includes prominent television brands such as discovery channel , our most widely distributed global brand , tlc , animal planet , id , velocity ( known as turbo outside of the u.s. ) and eurosport , a leading sports entertainment pay-tv programmer across europe and asia . we also develop and sell curriculum-based education products and services and operate production studios . our objectives are to invest in content for our networks to build viewership , optimize distribution revenue , capture advertising sales and create or reposition branded channels and businesses that can sustain long-term growth and occupy a desired content niche with strong consumer appeal . our strategy is to maximize the distribution , ratings and profit potential of each of our branded networks . in addition to growing distribution and advertising revenues for our branded networks , we are extending content distribution across new platforms , including brand-aligned websites , web-native networks , on-line streaming , mobile devices , vod and broadband channels , which provide promotional platforms for our television content and serve as additional outlets for advertising and distribution revenue . audience ratings are a key driver in generating advertising revenue and creating demand on the part of cable television operators , dth satellite operators , telecommunication service providers , and other content distributors , that deliver our content to their customers . our content spans genres including survival , exploration , sports , lifestyle , general entertainment , heroes , adventure , crime and investigation , health and kids . we have an extensive library of high-definition content and own rights to much of our content and footage , which enables us to exploit our library to launch brands and services into new markets quickly . our content can be re-edited and updated in a cost-effective manner to provide topical versions of subject matter that can be utilized around the world on a variety of platforms . although the company utilizes certain brands and content globally , we classify our operations in two reportable segments : u.s. networks , consisting principally of domestic television networks and websites , and international networks , consisting primarily of international television networks and websites . for further discussion of our company , segments in which we do business , and our content development activities and revenues , see our business overview set forth in item 1 , `` business `` in this annual report on form 10-k. 33 results of operations – 2016 vs. 2015 consolidated results of operations – 2016 vs. 2015 our consolidated results of operations for 2016 and 2015 were as follows ( in millions ) . replace_table_token_5_th nm - not meaningful revenues distribution revenue includes affiliate fees and digital distribution revenue and is largely dependent on the rates negotiated in our distribution agreements , the number of subscribers that receive our networks or content , and the market demand for the content that we provide . distribution revenue increased 5 % . excluding the impact of foreign currency fluctuations and the acquisition of eurosport france in march 2015 , distribution revenue increased 7 % at our u.s. networks segment and 9 % at our international networks segment . u.s. networks distribution revenue increased primarily due to contractual rate increases partially offset by slight declines in subscribers . international networks ' distribution revenue increases were mostly due to increases in rates in europe and increases in subscribers and rates in latin america . advertising revenue is dependent upon a number of factors , including the stage of development of television markets , the number of subscribers to our channels , viewership demographics , the popularity of our content , our ability to sell commercial time over a group of channels , market demand , the mix of sales of commercial time between the upfront and scatter markets , and economic conditions . these factors impact the pricing and volume of our advertising inventory . advertising revenue decreased 1 % . excluding the impact of foreign currency fluctuations and the disposition of the company 's radio business , advertising revenue increased 2 % as a result of increases of 2 % at our u.s. networks and 3 % at our international networks . the increase for our u.s. networks was due to inventory management and pricing increases , partially offset by a decline in ratings . the increase for our international networks was primarily driven by ratings and volume in southern europe , and to a lesser extent , pricing , ratings and volume in central and eastern europe , the middle east , and africa ( “ ceemea ” ) , partially offset by lower ratings in northern europe . other revenue decreased 2 % . excluding the impact of foreign currency fluctuations and the disposition of the company 's radio business , other revenue , which includes revenues from services provided to equity investees , increased 3 % . story_separator_special_tag the increase in our international networks ' distribution revenue , excluding the impact of foreign currency and the acquisition of eurosport , was mostly due to increases in affiliate rates and subscribers , in equivalent amounts , in latin america , and , a lesser extent , to increases in subscribers in ceemea and digital distribution revenue . 43 advertising revenue is dependent upon a number of factors , including the stage of development of television markets , the number of subscribers to our channels , viewership demographics , the popularity of our content , our ability to sell commercial time over a group of channels , market demand , the mix of sales of commercial time between the upfront and scatter markets , and economic conditions . these factors impact the pricing and volume of our advertising inventory . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , advertising revenue increased 6 % , primarily due to increases of 11 % at our international networks segment and , to a lesser extent , increases of 2 % at our u.s. networks segment . the increase at our international networks segment was mostly driven by pricing and , to a lesser extent , ratings in southern europe and pricing , volume , and to a lesser extent , ratings in latin america . southern europe and latin america contributed to the increase in equivalent amounts . the increases were also , to a lesser extent , due to pricing in northern europe . these increases were partially offset by decreases due to changes in regulations involving advertising sales operations in russia , as further described in item 1 , `` business `` in this annual report on form 10-k. u.s. networks ' advertising revenue increased due to increases in pricing , partially offset by lower audience delivery . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , other revenue increased 4 % . this increase was primarily due to an increase at our education and other segments due to increased productions and , to a lesser extent , an increase at our international networks segment as result of increased program sales . these increases were offset by a decrease at our u.s. networks segment primarily due to the absence of representation service fees for discovery family , which have been eliminated since the company began to consolidate discovery family . costs of revenues excluding the impact of foreign currency fluctuations , the acquisitions of eurosport , the effect of the consolidation of discovery family , and the disposition of the company 's radio business , costs of revenues increased 11 % as result of increases of 12 % at our international networks segment and 7 % at our u.s. networks segment . the increases in costs of revenues were mostly due to our commitment to increased spending for content on our networks , which increased content amortization , and , to a lesser extent , increases in content impairments that were not included in restructuring and other charges . excluding the impact of foreign currency fluctuations , the acquisition of eurosport and the effect of the consolidation of discovery family , content amortization was $ 1.5 billion and $ 1.3 billion for the years ended december 31 , 2015 and december 31 , 2014 , respectively . content amortization rates on our networks have been slightly accelerating . selling , general and administrative selling , general and administrative expenses consist principally of employee costs , marketing costs , research costs , occupancy and back office support fees . excluding the impact of foreign currency fluctuations , the acquisition of eurosport , the consolidation of discovery family , and the disposition of the company 's radio business , selling , general and administrative expenses increased 3 % for the year ended december 31 , 2015. the increase was primarily due to an increase in selling , general and administrative expense at our international networks segment of 10 % mostly due to increased personnel and associated support costs and , to a lesser extent , increased marketing costs . the increase was also , to a lesser extent , due to slight increases at our u.s. network segment due to an increase in research and , to a lesser extent , marketing costs . these increases were partially offset by a decrease in our equity-based compensation expense . depreciation and amortization depreciation and amortization expense includes depreciation of fixed assets and amortization of finite-lived intangible assets . excluding the impact of foreign currency fluctuations , business combinations and dispositions , depreciation and amortization remained consistent for the year ended december 31 , 2015. restructuring and other charge s restructuring and other charges decreased $ 40 million . the decrease was primarily due to a decrease in content impairment resulting from the post-acquisition rebranding of the hub network to discovery family in 2014 ( see note 6 and note 15 to the accompanying consolidated financial statements . ) 44 loss ( gain ) on disposition loss on dispositions comprised $ 12 million for the sale of the sbs radio business and $ 5 million for the contribution of the russian business to the new russian business for the year ended december 31 , 2015. gain on disposition comprised $ 31 million for the sale of howstuffworks for the year ended december 31 , 2014 . ( see note 3 to the accompanying consolidated financial statements . ) interest expense interest expense remained consistent for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 . income from equity investees , net income from our equity method investees declined $ 22

net of the impact of the spread , adjusted ebitda at ecrc was $ 143.8 million in 2012 compared to $ 128.0 million in 2011. net loss was $ 16.2 million , or $ 0.50 per diluted share in 2012 compared to net income of $ 90.9 million , or $ 2.81 per diluted share in 2011. earnings per share were negatively impacted by certain items aggregating approximately $ 0.30 per diluted share in 2012 and $ 0.31 per diluted share in 2011. in addition , the impact in the change of our deferred tax asset valuation allowance increased our diluted loss per share by $ 0.95 in 2012 and increased our diluted earnings per share by $ 0.54 in 2011. cash provided by operating activities increased $ 81.6 million to $ 146.3 million in 2012 compared to $ 64.8 million in 2011. results of operations factors affecting our results of operations raw materials and product mix . our results of operations are directly affected by the cost of raw materials . we use butadiene , styrene , and isoprene as our primary raw materials in manufacturing our products . on a fifo basis , these monomers together represented approximately $ 732.9 million , $ 658.9 million and $ 515.9 million or 61.5 % , 58.8 % and 55.6 % of our total cost of goods sold for the years ended december 31 , 2012 , 2011and 2010 , respectively . since the cost of our three primary raw materials comprise a significant amount of our total cost of goods sold , our selling prices for our products and therefore our total sales revenue is impacted by movements in our raw material costs , as well as the cost of other inputs . in addition , product mix can have an impact on our overall unit selling prices , since we provide an extensive product offering and therefore experience a wide range of unit selling prices . the cost of these monomers has generally correlated with changes in energy prices , supply and demand factors , and prices for natural and synthetic rubber . average butadiene purchase prices were lower during 2012 compared to 2011. average isoprene and styrene purchase prices were higher in 2012 compared to 2011 , with a more significant increase in isoprene prices . average butadiene , isoprene and styrene purchase prices were higher in 2011 compared to 2010 . 41 index to financial statements we use the fifo basis of accounting for inventory and cost of goods sold , and therefore gross profit . in periods of raw material price volatility , reported results under fifo will differ from what the results would have been if cost of goods sold were based on ecrc . specifically , in periods of rising raw material costs , reported gross profit will be higher under fifo than under ecrc . conversely , in periods of declining raw material costs , reported gross profit will be lower under fifo than under ecrc . in recognition of the fact that the cost of raw materials affects our results of operations and the comparability of our results of operations we provide the spread between fifo and ecrc . in 2012 , reported results under fifo were lower than results would have been on an ecrc basis by $ 30.5 million ; in 2011 , reported results under fifo were higher than results would have been on an ecrc basis by $ 66.3 million ; in 2010 , reported results under fifo were higher than results would have been on an ecrc basis by $ 12.1 million ; we currently anticipate that our gross profit will reflect a negative spread between fifo and ecrc of less than $ 3.0 million in the first quarter of 2013. this expectation is based on numerous complex and interrelated assumptions with respect to monomer costs , and ending inventory levels in the first quarter and the actual results may be significantly different based on first quarter results . international operations and currency fluctuations . we operate a geographically diverse business , serving customers in over 60 countries from five manufacturing facilities on four continents . although we sell and manufacture our products in many countries , our sales and production costs are mainly denominated in u.s. dollars , euro , japanese yen and brazilian real . from time to time , we use hedging strategies to reduce our exposure to currency fluctuations . we generated our sales revenue from customers located in the following regions : replace_table_token_13_th our financial results are subject to gains and losses on currency translations , which occur when the financial statements of foreign operations are translated into u.s. dollars . the financial statements of operations outside the united states where the local currency is considered to be the functional currency are translated into u.s. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue , expenses , gains and losses , and cash flows . the effect of translating the balance sheet into u.s. dollars is included as a component of accumulated other comprehensive loss . any appreciation of the functional currencies against the u.s. dollar will increase the u.s. dollar equivalent of amounts of revenue , expenses , gains and losses , and cash flows , and any depreciation of the functional currencies will decrease the u.s. dollar amounts reported . our results of operations are also subject to currency transaction risk . we incur currency transaction risk when we enter into either a purchase or sale transaction using a currency other than the local currency of the transacting entity . story_separator_special_tag we review the allowance for doubtful accounts quarterly . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance sheet credit exposure related to our customers . inventories . our inventory is principally comprised of finished goods inventory . inventories are stated at the lower of cost or market as primarily determined on a first-in , first-out basis . we evaluate the carrying cost of our inventory on a quarterly basis for this purpose . if the cost of the inventories exceeds their market value , provisions are made for the difference between the cost and the market value . property , plant and equipment . property , plant and equipment are recorded at cost . major renewals and improvements that extend the useful lives of equipment are capitalized . repair and maintenance costs are expensed as incurred . disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings . we capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment . approximately $ 2.6 million , $ 2.3 million and $ 0.5 million of interest cost were capitalized in 2012 , 2011 and 2010 , respectively . depreciation is recognized using the straight-line method over the following estimated useful lives : machinery and equipment 20 years building and land improvements 20 years manufacturing control equipment 10 years office equipment 5 years research equipment and facilities 5 years vehicles 5 years computer hardware/information systems 3 years long-lived assets . in accordance with impairment or disposal of long-lived assets subsections of fasb asc subtopic 360-10 , property , plant , and equipment—overall , ( fasb statement no . 144 , accounting for the impairment or disposal of long-lived assets ) , long-lived assets , such as property , plant , and equipment , and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if circumstances require a long-lived asset or asset group be tested for possible impairment , we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value . if the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis , impairment is recognized to the extent that the carrying value exceeds its fair value . fair value is determined through various valuation techniques including discounted cash flow models , quoted market values and third-party independent appraisals , as considered necessary . 48 index to financial statements asset retirement obligations ( “aro” ) . our aro consists of estimated costs of dismantlement , removal , site reclamation and similar activities associated with our facilities . we recognize the fair value of a liability for an aro in the period in which we have an existing legal obligation associated with the retirement of our facilities and the obligation can reasonably be estimated . the associated asset retirement cost is capitalized as part of the carrying cost of the asset . the recognition of an aro requires that management make numerous estimates , assumptions and judgments regarding such factors as the existence of a legal obligation for an aro ; estimated probabilities , amounts and timing of settlements ; the credit-adjusted risk-free rate to be used ; discount rate and inflation rates . in periods subsequent to initial measurement of the aro , we recognize changes in the liability resulting from the accretion of the liability to its non-discounted amount and revisions to either the timing or the amount of the original estimate of undiscounted cash flows . revisions also result in increases or decreases in the carrying cost of these assets . increases in the aro liability due to accretion is charged to depreciation and amortization expense . the related capitalized cost , including revisions thereto , is charged to depreciation and amortization expense . our aro totaled $ 9.8 million at december 31 , 2012 and $ 9.0 million at december 31 , 2011. see note 12 commitments and contingencies ( subsection ( c ) ) to the consolidated financial statements . contingencies . we are routinely involved in litigation , claims and disputes incidental to our business . professional judgment is required to classify the likelihood of these contingencies occurring . a contingency is categorized as probable , reasonably possible , or remote . a contingency is classified as probable if the future event or events are likely to occur . for the probable contingencies , a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated . a reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely ( reasonably possible but not probable ) . we disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability . a remote contingency is one where the chance of the future event or events occurring is slight . we neither accrue for nor disclose the liability in the notes to the financial statements . share-based compensation . share-based compensation cost is measured at the grant date based on the fair value of the award . we recognize these costs using the straight-line method over the requisite service period . the kraton performance polymers , inc. 2009 equity incentive plan ( the “equity plan” ) allows for the grant to key employees , independent contractors , and eligible non-employee directors of incentive stock options , non-qualified stock options ( which together with

loss on extinguishment of debt in connection with the refinancing of our indebtedness in the first quarter of 2011 , we incurred a $ 3.0 million loss on the extinguishment of debt . interest expense , net interest expense , net decreased $ 0.6 million or 1.9 % to $ 29.3 million for the year ended december 31 , 2012 from $ 29.9 million for the year ended december 31 , 2011. the decrease was primarily due to charges aggregating $ 5.2 million associated with the debt refinancing in the first quarter of 2011 , partially offset by increased average debt balances . income tax expense our income tax expense was $ 19.3 million and $ 0.6 million for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rate was 619.8 % and 0.6 % for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rates differed from the u.s. corporate statutory tax rate of 35.0 % , primarily due to the mix of pre-tax income earned in foreign jurisdictions and our limited ability to utilize net operating loss carryforwards in certain jurisdictions , primarily in the united states . 44 index to financial statements we record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2012 and 2011 , a valuation allowance of $ 90.4 million and $ 54.2 million , respectively , has been provided for net operating loss carryforwards and other deferred tax assets . we increased our valuation allowance by $ 36.2 million in 2012 , of which $ 30.7 million represents current period net operating losses and a reversal of the benefit recorded for prior net operating losses and $ 5.5 million represents changes in other comprehensive income ( loss ) .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```loss on extinguishment of debt in connection with the refinancing of our indebtedness in the first quarter of 2011 , we incurred a $ 3.0 million loss on the extinguishment of debt . interest expense , net interest expense , net decreased $ 0.6 million or 1.9 % to $ 29.3 million for the year ended december 31 , 2012 from $ 29.9 million for the year ended december 31 , 2011. the decrease was primarily due to charges aggregating $ 5.2 million associated with the debt refinancing in the first quarter of 2011 , partially offset by increased average debt balances . income tax expense our income tax expense was $ 19.3 million and $ 0.6 million for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rate was 619.8 % and 0.6 % for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rates differed from the u.s. corporate statutory tax rate of 35.0 % , primarily due to the mix of pre-tax income earned in foreign jurisdictions and our limited ability to utilize net operating loss carryforwards in certain jurisdictions , primarily in the united states . 44 index to financial statements we record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2012 and 2011 , a valuation allowance of $ 90.4 million and $ 54.2 million , respectively , has been provided for net operating loss carryforwards and other deferred tax assets . we increased our valuation allowance by $ 36.2 million in 2012 , of which $ 30.7 million represents current period net operating losses and a reversal of the benefit recorded for prior net operating losses and $ 5.5 million represents changes in other comprehensive income ( loss ) . ``` Suspicious Activity Report : net of the impact of the spread , adjusted ebitda at ecrc was $ 143.8 million in 2012 compared to $ 128.0 million in 2011. net loss was $ 16.2 million , or $ 0.50 per diluted share in 2012 compared to net income of $ 90.9 million , or $ 2.81 per diluted share in 2011. earnings per share were negatively impacted by certain items aggregating approximately $ 0.30 per diluted share in 2012 and $ 0.31 per diluted share in 2011. in addition , the impact in the change of our deferred tax asset valuation allowance increased our diluted loss per share by $ 0.95 in 2012 and increased our diluted earnings per share by $ 0.54 in 2011. cash provided by operating activities increased $ 81.6 million to $ 146.3 million in 2012 compared to $ 64.8 million in 2011. results of operations factors affecting our results of operations raw materials and product mix . our results of operations are directly affected by the cost of raw materials . we use butadiene , styrene , and isoprene as our primary raw materials in manufacturing our products . on a fifo basis , these monomers together represented approximately $ 732.9 million , $ 658.9 million and $ 515.9 million or 61.5 % , 58.8 % and 55.6 % of our total cost of goods sold for the years ended december 31 , 2012 , 2011and 2010 , respectively . since the cost of our three primary raw materials comprise a significant amount of our total cost of goods sold , our selling prices for our products and therefore our total sales revenue is impacted by movements in our raw material costs , as well as the cost of other inputs . in addition , product mix can have an impact on our overall unit selling prices , since we provide an extensive product offering and therefore experience a wide range of unit selling prices . the cost of these monomers has generally correlated with changes in energy prices , supply and demand factors , and prices for natural and synthetic rubber . average butadiene purchase prices were lower during 2012 compared to 2011. average isoprene and styrene purchase prices were higher in 2012 compared to 2011 , with a more significant increase in isoprene prices . average butadiene , isoprene and styrene purchase prices were higher in 2011 compared to 2010 . 41 index to financial statements we use the fifo basis of accounting for inventory and cost of goods sold , and therefore gross profit . in periods of raw material price volatility , reported results under fifo will differ from what the results would have been if cost of goods sold were based on ecrc . specifically , in periods of rising raw material costs , reported gross profit will be higher under fifo than under ecrc . conversely , in periods of declining raw material costs , reported gross profit will be lower under fifo than under ecrc . in recognition of the fact that the cost of raw materials affects our results of operations and the comparability of our results of operations we provide the spread between fifo and ecrc . in 2012 , reported results under fifo were lower than results would have been on an ecrc basis by $ 30.5 million ; in 2011 , reported results under fifo were higher than results would have been on an ecrc basis by $ 66.3 million ; in 2010 , reported results under fifo were higher than results would have been on an ecrc basis by $ 12.1 million ; we currently anticipate that our gross profit will reflect a negative spread between fifo and ecrc of less than $ 3.0 million in the first quarter of 2013. this expectation is based on numerous complex and interrelated assumptions with respect to monomer costs , and ending inventory levels in the first quarter and the actual results may be significantly different based on first quarter results . international operations and currency fluctuations . we operate a geographically diverse business , serving customers in over 60 countries from five manufacturing facilities on four continents . although we sell and manufacture our products in many countries , our sales and production costs are mainly denominated in u.s. dollars , euro , japanese yen and brazilian real . from time to time , we use hedging strategies to reduce our exposure to currency fluctuations . we generated our sales revenue from customers located in the following regions : replace_table_token_13_th our financial results are subject to gains and losses on currency translations , which occur when the financial statements of foreign operations are translated into u.s. dollars . the financial statements of operations outside the united states where the local currency is considered to be the functional currency are translated into u.s. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue , expenses , gains and losses , and cash flows . the effect of translating the balance sheet into u.s. dollars is included as a component of accumulated other comprehensive loss . any appreciation of the functional currencies against the u.s. dollar will increase the u.s. dollar equivalent of amounts of revenue , expenses , gains and losses , and cash flows , and any depreciation of the functional currencies will decrease the u.s. dollar amounts reported . our results of operations are also subject to currency transaction risk . we incur currency transaction risk when we enter into either a purchase or sale transaction using a currency other than the local currency of the transacting entity . story_separator_special_tag we review the allowance for doubtful accounts quarterly . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance sheet credit exposure related to our customers . inventories . our inventory is principally comprised of finished goods inventory . inventories are stated at the lower of cost or market as primarily determined on a first-in , first-out basis . we evaluate the carrying cost of our inventory on a quarterly basis for this purpose . if the cost of the inventories exceeds their market value , provisions are made for the difference between the cost and the market value . property , plant and equipment . property , plant and equipment are recorded at cost . major renewals and improvements that extend the useful lives of equipment are capitalized . repair and maintenance costs are expensed as incurred . disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings . we capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment . approximately $ 2.6 million , $ 2.3 million and $ 0.5 million of interest cost were capitalized in 2012 , 2011 and 2010 , respectively . depreciation is recognized using the straight-line method over the following estimated useful lives : machinery and equipment 20 years building and land improvements 20 years manufacturing control equipment 10 years office equipment 5 years research equipment and facilities 5 years vehicles 5 years computer hardware/information systems 3 years long-lived assets . in accordance with impairment or disposal of long-lived assets subsections of fasb asc subtopic 360-10 , property , plant , and equipment—overall , ( fasb statement no . 144 , accounting for the impairment or disposal of long-lived assets ) , long-lived assets , such as property , plant , and equipment , and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if circumstances require a long-lived asset or asset group be tested for possible impairment , we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value . if the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis , impairment is recognized to the extent that the carrying value exceeds its fair value . fair value is determined through various valuation techniques including discounted cash flow models , quoted market values and third-party independent appraisals , as considered necessary . 48 index to financial statements asset retirement obligations ( “aro” ) . our aro consists of estimated costs of dismantlement , removal , site reclamation and similar activities associated with our facilities . we recognize the fair value of a liability for an aro in the period in which we have an existing legal obligation associated with the retirement of our facilities and the obligation can reasonably be estimated . the associated asset retirement cost is capitalized as part of the carrying cost of the asset . the recognition of an aro requires that management make numerous estimates , assumptions and judgments regarding such factors as the existence of a legal obligation for an aro ; estimated probabilities , amounts and timing of settlements ; the credit-adjusted risk-free rate to be used ; discount rate and inflation rates . in periods subsequent to initial measurement of the aro , we recognize changes in the liability resulting from the accretion of the liability to its non-discounted amount and revisions to either the timing or the amount of the original estimate of undiscounted cash flows . revisions also result in increases or decreases in the carrying cost of these assets . increases in the aro liability due to accretion is charged to depreciation and amortization expense . the related capitalized cost , including revisions thereto , is charged to depreciation and amortization expense . our aro totaled $ 9.8 million at december 31 , 2012 and $ 9.0 million at december 31 , 2011. see note 12 commitments and contingencies ( subsection ( c ) ) to the consolidated financial statements . contingencies . we are routinely involved in litigation , claims and disputes incidental to our business . professional judgment is required to classify the likelihood of these contingencies occurring . a contingency is categorized as probable , reasonably possible , or remote . a contingency is classified as probable if the future event or events are likely to occur . for the probable contingencies , a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated . a reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely ( reasonably possible but not probable ) . we disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability . a remote contingency is one where the chance of the future event or events occurring is slight . we neither accrue for nor disclose the liability in the notes to the financial statements . share-based compensation . share-based compensation cost is measured at the grant date based on the fair value of the award . we recognize these costs using the straight-line method over the requisite service period . the kraton performance polymers , inc. 2009 equity incentive plan ( the “equity plan” ) allows for the grant to key employees , independent contractors , and eligible non-employee directors of incentive stock options , non-qualified stock options ( which together with

in september 2020 , health canada approved a second-generation rechargeable ins for our r-snm system , which the company began shipping upon approval . in february 2021 , the fda approved a third-generation ins for our r-snm system under a pma supplement . the third-generation ins upgrades the embedded software in the ins and the functionality of the patient remote control . these modifications give patients the ability to make broader stimulation parameter 78 adjustments at home , including selecting a second therapy program that was set post-operatively based on interoperative findings . our ability to generate revenue and become profitable will depend on our ability to continue to successfully commercialize our r-snm system and any product enhancements we may advance in the future . we expect to derive future revenue by increasing patient and physician awareness of our r-snm system . if we are unable to accomplish any of these objectives , it could have a significant negative impact on our future revenue . if we fail to generate sufficient revenue in the future , our business , results of operations , financial condition , cash flows , and future prospects would be materially and adversely affected . we also intend to continue to make investments in research and development efforts to develop improvements and enhancements to our r-snm system . in the united states , the cost required to treat each patient is reimbursed through various third-party payors , such as commercial payors and government agencies . most large insurers have established coverage policies in place to cover snm therapy . certain commercial payors have a patient-by-patient prior authorization process that must be followed before they will provide reimbursement for snm therapy . outside the united states , reimbursement levels vary significantly by country and by region , particularly based on whether the country or region at issue maintains a single-payor system . snm therapy is eligible for reimbursement in canada , australia , and certain countries in europe , such as germany , france , and the united kingdom . annual healthcare budgets generally determine the number of snm systems that will be paid for by the payor in these single-payor system countries and regions . we currently outsource the manufacture of the implantable components of our r-snm system . we plan to continue with an outsourced manufacturing arrangement for the foreseeable future . our contract manufacturers are all recognized in their field for their competency to manufacture the respective portions of our r-snm system and have quality systems established that meet fda requirements . we believe the manufacturers we currently utilize have sufficient capacity to meet our launch requirements and are able to scale up their capacity relatively quickly with limited capital investment . prior to obtaining fda approval , we devoted substantially all of our resources to research and development activities related to our r-snm system , including clinical and regulatory initiatives to obtain marketing approvals . we expect to spend a significant amount of our resources on sales and marketing activities as we commercialize and market our r-snm system in the united states . we incurred net losses of $ 54.9 million , $ 79.9 million , and $ 32.5 million for the years ended december 31 , 2020 , 2019 , and 2018 , respectively , and had an accumulated deficit of $ 234.5 million as of december 31 , 2020 compared to $ 179.6 million at december 31 , 2019. as of december 31 , 2020 , we had available cash and cash equivalents of approximately $ 241.2 million , current liabilities of approximately $ 45.7 million , and long-term liabilities of approximately $ 9.2 million . prior to our initial public offering ( ipo ) , we financed our operations primarily through preferred stock financings and amounts borrowed under a loan and security agreement , dated february 6 , 2018 , between us and silicon valley bank ( the loan agreement ) . through our ipo in november 2018 , an offering completed in november 2019 and an offering completed in may 2020 , we received aggregate gross proceeds of approximately $ 405.1 million . we have invested heavily in product development and continuous improvement to our r-snm system . we have also made significant investments in clinical studies to demonstrate the safety and effectiveness of our r-snm system and to support regulatory submissions . because of these and other factors , we expect to continue to incur net losses for the next few years and we may require additional funding , which may include future equity and debt financings . adequate funding may not be available to us on acceptable terms , or at all . our failure to obtain sufficient funds on acceptable terms when needed could have a material and adverse effect on our business , financial condition , and results of operations . 79 initial public offering on november 2 , 2018 , we completed our ipo by issuing 9,200,000 shares of common stock , at an offering price of $ 15.00 per share , inclusive of 1,200,000 shares of our common stock issued upon the exercise by the underwriters of their option to purchase additional shares . the gross proceeds from the ipo were $ 138.0 million and the net proceeds were approximately $ 126.0 million , after deducting underwriting discounts , commissions and estimated offering expenses payable by us . in connection with the ipo , our outstanding shares of convertible preferred stock were automatically converted into an aggregate of 15,813,297 shares of common stock , and our outstanding warrants to purchase shares of series c convertible preferred stock were automatically converted into warrants to purchase up to an aggregate of 80,000 shares of common stock . story_separator_special_tag the loan and security agreement contains customary events of default that include , among others , non-payment defaults , covenant defaults , a default in the event a material adverse change occurs , defaults in the event our assets are attached or we are enjoined from doing business , bankruptcy and insolvency defaults , cross-defaults to certain other material indebtedness , material judgment defaults , and inaccuracy of representations and warranties . the occurrence of an event of default could result in an increase to the applicable interest rate of 5.00 % , acceleration of and present occurrence of the maturity date , and the consequent obligation for us to repay in full in cash all amounts outstanding under the loan and security agreement , and a right by the lenders to exercise all remedies available under the loan and security agreement and related agreements , including the right to dispose of the collateral as permitted under applicable law . we may need to raise additional financing in the future to facilitate our business operations . if we raise additional funds by issuing equity securities , our stockholders could experience dilution . debt financing , if available , may involve covenants further restricting our operations or our ability to incur additional debt . any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders . additional financing may not be available at all , or in amounts or on terms acceptable to us . if we are unable to obtain additional financing when needed to satisfy our liquidity requirements , we may be required to scale back our operations . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0001603756/000160375621000014/ # id71b78c8dd4641e0a2e1393b007d5311_7 `` style= `` color : # 0000ff ; font-family : 'times new roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % ; text-decoration : underline `` > ( 2 ) purchase obligations represent open purchase orders primarily for component materials and third-party contract labor costs at the end of the fiscal year . these purchase orders can be impacted by various factors , including the timing of issuing orders , the timing of the shipment of orders , and currency fluctuations . ( 3 ) represents the minimum royalty due under the license agreement . ( 4 ) includes interest payments at the prime rate plus 1.75 % , prepayment fees , and the minimum final payment , consisting of a 7.5 % premium principal amount paid off under the loan agreement , all of which were repaid in full in january 2021. fees or payments under the loan and security agreement are not included . from time to time we enter into certain types of contracts that contingently require us to indemnify parties against third-party claims , including the license agreement , the loan agreement , the loan and security agreement and certain real estate leases , supply purchase agreements , and agreements with directors and officers . the terms of such obligations vary by contract and in most instances a maximum dollar amount is not explicitly stated therein . generally , amounts under these contracts can not be reasonably estimated until a specific claim is asserted , thus no liabilities have been recorded for these obligations on our balance sheets for any of the periods presented . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states ( gaap ) requires our management to make estimates and judgments that affect the amounts reported in our consolidated financial statements and accompanying notes . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . the results of this evaluation then form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions , and such differences may be material to our consolidated financial statements . while our significant accounting policies are more fully described in note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k , we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult , subjective and complex judgments . revenue recognition revenue recognized during the years ended december 31 , 2020 , 2019 , and 2018 relates entirely to the sale of our r-snm system . we have revenue arrangements that consist of a single performance obligation . we recognize revenue at the point in time when it transfers control of promised goods to its customers . revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods . the amount of revenue that is recognized is based on the transaction price , which represents the invoiced amount and includes estimates of variable consideration such as discounts , where applicable . we do not offer rights of return or price protection . the amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period . payment terms , typically less than three months , are offered to our customers and do not include a significant financing component . we extend credit to our customers based upon an evaluation of the customer 's financial condition and credit history and generally require no collateral . we do not have any contract balances related to product sales . we also do not have significant contract acquisition costs related to product sales . shipping and handling costs incurred for

cash flows the following table presents a summary of our cash flow for the periods indicated ( in thousands ) : replace_table_token_4_th net cash used in operating activities net cash used in operating activities was $ 83.7 million in fiscal year 2020 and consisted primarily of a net loss of $ 54.9 million , a decrease from changes in net operating assets of $ 47.0 million , partially offset by non-cash charges of $ 18.2 million . net operating assets consisted primarily of inventory to support the commercial launch of our r-snm system in the united states . non-cash charges consisted primarily of stock-based compensation . net cash used in operating activities was $ 83.5 million in fiscal year 2019 and consisted primarily of a net loss of $ 79.9 million , a decrease in net operating assets of $ 14.4 million , partially offset by non-cash charges of $ 10.9 million . net operating assets consisted primarily of inventory to support the commercial launch of our r-snm system in the united states . non-cash charges consisted primarily of stock-based compensation . net cash used in operating activities was $ 31.4 million in fiscal year 2018 and consisted primarily of a net loss of $ 32.5 million , a decrease in net operating assets of $ 2.9 million , partially offset by non-cash charges of $ 4.0 million . net operating assets consisted primarily of inventory to support the planned launch of our commercial 86 operations .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following table presents a summary of our cash flow for the periods indicated ( in thousands ) : replace_table_token_4_th net cash used in operating activities net cash used in operating activities was $ 83.7 million in fiscal year 2020 and consisted primarily of a net loss of $ 54.9 million , a decrease from changes in net operating assets of $ 47.0 million , partially offset by non-cash charges of $ 18.2 million . net operating assets consisted primarily of inventory to support the commercial launch of our r-snm system in the united states . non-cash charges consisted primarily of stock-based compensation . net cash used in operating activities was $ 83.5 million in fiscal year 2019 and consisted primarily of a net loss of $ 79.9 million , a decrease in net operating assets of $ 14.4 million , partially offset by non-cash charges of $ 10.9 million . net operating assets consisted primarily of inventory to support the commercial launch of our r-snm system in the united states . non-cash charges consisted primarily of stock-based compensation . net cash used in operating activities was $ 31.4 million in fiscal year 2018 and consisted primarily of a net loss of $ 32.5 million , a decrease in net operating assets of $ 2.9 million , partially offset by non-cash charges of $ 4.0 million . net operating assets consisted primarily of inventory to support the planned launch of our commercial 86 operations . ``` Suspicious Activity Report : in september 2020 , health canada approved a second-generation rechargeable ins for our r-snm system , which the company began shipping upon approval . in february 2021 , the fda approved a third-generation ins for our r-snm system under a pma supplement . the third-generation ins upgrades the embedded software in the ins and the functionality of the patient remote control . these modifications give patients the ability to make broader stimulation parameter 78 adjustments at home , including selecting a second therapy program that was set post-operatively based on interoperative findings . our ability to generate revenue and become profitable will depend on our ability to continue to successfully commercialize our r-snm system and any product enhancements we may advance in the future . we expect to derive future revenue by increasing patient and physician awareness of our r-snm system . if we are unable to accomplish any of these objectives , it could have a significant negative impact on our future revenue . if we fail to generate sufficient revenue in the future , our business , results of operations , financial condition , cash flows , and future prospects would be materially and adversely affected . we also intend to continue to make investments in research and development efforts to develop improvements and enhancements to our r-snm system . in the united states , the cost required to treat each patient is reimbursed through various third-party payors , such as commercial payors and government agencies . most large insurers have established coverage policies in place to cover snm therapy . certain commercial payors have a patient-by-patient prior authorization process that must be followed before they will provide reimbursement for snm therapy . outside the united states , reimbursement levels vary significantly by country and by region , particularly based on whether the country or region at issue maintains a single-payor system . snm therapy is eligible for reimbursement in canada , australia , and certain countries in europe , such as germany , france , and the united kingdom . annual healthcare budgets generally determine the number of snm systems that will be paid for by the payor in these single-payor system countries and regions . we currently outsource the manufacture of the implantable components of our r-snm system . we plan to continue with an outsourced manufacturing arrangement for the foreseeable future . our contract manufacturers are all recognized in their field for their competency to manufacture the respective portions of our r-snm system and have quality systems established that meet fda requirements . we believe the manufacturers we currently utilize have sufficient capacity to meet our launch requirements and are able to scale up their capacity relatively quickly with limited capital investment . prior to obtaining fda approval , we devoted substantially all of our resources to research and development activities related to our r-snm system , including clinical and regulatory initiatives to obtain marketing approvals . we expect to spend a significant amount of our resources on sales and marketing activities as we commercialize and market our r-snm system in the united states . we incurred net losses of $ 54.9 million , $ 79.9 million , and $ 32.5 million for the years ended december 31 , 2020 , 2019 , and 2018 , respectively , and had an accumulated deficit of $ 234.5 million as of december 31 , 2020 compared to $ 179.6 million at december 31 , 2019. as of december 31 , 2020 , we had available cash and cash equivalents of approximately $ 241.2 million , current liabilities of approximately $ 45.7 million , and long-term liabilities of approximately $ 9.2 million . prior to our initial public offering ( ipo ) , we financed our operations primarily through preferred stock financings and amounts borrowed under a loan and security agreement , dated february 6 , 2018 , between us and silicon valley bank ( the loan agreement ) . through our ipo in november 2018 , an offering completed in november 2019 and an offering completed in may 2020 , we received aggregate gross proceeds of approximately $ 405.1 million . we have invested heavily in product development and continuous improvement to our r-snm system . we have also made significant investments in clinical studies to demonstrate the safety and effectiveness of our r-snm system and to support regulatory submissions . because of these and other factors , we expect to continue to incur net losses for the next few years and we may require additional funding , which may include future equity and debt financings . adequate funding may not be available to us on acceptable terms , or at all . our failure to obtain sufficient funds on acceptable terms when needed could have a material and adverse effect on our business , financial condition , and results of operations . 79 initial public offering on november 2 , 2018 , we completed our ipo by issuing 9,200,000 shares of common stock , at an offering price of $ 15.00 per share , inclusive of 1,200,000 shares of our common stock issued upon the exercise by the underwriters of their option to purchase additional shares . the gross proceeds from the ipo were $ 138.0 million and the net proceeds were approximately $ 126.0 million , after deducting underwriting discounts , commissions and estimated offering expenses payable by us . in connection with the ipo , our outstanding shares of convertible preferred stock were automatically converted into an aggregate of 15,813,297 shares of common stock , and our outstanding warrants to purchase shares of series c convertible preferred stock were automatically converted into warrants to purchase up to an aggregate of 80,000 shares of common stock . story_separator_special_tag the loan and security agreement contains customary events of default that include , among others , non-payment defaults , covenant defaults , a default in the event a material adverse change occurs , defaults in the event our assets are attached or we are enjoined from doing business , bankruptcy and insolvency defaults , cross-defaults to certain other material indebtedness , material judgment defaults , and inaccuracy of representations and warranties . the occurrence of an event of default could result in an increase to the applicable interest rate of 5.00 % , acceleration of and present occurrence of the maturity date , and the consequent obligation for us to repay in full in cash all amounts outstanding under the loan and security agreement , and a right by the lenders to exercise all remedies available under the loan and security agreement and related agreements , including the right to dispose of the collateral as permitted under applicable law . we may need to raise additional financing in the future to facilitate our business operations . if we raise additional funds by issuing equity securities , our stockholders could experience dilution . debt financing , if available , may involve covenants further restricting our operations or our ability to incur additional debt . any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders . additional financing may not be available at all , or in amounts or on terms acceptable to us . if we are unable to obtain additional financing when needed to satisfy our liquidity requirements , we may be required to scale back our operations . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0001603756/000160375621000014/ # id71b78c8dd4641e0a2e1393b007d5311_7 `` style= `` color : # 0000ff ; font-family : 'times new roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % ; text-decoration : underline `` > ( 2 ) purchase obligations represent open purchase orders primarily for component materials and third-party contract labor costs at the end of the fiscal year . these purchase orders can be impacted by various factors , including the timing of issuing orders , the timing of the shipment of orders , and currency fluctuations . ( 3 ) represents the minimum royalty due under the license agreement . ( 4 ) includes interest payments at the prime rate plus 1.75 % , prepayment fees , and the minimum final payment , consisting of a 7.5 % premium principal amount paid off under the loan agreement , all of which were repaid in full in january 2021. fees or payments under the loan and security agreement are not included . from time to time we enter into certain types of contracts that contingently require us to indemnify parties against third-party claims , including the license agreement , the loan agreement , the loan and security agreement and certain real estate leases , supply purchase agreements , and agreements with directors and officers . the terms of such obligations vary by contract and in most instances a maximum dollar amount is not explicitly stated therein . generally , amounts under these contracts can not be reasonably estimated until a specific claim is asserted , thus no liabilities have been recorded for these obligations on our balance sheets for any of the periods presented . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states ( gaap ) requires our management to make estimates and judgments that affect the amounts reported in our consolidated financial statements and accompanying notes . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . the results of this evaluation then form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions , and such differences may be material to our consolidated financial statements . while our significant accounting policies are more fully described in note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k , we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult , subjective and complex judgments . revenue recognition revenue recognized during the years ended december 31 , 2020 , 2019 , and 2018 relates entirely to the sale of our r-snm system . we have revenue arrangements that consist of a single performance obligation . we recognize revenue at the point in time when it transfers control of promised goods to its customers . revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods . the amount of revenue that is recognized is based on the transaction price , which represents the invoiced amount and includes estimates of variable consideration such as discounts , where applicable . we do not offer rights of return or price protection . the amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period . payment terms , typically less than three months , are offered to our customers and do not include a significant financing component . we extend credit to our customers based upon an evaluation of the customer 's financial condition and credit history and generally require no collateral . we do not have any contract balances related to product sales . we also do not have significant contract acquisition costs related to product sales . shipping and handling costs incurred for

the reliable and safe operation of our power plants , electric distribution system and natural gas infrastructure in our communities is foundational to our customers , our financial results and our credibility with stakeholders . our regulated generation fleet performance was strong throughout the year . all of our nuclear sites have achieved the industry 's highest distinction rating . our electric distribution system performed well throughout the year , with outage durations down when adjusted for storms . the safety of our workforce is a core value . our employees delivered strong safety results in 2019 , and we are at or near the top of our industry . storm response and system restoration . the 2019 atlantic hurricane season was the fourth consecutive year of above-average damaging storms . our ability to effectively handle all facets of the 2019 storm response efforts is a testament to our team 's extensive preparation and coordination , applying lessons learned from previous storms , and to on-the-ground management throughout the restoration efforts . notably in 2019 duke energy earned eei 's emergency recovery award , our 22nd eei award since 1998 and a strong affirmation of the work of our employees to support customers when they need us most . customer satisfaction . duke energy continues to transform the customer experience through our use of customer data to better inform operational priorities and performance levels . this data-driven approach allows us to identify the investments that are the most important to the customer experience . in 2019 , we instituted billing and payment-related communications and options , and we continue to enhance outage-related communications to customers . constructive regulatory and legislative outcomes . one of our long-term strategic goals is to achieve modernized regulatory constructs in our jurisdictions . modernized constructs provide benefits , which include improved earnings and cash flows through more timely recovery of investments , as well as stable pricing for customers . in 2019 , duke energy , north carolina regulators and environmentalists reached an agreement to permanently close all remaining coal ash basins in north carolina . this agreement reduces the cost to close our coal ash basins for our carolinas customers in comparison to the initial ncdeq closure order . in 2019 we achieved constructive rate case outcomes driving earnings growth through rate base increases in south carolina ( electric ) , north carolina ( natural gas ) , ohio ( electric distribution ) and kentucky ( natural gas ) . in addition , we have a multiyear rate plan in florida and grid investment riders in the midwest which enable more timely cost recovery and earnings growth . digital transformation . duke energy has a demonstrated track record of driving efficiencies and productivity into the business . we continue to leverage new technology , digital tools and data analytics across the business in response to a transforming landscape . in 2019 , we created a team dedicated to developing applications and other solutions to deliver productivity gains and improvements to the customer experience . modernizing the power grid . our grid improvement programs continue to be a key component of our growth strategy . modernization of the electric grid , including smart meters , storm hardening , self-healing and targeted undergrounding helps to ensure the system is better prepared for severe weather , improves the system 's reliability and flexibility , and provides better information and services for customers . in 2019 , 79 % of our jurisdictions were equipped with smart meters and we remain on track to be fully deployed across all regions by 2021. we continue to expand our self-optimizing grid capabilities , and in 2019 that saved over a half million customer interruptions . generating cleaner energy . overall , we have lowered our carbon emissions by 39 % since 2005 , consistent with our new goal to reduce carbon emissions by at least 50 % by 2030 and to achieve net-zero carbon emissions by 2050. our commitment for 2030 includes retiring plants , operating our existing carbon-free resources and investing in natural gas infrastructure , renewables and our energy delivery system . as we look beyond 2030 , we will need additional tools to continue our progress . we will work actively to advocate for research and development of carbon-free , dispatchable resources . that includes longer-term energy storage , advanced nuclear technologies , carbon capture and zero-carbon fuels . expanding the natural gas platform . we continue to pursue natural gas infrastructure investments . while the judicial and administrative challenges to date have been substantial , we are committed to the construction of the acp pipeline to bring low-cost gas supply and economic development opportunities to the southeast u.s. construction is underway on a liquefied natural gas facility in robeson county , north carolina , on property piedmont owns . this investment will help piedmont provide a reliable gas supply to customers during peak usage periods and protect customers from price volatility when there is a higher-than-normal demand for natural gas . dividend growth . in 2019 , duke energy continued to grow the dividend payment to shareholders . 2019 represented the 93rd consecutive year duke energy paid a cash dividend on its common stock . 41 md & a duke energy duke energy objectives – 2020 and beyond duke energy will continue to deliver exceptional value to customers , be an integral part of the communities in which we do business and provide attractive returns to investors . we have an achievable , long-term strategy in place , and it is producing tangible results , yet the industry in which we operate is becoming more and more dynamic . we are adjusting , where necessary , and accelerating our focus in key areas to ensure the company is well positioned to be successful for many decades into the future . story_separator_special_tag given legal challenges and ongoing discussions with customers , acp expects mechanical completion of the full project in late 2021 with in-service likely in the first half of 2022. the delays resulting from legal challenges have also impacted the cost for the project . project cost is approximately $ 8 billion , excluding financing costs . this estimate is based on the current facts available around construction costs and timelines , and is subject to future changes as those facts develop . abnormal weather , work delays ( including delays due to judicial or regulatory action ) and other conditions may result in cost or schedule modifications , a suspension of afudc for acp and or impairment charges potentially material to duke energy 's cash flows , financial position and results of operations . acp and duke energy will continue to consider their options with respect to the foregoing given their existing contractual and legal obligations . see notes 4 and 18 to the consolidated financial statements , `` regulatory matters `` and `` variable interest entities , `` respectively , for additional information . on november 13 , 2013 , the puco issued an order authorizing recovery of mgp costs at certain sites in ohio with a deadline to complete the mgp environmental investigation and remediation work prior to december 31 , 2016. this deadline was subsequently extended to december 31 , 2019. duke energy ohio has filed a request for extension of the deadline . a hearing on that request has not been scheduled . disallowance of costs incurred , failure to complete the work by the deadline or failure to obtain an extension from the puco could result in an adverse impact on gas utilities and infrastructure 's results of operations , financial position and cash flows . see note 4 to the consolidated financial statements , “ regulatory matters , ” for additional information . within this item 7 , see liquidity and capital resources for discussion of risks associated with the tax act . commercial renewables replace_table_token_21_th ( a ) certain projects are included in tax-equity structures where investors have differing interests in the project 's economic attributes . in the table above , 100 % of the tax-equity project 's capacity is included . year ended december 31 , 2019 , as compared to 2018 commercial renewables ' results were favorable primarily due to new tax equity solar projects in the current year and a prior year goodwill impairment charge . the following is a detailed discussion of the variance drivers by line item . operating revenues . the increase was primarily due to new solar projects placed in service and higher irradiance . operating expenses . the decrease was primarily due to a goodwill impairment charge in the prior year , partially offset by increased depreciation due to new solar projects placed in service . other income and expenses , net . the decrease was primarily due to income from the fes settlement agreement in the prior year . income tax benefit . the decrease in the tax benefit was primarily driven by taxes associated with duke energy 's interest in tax equity solar projects recorded during 2019 and a reduction in ptcs generated . 47 md & a segment results - commercial renewables loss attributable to noncontrolling interests . the variance was primarily due to an increase in solar projects with tax equity investors . hlbv accounting was utilized , resulting in allocation of losses to the noncontrolling interest partners . see note 1 to the consolidated financial statements , `` summary of significant accounting policies `` for more information . matters impacting future commercial renewables results commercial renewables continues to experience growth with tax equity projects ; however , the future expiration of federal tax incentives could result in adverse impacts to future results of operations , financial position and cash flows . during 2019 , duke energy evaluated recoverability of its renewable merchant plants principally in the electric reliability council of texas west market , due to declining market pricing and declining long-term forecasted energy prices , primarily driven by lower forecasted natural gas prices . these assets were not impaired ; however , a continued decline in energy market pricing would likely result in a future impairment . impairment of these assets could result in adverse impacts to the future results of operations , financial position and cash flows of commercial renewables . see note 11 to the consolidated financial statements , `` property , plant and equipment , `` for additional information . within this item 7 , see liquidity and capital resources for discussion of risks associated with the tax act . other replace_table_token_22_th year ended december 31 , 2019 , as compared to 2018 the variance was driven by the prior year severance charges related to a corporate initiative , prior year loss on sale of the retired beckjord station , and the absence in the current year of costs related to the piedmont acquisition , offset by obligations to the duke energy foundation in 2019. the following is a detailed discussion of the variance drivers by line item . operating expenses . the variance was primarily due to prior year severance charges related to a corporate initiative as well as costs associated with the piedmont acquisition , partially offset by obligations to the duke energy foundation in 2019. losses on sales of other assets and other , net . the variance was driven by the prior year loss on sale of the retired beckjord station , including the transfer of coal ash basins and other real property and indemnification from all potential future claims related to the property , whether arising under environmental laws or otherwise . other income and expenses , net . the variance was primarily due to higher returns on investments that fund certain employee benefit obligations and bison investment income . interest expense . the variance was primarily due to higher

senior unsecured debt a2 a- duke energy kentucky stable stable senior unsecured debt baa1 a- piedmont natural gas stable stable senior unsecured a3 a- credit ratings are intended to provide credit lenders a framework for comparing the credit quality of securities and are not a recommendation to buy , sell or hold . the duke energy registrants ' credit ratings are dependent on the rating agencies ' assessments of their ability to meet their debt principal and interest obligations when they come due . if , as a result of market conditions or other factors , the duke energy registrants are unable to maintain current balance sheet strength , or if earnings and cash flow outlook materially deteriorates , credit ratings could be negatively impacted . cash flow information the following table summarizes duke energy 's cash flows for the two most recently completed fiscal years . replace_table_token_39_th 66 md & a liquidity and capital resources operating cash flows the following table summarizes key components of duke energy 's operating cash flows for the two most recently completed fiscal years . replace_table_token_40_th the variance was driven primarily by : a $ 241 million increase in net income after adjustment for non-cash items primarily due to increases in revenues as a result of rate increases in the current year , partially offset by decreases in current year non-cash adjustments ; a $ 573 million refund of amt credit carryforwards ; a $ 253 million decrease in cash outflows from working capital primarily due to fluctuations in accounts receivable balances , including a prior year increase for amt refunds , and prior year increases in regulatory assets related to fuel costs , partially offset by fluctuations in inventory levels and current year decreases in property tax and severance accruals ; and a $ 105 million payment in the prior year for disposal of beckjord . partially offset by : a $ 213 million increase in payments for aros . investing cash flows the following table summarizes key components of duke energy 's investing cash flows for the two most recently completed fiscal years .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```senior unsecured debt a2 a- duke energy kentucky stable stable senior unsecured debt baa1 a- piedmont natural gas stable stable senior unsecured a3 a- credit ratings are intended to provide credit lenders a framework for comparing the credit quality of securities and are not a recommendation to buy , sell or hold . the duke energy registrants ' credit ratings are dependent on the rating agencies ' assessments of their ability to meet their debt principal and interest obligations when they come due . if , as a result of market conditions or other factors , the duke energy registrants are unable to maintain current balance sheet strength , or if earnings and cash flow outlook materially deteriorates , credit ratings could be negatively impacted . cash flow information the following table summarizes duke energy 's cash flows for the two most recently completed fiscal years . replace_table_token_39_th 66 md & a liquidity and capital resources operating cash flows the following table summarizes key components of duke energy 's operating cash flows for the two most recently completed fiscal years . replace_table_token_40_th the variance was driven primarily by : a $ 241 million increase in net income after adjustment for non-cash items primarily due to increases in revenues as a result of rate increases in the current year , partially offset by decreases in current year non-cash adjustments ; a $ 573 million refund of amt credit carryforwards ; a $ 253 million decrease in cash outflows from working capital primarily due to fluctuations in accounts receivable balances , including a prior year increase for amt refunds , and prior year increases in regulatory assets related to fuel costs , partially offset by fluctuations in inventory levels and current year decreases in property tax and severance accruals ; and a $ 105 million payment in the prior year for disposal of beckjord . partially offset by : a $ 213 million increase in payments for aros . investing cash flows the following table summarizes key components of duke energy 's investing cash flows for the two most recently completed fiscal years . ``` Suspicious Activity Report : the reliable and safe operation of our power plants , electric distribution system and natural gas infrastructure in our communities is foundational to our customers , our financial results and our credibility with stakeholders . our regulated generation fleet performance was strong throughout the year . all of our nuclear sites have achieved the industry 's highest distinction rating . our electric distribution system performed well throughout the year , with outage durations down when adjusted for storms . the safety of our workforce is a core value . our employees delivered strong safety results in 2019 , and we are at or near the top of our industry . storm response and system restoration . the 2019 atlantic hurricane season was the fourth consecutive year of above-average damaging storms . our ability to effectively handle all facets of the 2019 storm response efforts is a testament to our team 's extensive preparation and coordination , applying lessons learned from previous storms , and to on-the-ground management throughout the restoration efforts . notably in 2019 duke energy earned eei 's emergency recovery award , our 22nd eei award since 1998 and a strong affirmation of the work of our employees to support customers when they need us most . customer satisfaction . duke energy continues to transform the customer experience through our use of customer data to better inform operational priorities and performance levels . this data-driven approach allows us to identify the investments that are the most important to the customer experience . in 2019 , we instituted billing and payment-related communications and options , and we continue to enhance outage-related communications to customers . constructive regulatory and legislative outcomes . one of our long-term strategic goals is to achieve modernized regulatory constructs in our jurisdictions . modernized constructs provide benefits , which include improved earnings and cash flows through more timely recovery of investments , as well as stable pricing for customers . in 2019 , duke energy , north carolina regulators and environmentalists reached an agreement to permanently close all remaining coal ash basins in north carolina . this agreement reduces the cost to close our coal ash basins for our carolinas customers in comparison to the initial ncdeq closure order . in 2019 we achieved constructive rate case outcomes driving earnings growth through rate base increases in south carolina ( electric ) , north carolina ( natural gas ) , ohio ( electric distribution ) and kentucky ( natural gas ) . in addition , we have a multiyear rate plan in florida and grid investment riders in the midwest which enable more timely cost recovery and earnings growth . digital transformation . duke energy has a demonstrated track record of driving efficiencies and productivity into the business . we continue to leverage new technology , digital tools and data analytics across the business in response to a transforming landscape . in 2019 , we created a team dedicated to developing applications and other solutions to deliver productivity gains and improvements to the customer experience . modernizing the power grid . our grid improvement programs continue to be a key component of our growth strategy . modernization of the electric grid , including smart meters , storm hardening , self-healing and targeted undergrounding helps to ensure the system is better prepared for severe weather , improves the system 's reliability and flexibility , and provides better information and services for customers . in 2019 , 79 % of our jurisdictions were equipped with smart meters and we remain on track to be fully deployed across all regions by 2021. we continue to expand our self-optimizing grid capabilities , and in 2019 that saved over a half million customer interruptions . generating cleaner energy . overall , we have lowered our carbon emissions by 39 % since 2005 , consistent with our new goal to reduce carbon emissions by at least 50 % by 2030 and to achieve net-zero carbon emissions by 2050. our commitment for 2030 includes retiring plants , operating our existing carbon-free resources and investing in natural gas infrastructure , renewables and our energy delivery system . as we look beyond 2030 , we will need additional tools to continue our progress . we will work actively to advocate for research and development of carbon-free , dispatchable resources . that includes longer-term energy storage , advanced nuclear technologies , carbon capture and zero-carbon fuels . expanding the natural gas platform . we continue to pursue natural gas infrastructure investments . while the judicial and administrative challenges to date have been substantial , we are committed to the construction of the acp pipeline to bring low-cost gas supply and economic development opportunities to the southeast u.s. construction is underway on a liquefied natural gas facility in robeson county , north carolina , on property piedmont owns . this investment will help piedmont provide a reliable gas supply to customers during peak usage periods and protect customers from price volatility when there is a higher-than-normal demand for natural gas . dividend growth . in 2019 , duke energy continued to grow the dividend payment to shareholders . 2019 represented the 93rd consecutive year duke energy paid a cash dividend on its common stock . 41 md & a duke energy duke energy objectives – 2020 and beyond duke energy will continue to deliver exceptional value to customers , be an integral part of the communities in which we do business and provide attractive returns to investors . we have an achievable , long-term strategy in place , and it is producing tangible results , yet the industry in which we operate is becoming more and more dynamic . we are adjusting , where necessary , and accelerating our focus in key areas to ensure the company is well positioned to be successful for many decades into the future . story_separator_special_tag given legal challenges and ongoing discussions with customers , acp expects mechanical completion of the full project in late 2021 with in-service likely in the first half of 2022. the delays resulting from legal challenges have also impacted the cost for the project . project cost is approximately $ 8 billion , excluding financing costs . this estimate is based on the current facts available around construction costs and timelines , and is subject to future changes as those facts develop . abnormal weather , work delays ( including delays due to judicial or regulatory action ) and other conditions may result in cost or schedule modifications , a suspension of afudc for acp and or impairment charges potentially material to duke energy 's cash flows , financial position and results of operations . acp and duke energy will continue to consider their options with respect to the foregoing given their existing contractual and legal obligations . see notes 4 and 18 to the consolidated financial statements , `` regulatory matters `` and `` variable interest entities , `` respectively , for additional information . on november 13 , 2013 , the puco issued an order authorizing recovery of mgp costs at certain sites in ohio with a deadline to complete the mgp environmental investigation and remediation work prior to december 31 , 2016. this deadline was subsequently extended to december 31 , 2019. duke energy ohio has filed a request for extension of the deadline . a hearing on that request has not been scheduled . disallowance of costs incurred , failure to complete the work by the deadline or failure to obtain an extension from the puco could result in an adverse impact on gas utilities and infrastructure 's results of operations , financial position and cash flows . see note 4 to the consolidated financial statements , “ regulatory matters , ” for additional information . within this item 7 , see liquidity and capital resources for discussion of risks associated with the tax act . commercial renewables replace_table_token_21_th ( a ) certain projects are included in tax-equity structures where investors have differing interests in the project 's economic attributes . in the table above , 100 % of the tax-equity project 's capacity is included . year ended december 31 , 2019 , as compared to 2018 commercial renewables ' results were favorable primarily due to new tax equity solar projects in the current year and a prior year goodwill impairment charge . the following is a detailed discussion of the variance drivers by line item . operating revenues . the increase was primarily due to new solar projects placed in service and higher irradiance . operating expenses . the decrease was primarily due to a goodwill impairment charge in the prior year , partially offset by increased depreciation due to new solar projects placed in service . other income and expenses , net . the decrease was primarily due to income from the fes settlement agreement in the prior year . income tax benefit . the decrease in the tax benefit was primarily driven by taxes associated with duke energy 's interest in tax equity solar projects recorded during 2019 and a reduction in ptcs generated . 47 md & a segment results - commercial renewables loss attributable to noncontrolling interests . the variance was primarily due to an increase in solar projects with tax equity investors . hlbv accounting was utilized , resulting in allocation of losses to the noncontrolling interest partners . see note 1 to the consolidated financial statements , `` summary of significant accounting policies `` for more information . matters impacting future commercial renewables results commercial renewables continues to experience growth with tax equity projects ; however , the future expiration of federal tax incentives could result in adverse impacts to future results of operations , financial position and cash flows . during 2019 , duke energy evaluated recoverability of its renewable merchant plants principally in the electric reliability council of texas west market , due to declining market pricing and declining long-term forecasted energy prices , primarily driven by lower forecasted natural gas prices . these assets were not impaired ; however , a continued decline in energy market pricing would likely result in a future impairment . impairment of these assets could result in adverse impacts to the future results of operations , financial position and cash flows of commercial renewables . see note 11 to the consolidated financial statements , `` property , plant and equipment , `` for additional information . within this item 7 , see liquidity and capital resources for discussion of risks associated with the tax act . other replace_table_token_22_th year ended december 31 , 2019 , as compared to 2018 the variance was driven by the prior year severance charges related to a corporate initiative , prior year loss on sale of the retired beckjord station , and the absence in the current year of costs related to the piedmont acquisition , offset by obligations to the duke energy foundation in 2019. the following is a detailed discussion of the variance drivers by line item . operating expenses . the variance was primarily due to prior year severance charges related to a corporate initiative as well as costs associated with the piedmont acquisition , partially offset by obligations to the duke energy foundation in 2019. losses on sales of other assets and other , net . the variance was driven by the prior year loss on sale of the retired beckjord station , including the transfer of coal ash basins and other real property and indemnification from all potential future claims related to the property , whether arising under environmental laws or otherwise . other income and expenses , net . the variance was primarily due to higher returns on investments that fund certain employee benefit obligations and bison investment income . interest expense . the variance was primarily due to higher

through our drilling program and these acquisitions , we operated a total of 510 gross ( 430.1 net ) wells in the eagle ford as of december 31 , 2019. through selected acquisitions , certain property exchanges and other transactions , we added or renewed approximately 3,500 net acres to our eagle ford lease portfolio during 2019. sequential quarterly analysis the following summarizes certain key operating and financial highlights for the three months ended december 31 , 2019 with comparison to the three months ended september 30 , 2019 as presented in the table that follows . the year-over-year highlights for 2019 and 2018 are addressed in further detail in the discussions for financial condition and results of operations that follow . daily production increased one percent to 29,314 boepd , from 29,003 boepd due primarily to the number of wells turned to sales in the second half of 2019. during the fourth quarter of 2019 , we turned to sales 11 gross ( 9.9 net ) wells compared to 20 gross ( 18.3 net ) wells turned to sales in the third quarter of 2019. of the wells turned to sales in the third quarter of 2019 , ten gross ( 9.0 net ) wells were turned to sales in late august and september of 2019. total production increased one percent to 2,697 mboe from 2,668 mboe . product revenues increased approximately four percent to $ 123.2 million from $ 118.4 million due primarily to six percent higher crude oil volume partially offset by one percent lower crude oil prices . ngl revenues were 13 percent higher due to 26 percent higher prices partially offset by 10 percent lower volume . natural gas revenues declined six percent due to an 11 percent decrease in volume partially offset by a five percent increase in prices . production and lifting costs ( consisting of loe and gpt ) declined on an absolute and per unit basis to $ 16.1 million and $ 5.98 per boe from $ 18.5 million and $ 6.92 per boe due primarily to lower utility charges , maintenance costs and chemical costs . 36 production and ad valorem taxes were relatively consistent on an absolute basis at $ 7.4 million for each period and declined marginally on per unit basis to $ 2.74 per boe from $ 2.77 per boe , respectively , due to three percent lower overall product pricing and one percent higher production volume partially offset by the effect of higher estimated valuations for ad valorem tax assessments that were recorded in prior quarters of 2019. g & a expenses decreased on an absolute and per unit basis to $ 5.3 million and $ 1.97 per boe from $ 6.9 million and $ 2.57 per boe , respectively , due primarily to lower benefits charges as well as lower occupancy and consulting costs . our dd & a , decreased on an absolute basis and per unit basis to $ 44.9 million and $ 16.64 per boe from $ 46.5 million and $ 17.43 per boe due primarily to higher reserve quantity estimates . our operating income increased to $ 50.2 million from $ 40.0 million due to the combined impact of the matters noted in the bullets above . the following table sets forth certain historical summary operating and financial statistics for the periods presented : replace_table_token_9_th _ 1 the effects of the adoption of asc topic 606 , if applied to the year ended december 31 , 2017 , would have resulted in realized prices for ngls of $ 16.40 per boe and gpt of $ 2.45 per boe , respectively . 2 includes combined amounts of $ 0.36 and $ 0.39 per boe for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and $ 0.48 , $ 1.11 and 1.36 per boe for the years ended december 31 , 2019 , 2018 and 2017 , respectively , attributable to equity-classified share-based compensation and significant special charges , including acquisition , divestiture and strategic transaction costs , among others costs , as described in the discussion of “ results of operations - general and administrative ” that follows . 3 includes amounts accrued and excludes capitalized interest and capitalized labor . 4 includes net cash received for derivative settlements of $ 0.2 million and net cash paid for derivative settlements of $ 0.4 million for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and net cash paid for derivative settlements of $ 4.1 million , $ 48.3 million and $ 3.5 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . reflects changes in operating assets and liabilities of $ ( 12.7 ) million and $ 10.9 million for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and $ 0.2 million , $ ( 2.8 ) million and $ ( 15.0 ) million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . 5 represents actual cash paid for capital expenditures including capitalized interest and capitalized labor . 37 key developments the following general business developments and corporate actions had or may have a significant impact on our results of operations , financial position and cash flows : production and development progress total production for the quarter and year ended december 31 , 2019 was 2,697 mboe and 10,121 , or 29,314 and 27,730 boepd , with approximately 76 percent and 74 percent , or 2,043 mbbls and 7,453 mbbls , of production from crude oil , 14 and 15 percent from ngls and 10 percent and 11 percent from natural gas , respectively . we drilled and turned 11 and 48 gross ( 9.9 and 43.3 net ) wells to sales during the quarter and year ended december 31 , 2019 , respectively . story_separator_special_tag excluding the $ 2.4 million effect of the adoption of asc topic 606 , ngl pricing increased by 21 percent during 2018 as compared to 2017. crude oil revenues were approximately 92 percent of our total revenues during 2018 compared to 88 percent during 2017 . total eagle ford revenues were approximately 99 percent of total revenues in 2018 and 96 percent during 2017 . effective august 2018 , all of our revenues were derived from the eagle ford . realized differentials the following table reconciles our realized price differentials from weighted-average nymex-quoted prices for wti crude oil for the periods presented : replace_table_token_24_th we have realized premiums to the wti index price for crude oil over the past two years as the majority of our production during those periods was sold based on lls or meh index pricing due to the proximity of our operating region to the gulf coast markets . effects of derivatives the following table reconciles crude oil revenues to realized prices , as adjusted for derivative activities , for the periods presented : replace_table_token_25_th gain ( loss ) on sales of assets we recognize gains and losses on the sale or disposition of assets other than our oil and gas properties upon the completion of the underlying transactions . the following table sets forth the total gains and losses recognized for the periods presented : replace_table_token_26_th 2019 , 2018 and 2017 . in 2019 , 2018 and 2017 , we recognized insignificant net gains and losses attributable to sale or trade of certain support equipment and surplus and scrap tubular inventory and well materials . 47 other revenues , net other revenues , net , includes fees for marketing and water disposal services that we charge to third parties , net of related expenses as well as other miscellaneous revenues and credits attributable to our current operations . the following table sets forth the total other revenues , net for the periods presented : replace_table_token_27_th 2019 vs. 2018 . other revenues , net increased during 2019 from 2018 due primarily to higher water disposal revenues attributable to higher production partially offset by certain unscheduled repairs and maintenance costs incurred during the second quarter of 2019 at our water disposal facilities 2018 vs. 2017 . other revenues , net increased during 2018 from 2017 due primarily to higher marketing fees charged to third parties resulting from substantially higher production . lease operating expenses loe include costs that we incur to operate our producing wells and field operations . the most significant costs include compression and gas-lift , chemicals , water disposal , repairs and maintenance , including down-hole repairs , field labor , pumping and well-tending , equipment rentals , utilities and supplies among others . the following table sets forth our loe for the periods presented : replace_table_token_28_th 2019 vs. 2018 . loe increased on an absolute basis , but declined on a per unit basis during 2019 when compared to 2018 due primarily to the overall effect of 27 percent higher production volume during 2019. the volume-based absolute increases were primarily attributable to compression and gas lift , water disposal , utilities and environmental costs for a combined effect of $ 5.6 million . higher maintenance costs of $ 1.3 million were incurred in 2019. in addition , the 2019 period includes the effects of two additional months of production attributable to the hunt acquisition . 2018 vs. 2017 . loe increased on an absolute basis , but declined on a per unit basis during 2018 when compared to 2017. the absolute increases were due primarily to higher production volume including the incremental effects of the devon and hunt acquisitions . the higher production volume also had the effect of decreasing the overall per unit cost , particularly those costs that have a higher fixed cost component . furthermore , comprehensive maintenance costs in the second half of 2017 improved production and cost efficiency progressing throughout 2018. gathering processing and transportation gpt expense includes costs that we incur to gather and aggregate our crude oil , ngl and natural gas production from our wells and deliver them via pipeline or truck to a central delivery point , downstream pipelines or processing plants , and blend or process , as necessary , depending upon the type of production and the specific contractual arrangements that we have with the applicable midstream operators . the following table sets forth our gpt for the periods presented : replace_table_token_29_th 2019 vs. 2018 . gpt expense increased on an absolute basis during 2019 when compared to 2018 due primarily to substantially higher production volumes as discussed above . per unit costs declined marginally in 2019 compared to 2018 due primarily to a shift in the mix of crude oil production sold at the wellhead with no corresponding gpt expense subsequent to the achievement of required minimum crude oil volumes transported by pipeline partially offset by a scheduled rate increase effective august 1 , 2019 , for crude oil gathering services provided by nuevo dos gathering & transportation , llc , or nuevo g & t , successor to republic midstream , llc . 48 2018 vs. 2017 . gpt expense increased on an absolute basis during 2018 when compared to 2017 due primarily to substantially higher production volumes partially offset by the effect of the adoption of asc topic 606 , or $ 2.4 million . per unit costs declined $ 0.30 per boe in 2018 due primarily to the effect of the adoption of asc topic 606 , as well as a result of increased production sold at the wellhead with no corresponding gpt expense . production and ad valorem taxes production or severance taxes represent taxes imposed by the states in which we operate for the removal of resources including crude oil , ngls and natural gas . ad valorem taxes represent taxes imposed by certain jurisdictions , primarily counties , in which we operate , based on

cash flows from financing activities . during 2019 , we borrowed $ 76.4 million and made repayments of $ 35.0 million under the credit facility which were used to fund a portion of our capital program as well as the aforementioned acquisition of working interests . during 2018 , we borrowed $ 244 million under the credit facility to fund the three-rig capital program and the hunt acquisition . we also paid $ 2.6 million and $ 1.0 million of debt issue costs in 2019 and 2018 , respectively , in connection with amendments to the credit facility . capitalization the following table summarizes our total capitalization as of the dates presented : replace_table_token_18_th credit facility . the credit facility provides for a $ 1.0 billion revolving commitment and $ 500 million borrowing base , including a $ 25.0 million sublimit for the issuance of letters of credit . the availability under the credit facility may not exceed the lesser of the aggregate commitments or the borrowing base . the borrowing base under the credit facility is redetermined semi-annually , generally in april and october of each year . additionally , the credit facility lenders may , at their discretion , initiate a redetermination at any time during the six-month period between scheduled redeterminations . the credit facility is available to us for general corporate purposes including working capital . we had $ 0.4 million in letters of credit outstanding as of december 31 , 2019 and 2018 , respectively . 42 the credit facility is scheduled to mature in may 2024 ; provided that on june 30 , 2022 , unless we have either extended the maturity date of our $ 200 million second lien credit agreement dated as of september 29 , 2017 , or the second lien facility , to a date that is at least 91 days after may 7 , 2024 or have repaid our second lien facility in full , the maturity date of the credit facility will mean june 30 , 2022. the outstanding borrowings under the credit facility bear interest at a rate equal to , at our option , either ( a ) a customary reference rate plus an applicable margin ranging from 0.50 % to 1.50

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from financing activities . during 2019 , we borrowed $ 76.4 million and made repayments of $ 35.0 million under the credit facility which were used to fund a portion of our capital program as well as the aforementioned acquisition of working interests . during 2018 , we borrowed $ 244 million under the credit facility to fund the three-rig capital program and the hunt acquisition . we also paid $ 2.6 million and $ 1.0 million of debt issue costs in 2019 and 2018 , respectively , in connection with amendments to the credit facility . capitalization the following table summarizes our total capitalization as of the dates presented : replace_table_token_18_th credit facility . the credit facility provides for a $ 1.0 billion revolving commitment and $ 500 million borrowing base , including a $ 25.0 million sublimit for the issuance of letters of credit . the availability under the credit facility may not exceed the lesser of the aggregate commitments or the borrowing base . the borrowing base under the credit facility is redetermined semi-annually , generally in april and october of each year . additionally , the credit facility lenders may , at their discretion , initiate a redetermination at any time during the six-month period between scheduled redeterminations . the credit facility is available to us for general corporate purposes including working capital . we had $ 0.4 million in letters of credit outstanding as of december 31 , 2019 and 2018 , respectively . 42 the credit facility is scheduled to mature in may 2024 ; provided that on june 30 , 2022 , unless we have either extended the maturity date of our $ 200 million second lien credit agreement dated as of september 29 , 2017 , or the second lien facility , to a date that is at least 91 days after may 7 , 2024 or have repaid our second lien facility in full , the maturity date of the credit facility will mean june 30 , 2022. the outstanding borrowings under the credit facility bear interest at a rate equal to , at our option , either ( a ) a customary reference rate plus an applicable margin ranging from 0.50 % to 1.50 ``` Suspicious Activity Report : through our drilling program and these acquisitions , we operated a total of 510 gross ( 430.1 net ) wells in the eagle ford as of december 31 , 2019. through selected acquisitions , certain property exchanges and other transactions , we added or renewed approximately 3,500 net acres to our eagle ford lease portfolio during 2019. sequential quarterly analysis the following summarizes certain key operating and financial highlights for the three months ended december 31 , 2019 with comparison to the three months ended september 30 , 2019 as presented in the table that follows . the year-over-year highlights for 2019 and 2018 are addressed in further detail in the discussions for financial condition and results of operations that follow . daily production increased one percent to 29,314 boepd , from 29,003 boepd due primarily to the number of wells turned to sales in the second half of 2019. during the fourth quarter of 2019 , we turned to sales 11 gross ( 9.9 net ) wells compared to 20 gross ( 18.3 net ) wells turned to sales in the third quarter of 2019. of the wells turned to sales in the third quarter of 2019 , ten gross ( 9.0 net ) wells were turned to sales in late august and september of 2019. total production increased one percent to 2,697 mboe from 2,668 mboe . product revenues increased approximately four percent to $ 123.2 million from $ 118.4 million due primarily to six percent higher crude oil volume partially offset by one percent lower crude oil prices . ngl revenues were 13 percent higher due to 26 percent higher prices partially offset by 10 percent lower volume . natural gas revenues declined six percent due to an 11 percent decrease in volume partially offset by a five percent increase in prices . production and lifting costs ( consisting of loe and gpt ) declined on an absolute and per unit basis to $ 16.1 million and $ 5.98 per boe from $ 18.5 million and $ 6.92 per boe due primarily to lower utility charges , maintenance costs and chemical costs . 36 production and ad valorem taxes were relatively consistent on an absolute basis at $ 7.4 million for each period and declined marginally on per unit basis to $ 2.74 per boe from $ 2.77 per boe , respectively , due to three percent lower overall product pricing and one percent higher production volume partially offset by the effect of higher estimated valuations for ad valorem tax assessments that were recorded in prior quarters of 2019. g & a expenses decreased on an absolute and per unit basis to $ 5.3 million and $ 1.97 per boe from $ 6.9 million and $ 2.57 per boe , respectively , due primarily to lower benefits charges as well as lower occupancy and consulting costs . our dd & a , decreased on an absolute basis and per unit basis to $ 44.9 million and $ 16.64 per boe from $ 46.5 million and $ 17.43 per boe due primarily to higher reserve quantity estimates . our operating income increased to $ 50.2 million from $ 40.0 million due to the combined impact of the matters noted in the bullets above . the following table sets forth certain historical summary operating and financial statistics for the periods presented : replace_table_token_9_th _ 1 the effects of the adoption of asc topic 606 , if applied to the year ended december 31 , 2017 , would have resulted in realized prices for ngls of $ 16.40 per boe and gpt of $ 2.45 per boe , respectively . 2 includes combined amounts of $ 0.36 and $ 0.39 per boe for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and $ 0.48 , $ 1.11 and 1.36 per boe for the years ended december 31 , 2019 , 2018 and 2017 , respectively , attributable to equity-classified share-based compensation and significant special charges , including acquisition , divestiture and strategic transaction costs , among others costs , as described in the discussion of “ results of operations - general and administrative ” that follows . 3 includes amounts accrued and excludes capitalized interest and capitalized labor . 4 includes net cash received for derivative settlements of $ 0.2 million and net cash paid for derivative settlements of $ 0.4 million for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and net cash paid for derivative settlements of $ 4.1 million , $ 48.3 million and $ 3.5 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . reflects changes in operating assets and liabilities of $ ( 12.7 ) million and $ 10.9 million for the three months ended december 31 , 2019 and september 30 , 2019 , respectively , and $ 0.2 million , $ ( 2.8 ) million and $ ( 15.0 ) million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . 5 represents actual cash paid for capital expenditures including capitalized interest and capitalized labor . 37 key developments the following general business developments and corporate actions had or may have a significant impact on our results of operations , financial position and cash flows : production and development progress total production for the quarter and year ended december 31 , 2019 was 2,697 mboe and 10,121 , or 29,314 and 27,730 boepd , with approximately 76 percent and 74 percent , or 2,043 mbbls and 7,453 mbbls , of production from crude oil , 14 and 15 percent from ngls and 10 percent and 11 percent from natural gas , respectively . we drilled and turned 11 and 48 gross ( 9.9 and 43.3 net ) wells to sales during the quarter and year ended december 31 , 2019 , respectively . story_separator_special_tag excluding the $ 2.4 million effect of the adoption of asc topic 606 , ngl pricing increased by 21 percent during 2018 as compared to 2017. crude oil revenues were approximately 92 percent of our total revenues during 2018 compared to 88 percent during 2017 . total eagle ford revenues were approximately 99 percent of total revenues in 2018 and 96 percent during 2017 . effective august 2018 , all of our revenues were derived from the eagle ford . realized differentials the following table reconciles our realized price differentials from weighted-average nymex-quoted prices for wti crude oil for the periods presented : replace_table_token_24_th we have realized premiums to the wti index price for crude oil over the past two years as the majority of our production during those periods was sold based on lls or meh index pricing due to the proximity of our operating region to the gulf coast markets . effects of derivatives the following table reconciles crude oil revenues to realized prices , as adjusted for derivative activities , for the periods presented : replace_table_token_25_th gain ( loss ) on sales of assets we recognize gains and losses on the sale or disposition of assets other than our oil and gas properties upon the completion of the underlying transactions . the following table sets forth the total gains and losses recognized for the periods presented : replace_table_token_26_th 2019 , 2018 and 2017 . in 2019 , 2018 and 2017 , we recognized insignificant net gains and losses attributable to sale or trade of certain support equipment and surplus and scrap tubular inventory and well materials . 47 other revenues , net other revenues , net , includes fees for marketing and water disposal services that we charge to third parties , net of related expenses as well as other miscellaneous revenues and credits attributable to our current operations . the following table sets forth the total other revenues , net for the periods presented : replace_table_token_27_th 2019 vs. 2018 . other revenues , net increased during 2019 from 2018 due primarily to higher water disposal revenues attributable to higher production partially offset by certain unscheduled repairs and maintenance costs incurred during the second quarter of 2019 at our water disposal facilities 2018 vs. 2017 . other revenues , net increased during 2018 from 2017 due primarily to higher marketing fees charged to third parties resulting from substantially higher production . lease operating expenses loe include costs that we incur to operate our producing wells and field operations . the most significant costs include compression and gas-lift , chemicals , water disposal , repairs and maintenance , including down-hole repairs , field labor , pumping and well-tending , equipment rentals , utilities and supplies among others . the following table sets forth our loe for the periods presented : replace_table_token_28_th 2019 vs. 2018 . loe increased on an absolute basis , but declined on a per unit basis during 2019 when compared to 2018 due primarily to the overall effect of 27 percent higher production volume during 2019. the volume-based absolute increases were primarily attributable to compression and gas lift , water disposal , utilities and environmental costs for a combined effect of $ 5.6 million . higher maintenance costs of $ 1.3 million were incurred in 2019. in addition , the 2019 period includes the effects of two additional months of production attributable to the hunt acquisition . 2018 vs. 2017 . loe increased on an absolute basis , but declined on a per unit basis during 2018 when compared to 2017. the absolute increases were due primarily to higher production volume including the incremental effects of the devon and hunt acquisitions . the higher production volume also had the effect of decreasing the overall per unit cost , particularly those costs that have a higher fixed cost component . furthermore , comprehensive maintenance costs in the second half of 2017 improved production and cost efficiency progressing throughout 2018. gathering processing and transportation gpt expense includes costs that we incur to gather and aggregate our crude oil , ngl and natural gas production from our wells and deliver them via pipeline or truck to a central delivery point , downstream pipelines or processing plants , and blend or process , as necessary , depending upon the type of production and the specific contractual arrangements that we have with the applicable midstream operators . the following table sets forth our gpt for the periods presented : replace_table_token_29_th 2019 vs. 2018 . gpt expense increased on an absolute basis during 2019 when compared to 2018 due primarily to substantially higher production volumes as discussed above . per unit costs declined marginally in 2019 compared to 2018 due primarily to a shift in the mix of crude oil production sold at the wellhead with no corresponding gpt expense subsequent to the achievement of required minimum crude oil volumes transported by pipeline partially offset by a scheduled rate increase effective august 1 , 2019 , for crude oil gathering services provided by nuevo dos gathering & transportation , llc , or nuevo g & t , successor to republic midstream , llc . 48 2018 vs. 2017 . gpt expense increased on an absolute basis during 2018 when compared to 2017 due primarily to substantially higher production volumes partially offset by the effect of the adoption of asc topic 606 , or $ 2.4 million . per unit costs declined $ 0.30 per boe in 2018 due primarily to the effect of the adoption of asc topic 606 , as well as a result of increased production sold at the wellhead with no corresponding gpt expense . production and ad valorem taxes production or severance taxes represent taxes imposed by the states in which we operate for the removal of resources including crude oil , ngls and natural gas . ad valorem taxes represent taxes imposed by certain jurisdictions , primarily counties , in which we operate , based on

we also have collaborations for our adc technology with a number of biotechnology and pharmaceutical companies , including abbvie biotechnology ltd. ( formerly part of abbott laboratories ) , or abbvie ; bayer pharma ag , or bayer ; celldex therapeutics , inc. , or celldex ; daiichi sankyo co. , ltd. , or daiichi sankyo ; genentech , inc. , a member of the roche group , or genentech ; glaxosmithkline llc , or gsk ; pfizer , inc. , or pfizer , psma development company llc , a subsidiary of progenics pharmaceuticals inc. , or progenics ; and takeda ; as well as adc co-development agreements with agensys , inc. , an affiliate of astellas pharma , inc. , or agensys , genmab a/s , or genmab , and oxford biotherapeutics ltd. , or obt . 48 the commercial potential of adcetris and the ability to realize that potential by us and takeda remains uncertain . our success in effectively commercializing adcetris will continue to require , among other things , effective sales , marketing , manufacturing , distribution , information systems and pricing strategies , our ability to demonstrate in the medical community the safety and efficacy of adcetris and its potential advantages , and our ability to comply with applicable laws and regulations . our success could be unfavorably impacted by adverse events or competition . the u.s. food and drug administration , or fda , granted accelerated approval of adcetris which means that we are , among other things , obligated to conduct specific post-approval clinical studies to confirm patient benefit as a condition of that approval . similarly , takeda is required to conduct post-approval confirmatory studies as a condition to the conditional marketing authorization of adcetris by the european commission and regulatory authorities in other countries . in addition , we currently expect that future adcetris sales growth , if any , will depend primarily on our ability to expand adcetris ' labeled indications of use . accordingly , we are exploring the use of adcetris in earlier lines of therapy in patients with hodgkin lymphoma and mtcl , and in other cd30-positive malignancies . in order to do this , we are required to conduct additional extensive clinical studies and , if these studies are successful , we intend to seek additional regulatory approvals . we and takeda are conducting four phase 3 clinical trials of adcetris , one in hodgkin lymphoma patients at high risk of relapse following autologous stem cell transplant , or asct , called the aethera trial , one in relapsed cutaneous t-cell lymphoma , or ctcl , called the alcanza trial , one in front-line advanced classical hodgkin lymphoma , called the echelon-1 trial , and one in front-line mtcl , including salcl , called the echelon-2 trial . based on current estimates of progression events from pooled , blinded data from the ongoing aethera trial , the aethera trial was amended to enable a time point-driven progression-free survival analysis after patients have completed all required scans , which is one year after the completion of treatment and which is anticipated to occur in the second half of 2014. the aethera trial is not being conducted under a special protocol assessment , or spa , agreement from the fda and has not been designated as a confirmatory trial to convert either accelerated approval or conditional marketing authorization to regular approval ; however , this trial will provide drug safety data analyses that fulfills one of our post-approval requirements with both the fda and the european medicines agency , or ema . we have entered into spa agreements with the fda for the alcanza , echelon-1 and echelon-2 clinical trials . an spa is an agreement with the fda regarding the design of the clinical trial , including size and clinical endpoints , to support an efficacy claim in a biologics license application , or bla , submission to the fda if the trial achieves its primary endpoints . the primary end point in the echelon-1 and echelon-2 trials is progression-free survival per independent review facility assessment in patients treated with adcetris compared to that achieved with therapy in the control arm . the primary endpoint in the alcanza trial is overall response rate , lasting at least four months , in patients treated with adcetris compared to that achieved with therapy in the control arm . we have an agreement with ventana medical systems , inc. , a member of the roche group , or ventana , under which ventana is working to develop , manufacture and commercialize a molecular companion diagnostic test with the goal of identifying patients who might respond to treatment with adcetris based on cd30 expression levels in their tissue specimens . a molecular companion diagnostic is not required for the current approved indications for adcetris ; however , we are utilizing a molecular companion diagnostic to screen patients for inclusion in our echelon-2 and alcanza trials , and we expect that a molecular companion diagnostic may be required by regulatory authorities to support regulatory approval of adcetris in other cd30-positive malignancies . all of these activities will require substantial amounts of capital and may not ultimately prove successful . our product candidates are in relatively early stages of development . these product candidates will require significant further development , financial resources and personnel to obtain regulatory approval and develop into commercially viable products , if at all . accordingly , over the next several years , we expect that we will incur substantial expenses , primarily as a result of activities related to the commercialization and continued development of adcetris . we will also continue to invest in research , development and manufacturing of our product candidates . story_separator_special_tag examples of estimated accrued liabilities include fees due to contract research organizations and other costs in conjunction with clinical trials , fees due in conjunction with manufacturing adcetris and our product candidates , third party royalties that accrue on our sales of adcetris and professional service fees , among other items . in accruing service fees , we estimate the time period over which services will be provided and the level of effort in each period . if the actual timing of the provision of services or the level of effort varies from the estimate , we will adjust the accrual accordingly . in the event that we do not identify costs that have been incurred or we under or overestimate the level of services performed or the costs of such services , our actual liabilities would differ from such estimates . the date on which some services commence , the level of services performed on or before a given date and the cost of such services are often subjective determinations . we make judgments based upon the facts and circumstances known to us at the time and in accordance with gaap . research and development . research and development expenses consist of salaries , benefits and other headcount related costs of our research and development staff , preclinical activities , clinical trials , lab supplies , drug manufacturing costs for our product candidates , and for adcetris when used in research and clinical trials , contract and outside service fees and facilities and overhead expenses . clinical trial expenses are a significant component of research and development expenses , and we outsource a significant portion of these costs to third parties . our third party clinical trial expenses include investigator fees , site costs , clinical research organization costs , and costs for central laboratory testing and data management . research and development activities are expensed as incurred . costs associated with activities performed under research and development co-development collaborations are reflected in research and development expense . non-refundable advance payments for goods or services that will be used or rendered for future research and development activities are capitalized and recognized as expense as the related goods are delivered or the related services are performed . technology in-licensing fees , including milestones and maintenance fees , and other costs to acquire technologies for product candidates that have not yet received regulatory approval that are utilized in research and development and that are not expected to have alternative future use are expensed when incurred . share-based compensation . share-based compensation cost is based on the fair value of the award on the date of grant . we use the black-scholes option pricing model to determine the fair value of options on the date of grant which requires certain estimates to be made by management , including the expected forfeiture rate and expected term of the options . we also make decisions regarding the method of calculating the expected stock price volatility and the risk free interest rate used in the model . fluctuations that affect these estimates could have an impact on the resulting compensation cost . we charge this estimated fair value to expense over the vesting period of the arrangement using the graded-vesting attribution method for stock options which vest ratably over the vesting period . the fair value of each restricted stock unit , or rsu , equals the closing price of our common stock on the date of grant . rsus granted to date vest 100 % at a single point in time , generally on the two-year or three-year anniversary of the grant date . we therefore amortize the value of rsus , net of estimated forfeitures , to expense on a straight-line basis over the vesting period of the award . we began issuing rsus in 2011. income taxes . we have net deferred tax assets which are fully offset by a valuation allowance due to our determination that it is more likely than not that the deferred assets will not be realized . we believe that a full valuation allowance is appropriate as we have a history of net operating losses . in the event we were to determine that we would be able to realize our net deferred tax assets in the future , an adjustment to the deferred tax asset would be made , a portion of which would increase income ( or decrease losses ) in the period in which such a determination was made . inventories . we consider regulatory approval of product candidates to be uncertain . accordingly , we charge manufacturing costs to research and development expense until such time as a product has received 54 regulatory approval for commercial sale . we began capitalizing adcetris production costs into inventory following its accelerated approval by the fda in august 2011. adcetris inventory that is deployed into clinical , research or development use is charged to research and development expense when it is no longer available for use in commercial sales . production costs for our other product candidates continue to be charged to research and development expense . we value our inventories at the lower of cost or market value . cost is determined on a specific identification basis . inventory includes the cost of materials , third-party contract manufacturing and overhead associated with the production of adcetris . we would write-down inventory cost to net realizable value if we were to determine that we had any excess , obsolete or unsalable inventory . on an ongoing basis , we evaluate our estimates , including those related to revenue recognition , investments , accrued expenses , research and development , share-based compensation , income taxes and inventories . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form our basis for making judgments about the carrying values of assets and

liquidity and capital resources replace_table_token_13_th net cash used in operating activities was $ 1.1 million during 2013 compared to $ 10.9 million provided by operating activities during 2012. this change resulted from our increased net loss in 2013 and working capital fluctuations , particularly fluctuations resulting from payments received in advance of collaboration and license agreement revenue recognition . the change in net cash provided by ( used in ) operating activities in 2012 as compared to 2011 reflects a reduction in our net loss , cash collected from sales of adcetris and amounts received from our product and adc collaborations . net cash used in investing activities decreased during 2013 compared to 2012 reflecting higher amounts of cash invested during 2012 , partially offset by an increase in the costs incurred in 2013 for tenant improvements and laboratory equipment as we expanded our facilities . cash flow from investment activities also reflects sales and maturities of investment securities . net cash provided by ( used in ) investing activities increased during 2012 compared to 2011 reflecting higher amounts of cash invested during 2012 , and an increase in the cost incurred in 2011 for technology access fees related to adcetris . investing activities primarily reflect the investment of cash and sales and maturities of those investments . net cash provided by financing activities resulted from the proceeds of stock option exercises and our employee stock purchase plan . net cash provided by financing activities in 2011 also includes proceeds from an underwritten public offering of common stock . we have financed the majority of our operations through the issuance of equity securities , by amounts received pursuant to product collaborations , our adc collaborations and , more recently , through collections from commercial sales of adcetris . to a lesser degree , we have also financed our operations through royalty revenues and interest earned on cash , cash equivalents and 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 replace_table_token_13_th net cash used in operating activities was $ 1.1 million during 2013 compared to $ 10.9 million provided by operating activities during 2012. this change resulted from our increased net loss in 2013 and working capital fluctuations , particularly fluctuations resulting from payments received in advance of collaboration and license agreement revenue recognition . the change in net cash provided by ( used in ) operating activities in 2012 as compared to 2011 reflects a reduction in our net loss , cash collected from sales of adcetris and amounts received from our product and adc collaborations . net cash used in investing activities decreased during 2013 compared to 2012 reflecting higher amounts of cash invested during 2012 , partially offset by an increase in the costs incurred in 2013 for tenant improvements and laboratory equipment as we expanded our facilities . cash flow from investment activities also reflects sales and maturities of investment securities . net cash provided by ( used in ) investing activities increased during 2012 compared to 2011 reflecting higher amounts of cash invested during 2012 , and an increase in the cost incurred in 2011 for technology access fees related to adcetris . investing activities primarily reflect the investment of cash and sales and maturities of those investments . net cash provided by financing activities resulted from the proceeds of stock option exercises and our employee stock purchase plan . net cash provided by financing activities in 2011 also includes proceeds from an underwritten public offering of common stock . we have financed the majority of our operations through the issuance of equity securities , by amounts received pursuant to product collaborations , our adc collaborations and , more recently , through collections from commercial sales of adcetris . to a lesser degree , we have also financed our operations through royalty revenues and interest earned on cash , cash equivalents and investment securities . ``` Suspicious Activity Report : we also have collaborations for our adc technology with a number of biotechnology and pharmaceutical companies , including abbvie biotechnology ltd. ( formerly part of abbott laboratories ) , or abbvie ; bayer pharma ag , or bayer ; celldex therapeutics , inc. , or celldex ; daiichi sankyo co. , ltd. , or daiichi sankyo ; genentech , inc. , a member of the roche group , or genentech ; glaxosmithkline llc , or gsk ; pfizer , inc. , or pfizer , psma development company llc , a subsidiary of progenics pharmaceuticals inc. , or progenics ; and takeda ; as well as adc co-development agreements with agensys , inc. , an affiliate of astellas pharma , inc. , or agensys , genmab a/s , or genmab , and oxford biotherapeutics ltd. , or obt . 48 the commercial potential of adcetris and the ability to realize that potential by us and takeda remains uncertain . our success in effectively commercializing adcetris will continue to require , among other things , effective sales , marketing , manufacturing , distribution , information systems and pricing strategies , our ability to demonstrate in the medical community the safety and efficacy of adcetris and its potential advantages , and our ability to comply with applicable laws and regulations . our success could be unfavorably impacted by adverse events or competition . the u.s. food and drug administration , or fda , granted accelerated approval of adcetris which means that we are , among other things , obligated to conduct specific post-approval clinical studies to confirm patient benefit as a condition of that approval . similarly , takeda is required to conduct post-approval confirmatory studies as a condition to the conditional marketing authorization of adcetris by the european commission and regulatory authorities in other countries . in addition , we currently expect that future adcetris sales growth , if any , will depend primarily on our ability to expand adcetris ' labeled indications of use . accordingly , we are exploring the use of adcetris in earlier lines of therapy in patients with hodgkin lymphoma and mtcl , and in other cd30-positive malignancies . in order to do this , we are required to conduct additional extensive clinical studies and , if these studies are successful , we intend to seek additional regulatory approvals . we and takeda are conducting four phase 3 clinical trials of adcetris , one in hodgkin lymphoma patients at high risk of relapse following autologous stem cell transplant , or asct , called the aethera trial , one in relapsed cutaneous t-cell lymphoma , or ctcl , called the alcanza trial , one in front-line advanced classical hodgkin lymphoma , called the echelon-1 trial , and one in front-line mtcl , including salcl , called the echelon-2 trial . based on current estimates of progression events from pooled , blinded data from the ongoing aethera trial , the aethera trial was amended to enable a time point-driven progression-free survival analysis after patients have completed all required scans , which is one year after the completion of treatment and which is anticipated to occur in the second half of 2014. the aethera trial is not being conducted under a special protocol assessment , or spa , agreement from the fda and has not been designated as a confirmatory trial to convert either accelerated approval or conditional marketing authorization to regular approval ; however , this trial will provide drug safety data analyses that fulfills one of our post-approval requirements with both the fda and the european medicines agency , or ema . we have entered into spa agreements with the fda for the alcanza , echelon-1 and echelon-2 clinical trials . an spa is an agreement with the fda regarding the design of the clinical trial , including size and clinical endpoints , to support an efficacy claim in a biologics license application , or bla , submission to the fda if the trial achieves its primary endpoints . the primary end point in the echelon-1 and echelon-2 trials is progression-free survival per independent review facility assessment in patients treated with adcetris compared to that achieved with therapy in the control arm . the primary endpoint in the alcanza trial is overall response rate , lasting at least four months , in patients treated with adcetris compared to that achieved with therapy in the control arm . we have an agreement with ventana medical systems , inc. , a member of the roche group , or ventana , under which ventana is working to develop , manufacture and commercialize a molecular companion diagnostic test with the goal of identifying patients who might respond to treatment with adcetris based on cd30 expression levels in their tissue specimens . a molecular companion diagnostic is not required for the current approved indications for adcetris ; however , we are utilizing a molecular companion diagnostic to screen patients for inclusion in our echelon-2 and alcanza trials , and we expect that a molecular companion diagnostic may be required by regulatory authorities to support regulatory approval of adcetris in other cd30-positive malignancies . all of these activities will require substantial amounts of capital and may not ultimately prove successful . our product candidates are in relatively early stages of development . these product candidates will require significant further development , financial resources and personnel to obtain regulatory approval and develop into commercially viable products , if at all . accordingly , over the next several years , we expect that we will incur substantial expenses , primarily as a result of activities related to the commercialization and continued development of adcetris . we will also continue to invest in research , development and manufacturing of our product candidates . story_separator_special_tag examples of estimated accrued liabilities include fees due to contract research organizations and other costs in conjunction with clinical trials , fees due in conjunction with manufacturing adcetris and our product candidates , third party royalties that accrue on our sales of adcetris and professional service fees , among other items . in accruing service fees , we estimate the time period over which services will be provided and the level of effort in each period . if the actual timing of the provision of services or the level of effort varies from the estimate , we will adjust the accrual accordingly . in the event that we do not identify costs that have been incurred or we under or overestimate the level of services performed or the costs of such services , our actual liabilities would differ from such estimates . the date on which some services commence , the level of services performed on or before a given date and the cost of such services are often subjective determinations . we make judgments based upon the facts and circumstances known to us at the time and in accordance with gaap . research and development . research and development expenses consist of salaries , benefits and other headcount related costs of our research and development staff , preclinical activities , clinical trials , lab supplies , drug manufacturing costs for our product candidates , and for adcetris when used in research and clinical trials , contract and outside service fees and facilities and overhead expenses . clinical trial expenses are a significant component of research and development expenses , and we outsource a significant portion of these costs to third parties . our third party clinical trial expenses include investigator fees , site costs , clinical research organization costs , and costs for central laboratory testing and data management . research and development activities are expensed as incurred . costs associated with activities performed under research and development co-development collaborations are reflected in research and development expense . non-refundable advance payments for goods or services that will be used or rendered for future research and development activities are capitalized and recognized as expense as the related goods are delivered or the related services are performed . technology in-licensing fees , including milestones and maintenance fees , and other costs to acquire technologies for product candidates that have not yet received regulatory approval that are utilized in research and development and that are not expected to have alternative future use are expensed when incurred . share-based compensation . share-based compensation cost is based on the fair value of the award on the date of grant . we use the black-scholes option pricing model to determine the fair value of options on the date of grant which requires certain estimates to be made by management , including the expected forfeiture rate and expected term of the options . we also make decisions regarding the method of calculating the expected stock price volatility and the risk free interest rate used in the model . fluctuations that affect these estimates could have an impact on the resulting compensation cost . we charge this estimated fair value to expense over the vesting period of the arrangement using the graded-vesting attribution method for stock options which vest ratably over the vesting period . the fair value of each restricted stock unit , or rsu , equals the closing price of our common stock on the date of grant . rsus granted to date vest 100 % at a single point in time , generally on the two-year or three-year anniversary of the grant date . we therefore amortize the value of rsus , net of estimated forfeitures , to expense on a straight-line basis over the vesting period of the award . we began issuing rsus in 2011. income taxes . we have net deferred tax assets which are fully offset by a valuation allowance due to our determination that it is more likely than not that the deferred assets will not be realized . we believe that a full valuation allowance is appropriate as we have a history of net operating losses . in the event we were to determine that we would be able to realize our net deferred tax assets in the future , an adjustment to the deferred tax asset would be made , a portion of which would increase income ( or decrease losses ) in the period in which such a determination was made . inventories . we consider regulatory approval of product candidates to be uncertain . accordingly , we charge manufacturing costs to research and development expense until such time as a product has received 54 regulatory approval for commercial sale . we began capitalizing adcetris production costs into inventory following its accelerated approval by the fda in august 2011. adcetris inventory that is deployed into clinical , research or development use is charged to research and development expense when it is no longer available for use in commercial sales . production costs for our other product candidates continue to be charged to research and development expense . we value our inventories at the lower of cost or market value . cost is determined on a specific identification basis . inventory includes the cost of materials , third-party contract manufacturing and overhead associated with the production of adcetris . we would write-down inventory cost to net realizable value if we were to determine that we had any excess , obsolete or unsalable inventory . on an ongoing basis , we evaluate our estimates , including those related to revenue recognition , investments , accrued expenses , research and development , share-based compensation , income taxes and inventories . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form our basis for making judgments about the carrying values of assets and

while we continue to assess the impact from the covid-19 outbreak , we are unable to accurately predict the full impact of covid-19 on our business , results of operations , financial position and cash flows due to numerous uncertainties , including the severity of the disease , the duration of the outbreak , any future waves or resurgences of the virus , variants of the virus , the timing of widespread adoption of vaccines against the virus , additional actions that may be taken by governmental authorities , the further impact on the business of drivers , merchants , consumers , and business partners , and other factors identified in part i , item 1a . “ risk factors ” of this annual report on form 10-k. driver classification developments the classification of drivers is currently being challenged in courts , by legislators and by government agencies in the united states and abroad . we are involved in numerous legal proceedings globally , including putative class and collective class action lawsuits , demands for arbitration , charges and claims before administrative agencies , and investigations or audits by labor , social 52 security , and tax authorities that claim that drivers should be treated as our employees ( or as workers or quasi-employees where those statuses exist ) , rather than as independent contractors . of particular note are proceedings in california , where on may 5 , 2020 , the california attorney general , in conjunction with the city attorneys for san francisco , los angeles and san diego , filed a complaint in san francisco superior court ( the “ court ” ) against uber and lyft , alleging that drivers are misclassified , and sought an injunction and monetary damages related to the alleged competitive advantage caused by the alleged misclassification of drivers . on august 10 , 2020 , the court issued a preliminary injunction order prohibiting us from classifying drivers as independent contractors and from violating various wage and hour laws . following a stay of the injunction and our unsuccessful appeal of the injunction to a court of appeal , we were ordered to comply with the preliminary injunction . in november 2020 , california voters approved proposition 22 , a state ballot initiative that provides a framework for drivers that use platforms like ours for independent work . proposition 22 went into effect in december 2020 and we expect that drivers will be able to maintain their status as independent contractors under california law and that we and our competitors will be required to comply with the provisions of proposition 22. although we do not expect that the california attorney general 's preliminary injunction will go into effect , litigation asserting that assembly bill 5 requires drivers in california to be classified as employees , including the california attorney general 's suit , remains pending , and we may face liability relating to periods before the effective date of proposition 22. to comply with proposition 22 , we have incurred and expect to incur additional expenses , including expenses associated with a guaranteed minimum earnings floor for drivers , insurance for injury protection and subsidies for health care . we do not expect these changes will have a material impact on our business , results of operations , financial position , or cash flows . also of note , on october 28 , 2015 , a claim by 25 drivers , including mr. y. aslam and mr. j. farrar , was brought in the uk employment tribunal against us asserting that they should be classified as “ workers ” ( a separate category between independent contractors and employees ) in the uk rather than independent contractors . the tribunal ruled on october 28 , 2016 that the drivers were workers whenever our app was switched on and they were ready and able to take trips , based on an assessment of the app in july 2016. the court of appeal rejected our appeal in a majority decision on december 19 , 2018. we appealed to the supreme court and a hearing at the supreme court took place in july 2020. on february 19 , 2021 , the supreme court of the uk upheld the tribunal ruling . damages may include back pay including holiday pay and minimum wage . additional claimants have also filed and each claimant will be required to bring their own separate action to an employment tribunal to determine whether they met the “ worker ” classification and if so , how much each claimant will be awarded . in addition , we expect to be subject to related pension contributions , which will require separate engagement with the uk pension regulator , but the ultimate resolution of this matter , including the amount of any exposure is uncertain . if , as a result of legislation or judicial decisions , we are required to classify drivers as employees , workers or quasi-employees where those statuses exist , we would incur significant additional expenses for compensating drivers , including expenses associated with the application of wage and hour laws ( including minimum wage , overtime , and meal and rest period requirements ) , employee benefits , social security contributions , taxes ( direct and indirect ) , and potential penalties . additionally , we may not have adequate driver supply as drivers may opt out of our platform given the loss of flexibility under an employment model , and we may not be able to hire a majority of the drivers currently using our platform . any of these events could negatively impact our business , result of operations , financial position , and cash flows . story_separator_special_tag as our business recovers from the impacts of covid-19 and trip volume increases , we would expect operations and support expenses to increase on an absolute dollar basis for the foreseeable future , but decrease as a percentage of revenue as we become more efficient in supporting platform users . sales and marketing sales and marketing expenses primarily consist of compensation costs , including stock-based compensation to sales and marketing employees , advertising costs , product marketing costs and discounts , loyalty programs , promotions , refunds , and credits provided to end-users who are not customers , and the allocation of certain corporate costs . we expense advertising and other promotional expenditures as incurred . as our business recovers from the impacts of covid-19 , we would anticipate sales and marketing expenses to increase on an absolute dollar basis for the foreseeable future but vary from period to period as a percentage of revenue due to timing of marketing campaigns . research and development research and development expenses primarily consist of compensation costs , including stock-based compensation , for employees in engineering , design and product development . expenses includes atg and other technology programs development expenses , as well as expenses associated with ongoing improvements to , and maintenance of , existing products and services , and allocation of certain corporate costs . we expense substantially all research and development expenses as incurred . we expect research and development expenses to increase and vary from period to period as a percentage of revenue as we continue to invest in research and development activities relating to ongoing improvements to and maintenance of our platform offerings and other research and development programs , offset by a decrease in investments in our atg and other technology programs subsequent to the divestiture of atg . 57 general and administrative general and administrative expenses primarily consist of compensation costs , including stock-based compensation , for executive management and administrative employees , including finance and accounting , human resources , policy and communications , legal , and certain impairment charges , as well as allocation of certain corporate costs , occupancy , and general corporate insurance costs . general and administrative expenses also include certain legal settlements . as our business recovers from the impacts of covid-19 and trip volume increases , we expect that general and administrative expenses will increase on an absolute dollar basis for the foreseeable future , but decrease as a percentage of revenue as we find efficiencies in our internal support functions . depreciation and amortization depreciation and amortization expenses primarily consist of depreciation on buildings , site improvements , computer and network equipment , software , leasehold improvements , leased vehicles , furniture and fixtures , and amortization of intangible assets . depreciation includes expenses associated with buildings , site improvements , computer and network equipment , leased vehicles , and furniture , fixtures , as well as leasehold improvements . amortization includes expenses associated with our capitalized internal-use software and acquired intangible assets . as our business recovers from the impacts of covid-19 , we would anticipate depreciation and amortization expenses to increase as we continue to build out our network infrastructure and building locations . interest expense interest expense primarily consists of interest expense associated with our outstanding debt , including accretion of debt discount and debt issuance costs . for additional detail related to our debt obligations , see “ note 8 - long-term debt and revolving credit arrangements ” to our consolidated financial statements included in part ii , item 8 , “ financial statements and supplementary data , ” of this annual report on form 10-k. other income ( expense ) , net other income ( expense ) , net primarily includes the following items : interest income , which primarily consists of interest earned on our cash and cash equivalents and restricted cash and cash equivalents . foreign currency exchange gains ( losses ) , net , which primarily consist of remeasurement of transactions and monetary assets and liabilities denominated in currencies other than the functional currency at the end of the period . gain ( loss ) on business divestitures , net . unrealized gain ( loss ) on debt and equity securities , net , which primarily consists of gains ( losses ) from fair value adjustments relating to our non-marketable securities . change in fair value of embedded derivatives , which primarily consists of gains and losses on embedded derivatives related to our 2021 and 2022 convertible notes until their extinguishment in connection with our ipo . gain on extinguishment of convertible notes and settlement of derivatives . other , net , which primarily consists of changes in the fair value of warrants and income from forfeitures of warrants . provision for ( benefit from ) income taxes we are subject to income taxes in the united states and foreign jurisdictions in which we do business . these foreign jurisdictions have different statutory tax rates than those in the united states . additionally , certain of our foreign earnings may also be taxable in the united states . accordingly , our effective tax rate will vary depending on the relative proportion of foreign to domestic income , use of foreign tax credits , changes in the valuation of our deferred tax assets , and liabilities and changes in tax laws . equity method investments equity method investments primarily includes the results of our share of income or loss from our yandex.taxi joint venture . 58 results of operations the following table summarizes our consolidated statements of operations for each of the periods presented ( in millions ) : replace_table_token_4_th ( 1 ) our revenue and cost of revenue , exclusive of depreciation and amortization for 2018 and 2019 have been retrospectively adjusted to reflect the implementation of our new accounting policy adopted in the fourth quarter of 2020. there was no net impact to loss from operations or net

liquidity and capital resources replace_table_token_26_th operating activities net cash used in operating activities was $ 2.7 billion for the year ended december 31 , 2020 , primarily consisting of $ 6.8 billion of net loss , adjusted for certain non-cash items , which primarily included $ 1.7 billion in impairment of non-marketable equity securities , $ 827 million of stock-based compensation expense , depreciation and amortization expense of $ 575 million , $ 404 million in impairment of goodwill , long-lived assets and other assets , as well as a $ 393 million decrease in cash consumed by working capital . the decrease in cash consumed by working capital and other operating activities was primarily driven by a decrease in our operating lease right-of-use assets , prepaid expenses and other assets and increase in accrued expenses and other liabilities , partially offset by lower accounts payable and operating lease liabilities . net cash used in operating activities was $ 4.3 billion for the year ended december 31 , 2019 , primarily consisting of $ 8.5 billion of net loss , adjusted for certain non-cash items , which primarily included $ 4.6 billion of stock-based compensation expense , $ 444 million of gain on extinguishment of convertible notes , $ 58 million of revaluation gain of our derivative liabilities , depreciation and amortization expense of $ 472 million , $ 82 million in accretion of discount on our long-term debt , as well as $ 1.2 billion withdrawal of collateral from restricted cash from james river and a $ 699 million decrease in cash consumed by working capital . the decrease in cash consumed by working capital was primarily driven by an increase in our insurance reserve , accrued expenses and other liabilities , partially offset by higher accounts receivable and prepaid expenses . 74 net cash used in operating activities was $ 1.5 billion for the year ended december 31 , 2018 , primarily consisting of $ 1.0 billion of net income , adjusted for certain non-cash items , which primarily included a $ 3.2 billion gain on business divestitures related to our 2018 divested operations , unrealized gain on investment of $ 2.0

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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_26_th operating activities net cash used in operating activities was $ 2.7 billion for the year ended december 31 , 2020 , primarily consisting of $ 6.8 billion of net loss , adjusted for certain non-cash items , which primarily included $ 1.7 billion in impairment of non-marketable equity securities , $ 827 million of stock-based compensation expense , depreciation and amortization expense of $ 575 million , $ 404 million in impairment of goodwill , long-lived assets and other assets , as well as a $ 393 million decrease in cash consumed by working capital . the decrease in cash consumed by working capital and other operating activities was primarily driven by a decrease in our operating lease right-of-use assets , prepaid expenses and other assets and increase in accrued expenses and other liabilities , partially offset by lower accounts payable and operating lease liabilities . net cash used in operating activities was $ 4.3 billion for the year ended december 31 , 2019 , primarily consisting of $ 8.5 billion of net loss , adjusted for certain non-cash items , which primarily included $ 4.6 billion of stock-based compensation expense , $ 444 million of gain on extinguishment of convertible notes , $ 58 million of revaluation gain of our derivative liabilities , depreciation and amortization expense of $ 472 million , $ 82 million in accretion of discount on our long-term debt , as well as $ 1.2 billion withdrawal of collateral from restricted cash from james river and a $ 699 million decrease in cash consumed by working capital . the decrease in cash consumed by working capital was primarily driven by an increase in our insurance reserve , accrued expenses and other liabilities , partially offset by higher accounts receivable and prepaid expenses . 74 net cash used in operating activities was $ 1.5 billion for the year ended december 31 , 2018 , primarily consisting of $ 1.0 billion of net income , adjusted for certain non-cash items , which primarily included a $ 3.2 billion gain on business divestitures related to our 2018 divested operations , unrealized gain on investment of $ 2.0 ``` Suspicious Activity Report : while we continue to assess the impact from the covid-19 outbreak , we are unable to accurately predict the full impact of covid-19 on our business , results of operations , financial position and cash flows due to numerous uncertainties , including the severity of the disease , the duration of the outbreak , any future waves or resurgences of the virus , variants of the virus , the timing of widespread adoption of vaccines against the virus , additional actions that may be taken by governmental authorities , the further impact on the business of drivers , merchants , consumers , and business partners , and other factors identified in part i , item 1a . “ risk factors ” of this annual report on form 10-k. driver classification developments the classification of drivers is currently being challenged in courts , by legislators and by government agencies in the united states and abroad . we are involved in numerous legal proceedings globally , including putative class and collective class action lawsuits , demands for arbitration , charges and claims before administrative agencies , and investigations or audits by labor , social 52 security , and tax authorities that claim that drivers should be treated as our employees ( or as workers or quasi-employees where those statuses exist ) , rather than as independent contractors . of particular note are proceedings in california , where on may 5 , 2020 , the california attorney general , in conjunction with the city attorneys for san francisco , los angeles and san diego , filed a complaint in san francisco superior court ( the “ court ” ) against uber and lyft , alleging that drivers are misclassified , and sought an injunction and monetary damages related to the alleged competitive advantage caused by the alleged misclassification of drivers . on august 10 , 2020 , the court issued a preliminary injunction order prohibiting us from classifying drivers as independent contractors and from violating various wage and hour laws . following a stay of the injunction and our unsuccessful appeal of the injunction to a court of appeal , we were ordered to comply with the preliminary injunction . in november 2020 , california voters approved proposition 22 , a state ballot initiative that provides a framework for drivers that use platforms like ours for independent work . proposition 22 went into effect in december 2020 and we expect that drivers will be able to maintain their status as independent contractors under california law and that we and our competitors will be required to comply with the provisions of proposition 22. although we do not expect that the california attorney general 's preliminary injunction will go into effect , litigation asserting that assembly bill 5 requires drivers in california to be classified as employees , including the california attorney general 's suit , remains pending , and we may face liability relating to periods before the effective date of proposition 22. to comply with proposition 22 , we have incurred and expect to incur additional expenses , including expenses associated with a guaranteed minimum earnings floor for drivers , insurance for injury protection and subsidies for health care . we do not expect these changes will have a material impact on our business , results of operations , financial position , or cash flows . also of note , on october 28 , 2015 , a claim by 25 drivers , including mr. y. aslam and mr. j. farrar , was brought in the uk employment tribunal against us asserting that they should be classified as “ workers ” ( a separate category between independent contractors and employees ) in the uk rather than independent contractors . the tribunal ruled on october 28 , 2016 that the drivers were workers whenever our app was switched on and they were ready and able to take trips , based on an assessment of the app in july 2016. the court of appeal rejected our appeal in a majority decision on december 19 , 2018. we appealed to the supreme court and a hearing at the supreme court took place in july 2020. on february 19 , 2021 , the supreme court of the uk upheld the tribunal ruling . damages may include back pay including holiday pay and minimum wage . additional claimants have also filed and each claimant will be required to bring their own separate action to an employment tribunal to determine whether they met the “ worker ” classification and if so , how much each claimant will be awarded . in addition , we expect to be subject to related pension contributions , which will require separate engagement with the uk pension regulator , but the ultimate resolution of this matter , including the amount of any exposure is uncertain . if , as a result of legislation or judicial decisions , we are required to classify drivers as employees , workers or quasi-employees where those statuses exist , we would incur significant additional expenses for compensating drivers , including expenses associated with the application of wage and hour laws ( including minimum wage , overtime , and meal and rest period requirements ) , employee benefits , social security contributions , taxes ( direct and indirect ) , and potential penalties . additionally , we may not have adequate driver supply as drivers may opt out of our platform given the loss of flexibility under an employment model , and we may not be able to hire a majority of the drivers currently using our platform . any of these events could negatively impact our business , result of operations , financial position , and cash flows . story_separator_special_tag as our business recovers from the impacts of covid-19 and trip volume increases , we would expect operations and support expenses to increase on an absolute dollar basis for the foreseeable future , but decrease as a percentage of revenue as we become more efficient in supporting platform users . sales and marketing sales and marketing expenses primarily consist of compensation costs , including stock-based compensation to sales and marketing employees , advertising costs , product marketing costs and discounts , loyalty programs , promotions , refunds , and credits provided to end-users who are not customers , and the allocation of certain corporate costs . we expense advertising and other promotional expenditures as incurred . as our business recovers from the impacts of covid-19 , we would anticipate sales and marketing expenses to increase on an absolute dollar basis for the foreseeable future but vary from period to period as a percentage of revenue due to timing of marketing campaigns . research and development research and development expenses primarily consist of compensation costs , including stock-based compensation , for employees in engineering , design and product development . expenses includes atg and other technology programs development expenses , as well as expenses associated with ongoing improvements to , and maintenance of , existing products and services , and allocation of certain corporate costs . we expense substantially all research and development expenses as incurred . we expect research and development expenses to increase and vary from period to period as a percentage of revenue as we continue to invest in research and development activities relating to ongoing improvements to and maintenance of our platform offerings and other research and development programs , offset by a decrease in investments in our atg and other technology programs subsequent to the divestiture of atg . 57 general and administrative general and administrative expenses primarily consist of compensation costs , including stock-based compensation , for executive management and administrative employees , including finance and accounting , human resources , policy and communications , legal , and certain impairment charges , as well as allocation of certain corporate costs , occupancy , and general corporate insurance costs . general and administrative expenses also include certain legal settlements . as our business recovers from the impacts of covid-19 and trip volume increases , we expect that general and administrative expenses will increase on an absolute dollar basis for the foreseeable future , but decrease as a percentage of revenue as we find efficiencies in our internal support functions . depreciation and amortization depreciation and amortization expenses primarily consist of depreciation on buildings , site improvements , computer and network equipment , software , leasehold improvements , leased vehicles , furniture and fixtures , and amortization of intangible assets . depreciation includes expenses associated with buildings , site improvements , computer and network equipment , leased vehicles , and furniture , fixtures , as well as leasehold improvements . amortization includes expenses associated with our capitalized internal-use software and acquired intangible assets . as our business recovers from the impacts of covid-19 , we would anticipate depreciation and amortization expenses to increase as we continue to build out our network infrastructure and building locations . interest expense interest expense primarily consists of interest expense associated with our outstanding debt , including accretion of debt discount and debt issuance costs . for additional detail related to our debt obligations , see “ note 8 - long-term debt and revolving credit arrangements ” to our consolidated financial statements included in part ii , item 8 , “ financial statements and supplementary data , ” of this annual report on form 10-k. other income ( expense ) , net other income ( expense ) , net primarily includes the following items : interest income , which primarily consists of interest earned on our cash and cash equivalents and restricted cash and cash equivalents . foreign currency exchange gains ( losses ) , net , which primarily consist of remeasurement of transactions and monetary assets and liabilities denominated in currencies other than the functional currency at the end of the period . gain ( loss ) on business divestitures , net . unrealized gain ( loss ) on debt and equity securities , net , which primarily consists of gains ( losses ) from fair value adjustments relating to our non-marketable securities . change in fair value of embedded derivatives , which primarily consists of gains and losses on embedded derivatives related to our 2021 and 2022 convertible notes until their extinguishment in connection with our ipo . gain on extinguishment of convertible notes and settlement of derivatives . other , net , which primarily consists of changes in the fair value of warrants and income from forfeitures of warrants . provision for ( benefit from ) income taxes we are subject to income taxes in the united states and foreign jurisdictions in which we do business . these foreign jurisdictions have different statutory tax rates than those in the united states . additionally , certain of our foreign earnings may also be taxable in the united states . accordingly , our effective tax rate will vary depending on the relative proportion of foreign to domestic income , use of foreign tax credits , changes in the valuation of our deferred tax assets , and liabilities and changes in tax laws . equity method investments equity method investments primarily includes the results of our share of income or loss from our yandex.taxi joint venture . 58 results of operations the following table summarizes our consolidated statements of operations for each of the periods presented ( in millions ) : replace_table_token_4_th ( 1 ) our revenue and cost of revenue , exclusive of depreciation and amortization for 2018 and 2019 have been retrospectively adjusted to reflect the implementation of our new accounting policy adopted in the fourth quarter of 2020. there was no net impact to loss from operations or net

our revenues typically fluctuate due to the seasonality of our industry , customer buying patterns , product innovation , the nature and level of competition for health and fitness products , our ability to procure products to meet customer demand , the level of spending on , and effectiveness of , our media and advertising programs and our ability to attract new customers and maintain existing sales relationships . in addition , our revenues are highly susceptible to economic factors , including , among other things , the overall condition of the economy and the availability of consumer credit in both the united states and canada . our profit margins may vary in response to the aforementioned factors and our ability to manage product costs . profit margins may also be affected by fluctuations in the costs or availability of materials used to manufacture our products , product warranty costs , higher or lower fuel prices , and changes in costs of other distribution or manufacturing-related services . our operating profits or losses may also be affected by the efficiency and effectiveness of our organization . historically , our operating expenses have been influenced by media costs to produce and air television advertisements of our products , facility costs , operating costs of our information and communications systems , product supply chain management , customer support and new product development activities . in addition , our operating expenses have been affected from time-to-time by asset impairment charges , restructuring charges and other significant unusual or infrequent expenses . as a result of the above and other factors , our period-to-period operating results may not be indicative of future performance . you should not place undue reliance on our operating results and should consider our prospects in light of the risks , expenses and difficulties typically encountered by us and other companies , both within and outside our industry . we may not be able to successfully address these risks and difficulties and , consequently , we can not assure you of any future growth or profitability . for more information , see our discussion of risk factors located at part i , item 1a of this report . overview we are committed to providing innovative , quality solutions to help people achieve a fit and healthy lifestyle . our principal business activities include designing , developing , sourcing and marketing high-quality cardiovascular and strength fitness products and related accessories for consumer home use , primarily in the united states and canada . our products are sold under some of the most recognized brand names in the fitness industry : nautilus ® , bowflex ® , schwinn ® , schwinn fitness and universal ® . we market our products through two distinct distribution channels , direct and retail , which we consider to be separate business segments . our direct business offers products directly to consumers through television advertising , the internet and catalogs . our retail business offers our products through a network of third-party retailers with stores and websites located in the united states and internationally . our net sales in 2011 were $ 180.4 million , an increase of $ 12.0 million , or 7.1 % , compared to net sales of $ 168.5 million in 2010 , largely due to the continued strong demand for our treadclimber products . this increase was partially offset by comparably lower sales for home gyms and other strength products . growth in treadclimber sales continues to be driven by consumer acceptance , more effective media advertising and improving consumer credit approval rates . in september 2010 , we completed our transition to a new consumer credit program with a new primary third-party financing provider , ge capital retail bank , formerly ge money bank ( `` ge `` ) . the relationship with ge has expanded the ability of our customers to obtain third-party consumer financing for buying our products . in addition , we added one secondary third-party consumer credit financing provider during the third quarter of 2010 and another in early 2011 , both of which offer credit to certain qualified consumers whose credit applications have been declined by ge . as a result of these actions , combined consumer credit approvals by our primary and secondary u.s. third-party financing providers increased from 15 % in 2010 to 25 % in 2011. income from continuing operations was $ 2.5 million for 2011 , compared to a loss from continuing operations of $ 9.8 million for 2010 . diluted income per share from continuing operations for 2011 was $ 0.08 , compared to diluted loss per share of $ ( 0.32 ) for 2010 . the significant improvement in results of continuing operations for 2011 was largely attributable to 13 increased sales and a 13.3 % reduction in operating expenses achieved primarily through more cost efficient media advertising expenditures . selling and marketing expenses as a percent of net sales declined to 30.2 % for 2011 from 38.0 % for 2010 . during 2011 , we allocated a larger portion of our media expenditures toward our treadclimber product line , compared to 2010. in addition , we began implementing a lower cost internet-based advertising strategy for our home gyms in 2011 , which is designed to capitalize on the extensive product awareness that currently exists among consumers for our bowflex rod-based home gyms . story_separator_special_tag some expenses may be incurred in 2012 in connection with the settlement of contingencies arising from and directly related to our commercial business prior to its disposal . liquidity and capital resources as of december 31 , 2011 , we had $ 17.4 million of cash and cash equivalents , compared to $ 14.3 million as of december 31 , 2010 . the principal source of this increase in liquidity was cash provided by operating activities of $ 4.6 million in 2011 , compared to cash used in operating activities of $ 10.7 million in 2010 . management believes that sufficient funds will be 18 available to meet our expected cash needs for at least the next twelve months , based on cash currently on hand and anticipated cash flows from operations . cash provided by operating activities of $ 4.6 million in 2011 consisted primarily of income from continuing operations , partially offset by loss from discontinued operation , as adjusted for non-cash items . cash provided by a $ 4.0 million increase in trade payables was more than offset by a $ 4.6 million increase in trade receivables and a $ 1.3 million increase in inventories . cash used in operating activities of $ 10.7 million in 2010 consisted primarily of losses from continuing and discontinued operations of $ 22.8 million and reductions in trade payables and accrued liabilities of $ 12.6 million and $ 6.3 million , respectively , partially offset by $ 12.4 million from income tax refunds , net of payments , $ 7.2 million from the reduction of trade receivables and $ 6.3 million from the reduction of inventories . significant reductions in trade receivables , trade payables and accrued liabilities in 2010 largely resulted from winding down our discontinued commercial business . the following table presents comparative cash flows related to trade receivables and inventories for the years ended december 31 , 2011 and 2010 ( in thousands ) : replace_table_token_4_th story_separator_special_tag on july 19 , 2011 , beneficial interest in the notes was assigned by the sherborne purchasers pro-rata to their respective investors in the manner permitted by the purchase agreement . such assignment was made in connection with the resignation , of messrs. bramson and mckibben from their respective positions with nautilus on may 26 , 2011 , and the subsequent pro-rata distribution by certain sherborne-affiliated entities to their respective investors of the common stock of the company owned by such entities . the notes are subordinated to the loan agreement . the purchase agreement includes certain negative covenants , including restrictions on the incurrence of additional indebtedness , liens , liquidation of assets , capital expenditures , payment of dividends , changes in our business operations and change of control transactions . the purchase agreement includes customary events of default , including nonpayment , insolvency , breach of warranty or covenant , cross-default of the loan agreement , material adverse changes and other events . upon the occurrence of an event of default all outstanding obligations under the notes may be declared due and payable . the accretion rate of the notes may be increased by 2 % per annum during the continuance of an event of default . non-cancelable contractual obligations our operating cash flows include the effect of certain non-cancelable , contractual obligations . a summary of such obligations as of december 31 , 2011 , including those related to our discontinued commercial operation , is as follows ( in thousands ) : 20 replace_table_token_5_th ( 1 ) our purchase obligations are comprised primarily of inventory purchase commitments . because substantially all of our inventory is sourced from asia , we have long lead times and therefore need to secure factory capacity from our vendors in advance . due to uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits at december 31 , 2011 , we are unable to make reasonably reliable estimates of the timing of any cash settlements with the respective taxing authorities . therefore , approximately $ 5.9 million of unrecognized tax benefits , including interest and penalties on uncertain tax positions , have been excluded from the contractual table above . for further information , refer to note 11 , income taxes , to our consolidated financial statements in part ii , item 8 of this report . off-balance sheet arrangements prior to its divestiture , our discontinued commercial business would , from time-to-time , involve a third-party with lease and financing arrangements to assist customers in purchasing products . while most of these financings were without recourse , in certain cases we offered a guarantee or other recourse provisions , whereby a third-party financing provider reviewed customer credit information in evaluating the risk of default prior to extending credit to a customer and we relied on the quality of this review and our own risk assessment in determining whether to proceed with the recourse transaction . as of december 31 , 2011 , the maximum contingent liability under all recourse provisions was approximately $ 0.8 million . for further information , refer to note 15 , commitments and contingencies , to our consolidated financial statements in part ii , item 8 of this report . in the ordinary course of business , we enter into agreements that require us to indemnify counterparties against third-party claims . these may include : agreements with vendors and suppliers , under which we may indemnify them against claims arising from our use of their products or services ; agreements with customers , under which we may indemnify them against claims arising from their use or sale of our products ; real estate and equipment leases , under which we may indemnify lessors against third party claims relating to the use of their property ; agreements with licensees or licensors , under which we may indemnify the licensee or licensor against claims arising from their use of our intellectual property or

cash used in investing activities of $ 0.9 million in 2011 included $ 2.5 million used to purchase computer software and production tooling , partially offset by $ 1.3 million in proceeds from the sale of portions of our discontinued commercial business and $ 0.4 million from a decrease in the amount of restricted cash collateralizing our outstanding letters of credit . cash provided by investing activities of $ 11.6 million in 2010 included $ 7.3 million in proceeds from the sale of portions of our discontinued commercial business and $ 4.6 million from a decrease in the amount of restricted cash collateralizing our outstanding letters of credit . cash used in financing activities in 2011 was less than $ 0.1 million for payment of bank financing costs . cash provided by financing activities in 2010 of $ 4.7 million consisted of $ 5.0 million in long-term borrowings , partially offset by $ 0.3 million paid for financing costs related to our new bank agreement and long-term borrowings . financing arrangements we have a loan and security agreement ( the “ loan agreement ” ) with bank of the west , which provides a revolving secured credit line of up to $ 15.0 million . the amount available for borrowings varies based upon the total amount of eligible accounts receivable and inventory as of the end of the preceding month . the loan agreement is available for working capital , standby letters of credit and general corporate purposes through august 31 , 2012 , assuming we satisfy certain terms and conditions at the time borrowings are requested . the interest rate on future borrowings , if any , under the loan agreement will be based on the bank 's base rate plus 150 to 225 basis points or libor plus 225 to 325 basis points and our financial condition at the time we elect to borrow ( our borrowing rate was 3.01 % as of december 31 , 2011 ) .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash used in investing activities of $ 0.9 million in 2011 included $ 2.5 million used to purchase computer software and production tooling , partially offset by $ 1.3 million in proceeds from the sale of portions of our discontinued commercial business and $ 0.4 million from a decrease in the amount of restricted cash collateralizing our outstanding letters of credit . cash provided by investing activities of $ 11.6 million in 2010 included $ 7.3 million in proceeds from the sale of portions of our discontinued commercial business and $ 4.6 million from a decrease in the amount of restricted cash collateralizing our outstanding letters of credit . cash used in financing activities in 2011 was less than $ 0.1 million for payment of bank financing costs . cash provided by financing activities in 2010 of $ 4.7 million consisted of $ 5.0 million in long-term borrowings , partially offset by $ 0.3 million paid for financing costs related to our new bank agreement and long-term borrowings . financing arrangements we have a loan and security agreement ( the “ loan agreement ” ) with bank of the west , which provides a revolving secured credit line of up to $ 15.0 million . the amount available for borrowings varies based upon the total amount of eligible accounts receivable and inventory as of the end of the preceding month . the loan agreement is available for working capital , standby letters of credit and general corporate purposes through august 31 , 2012 , assuming we satisfy certain terms and conditions at the time borrowings are requested . the interest rate on future borrowings , if any , under the loan agreement will be based on the bank 's base rate plus 150 to 225 basis points or libor plus 225 to 325 basis points and our financial condition at the time we elect to borrow ( our borrowing rate was 3.01 % as of december 31 , 2011 ) . ``` Suspicious Activity Report : our revenues typically fluctuate due to the seasonality of our industry , customer buying patterns , product innovation , the nature and level of competition for health and fitness products , our ability to procure products to meet customer demand , the level of spending on , and effectiveness of , our media and advertising programs and our ability to attract new customers and maintain existing sales relationships . in addition , our revenues are highly susceptible to economic factors , including , among other things , the overall condition of the economy and the availability of consumer credit in both the united states and canada . our profit margins may vary in response to the aforementioned factors and our ability to manage product costs . profit margins may also be affected by fluctuations in the costs or availability of materials used to manufacture our products , product warranty costs , higher or lower fuel prices , and changes in costs of other distribution or manufacturing-related services . our operating profits or losses may also be affected by the efficiency and effectiveness of our organization . historically , our operating expenses have been influenced by media costs to produce and air television advertisements of our products , facility costs , operating costs of our information and communications systems , product supply chain management , customer support and new product development activities . in addition , our operating expenses have been affected from time-to-time by asset impairment charges , restructuring charges and other significant unusual or infrequent expenses . as a result of the above and other factors , our period-to-period operating results may not be indicative of future performance . you should not place undue reliance on our operating results and should consider our prospects in light of the risks , expenses and difficulties typically encountered by us and other companies , both within and outside our industry . we may not be able to successfully address these risks and difficulties and , consequently , we can not assure you of any future growth or profitability . for more information , see our discussion of risk factors located at part i , item 1a of this report . overview we are committed to providing innovative , quality solutions to help people achieve a fit and healthy lifestyle . our principal business activities include designing , developing , sourcing and marketing high-quality cardiovascular and strength fitness products and related accessories for consumer home use , primarily in the united states and canada . our products are sold under some of the most recognized brand names in the fitness industry : nautilus ® , bowflex ® , schwinn ® , schwinn fitness and universal ® . we market our products through two distinct distribution channels , direct and retail , which we consider to be separate business segments . our direct business offers products directly to consumers through television advertising , the internet and catalogs . our retail business offers our products through a network of third-party retailers with stores and websites located in the united states and internationally . our net sales in 2011 were $ 180.4 million , an increase of $ 12.0 million , or 7.1 % , compared to net sales of $ 168.5 million in 2010 , largely due to the continued strong demand for our treadclimber products . this increase was partially offset by comparably lower sales for home gyms and other strength products . growth in treadclimber sales continues to be driven by consumer acceptance , more effective media advertising and improving consumer credit approval rates . in september 2010 , we completed our transition to a new consumer credit program with a new primary third-party financing provider , ge capital retail bank , formerly ge money bank ( `` ge `` ) . the relationship with ge has expanded the ability of our customers to obtain third-party consumer financing for buying our products . in addition , we added one secondary third-party consumer credit financing provider during the third quarter of 2010 and another in early 2011 , both of which offer credit to certain qualified consumers whose credit applications have been declined by ge . as a result of these actions , combined consumer credit approvals by our primary and secondary u.s. third-party financing providers increased from 15 % in 2010 to 25 % in 2011. income from continuing operations was $ 2.5 million for 2011 , compared to a loss from continuing operations of $ 9.8 million for 2010 . diluted income per share from continuing operations for 2011 was $ 0.08 , compared to diluted loss per share of $ ( 0.32 ) for 2010 . the significant improvement in results of continuing operations for 2011 was largely attributable to 13 increased sales and a 13.3 % reduction in operating expenses achieved primarily through more cost efficient media advertising expenditures . selling and marketing expenses as a percent of net sales declined to 30.2 % for 2011 from 38.0 % for 2010 . during 2011 , we allocated a larger portion of our media expenditures toward our treadclimber product line , compared to 2010. in addition , we began implementing a lower cost internet-based advertising strategy for our home gyms in 2011 , which is designed to capitalize on the extensive product awareness that currently exists among consumers for our bowflex rod-based home gyms . story_separator_special_tag some expenses may be incurred in 2012 in connection with the settlement of contingencies arising from and directly related to our commercial business prior to its disposal . liquidity and capital resources as of december 31 , 2011 , we had $ 17.4 million of cash and cash equivalents , compared to $ 14.3 million as of december 31 , 2010 . the principal source of this increase in liquidity was cash provided by operating activities of $ 4.6 million in 2011 , compared to cash used in operating activities of $ 10.7 million in 2010 . management believes that sufficient funds will be 18 available to meet our expected cash needs for at least the next twelve months , based on cash currently on hand and anticipated cash flows from operations . cash provided by operating activities of $ 4.6 million in 2011 consisted primarily of income from continuing operations , partially offset by loss from discontinued operation , as adjusted for non-cash items . cash provided by a $ 4.0 million increase in trade payables was more than offset by a $ 4.6 million increase in trade receivables and a $ 1.3 million increase in inventories . cash used in operating activities of $ 10.7 million in 2010 consisted primarily of losses from continuing and discontinued operations of $ 22.8 million and reductions in trade payables and accrued liabilities of $ 12.6 million and $ 6.3 million , respectively , partially offset by $ 12.4 million from income tax refunds , net of payments , $ 7.2 million from the reduction of trade receivables and $ 6.3 million from the reduction of inventories . significant reductions in trade receivables , trade payables and accrued liabilities in 2010 largely resulted from winding down our discontinued commercial business . the following table presents comparative cash flows related to trade receivables and inventories for the years ended december 31 , 2011 and 2010 ( in thousands ) : replace_table_token_4_th story_separator_special_tag on july 19 , 2011 , beneficial interest in the notes was assigned by the sherborne purchasers pro-rata to their respective investors in the manner permitted by the purchase agreement . such assignment was made in connection with the resignation , of messrs. bramson and mckibben from their respective positions with nautilus on may 26 , 2011 , and the subsequent pro-rata distribution by certain sherborne-affiliated entities to their respective investors of the common stock of the company owned by such entities . the notes are subordinated to the loan agreement . the purchase agreement includes certain negative covenants , including restrictions on the incurrence of additional indebtedness , liens , liquidation of assets , capital expenditures , payment of dividends , changes in our business operations and change of control transactions . the purchase agreement includes customary events of default , including nonpayment , insolvency , breach of warranty or covenant , cross-default of the loan agreement , material adverse changes and other events . upon the occurrence of an event of default all outstanding obligations under the notes may be declared due and payable . the accretion rate of the notes may be increased by 2 % per annum during the continuance of an event of default . non-cancelable contractual obligations our operating cash flows include the effect of certain non-cancelable , contractual obligations . a summary of such obligations as of december 31 , 2011 , including those related to our discontinued commercial operation , is as follows ( in thousands ) : 20 replace_table_token_5_th ( 1 ) our purchase obligations are comprised primarily of inventory purchase commitments . because substantially all of our inventory is sourced from asia , we have long lead times and therefore need to secure factory capacity from our vendors in advance . due to uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits at december 31 , 2011 , we are unable to make reasonably reliable estimates of the timing of any cash settlements with the respective taxing authorities . therefore , approximately $ 5.9 million of unrecognized tax benefits , including interest and penalties on uncertain tax positions , have been excluded from the contractual table above . for further information , refer to note 11 , income taxes , to our consolidated financial statements in part ii , item 8 of this report . off-balance sheet arrangements prior to its divestiture , our discontinued commercial business would , from time-to-time , involve a third-party with lease and financing arrangements to assist customers in purchasing products . while most of these financings were without recourse , in certain cases we offered a guarantee or other recourse provisions , whereby a third-party financing provider reviewed customer credit information in evaluating the risk of default prior to extending credit to a customer and we relied on the quality of this review and our own risk assessment in determining whether to proceed with the recourse transaction . as of december 31 , 2011 , the maximum contingent liability under all recourse provisions was approximately $ 0.8 million . for further information , refer to note 15 , commitments and contingencies , to our consolidated financial statements in part ii , item 8 of this report . in the ordinary course of business , we enter into agreements that require us to indemnify counterparties against third-party claims . these may include : agreements with vendors and suppliers , under which we may indemnify them against claims arising from our use of their products or services ; agreements with customers , under which we may indemnify them against claims arising from their use or sale of our products ; real estate and equipment leases , under which we may indemnify lessors against third party claims relating to the use of their property ; agreements with licensees or licensors , under which we may indemnify the licensee or licensor against claims arising from their use of our intellectual property or

27 code of ethics we adopted a code of conduct and ethics applicable to our directors , officers and employees in accordance with applicable federal securities laws . the code of ethics codifies the business and ethical principles that govern all aspects of our business . section 16 ( a ) beneficial ownership reporting compliance section 16 ( a ) of the securities exchange act of 1934 , as amended , or the exchange act , requires our executive officers , directors and persons who beneficially own more than 10 % of a registered class of our equity securities to file with the securities and exchange commission initial reports of ownership and reports of changes in ownership of our ordinary shares and other equity securities . these executive officers , directors , and greater than 10 % beneficial owners are required by sec regulation to furnish us with copies of all section 16 ( a ) forms filed by such reporting persons . based solely on our review of such forms furnished to us and written representations from certain reporting persons , we believe that all filing requirements applicable to our executive officers , directors and greater than 10 % beneficial owners were filed in a timely manner . item 11. executive compensation employment agreements we have not entered into any employment agreements with our executive officers , and have not made any agreements to provide benefits upon termination of employment . executive officers and director compensation no executive officer has received any cash compensation for services rendered to us . no compensation of any kind , including finders , consulting or other similar fees , will be paid to any of our existing shareholders , including our directors , or any of their respective affiliates , prior to , or for any services they render in order to effectuate , the consummation of a business combination . however , such individuals will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations . there is no limit on the amount of these out-of-pocket expenses and there will be no review of the reasonableness of the expenses by anyone other than our board of directors and audit committee , which includes persons who may seek reimbursement , or a court of competent jurisdiction if such reimbursement is challenged . item 12. security ownership of certain beneficial owners and management and related shareholder matters story_separator_special_tag 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 report . certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we were formed on november 28 , 2016 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 target businesses . our efforts to identify a prospective target business will not be limited to any particular industry or geographic location . we have not selected any target business for our initial business combination . we presently have no revenue , have had losses since inception from incurring formation costs and have had no operations other than the active solicitation of a target business with which to complete a business combination . we have relied upon the sale of our securities and loans from our officers and directors to fund our operations . on october 30 , 2017 , we consummated our ipo of 18,000,000 units . each unit consists of one ordinary share , one-half of a redeemable public warrant and one right to receive 1/10 of an ordinary share upon the consummation of our initial business combination . the units were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 180,000,000. the company granted the underwriters a 45-day option to purchase up to 2,700,000 additional units to cover over-allotments , if any . on october 30 , 2017 , simultaneously with the consummation of the ipo , we consummated a private placement with our sponsor of 475,000 private units at a price of $ 10.00 per private unit , generating total proceeds of $ 4,750,000. the underwriters exercised the over-allotment option in part and , on november 3 , 2017 , the underwriters purchased 2,636,293 over-allotment option units , which were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 26,362,930. on november 3 , 2017 , simultaneously with the sale of the over-allotment units , the company consummated the private sale of an additional 52,726 private units to our sponsor , generating gross proceeds of $ 527,260. on november 3 , 2017 , the underwriters canceled the remainder of the over-allotment option . in connection with the cancellation of the remainder of the over-allotment option , the company canceled an aggregate of 15,927 ordinary shares issued to our sponsor prior to the ipo and private placement . as of december 31 , 2017 , a total of $ 206,362,930 of the net proceeds from the ipo ( including the partial exercise of the over-allotment option ) and the private placements were in a trust account established for the benefit of the company 's public shareholders . our management has broad discretion with respect to the specific application of the net proceeds of ipo and the private placements , although substantially all of the net proceeds are intended to be applied generally towards consummating a business combination . results of operations our entire activity from inception up to october 25 , 2017 was related to the company 's formation , the ipo and general and administrative activities . since the ipo , our activity story_separator_special_tag 27 code of ethics we adopted a code of conduct and ethics applicable to our directors , officers and employees in accordance with applicable federal securities laws . the code of ethics codifies the business and ethical principles that govern all aspects of our business . section 16 ( a ) beneficial ownership reporting compliance section 16 ( a ) of the securities exchange act of 1934 , as amended , or the exchange act , requires our executive officers , directors and persons who beneficially own more than 10 % of a registered class of our equity securities to file with the securities and exchange commission initial reports of ownership and reports of changes in ownership of our ordinary shares and other equity securities . these executive officers , directors , and greater than 10 % beneficial owners are required by sec regulation to furnish us with copies of all section 16 ( a ) forms filed by such reporting persons . based solely on our review of such forms furnished to us and written representations from certain reporting persons , we believe that all filing requirements applicable to our executive officers , directors and greater than 10 % beneficial owners were filed in a timely manner . item 11. executive compensation employment agreements we have not entered into any employment agreements with our executive officers , and have not made any agreements to provide benefits upon termination of employment . executive officers and director compensation no executive officer has received any cash compensation for services rendered to us . no compensation of any kind , including finders , consulting or other similar fees , will be paid to any of our existing shareholders , including our directors , or any of their respective affiliates , prior to , or for any services they render in order to effectuate , the consummation of a business combination . however , such individuals will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations . there is no limit on the amount of these out-of-pocket expenses and there will be no review of the reasonableness of the expenses by anyone other than our board of directors and audit committee , which includes persons who may seek reimbursement , or a court of competent jurisdiction if such reimbursement is challenged . item 12. security ownership of certain beneficial owners and management and related shareholder matters story_separator_special_tag 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 report . certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we were formed on november 28 , 2016 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 target businesses . our efforts to identify a prospective target business will not be limited to any particular industry or geographic location . we have not selected any target business for our initial business combination . we presently have no revenue , have had losses since inception from incurring formation costs and have had no operations other than the active solicitation of a target business with which to complete a business combination . we have relied upon the sale of our securities and loans from our officers and directors to fund our operations . on october 30 , 2017 , we consummated our ipo of 18,000,000 units . each unit consists of one ordinary share , one-half of a redeemable public warrant and one right to receive 1/10 of an ordinary share upon the consummation of our initial business combination . the units were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 180,000,000. the company granted the underwriters a 45-day option to purchase up to 2,700,000 additional units to cover over-allotments , if any . on october 30 , 2017 , simultaneously with the consummation of the ipo , we consummated a private placement with our sponsor of 475,000 private units at a price of $ 10.00 per private unit , generating total proceeds of $ 4,750,000. the underwriters exercised the over-allotment option in part and , on november 3 , 2017 , the underwriters purchased 2,636,293 over-allotment option units , which were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 26,362,930. on november 3 , 2017 , simultaneously with the sale of the over-allotment units , the company consummated the private sale of an additional 52,726 private units to our sponsor , generating gross proceeds of $ 527,260. on november 3 , 2017 , the underwriters canceled the remainder of the over-allotment option . in connection with the cancellation of the remainder of the over-allotment option , the company canceled an aggregate of 15,927 ordinary shares issued to our sponsor prior to the ipo and private placement . as of december 31 , 2017 , a total of $ 206,362,930 of the net proceeds from the ipo ( including the partial exercise of the over-allotment option ) and the private placements were in a trust account established for the benefit of the company 's public shareholders . our management has broad discretion with respect to the specific application of the net proceeds of ipo and the private placements , although substantially all of the net proceeds are intended to be applied generally towards consummating a business combination . results of operations our entire activity from inception up to october 25 , 2017 was related to the company 's formation , the ipo and general and administrative activities . since the ipo , our activity

liquidity and capital resources as of december 31 , 2017 , we had cash outside our trust account of $ 165,405 , available for working capital needs . all remaining cash was held in the trust account and is generally unavailable for our use , prior to an initial business combination . our liquidity needs have been satisfied to date through receipt of $ 31,038 from the sale of the insider shares , advances from our sponsor and an affiliate of our sponsor in an aggregate amount of $ 663,009 , which were repaid upon our ipo and not outstanding as of december 31 , 2017 , and the remaining net proceeds from our ipo and private placements . additionally , on april 9 , 2018 , our sponsor agreed to loan to us an additional $ 500,000 pursuant to a non-convertible non-interest bearing promissory note , which will be repaid promptly after the date on which we consummate a business combination . in the event that we are unable to consummate a business combination , as described in the prospectus relating to the ipo , the balance of such note will be forgiven and our sponsor will not be entitled to any payment thereunder . we intend to use substantially all of the net proceeds of the ipo , including the funds held in the trust account , and any additional funding from our sponsor 's promissory note commitment , to acquire a target business or businesses and to pay our expenses relating thereto , including a cash fee equal to 3.5 % of the gross proceeds of the ipo payable to the representative of the underwriters upon consummation of our initial business combination for assisting us in connection with such business combination .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources as of december 31 , 2017 , we had cash outside our trust account of $ 165,405 , available for working capital needs . all remaining cash was held in the trust account and is generally unavailable for our use , prior to an initial business combination . our liquidity needs have been satisfied to date through receipt of $ 31,038 from the sale of the insider shares , advances from our sponsor and an affiliate of our sponsor in an aggregate amount of $ 663,009 , which were repaid upon our ipo and not outstanding as of december 31 , 2017 , and the remaining net proceeds from our ipo and private placements . additionally , on april 9 , 2018 , our sponsor agreed to loan to us an additional $ 500,000 pursuant to a non-convertible non-interest bearing promissory note , which will be repaid promptly after the date on which we consummate a business combination . in the event that we are unable to consummate a business combination , as described in the prospectus relating to the ipo , the balance of such note will be forgiven and our sponsor will not be entitled to any payment thereunder . we intend to use substantially all of the net proceeds of the ipo , including the funds held in the trust account , and any additional funding from our sponsor 's promissory note commitment , to acquire a target business or businesses and to pay our expenses relating thereto , including a cash fee equal to 3.5 % of the gross proceeds of the ipo payable to the representative of the underwriters upon consummation of our initial business combination for assisting us in connection with such business combination . ``` Suspicious Activity Report : 27 code of ethics we adopted a code of conduct and ethics applicable to our directors , officers and employees in accordance with applicable federal securities laws . the code of ethics codifies the business and ethical principles that govern all aspects of our business . section 16 ( a ) beneficial ownership reporting compliance section 16 ( a ) of the securities exchange act of 1934 , as amended , or the exchange act , requires our executive officers , directors and persons who beneficially own more than 10 % of a registered class of our equity securities to file with the securities and exchange commission initial reports of ownership and reports of changes in ownership of our ordinary shares and other equity securities . these executive officers , directors , and greater than 10 % beneficial owners are required by sec regulation to furnish us with copies of all section 16 ( a ) forms filed by such reporting persons . based solely on our review of such forms furnished to us and written representations from certain reporting persons , we believe that all filing requirements applicable to our executive officers , directors and greater than 10 % beneficial owners were filed in a timely manner . item 11. executive compensation employment agreements we have not entered into any employment agreements with our executive officers , and have not made any agreements to provide benefits upon termination of employment . executive officers and director compensation no executive officer has received any cash compensation for services rendered to us . no compensation of any kind , including finders , consulting or other similar fees , will be paid to any of our existing shareholders , including our directors , or any of their respective affiliates , prior to , or for any services they render in order to effectuate , the consummation of a business combination . however , such individuals will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations . there is no limit on the amount of these out-of-pocket expenses and there will be no review of the reasonableness of the expenses by anyone other than our board of directors and audit committee , which includes persons who may seek reimbursement , or a court of competent jurisdiction if such reimbursement is challenged . item 12. security ownership of certain beneficial owners and management and related shareholder matters story_separator_special_tag 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 report . certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we were formed on november 28 , 2016 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 target businesses . our efforts to identify a prospective target business will not be limited to any particular industry or geographic location . we have not selected any target business for our initial business combination . we presently have no revenue , have had losses since inception from incurring formation costs and have had no operations other than the active solicitation of a target business with which to complete a business combination . we have relied upon the sale of our securities and loans from our officers and directors to fund our operations . on october 30 , 2017 , we consummated our ipo of 18,000,000 units . each unit consists of one ordinary share , one-half of a redeemable public warrant and one right to receive 1/10 of an ordinary share upon the consummation of our initial business combination . the units were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 180,000,000. the company granted the underwriters a 45-day option to purchase up to 2,700,000 additional units to cover over-allotments , if any . on october 30 , 2017 , simultaneously with the consummation of the ipo , we consummated a private placement with our sponsor of 475,000 private units at a price of $ 10.00 per private unit , generating total proceeds of $ 4,750,000. the underwriters exercised the over-allotment option in part and , on november 3 , 2017 , the underwriters purchased 2,636,293 over-allotment option units , which were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 26,362,930. on november 3 , 2017 , simultaneously with the sale of the over-allotment units , the company consummated the private sale of an additional 52,726 private units to our sponsor , generating gross proceeds of $ 527,260. on november 3 , 2017 , the underwriters canceled the remainder of the over-allotment option . in connection with the cancellation of the remainder of the over-allotment option , the company canceled an aggregate of 15,927 ordinary shares issued to our sponsor prior to the ipo and private placement . as of december 31 , 2017 , a total of $ 206,362,930 of the net proceeds from the ipo ( including the partial exercise of the over-allotment option ) and the private placements were in a trust account established for the benefit of the company 's public shareholders . our management has broad discretion with respect to the specific application of the net proceeds of ipo and the private placements , although substantially all of the net proceeds are intended to be applied generally towards consummating a business combination . results of operations our entire activity from inception up to october 25 , 2017 was related to the company 's formation , the ipo and general and administrative activities . since the ipo , our activity story_separator_special_tag 27 code of ethics we adopted a code of conduct and ethics applicable to our directors , officers and employees in accordance with applicable federal securities laws . the code of ethics codifies the business and ethical principles that govern all aspects of our business . section 16 ( a ) beneficial ownership reporting compliance section 16 ( a ) of the securities exchange act of 1934 , as amended , or the exchange act , requires our executive officers , directors and persons who beneficially own more than 10 % of a registered class of our equity securities to file with the securities and exchange commission initial reports of ownership and reports of changes in ownership of our ordinary shares and other equity securities . these executive officers , directors , and greater than 10 % beneficial owners are required by sec regulation to furnish us with copies of all section 16 ( a ) forms filed by such reporting persons . based solely on our review of such forms furnished to us and written representations from certain reporting persons , we believe that all filing requirements applicable to our executive officers , directors and greater than 10 % beneficial owners were filed in a timely manner . item 11. executive compensation employment agreements we have not entered into any employment agreements with our executive officers , and have not made any agreements to provide benefits upon termination of employment . executive officers and director compensation no executive officer has received any cash compensation for services rendered to us . no compensation of any kind , including finders , consulting or other similar fees , will be paid to any of our existing shareholders , including our directors , or any of their respective affiliates , prior to , or for any services they render in order to effectuate , the consummation of a business combination . however , such individuals will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations . there is no limit on the amount of these out-of-pocket expenses and there will be no review of the reasonableness of the expenses by anyone other than our board of directors and audit committee , which includes persons who may seek reimbursement , or a court of competent jurisdiction if such reimbursement is challenged . item 12. security ownership of certain beneficial owners and management and related shareholder matters story_separator_special_tag 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 report . certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we were formed on november 28 , 2016 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 target businesses . our efforts to identify a prospective target business will not be limited to any particular industry or geographic location . we have not selected any target business for our initial business combination . we presently have no revenue , have had losses since inception from incurring formation costs and have had no operations other than the active solicitation of a target business with which to complete a business combination . we have relied upon the sale of our securities and loans from our officers and directors to fund our operations . on october 30 , 2017 , we consummated our ipo of 18,000,000 units . each unit consists of one ordinary share , one-half of a redeemable public warrant and one right to receive 1/10 of an ordinary share upon the consummation of our initial business combination . the units were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 180,000,000. the company granted the underwriters a 45-day option to purchase up to 2,700,000 additional units to cover over-allotments , if any . on october 30 , 2017 , simultaneously with the consummation of the ipo , we consummated a private placement with our sponsor of 475,000 private units at a price of $ 10.00 per private unit , generating total proceeds of $ 4,750,000. the underwriters exercised the over-allotment option in part and , on november 3 , 2017 , the underwriters purchased 2,636,293 over-allotment option units , which were sold at an offering price of $ 10.00 per unit , generating gross proceeds of $ 26,362,930. on november 3 , 2017 , simultaneously with the sale of the over-allotment units , the company consummated the private sale of an additional 52,726 private units to our sponsor , generating gross proceeds of $ 527,260. on november 3 , 2017 , the underwriters canceled the remainder of the over-allotment option . in connection with the cancellation of the remainder of the over-allotment option , the company canceled an aggregate of 15,927 ordinary shares issued to our sponsor prior to the ipo and private placement . as of december 31 , 2017 , a total of $ 206,362,930 of the net proceeds from the ipo ( including the partial exercise of the over-allotment option ) and the private placements were in a trust account established for the benefit of the company 's public shareholders . our management has broad discretion with respect to the specific application of the net proceeds of ipo and the private placements , although substantially all of the net proceeds are intended to be applied generally towards consummating a business combination . results of operations our entire activity from inception up to october 25 , 2017 was related to the company 's formation , the ipo and general and administrative activities . since the ipo , our activity

our primary sources of revenue are interest and fee income from our loan products , of which interest and fees relating to installment loans and automobile purchase loans have historically been the largest component . in 2009 , we introduced retail purchase loans and expanded our automobile purchase loans to offer loans through online credit application networks . in addition to interest and fee income from loans , we derive revenue from insurance products sold to customers of our direct loan products . revision to financial statements . during 2013 , the company completed the implementation of internal controls over financial reporting as required by the sarbanes-oxley act of 2002. in connection with that work and as reported in november 2013 , the company discovered that its accounting for state franchise taxes was incorrect . further , as the company completed the close of its year-end accounting , it identified other errors related to interest income , insurance premiums , compensated absences , and income taxes . collectively , the errors result in an overstatement of net income for the years ended december 31 , 2010 through december 31 , 2012. the company considered both the quantitative and qualitative factors within the provisions of the securities and exchange commission staff accounting bulletin no . 99 , materiality , and staff accounting bulletin no . 108 , considering the effects of prior year misstatements when quantifying misstatements in current year financial statements . based on this evaluation , the company concluded that the errors were immaterial to the previously issued financial statements and those financial statements can continue to be relied upon . therefore , the company has made immaterial corrections to its previously filed financial statements included in this annual report on form 10-k filing to reflect the corrections in the proper period . future filings that include prior periods will be revised , as needed , when filed . factors affecting our results of operations our business is driven by several factors affecting our revenues , costs , and results of operations , including the following : growth in loan portfolio . the revenue that we derive from interest and fees from our loan products is largely driven by the amount of loans that we originate . we originated or purchased approximately 172,900 , 120,900 , and 67,300 new loan accounts during 2013 , 2012 , and 2011 , respectively . average finance receivables grew 22.1 % from $ 216.5 million in 2010 to $ 264.5 million in 2011 , grew 36.5 % to $ 361.1 million in 2012 , and grew 32.2 % to $ 477.4 million in 2013. we source our loans through our branches and our direct mail program , as well as through automobile dealerships and retailers that partner with us . our loans are made almost exclusively in geographic markets served by our network of branches . increasing the number of branches we operate allows us to increase the number of loans that we are able to service . we opened or acquired 43 , 51 , and 36 new branches in 2013 , 2012 , and 2011 , respectively . we believe we have the opportunity to add as many as 800 additional branches over time in the states where it is currently favorable for us to conduct business , and we have plans to continue to grow our branch network . product mix . we offer a number of different loan products , including small installment loans , large installment loans , automobile purchase loans , and retail purchase loans . we charge different interest rates and fees and are exposed to different credit risks with respect to the various types of loans we offer . for example , in recent years , we have sought to increase our product diversification by growing our automobile purchase and retail purchase loans , which have lower interest rates and fees than our small installment loans but have historically had lower charge-off rates . our product mix also varies to some extent by state , and we expect to continue to diversify our product mix in the future . 47 asset quality . our results of operations are highly dependent upon the quality of our asset portfolio . we recorded a $ 39.2 million provision for credit losses during 2013 ( or 8.2 % as a percentage of average finance receivables ) , a $ 27.8 million provision for credit losses during 2012 ( or 7.7 % as a percentage of average finance receivables ) , and a $ 17.9 million provision for credit losses during 2011 ( or 6.8 % as a percentage of average finance receivables ) . the quality of our asset portfolio is the result of our ability to enforce sound underwriting standards , maintain diligent portfolio oversight , and respond to changing economic conditions as we grow our loan portfolio . allowance for credit losses . we evaluate losses in each of our four categories of loans in establishing the allowance for credit losses . the following table sets forth our allowance for credit losses compared to the related finance receivables as of december 31 , 2013 and december 31 , 2012 : replace_table_token_14_th the allowance for credit losses as of december 31 , 2013 uses the net charge-off rate for the most recent six months ( small installment loans ) , ten months ( large installment loans ) , twelve months ( automobile purchase loans ) , and eleven months ( retail purchase loans ) as a percentage of the most recent month-end balance of loans as a key data point in estimating the allowance . we believe that the primary underlying factor driving the provision for credit losses for each of these loan types is the same : general economic conditions in the areas in which we conduct business . story_separator_special_tag occupancy expenses increased $ 3.0 million , or 34.5 % , to $ 11.6 million in 2013 from $ 8.7 million in 2012. the increase in occupancy expenses is the result of 43 additional branches at december 31 , 2013 , compared to december 31 , 2012 , phone system costs , and upgraded communication lines . additionally , we frequently experience increases in rent as we renew existing leases . marketing . marketing expenses increased $ 1.2 million , or 43.8 % , to $ 4.0 million in 2013 from $ 2.8 million in 2012. the increase was due to the increases in our direct mail campaigns consistent with our 2013 marketing plan . other expenses . other expenses increased $ 4.9 million , or 46.1 % , to $ 15.6 million in 2013 from $ 10.6 million in 2012. the increase was primarily due to the $ 2.0 million of one-time expenses related to director compensation and the secondary offerings , in addition to costs associated with the addition of 43 new branches since 2012 and other costs associated with being a public company . interest expense . interest expense on the senior revolving credit facility and other debt increased $ 3.6 million , or 33.7 % , to $ 14.1 million in 2013 from $ 10.6 million in 2012. this increase was due primarily to the increase in the average balance of our senior revolving credit facility . the average cost of our senior revolving credit facility decreased by 3 basis points from 4.54 % for the year ended december 31 , 2012 to 4.51 % for the year ended december 31 , 2013. the difference was due primarily to the mix between our libor-based portion of the loan and the prime interest rate portion of the loan . this was offset by an increase due to a rise in our unused line fees . consulting and advisory fees . the consulting and advisory fees paid to related parties terminated with the closing of the initial public offering . income taxes . income taxes increased $ 2.9 million , or 19.9 % , to $ 17.5 million in 2013 from $ 14.6 million in 2012. the increase in income taxes was due to an increase in our net income before taxes . the effective tax rate increased 71 basis points to 37.75 % in 2013 from 37.04 % in 2012. the increase in the effective tax rate was primarily due to the non-deductibility of stock offering expenses and a reduction in the small insurance company income exclusion . comparison of the year ended december 31 , 2012 , versus the year ended december 31 , 2011 net income and revenue . gaap net income increased $ 3.7 million , or 17.6 % , to $ 24.8 million in 2012 , from $ 21.0 million in 2011. on a pro forma basis , excluding one-time initial public offering expenses and applying the proceeds from the offering to reduce outstanding debt , net income for 2012 was $ 26.4 million , a 25.5 % increase from the prior year . total revenues increased $ 30.4 million during 2012 , a 28.8 % increase over 2011. the increase in 2012 revenues and net income is attributable to strong loan growth in existing branches , combined with the opening of 32 additional branches and the acquisition of 19 net new branches in alabama . interest and fee income . interest and fee income increased $ 27.5 million , or 30.1 % , to $ 119.0 million in 2012 , from $ 91.5 million in 2011. the increase in interest and fee income was due primarily to a 36.5 % increase in average finance receivables during the year , offset by a decrease in the average yield on loans from 34.6 % to 33.0 % . the following table sets forth the average finance receivables balance and average yield for each of our loan product categories for 2012 compared to 2011 ( dollars in thousands ) : replace_table_token_23_th 55 the following is a discussion of the changes by product type : small installment loans – small installment loans ( loans with an original principal balance of $ 2,500 or less ) outstanding increased by $ 58.4 million , or 44.8 % , to $ 188.6 million at december 31 , 2012 , from $ 130.2 million at december 31 , 2011. our direct mail campaigns drove significant loan growth in existing and new branches . customers with higher credit scores were offered lower rates which reduced the yield late in the year . in addition , the growth in receivables at the new branches opened in 2012 contributed to the growth in overall small installment loans outstanding . large installment loans – large installment loans outstanding increased by $ 17.4 million , or 50.2 % , to $ 52.0 million at december 31 , 2012 , from $ 34.6 million at december 31 , 2011. the increase is primarily due to the acquisition of assets from two consumer loan companies in alabama . automobile purchase loans – automobile purchase loans outstanding increased by $ 37.0 million , or 28.1 % , to $ 168.6 million at december 31 , 2012 , from $ 131.7 million at december 31 , 2011. the increase in automobile purchase loans outstanding was principally due to our increased emphasis on such loans , including our initiatives relating to indirect lending through our autocredit source branches . the addition in recent years of indirect lending at a lower interest rate has slightly lowered the overall yield of our automobile purchase loan category . retail purchase loans – retail purchase loans outstanding increased $ 19.4 million , or 178.0 % , to $ 30.3 million at december 31 , 2012 , from $ 10.9 million at december 31 , 2011. the increase in retail purchase loans outstanding resulted from the additional relationships we established with new retailers , as

liquidity and capital resources our primary cash needs relate to the funding of our lending activities and , to a lesser extent , capital expenditures relating to expanding and maintaining our branch locations . in connection with our plans to expand our branch network in future years , we will incur approximately $ 2.0 million to $ 4.0 million of capital expenditures annually . we have historically financed , and plan to continue to finance , our short-term and long-term operating liquidity and capital needs through a combination of cash flows from operations and borrowings under our senior revolving credit facility . as a holding company , almost all of the funds generated from our operations are earned by our operating subsidiaries . in addition , our wholly-owned subsidiary , rmc reinsurance ltd. , is required to maintain cash 57 reserves against life insurance policies ceded to it , as determined by the ceding company , and has also purchased a cash-collateralized letter of credit in favor of the ceding company . as of december 31 , 2013 , these reserve requirements totaled $ 1.9 million . additionally , we had a reserve for life insurance claims on our balance sheet of $ 226,000 , as determined by the third party , unrelated ceding company . cash flow . operating activities . net cash provided by operating activities increased by $ 14.9 million , or 25.8 % , to $ 72.6 million in 2013 from $ 57.7 million in 2012. the increase was primarily due to higher profitability due to growth in the business . net cash provided by operating activities increased by $ 16.2 million , or 39.1 % , to $ 57.7 million in 2012 from $ 41.5 million in 2011. the increase was primarily due to higher profitability due to growth in the business . investing activities . investing activities consist of finance receivables originated and purchased , net change in restricted cash , and the purchase of furniture and equipment for new and existing branches . net cash used in investing activities for 2013 was $ 142.6 million compared to $ 159.0 million in 2012 , a net decrease of $ 16.4 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary cash needs relate to the funding of our lending activities and , to a lesser extent , capital expenditures relating to expanding and maintaining our branch locations . in connection with our plans to expand our branch network in future years , we will incur approximately $ 2.0 million to $ 4.0 million of capital expenditures annually . we have historically financed , and plan to continue to finance , our short-term and long-term operating liquidity and capital needs through a combination of cash flows from operations and borrowings under our senior revolving credit facility . as a holding company , almost all of the funds generated from our operations are earned by our operating subsidiaries . in addition , our wholly-owned subsidiary , rmc reinsurance ltd. , is required to maintain cash 57 reserves against life insurance policies ceded to it , as determined by the ceding company , and has also purchased a cash-collateralized letter of credit in favor of the ceding company . as of december 31 , 2013 , these reserve requirements totaled $ 1.9 million . additionally , we had a reserve for life insurance claims on our balance sheet of $ 226,000 , as determined by the third party , unrelated ceding company . cash flow . operating activities . net cash provided by operating activities increased by $ 14.9 million , or 25.8 % , to $ 72.6 million in 2013 from $ 57.7 million in 2012. the increase was primarily due to higher profitability due to growth in the business . net cash provided by operating activities increased by $ 16.2 million , or 39.1 % , to $ 57.7 million in 2012 from $ 41.5 million in 2011. the increase was primarily due to higher profitability due to growth in the business . investing activities . investing activities consist of finance receivables originated and purchased , net change in restricted cash , and the purchase of furniture and equipment for new and existing branches . net cash used in investing activities for 2013 was $ 142.6 million compared to $ 159.0 million in 2012 , a net decrease of $ 16.4 million . ``` Suspicious Activity Report : our primary sources of revenue are interest and fee income from our loan products , of which interest and fees relating to installment loans and automobile purchase loans have historically been the largest component . in 2009 , we introduced retail purchase loans and expanded our automobile purchase loans to offer loans through online credit application networks . in addition to interest and fee income from loans , we derive revenue from insurance products sold to customers of our direct loan products . revision to financial statements . during 2013 , the company completed the implementation of internal controls over financial reporting as required by the sarbanes-oxley act of 2002. in connection with that work and as reported in november 2013 , the company discovered that its accounting for state franchise taxes was incorrect . further , as the company completed the close of its year-end accounting , it identified other errors related to interest income , insurance premiums , compensated absences , and income taxes . collectively , the errors result in an overstatement of net income for the years ended december 31 , 2010 through december 31 , 2012. the company considered both the quantitative and qualitative factors within the provisions of the securities and exchange commission staff accounting bulletin no . 99 , materiality , and staff accounting bulletin no . 108 , considering the effects of prior year misstatements when quantifying misstatements in current year financial statements . based on this evaluation , the company concluded that the errors were immaterial to the previously issued financial statements and those financial statements can continue to be relied upon . therefore , the company has made immaterial corrections to its previously filed financial statements included in this annual report on form 10-k filing to reflect the corrections in the proper period . future filings that include prior periods will be revised , as needed , when filed . factors affecting our results of operations our business is driven by several factors affecting our revenues , costs , and results of operations , including the following : growth in loan portfolio . the revenue that we derive from interest and fees from our loan products is largely driven by the amount of loans that we originate . we originated or purchased approximately 172,900 , 120,900 , and 67,300 new loan accounts during 2013 , 2012 , and 2011 , respectively . average finance receivables grew 22.1 % from $ 216.5 million in 2010 to $ 264.5 million in 2011 , grew 36.5 % to $ 361.1 million in 2012 , and grew 32.2 % to $ 477.4 million in 2013. we source our loans through our branches and our direct mail program , as well as through automobile dealerships and retailers that partner with us . our loans are made almost exclusively in geographic markets served by our network of branches . increasing the number of branches we operate allows us to increase the number of loans that we are able to service . we opened or acquired 43 , 51 , and 36 new branches in 2013 , 2012 , and 2011 , respectively . we believe we have the opportunity to add as many as 800 additional branches over time in the states where it is currently favorable for us to conduct business , and we have plans to continue to grow our branch network . product mix . we offer a number of different loan products , including small installment loans , large installment loans , automobile purchase loans , and retail purchase loans . we charge different interest rates and fees and are exposed to different credit risks with respect to the various types of loans we offer . for example , in recent years , we have sought to increase our product diversification by growing our automobile purchase and retail purchase loans , which have lower interest rates and fees than our small installment loans but have historically had lower charge-off rates . our product mix also varies to some extent by state , and we expect to continue to diversify our product mix in the future . 47 asset quality . our results of operations are highly dependent upon the quality of our asset portfolio . we recorded a $ 39.2 million provision for credit losses during 2013 ( or 8.2 % as a percentage of average finance receivables ) , a $ 27.8 million provision for credit losses during 2012 ( or 7.7 % as a percentage of average finance receivables ) , and a $ 17.9 million provision for credit losses during 2011 ( or 6.8 % as a percentage of average finance receivables ) . the quality of our asset portfolio is the result of our ability to enforce sound underwriting standards , maintain diligent portfolio oversight , and respond to changing economic conditions as we grow our loan portfolio . allowance for credit losses . we evaluate losses in each of our four categories of loans in establishing the allowance for credit losses . the following table sets forth our allowance for credit losses compared to the related finance receivables as of december 31 , 2013 and december 31 , 2012 : replace_table_token_14_th the allowance for credit losses as of december 31 , 2013 uses the net charge-off rate for the most recent six months ( small installment loans ) , ten months ( large installment loans ) , twelve months ( automobile purchase loans ) , and eleven months ( retail purchase loans ) as a percentage of the most recent month-end balance of loans as a key data point in estimating the allowance . we believe that the primary underlying factor driving the provision for credit losses for each of these loan types is the same : general economic conditions in the areas in which we conduct business . story_separator_special_tag occupancy expenses increased $ 3.0 million , or 34.5 % , to $ 11.6 million in 2013 from $ 8.7 million in 2012. the increase in occupancy expenses is the result of 43 additional branches at december 31 , 2013 , compared to december 31 , 2012 , phone system costs , and upgraded communication lines . additionally , we frequently experience increases in rent as we renew existing leases . marketing . marketing expenses increased $ 1.2 million , or 43.8 % , to $ 4.0 million in 2013 from $ 2.8 million in 2012. the increase was due to the increases in our direct mail campaigns consistent with our 2013 marketing plan . other expenses . other expenses increased $ 4.9 million , or 46.1 % , to $ 15.6 million in 2013 from $ 10.6 million in 2012. the increase was primarily due to the $ 2.0 million of one-time expenses related to director compensation and the secondary offerings , in addition to costs associated with the addition of 43 new branches since 2012 and other costs associated with being a public company . interest expense . interest expense on the senior revolving credit facility and other debt increased $ 3.6 million , or 33.7 % , to $ 14.1 million in 2013 from $ 10.6 million in 2012. this increase was due primarily to the increase in the average balance of our senior revolving credit facility . the average cost of our senior revolving credit facility decreased by 3 basis points from 4.54 % for the year ended december 31 , 2012 to 4.51 % for the year ended december 31 , 2013. the difference was due primarily to the mix between our libor-based portion of the loan and the prime interest rate portion of the loan . this was offset by an increase due to a rise in our unused line fees . consulting and advisory fees . the consulting and advisory fees paid to related parties terminated with the closing of the initial public offering . income taxes . income taxes increased $ 2.9 million , or 19.9 % , to $ 17.5 million in 2013 from $ 14.6 million in 2012. the increase in income taxes was due to an increase in our net income before taxes . the effective tax rate increased 71 basis points to 37.75 % in 2013 from 37.04 % in 2012. the increase in the effective tax rate was primarily due to the non-deductibility of stock offering expenses and a reduction in the small insurance company income exclusion . comparison of the year ended december 31 , 2012 , versus the year ended december 31 , 2011 net income and revenue . gaap net income increased $ 3.7 million , or 17.6 % , to $ 24.8 million in 2012 , from $ 21.0 million in 2011. on a pro forma basis , excluding one-time initial public offering expenses and applying the proceeds from the offering to reduce outstanding debt , net income for 2012 was $ 26.4 million , a 25.5 % increase from the prior year . total revenues increased $ 30.4 million during 2012 , a 28.8 % increase over 2011. the increase in 2012 revenues and net income is attributable to strong loan growth in existing branches , combined with the opening of 32 additional branches and the acquisition of 19 net new branches in alabama . interest and fee income . interest and fee income increased $ 27.5 million , or 30.1 % , to $ 119.0 million in 2012 , from $ 91.5 million in 2011. the increase in interest and fee income was due primarily to a 36.5 % increase in average finance receivables during the year , offset by a decrease in the average yield on loans from 34.6 % to 33.0 % . the following table sets forth the average finance receivables balance and average yield for each of our loan product categories for 2012 compared to 2011 ( dollars in thousands ) : replace_table_token_23_th 55 the following is a discussion of the changes by product type : small installment loans – small installment loans ( loans with an original principal balance of $ 2,500 or less ) outstanding increased by $ 58.4 million , or 44.8 % , to $ 188.6 million at december 31 , 2012 , from $ 130.2 million at december 31 , 2011. our direct mail campaigns drove significant loan growth in existing and new branches . customers with higher credit scores were offered lower rates which reduced the yield late in the year . in addition , the growth in receivables at the new branches opened in 2012 contributed to the growth in overall small installment loans outstanding . large installment loans – large installment loans outstanding increased by $ 17.4 million , or 50.2 % , to $ 52.0 million at december 31 , 2012 , from $ 34.6 million at december 31 , 2011. the increase is primarily due to the acquisition of assets from two consumer loan companies in alabama . automobile purchase loans – automobile purchase loans outstanding increased by $ 37.0 million , or 28.1 % , to $ 168.6 million at december 31 , 2012 , from $ 131.7 million at december 31 , 2011. the increase in automobile purchase loans outstanding was principally due to our increased emphasis on such loans , including our initiatives relating to indirect lending through our autocredit source branches . the addition in recent years of indirect lending at a lower interest rate has slightly lowered the overall yield of our automobile purchase loan category . retail purchase loans – retail purchase loans outstanding increased $ 19.4 million , or 178.0 % , to $ 30.3 million at december 31 , 2012 , from $ 10.9 million at december 31 , 2011. the increase in retail purchase loans outstanding resulted from the additional relationships we established with new retailers , as

the effective income tax rate for 2019 was lower than 2018 , primarily due to ( i ) suspension of the non-deductible patient protection and affordable care act health insurer fee ( “ hif ” ) fees in 2019 , and ( ii ) an increased relative impact in 2018 of the permanent differences for hif fees and executive compensation as a result of reduced earnings . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2015 expired during 2019. as a result , $ 3.5 million of tax contingency reserves recorded as of december 31 , 2018 were reversed in 2019 , of which $ 2.8 million was reflected as a reduction to income tax expense and $ 0.7 million as a decrease to deferred tax assets . additionally , $ 0.3 million of accrued interest was reversed in 2019 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2014 expired during 2018. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2017 were reversed in 2018 , of which $ 2.4 million was reflected as a reduction to income tax expense and $ 0.6 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2018 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . 2018 compared to 2017 net revenue , cost of care , cost of goods sold , and direct service costs and other operating expenses net revenue , cost of care , cost of goods sold , and direct service costs and other operating expense variances are addressed within the segment results that follow . depreciation and amortization depreciation and amortization expense increased by 14.7 percent or $ 17.0 million from 2017 to 2018 , primarily due to asset additions after 2017 and acquisition activity . interest expense interest expense increased by $ 9.4 million from 2017 to 2018 mainly due to an increase in interest rates and the amount of outstanding debt . interest and other income interest and other income increased by $ 8.2 million from 2017 to 2018 primarily due to higher yields and invested balances . income taxes the company 's effective income tax rate was 18.6 percent in 2017 and 44.0 percent in 2018. these rates differ from the applicable federal statutory income tax rate for each year primarily due to state income taxes , remeasurement of deferred tax balances in 2017 due to the tax act , permanent differences between book and tax income , and changes to the valuation allowances . the company also accrues interest and penalties related to uncertain tax positions in its provision for income taxes . although the federal statutory rate was reduced under the tax act from 35 % in 2017 to 21 % in 2018 , the effective income tax rate for 2018 was higher than 2017 , primarily due to ( i ) suspension of the non-deductible patient protection and affordable care act health insurer fee ( “ hif ” ) fees in 2017 , ( ii ) a significant reversal 35 of valuation allowances in 2017 for the alphacare net operating loss carryforwards ( “ nols ” ) , ( iii ) remeasurement of deferred tax balances in 2017 as a result of the tax act , ( iv ) a significant increase in the amount of non-deductible executive compensation in 2018 as a result of the tax act , and ( v ) an increased relative impact in 2018 of the permanent differences for non-deductible hif fees and non-deductible executive compensation as a result of reduced earnings . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2014 expired during 2018. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2017 were reversed in 2018 , of which $ 2.4 million was reflected as a reduction to income tax expense and $ 0.6 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2018 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2013 expired during 2017. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2016 were reversed in 2017 , of which $ 2.0 million was reflected as a reduction to income tax expense and $ 1.0 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2017 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . segment results the company manages and measures operational performance through three segments : healthcare , pharmacy management and corporate . the company evaluates performance of its segments based on segment profit . management uses segment profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources , risk assessment and employee compensation , among other matters . stock compensation expense and changes in fair value of contingent consideration recorded in relation to acquisitions are included in direct service costs and other operating expenses ; however , these amounts are excluded from the computation of segment profit . story_separator_special_tag based on the amount of cash equivalents and investments and the borrowing levels under the 2017 credit agreement and the principal amount of the notes as of december 31 , 2019 , a hypothetical 10 percent increase or decrease in the interest rate associated with these instruments , with all other variables held constant , would not materially affect the company 's future earnings and cash outflows . historical—liquidity and capital resources 2019 compared to 2018 operating activities . the company reported net cash provided by operating activities of $ 164.8 million and $ 115.8 million for 2018 and 2019 , respectively . the $ 49.0 million decrease in operating cash flows from 2018 is mainly attributable to unfavorable working capital changes , partially offset by lower tax payments and higher segment profit . the net unfavorable impact of working capital changes between periods totaled $ 114.7 million . for 2018 , operating cash flows were impacted by net unfavorable working capital changes of $ 3.0 million , mainly attributable to an increase in accounts receivables partially offset by an increase in payables . for 2019 , operating cash flows were impacted by net unfavorable working capital changes of $ 117.7 million , mainly attributable to the timing of receivables and payables . tax payments for 2019 decreased $ 35.4 million from 2018. interest payments for 2019 decreased $ 4.3 million from 2018. segment profit for 2019 increased $ 24.7 million from 2018. investing activities . the company utilized $ 68.3 million and $ 60.4 million during 2018 and 2019 , respectively , for capital expenditures . the additions related to hard assets ( equipment , furniture and leaseholds ) and capitalized software for 2018 were $ 26.3 million and $ 42.0 million , respectively , as compared to additions for 2019 related to hard assets and capitalized software of $ 15.8 million and $ 44.6 million , respectively . during 2018 the company used $ 59.2 million for the net purchase of `` available-for-sale `` securities . during 2019 the company received $ 41.6 million for the net maturity of `` available-for-sale `` securities . financing activities . during 2018 , the company paid $ 110.0 million on debt obligations , $ 62.6 million for the repurchase of treasury stock under the company 's share repurchase program , $ 12.2 million on finance lease obligations and had other net unfavorable items of $ 1.0 million . in addition , the company received $ 23.1 million from the exercise of stock options . during 2019 , the company paid $ 59.8 million on debt obligations , $ 6.2 million for payments on contingent consideration , $ 4.1 million for the repurchase of treasury stock under the company 's share repurchase program and $ 7.7 million on finance lease obligations . in addition , the company received $ 32.7 million from the exercise of stock options and had other net favorable items of $ 1.8 million . 2018 compared to 2017 operating activities . the company reported net cash provided by operating activities of $ 162.3 million and $ 164.8 million for 2017 and 2018 , respectively . the $ 2.5 million increase in operating cash flows from 2017 to 2018 is mainly attributable to favorable working capital changes and decreased tax payments between years , partially offset by a decrease in segment profit , increased interest payments between years and aca activity . ​ the net favorable impact of working capital changes between periods totaled $ 76.1 million . for 2017 , operating cash flows were impacted by net unfavorable working capital changes of $ 79.1 million , which were largely attributable 43 to timing related to receivables and payables . for 2018 , operating cash flows were impacted by net unfavorable working capital changes of $ 3.0 million , which were largely attributable to an increase in accounts receivable , partially offset by an increase in payables . ​ segment profit for 2018 decreased $ 82.9 million from 2017. tax payments for 2018 decreased $ 19.3 million from 2017. interest payments for 2018 increased by $ 18.8 million from 2017 . ​ investing activities . the company utilized $ 57.2 million and $ 68.3 million during 2017 and 2018 , respectively , for capital expenditures . the additions related to hard assets ( equipment , furniture and leaseholds ) and capitalized software for 2017 were $ 16.0 million and $ 41.2 million , respectively , as compared to additions for 2018 related to hard assets and capitalized software of $ 26.3 million and $ 42.0 million , respectively . during 2017 and 2018 the company used net cash of $ 26.8 million and $ 59.2 million for the net purchase of `` available-for-sale `` securities . during 2017 , the company used net cash of $ 232.4 million related to investments in businesses and the acquisition of veridicus and swh . during 2018 , the company used net cash of $ 1.0 million related to investments in businesses . financing activities . during 2017 , the company paid $ 798.1 million on debt obligations , $ 21.8 million for the repurchase of treasury stock under the company 's share repurchase program , $ 9.9 million in debt issuance fees , $ 5.3 million on finance lease obligations and had other net unfavorable items of $ 2.7 million . in addition , the company received $ 1,041.7 million from the issuance of debt and $ 44.4 million from the exercise of stock options . during 2018 , the company paid $ 110.0 million on debt obligations , $ 62.6 million for the repurchase of treasury stock under the company 's share repurchase program , $ 12.2 million on finance lease obligations and had other net unfavorable items of $ 1.0 million . in addition , the company received $ 23.1 million from the exercise of stock options . outlook—liquidity and capital resources story_separator_special_tag agreements see note 5— “ long-term debt

liquidity . the company may draw on the 2017 credit agreement as required to meet working capital needs associated with the timing of receivables and payables , fund share repurchases or support acquisition activities . the company currently expects to have adequate liquidity to satisfy its existing financial commitments over the periods in which they will become due . the company plans to maintain its current investment strategy of investing in a diversified , high quality , liquid portfolio of investments and continues to closely monitor the financial markets . the company estimates that it has no risk of any material permanent loss on its investment portfolio ; however , there can be no assurance the company will not experience any such losses in the future . contractual obligations and commitments the following table sets forth the future financial commitments of the company as of december 31 , 2019 ( in thousands ) : replace_table_token_11_th ( 1 ) operating lease obligations include estimated future lease payments for both open and closed offices . ( 2 ) these letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions . 44 ( 3 ) finance lease and deferred financing obligations include imputed interest of $ 1.9 million and are net of leasehold improvement allowances . ( 4 ) purchase commitments include open purchase orders as of december 31 , 2019 relating to ongoing capital expenditure and operational activities . ( 5 ) the company is unable to make a reasonably reliable estimate of the period of the cash settlement ( if any ) with the respective taxing authorities for these contingencies .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 company may draw on the 2017 credit agreement as required to meet working capital needs associated with the timing of receivables and payables , fund share repurchases or support acquisition activities . the company currently expects to have adequate liquidity to satisfy its existing financial commitments over the periods in which they will become due . the company plans to maintain its current investment strategy of investing in a diversified , high quality , liquid portfolio of investments and continues to closely monitor the financial markets . the company estimates that it has no risk of any material permanent loss on its investment portfolio ; however , there can be no assurance the company will not experience any such losses in the future . contractual obligations and commitments the following table sets forth the future financial commitments of the company as of december 31 , 2019 ( in thousands ) : replace_table_token_11_th ( 1 ) operating lease obligations include estimated future lease payments for both open and closed offices . ( 2 ) these letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions . 44 ( 3 ) finance lease and deferred financing obligations include imputed interest of $ 1.9 million and are net of leasehold improvement allowances . ( 4 ) purchase commitments include open purchase orders as of december 31 , 2019 relating to ongoing capital expenditure and operational activities . ( 5 ) the company is unable to make a reasonably reliable estimate of the period of the cash settlement ( if any ) with the respective taxing authorities for these contingencies . ``` Suspicious Activity Report : the effective income tax rate for 2019 was lower than 2018 , primarily due to ( i ) suspension of the non-deductible patient protection and affordable care act health insurer fee ( “ hif ” ) fees in 2019 , and ( ii ) an increased relative impact in 2018 of the permanent differences for hif fees and executive compensation as a result of reduced earnings . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2015 expired during 2019. as a result , $ 3.5 million of tax contingency reserves recorded as of december 31 , 2018 were reversed in 2019 , of which $ 2.8 million was reflected as a reduction to income tax expense and $ 0.7 million as a decrease to deferred tax assets . additionally , $ 0.3 million of accrued interest was reversed in 2019 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2014 expired during 2018. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2017 were reversed in 2018 , of which $ 2.4 million was reflected as a reduction to income tax expense and $ 0.6 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2018 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . 2018 compared to 2017 net revenue , cost of care , cost of goods sold , and direct service costs and other operating expenses net revenue , cost of care , cost of goods sold , and direct service costs and other operating expense variances are addressed within the segment results that follow . depreciation and amortization depreciation and amortization expense increased by 14.7 percent or $ 17.0 million from 2017 to 2018 , primarily due to asset additions after 2017 and acquisition activity . interest expense interest expense increased by $ 9.4 million from 2017 to 2018 mainly due to an increase in interest rates and the amount of outstanding debt . interest and other income interest and other income increased by $ 8.2 million from 2017 to 2018 primarily due to higher yields and invested balances . income taxes the company 's effective income tax rate was 18.6 percent in 2017 and 44.0 percent in 2018. these rates differ from the applicable federal statutory income tax rate for each year primarily due to state income taxes , remeasurement of deferred tax balances in 2017 due to the tax act , permanent differences between book and tax income , and changes to the valuation allowances . the company also accrues interest and penalties related to uncertain tax positions in its provision for income taxes . although the federal statutory rate was reduced under the tax act from 35 % in 2017 to 21 % in 2018 , the effective income tax rate for 2018 was higher than 2017 , primarily due to ( i ) suspension of the non-deductible patient protection and affordable care act health insurer fee ( “ hif ” ) fees in 2017 , ( ii ) a significant reversal 35 of valuation allowances in 2017 for the alphacare net operating loss carryforwards ( “ nols ” ) , ( iii ) remeasurement of deferred tax balances in 2017 as a result of the tax act , ( iv ) a significant increase in the amount of non-deductible executive compensation in 2018 as a result of the tax act , and ( v ) an increased relative impact in 2018 of the permanent differences for non-deductible hif fees and non-deductible executive compensation as a result of reduced earnings . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2014 expired during 2018. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2017 were reversed in 2018 , of which $ 2.4 million was reflected as a reduction to income tax expense and $ 0.6 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2018 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2013 expired during 2017. as a result , $ 3.0 million of tax contingency reserves recorded as of december 31 , 2016 were reversed in 2017 , of which $ 2.0 million was reflected as a reduction to income tax expense and $ 1.0 million as a decrease to deferred tax assets . additionally , $ 0.2 million of accrued interest was reversed in 2017 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments . segment results the company manages and measures operational performance through three segments : healthcare , pharmacy management and corporate . the company evaluates performance of its segments based on segment profit . management uses segment profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources , risk assessment and employee compensation , among other matters . stock compensation expense and changes in fair value of contingent consideration recorded in relation to acquisitions are included in direct service costs and other operating expenses ; however , these amounts are excluded from the computation of segment profit . story_separator_special_tag based on the amount of cash equivalents and investments and the borrowing levels under the 2017 credit agreement and the principal amount of the notes as of december 31 , 2019 , a hypothetical 10 percent increase or decrease in the interest rate associated with these instruments , with all other variables held constant , would not materially affect the company 's future earnings and cash outflows . historical—liquidity and capital resources 2019 compared to 2018 operating activities . the company reported net cash provided by operating activities of $ 164.8 million and $ 115.8 million for 2018 and 2019 , respectively . the $ 49.0 million decrease in operating cash flows from 2018 is mainly attributable to unfavorable working capital changes , partially offset by lower tax payments and higher segment profit . the net unfavorable impact of working capital changes between periods totaled $ 114.7 million . for 2018 , operating cash flows were impacted by net unfavorable working capital changes of $ 3.0 million , mainly attributable to an increase in accounts receivables partially offset by an increase in payables . for 2019 , operating cash flows were impacted by net unfavorable working capital changes of $ 117.7 million , mainly attributable to the timing of receivables and payables . tax payments for 2019 decreased $ 35.4 million from 2018. interest payments for 2019 decreased $ 4.3 million from 2018. segment profit for 2019 increased $ 24.7 million from 2018. investing activities . the company utilized $ 68.3 million and $ 60.4 million during 2018 and 2019 , respectively , for capital expenditures . the additions related to hard assets ( equipment , furniture and leaseholds ) and capitalized software for 2018 were $ 26.3 million and $ 42.0 million , respectively , as compared to additions for 2019 related to hard assets and capitalized software of $ 15.8 million and $ 44.6 million , respectively . during 2018 the company used $ 59.2 million for the net purchase of `` available-for-sale `` securities . during 2019 the company received $ 41.6 million for the net maturity of `` available-for-sale `` securities . financing activities . during 2018 , the company paid $ 110.0 million on debt obligations , $ 62.6 million for the repurchase of treasury stock under the company 's share repurchase program , $ 12.2 million on finance lease obligations and had other net unfavorable items of $ 1.0 million . in addition , the company received $ 23.1 million from the exercise of stock options . during 2019 , the company paid $ 59.8 million on debt obligations , $ 6.2 million for payments on contingent consideration , $ 4.1 million for the repurchase of treasury stock under the company 's share repurchase program and $ 7.7 million on finance lease obligations . in addition , the company received $ 32.7 million from the exercise of stock options and had other net favorable items of $ 1.8 million . 2018 compared to 2017 operating activities . the company reported net cash provided by operating activities of $ 162.3 million and $ 164.8 million for 2017 and 2018 , respectively . the $ 2.5 million increase in operating cash flows from 2017 to 2018 is mainly attributable to favorable working capital changes and decreased tax payments between years , partially offset by a decrease in segment profit , increased interest payments between years and aca activity . ​ the net favorable impact of working capital changes between periods totaled $ 76.1 million . for 2017 , operating cash flows were impacted by net unfavorable working capital changes of $ 79.1 million , which were largely attributable 43 to timing related to receivables and payables . for 2018 , operating cash flows were impacted by net unfavorable working capital changes of $ 3.0 million , which were largely attributable to an increase in accounts receivable , partially offset by an increase in payables . ​ segment profit for 2018 decreased $ 82.9 million from 2017. tax payments for 2018 decreased $ 19.3 million from 2017. interest payments for 2018 increased by $ 18.8 million from 2017 . ​ investing activities . the company utilized $ 57.2 million and $ 68.3 million during 2017 and 2018 , respectively , for capital expenditures . the additions related to hard assets ( equipment , furniture and leaseholds ) and capitalized software for 2017 were $ 16.0 million and $ 41.2 million , respectively , as compared to additions for 2018 related to hard assets and capitalized software of $ 26.3 million and $ 42.0 million , respectively . during 2017 and 2018 the company used net cash of $ 26.8 million and $ 59.2 million for the net purchase of `` available-for-sale `` securities . during 2017 , the company used net cash of $ 232.4 million related to investments in businesses and the acquisition of veridicus and swh . during 2018 , the company used net cash of $ 1.0 million related to investments in businesses . financing activities . during 2017 , the company paid $ 798.1 million on debt obligations , $ 21.8 million for the repurchase of treasury stock under the company 's share repurchase program , $ 9.9 million in debt issuance fees , $ 5.3 million on finance lease obligations and had other net unfavorable items of $ 2.7 million . in addition , the company received $ 1,041.7 million from the issuance of debt and $ 44.4 million from the exercise of stock options . during 2018 , the company paid $ 110.0 million on debt obligations , $ 62.6 million for the repurchase of treasury stock under the company 's share repurchase program , $ 12.2 million on finance lease obligations and had other net unfavorable items of $ 1.0 million . in addition , the company received $ 23.1 million from the exercise of stock options . outlook—liquidity and capital resources story_separator_special_tag agreements see note 5— “ long-term debt

in addition , on january 8 , 2016 , ibc hotels and the trust , purchased substantially all of the assets of international vacation hotels , a technology company located in dallas , texas which provides reservation services to over 600 independent international hotels . for more information about the acquisition of international vacation hotels , see note 27 of our consolidated financial statements - “ acquisition of international vacation hotels ” . 7 we are planning significant expansion of ibc hotels during the next couple of fiscal years as we concentrate our sales and marketing efforts towards consumers . we anticipate the ibc hotels sales and marketing efforts to increase our revenues and decrease our consolidated net loss over the next couple of fiscal years . for each reservation , ibc hotels receives a 10 % transactional fee plus reimbursement of our credit card processing fees associated with the reservation . we can not provide any assurance that our plans will be successful or in line with our expectations . throughout item 7 , we refer to continuing and discontinued operations . as discussed , our strategic plan is to no longer be in the business of owning and operating hotels . accordingly , all hotel properties that are currently held for sale have been included in the discontinued operations throughout the form 10-k. we have a single hotel property , yuma that is included in continuing operations until such time as it is in a condition for sale . we expect to have the property for sale by january 31 , 2017. general the following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this form 10-k. at january 31 , 2016 , we owned through our sole general partner 's interest in the partnership a direct 50.91 % interest in the albuquerque , new mexico hotel , and a 50.93 % direct interest in the yuma , arizona hotel . additionally , at january 31 , 2016 , we , together with the partnership , owned a 51.01 % interest in a hotel located in tucson , arizona and a 51.65 % interest in a hotel located in ontario , california . at january 31 , 2015 , we owned through our sole general partner 's interest in the partnership a 72.11 % interest in the tucson , arizona hotel , direct 50.82 % interest in the albuquerque , new mexico hotel , and a 73.61 % direct interest in the yuma , arizona hotel . additionally , at january 31 , 2015 , we , together with the partnership , owned a 51.01 % interest in another hotel located in tucson , arizona and a 51.71 % interest in a hotel located in ontario , california . we purchased 0 and 9,903 partnership class a units of our sole general partner interest during the years ended january 31 , 2016 and 2015 , respectively . on october 14 , 2015 , the trust sold its tucson st mary 's hotel to an unrelated third party for approximately $ 9.7 million . for more information about the disposition of the tucson st mary 's hotel , see note 24 of our consolidated financial statements - “ sale of tucson saint mary 's suite hospitality property ” . our expenses consist primarily of property taxes , insurance , corporate overhead , interest on mortgage debt , professional fees , depreciation of the hotels and hotel operating expenses . hotel operating expenses consist primarily of payroll , guest and maintenance supplies , marketing and utilities expenses . under the terms of its partnership agreement , the partnership is required to reimburse us for all such expenses . accordingly , management believes that a review of the historical performance of the operations of the hotels , particularly with respect to occupancy , which is calculated as rooms sold divided by total rooms available , average daily rate ( “ adr ” ) , calculated as total room revenue divided by number of rooms sold , and revenue per available room ( “ revpar ” ) , calculated as total room revenue divided by number of rooms available , is appropriate for understanding revenue from the hotels . in fiscal year 2016 , occupancy increased 10.2 % to 73.36 % from 63.16 % in the prior fiscal year . adr increased by $ 2.74 or 4.04 % to $ 70.59 in fiscal year 2016 from $ 67.85 in fiscal year 2015. the increased occupancy and adr resulted in a increase in revpar of $ 8.93 or 20.84 % to $ 51.79 in fiscal year 2016 from $ 42.86 in fiscal year 2015. the increased occupancy and increased rates reflect a continued stronger economy which has allowed us to increase our rates while increasing our occupancy . we anticipate in the next few fiscal years that steady demand will exist with a significant increase in hotel room supply resulting in additional pressure on the hotel industry to lower rates to maintain current occupancy levels . the following table shows certain historical financial and other information for the periods indicated : replace_table_token_4_th no assurance can be given that occupancy , adr and revpar will not increase or decrease as a result of changes in national or local economic or hospitality industry conditions . 8 we enter into transactions with certain related parties from time to time . for information relating to such related party transactions see the following : ● for a discussion of management and licensing agreements with certain related parties , see “ item 1 – business – management and licensing contracts . ” ● for a discussion of guarantees of our mortgage notes payable by certain related parties , see note 11 to our consolidated financial statements – “ mortgage notes payable . story_separator_special_tag 12 hospitality expense increased by approximately $ 29,000 , or 4 % , from $ 731,000 for the fiscal year ended january 31 , 2015 to approximately $ 760,000 for the fiscal year ended january 31 , 2016. the increase was primarily due to additional product mix provided during the hotels ' complimentary happy hour , increased occupancy and continued compliance with food and beverage requirements provided by best western . utility expenses decreased approximately $ 100,000 from approximately $ 1,129,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 1,029,000 for the fiscal year ended january 31 , 2016. we incurred decreased utility costs as a result of the sale of our tucson st. mary 's property . depreciation expense decreased approximately $ 612,000 from approximately $ 1,285,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 673,000 for the fiscal year ended january 31 , 2016. we incurred decreased deprecation expenses as a result of the sale of our tucson st. mary 's property and due to the accounting treatment of ceasing depreciation on our remaining discontinued operations hotel properties , which directly attributed to a year over year decrease of approximately $ 612,000. real estate and personal property taxes , insurance and ground rent expense decreased approximately $ 161,000 from approximately $ 831,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 670,000 for the fiscal year ended january 31 , 2016. these expenses decreased as a result of our sale of our tucson st. mary 's property . interest expenses were approximately $ 598,000 for the fiscal year ended january 31 , 2016 , an increase of approximately $ 62,000 from the prior fiscal year total of approximately $ 536,000. we continue to work with our lenders to refinance the property loans . during fiscal year 2017 , we anticipate interest expenses will decrease with the anticipated sale of additional hotel properties . story_separator_special_tag properties and our purchase of intangibles assets associated with our purchase of international vacation hotels in january 2016. net lending on advances to affiliates – related parties coupled with collections on advances to affiliates – related parties was approximately $ 971,000 during fiscal year 2016 as compared to approximately $ 1,000 during fiscal year 2015 , which decreased our net cash used in investing activities by approximately $ 1,956,000 during fiscal year 2016. net cash provided by financing activities totaled approximately $ 1,400,000 and $ 814,000 for the years ended january 31 , 2016 and 2015 , respectively . the increase of approximately $ 1,450,000 was primarily due to the sale of stock , net decrease of payments and borrowings on mortgage notes payable , notes payable to banks and line of credit – related party , note receivable – related party was offset by the decreased proceeds from the sale of non-controlling ownership interest in subsidiary . principal payments on mortgage notes payables was approximately $ 625,000 and approximately $ 2,153,000 during the fiscal year ended january 31 , 2016 and 2015 , respectively . during the fiscal year ended january 31 , 2015 , we paid off our $ 1.0 million mortgage on our albuquerque property which increased the amount of principal payments on mortgage notes payables paid . during fiscal year 2017 , we anticipate a reduction of principal payments on mortgage notes payables as our mortgages will be paid off with hotel sale proceeds . payments on notes payable to banks netted against borrowings on notes payable to banks were approximately $ 358,000 during the fiscal year ended january 31 , 2016 as compared to approximately ( $ 152,000 ) during the fiscal year ended january 31 , 2015. we do not anticipate refinancing any of our hotel properties in fiscal year 2017. for the fiscal year ended january 31 , 2016 , payments on line of credit – related party netted against borrowings on line of credit – related party was approximately ( $ 248,000 ) of net cash used in financing activities as compared to approximately $ 210,000 of net cash provided by financing activities for the fiscal year ended january 31 , 2015. for the fiscal year ended january 31 , 2016 , lendings on note receivable – related party netted against collections on note receivable – related party was approximately $ 299,000 of net cash used in financing activities . for the fiscal year ended january 31 , 2016 , payments and borrowings on other notes payable was approximately ( $ 471,000 ) of net cash used in financing activities and approximately $ 338,000 of net cash provided by financing activities during the fiscal year ended january 31 , 2015. during the fiscal year ended january 31 , 2016 , we continued to pay off american express merchant processing loans . proceeds from sales of non-controlling ownership interests in subsidiaries decreased by approximately $ 1,540,000 as sales of non-controlling ownership interest was approximately $ 3,339,000 for the year ended january 31 , 2015 and approximately $ 1,826,000 for the year ended january 31 , 2016. during the fiscal year ended january 31 , 2016 , we primarily sold additional non-controlling interests in our yuma hospitality and tucson saint mary 's suite hospitality subsidiaries . with an increase in the sales of non-controlling ownership interest in subsidiaries , an increase in distributions to non-controlling interest holders is expected . distributions to non-controlling interest holders for the fiscal year ending january 31 , 2016 were approximately $ 1,244,000 as compared to approximately $ 769,000 for the fiscal year ended january 31 , 2015. these distributions are an offset to the net cash provided by financing activities . 14 the trust repurchased additional treasury stock of approximately $ 92,000 during the fiscal year ended january 31 , 2016 compared with $ 220,000 for the prior fiscal year ended january 31 , 2015. additional purchases of treasury stock is an offset to the

liquidity and capital resources overview – hotel operations & corporate overhead and ibc development segments our principal source of cash to meet our cash requirements , including distributions to our shareholders , is our share of the partnership 's cash flow , quarterly distributions from the albuquerque , new mexico and yuma , arizona properties and more recently , sales of non-controlling interests in certain of our hotels . the partnership 's principal source of revenue is hotel operations for the one hotel property it owns ( until its planned sale – as discussed previously ) and quarterly distributions from the tucson , arizona and ontario , california properties . our liquidity , including our ability to make distributions to our shareholders , will depend upon our ability , and the partnership 's ability , to generate sufficient cash flow from hotel operations and to service our debt . hotel operations are significantly affected by occupancy and room rates at the hotels . we anticipate occupancy and adr will be steady during this coming year ; capital improvements are expected to be similar from the prior year . as of january 31 , 2016 , the trust did not have an open bank line of credit . with approximately $ 2.0 million of cash which includes approximately $ 200,000 from discontinued operations as of january 31 , 2016 and the availability of a $ 1,000,000 related party demand/revolving line of credit/promissory note , we believe that we will have enough cash on hand to meet all of our financial obligations as they become due for at least the next year .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources overview – hotel operations & corporate overhead and ibc development segments our principal source of cash to meet our cash requirements , including distributions to our shareholders , is our share of the partnership 's cash flow , quarterly distributions from the albuquerque , new mexico and yuma , arizona properties and more recently , sales of non-controlling interests in certain of our hotels . the partnership 's principal source of revenue is hotel operations for the one hotel property it owns ( until its planned sale – as discussed previously ) and quarterly distributions from the tucson , arizona and ontario , california properties . our liquidity , including our ability to make distributions to our shareholders , will depend upon our ability , and the partnership 's ability , to generate sufficient cash flow from hotel operations and to service our debt . hotel operations are significantly affected by occupancy and room rates at the hotels . we anticipate occupancy and adr will be steady during this coming year ; capital improvements are expected to be similar from the prior year . as of january 31 , 2016 , the trust did not have an open bank line of credit . with approximately $ 2.0 million of cash which includes approximately $ 200,000 from discontinued operations as of january 31 , 2016 and the availability of a $ 1,000,000 related party demand/revolving line of credit/promissory note , we believe that we will have enough cash on hand to meet all of our financial obligations as they become due for at least the next year . ``` Suspicious Activity Report : in addition , on january 8 , 2016 , ibc hotels and the trust , purchased substantially all of the assets of international vacation hotels , a technology company located in dallas , texas which provides reservation services to over 600 independent international hotels . for more information about the acquisition of international vacation hotels , see note 27 of our consolidated financial statements - “ acquisition of international vacation hotels ” . 7 we are planning significant expansion of ibc hotels during the next couple of fiscal years as we concentrate our sales and marketing efforts towards consumers . we anticipate the ibc hotels sales and marketing efforts to increase our revenues and decrease our consolidated net loss over the next couple of fiscal years . for each reservation , ibc hotels receives a 10 % transactional fee plus reimbursement of our credit card processing fees associated with the reservation . we can not provide any assurance that our plans will be successful or in line with our expectations . throughout item 7 , we refer to continuing and discontinued operations . as discussed , our strategic plan is to no longer be in the business of owning and operating hotels . accordingly , all hotel properties that are currently held for sale have been included in the discontinued operations throughout the form 10-k. we have a single hotel property , yuma that is included in continuing operations until such time as it is in a condition for sale . we expect to have the property for sale by january 31 , 2017. general the following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this form 10-k. at january 31 , 2016 , we owned through our sole general partner 's interest in the partnership a direct 50.91 % interest in the albuquerque , new mexico hotel , and a 50.93 % direct interest in the yuma , arizona hotel . additionally , at january 31 , 2016 , we , together with the partnership , owned a 51.01 % interest in a hotel located in tucson , arizona and a 51.65 % interest in a hotel located in ontario , california . at january 31 , 2015 , we owned through our sole general partner 's interest in the partnership a 72.11 % interest in the tucson , arizona hotel , direct 50.82 % interest in the albuquerque , new mexico hotel , and a 73.61 % direct interest in the yuma , arizona hotel . additionally , at january 31 , 2015 , we , together with the partnership , owned a 51.01 % interest in another hotel located in tucson , arizona and a 51.71 % interest in a hotel located in ontario , california . we purchased 0 and 9,903 partnership class a units of our sole general partner interest during the years ended january 31 , 2016 and 2015 , respectively . on october 14 , 2015 , the trust sold its tucson st mary 's hotel to an unrelated third party for approximately $ 9.7 million . for more information about the disposition of the tucson st mary 's hotel , see note 24 of our consolidated financial statements - “ sale of tucson saint mary 's suite hospitality property ” . our expenses consist primarily of property taxes , insurance , corporate overhead , interest on mortgage debt , professional fees , depreciation of the hotels and hotel operating expenses . hotel operating expenses consist primarily of payroll , guest and maintenance supplies , marketing and utilities expenses . under the terms of its partnership agreement , the partnership is required to reimburse us for all such expenses . accordingly , management believes that a review of the historical performance of the operations of the hotels , particularly with respect to occupancy , which is calculated as rooms sold divided by total rooms available , average daily rate ( “ adr ” ) , calculated as total room revenue divided by number of rooms sold , and revenue per available room ( “ revpar ” ) , calculated as total room revenue divided by number of rooms available , is appropriate for understanding revenue from the hotels . in fiscal year 2016 , occupancy increased 10.2 % to 73.36 % from 63.16 % in the prior fiscal year . adr increased by $ 2.74 or 4.04 % to $ 70.59 in fiscal year 2016 from $ 67.85 in fiscal year 2015. the increased occupancy and adr resulted in a increase in revpar of $ 8.93 or 20.84 % to $ 51.79 in fiscal year 2016 from $ 42.86 in fiscal year 2015. the increased occupancy and increased rates reflect a continued stronger economy which has allowed us to increase our rates while increasing our occupancy . we anticipate in the next few fiscal years that steady demand will exist with a significant increase in hotel room supply resulting in additional pressure on the hotel industry to lower rates to maintain current occupancy levels . the following table shows certain historical financial and other information for the periods indicated : replace_table_token_4_th no assurance can be given that occupancy , adr and revpar will not increase or decrease as a result of changes in national or local economic or hospitality industry conditions . 8 we enter into transactions with certain related parties from time to time . for information relating to such related party transactions see the following : ● for a discussion of management and licensing agreements with certain related parties , see “ item 1 – business – management and licensing contracts . ” ● for a discussion of guarantees of our mortgage notes payable by certain related parties , see note 11 to our consolidated financial statements – “ mortgage notes payable . story_separator_special_tag 12 hospitality expense increased by approximately $ 29,000 , or 4 % , from $ 731,000 for the fiscal year ended january 31 , 2015 to approximately $ 760,000 for the fiscal year ended january 31 , 2016. the increase was primarily due to additional product mix provided during the hotels ' complimentary happy hour , increased occupancy and continued compliance with food and beverage requirements provided by best western . utility expenses decreased approximately $ 100,000 from approximately $ 1,129,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 1,029,000 for the fiscal year ended january 31 , 2016. we incurred decreased utility costs as a result of the sale of our tucson st. mary 's property . depreciation expense decreased approximately $ 612,000 from approximately $ 1,285,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 673,000 for the fiscal year ended january 31 , 2016. we incurred decreased deprecation expenses as a result of the sale of our tucson st. mary 's property and due to the accounting treatment of ceasing depreciation on our remaining discontinued operations hotel properties , which directly attributed to a year over year decrease of approximately $ 612,000. real estate and personal property taxes , insurance and ground rent expense decreased approximately $ 161,000 from approximately $ 831,000 reported for the fiscal year ended january 31 , 2015 compared with approximately $ 670,000 for the fiscal year ended january 31 , 2016. these expenses decreased as a result of our sale of our tucson st. mary 's property . interest expenses were approximately $ 598,000 for the fiscal year ended january 31 , 2016 , an increase of approximately $ 62,000 from the prior fiscal year total of approximately $ 536,000. we continue to work with our lenders to refinance the property loans . during fiscal year 2017 , we anticipate interest expenses will decrease with the anticipated sale of additional hotel properties . story_separator_special_tag properties and our purchase of intangibles assets associated with our purchase of international vacation hotels in january 2016. net lending on advances to affiliates – related parties coupled with collections on advances to affiliates – related parties was approximately $ 971,000 during fiscal year 2016 as compared to approximately $ 1,000 during fiscal year 2015 , which decreased our net cash used in investing activities by approximately $ 1,956,000 during fiscal year 2016. net cash provided by financing activities totaled approximately $ 1,400,000 and $ 814,000 for the years ended january 31 , 2016 and 2015 , respectively . the increase of approximately $ 1,450,000 was primarily due to the sale of stock , net decrease of payments and borrowings on mortgage notes payable , notes payable to banks and line of credit – related party , note receivable – related party was offset by the decreased proceeds from the sale of non-controlling ownership interest in subsidiary . principal payments on mortgage notes payables was approximately $ 625,000 and approximately $ 2,153,000 during the fiscal year ended january 31 , 2016 and 2015 , respectively . during the fiscal year ended january 31 , 2015 , we paid off our $ 1.0 million mortgage on our albuquerque property which increased the amount of principal payments on mortgage notes payables paid . during fiscal year 2017 , we anticipate a reduction of principal payments on mortgage notes payables as our mortgages will be paid off with hotel sale proceeds . payments on notes payable to banks netted against borrowings on notes payable to banks were approximately $ 358,000 during the fiscal year ended january 31 , 2016 as compared to approximately ( $ 152,000 ) during the fiscal year ended january 31 , 2015. we do not anticipate refinancing any of our hotel properties in fiscal year 2017. for the fiscal year ended january 31 , 2016 , payments on line of credit – related party netted against borrowings on line of credit – related party was approximately ( $ 248,000 ) of net cash used in financing activities as compared to approximately $ 210,000 of net cash provided by financing activities for the fiscal year ended january 31 , 2015. for the fiscal year ended january 31 , 2016 , lendings on note receivable – related party netted against collections on note receivable – related party was approximately $ 299,000 of net cash used in financing activities . for the fiscal year ended january 31 , 2016 , payments and borrowings on other notes payable was approximately ( $ 471,000 ) of net cash used in financing activities and approximately $ 338,000 of net cash provided by financing activities during the fiscal year ended january 31 , 2015. during the fiscal year ended january 31 , 2016 , we continued to pay off american express merchant processing loans . proceeds from sales of non-controlling ownership interests in subsidiaries decreased by approximately $ 1,540,000 as sales of non-controlling ownership interest was approximately $ 3,339,000 for the year ended january 31 , 2015 and approximately $ 1,826,000 for the year ended january 31 , 2016. during the fiscal year ended january 31 , 2016 , we primarily sold additional non-controlling interests in our yuma hospitality and tucson saint mary 's suite hospitality subsidiaries . with an increase in the sales of non-controlling ownership interest in subsidiaries , an increase in distributions to non-controlling interest holders is expected . distributions to non-controlling interest holders for the fiscal year ending january 31 , 2016 were approximately $ 1,244,000 as compared to approximately $ 769,000 for the fiscal year ended january 31 , 2015. these distributions are an offset to the net cash provided by financing activities . 14 the trust repurchased additional treasury stock of approximately $ 92,000 during the fiscal year ended january 31 , 2016 compared with $ 220,000 for the prior fiscal year ended january 31 , 2015. additional purchases of treasury stock is an offset to the

all but $ 2 million of capstead 's residential mortgage investments portfolio and all of its derivatives are recorded at fair value on the company 's balance sheet and are therefore included in the calculation of book value per share of common stock . none of the company 's borrowings are recorded at fair value . fair value is impacted by market conditions , including changes in interest rates , and the availability of financing at reasonable rates and leverage levels , among other factors . see note 8 to the consolidated financial statements for additional disclosures regarding fair values of financial instruments held or issued by the company . residential mortgage investments the following table illustrates the progression of capstead 's portfolio of residential mortgage investments for the indicated periods ( in thousands ) : replace_table_token_3_th capstead 's investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of arm agency securities . agency securities are considered to have limited , if any , credit risk because the timely payment of principal and interest is guaranteed by fannie mae and freddie mac , which are government-sponsored enterprises , or ginnie mae , which is an agency of the federal government . federal government support for fannie mae and freddie mac has largely alleviated market concerns regarding the ability of fannie mae and freddie mac to fulfill their guarantee obligations . by focusing on investing in arm agency securities , changes in fair value caused by changes in interest rates are typically relatively modest compared to changes in fair value of longer-duration fixed-rate assets . declines in fair value caused by increases in interest rates are generally recoverable in a relatively short period of time as coupon interest rates on the underlying mortgage loans reset to rates more reflective of the then-current interest rate environment . this investment strategy positions the company to benefit from potential recoveries in financing spreads that typically contract during periods of rising interest rates . 15 capstead classifies its arm securities based on the average length of time until the loans underlying each security reset to more current rates ( “ months-to-roll ” ) ( less than 18 months for “ current-reset ” arm securities , and 18 months or greater for “ longer-to-reset ” arm securities ) . the company 's arm holdings featured the following characteristics at december 31 , 201 9 ( dollars in thousands ) : replace_table_token_4_th ( a ) amortized cost basis represents the company 's investment ( unpaid principal balance plus unamortized investment premiums ) before unrealized gains and losses . at december 31 , 2019 , the ratio of amortized cost basis to unpaid principal balance for the company 's arm holdings was 103.06. this table excludes $ 1 million in fixed-rate agency-guaranteed mortgage pass-through securities , residential mortgage loans and private residential mortgage pass-through securities held as collateral for structured financings . ( b ) net wac , or weighted average coupon , is the weighted average interest rate of the mortgage loans underlying the indicated investments , net of servicing and other fees as of the indicated date . net wac is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments . as such , it is similar to the cash yield on the portfolio which is calculated using amortized cost basis . fully indexed wac represents the weighted average coupon upon one or more resets using interest rate indexes and net margins as of the indicated date . average net margins represent the weighted average levels over the underlying indexes that the portfolio can adjust to upon reset , usually subject to initial , periodic and or lifetime caps on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans . ( c ) arm securities with initial fixed-rate periods of five years or longer typically have either 200 or 500 basis point initial caps with 200 basis point periodic caps . additionally , certain arm securities held by the company are subject only to lifetime caps or are not subject to a cap . for presentation purposes , average periodic caps in the table above reflect initial caps until after an arm security has reached its initial reset date and lifetime caps , less the current net wac , for arm securities subject only to lifetime caps . at year-end , 74 % of current-reset arm securities were subject to periodic caps averaging 1.77 % ; 19 % were subject to initial caps averaging 2.60 % ; 6 % were subject to lifetime caps averaging 6.40 % ; and less than 1 % were uncapped . all longer-to-reset arm securities at december 31 , 2019 were subject to initial caps . ( d ) gross wac is the weighted average interest rate of the mortgage loans underlying the indicated investments , including servicing and other fees paid by borrowers , as of the indicated date . arm securities held by capstead are backed by mortgage loans that have coupon interest rates that adjust at least annually to more current interest rates or begin doing so after an initial fixed-rate period . these coupon interest rate adjustments are usually subject to periodic and lifetime limits , or caps , on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans . story_separator_special_tag interest income on residential mortgage investments was higher by $ 45 million in 2019 compared to 2018. the increase is attributable to $ 75 million in increases related to higher average yields , net of $ 30 million in decreases related to lower average portfolio balances during 2019. yields on residential mortgage investments were 63 basis points higher , averaging 2.75 % during 2019 , compared to 2.12 % reported for 2018 , primarily due to higher cash yields . this was largely due to arm loan coupon interest rates resetting higher to more current rates and higher coupon interest rates on acquisitions . yields also benefited from smaller adjustments for investment premium amortization in 2019 compared to 2018 as a result of lower portfolio basis , lower premiums on acquisitions and changes in prepayment estimates . interest expense on secured borrowings was higher by $ 39 million in 2019 compared to 2018. the increase is attributable to $ 60 million in increases related to higher average borrowing rates , net of $ 21 million in decreases related to lower average borrowings during 2019. secured borrowing rates adjusted for currently-paying interest rate swap agreements held for hedging purposes were 48 basis points higher , averaging 2.22 % in 2019 , compared to 1.74 % reported for 2018. market conditions contributed to higher borrowing rates , including four 25 basis point increases in the federal funds rate in 2018 that were partially offset by three 25 basis point decreases since july 2019. hedging costs were impacted by the expiration of older , lower-rate swaps and the addition of new higher-rate swaps . resulting higher rates were partially offset by higher variable rate swap receipts as a result of higher average short-term libor rates and the use of more 3-month libor-receive swap agreements . average fixed-rate swap payments were 2.07 % in 2019 compared to 1.56 % in 2018. efforts to reposition the swap portfolio to take advantage of declining market interest rates over the course of 2019 helped mitigate the increase in average fixed rates . swap balances were higher , averaging $ 7.46 billion in 2019 compared to $ 6.75 billion reported for 2018. future secured borrowing rates will be dependent on market conditions , including overall levels of market interest rates as well as the availability of longer-maturity borrowings and interest rate swap agreements at attractive rates . other interest expense ( net ) during 2019 benefited from a 34 basis point increase in rates on overnight investments and cash collateral receivable from derivative counterparties and $ 37 million in higher average balances . borrowing costs on the company 's $ 100 million face amount of outstanding unsecured borrowings are effectively fixed utilizing $ 100 million in swap agreements with matching terms . operating costs were higher in 2019 compared to 2018 by $ 405,000 , primarily due to adjustments made to finalize 2018 short-term incentive program results . capstead remains a highly efficient investment platform , particularly compared to other mortgage reits . key components of the company 's operating efficiency include its internally-managed structure and agency-focused investment strategy . 23 story_separator_special_tag assumptions include mortgage prepayment speeds , adequate levels of market liquidity , current market conditions , and portfolio leverage levels . these assumptions are inherently uncertain and , as a result , modeling can not precisely estimate the impact of higher or lower interest rates . actual results will differ from simulated results due to the timing , magnitude and frequency of interest rate changes , other changes in market conditions , changes in management strategies and other factors . 25 the table below reflects the estimated impact of instantaneous parallel shifts in the yield curve on net interest margins and the fair value of capstead 's portfolio of residential mortgage investments and related derivative financial instruments at december 31 , 201 9 and 201 8 , subject to the modeling parameters described above . replace_table_token_11_th ( a ) sensitivity of net interest margins as well as portfolio and related derivative values to changes in interest rates is determined relative to the actual rates at the applicable date . note that the projected 12-month net interest margin change is predicated on acquisitions of similar assets sufficient to replace runoff . there can be no assurance that suitable investments will be available for purchase at attractive prices , if investments made will behave in the same fashion as assets currently held or if management will choose to replace runoff with such assets . 26 c ritical accounting policies management 's discussion and analysis of financial condition and results of operations is based upon capstead 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires the use of estimates and judgments that can affect the reported amounts of assets , liabilities ( including contingencies ) , revenues and expenses , as well as related disclosures . these estimates are based on available internal and market information and appropriate valuation methodologies believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the expected useful lives and carrying values of assets and liabilities which can materially affect the determination of net income and book value per common share . actual results may differ from these estimates under different assumptions or conditions . management believes the following are critical accounting policies in the preparation of capstead 's consolidated financial statements that involve the use of estimates requiring considerable judgment : amortization of investment premiums on residential mortgage investments – investment premiums on residential mortgage investments are recognized in earnings as adjustments to interest income by the interest method over the estimated lives of the related assets . amortization is affected by actual portfolio runoff ( scheduled and unscheduled principal paydowns ) and by estimates and judgments related to future levels of mortgage prepayments that

liquidity and capital resources capstead 's primary sources of funds are secured borrowings and monthly principal and interest payments on its investments . other sources of funds may include proceeds from debt and equity offerings and asset sales . the timing , manner , price and amount of any future common and preferred issuances and any common stock repurchases will be made in the open market at the company 's discretion , subject to economic and market conditions , stock price , compliance with federal securities laws and tax regulations as well as blackout periods associated with the dissemination of important company-specific news . the company generally uses its liquidity to pay down secured borrowings to reduce borrowing costs and otherwise efficiently manage its long-term investment capital . because the level of these borrowings can generally be adjusted on a daily basis , the company 's potential liquidity inherent in its unencumbered residential mortgage investments is as important as the level of cash and cash equivalents carried on the balance sheet . the table included under “ utilization of long-term investment capital and potential liquidity ” illustrates management 's estimate of additional funds potentially available to the company at december 31 , 2019 and the accompanying discussion provides insight into the company 's perspective on what level of portfolio leverage to employ under current market conditions . the company currently believes that it has sufficient liquidity and capital resources available for the acquisition of additional investments , repayments on borrowings and the payment of cash dividends as required for the company 's continued qualification as a reit . capstead finances its residential mortgage investments primarily by borrowing under repurchase arrangements , the terms and conditions of which are negotiated on a transaction-by-transaction basis , when each such borrowing is initiated or renewed . future borrowings are dependent upon the willingness of lenders to participate in the financing of agency securities , lender collateral requirements and the lenders ' determination of the fair value of the securities pledged as collateral , which fluctuates with changes in interest rates and liquidity conditions within the commercial banking and mortgage finance industries .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 capstead 's primary sources of funds are secured borrowings and monthly principal and interest payments on its investments . other sources of funds may include proceeds from debt and equity offerings and asset sales . the timing , manner , price and amount of any future common and preferred issuances and any common stock repurchases will be made in the open market at the company 's discretion , subject to economic and market conditions , stock price , compliance with federal securities laws and tax regulations as well as blackout periods associated with the dissemination of important company-specific news . the company generally uses its liquidity to pay down secured borrowings to reduce borrowing costs and otherwise efficiently manage its long-term investment capital . because the level of these borrowings can generally be adjusted on a daily basis , the company 's potential liquidity inherent in its unencumbered residential mortgage investments is as important as the level of cash and cash equivalents carried on the balance sheet . the table included under “ utilization of long-term investment capital and potential liquidity ” illustrates management 's estimate of additional funds potentially available to the company at december 31 , 2019 and the accompanying discussion provides insight into the company 's perspective on what level of portfolio leverage to employ under current market conditions . the company currently believes that it has sufficient liquidity and capital resources available for the acquisition of additional investments , repayments on borrowings and the payment of cash dividends as required for the company 's continued qualification as a reit . capstead finances its residential mortgage investments primarily by borrowing under repurchase arrangements , the terms and conditions of which are negotiated on a transaction-by-transaction basis , when each such borrowing is initiated or renewed . future borrowings are dependent upon the willingness of lenders to participate in the financing of agency securities , lender collateral requirements and the lenders ' determination of the fair value of the securities pledged as collateral , which fluctuates with changes in interest rates and liquidity conditions within the commercial banking and mortgage finance industries . ``` Suspicious Activity Report : all but $ 2 million of capstead 's residential mortgage investments portfolio and all of its derivatives are recorded at fair value on the company 's balance sheet and are therefore included in the calculation of book value per share of common stock . none of the company 's borrowings are recorded at fair value . fair value is impacted by market conditions , including changes in interest rates , and the availability of financing at reasonable rates and leverage levels , among other factors . see note 8 to the consolidated financial statements for additional disclosures regarding fair values of financial instruments held or issued by the company . residential mortgage investments the following table illustrates the progression of capstead 's portfolio of residential mortgage investments for the indicated periods ( in thousands ) : replace_table_token_3_th capstead 's investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of arm agency securities . agency securities are considered to have limited , if any , credit risk because the timely payment of principal and interest is guaranteed by fannie mae and freddie mac , which are government-sponsored enterprises , or ginnie mae , which is an agency of the federal government . federal government support for fannie mae and freddie mac has largely alleviated market concerns regarding the ability of fannie mae and freddie mac to fulfill their guarantee obligations . by focusing on investing in arm agency securities , changes in fair value caused by changes in interest rates are typically relatively modest compared to changes in fair value of longer-duration fixed-rate assets . declines in fair value caused by increases in interest rates are generally recoverable in a relatively short period of time as coupon interest rates on the underlying mortgage loans reset to rates more reflective of the then-current interest rate environment . this investment strategy positions the company to benefit from potential recoveries in financing spreads that typically contract during periods of rising interest rates . 15 capstead classifies its arm securities based on the average length of time until the loans underlying each security reset to more current rates ( “ months-to-roll ” ) ( less than 18 months for “ current-reset ” arm securities , and 18 months or greater for “ longer-to-reset ” arm securities ) . the company 's arm holdings featured the following characteristics at december 31 , 201 9 ( dollars in thousands ) : replace_table_token_4_th ( a ) amortized cost basis represents the company 's investment ( unpaid principal balance plus unamortized investment premiums ) before unrealized gains and losses . at december 31 , 2019 , the ratio of amortized cost basis to unpaid principal balance for the company 's arm holdings was 103.06. this table excludes $ 1 million in fixed-rate agency-guaranteed mortgage pass-through securities , residential mortgage loans and private residential mortgage pass-through securities held as collateral for structured financings . ( b ) net wac , or weighted average coupon , is the weighted average interest rate of the mortgage loans underlying the indicated investments , net of servicing and other fees as of the indicated date . net wac is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments . as such , it is similar to the cash yield on the portfolio which is calculated using amortized cost basis . fully indexed wac represents the weighted average coupon upon one or more resets using interest rate indexes and net margins as of the indicated date . average net margins represent the weighted average levels over the underlying indexes that the portfolio can adjust to upon reset , usually subject to initial , periodic and or lifetime caps on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans . ( c ) arm securities with initial fixed-rate periods of five years or longer typically have either 200 or 500 basis point initial caps with 200 basis point periodic caps . additionally , certain arm securities held by the company are subject only to lifetime caps or are not subject to a cap . for presentation purposes , average periodic caps in the table above reflect initial caps until after an arm security has reached its initial reset date and lifetime caps , less the current net wac , for arm securities subject only to lifetime caps . at year-end , 74 % of current-reset arm securities were subject to periodic caps averaging 1.77 % ; 19 % were subject to initial caps averaging 2.60 % ; 6 % were subject to lifetime caps averaging 6.40 % ; and less than 1 % were uncapped . all longer-to-reset arm securities at december 31 , 2019 were subject to initial caps . ( d ) gross wac is the weighted average interest rate of the mortgage loans underlying the indicated investments , including servicing and other fees paid by borrowers , as of the indicated date . arm securities held by capstead are backed by mortgage loans that have coupon interest rates that adjust at least annually to more current interest rates or begin doing so after an initial fixed-rate period . these coupon interest rate adjustments are usually subject to periodic and lifetime limits , or caps , on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans . story_separator_special_tag interest income on residential mortgage investments was higher by $ 45 million in 2019 compared to 2018. the increase is attributable to $ 75 million in increases related to higher average yields , net of $ 30 million in decreases related to lower average portfolio balances during 2019. yields on residential mortgage investments were 63 basis points higher , averaging 2.75 % during 2019 , compared to 2.12 % reported for 2018 , primarily due to higher cash yields . this was largely due to arm loan coupon interest rates resetting higher to more current rates and higher coupon interest rates on acquisitions . yields also benefited from smaller adjustments for investment premium amortization in 2019 compared to 2018 as a result of lower portfolio basis , lower premiums on acquisitions and changes in prepayment estimates . interest expense on secured borrowings was higher by $ 39 million in 2019 compared to 2018. the increase is attributable to $ 60 million in increases related to higher average borrowing rates , net of $ 21 million in decreases related to lower average borrowings during 2019. secured borrowing rates adjusted for currently-paying interest rate swap agreements held for hedging purposes were 48 basis points higher , averaging 2.22 % in 2019 , compared to 1.74 % reported for 2018. market conditions contributed to higher borrowing rates , including four 25 basis point increases in the federal funds rate in 2018 that were partially offset by three 25 basis point decreases since july 2019. hedging costs were impacted by the expiration of older , lower-rate swaps and the addition of new higher-rate swaps . resulting higher rates were partially offset by higher variable rate swap receipts as a result of higher average short-term libor rates and the use of more 3-month libor-receive swap agreements . average fixed-rate swap payments were 2.07 % in 2019 compared to 1.56 % in 2018. efforts to reposition the swap portfolio to take advantage of declining market interest rates over the course of 2019 helped mitigate the increase in average fixed rates . swap balances were higher , averaging $ 7.46 billion in 2019 compared to $ 6.75 billion reported for 2018. future secured borrowing rates will be dependent on market conditions , including overall levels of market interest rates as well as the availability of longer-maturity borrowings and interest rate swap agreements at attractive rates . other interest expense ( net ) during 2019 benefited from a 34 basis point increase in rates on overnight investments and cash collateral receivable from derivative counterparties and $ 37 million in higher average balances . borrowing costs on the company 's $ 100 million face amount of outstanding unsecured borrowings are effectively fixed utilizing $ 100 million in swap agreements with matching terms . operating costs were higher in 2019 compared to 2018 by $ 405,000 , primarily due to adjustments made to finalize 2018 short-term incentive program results . capstead remains a highly efficient investment platform , particularly compared to other mortgage reits . key components of the company 's operating efficiency include its internally-managed structure and agency-focused investment strategy . 23 story_separator_special_tag assumptions include mortgage prepayment speeds , adequate levels of market liquidity , current market conditions , and portfolio leverage levels . these assumptions are inherently uncertain and , as a result , modeling can not precisely estimate the impact of higher or lower interest rates . actual results will differ from simulated results due to the timing , magnitude and frequency of interest rate changes , other changes in market conditions , changes in management strategies and other factors . 25 the table below reflects the estimated impact of instantaneous parallel shifts in the yield curve on net interest margins and the fair value of capstead 's portfolio of residential mortgage investments and related derivative financial instruments at december 31 , 201 9 and 201 8 , subject to the modeling parameters described above . replace_table_token_11_th ( a ) sensitivity of net interest margins as well as portfolio and related derivative values to changes in interest rates is determined relative to the actual rates at the applicable date . note that the projected 12-month net interest margin change is predicated on acquisitions of similar assets sufficient to replace runoff . there can be no assurance that suitable investments will be available for purchase at attractive prices , if investments made will behave in the same fashion as assets currently held or if management will choose to replace runoff with such assets . 26 c ritical accounting policies management 's discussion and analysis of financial condition and results of operations is based upon capstead 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires the use of estimates and judgments that can affect the reported amounts of assets , liabilities ( including contingencies ) , revenues and expenses , as well as related disclosures . these estimates are based on available internal and market information and appropriate valuation methodologies believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the expected useful lives and carrying values of assets and liabilities which can materially affect the determination of net income and book value per common share . actual results may differ from these estimates under different assumptions or conditions . management believes the following are critical accounting policies in the preparation of capstead 's consolidated financial statements that involve the use of estimates requiring considerable judgment : amortization of investment premiums on residential mortgage investments – investment premiums on residential mortgage investments are recognized in earnings as adjustments to interest income by the interest method over the estimated lives of the related assets . amortization is affected by actual portfolio runoff ( scheduled and unscheduled principal paydowns ) and by estimates and judgments related to future levels of mortgage prepayments that

on january 31 , 2013 , the company completed the sale of substantially all of the assets of its grass technologies product group ( grass ) in order to focus on its existing core businesses . grass manufactured polysomnography and electroenecephalography systems for both clinical and research use along with the related accessories and proprietary electrodes . consequently , the company has classified the results of operations of its grass segment as discontinued operations for all periods presented . astro-med markets and sells its products and services globally through a diverse distribution structure of direct sales personnel , manufacturer 's representatives and authorized dealers that deliver a full complement of branded products and services to customers in our respective markets . our growth strategy centers on organic growth through product innovation made possible by research and development initiatives , as well as strategic acquisitions that fit into existing core businesses . research and development activities are funded and expensed by the company at approximately 6.2 % of annual sales for fiscal 2013. including research and development expenditures of the discontinued grass segment , the company 's , spending on research and development in 2013 was 8.0 % of sales ( excluding sales of the discontinued grass segment ) , a level that the company anticipates will continue in 2014. we also continue to invest in sales and marketing initiatives by expanding the existing sales force and using various marketing campaigns to achieve our goals of sales growth and increased profitability notwithstanding today 's challenging economic environment . 15 results of operations the following table presents the net sales of each of the company 's segments , as well as the percentage of total sales and change from prior year . as previously noted , the company 's grass segment has been classified as a discontinued operation and therefore not presented in the table or discussion below . replace_table_token_3_th fiscal 2013 compared to fiscal 2012 astro-med 's sales in fiscal 2013 were $ 61,224,000 , representing a slight increase as compared to prior year sales of $ 60,724,000. domestic sales of $ 44,613,000 increased 2.4 % from the prior year sales of $ 43,570,000. international sales of $ 16,611,000 includes an unfavorable impact of $ 846,000 due to foreign exchange rates and reflects a 3.2 % decrease as compared to the prior year . hardware sales in fiscal 2013 were $ 25,169,000 , a 9.2 % increase as compared to prior year 's sales of $ 23,044,000 and represents 41.1 % of total sales as compared to 37.9 % of sales in the prior year . both product groups achieved growth in the current year , with t & m 's hardware sales up 5.0 % and quicklabel 's hardware sales up 17.2 % . the primary drivers of this increase relate to increases in t & m 's rugged and tmx product line sales and the increase in sales due to the introduction of quicklabel 's new kiaro ! product line . the increase in the current year 's hardware sales was tempered by lower sales of t & m 's recorder and data acquisition product lines and quicklabel 's vivo ! and zeo ! product lines . consumable sales in fiscal 2013 were $ 32,540,000 , representing a 3.8 % decrease as compared to prior year sales of $ 33,841,000. the key driver of the overall decrease in consumable sales for the current fiscal year was primarily traceable to the decline in label and tag sales in the quicklabel product group due to the january 2012 divestiture of the asheboro , north carolina facility , which contributed sales of approximately $ 4,100,000 in fiscal 2012. the decline in consumable product sales for the current year was tempered by an increase in sales of digital color printer supplies within the quicklabel product group , which were up 16.9 % over the prior year , as well as a slight increase in sales of quicklabel 's thermal transfer ribbon . service and other sales revenue in fiscal 2013 were $ 3,515,000 , a 8.4 % decrease compared to prior year sales of $ 3,839,000 due to lower repair and service revenue . the company achieved $ 23,728,000 in gross profit for fiscal 2013 and generated a gross profit margin of 38.8 % , an increase as compared to prior year 's gross profit margin of 36.3 % . the increase in gross profit margin for the current year is due to lower manufacturing costs and favorable product mix . operating expenses for the current year were $ 20,802,000 , representing a 1.2 % decrease from prior year 's operating expenses of $ 21,062,000. specifically , selling and marketing expenses decreased 2.9 % from prior year to $ 12,412,000 in fiscal 2013 , representing 20.3 % of sales , a slight decrease as compared to the prior year 's 21.0 % of sales . the decrease in selling and marketing was primarily the result of lower wages and benefits . general and administrative ( g & a ) expenses increased 15.4 % from prior year to $ 4,574,000 in fiscal 2013. the higher g & a expense was primarily due to an increase in wages and benefits for the current year , as well as an increase in professional fees spending as compared to the prior year . funding of research & development ( r & d ) in fiscal 2013 has decreased 11.7 % to $ 3,816,000. the decrease in r & d for fiscal 2013 is primarily due to the decrease in personnel costs and in prototype and outside research and development spending compared to the prior year . story_separator_special_tag as a result , significant judgment is required in determining the appropriate amounts to record and such judgments may prove to be incorrect in the future . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to the actual amounts . 20 inventories : inventories are stated at the lower of cost ( first-in , first-out ) or market . the company records provisions to write-down obsolete and excess inventory to its estimated net realizable value . the process for evaluating obsolete and excess inventory consists of analyzing the inventory supply on hand and estimating the net realizable value of the inventory based on historical experience , current business conditions and anticipated future sales . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to actual experience . income taxes : a valuation allowance is established when it is “more-likely-than-not” that all or a portion of deferred tax assets will not be realized . a review of all available positive and negative evidence must be considered , including our performance , the market environment in which we operate , length of carryforward periods , existing sales backlog and future sales projections . if actual factors and conditions differ materially from the estimates made by management , the actual realization of the net deferred tax assets or liabilities could vary materially from the amounts previously recorded . at january 31 , 2013 , the company has provided valuation allowances for future tax benefits resulting from certain r & d tax credits which could expire unused . the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions . although guidance on the accounting for uncertain income taxes prescribes the use of a recognition and measurement model , the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . if the ultimate resolution of tax uncertainties is different from what we have estimated , our income tax expense could be materially impacted . long-lived assets and goodwill : the impairment of long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition . measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset . management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances , such as declines in sales , earnings or cash flows , or material adverse changes in the business climate , indicate that the carrying value of an asset might be impaired . during the fourth quarter of fiscal 2012 , we adopted new accounting guidance which simplifies goodwill impairment testing . under the new guidance , goodwill is first qualitatively assessed to determine whether further impairment testing is necessary . factors that management considers in this assessment include macroeconomic conditions , industry and market considerations , overall financial performance ( both current and projected ) , changes in management and strategy and changes in the composition or carrying amount of net assets . if this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , a two step process is then performed . step one compares the fair value of the reporting unit with its carrying value , including goodwill . if the carrying amount exceeds the fair value of the reporting unit , step two is required to determine if there is an impairment of the goodwill . step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill . we estimate the fair value of our reporting units using the income approach based upon a discounted cash flow model . we believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit 's expected long–term operating cash flow performance . in addition , the company uses the market approach , which compares the reporting unit to publicly-traded companies and transactions involving similar business , to support the conclusions based upon the income approach . the income approach requires the use of many assumptions and estimates including future revenue , expenses , capital expenditures , and working capital , as well as discount factors and income tax rates . share-based compensation : share-based compensation expense is based on the estimated fair value of the share-based award when granted . we have estimated the fair value of each option on the date of grant using the black-scholes option-pricing model . our estimate of share-based compensation requires a number of complex and subjective assumptions including our stock price volatility , employee exercise patterns ( expected life of the options ) , the risk free interest rate and the company 's dividend yield . the stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average 21 expected life of our options . management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors . in determining the expected life of the option grants , the company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed

liquidity and capital resources the company expects to finance its future working capital needs , capital expenditures and acquisition requirements through internal funds and believes that cash provided by operations will be sufficient to meet our operating and capital needs for at least the next twelve months . to the extent our capital and liquidity requirements are not satisfied internally , we may utilize a $ 5.0 million revolving bank line of credit , all of which is currently available . borrowings under this line of credit bear interest at either a fluctuating rate equal to 75 basis points below the base rate , as defined in the agreement , or at a fixed rate equal to 150 basis points above libor . astro-med 's statements of cash flows for the two years ended january 31 , 2013 and 2012 are included on page 36. net cash flows provided by operating activities was $ 3,863,000 in the current year compared to net cash provided by operating activities of $ 5,472,000 in the previous year . the decrease in net cash flow from operations for the current year is attributed to increased working capital requirements , as both the accounts receivable and inventory balances increased during the current year and accounts payable and accrued expenses decreased in the current year as compared to prior year . the accounts receivable collection cycle was 51 days sales outstanding for both january 31 , 2013 and 2012. inventory days on hand increased to 109 days at the end of the current fiscal year from 105 days at prior year end . net cash flow provided by investing activities for fiscal 2013 was $ 18,466,000 , which included cash proceeds of $ 16,800,000 from the sale of the assets of company 's grass technologies product group . the increase in cash proceeds was slightly offset by cash used for capital expenditures of approximately $ 849,000 , including $ 327,000 for information technology , $ 161,000 for tools and dies , $ 156,000 for land and building improvements , $ 123,000 for machinery and equipment and $ 82,000 for furniture and fixtures and other 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 the company expects to finance its future working capital needs , capital expenditures and acquisition requirements through internal funds and believes that cash provided by operations will be sufficient to meet our operating and capital needs for at least the next twelve months . to the extent our capital and liquidity requirements are not satisfied internally , we may utilize a $ 5.0 million revolving bank line of credit , all of which is currently available . borrowings under this line of credit bear interest at either a fluctuating rate equal to 75 basis points below the base rate , as defined in the agreement , or at a fixed rate equal to 150 basis points above libor . astro-med 's statements of cash flows for the two years ended january 31 , 2013 and 2012 are included on page 36. net cash flows provided by operating activities was $ 3,863,000 in the current year compared to net cash provided by operating activities of $ 5,472,000 in the previous year . the decrease in net cash flow from operations for the current year is attributed to increased working capital requirements , as both the accounts receivable and inventory balances increased during the current year and accounts payable and accrued expenses decreased in the current year as compared to prior year . the accounts receivable collection cycle was 51 days sales outstanding for both january 31 , 2013 and 2012. inventory days on hand increased to 109 days at the end of the current fiscal year from 105 days at prior year end . net cash flow provided by investing activities for fiscal 2013 was $ 18,466,000 , which included cash proceeds of $ 16,800,000 from the sale of the assets of company 's grass technologies product group . the increase in cash proceeds was slightly offset by cash used for capital expenditures of approximately $ 849,000 , including $ 327,000 for information technology , $ 161,000 for tools and dies , $ 156,000 for land and building improvements , $ 123,000 for machinery and equipment and $ 82,000 for furniture and fixtures and other capital expenditures . ``` Suspicious Activity Report : on january 31 , 2013 , the company completed the sale of substantially all of the assets of its grass technologies product group ( grass ) in order to focus on its existing core businesses . grass manufactured polysomnography and electroenecephalography systems for both clinical and research use along with the related accessories and proprietary electrodes . consequently , the company has classified the results of operations of its grass segment as discontinued operations for all periods presented . astro-med markets and sells its products and services globally through a diverse distribution structure of direct sales personnel , manufacturer 's representatives and authorized dealers that deliver a full complement of branded products and services to customers in our respective markets . our growth strategy centers on organic growth through product innovation made possible by research and development initiatives , as well as strategic acquisitions that fit into existing core businesses . research and development activities are funded and expensed by the company at approximately 6.2 % of annual sales for fiscal 2013. including research and development expenditures of the discontinued grass segment , the company 's , spending on research and development in 2013 was 8.0 % of sales ( excluding sales of the discontinued grass segment ) , a level that the company anticipates will continue in 2014. we also continue to invest in sales and marketing initiatives by expanding the existing sales force and using various marketing campaigns to achieve our goals of sales growth and increased profitability notwithstanding today 's challenging economic environment . 15 results of operations the following table presents the net sales of each of the company 's segments , as well as the percentage of total sales and change from prior year . as previously noted , the company 's grass segment has been classified as a discontinued operation and therefore not presented in the table or discussion below . replace_table_token_3_th fiscal 2013 compared to fiscal 2012 astro-med 's sales in fiscal 2013 were $ 61,224,000 , representing a slight increase as compared to prior year sales of $ 60,724,000. domestic sales of $ 44,613,000 increased 2.4 % from the prior year sales of $ 43,570,000. international sales of $ 16,611,000 includes an unfavorable impact of $ 846,000 due to foreign exchange rates and reflects a 3.2 % decrease as compared to the prior year . hardware sales in fiscal 2013 were $ 25,169,000 , a 9.2 % increase as compared to prior year 's sales of $ 23,044,000 and represents 41.1 % of total sales as compared to 37.9 % of sales in the prior year . both product groups achieved growth in the current year , with t & m 's hardware sales up 5.0 % and quicklabel 's hardware sales up 17.2 % . the primary drivers of this increase relate to increases in t & m 's rugged and tmx product line sales and the increase in sales due to the introduction of quicklabel 's new kiaro ! product line . the increase in the current year 's hardware sales was tempered by lower sales of t & m 's recorder and data acquisition product lines and quicklabel 's vivo ! and zeo ! product lines . consumable sales in fiscal 2013 were $ 32,540,000 , representing a 3.8 % decrease as compared to prior year sales of $ 33,841,000. the key driver of the overall decrease in consumable sales for the current fiscal year was primarily traceable to the decline in label and tag sales in the quicklabel product group due to the january 2012 divestiture of the asheboro , north carolina facility , which contributed sales of approximately $ 4,100,000 in fiscal 2012. the decline in consumable product sales for the current year was tempered by an increase in sales of digital color printer supplies within the quicklabel product group , which were up 16.9 % over the prior year , as well as a slight increase in sales of quicklabel 's thermal transfer ribbon . service and other sales revenue in fiscal 2013 were $ 3,515,000 , a 8.4 % decrease compared to prior year sales of $ 3,839,000 due to lower repair and service revenue . the company achieved $ 23,728,000 in gross profit for fiscal 2013 and generated a gross profit margin of 38.8 % , an increase as compared to prior year 's gross profit margin of 36.3 % . the increase in gross profit margin for the current year is due to lower manufacturing costs and favorable product mix . operating expenses for the current year were $ 20,802,000 , representing a 1.2 % decrease from prior year 's operating expenses of $ 21,062,000. specifically , selling and marketing expenses decreased 2.9 % from prior year to $ 12,412,000 in fiscal 2013 , representing 20.3 % of sales , a slight decrease as compared to the prior year 's 21.0 % of sales . the decrease in selling and marketing was primarily the result of lower wages and benefits . general and administrative ( g & a ) expenses increased 15.4 % from prior year to $ 4,574,000 in fiscal 2013. the higher g & a expense was primarily due to an increase in wages and benefits for the current year , as well as an increase in professional fees spending as compared to the prior year . funding of research & development ( r & d ) in fiscal 2013 has decreased 11.7 % to $ 3,816,000. the decrease in r & d for fiscal 2013 is primarily due to the decrease in personnel costs and in prototype and outside research and development spending compared to the prior year . story_separator_special_tag as a result , significant judgment is required in determining the appropriate amounts to record and such judgments may prove to be incorrect in the future . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to the actual amounts . 20 inventories : inventories are stated at the lower of cost ( first-in , first-out ) or market . the company records provisions to write-down obsolete and excess inventory to its estimated net realizable value . the process for evaluating obsolete and excess inventory consists of analyzing the inventory supply on hand and estimating the net realizable value of the inventory based on historical experience , current business conditions and anticipated future sales . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to actual experience . income taxes : a valuation allowance is established when it is “more-likely-than-not” that all or a portion of deferred tax assets will not be realized . a review of all available positive and negative evidence must be considered , including our performance , the market environment in which we operate , length of carryforward periods , existing sales backlog and future sales projections . if actual factors and conditions differ materially from the estimates made by management , the actual realization of the net deferred tax assets or liabilities could vary materially from the amounts previously recorded . at january 31 , 2013 , the company has provided valuation allowances for future tax benefits resulting from certain r & d tax credits which could expire unused . the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions . although guidance on the accounting for uncertain income taxes prescribes the use of a recognition and measurement model , the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . if the ultimate resolution of tax uncertainties is different from what we have estimated , our income tax expense could be materially impacted . long-lived assets and goodwill : the impairment of long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition . measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset . management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances , such as declines in sales , earnings or cash flows , or material adverse changes in the business climate , indicate that the carrying value of an asset might be impaired . during the fourth quarter of fiscal 2012 , we adopted new accounting guidance which simplifies goodwill impairment testing . under the new guidance , goodwill is first qualitatively assessed to determine whether further impairment testing is necessary . factors that management considers in this assessment include macroeconomic conditions , industry and market considerations , overall financial performance ( both current and projected ) , changes in management and strategy and changes in the composition or carrying amount of net assets . if this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , a two step process is then performed . step one compares the fair value of the reporting unit with its carrying value , including goodwill . if the carrying amount exceeds the fair value of the reporting unit , step two is required to determine if there is an impairment of the goodwill . step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill . we estimate the fair value of our reporting units using the income approach based upon a discounted cash flow model . we believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit 's expected long–term operating cash flow performance . in addition , the company uses the market approach , which compares the reporting unit to publicly-traded companies and transactions involving similar business , to support the conclusions based upon the income approach . the income approach requires the use of many assumptions and estimates including future revenue , expenses , capital expenditures , and working capital , as well as discount factors and income tax rates . share-based compensation : share-based compensation expense is based on the estimated fair value of the share-based award when granted . we have estimated the fair value of each option on the date of grant using the black-scholes option-pricing model . our estimate of share-based compensation requires a number of complex and subjective assumptions including our stock price volatility , employee exercise patterns ( expected life of the options ) , the risk free interest rate and the company 's dividend yield . the stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average 21 expected life of our options . management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors . in determining the expected life of the option grants , the company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed

36 our current initiatives to execute this strategy include the following : provide products that can compete effectively in the healthcare market where cost and quality are important ; complete the integration of the triage and bnp businesses acquired in late 2017 ; strengthen and leverage our international infrastructure to support the integration of the triage and bnp businesses and enhance our global footprint to support our international operations and future growth ; focus our research and development efforts on three areas : new proprietary product platform development ; the creation of improved products and new products for existing markets and unmet clinical needs ; and pursuit of collaborations with , or acquisitions of , other companies for new and existing products and markets that advance our strategy to develop differentiated technologies and products ; strengthen our market and brand leadership in current markets by acquiring and or developing and introducing clinically superior diagnostic solutions ; strengthen our direct sales force to enhance relationships with integrated delivery networks , laboratories and hospitals , with a goal of driving growth through improved physician and laboratorian satisfaction ; leverage our wireless connectivity and data management systems , including cloud-based tools ; support payer evaluation of diagnostic tests and establishment of favorable reimbursement rates ; provide clinicians with validated studies that encompass the clinical efficacy and economic efficiency of our diagnostic tests for the professional market ; create strong global alliances to support our efforts to achieve leadership in key markets and expand our presence in emerging markets ; further refine our manufacturing efficiencies and productivity improvements to increase profit ; and focus on innovative products and markets and leverage our 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 regulatory body clearance to market any of our products , or if we obtain clearances , 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 . outlook we anticipate revenue growth over the next year and a related positive impact on gross margin and earnings , assuming relatively normal respiratory seasons . this growth is expected to be driven primarily by increased sales of our cardiology assays , sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our next generation immunoassay and 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 . 37 results of operations comparison of years ended december 31 , 2018 and 2017 total revenues the following table compares total revenues for the years ended december 31 , 2018 and 2017 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2018 , total revenues increased 88 % to $ 522.3 million . the increase in total revenues was driven primarily by cardiac immunoassay full year impact of revenue from the acquisition of the triage and bnp businesses . the company also realized increases in rapid immunoassay revenues due primarily to growth in influenza products , bolstered by a robust cold and flu season in the first quarter of 2018. molecular products were up 42 % over prior year driven by continued revenue growth on the solana platform . gross profit gross profit increased by 102 % over prior year , to $ 315.7 million , or 60 % of revenue for the year ended december 31 , 2018 , compared to $ 156.1 million , or 56 % of revenue for the year ended december 31 , 2017 . the increased gross profit was mainly driven by the full year impact of the cardiac immunoassay products from the acquisition of the triage and bnp businesses and increased influenza sales in the current year . gross margins increased by 420 basis points during 2018 due to higher volumes with the addition of cardiac immunoassay products , lower inventory step-up amortization and improved product mix in the current year . operating expenses the following table compares operating expenses for the years ended december 31 , 2018 and 2017 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2018 increased from $ 33.6 million to $ 51.6 million due primarily to additional expenses associated with the triage business and investments in the savanna molecular diagnostic platform . research and development expenses include direct external costs such as fees paid to third-party contractors and 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 . 38 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 . story_separator_special_tag ( 6 ) reflects our $ 9.1 million of non-cancelable commitments for planned inventory purchases under contractual arrangements . we have entered into various licensing agreements , which largely require payments based on specified product sales as well as the achievement of specific milestones . royalty and license expenses under these various royalty and licensing agreements collectively totaled $ 0.4 million , $ 0.6 million and $ 0.8 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively . we exclude liabilities pertaining to uncertain tax positions from our table of contractual obligations as we can not make a reliable estimate of the period of cash settlement with the respective taxing authorities , nor the amount of the final cash settlement . as of december 31 , 2018 , we had approximately $ 3.2 million of liabilities associated with uncertain tax positions . see note 4 in the consolidated financial statements included in this annual report for further discussion of uncertain tax positions . the table also excludes $ 19.1 million in potential contingent consideration payments primarily related to the acquisition of the bnp business and achievement of certain revenue targets under other acquisition agreements . we have not included amounts in the table because we can not make a reasonably reliable estimate regarding the probability of the annual payments for the bnp business or whether and when the milestones required for the other acquisition payments will be 44 achieved . see note 10 in the consolidated financial statements included in this annual report for further discussion of our contingent consideration . recent accounting standards for summary of recent accounting pronouncements applicable to our consolidated financial statements see “ company operations and summary of significant accounting policies ” in note 1 to our consolidated financial statements in part ii , item 8 , which is incorporated herein by reference . critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , stock-based compensation , goodwill and intangibles , business combinations , income taxes and convertible debt . we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : reserve for contractual rebates and discounts the company records revenues primarily from product sales . these revenues are recorded net of rebates and other discounts that are estimated at the time of sale , and are largely driven by various customer program offerings , including special pricing agreements , promotions and other volume-based incentives . rebates and discounts are recorded as a reduction of sales and trade accounts receivable , based up on historical experience , estimated discounting levels and estimated distributor inventory balances . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option . 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 . 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 . the estimated forfeiture rate is based on our historical experience and future expectations . compensation expense for time-based restricted stock units are 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 units based on the closing market price of our common stock on the grant date . the recognition of compensation expense associated with performance-based restricted stock units 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 . for purposes of measuring compensation expense , the number of shares ultimately expected to vest is estimated at each reporting date based on management 's expectations regarding the relevant performance criteria . the grant date of the performance-based restricted stock units 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 units . 45 goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher

cash provided by operating activities of $ 27.7 million during the year ended december 31 , 2017 reflects net loss of $ 8.2 million for the year ended december 31 , 2017 and non-cash charges of $ 59.7 million primarily related to depreciation , amortization of intangible assets , amortization of the inventory step-up to fair value related to the triage and bnp businesses acquired in 2017 , stock-based compensation , amortization of debt discount and deferred issuance costs and accretion of interest on deferred consideration related to the acquired bnp business . partially offsetting these cash inflows was a net working capital use of cash of $ 30.7 million . cash provided by operating activities of $ 11.8 million during the year ended december 31 , 2016 reflects net loss of $ 13.8 million for the year ended december 31 , 2016 and non-cash charges of $ 33.2 million primarily related to depreciation , amortization and stock-based compensation . partially offsetting these cash inflows was net working capital use of cash of $ 1.9 million . our investing activities provided $ 115.0 million during the year ended december 31 , 2018 primarily from the sale of the summers ridge property for $ 146.6 million . in addition , we used $ 31.7 million to acquire production equipment , building improvements and sofia , solana and triage instruments available for sale or lease .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 of $ 27.7 million during the year ended december 31 , 2017 reflects net loss of $ 8.2 million for the year ended december 31 , 2017 and non-cash charges of $ 59.7 million primarily related to depreciation , amortization of intangible assets , amortization of the inventory step-up to fair value related to the triage and bnp businesses acquired in 2017 , stock-based compensation , amortization of debt discount and deferred issuance costs and accretion of interest on deferred consideration related to the acquired bnp business . partially offsetting these cash inflows was a net working capital use of cash of $ 30.7 million . cash provided by operating activities of $ 11.8 million during the year ended december 31 , 2016 reflects net loss of $ 13.8 million for the year ended december 31 , 2016 and non-cash charges of $ 33.2 million primarily related to depreciation , amortization and stock-based compensation . partially offsetting these cash inflows was net working capital use of cash of $ 1.9 million . our investing activities provided $ 115.0 million during the year ended december 31 , 2018 primarily from the sale of the summers ridge property for $ 146.6 million . in addition , we used $ 31.7 million to acquire production equipment , building improvements and sofia , solana and triage instruments available for sale or lease . ``` Suspicious Activity Report : 36 our current initiatives to execute this strategy include the following : provide products that can compete effectively in the healthcare market where cost and quality are important ; complete the integration of the triage and bnp businesses acquired in late 2017 ; strengthen and leverage our international infrastructure to support the integration of the triage and bnp businesses and enhance our global footprint to support our international operations and future growth ; focus our research and development efforts on three areas : new proprietary product platform development ; the creation of improved products and new products for existing markets and unmet clinical needs ; and pursuit of collaborations with , or acquisitions of , other companies for new and existing products and markets that advance our strategy to develop differentiated technologies and products ; strengthen our market and brand leadership in current markets by acquiring and or developing and introducing clinically superior diagnostic solutions ; strengthen our direct sales force to enhance relationships with integrated delivery networks , laboratories and hospitals , with a goal of driving growth through improved physician and laboratorian satisfaction ; leverage our wireless connectivity and data management systems , including cloud-based tools ; support payer evaluation of diagnostic tests and establishment of favorable reimbursement rates ; provide clinicians with validated studies that encompass the clinical efficacy and economic efficiency of our diagnostic tests for the professional market ; create strong global alliances to support our efforts to achieve leadership in key markets and expand our presence in emerging markets ; further refine our manufacturing efficiencies and productivity improvements to increase profit ; and focus on innovative products and markets and leverage our 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 regulatory body clearance to market any of our products , or if we obtain clearances , 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 . outlook we anticipate revenue growth over the next year and a related positive impact on gross margin and earnings , assuming relatively normal respiratory seasons . this growth is expected to be driven primarily by increased sales of our cardiology assays , sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our next generation immunoassay and 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 . 37 results of operations comparison of years ended december 31 , 2018 and 2017 total revenues the following table compares total revenues for the years ended december 31 , 2018 and 2017 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2018 , total revenues increased 88 % to $ 522.3 million . the increase in total revenues was driven primarily by cardiac immunoassay full year impact of revenue from the acquisition of the triage and bnp businesses . the company also realized increases in rapid immunoassay revenues due primarily to growth in influenza products , bolstered by a robust cold and flu season in the first quarter of 2018. molecular products were up 42 % over prior year driven by continued revenue growth on the solana platform . gross profit gross profit increased by 102 % over prior year , to $ 315.7 million , or 60 % of revenue for the year ended december 31 , 2018 , compared to $ 156.1 million , or 56 % of revenue for the year ended december 31 , 2017 . the increased gross profit was mainly driven by the full year impact of the cardiac immunoassay products from the acquisition of the triage and bnp businesses and increased influenza sales in the current year . gross margins increased by 420 basis points during 2018 due to higher volumes with the addition of cardiac immunoassay products , lower inventory step-up amortization and improved product mix in the current year . operating expenses the following table compares operating expenses for the years ended december 31 , 2018 and 2017 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2018 increased from $ 33.6 million to $ 51.6 million due primarily to additional expenses associated with the triage business and investments in the savanna molecular diagnostic platform . research and development expenses include direct external costs such as fees paid to third-party contractors and 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 . 38 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 . story_separator_special_tag ( 6 ) reflects our $ 9.1 million of non-cancelable commitments for planned inventory purchases under contractual arrangements . we have entered into various licensing agreements , which largely require payments based on specified product sales as well as the achievement of specific milestones . royalty and license expenses under these various royalty and licensing agreements collectively totaled $ 0.4 million , $ 0.6 million and $ 0.8 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively . we exclude liabilities pertaining to uncertain tax positions from our table of contractual obligations as we can not make a reliable estimate of the period of cash settlement with the respective taxing authorities , nor the amount of the final cash settlement . as of december 31 , 2018 , we had approximately $ 3.2 million of liabilities associated with uncertain tax positions . see note 4 in the consolidated financial statements included in this annual report for further discussion of uncertain tax positions . the table also excludes $ 19.1 million in potential contingent consideration payments primarily related to the acquisition of the bnp business and achievement of certain revenue targets under other acquisition agreements . we have not included amounts in the table because we can not make a reasonably reliable estimate regarding the probability of the annual payments for the bnp business or whether and when the milestones required for the other acquisition payments will be 44 achieved . see note 10 in the consolidated financial statements included in this annual report for further discussion of our contingent consideration . recent accounting standards for summary of recent accounting pronouncements applicable to our consolidated financial statements see “ company operations and summary of significant accounting policies ” in note 1 to our consolidated financial statements in part ii , item 8 , which is incorporated herein by reference . critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , stock-based compensation , goodwill and intangibles , business combinations , income taxes and convertible debt . we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : reserve for contractual rebates and discounts the company records revenues primarily from product sales . these revenues are recorded net of rebates and other discounts that are estimated at the time of sale , and are largely driven by various customer program offerings , including special pricing agreements , promotions and other volume-based incentives . rebates and discounts are recorded as a reduction of sales and trade accounts receivable , based up on historical experience , estimated discounting levels and estimated distributor inventory balances . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option . 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 . 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 . the estimated forfeiture rate is based on our historical experience and future expectations . compensation expense for time-based restricted stock units are 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 units based on the closing market price of our common stock on the grant date . the recognition of compensation expense associated with performance-based restricted stock units 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 . for purposes of measuring compensation expense , the number of shares ultimately expected to vest is estimated at each reporting date based on management 's expectations regarding the relevant performance criteria . the grant date of the performance-based restricted stock units 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 units . 45 goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher

with centuries of brewing heritage , we have been crafting high-quality , innovative products with the purpose of delighting the world 's beer drinkers and with the ambition to be the first choice for our consumers and customers . our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions . in 2017 , we continued to focus on building our brand strength and transforming our portfolio toward the above premium , flavored malt beverages , craft and cider segments . further , we continued to focus on generating higher returns on our invested capital , managing our working capital and delivering a greater return on investment for our shareholders . during the first quarter of 2017 , we issued the 2017 notes ( as defined in part ii—item 8 financial statements and supplementary data , note 38 12 , `` debt `` of the notes ) , and within the first nine months of 2017 , we fully repaid our term loans , all of which will generate future interest savings and will contribute to meeting our deleveraging commitments . as part of our deleveraging commitments we also made a discretionary cash contribution of $ 200 million to the u.s. pension plan during 2017. summary of consolidated results of operations the following table highlights summarized components of our consolidated statements of operations for the years ended december 31 , 2017 , december 31 , 2016 , and december 31 , 2015 , and unaudited pro forma financial information for the years ended december 31 , 2016 , and december 31 , 2015 . see part ii-item 8 financial statements and supplementary data , “ consolidated statements of operations ” for additional details of our u.s. gaap results . our consolidated historical financial statements and unaudited pro forma financial information have been revised to reflect the retrospective application of our change in accounting policy as discussed in part ii—item 8 financial statements and supplementary data , note 1 , `` basis of presentation and summary of significant accounting policies `` of the notes . this change impacts our canada and europe segments . we have presented unaudited pro forma financial information to enhance comparability of financial information between periods . the unaudited pro forma financial information is based on the historical consolidated financial statements of mcbc and millercoors , both prepared in accordance with u.s. gaap , and gives effect to the acquisition and the completed financing as if they were completed on january 1 , 2015. pro forma adjustments are based on items that are factually supportable , are directly attributable to the acquisition or the related financing , and are expected to have a continuing impact on mcbc 's results of operations . any non-recurring items directly attributable to the acquisition or the related financing are excluded in the unaudited pro forma statements of operations . the unaudited pro forma financial information does not include adjustments for costs related to integration activities following the completion of the acquisition , cost savings or synergies that have been or may be achieved by the combined businesses . the unaudited pro forma financial information is presented for illustrative purposes only and does not necessarily reflect the results of operations of mcbc that actually would have resulted had the acquisition and related financing occurred at the date indicated , or project the results of operations of mcbc for any future dates or periods . see `` unaudited pro forma financial information `` below for details of pro forma adjustments . replace_table_token_14_th n/m = not meaningful ( 1 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` below for further details . 2017 financial highlights on an as reported basis - in 2017 , net income attributable to mcbc from continuing operations decreased 29.2 % compared to the prior year largely due to a benefit recorded to special items , net in 2016 for the revaluation gain on the excess of the estimated fair value remeasurement for our pre-existing 42 % interest in millercoors over its carrying value , as well as the reclassification of the loss related to mcbc 's historical aoci on our 42 % interest in millercoors . this was partially offset by the incremental net income recorded in 2017 associated with the acquisition . further , we released an indirect tax loss contingency , which was initially recorded in the fourth quarter of 2016 , for a benefit of approximately $ 50 million during the first quarter of 2017 in our europe business which favorably impacted net sales and net income attributable to mcbc from continuing operations . on a pro forma basis - in 2017 , net income attributable to mcbc from continuing operations increased from $ 294.6 million to $ 1,412.7 million , primarily as a result of lower special charges specifically related to the 2016 impairment 39 charge of $ 495.2 million and an income tax benefit in the current year resulting from u.s. tax reform . additionally , as noted above , we released an indirect tax loss contingency , which was initially recorded in the fourth quarter of 2016 , for a benefit of approximately $ 50 million during the first quarter of 2017 in our europe business which favorably impacted net sales and net income attributable to mcbc from continuing operations . further , consolidated results were favorably impacted by positive global pricing , net pension benefits , cost savings , and marketing , general and administrative efficiencies , partially offset by the impacts of lower volume , cost inflation and investments behind our global business capabilities . story_separator_special_tag ( 2 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` above for further details . ( 3 ) on a reported basis , includes gross inter-segment sales , purchases , and volumes which are eliminated in the consolidated totals . ( 4 ) see part ii—item 8 financial statements and supplementary data , note 7 , `` special items `` of the notes for detail of special items . 44 replace_table_token_20_th ( 1 ) pro forma amounts give effect to the acquisition as if it had occurred at the beginning of fiscal year 2015 and have been updated to reflect that effective january 1 , 2017 , the results of the millercoors puerto rico business , which were previously included as part of the u.s. segment , are now reported within the international segment . see part ii - item 7 management 's discussion and analysis , `` unaudited pro forma financial information , `` for details of pro forma adjustments . ( 2 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` above for further details . ( 3 ) on a reported basis , includes gross inter-segment sales , purchases , and volumes which are eliminated in the consolidated totals . ( 4 ) see part ii—item 8 financial statements and supplementary data , note 7 , `` special items `` of the notes for detail of special items . 45 the following represents our proportionate share of millercoors ' net income reported under the equity method prior to the acquisition : replace_table_token_21_th n/m = not meaningful ( 1 ) see part ii—item 8 financial statements and supplementary data , note 4 , `` acquisition and investments `` of the notes , for a detailed discussion of these equity method adjustments prior to the acquisition . the discussion below highlights the u.s. segment results of operations for the year ended december 31 , 2017 , versus the year ended december 31 , 2016 , and for the year ended december 31 , 2016 , versus the year ended december 31 , 2015 , on a reported and pro forma basis , where applicable . significant events on october 11 , 2016 , we completed the acquisition and as a result , mcbc owns 100 % of the outstanding equity and voting interests of millercoors . therefore , beginning october 11 , 2016 , millercoors ' results of operations have been prospectively consolidated into mcbc 's consolidated financial statements and included in the u.s. segment . see part ii—item 8 financial statements and supplementary data , note 4 , `` acquisition and investments `` for further details . additionally , effective january 1 , 2017 , the results of the millercoors puerto rico business , which were previously included as part of the u.s. segment , are now reported within the international segment . note , we only present unaudited pro forma financial information for the consolidated entity and the u.s. segment . during the third quarter of 2015 , millercoors announced plans to close its brewery in eden , north carolina , in an effort to optimize the brewery footprint and streamline operations for greater efficiencies . products produced in eden were transitioned to other breweries in the millercoors network and the eden brewery is now closed . total special charges associated with the eden closure of approximately $ 179 million have been incurred from the decision to close through december 31 , 2017 , consisting primarily of accelerated depreciation . we have incurred the majority of the costs associated with the closure , however , future costs may be incurred associated with the disposition of assets and other costs associated with the closure . additionally , in 2016 millercoors acquired revolver brewing , terrapin beer company and hop valley brewing company , all craft breweries , and in 2015 millercoors acquired saint archer brewing company , also a craft brewery . volume and net sales domestic strs declined 2.9 % in 2017 compared to 2016 , driven by lower volume in the premium light and below premium segments . domestic stws decreased 3.3 % in 2017 compared to 2016. domestic net sales per hectoliter increased 1.2 % compared to prior year reported net sales and 1.0 % compared to prior year pro forma net sales for 2017 , due to favorable net pricing . total net sales per hectoliter , including non-owned brands , contract brewing and company-owned distributor sales for 2017 , increased 1.1 % compared to prior year reported figures and increased 1.3 % compared to prior year pro forma figures . 46 domestic strs declined 2.5 % in 2016 compared to 2015 , driven by declines in both the below premium and premium light segments . total stws volume declined 1.5 % in 2016 compared to 2015 . domestic stws decreased 1.3 % versus 2015 , driven by the decline in strs and contract brewing volume decline of 2.6 % . domestic net sales per hectoliter increased 1.2 % on a reported basis and 1.3 % on a pro forma basis in 2016 compared to 2015 , driven by favorable net pricing and positive sales mix . total net sales per hectoliter , including non-owned brands , contract brewing and company-owned distributor sales , increased 1.0 % on a reported basis and 1.2 % on a pro forma basis in 2016 compared to 2015 . cost of goods sold cost of goods sold per hectoliter decreased 0.1 % compared to prior year reported figures due to the cycling of $ 82.0 million related to the inventory step up as a result of the acquisition . cost of goods sold per hectoliter increased 1.0 % compared to prior year pro

cash flows from investing activities net cash used in investing activities of approximately $ 538 million in 2017 , decreased by approximately $ 11.7 billion compared to 2016 driven primarily by the completion of the acquisition in 2016 for $ 12.0 billion , offset by higher capital expenditures in 2017 resulting from the acquisition . net cash used in investing activities of approximately $ 12.3 billion in 2016 increased by approximately $ 12.0 billion compared to 2015 driven primarily by the completion of the acquisition for $ 12.0 billion . this increase is partially offset by the receipt of cad 183.1 million ( $ 140.8 million ) of proceeds from the sale of our vancouver brewery . cash flows from financing activities net cash used in financing activities of approximately $ 1.5 billion in 2017 , decreased by approximately $ 12.8 billion from net cash provided by financing activities of approximately $ 11.3 billion in 2016 . this change was primarily driven by the approximate $ 2.5 billion of net proceeds received from our february 3 , 2016 , equity offering of 29.9 million shares of our class b common stock , the approximate $ 6.9 billion of net proceeds from the issuance of debt on july 7 , 2016 , to partially fund the acquisition in 2016 , as well as increased net repayments of debt as we have begun to deleverage in 2017. see `` borrowings '' below for more details of financing activity .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from investing activities net cash used in investing activities of approximately $ 538 million in 2017 , decreased by approximately $ 11.7 billion compared to 2016 driven primarily by the completion of the acquisition in 2016 for $ 12.0 billion , offset by higher capital expenditures in 2017 resulting from the acquisition . net cash used in investing activities of approximately $ 12.3 billion in 2016 increased by approximately $ 12.0 billion compared to 2015 driven primarily by the completion of the acquisition for $ 12.0 billion . this increase is partially offset by the receipt of cad 183.1 million ( $ 140.8 million ) of proceeds from the sale of our vancouver brewery . cash flows from financing activities net cash used in financing activities of approximately $ 1.5 billion in 2017 , decreased by approximately $ 12.8 billion from net cash provided by financing activities of approximately $ 11.3 billion in 2016 . this change was primarily driven by the approximate $ 2.5 billion of net proceeds received from our february 3 , 2016 , equity offering of 29.9 million shares of our class b common stock , the approximate $ 6.9 billion of net proceeds from the issuance of debt on july 7 , 2016 , to partially fund the acquisition in 2016 , as well as increased net repayments of debt as we have begun to deleverage in 2017. see `` borrowings '' below for more details of financing activity . ``` Suspicious Activity Report : with centuries of brewing heritage , we have been crafting high-quality , innovative products with the purpose of delighting the world 's beer drinkers and with the ambition to be the first choice for our consumers and customers . our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions . in 2017 , we continued to focus on building our brand strength and transforming our portfolio toward the above premium , flavored malt beverages , craft and cider segments . further , we continued to focus on generating higher returns on our invested capital , managing our working capital and delivering a greater return on investment for our shareholders . during the first quarter of 2017 , we issued the 2017 notes ( as defined in part ii—item 8 financial statements and supplementary data , note 38 12 , `` debt `` of the notes ) , and within the first nine months of 2017 , we fully repaid our term loans , all of which will generate future interest savings and will contribute to meeting our deleveraging commitments . as part of our deleveraging commitments we also made a discretionary cash contribution of $ 200 million to the u.s. pension plan during 2017. summary of consolidated results of operations the following table highlights summarized components of our consolidated statements of operations for the years ended december 31 , 2017 , december 31 , 2016 , and december 31 , 2015 , and unaudited pro forma financial information for the years ended december 31 , 2016 , and december 31 , 2015 . see part ii-item 8 financial statements and supplementary data , “ consolidated statements of operations ” for additional details of our u.s. gaap results . our consolidated historical financial statements and unaudited pro forma financial information have been revised to reflect the retrospective application of our change in accounting policy as discussed in part ii—item 8 financial statements and supplementary data , note 1 , `` basis of presentation and summary of significant accounting policies `` of the notes . this change impacts our canada and europe segments . we have presented unaudited pro forma financial information to enhance comparability of financial information between periods . the unaudited pro forma financial information is based on the historical consolidated financial statements of mcbc and millercoors , both prepared in accordance with u.s. gaap , and gives effect to the acquisition and the completed financing as if they were completed on january 1 , 2015. pro forma adjustments are based on items that are factually supportable , are directly attributable to the acquisition or the related financing , and are expected to have a continuing impact on mcbc 's results of operations . any non-recurring items directly attributable to the acquisition or the related financing are excluded in the unaudited pro forma statements of operations . the unaudited pro forma financial information does not include adjustments for costs related to integration activities following the completion of the acquisition , cost savings or synergies that have been or may be achieved by the combined businesses . the unaudited pro forma financial information is presented for illustrative purposes only and does not necessarily reflect the results of operations of mcbc that actually would have resulted had the acquisition and related financing occurred at the date indicated , or project the results of operations of mcbc for any future dates or periods . see `` unaudited pro forma financial information `` below for details of pro forma adjustments . replace_table_token_14_th n/m = not meaningful ( 1 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` below for further details . 2017 financial highlights on an as reported basis - in 2017 , net income attributable to mcbc from continuing operations decreased 29.2 % compared to the prior year largely due to a benefit recorded to special items , net in 2016 for the revaluation gain on the excess of the estimated fair value remeasurement for our pre-existing 42 % interest in millercoors over its carrying value , as well as the reclassification of the loss related to mcbc 's historical aoci on our 42 % interest in millercoors . this was partially offset by the incremental net income recorded in 2017 associated with the acquisition . further , we released an indirect tax loss contingency , which was initially recorded in the fourth quarter of 2016 , for a benefit of approximately $ 50 million during the first quarter of 2017 in our europe business which favorably impacted net sales and net income attributable to mcbc from continuing operations . on a pro forma basis - in 2017 , net income attributable to mcbc from continuing operations increased from $ 294.6 million to $ 1,412.7 million , primarily as a result of lower special charges specifically related to the 2016 impairment 39 charge of $ 495.2 million and an income tax benefit in the current year resulting from u.s. tax reform . additionally , as noted above , we released an indirect tax loss contingency , which was initially recorded in the fourth quarter of 2016 , for a benefit of approximately $ 50 million during the first quarter of 2017 in our europe business which favorably impacted net sales and net income attributable to mcbc from continuing operations . further , consolidated results were favorably impacted by positive global pricing , net pension benefits , cost savings , and marketing , general and administrative efficiencies , partially offset by the impacts of lower volume , cost inflation and investments behind our global business capabilities . story_separator_special_tag ( 2 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` above for further details . ( 3 ) on a reported basis , includes gross inter-segment sales , purchases , and volumes which are eliminated in the consolidated totals . ( 4 ) see part ii—item 8 financial statements and supplementary data , note 7 , `` special items `` of the notes for detail of special items . 44 replace_table_token_20_th ( 1 ) pro forma amounts give effect to the acquisition as if it had occurred at the beginning of fiscal year 2015 and have been updated to reflect that effective january 1 , 2017 , the results of the millercoors puerto rico business , which were previously included as part of the u.s. segment , are now reported within the international segment . see part ii - item 7 management 's discussion and analysis , `` unaudited pro forma financial information , `` for details of pro forma adjustments . ( 2 ) historical financial volumes have been recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the acquisition . see `` worldwide brand volume `` above for further details . ( 3 ) on a reported basis , includes gross inter-segment sales , purchases , and volumes which are eliminated in the consolidated totals . ( 4 ) see part ii—item 8 financial statements and supplementary data , note 7 , `` special items `` of the notes for detail of special items . 45 the following represents our proportionate share of millercoors ' net income reported under the equity method prior to the acquisition : replace_table_token_21_th n/m = not meaningful ( 1 ) see part ii—item 8 financial statements and supplementary data , note 4 , `` acquisition and investments `` of the notes , for a detailed discussion of these equity method adjustments prior to the acquisition . the discussion below highlights the u.s. segment results of operations for the year ended december 31 , 2017 , versus the year ended december 31 , 2016 , and for the year ended december 31 , 2016 , versus the year ended december 31 , 2015 , on a reported and pro forma basis , where applicable . significant events on october 11 , 2016 , we completed the acquisition and as a result , mcbc owns 100 % of the outstanding equity and voting interests of millercoors . therefore , beginning october 11 , 2016 , millercoors ' results of operations have been prospectively consolidated into mcbc 's consolidated financial statements and included in the u.s. segment . see part ii—item 8 financial statements and supplementary data , note 4 , `` acquisition and investments `` for further details . additionally , effective january 1 , 2017 , the results of the millercoors puerto rico business , which were previously included as part of the u.s. segment , are now reported within the international segment . note , we only present unaudited pro forma financial information for the consolidated entity and the u.s. segment . during the third quarter of 2015 , millercoors announced plans to close its brewery in eden , north carolina , in an effort to optimize the brewery footprint and streamline operations for greater efficiencies . products produced in eden were transitioned to other breweries in the millercoors network and the eden brewery is now closed . total special charges associated with the eden closure of approximately $ 179 million have been incurred from the decision to close through december 31 , 2017 , consisting primarily of accelerated depreciation . we have incurred the majority of the costs associated with the closure , however , future costs may be incurred associated with the disposition of assets and other costs associated with the closure . additionally , in 2016 millercoors acquired revolver brewing , terrapin beer company and hop valley brewing company , all craft breweries , and in 2015 millercoors acquired saint archer brewing company , also a craft brewery . volume and net sales domestic strs declined 2.9 % in 2017 compared to 2016 , driven by lower volume in the premium light and below premium segments . domestic stws decreased 3.3 % in 2017 compared to 2016. domestic net sales per hectoliter increased 1.2 % compared to prior year reported net sales and 1.0 % compared to prior year pro forma net sales for 2017 , due to favorable net pricing . total net sales per hectoliter , including non-owned brands , contract brewing and company-owned distributor sales for 2017 , increased 1.1 % compared to prior year reported figures and increased 1.3 % compared to prior year pro forma figures . 46 domestic strs declined 2.5 % in 2016 compared to 2015 , driven by declines in both the below premium and premium light segments . total stws volume declined 1.5 % in 2016 compared to 2015 . domestic stws decreased 1.3 % versus 2015 , driven by the decline in strs and contract brewing volume decline of 2.6 % . domestic net sales per hectoliter increased 1.2 % on a reported basis and 1.3 % on a pro forma basis in 2016 compared to 2015 , driven by favorable net pricing and positive sales mix . total net sales per hectoliter , including non-owned brands , contract brewing and company-owned distributor sales , increased 1.0 % on a reported basis and 1.2 % on a pro forma basis in 2016 compared to 2015 . cost of goods sold cost of goods sold per hectoliter decreased 0.1 % compared to prior year reported figures due to the cycling of $ 82.0 million related to the inventory step up as a result of the acquisition . cost of goods sold per hectoliter increased 1.0 % compared to prior year pro

of operating systems ; performance and valuation of our investments , including the impact of realized losses ( including other-than-temporary impairment charges ) ; our ability to identify products and markets in which we can compete effectively against competitors with greater market share , higher ratings , greater financial resources and stronger brand recognition ; our ability to generate sufficient liquidity to meet our debt service obligations and other cash needs ; changes in capital deployment opportunities ; our ability to maintain effective controls over financial reporting ; our ability to continue to recruit and retain productive agents and distribution partners ; customer response to new products , distribution channels and marketing initiatives ; our ability to maintain the financial strength ratings of cno and our insurance company subsidiaries as well as the impact of our ratings on our business , our ability to access capital , and the cost of capital ; regulatory changes or actions , including : those relating to regulation of the financial affairs of our insurance companies , such as the calculation of risk-based capital and minimum capital requirements , and payment of dividends and surplus debenture interest to us ; regulation of the sale , underwriting and pricing of products ; and health care regulation affecting health insurance products ; changes in the federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products or affect the value of our deferred tax assets ; availability and effectiveness of reinsurance arrangements , as well as the impact of any defaults or failure of reinsurers to perform ; the performance of third party service providers and potential difficulties arising from outsourcing arrangements ; the growth rate of sales , collected premiums , annuity deposits and assets ; interruption in telecommunication , information technology or other operational systems or failure to maintain the security , confidentiality or privacy of sensitive data on such systems ; events of terrorism , cyber attacks , natural disasters or other catastrophic events , including losses from a disease pandemic ; ineffectiveness of risk management policies and procedures in identifying , monitoring and managing risks ; and the risk factors or uncertainties listed from time to time in our filings with the sec . other factors and assumptions not identified above are also relevant to the forward-looking statements , and if they prove incorrect , could also cause actual results to differ materially from those projected . all written or oral forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing cautionary statement . our forward-looking statements speak only as of the date made . we assume no obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results , future events or developments , changes in assumptions or changes in other factors affecting the forward-looking statements . the reporting of rbc measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing , advertising or promotional activities . 48 overview we are a holding company for a group of insurance companies operating throughout the united states that develop , market and administer health insurance , annuity , individual life insurance and other insurance products . we focus on serving the senior and middle-income markets , which we believe are attractive , underserved , high growth markets . we sell our products through three distribution channels : career agents , independent producers ( some of whom sell one or more of our product lines exclusively ) and direct marketing . we measure segment performance by excluding the loss related to reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes related to the agent deferred compensation plan , loss on extinguishment of debt , income taxes and other non-operating items consisting primarily of earnings attributable to vies ( `` pre-tax operating earnings `` ) because we believe that this performance measure is a better indicator of the ongoing business and trends in our business . our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of net realized investment gains ( losses ) , and a long-term focus is necessary to maintain profitability over the life of the business . the loss related to reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes related to the agent deferred compensation plan , loss on extinguishment of debt , and other non-operating items consisting primarily of earnings attributable to vies depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments . net realized investment gains ( losses ) and fair value changes in embedded derivative liabilities ( net of related amortization ) may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business . the company 's insurance segments are described below : bankers life , which underwrites , markets and distributes medicare supplement insurance , interest-sensitive life insurance , traditional life insurance , fixed annuities and long-term care insurance products to the middle-income senior market through a dedicated field force of career agents , financial and investment advisors , and sales managers supported by a network of community-based sales offices . the bankers life segment includes primarily the business of bankers life . story_separator_special_tag present value of future profits and deferred acquisition costs in conjunction with the implementation of fresh start accounting , we eliminated the historical balances of our predecessor 's deferred acquisition costs and the present value of future profits and replaced them with the present value of future profits as calculated on the effective date . the value assigned to the right to receive future cash flows from contracts existing at the effective date is referred to as the present value of future profits . the balance of this account is amortized , evaluated for recovery , and adjusted for the impact of unrealized gains ( losses ) in the same manner as the deferred acquisition costs described below . we expect to amortize the balance of the present value of future profits as of december 31 , 2019 as follows : 11 percent in 2020 , 9 percent in 2021 , 8 percent in 2022 , 7 percent in 2023 and 7 percent in 2024 . deferred acquisition costs represent incremental direct costs related to the successful acquisition of new or renewal insurance contracts . for interest-sensitive life or annuity products , we amortize these costs in relation to the estimated gross profits using the interest rate credited to the underlying policies . for other products , we generally amortize these costs in relation to future anticipated premium revenue using the projected investment earnings rate . insurance acquisition costs are amortized to expense over the lives of the underlying policies in relation to future anticipated premiums or gross profits . the insurance acquisition costs for policies other than interest-sensitive life and annuity products are amortized with interest ( using the projected investment earnings rate ) over the estimated premium-paying period of the policies , in a manner which recognizes amortization expense in proportion to each year 's premium income . the insurance acquisition costs for interest-sensitive life and annuity products are amortized with interest ( using the interest rate credited to the underlying policy ) in proportion to estimated gross profits . the interest , mortality , morbidity and persistency assumptions used to amortize insurance acquisition costs are consistent with those assumptions used to estimate liabilities for insurance products . for interest-sensitive life and annuity products , these assumptions are reviewed on a regular basis . when actual profits or our current best estimates of future profits are different from previous estimates , we adjust cumulative amortization of insurance acquisition costs to maintain amortization expense as a constant percentage of gross profits over the entire life of the policies . when we realize a gain or loss on investments backing our interest-sensitive life or annuity products , we adjust the amortization of insurance acquisition costs to reflect the change in estimated gross profits from the products due to the gain or loss realized and the effect on future investment yields . we increased ( decreased ) amortization expense for such changes by $ .6 million , $ ( .4 ) million and $ 1.0 million during the years ended december 31 , 2019 , 2018 and 2017 , respectively . we also adjust 55 insurance acquisition costs for the change in amortization that would have been recorded if fixed maturity securities , available for sale , had been sold at their stated aggregate fair value and the proceeds reinvested at current yields . such adjustments are commonly referred to as `` shadow adjustments `` and may include adjustments to : ( i ) deferred acquisition costs ; ( ii ) the present value of future profits ; ( iii ) loss recognition reserves ; and ( iv ) income taxes . we include the impact of this adjustment in accumulated other comprehensive income ( loss ) within shareholders ' equity . the total pre-tax impact of such adjustments on accumulated other comprehensive income was a decrease of $ 343.3 million at december 31 , 2019 ( including $ 135.5 million for premium deficiencies that would exist on certain blocks of business if unrealized gains on the assets backing such products had been realized and the proceeds from our sales of such assets were invested at then current yields ) . the total pre-tax impact of such adjustments on accumulated other comprehensive income at december 31 , 2018 was a decrease of $ 45.3 million ( including $ 2.5 million for premium deficiencies that would exist on certain blocks of business if unrealized gains on the assets backing such products had been realized and the proceeds from our sales of such assets were invested at then current yields ) . at december 31 , 2019 , the balance of insurance acquisition costs was $ 1.5 billion . the recoverability of this amount is dependent on the future profitability of the related business . each year , we evaluate the recoverability of the unamortized balance of insurance acquisition costs . these evaluations are performed to determine whether estimates of the present value of future cash flows , in combination with the related liability for insurance products , will support the unamortized balance . these future cash flows are based on our best estimate of future premium income , less benefits and expenses . the present value of these cash flows , plus the related balance of liabilities for insurance products , is then compared with the unamortized balance of insurance acquisition costs . in the event of a deficiency , such amount would be charged to amortization expense . if the deficiency exceeds the balance of insurance acquisition costs , a premium deficiency reserve is established for the excess . the determination of future cash flows involves significant judgment . revisions to the assumptions which determine such cash flows could have a significant adverse effect on our results of operations and financial position . the long-term care business in the long-term care in run-off segment is not expected to generate significant future profits . while we expect the long-term care business in

interest expense on corporate debt was $ 52.4 million , $ 48.0 million and $ 46.5 million in 2019 , 2018 and 2017 , respectively . our average corporate debt outstanding was $ 966.1 million in 2019 and $ 925.0 million in both 2018 and 2017 . the average interest rate on our debt was 5.1 percent , 4.8 percent and 4.8 percent in 2019 , 2018 and 2017 , respectively . average corporate debt outstanding and the average interest rate were impacted by the debt refinancing transaction completed in june 2019 ( as further discussed in the note to the consolidated financial statements entitled `` notes payable - direct corporate obligations '' ) along with the mix of interest rates on the related outstanding borrowings . net investment income on general investment portfolio fluctuates based on the amount and type of invested assets in the corporate operations segment . net investment income on other special-purpose portfolios includes the income ( loss ) from : ( i ) investments related to deferred compensation plans held in a rabbi trust ( which is offset by amounts included in other operating costs and expenses as the investment results are allocated to participants ' account balances ) ; ( ii ) trading account activities ; and ( iii ) income ( loss ) from company-owned life insurance ( `` coli '' ) equal to the difference between the return on these investments ( representing the change in value of the underlying investments ) and our overall portfolio yield . coli is utilized as an investment vehicle to fund bankers life 's agent deferred compensation plan .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```interest expense on corporate debt was $ 52.4 million , $ 48.0 million and $ 46.5 million in 2019 , 2018 and 2017 , respectively . our average corporate debt outstanding was $ 966.1 million in 2019 and $ 925.0 million in both 2018 and 2017 . the average interest rate on our debt was 5.1 percent , 4.8 percent and 4.8 percent in 2019 , 2018 and 2017 , respectively . average corporate debt outstanding and the average interest rate were impacted by the debt refinancing transaction completed in june 2019 ( as further discussed in the note to the consolidated financial statements entitled `` notes payable - direct corporate obligations '' ) along with the mix of interest rates on the related outstanding borrowings . net investment income on general investment portfolio fluctuates based on the amount and type of invested assets in the corporate operations segment . net investment income on other special-purpose portfolios includes the income ( loss ) from : ( i ) investments related to deferred compensation plans held in a rabbi trust ( which is offset by amounts included in other operating costs and expenses as the investment results are allocated to participants ' account balances ) ; ( ii ) trading account activities ; and ( iii ) income ( loss ) from company-owned life insurance ( `` coli '' ) equal to the difference between the return on these investments ( representing the change in value of the underlying investments ) and our overall portfolio yield . coli is utilized as an investment vehicle to fund bankers life 's agent deferred compensation plan . ``` Suspicious Activity Report : of operating systems ; performance and valuation of our investments , including the impact of realized losses ( including other-than-temporary impairment charges ) ; our ability to identify products and markets in which we can compete effectively against competitors with greater market share , higher ratings , greater financial resources and stronger brand recognition ; our ability to generate sufficient liquidity to meet our debt service obligations and other cash needs ; changes in capital deployment opportunities ; our ability to maintain effective controls over financial reporting ; our ability to continue to recruit and retain productive agents and distribution partners ; customer response to new products , distribution channels and marketing initiatives ; our ability to maintain the financial strength ratings of cno and our insurance company subsidiaries as well as the impact of our ratings on our business , our ability to access capital , and the cost of capital ; regulatory changes or actions , including : those relating to regulation of the financial affairs of our insurance companies , such as the calculation of risk-based capital and minimum capital requirements , and payment of dividends and surplus debenture interest to us ; regulation of the sale , underwriting and pricing of products ; and health care regulation affecting health insurance products ; changes in the federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products or affect the value of our deferred tax assets ; availability and effectiveness of reinsurance arrangements , as well as the impact of any defaults or failure of reinsurers to perform ; the performance of third party service providers and potential difficulties arising from outsourcing arrangements ; the growth rate of sales , collected premiums , annuity deposits and assets ; interruption in telecommunication , information technology or other operational systems or failure to maintain the security , confidentiality or privacy of sensitive data on such systems ; events of terrorism , cyber attacks , natural disasters or other catastrophic events , including losses from a disease pandemic ; ineffectiveness of risk management policies and procedures in identifying , monitoring and managing risks ; and the risk factors or uncertainties listed from time to time in our filings with the sec . other factors and assumptions not identified above are also relevant to the forward-looking statements , and if they prove incorrect , could also cause actual results to differ materially from those projected . all written or oral forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing cautionary statement . our forward-looking statements speak only as of the date made . we assume no obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results , future events or developments , changes in assumptions or changes in other factors affecting the forward-looking statements . the reporting of rbc measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing , advertising or promotional activities . 48 overview we are a holding company for a group of insurance companies operating throughout the united states that develop , market and administer health insurance , annuity , individual life insurance and other insurance products . we focus on serving the senior and middle-income markets , which we believe are attractive , underserved , high growth markets . we sell our products through three distribution channels : career agents , independent producers ( some of whom sell one or more of our product lines exclusively ) and direct marketing . we measure segment performance by excluding the loss related to reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes related to the agent deferred compensation plan , loss on extinguishment of debt , income taxes and other non-operating items consisting primarily of earnings attributable to vies ( `` pre-tax operating earnings `` ) because we believe that this performance measure is a better indicator of the ongoing business and trends in our business . our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of net realized investment gains ( losses ) , and a long-term focus is necessary to maintain profitability over the life of the business . the loss related to reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes related to the agent deferred compensation plan , loss on extinguishment of debt , and other non-operating items consisting primarily of earnings attributable to vies depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments . net realized investment gains ( losses ) and fair value changes in embedded derivative liabilities ( net of related amortization ) may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business . the company 's insurance segments are described below : bankers life , which underwrites , markets and distributes medicare supplement insurance , interest-sensitive life insurance , traditional life insurance , fixed annuities and long-term care insurance products to the middle-income senior market through a dedicated field force of career agents , financial and investment advisors , and sales managers supported by a network of community-based sales offices . the bankers life segment includes primarily the business of bankers life . story_separator_special_tag present value of future profits and deferred acquisition costs in conjunction with the implementation of fresh start accounting , we eliminated the historical balances of our predecessor 's deferred acquisition costs and the present value of future profits and replaced them with the present value of future profits as calculated on the effective date . the value assigned to the right to receive future cash flows from contracts existing at the effective date is referred to as the present value of future profits . the balance of this account is amortized , evaluated for recovery , and adjusted for the impact of unrealized gains ( losses ) in the same manner as the deferred acquisition costs described below . we expect to amortize the balance of the present value of future profits as of december 31 , 2019 as follows : 11 percent in 2020 , 9 percent in 2021 , 8 percent in 2022 , 7 percent in 2023 and 7 percent in 2024 . deferred acquisition costs represent incremental direct costs related to the successful acquisition of new or renewal insurance contracts . for interest-sensitive life or annuity products , we amortize these costs in relation to the estimated gross profits using the interest rate credited to the underlying policies . for other products , we generally amortize these costs in relation to future anticipated premium revenue using the projected investment earnings rate . insurance acquisition costs are amortized to expense over the lives of the underlying policies in relation to future anticipated premiums or gross profits . the insurance acquisition costs for policies other than interest-sensitive life and annuity products are amortized with interest ( using the projected investment earnings rate ) over the estimated premium-paying period of the policies , in a manner which recognizes amortization expense in proportion to each year 's premium income . the insurance acquisition costs for interest-sensitive life and annuity products are amortized with interest ( using the interest rate credited to the underlying policy ) in proportion to estimated gross profits . the interest , mortality , morbidity and persistency assumptions used to amortize insurance acquisition costs are consistent with those assumptions used to estimate liabilities for insurance products . for interest-sensitive life and annuity products , these assumptions are reviewed on a regular basis . when actual profits or our current best estimates of future profits are different from previous estimates , we adjust cumulative amortization of insurance acquisition costs to maintain amortization expense as a constant percentage of gross profits over the entire life of the policies . when we realize a gain or loss on investments backing our interest-sensitive life or annuity products , we adjust the amortization of insurance acquisition costs to reflect the change in estimated gross profits from the products due to the gain or loss realized and the effect on future investment yields . we increased ( decreased ) amortization expense for such changes by $ .6 million , $ ( .4 ) million and $ 1.0 million during the years ended december 31 , 2019 , 2018 and 2017 , respectively . we also adjust 55 insurance acquisition costs for the change in amortization that would have been recorded if fixed maturity securities , available for sale , had been sold at their stated aggregate fair value and the proceeds reinvested at current yields . such adjustments are commonly referred to as `` shadow adjustments `` and may include adjustments to : ( i ) deferred acquisition costs ; ( ii ) the present value of future profits ; ( iii ) loss recognition reserves ; and ( iv ) income taxes . we include the impact of this adjustment in accumulated other comprehensive income ( loss ) within shareholders ' equity . the total pre-tax impact of such adjustments on accumulated other comprehensive income was a decrease of $ 343.3 million at december 31 , 2019 ( including $ 135.5 million for premium deficiencies that would exist on certain blocks of business if unrealized gains on the assets backing such products had been realized and the proceeds from our sales of such assets were invested at then current yields ) . the total pre-tax impact of such adjustments on accumulated other comprehensive income at december 31 , 2018 was a decrease of $ 45.3 million ( including $ 2.5 million for premium deficiencies that would exist on certain blocks of business if unrealized gains on the assets backing such products had been realized and the proceeds from our sales of such assets were invested at then current yields ) . at december 31 , 2019 , the balance of insurance acquisition costs was $ 1.5 billion . the recoverability of this amount is dependent on the future profitability of the related business . each year , we evaluate the recoverability of the unamortized balance of insurance acquisition costs . these evaluations are performed to determine whether estimates of the present value of future cash flows , in combination with the related liability for insurance products , will support the unamortized balance . these future cash flows are based on our best estimate of future premium income , less benefits and expenses . the present value of these cash flows , plus the related balance of liabilities for insurance products , is then compared with the unamortized balance of insurance acquisition costs . in the event of a deficiency , such amount would be charged to amortization expense . if the deficiency exceeds the balance of insurance acquisition costs , a premium deficiency reserve is established for the excess . the determination of future cash flows involves significant judgment . revisions to the assumptions which determine such cash flows could have a significant adverse effect on our results of operations and financial position . the long-term care business in the long-term care in run-off segment is not expected to generate significant future profits . while we expect the long-term care business in

of key strategic relationships with partners and equity method investee partners ; competitor responses to our products and services and the products and services of the entities in which we have interests ; threatened terrorist attacks and military action ; reduced access to capital markets or significant increases in costs to borrow ; a failure to secure affiliate agreements or renewal of such agreements on less favorable terms ; and a reduction of advertising revenue associated with unexpected reductions in the number of subscribers . for additional risk factors , refer to item 1a , “risk factors” . these forward-looking statements and such risks , uncertainties and other factors speak only as of the date of this annual report and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein , to reflect any change in our expectations with regard thereto , or any other change in events , conditions or circumstances on which any such statement is based . business overview we are a global nonfiction media and entertainment company that provides programming across multiple distribution platforms throughout the world . we distribute customized programming , in over 40 languages , in the u.s. and over 200 other countries and territories . our global portfolio of networks includes prominent television brands such as discovery channel , one of the first nonfiction networks and our most widely distributed global brand , tlc and animal planet . we also have a diversified portfolio of websites and other digital media services , develop and sell curriculum-based products and services , and provide postproduction audio services . our objectives are to invest in content for our networks to build viewership , optimize distribution revenue , capture advertising sales , and create or reposition additional branded channels and businesses that can sustain long-term growth and occupy a desired programming niche with strong consumer appeal . our strategy is to optimize the distribution , ratings , and profit potential of each of our branded networks . in addition to growing distribution and advertising revenue for our branded networks , we are extending content distribution across new platforms , including brand-aligned websites , mobile devices , vod , broadband channels and on-line streaming , which provide promotional platforms for our television programming and serve as additional outlets for advertising and distribution revenue . 25 our media content is designed to target key audience demographics and the popularity of our programming creates a reason for advertisers to purchase commercial time on our channels . audience ratings are a key driver in generating advertising revenue and creating demand on the part of cable television operators , dth satellite operators , and other content distributors to deliver our programming to their customers . we classify our operations in three segments : u.s. networks , consisting principally of domestic television networks , websites , and other digital media services ; international networks , consisting primarily of international television networks and websites ; and education and other , consisting principally of curriculum-based product and service offerings and postproduction audio services . u.s. networks u.s. networks generated net revenues of $ 2,619 million during 2011 , which represented 62 % of our total consolidated net revenues . this segment wholly owns and operates nine national television networks , including fully distributed television networks such as discovery channel , tlc and animal planet . in addition , this segment holds our interests in own , the hub , and 3net , which are networks operated by equity method investees . we account for our interests in the underlying ventures using the equity method and services provided to them as other revenue . u.s. networks generates revenues from fees charged to distributors of our network content , which include cable and dth satellite service providers and digital distributors , from advertising sold on our television networks and other arrangements . distribution fees are largely based on the number of subscribers receiving our programming . distribution revenues are recognized net of incentives we provide to operators in exchange for carrying our networks . incentives may include launch incentives , providing the channel to the distributor for free for a predetermined length of time , or both . launch incentives are capitalized as assets upon launch of our network by the operator and are amortized on a straight-line basis as a reduction of revenue over the term of the contract , including free periods . advertising revenues are dependent upon a number of factors including the number of subscribers to our channels , viewership demographics , the popularity of our programming , and our ability to sell commercial time over a group of channels . our u.s. networks segment also generates income to offset expenses associated with providing affiliate and advertising sales representation and network services for equity method investee networks and the licensing of our brands for consumer products . during 2011 , distribution , advertising , and other revenues were 45 % , 51 % , and 4 % , respectively , of total net revenues for this segment . the discovery channel , tlc and animal planet collectively generated 72 % of u.s. networks ' total net revenues . u.s. networks ' largest single cost is content expense , including content amortization , content impairments and production costs . u.s. networks amortizes the cost of capitalized content rights based on the proportion that current estimated revenues bear to the estimated remaining total lifetime revenues , which normally results in an accelerated amortization method over the estimated useful lives . certain networks utilize a straight-line method of amortization over the estimated useful lives of the content . on january 1 , 2011 , we contributed the domestic discovery health network to own . the contribution included affiliate relationships with cable operators and dth satellite service providers , content licenses , and website user information . story_separator_special_tag this incremental tax expense will be partially mitigated by the company 's ability to utilize foreign tax credits for taxes which were deducted in prior years . as a result , the company recognized an income tax benefit of $ 112 million in the fourth quarter of 2011 related to the foreign tax credits , which were previously not considered realizable . due to the lower statutory and negotiated tax rates in the foreign corporations ' jurisdictions , the company expects a favorable impact on the effective tax rate in the future under the new operating structure . our effective tax rate for 2010 differed from the federal statutory rate of 35 % due primarily to the reversal of a $ 28 million foreign tax reserve as a result of a foreign tax authority completing its tax audit and providing us notification that certain tax years will not be adjusted and production activity deductions , which were partially offset by state taxes . ( loss ) income from discontinued operations , net of taxes loss from discontinued operations in 2011 relates to activities connected with businesses classified as discontinued operations in previous years . income from discontinued operations in 2010 relates to the sale of our antenna audio business and the elimination of an obligation to acg an entity spun off in 2008 . 31 net income attributable to noncontrolling interests the $ 15 million decrease in net income attributable to noncontrolling interests was due to the acquisition of the bbc 's interests in the international animal planet and liv networks on november 12 , 2010. following the acquisition , we no longer allocate net operating results to noncontrolling interests of these networks . segment results of operations – 2011 vs. 2010 we evaluate the operating performance of our segments based on financial measures such as revenues and adjusted operating income before depreciation and amortization ( “adjusted oibda” ) . adjusted oibda is defined as revenues less costs of revenues and selling , general and administrative expenses excluding : ( i ) mark-to-market stock-based compensation , ( ii ) depreciation and amortization , ( iii ) amortization of deferred launch incentives , ( iv ) exit and restructuring charges , ( v ) certain impairment charges , and ( vi ) gains ( losses ) on business and asset dispositions . we use this measure to assess the operating results and performance of our segments , perform analytical comparisons , identify strategies to improve performance , and allocate resources to each segment . we believe adjusted oibda is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses . we exclude mark-to-market stock-based compensation , exit and restructuring charges , certain impairment charges , and gains ( losses ) on business and asset dispositions from the calculation of adjusted oibda due to their volatility . we also exclude the depreciation of fixed assets and amortization of intangible assets and deferred launch incentives as these amounts do not represent cash payments in the current reporting period . adjusted oibda should be considered in addition to , but not a substitute for , operating income , net income , cash flows provided by operating activities and other measures of financial performance reported in accordance with u.s. generally accepted accounting principles ( “gaap” ) . additionally , certain corporate expenses are excluded from segment results to enable executive management to evaluate segment performance based upon decisions made directly by segment executives . additional financial information for our segments and geographical areas in which we do business is discussed in note 21 to the consolidated financial statements included in item 8 , “financial statements and supplementary data” in this annual report on form 10-k. total consolidated adjusted oibda was calculated as follows ( in millions ) . replace_table_token_9_th nm – not meaningful . ( 1 ) costs of revenues and selling , general and administrative expenses exclude mark-to-market stock-based compensation , depreciation and amortization , restructuring and impairment charges , and gains on dispositions . ( 2 ) amortization of deferred launch incentives are included as a reduction of distribution revenues for reporting in accordance with gaap , but are excluded from adjusted oibda . 32 the following table presents our adjusted oibda , by segment , with a reconciliation of total consolidated adjusted oibda to consolidated operating income ( in millions ) . replace_table_token_10_th nm – not meaningful . u.s. networks the following table presents , for our u.s. networks segment , revenues by type , certain operating expenses , contra revenue amounts , adjusted oibda , and a reconciliation of adjusted oibda to operating income ( in millions ) . while the table below discloses reported amounts , the discussion of segment results that follows compares the current year operating results to the prior year 's excluding the impact of the discovery health network . replace_table_token_11_th nm – not meaningful . revenues distribution revenues increased $ 141 million , excluding the impact of the discovery health network , primarily due to the extension and expansion of an agreement to license selected library titles . as a result of titles delivered under this and similar agreements , license revenue increased $ 81 million . the remaining distribution revenue increase was attributable to annual contractual rate increases , and increases in paying subscribers , principally for our fully distributed networks carried on the digital tier . 33 advertising revenues increased $ 177 million , excluding the impact of discovery health network , which was driven by increased pricing in the upfront and scatter markets , and higher sellouts . advertising revenues also benefited from $ 13 million in non-recurring revenue items . other revenues increased $ 16 million , excluding the impact of the discovery health network , due to $ 32 million for the growth in revenues from services provided to our unconsolidated equity method investees . these increases were partially offset

cash flows changes in cash and cash equivalents were as follows ( in millions ) . replace_table_token_23_th changes in cash and cash equivalents include amounts related to discontinued operations . operating activities cash provided by operating activities increased $ 432 million for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in cash provided by operating activities was driven by increased operating results , a decrease in taxes paid , a decrease in interest payments , and decreases in stock compensation payments for cash settled equity awards . during 2010 , there was a $ 112 million overpayment of tax ( “2010 overpayment” ) resulting primarily from an extension of the tax law in the fourth quarter of 2010 that allowed for the immediate deduction of certain domestic programming costs . during 2011 , we received a $ 39 million tax refund related to the 2010 overpayment and there was a decrease in tax payments of $ 107 million primarily attributable to the use of the remaining overpayment carry forward from 2010. the decrease in interest payments was principally the result of $ 114 million of make-whole premiums paid in 2010 in connection with the refinancing of most of our outstanding debt . the $ 32 million decrease in payments for cash-settled equity awards was attributable to the decrease in number of outstanding unit awards and sars . these improvements were partially offset by a $ 110 million increase in cash used by operating activities attributable to investments in programming . cash provided by operating activities for the year ended december 31 , 2010 increased by $ 26 million as compared to the year ended december 31 , 2009. the increase in cash provided by operating activities was driven by increased earnings , principally from increased advertising and distribution revenues at our u.s. networks and international networks segments , and a decrease of $ 49 million in tax payments , principally due to a nonrecurring tax payment in 2009 related to the gain on the u.s. discovery kids transaction .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows changes in cash and cash equivalents were as follows ( in millions ) . replace_table_token_23_th changes in cash and cash equivalents include amounts related to discontinued operations . operating activities cash provided by operating activities increased $ 432 million for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in cash provided by operating activities was driven by increased operating results , a decrease in taxes paid , a decrease in interest payments , and decreases in stock compensation payments for cash settled equity awards . during 2010 , there was a $ 112 million overpayment of tax ( “2010 overpayment” ) resulting primarily from an extension of the tax law in the fourth quarter of 2010 that allowed for the immediate deduction of certain domestic programming costs . during 2011 , we received a $ 39 million tax refund related to the 2010 overpayment and there was a decrease in tax payments of $ 107 million primarily attributable to the use of the remaining overpayment carry forward from 2010. the decrease in interest payments was principally the result of $ 114 million of make-whole premiums paid in 2010 in connection with the refinancing of most of our outstanding debt . the $ 32 million decrease in payments for cash-settled equity awards was attributable to the decrease in number of outstanding unit awards and sars . these improvements were partially offset by a $ 110 million increase in cash used by operating activities attributable to investments in programming . cash provided by operating activities for the year ended december 31 , 2010 increased by $ 26 million as compared to the year ended december 31 , 2009. the increase in cash provided by operating activities was driven by increased earnings , principally from increased advertising and distribution revenues at our u.s. networks and international networks segments , and a decrease of $ 49 million in tax payments , principally due to a nonrecurring tax payment in 2009 related to the gain on the u.s. discovery kids transaction . ``` Suspicious Activity Report : of key strategic relationships with partners and equity method investee partners ; competitor responses to our products and services and the products and services of the entities in which we have interests ; threatened terrorist attacks and military action ; reduced access to capital markets or significant increases in costs to borrow ; a failure to secure affiliate agreements or renewal of such agreements on less favorable terms ; and a reduction of advertising revenue associated with unexpected reductions in the number of subscribers . for additional risk factors , refer to item 1a , “risk factors” . these forward-looking statements and such risks , uncertainties and other factors speak only as of the date of this annual report and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein , to reflect any change in our expectations with regard thereto , or any other change in events , conditions or circumstances on which any such statement is based . business overview we are a global nonfiction media and entertainment company that provides programming across multiple distribution platforms throughout the world . we distribute customized programming , in over 40 languages , in the u.s. and over 200 other countries and territories . our global portfolio of networks includes prominent television brands such as discovery channel , one of the first nonfiction networks and our most widely distributed global brand , tlc and animal planet . we also have a diversified portfolio of websites and other digital media services , develop and sell curriculum-based products and services , and provide postproduction audio services . our objectives are to invest in content for our networks to build viewership , optimize distribution revenue , capture advertising sales , and create or reposition additional branded channels and businesses that can sustain long-term growth and occupy a desired programming niche with strong consumer appeal . our strategy is to optimize the distribution , ratings , and profit potential of each of our branded networks . in addition to growing distribution and advertising revenue for our branded networks , we are extending content distribution across new platforms , including brand-aligned websites , mobile devices , vod , broadband channels and on-line streaming , which provide promotional platforms for our television programming and serve as additional outlets for advertising and distribution revenue . 25 our media content is designed to target key audience demographics and the popularity of our programming creates a reason for advertisers to purchase commercial time on our channels . audience ratings are a key driver in generating advertising revenue and creating demand on the part of cable television operators , dth satellite operators , and other content distributors to deliver our programming to their customers . we classify our operations in three segments : u.s. networks , consisting principally of domestic television networks , websites , and other digital media services ; international networks , consisting primarily of international television networks and websites ; and education and other , consisting principally of curriculum-based product and service offerings and postproduction audio services . u.s. networks u.s. networks generated net revenues of $ 2,619 million during 2011 , which represented 62 % of our total consolidated net revenues . this segment wholly owns and operates nine national television networks , including fully distributed television networks such as discovery channel , tlc and animal planet . in addition , this segment holds our interests in own , the hub , and 3net , which are networks operated by equity method investees . we account for our interests in the underlying ventures using the equity method and services provided to them as other revenue . u.s. networks generates revenues from fees charged to distributors of our network content , which include cable and dth satellite service providers and digital distributors , from advertising sold on our television networks and other arrangements . distribution fees are largely based on the number of subscribers receiving our programming . distribution revenues are recognized net of incentives we provide to operators in exchange for carrying our networks . incentives may include launch incentives , providing the channel to the distributor for free for a predetermined length of time , or both . launch incentives are capitalized as assets upon launch of our network by the operator and are amortized on a straight-line basis as a reduction of revenue over the term of the contract , including free periods . advertising revenues are dependent upon a number of factors including the number of subscribers to our channels , viewership demographics , the popularity of our programming , and our ability to sell commercial time over a group of channels . our u.s. networks segment also generates income to offset expenses associated with providing affiliate and advertising sales representation and network services for equity method investee networks and the licensing of our brands for consumer products . during 2011 , distribution , advertising , and other revenues were 45 % , 51 % , and 4 % , respectively , of total net revenues for this segment . the discovery channel , tlc and animal planet collectively generated 72 % of u.s. networks ' total net revenues . u.s. networks ' largest single cost is content expense , including content amortization , content impairments and production costs . u.s. networks amortizes the cost of capitalized content rights based on the proportion that current estimated revenues bear to the estimated remaining total lifetime revenues , which normally results in an accelerated amortization method over the estimated useful lives . certain networks utilize a straight-line method of amortization over the estimated useful lives of the content . on january 1 , 2011 , we contributed the domestic discovery health network to own . the contribution included affiliate relationships with cable operators and dth satellite service providers , content licenses , and website user information . story_separator_special_tag this incremental tax expense will be partially mitigated by the company 's ability to utilize foreign tax credits for taxes which were deducted in prior years . as a result , the company recognized an income tax benefit of $ 112 million in the fourth quarter of 2011 related to the foreign tax credits , which were previously not considered realizable . due to the lower statutory and negotiated tax rates in the foreign corporations ' jurisdictions , the company expects a favorable impact on the effective tax rate in the future under the new operating structure . our effective tax rate for 2010 differed from the federal statutory rate of 35 % due primarily to the reversal of a $ 28 million foreign tax reserve as a result of a foreign tax authority completing its tax audit and providing us notification that certain tax years will not be adjusted and production activity deductions , which were partially offset by state taxes . ( loss ) income from discontinued operations , net of taxes loss from discontinued operations in 2011 relates to activities connected with businesses classified as discontinued operations in previous years . income from discontinued operations in 2010 relates to the sale of our antenna audio business and the elimination of an obligation to acg an entity spun off in 2008 . 31 net income attributable to noncontrolling interests the $ 15 million decrease in net income attributable to noncontrolling interests was due to the acquisition of the bbc 's interests in the international animal planet and liv networks on november 12 , 2010. following the acquisition , we no longer allocate net operating results to noncontrolling interests of these networks . segment results of operations – 2011 vs. 2010 we evaluate the operating performance of our segments based on financial measures such as revenues and adjusted operating income before depreciation and amortization ( “adjusted oibda” ) . adjusted oibda is defined as revenues less costs of revenues and selling , general and administrative expenses excluding : ( i ) mark-to-market stock-based compensation , ( ii ) depreciation and amortization , ( iii ) amortization of deferred launch incentives , ( iv ) exit and restructuring charges , ( v ) certain impairment charges , and ( vi ) gains ( losses ) on business and asset dispositions . we use this measure to assess the operating results and performance of our segments , perform analytical comparisons , identify strategies to improve performance , and allocate resources to each segment . we believe adjusted oibda is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses . we exclude mark-to-market stock-based compensation , exit and restructuring charges , certain impairment charges , and gains ( losses ) on business and asset dispositions from the calculation of adjusted oibda due to their volatility . we also exclude the depreciation of fixed assets and amortization of intangible assets and deferred launch incentives as these amounts do not represent cash payments in the current reporting period . adjusted oibda should be considered in addition to , but not a substitute for , operating income , net income , cash flows provided by operating activities and other measures of financial performance reported in accordance with u.s. generally accepted accounting principles ( “gaap” ) . additionally , certain corporate expenses are excluded from segment results to enable executive management to evaluate segment performance based upon decisions made directly by segment executives . additional financial information for our segments and geographical areas in which we do business is discussed in note 21 to the consolidated financial statements included in item 8 , “financial statements and supplementary data” in this annual report on form 10-k. total consolidated adjusted oibda was calculated as follows ( in millions ) . replace_table_token_9_th nm – not meaningful . ( 1 ) costs of revenues and selling , general and administrative expenses exclude mark-to-market stock-based compensation , depreciation and amortization , restructuring and impairment charges , and gains on dispositions . ( 2 ) amortization of deferred launch incentives are included as a reduction of distribution revenues for reporting in accordance with gaap , but are excluded from adjusted oibda . 32 the following table presents our adjusted oibda , by segment , with a reconciliation of total consolidated adjusted oibda to consolidated operating income ( in millions ) . replace_table_token_10_th nm – not meaningful . u.s. networks the following table presents , for our u.s. networks segment , revenues by type , certain operating expenses , contra revenue amounts , adjusted oibda , and a reconciliation of adjusted oibda to operating income ( in millions ) . while the table below discloses reported amounts , the discussion of segment results that follows compares the current year operating results to the prior year 's excluding the impact of the discovery health network . replace_table_token_11_th nm – not meaningful . revenues distribution revenues increased $ 141 million , excluding the impact of the discovery health network , primarily due to the extension and expansion of an agreement to license selected library titles . as a result of titles delivered under this and similar agreements , license revenue increased $ 81 million . the remaining distribution revenue increase was attributable to annual contractual rate increases , and increases in paying subscribers , principally for our fully distributed networks carried on the digital tier . 33 advertising revenues increased $ 177 million , excluding the impact of discovery health network , which was driven by increased pricing in the upfront and scatter markets , and higher sellouts . advertising revenues also benefited from $ 13 million in non-recurring revenue items . other revenues increased $ 16 million , excluding the impact of the discovery health network , due to $ 32 million for the growth in revenues from services provided to our unconsolidated equity method investees . these increases were partially offset

actual results could differ from those estimates . significant estimates with regard to these financial statements include estimates of remaining proved natural gas and oil reserves , the timing and costs of our future drilling , development and abandonment activities , and income taxes . see “ item 1a . risk factors ” for a more detailed discussion of a number of other factors that affect our business , financial condition and results of operations . 52 going concern assessment as discussed below under “ capital resources and liquidity , ” our credit facility ( as defined below ) currently matures on october 1 , 2019. over the past few months , we have been in discussions with our current lenders and other sources of capital regarding a possible refinancing and or replacement of our existing credit facility . there is no assurance , however , that such discussions will result in a refinancing of the credit facility on acceptable terms , if at all , or provide any specific amount of additional liquidity for future capital expenditures . these conditions raise substantial doubt about our ability to continue as a going concern . however , the accompanying financial statements have been prepared assuming we will continue to operate as a going concern , which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the accompanying financial statements do not include adjustments that might result from the outcome of the uncertainty , including any adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should we be unable to continue as a going concern . as discussed below under “ capital resources and liquidity , ” management is evaluating plans to refinance and or replace the credit facility . results of operations the table below sets forth our average net daily production data in mmcfe/d from our fields for each of the periods indicated : replace_table_token_22_th ( 1 ) includes a decreased production rate of 4.2 mmcfe/d due to downtime related to compressor installation and maintenance during the three months ended june 30 , 2018. our gom production was not materially affected by hurricane michael which passed through the northeastern gom in october 2018 . ( 2 ) includes a decreased production rate of 0.8 mmcfe/d due to temporary pipeline limitations during the three months ended june 30 , 2017 and 0.5 mmcfe/d for the three months ended december 31 , 2018 . ( 3 ) south timbalier 17 ceased production in august 2017 . ( 4 ) includes woodbine production from madison and grimes counties and conventional production in others . decrease in production during three months ended december 31 , 2018 is primarily due to the liberty and hardin county property sale in november 2018 . ( 5 ) includes eagle ford and buda production from karnes , zavala and dimmit counties , and conventional production in others , prior to june 30 , 2018. does not include karnes county in the three months ended june 30 , 2018 and forward due to its sale in march 2018 . ( 6 ) includes onshore wells primarily in east texas and wyoming . 53 year ended december 31 , 2018 compared to year ended december 31 , 2017 the table below sets forth revenue , production data , average sales prices and average production costs associated with our sales of natural gas , oil and natural gas liquids ( `` ngls `` ) from continuing operations for the years ended december 31 , 2018 and 2017. oil , condensate and ngls are compared with natural gas in terms of cubic feet of natural gas equivalents . one barrel of oil , condensate or ngl is the energy equivalent of six mcf of natural gas . reported operating expenses include production taxes , such as ad valorem and severance . replace_table_token_23_th 54 replace_table_token_24_th 55 natural gas , oil and ngl sales and production all of our revenues are from the sale of our natural gas , crude oil and natural gas liquids production . our revenues may vary significantly from year to year depending on changes in commodity prices , which fluctuate widely , and production volumes . our production volumes are subject to wide swings as a result of new discoveries , weather and mechanical related problems . in addition , the production rate associated with our oil and gas properties declines over time as we produce our reserves . we reported revenues of approximately $ 77.1 million for the year ended december 31 , 2018 , compared to revenues of approximately $ 78.5 million for the year ended december 31 , 2017. this slight decrease in revenues was primarily due to a reduction in natural gas production attributable to 2018 non-core property sales , the expected year over year decline in our offshore properties and the reduction in our fourth quarter 2018 drilling program in response to declining oil prices ; declines which were substantially offset by the benefit of higher commodity prices in 2018. total production for the year ended december 31 , 2018 was approximately 16.0 bcfe , or 43.9 mmcfe/d , compared to approximately 20.1 bcfe , or 55.1 mmcfe/d , in the prior year . the decrease was attributable to an approximate 13 mmcfe/d decline in production resulting from normal field decline , an approximate 2 mmcfe/d decline due to non-core property sales , and an approximate 1 mmcfe/d decline due to shut-in periods at eugene island for compressor installation in june . partially offsetting these decreases in production was an increase of approximately 4 mmcfe/d of new production ( 88 % oil and ngls ) from drilling on our southern delaware basin acreage . story_separator_special_tag holding all other factors constant , a reduction in the company 's proved reserve estimate at december 31 , 2018 of 5 % , 10 % and 15 % would affect depreciation , depletion and amortization expense by approximately $ 0.4 million , $ 0.9 million and $ 1.4 million , respectively . impairment of natural gas and oil properties the company reviews its proved natural gas and oil properties for impairment whenever events and circumstances indicate a potential decline in the recoverability of their carrying value . an impairment loss associated with an asset group is the amount by which the carrying amount of a long-lived asset is not recoverable and exceeds its fair value . an asset 's fair value is preferably indicated by a quoted market price in the asset 's principal market . unlike many businesses where independent appraisals can be obtained for items such as equipment , oil and gas proved reserves are unique assets . most oil and gas valuations are based on a combination of the income approach and market approach methodologies . we utilize the income approach also known as the discounted cash flow ( “ dcf ” ) approach . under the dcf method in determining fair value , there are specific guidelines and ranges within the evaluation that we can consider and estimate . the company compares expected undiscounted future net cash flows from each field to the unamortized capitalized cost of the asset . if the future undiscounted net cash flows , based on the company 's estimate of future natural gas and oil prices and operating costs and anticipated production from proved reserves , are lower than the unamortized capitalized cost , then the capitalized cost is reduced to fair market value . the factors used to determine fair value include , but are not limited to , estimates of reserves , future commodity pricing , future production estimates and anticipated capital expenditures . unproved properties are reviewed quarterly to determine if there has been impairment of the carrying value , with any such impairment charged to expense in the period . drilling activities in an area by other companies may also effectively impair leasehold positions . given the complexities associated with natural gas and oil reserve estimates and the history of price volatility in the natural gas and oil markets , events may arise that will require the company to record an impairment of its natural gas and oil properties and there can be no assurance that such impairments will not be required in the future nor that they will not be material . assuming strip pricing as of march 1 , 2019 through 2023 and keeping pricing flat thereafter , instead of 2018 sec pricing , while leaving all other parameters unchanged , the company 's proved reserves would have been 84.8 bcfe and the pv-10 value of proved reserves would have been $ 145.4 million . 61 derivative instruments the company elected to not designate any of its derivative positions for hedge accounting at the end of each reporting period we record on our balance sheet the mark-to-market valuation of our derivative instruments . the estimated change in fair value of the derivatives , along with the realized gain or loss for settled derivatives , is reported in “ other income ( expense ) ” as “ gain on derivatives , net ” . income taxes income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes . deferred income taxes are measured by applying currently enacted tax rates to the differences between financial statements and income tax reporting . numerous judgments and assumptions are inherent in the determination of deferred income tax assets and liabilities as well as income taxes payable in the current period . we are subject to taxation in several jurisdictions , and the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions . accounting for uncertainty in income taxes prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return . for those benefits to be recognized , an income tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . in assessing the realizability of deferred tax assets , we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2018 , we had federal net operating loss ( “ nol ” ) carryforwards of $ 380.8 million . generally , these nols are available to reduce future taxable income and the related income tax liability subject to the limitations set forth in section 382. however , these nols are subject to an annual section 382 limitation as a result of the ownership change that occurred in connection with our stock offering in november 2018. given our annual section 382 limitation and the uncertainty of our ability to generate taxable income , a valuation allowance of $ 71.0 million has been recorded for the year ended december 31 , 2018 against the deferred tax assets , reduced by the amount of the deferred tax liability . our federal and state income tax returns are generally not filed before the consolidated financial statements are prepared . therefore , we estimate the tax basis of our assets and liabilities at the end of each period as well as the effects of tax rate changes , tax credits and net operating and capital loss carryforwards and carrybacks . adjustments related to differences between the estimates we used and actual amounts we reported are recorded in the period in

capital resources and liquidity our primary cash requirements are for capital expenditures , working capital , operating expenses , acquisitions and principal and interest payments on indebtedness . our primary sources of liquidity are cash generated by operations , net of the realized effect of our hedging agreements , and amounts available to be drawn under our credit facility . the table below summarizes certain measures of liquidity and capital expenditures , as well as our sources of capital from internal and external sources , for the periods indicated , in thousands . replace_table_token_26_th cash flow from operating activities , including changes in working capital , provided approximately $ 23.5 million in cash for the year ended december 31 , 2018 compared to $ 34.7 million for the year ended december 31 , 2017. cash flow from operating activities , excluding changes in working capital , provided approximately $ 22.1 million in cash for the year ended december 31 , 2018 compared to $ 29.6 million for the year ended december 31 , 2017. cash provided due to changes in working capital were approximately $ 1.4 million during 2018 , compared to $ 5.1 million during 2017 and represent normal receivable and payable activity during the period . net cash flows used in investing activities were $ 30.7 million for the year ended december 31 , 2018. we expended $ 59.0 million in cash capital costs , primarily related to drilling and or completing wells in the southern delaware basin and acquiring or extending unproved leases , partially offset by $ 27.8 million in cash proceeds from the sale of our non-core properties . net cash flows used in investing activities were $ 65.5 million for the year ended december 31 , 2017. we expended $ 66.6 million in cash capital costs , primarily related to drilling and or completing wells in the southern delaware basin and acquiring or extending unproved leases , partially offset by $ 1.1 million in cash proceeds from the sale of non-core 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. ```capital resources and liquidity our primary cash requirements are for capital expenditures , working capital , operating expenses , acquisitions and principal and interest payments on indebtedness . our primary sources of liquidity are cash generated by operations , net of the realized effect of our hedging agreements , and amounts available to be drawn under our credit facility . the table below summarizes certain measures of liquidity and capital expenditures , as well as our sources of capital from internal and external sources , for the periods indicated , in thousands . replace_table_token_26_th cash flow from operating activities , including changes in working capital , provided approximately $ 23.5 million in cash for the year ended december 31 , 2018 compared to $ 34.7 million for the year ended december 31 , 2017. cash flow from operating activities , excluding changes in working capital , provided approximately $ 22.1 million in cash for the year ended december 31 , 2018 compared to $ 29.6 million for the year ended december 31 , 2017. cash provided due to changes in working capital were approximately $ 1.4 million during 2018 , compared to $ 5.1 million during 2017 and represent normal receivable and payable activity during the period . net cash flows used in investing activities were $ 30.7 million for the year ended december 31 , 2018. we expended $ 59.0 million in cash capital costs , primarily related to drilling and or completing wells in the southern delaware basin and acquiring or extending unproved leases , partially offset by $ 27.8 million in cash proceeds from the sale of our non-core properties . net cash flows used in investing activities were $ 65.5 million for the year ended december 31 , 2017. we expended $ 66.6 million in cash capital costs , primarily related to drilling and or completing wells in the southern delaware basin and acquiring or extending unproved leases , partially offset by $ 1.1 million in cash proceeds from the sale of non-core properties . ``` Suspicious Activity Report : actual results could differ from those estimates . significant estimates with regard to these financial statements include estimates of remaining proved natural gas and oil reserves , the timing and costs of our future drilling , development and abandonment activities , and income taxes . see “ item 1a . risk factors ” for a more detailed discussion of a number of other factors that affect our business , financial condition and results of operations . 52 going concern assessment as discussed below under “ capital resources and liquidity , ” our credit facility ( as defined below ) currently matures on october 1 , 2019. over the past few months , we have been in discussions with our current lenders and other sources of capital regarding a possible refinancing and or replacement of our existing credit facility . there is no assurance , however , that such discussions will result in a refinancing of the credit facility on acceptable terms , if at all , or provide any specific amount of additional liquidity for future capital expenditures . these conditions raise substantial doubt about our ability to continue as a going concern . however , the accompanying financial statements have been prepared assuming we will continue to operate as a going concern , which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the accompanying financial statements do not include adjustments that might result from the outcome of the uncertainty , including any adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should we be unable to continue as a going concern . as discussed below under “ capital resources and liquidity , ” management is evaluating plans to refinance and or replace the credit facility . results of operations the table below sets forth our average net daily production data in mmcfe/d from our fields for each of the periods indicated : replace_table_token_22_th ( 1 ) includes a decreased production rate of 4.2 mmcfe/d due to downtime related to compressor installation and maintenance during the three months ended june 30 , 2018. our gom production was not materially affected by hurricane michael which passed through the northeastern gom in october 2018 . ( 2 ) includes a decreased production rate of 0.8 mmcfe/d due to temporary pipeline limitations during the three months ended june 30 , 2017 and 0.5 mmcfe/d for the three months ended december 31 , 2018 . ( 3 ) south timbalier 17 ceased production in august 2017 . ( 4 ) includes woodbine production from madison and grimes counties and conventional production in others . decrease in production during three months ended december 31 , 2018 is primarily due to the liberty and hardin county property sale in november 2018 . ( 5 ) includes eagle ford and buda production from karnes , zavala and dimmit counties , and conventional production in others , prior to june 30 , 2018. does not include karnes county in the three months ended june 30 , 2018 and forward due to its sale in march 2018 . ( 6 ) includes onshore wells primarily in east texas and wyoming . 53 year ended december 31 , 2018 compared to year ended december 31 , 2017 the table below sets forth revenue , production data , average sales prices and average production costs associated with our sales of natural gas , oil and natural gas liquids ( `` ngls `` ) from continuing operations for the years ended december 31 , 2018 and 2017. oil , condensate and ngls are compared with natural gas in terms of cubic feet of natural gas equivalents . one barrel of oil , condensate or ngl is the energy equivalent of six mcf of natural gas . reported operating expenses include production taxes , such as ad valorem and severance . replace_table_token_23_th 54 replace_table_token_24_th 55 natural gas , oil and ngl sales and production all of our revenues are from the sale of our natural gas , crude oil and natural gas liquids production . our revenues may vary significantly from year to year depending on changes in commodity prices , which fluctuate widely , and production volumes . our production volumes are subject to wide swings as a result of new discoveries , weather and mechanical related problems . in addition , the production rate associated with our oil and gas properties declines over time as we produce our reserves . we reported revenues of approximately $ 77.1 million for the year ended december 31 , 2018 , compared to revenues of approximately $ 78.5 million for the year ended december 31 , 2017. this slight decrease in revenues was primarily due to a reduction in natural gas production attributable to 2018 non-core property sales , the expected year over year decline in our offshore properties and the reduction in our fourth quarter 2018 drilling program in response to declining oil prices ; declines which were substantially offset by the benefit of higher commodity prices in 2018. total production for the year ended december 31 , 2018 was approximately 16.0 bcfe , or 43.9 mmcfe/d , compared to approximately 20.1 bcfe , or 55.1 mmcfe/d , in the prior year . the decrease was attributable to an approximate 13 mmcfe/d decline in production resulting from normal field decline , an approximate 2 mmcfe/d decline due to non-core property sales , and an approximate 1 mmcfe/d decline due to shut-in periods at eugene island for compressor installation in june . partially offsetting these decreases in production was an increase of approximately 4 mmcfe/d of new production ( 88 % oil and ngls ) from drilling on our southern delaware basin acreage . story_separator_special_tag holding all other factors constant , a reduction in the company 's proved reserve estimate at december 31 , 2018 of 5 % , 10 % and 15 % would affect depreciation , depletion and amortization expense by approximately $ 0.4 million , $ 0.9 million and $ 1.4 million , respectively . impairment of natural gas and oil properties the company reviews its proved natural gas and oil properties for impairment whenever events and circumstances indicate a potential decline in the recoverability of their carrying value . an impairment loss associated with an asset group is the amount by which the carrying amount of a long-lived asset is not recoverable and exceeds its fair value . an asset 's fair value is preferably indicated by a quoted market price in the asset 's principal market . unlike many businesses where independent appraisals can be obtained for items such as equipment , oil and gas proved reserves are unique assets . most oil and gas valuations are based on a combination of the income approach and market approach methodologies . we utilize the income approach also known as the discounted cash flow ( “ dcf ” ) approach . under the dcf method in determining fair value , there are specific guidelines and ranges within the evaluation that we can consider and estimate . the company compares expected undiscounted future net cash flows from each field to the unamortized capitalized cost of the asset . if the future undiscounted net cash flows , based on the company 's estimate of future natural gas and oil prices and operating costs and anticipated production from proved reserves , are lower than the unamortized capitalized cost , then the capitalized cost is reduced to fair market value . the factors used to determine fair value include , but are not limited to , estimates of reserves , future commodity pricing , future production estimates and anticipated capital expenditures . unproved properties are reviewed quarterly to determine if there has been impairment of the carrying value , with any such impairment charged to expense in the period . drilling activities in an area by other companies may also effectively impair leasehold positions . given the complexities associated with natural gas and oil reserve estimates and the history of price volatility in the natural gas and oil markets , events may arise that will require the company to record an impairment of its natural gas and oil properties and there can be no assurance that such impairments will not be required in the future nor that they will not be material . assuming strip pricing as of march 1 , 2019 through 2023 and keeping pricing flat thereafter , instead of 2018 sec pricing , while leaving all other parameters unchanged , the company 's proved reserves would have been 84.8 bcfe and the pv-10 value of proved reserves would have been $ 145.4 million . 61 derivative instruments the company elected to not designate any of its derivative positions for hedge accounting at the end of each reporting period we record on our balance sheet the mark-to-market valuation of our derivative instruments . the estimated change in fair value of the derivatives , along with the realized gain or loss for settled derivatives , is reported in “ other income ( expense ) ” as “ gain on derivatives , net ” . income taxes income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes . deferred income taxes are measured by applying currently enacted tax rates to the differences between financial statements and income tax reporting . numerous judgments and assumptions are inherent in the determination of deferred income tax assets and liabilities as well as income taxes payable in the current period . we are subject to taxation in several jurisdictions , and the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions . accounting for uncertainty in income taxes prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return . for those benefits to be recognized , an income tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . in assessing the realizability of deferred tax assets , we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2018 , we had federal net operating loss ( “ nol ” ) carryforwards of $ 380.8 million . generally , these nols are available to reduce future taxable income and the related income tax liability subject to the limitations set forth in section 382. however , these nols are subject to an annual section 382 limitation as a result of the ownership change that occurred in connection with our stock offering in november 2018. given our annual section 382 limitation and the uncertainty of our ability to generate taxable income , a valuation allowance of $ 71.0 million has been recorded for the year ended december 31 , 2018 against the deferred tax assets , reduced by the amount of the deferred tax liability . our federal and state income tax returns are generally not filed before the consolidated financial statements are prepared . therefore , we estimate the tax basis of our assets and liabilities at the end of each period as well as the effects of tax rate changes , tax credits and net operating and capital loss carryforwards and carrybacks . adjustments related to differences between the estimates we used and actual amounts we reported are recorded in the period in

we evaluate business segment cash flow and financial position performance based primarily upon capital expenditures and primary working capital levels ( see definition of primary working capital in “ liquidity and capital resources ” below ) . although we monitor the three elements of primary working capital ( receivables , inventory and payables ) , our primary focus is on the total amount due to the significant impact it has on our cash flow . 22 our management structure , financial reporting systems , and associated internal controls and procedures , are all consistent with our three geographic business segments . we report on a march 31 fiscal year-end . our financial results are largely driven by the following factors : global economic conditions and general cyclical patterns of the industries in which our customers operate ; changes in our selling prices and , in periods when our product costs increase , our ability to raise our selling prices to pass such cost increases through to our customers ; the extent to which we are able to efficiently utilize our global manufacturing facilities and optimize our capacity ; the extent to which we can control our fixed and variable costs , including those for our raw materials , manufacturing , distribution and operating activities ; changes in our level of debt and changes in the variable interest rates under our credit facilities ; and the size and number of acquisitions and our ability to achieve their intended benefits . we have two primary product lines : reserve power products and motive power products . net sales classifications by product line are as follows : reserve power products are used for backup power for the continuous operation of critical applications in telecommunications systems , uninterruptible power systems , or “ ups ” applications for computer and computer-controlled systems , and other specialty power applications , including security systems , premium starting , lighting and ignition applications , in switchgear , electrical control systems used in electric utilities , large-scale energy storage , energy pipelines , in commercial aircraft , satellites , military aircraft , submarines , ships and tactical vehicles . reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries . motive power products are used to provide power for electric industrial forklifts used in manufacturing , warehousing and other material handling applications as well as mining equipment , diesel locomotive starting and other rail equipment . during fiscal 2014 , we completed the acquisition of purcell systems , inc. , a designer , manufacturer and marketer of thermally managed electronic equipment and battery cabinet enclosures , headquartered in spokane , washington . we also completed the acquisition of quallion llc , a manufacturer of lithium ion cells and batteries for high integrity applications including implantable medical devices , defense , aviation and space , headquartered in sylmar , california . additionally , we completed the acquisition of uts holdings sdn . bhd . and its subsidiaries , a distributor of motive and reserve power battery products and services , headquartered in kuala lumpur , malaysia . current market conditions economic climate recent indicators continue to suggest a mixed trend in economic activity among the different geographical regions . the americas economic activity continues to strengthen . our overall asia region 's economic growth is slowing but has been positively impacted by increased capital spending in telecommunications . the emea economy appears to have stabilized and should experience flat to moderate growth . volatility of commodities and foreign currencies our most significant commodity and foreign currency exposures are related to lead and the euro . historically , volatility of commodity costs and foreign currency exchange rates have caused large swings in our production costs . as the global economic climate changes , we anticipate that our commodity costs may continue to fluctuate as they have in the past several years . overall , on a consolidated basis , we have experienced stable trends more recently in our revenue and order rates and commodity cost changes have not been substantial . customer pricing our selling prices fluctuated during the last several years to offset the volatile cost of commodities . approximately 35 % of our revenue is currently subject to agreements that adjust pricing to a market-based index for lead . during fiscal 2014 , our selling prices increased slightly , compared to the comparable prior year periods . liquidity and capital resources we believe that our financial position is strong and we have substantial liquidity with $ 240 million of available cash and cash equivalents and undrawn committed and uncommitted credit lines of approximately $ 360 million at march 31 , 2014 to cover 23 short-term liquidity requirements and anticipated growth in the foreseeable future . our $ 350 million 2011 senior secured revolving credit facility ( “ 2011 credit facility ” ) , which we entered into in march 2011 , is committed through september 2018 as long as we continue to comply with its covenants and conditions . the facility includes an early termination provision under which the company is required to meet a liquidity test in february 2015 related to its capacity to meet certain potential funding obligations of the $ 172.5 million convertible notes in june 2015 at a conversion price of $ 40.26. it is our current intent to settle the principal amount of any such conversion in cash , and any additional optional conversions in cash , shares of enersys common stock or a combination of cash and shares . current market conditions related to our liquidity and capital resources are favorable . story_separator_special_tag 27 results of operations—fiscal 2014 compared to fiscal 2013 the following table presents summary consolidated statement of income data for fiscal year ended march 31 , 2014 , compared to fiscal year ended march 31 , 2013 : replace_table_token_3_th nm = not meaningful overview our sales in fiscal 2014 were $ 2.5 billion , an 8.6 % increase from prior year 's sales primarily due to improvement in organic volume and acquisitions of approximately 5 % and 3 % , respectively . gross margin percentage in fiscal 2014 increased by 40 basis points to 25.4 % compared to fiscal 2013 , mainly due to organic volume of 5 % and improved pricing offsetting increased commodity costs . our fourth quarter gross margin was the highest compared to other quarters in the fiscal year . a discussion of specific fiscal 2014 versus fiscal 2013 operating results follows , including an analysis and discussion of the results of our reportable segments . net sales net sales by reportable segment were as follows : replace_table_token_4_th the americas segment 's revenue increased by $ 140.7 million or 12.5 % in fiscal 2014 , as compared to fiscal 2013 , primarily due to an increase in organic volume , acquisitions and pricing of approximately 7 % , 5 % and 1 % , respectively , partially offset by a negative currency translation impact of approximately 1 % . the emea segment 's revenue increased by $ 39.9 million or 4.3 % in fiscal 2014 , as compared to fiscal 2013 primarily due to an increase of 1 % each in organic volume and pricing and a 2 % increase due to currency translation impact . 28 the asia segment 's revenue increased by $ 16.2 million or 7.2 % in fiscal 2014 as compared to fiscal 2013 . higher organic volume and acquisitions contributed approximately 10 % and 2 % , respectively , partially offset by a decrease in pricing and currency translation impact of approximately 2 % and 3 % , respectively . net sales by product line were as follows : replace_table_token_5_th sales in our reserve power product line increased in fiscal 2014 by $ 115.4 million or 10.3 % compared to the prior year primarily due to acquisitions , higher organic volume and pricing which contributed approximately 6 % , 4 % and 1 % , respectively , offset by negative currency translation impact of 1 % . sales in our motive power product line increased in fiscal 2014 by $ 81.4 million or 7.0 % compared to the prior year primarily due to higher organic volume of approximately 6 % . gross profit replace_table_token_6_th gross profit increased $ 60.2 million or 10.6 % in fiscal 2014 compared to fiscal 2013 . gross profit , excluding the effect of foreign currency translation , increased $ 63 million or 11.1 % in fiscal 2014 compared to fiscal 2013 . this increase is primarily attributed to lower manufacturing costs resulting from higher volume and prior year 's restructuring activities along with improved pricing . we have made great efforts to sustain gross margin and continue to focus on a wide variety of sales initiatives , which include improving product mix to higher margin products and obtaining appropriate pricing for products relative to our costs . at the same time , we continue to focus on cost savings initiatives such as relocating production to low cost facilities and implementing more automation in our manufacturing plants . operating items replace_table_token_7_th nm = not meaningful operating expenses operating expenses increased $ 32.1 million or 10.3 % in fiscal 2014 from fiscal 2013 . operating expenses , excluding the effect of foreign currency translation , increased $ 33.1 million or 10.6 % in fiscal 2014 compared to fiscal 2013 . as a percentage of sales , operating expenses increased from 13.7 % in fiscal 2013 to 13.9 % in fiscal 2014 partially as a result of higher payroll related costs , including stock compensation expense . restructuring and other exit charges in fiscal 2014 , we recorded $ 27.4 million of restructuring charges , primarily for staff reductions and write-off of fixed assets and inventory in emea including relocating our motive power and a portion of our reserve power manufacturing from 29 bulgaria to our facilities in western europe . included in these charges are exit charges of $ 5.6 million related to certain operations in europe . in fiscal 2013 , we recorded $ 7.2 million of restructuring charges , primarily for staff reductions and asset write-offs in europe and asia . the fiscal 2013 and 2014 restructuring programs are expected to incur additional restructuring charges of approximately $ 8.2 million during fiscal 2015. legal proceedings charge in the fourth quarter of fiscal 2014 , we recorded a $ 58.2 million legal proceedings charge in connection with an adverse arbitration result involving disputes between our wholly-owned subsidiary , enersys delaware inc. ( “ edi ” ) , and altergy systems ( “ altergy ” ) . edi and altergy were parties to a supply and distribution agreement ( the “ sda ” ) pursuant to which edi was , among other things , granted the exclusive right to distribute and sell certain fuel cell products manufactured by altergy for various applications throughout the united states . commencing in 2011 , various disputes arose and , because of the mandatory arbitration provision in the sda , an arbitration action was filed by edi in november 2012 seeking arbitration of claims relating to the sda . in february 2013 , edi terminated the sda . following unsuccessful attempts to resolve their disputes by mediation in july 2013 , the parties moved forward with arbitration in august 2013 , where each party asserted various claims against the other . after discovery , a hearing and post-hearing submissions by each party , on may 13 , 2014 , the arbitration panel issued an award in favor of altergy . as a

cash flow and financing activities cash and cash equivalents at march 31 , 2014 , 2013 and 2012 , were $ 240.1 million , $ 249.3 million and $ 160.5 million , respectively . cash provided by operating activities for fiscal 2014 , 2013 and 2012 , was $ 193.6 million , $ 244.4 million and $ 204.2 million , respectively . during fiscal 2014 cash from operating activities was provided primarily from net earnings of $ 146.7 million , depreciation and amortization of $ 54.0 million , non-cash charges relating to write-off of goodwill and other assets of $ 10.2 million , restructuring charges of $ 11.5 million , a net source of $ 25.6 million from non-cash interest expense and stock compensation , $ 90.3 million from other accrued , including the legal proceedings charge of $ 58.2 million , were partially offset by cash used for the increase in primary working capital of $ 77.0 million and deferred taxes of $ 49.7 million , net of currency translation changes . during fiscal 2013 , cash from operating activities was provided primarily from net earnings of $ 165.0 million , depreciation and amortization of $ 50.5 million and a net source of $ 26.4 million from non-cash interest expense , provision for doubtful accounts , deferred taxes , net gains and settlements on derivatives , stock compensation , asset write-offs related to restructuring and losses on disposal of fixed assets . primary working capital improved by $ 9.9 million and was offset partially by a change in current and other assets , accrued expenses , and other liabilities of $ 7.4 million . 36 during fiscal 2012 , cash from operating activities was provided primarily from net earnings of $ 144.0

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flow and financing activities cash and cash equivalents at march 31 , 2014 , 2013 and 2012 , were $ 240.1 million , $ 249.3 million and $ 160.5 million , respectively . cash provided by operating activities for fiscal 2014 , 2013 and 2012 , was $ 193.6 million , $ 244.4 million and $ 204.2 million , respectively . during fiscal 2014 cash from operating activities was provided primarily from net earnings of $ 146.7 million , depreciation and amortization of $ 54.0 million , non-cash charges relating to write-off of goodwill and other assets of $ 10.2 million , restructuring charges of $ 11.5 million , a net source of $ 25.6 million from non-cash interest expense and stock compensation , $ 90.3 million from other accrued , including the legal proceedings charge of $ 58.2 million , were partially offset by cash used for the increase in primary working capital of $ 77.0 million and deferred taxes of $ 49.7 million , net of currency translation changes . during fiscal 2013 , cash from operating activities was provided primarily from net earnings of $ 165.0 million , depreciation and amortization of $ 50.5 million and a net source of $ 26.4 million from non-cash interest expense , provision for doubtful accounts , deferred taxes , net gains and settlements on derivatives , stock compensation , asset write-offs related to restructuring and losses on disposal of fixed assets . primary working capital improved by $ 9.9 million and was offset partially by a change in current and other assets , accrued expenses , and other liabilities of $ 7.4 million . 36 during fiscal 2012 , cash from operating activities was provided primarily from net earnings of $ 144.0 ``` Suspicious Activity Report : we evaluate business segment cash flow and financial position performance based primarily upon capital expenditures and primary working capital levels ( see definition of primary working capital in “ liquidity and capital resources ” below ) . although we monitor the three elements of primary working capital ( receivables , inventory and payables ) , our primary focus is on the total amount due to the significant impact it has on our cash flow . 22 our management structure , financial reporting systems , and associated internal controls and procedures , are all consistent with our three geographic business segments . we report on a march 31 fiscal year-end . our financial results are largely driven by the following factors : global economic conditions and general cyclical patterns of the industries in which our customers operate ; changes in our selling prices and , in periods when our product costs increase , our ability to raise our selling prices to pass such cost increases through to our customers ; the extent to which we are able to efficiently utilize our global manufacturing facilities and optimize our capacity ; the extent to which we can control our fixed and variable costs , including those for our raw materials , manufacturing , distribution and operating activities ; changes in our level of debt and changes in the variable interest rates under our credit facilities ; and the size and number of acquisitions and our ability to achieve their intended benefits . we have two primary product lines : reserve power products and motive power products . net sales classifications by product line are as follows : reserve power products are used for backup power for the continuous operation of critical applications in telecommunications systems , uninterruptible power systems , or “ ups ” applications for computer and computer-controlled systems , and other specialty power applications , including security systems , premium starting , lighting and ignition applications , in switchgear , electrical control systems used in electric utilities , large-scale energy storage , energy pipelines , in commercial aircraft , satellites , military aircraft , submarines , ships and tactical vehicles . reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries . motive power products are used to provide power for electric industrial forklifts used in manufacturing , warehousing and other material handling applications as well as mining equipment , diesel locomotive starting and other rail equipment . during fiscal 2014 , we completed the acquisition of purcell systems , inc. , a designer , manufacturer and marketer of thermally managed electronic equipment and battery cabinet enclosures , headquartered in spokane , washington . we also completed the acquisition of quallion llc , a manufacturer of lithium ion cells and batteries for high integrity applications including implantable medical devices , defense , aviation and space , headquartered in sylmar , california . additionally , we completed the acquisition of uts holdings sdn . bhd . and its subsidiaries , a distributor of motive and reserve power battery products and services , headquartered in kuala lumpur , malaysia . current market conditions economic climate recent indicators continue to suggest a mixed trend in economic activity among the different geographical regions . the americas economic activity continues to strengthen . our overall asia region 's economic growth is slowing but has been positively impacted by increased capital spending in telecommunications . the emea economy appears to have stabilized and should experience flat to moderate growth . volatility of commodities and foreign currencies our most significant commodity and foreign currency exposures are related to lead and the euro . historically , volatility of commodity costs and foreign currency exchange rates have caused large swings in our production costs . as the global economic climate changes , we anticipate that our commodity costs may continue to fluctuate as they have in the past several years . overall , on a consolidated basis , we have experienced stable trends more recently in our revenue and order rates and commodity cost changes have not been substantial . customer pricing our selling prices fluctuated during the last several years to offset the volatile cost of commodities . approximately 35 % of our revenue is currently subject to agreements that adjust pricing to a market-based index for lead . during fiscal 2014 , our selling prices increased slightly , compared to the comparable prior year periods . liquidity and capital resources we believe that our financial position is strong and we have substantial liquidity with $ 240 million of available cash and cash equivalents and undrawn committed and uncommitted credit lines of approximately $ 360 million at march 31 , 2014 to cover 23 short-term liquidity requirements and anticipated growth in the foreseeable future . our $ 350 million 2011 senior secured revolving credit facility ( “ 2011 credit facility ” ) , which we entered into in march 2011 , is committed through september 2018 as long as we continue to comply with its covenants and conditions . the facility includes an early termination provision under which the company is required to meet a liquidity test in february 2015 related to its capacity to meet certain potential funding obligations of the $ 172.5 million convertible notes in june 2015 at a conversion price of $ 40.26. it is our current intent to settle the principal amount of any such conversion in cash , and any additional optional conversions in cash , shares of enersys common stock or a combination of cash and shares . current market conditions related to our liquidity and capital resources are favorable . story_separator_special_tag 27 results of operations—fiscal 2014 compared to fiscal 2013 the following table presents summary consolidated statement of income data for fiscal year ended march 31 , 2014 , compared to fiscal year ended march 31 , 2013 : replace_table_token_3_th nm = not meaningful overview our sales in fiscal 2014 were $ 2.5 billion , an 8.6 % increase from prior year 's sales primarily due to improvement in organic volume and acquisitions of approximately 5 % and 3 % , respectively . gross margin percentage in fiscal 2014 increased by 40 basis points to 25.4 % compared to fiscal 2013 , mainly due to organic volume of 5 % and improved pricing offsetting increased commodity costs . our fourth quarter gross margin was the highest compared to other quarters in the fiscal year . a discussion of specific fiscal 2014 versus fiscal 2013 operating results follows , including an analysis and discussion of the results of our reportable segments . net sales net sales by reportable segment were as follows : replace_table_token_4_th the americas segment 's revenue increased by $ 140.7 million or 12.5 % in fiscal 2014 , as compared to fiscal 2013 , primarily due to an increase in organic volume , acquisitions and pricing of approximately 7 % , 5 % and 1 % , respectively , partially offset by a negative currency translation impact of approximately 1 % . the emea segment 's revenue increased by $ 39.9 million or 4.3 % in fiscal 2014 , as compared to fiscal 2013 primarily due to an increase of 1 % each in organic volume and pricing and a 2 % increase due to currency translation impact . 28 the asia segment 's revenue increased by $ 16.2 million or 7.2 % in fiscal 2014 as compared to fiscal 2013 . higher organic volume and acquisitions contributed approximately 10 % and 2 % , respectively , partially offset by a decrease in pricing and currency translation impact of approximately 2 % and 3 % , respectively . net sales by product line were as follows : replace_table_token_5_th sales in our reserve power product line increased in fiscal 2014 by $ 115.4 million or 10.3 % compared to the prior year primarily due to acquisitions , higher organic volume and pricing which contributed approximately 6 % , 4 % and 1 % , respectively , offset by negative currency translation impact of 1 % . sales in our motive power product line increased in fiscal 2014 by $ 81.4 million or 7.0 % compared to the prior year primarily due to higher organic volume of approximately 6 % . gross profit replace_table_token_6_th gross profit increased $ 60.2 million or 10.6 % in fiscal 2014 compared to fiscal 2013 . gross profit , excluding the effect of foreign currency translation , increased $ 63 million or 11.1 % in fiscal 2014 compared to fiscal 2013 . this increase is primarily attributed to lower manufacturing costs resulting from higher volume and prior year 's restructuring activities along with improved pricing . we have made great efforts to sustain gross margin and continue to focus on a wide variety of sales initiatives , which include improving product mix to higher margin products and obtaining appropriate pricing for products relative to our costs . at the same time , we continue to focus on cost savings initiatives such as relocating production to low cost facilities and implementing more automation in our manufacturing plants . operating items replace_table_token_7_th nm = not meaningful operating expenses operating expenses increased $ 32.1 million or 10.3 % in fiscal 2014 from fiscal 2013 . operating expenses , excluding the effect of foreign currency translation , increased $ 33.1 million or 10.6 % in fiscal 2014 compared to fiscal 2013 . as a percentage of sales , operating expenses increased from 13.7 % in fiscal 2013 to 13.9 % in fiscal 2014 partially as a result of higher payroll related costs , including stock compensation expense . restructuring and other exit charges in fiscal 2014 , we recorded $ 27.4 million of restructuring charges , primarily for staff reductions and write-off of fixed assets and inventory in emea including relocating our motive power and a portion of our reserve power manufacturing from 29 bulgaria to our facilities in western europe . included in these charges are exit charges of $ 5.6 million related to certain operations in europe . in fiscal 2013 , we recorded $ 7.2 million of restructuring charges , primarily for staff reductions and asset write-offs in europe and asia . the fiscal 2013 and 2014 restructuring programs are expected to incur additional restructuring charges of approximately $ 8.2 million during fiscal 2015. legal proceedings charge in the fourth quarter of fiscal 2014 , we recorded a $ 58.2 million legal proceedings charge in connection with an adverse arbitration result involving disputes between our wholly-owned subsidiary , enersys delaware inc. ( “ edi ” ) , and altergy systems ( “ altergy ” ) . edi and altergy were parties to a supply and distribution agreement ( the “ sda ” ) pursuant to which edi was , among other things , granted the exclusive right to distribute and sell certain fuel cell products manufactured by altergy for various applications throughout the united states . commencing in 2011 , various disputes arose and , because of the mandatory arbitration provision in the sda , an arbitration action was filed by edi in november 2012 seeking arbitration of claims relating to the sda . in february 2013 , edi terminated the sda . following unsuccessful attempts to resolve their disputes by mediation in july 2013 , the parties moved forward with arbitration in august 2013 , where each party asserted various claims against the other . after discovery , a hearing and post-hearing submissions by each party , on may 13 , 2014 , the arbitration panel issued an award in favor of altergy . as a

we also do not offer loans that provide for negative amortization of principal , such as `` option arm `` loans , where the borrower can pay less than the interest owed on his or her loan , resulting in an increased principal balance during the life of the loan . we do not offer `` subprime loans `` ( loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies , previous charge-offs , judgments , bankruptcies , or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios ) or alt-a loans ( generally defined as loans having less than full documentation ) . our securities are typically high-quality securities issued or guaranteed by the u.s. government or by freddie mac , fannie mae or ginnie mae , all of which are u.s. government-sponsored enterprises . critical accounting policies we consider accounting policies that require management to exercise significant judgment or discretion or make significant assumptions that have , or could have , a material impact on the carrying 46 value of certain assets or on income , to be critical accounting policies . we consider the following to be our critical accounting policies : allowance for loan losses . our allowance for loan losses is the estimated amount considered necessary to reflect probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged against income . in determining the allowance for loan losses , management makes significant estimates and has identified this policy as one of the most critical for us . the methodology for determining the allowance for loan losses is considered a critical accounting policy by management due to the high degree of judgment involved , the subjectivity of the assumptions utilized and the potential for changes in the economic environment that could result in changes to the amount of the recorded allowance for loan losses . as a substantial amount of our loan portfolio is collateralized by real estate , appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans . assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties . overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined . the assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans . management performs a quarterly evaluation of the allowance for loan losses . the analysis of the allowance for loan losses has two components : specific and general allocations . specific allocations are made for loans that are determined to be impaired . impairment loss is measured by determining the present value of expected future cash flows or , for collateral-dependent loans , the fair value of the collateral adjusted for market conditions and selling expenses . the general allocation is determined by segregating classified loans from the remaining loans , and then categorizing each group by type of loan . loans within each type exhibit common characteristics including terms , collateral type , and other risk characteristics . in determining the amount of the allowance for loan losses , we apply loss factors to each category of loan . we estimate our loss factors taking into consideration both quantitative and qualitative aspects that would affect our estimation of probable incurred losses . these aspects include , but are not limited to historical charge-offs ; loan delinquencies and foreclosure trends ; current economic trends and demographic data within oconee county and the other surrounding areas , such as unemployment rates and population trends ; current trends in real estate values within the oconee county market area ; charge-off trends of other comparable institutions ; the results of any internal loan reviews ; loan-to-value ratios ; our historically conservative credit risk policy ; the strength of our underwriting and ongoing credit monitoring function ; and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions . actual loan losses may be significantly more than the allowance for loan losses we have established , which could have a material negative effect on our financial results . deferred income taxes . we use the asset and liability method of accounting for income taxes . under this method , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . 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 . if current available information raises doubt as to the realization of the deferred tax assets , a valuation allowance is established . these judgments and estimates are reviewed on a continual basis as regulatory and business factors change . real estate owned valuation . real estate acquired through loan foreclosure is carried at the lower of carrying amount or fair value less estimated costs to sell . any initial losses at the time of foreclosure 47 are charged against the allowance for loan losses . valuation of these assets are periodically reviewed by management with the carrying value of such assets adjusted through non-interest expense to the then estimated fair value , net of estimated selling costs , if lower , until disposition . story_separator_special_tag esop expense increased $ 47 thousand , or 21.7 % , to $ 264 thousand for the year ended june 30 , 2013 from $ 217 thousand for the year ended june 30 , 2012 , which was primarily a result of increases in our stock prices during the year ended 2013 used in determining compensation expense for esop shares earned . stock based compensation expense for the year ended june 30 , 2013 was $ 227 thousand compared with $ 57 thousand for the year ended june 30 , 2012. the reason was due to the fact that we did not recognize a full year 's expense related to our equity incentive plans during the year ended june 30 , 2012 because the initial grant of options and awards under the equity incentive plans occurred in the third quarter of that fiscal year and expenses associated with options and awards are recognized ratably over the vesting period . the remaining portion of the increase is related to the addition of a new banking officer to serve as the company 's controller and pay increases of approximately 5 % for each employee . income tax expense . the provision for income taxes was $ 2.4 million for year ended june 30 , 2013 compared with $ 2.6 million at june 30 , 2012. our effective tax rates for the years ended june 30 , 2013 and 2012 were and , respectively . the decrease in our effective tax rates is primarily related to the increase income from bank owned life insurance , which is not taxable for income tax purposes . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the 51 tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_25_th 52 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_26_th replace_table_token_27_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management , which meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . 53 the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on market conditions , from time to time we place more emphasis on enhancing net interest margin rather than matching the interest rate sensitivity of our assets and liabilities . in particular , we believe that the increased net interest income resulting from a mismatch in the maturity of our assets and liabilities portfolios can , during periods of stable or declining interest rates , provide high enough returns to justify increased exposure to sudden and unexpected increases in interest rates . as a result of this philosophy , our results of operations and the economic value of our equity will remain vulnerable to increases in interest rates and to declines due to the difference between long- and short-term interest rates . an important measure of interest rate risk is the amount by which the net present value of ( `` npv `` ) an institution 's cash

liquidity and capital resources our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 6.2 million for the year ended june 30 , 2013 and $ 5.1 million for the year ended june 30 , 2012. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were $ 4.7 million for the year ended june 30 , 2013 and $ 17.1 million for the year ended june 30 , 2012. net cash flows used in investing activities consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows used in financing activities were $ 11.1 million for the year ended june 30 , 2013 and $ 1.3 million for the year ended june 30 , 2012. net cash flows used in financing activities consisted primarily of the payment of dividends and share repurchases of our common stock . the increase of $ 9.8 million is primarily related to the $ 7.8 million of share repurchases for the year ended june 30 , 2013. our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2013 and 2012 , cash and short-term investments totaled $ 37.9 million and $ 47.6 million , respectively . we may also utilize as sources of funds the sale of securities available-for-sale , federal funds purchased , federal home loan bank of atlanta advances and other borrowings .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 6.2 million for the year ended june 30 , 2013 and $ 5.1 million for the year ended june 30 , 2012. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were $ 4.7 million for the year ended june 30 , 2013 and $ 17.1 million for the year ended june 30 , 2012. net cash flows used in investing activities consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows used in financing activities were $ 11.1 million for the year ended june 30 , 2013 and $ 1.3 million for the year ended june 30 , 2012. net cash flows used in financing activities consisted primarily of the payment of dividends and share repurchases of our common stock . the increase of $ 9.8 million is primarily related to the $ 7.8 million of share repurchases for the year ended june 30 , 2013. our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2013 and 2012 , cash and short-term investments totaled $ 37.9 million and $ 47.6 million , respectively . we may also utilize as sources of funds the sale of securities available-for-sale , federal funds purchased , federal home loan bank of atlanta advances and other borrowings . ``` Suspicious Activity Report : we also do not offer loans that provide for negative amortization of principal , such as `` option arm `` loans , where the borrower can pay less than the interest owed on his or her loan , resulting in an increased principal balance during the life of the loan . we do not offer `` subprime loans `` ( loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies , previous charge-offs , judgments , bankruptcies , or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios ) or alt-a loans ( generally defined as loans having less than full documentation ) . our securities are typically high-quality securities issued or guaranteed by the u.s. government or by freddie mac , fannie mae or ginnie mae , all of which are u.s. government-sponsored enterprises . critical accounting policies we consider accounting policies that require management to exercise significant judgment or discretion or make significant assumptions that have , or could have , a material impact on the carrying 46 value of certain assets or on income , to be critical accounting policies . we consider the following to be our critical accounting policies : allowance for loan losses . our allowance for loan losses is the estimated amount considered necessary to reflect probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged against income . in determining the allowance for loan losses , management makes significant estimates and has identified this policy as one of the most critical for us . the methodology for determining the allowance for loan losses is considered a critical accounting policy by management due to the high degree of judgment involved , the subjectivity of the assumptions utilized and the potential for changes in the economic environment that could result in changes to the amount of the recorded allowance for loan losses . as a substantial amount of our loan portfolio is collateralized by real estate , appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans . assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties . overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined . the assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans . management performs a quarterly evaluation of the allowance for loan losses . the analysis of the allowance for loan losses has two components : specific and general allocations . specific allocations are made for loans that are determined to be impaired . impairment loss is measured by determining the present value of expected future cash flows or , for collateral-dependent loans , the fair value of the collateral adjusted for market conditions and selling expenses . the general allocation is determined by segregating classified loans from the remaining loans , and then categorizing each group by type of loan . loans within each type exhibit common characteristics including terms , collateral type , and other risk characteristics . in determining the amount of the allowance for loan losses , we apply loss factors to each category of loan . we estimate our loss factors taking into consideration both quantitative and qualitative aspects that would affect our estimation of probable incurred losses . these aspects include , but are not limited to historical charge-offs ; loan delinquencies and foreclosure trends ; current economic trends and demographic data within oconee county and the other surrounding areas , such as unemployment rates and population trends ; current trends in real estate values within the oconee county market area ; charge-off trends of other comparable institutions ; the results of any internal loan reviews ; loan-to-value ratios ; our historically conservative credit risk policy ; the strength of our underwriting and ongoing credit monitoring function ; and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions . actual loan losses may be significantly more than the allowance for loan losses we have established , which could have a material negative effect on our financial results . deferred income taxes . we use the asset and liability method of accounting for income taxes . under this method , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . 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 . if current available information raises doubt as to the realization of the deferred tax assets , a valuation allowance is established . these judgments and estimates are reviewed on a continual basis as regulatory and business factors change . real estate owned valuation . real estate acquired through loan foreclosure is carried at the lower of carrying amount or fair value less estimated costs to sell . any initial losses at the time of foreclosure 47 are charged against the allowance for loan losses . valuation of these assets are periodically reviewed by management with the carrying value of such assets adjusted through non-interest expense to the then estimated fair value , net of estimated selling costs , if lower , until disposition . story_separator_special_tag esop expense increased $ 47 thousand , or 21.7 % , to $ 264 thousand for the year ended june 30 , 2013 from $ 217 thousand for the year ended june 30 , 2012 , which was primarily a result of increases in our stock prices during the year ended 2013 used in determining compensation expense for esop shares earned . stock based compensation expense for the year ended june 30 , 2013 was $ 227 thousand compared with $ 57 thousand for the year ended june 30 , 2012. the reason was due to the fact that we did not recognize a full year 's expense related to our equity incentive plans during the year ended june 30 , 2012 because the initial grant of options and awards under the equity incentive plans occurred in the third quarter of that fiscal year and expenses associated with options and awards are recognized ratably over the vesting period . the remaining portion of the increase is related to the addition of a new banking officer to serve as the company 's controller and pay increases of approximately 5 % for each employee . income tax expense . the provision for income taxes was $ 2.4 million for year ended june 30 , 2013 compared with $ 2.6 million at june 30 , 2012. our effective tax rates for the years ended june 30 , 2013 and 2012 were and , respectively . the decrease in our effective tax rates is primarily related to the increase income from bank owned life insurance , which is not taxable for income tax purposes . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the 51 tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_25_th 52 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_26_th replace_table_token_27_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management , which meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . 53 the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on market conditions , from time to time we place more emphasis on enhancing net interest margin rather than matching the interest rate sensitivity of our assets and liabilities . in particular , we believe that the increased net interest income resulting from a mismatch in the maturity of our assets and liabilities portfolios can , during periods of stable or declining interest rates , provide high enough returns to justify increased exposure to sudden and unexpected increases in interest rates . as a result of this philosophy , our results of operations and the economic value of our equity will remain vulnerable to increases in interest rates and to declines due to the difference between long- and short-term interest rates . an important measure of interest rate risk is the amount by which the net present value of ( `` npv `` ) an institution 's cash

adcetris reported the five-year update of the phase 3 echelon-1 clinical trial which showed treatment with adcetris in combination with avd resulted in superior long-term outcomes when compared to abvd , which includes bleomycin , in frontline advanced hodgkin lymphoma . expanded clinical program including initiation of phase 3 trial in relapsed and refractory diffuse large b-cell lymphoma and expanded a trial in frontline hodgkin lymphoma to evaluate stage i and ii patients . expanded indication approved in the european union and first approval in china for our partner takeda . padcev commercial launch with astellas , for patients with previously treated metastatic urothelial cancer , following fda approval in december 2019 . 86 announced positive topline results from ev-301 phase 3 trial showing that padcev significantly improved overall survival in previously treated metastatic urothelial cancer patients . data to support global marketing applications . announced positive topline results from second cohort of ev-201 pivotal trial . data to support additional indication in the u.s. initiated ev-302 phase 3 trial in first-line metastatic urothelial cancer in combination with pembrolizumab . received breakthrough therapy designation in first-line advanced urothelial cancer for padcev in combination with pembrolizumab . tukysa commercial launch following fda approval for patients with previously treated metastatic her2-positive breast cancer , including patients with brain metastases in april 2020. received ex-u.s. regulatory approvals in australia , canada , singapore and switzerland under the project orbis initiative of the fda oncology center of excellence . received marketing authorization in the european union in february 2021. entered into exclusive license and co-development agreement with merck to commercialize tukysa in asia , the middle east and latin america and other regions outside of the u.s. , canada and europe . pipeline announced positive results from tisotumab vedotin pivotal trial in patients with previously treated recurrent or metastatic cervical cancer . data used to support approval application submitted in the u.s. in february 2021. entered into a global co-development and co-commercialization agreement with merck for our drug candidate ladiratuzumab vedotin . initiated phase 1 trials of two novel drug candidates , sgn-b6a and sea-tgt . also refer to part i item 1 “ business ” for more information about our products , pipeline , technologies , research programs , and future plans for our clinical programs , including recent key business achievements . outlook we recognize revenue from adcetris product sales in the u.s. and canada , and padcev and tukysa products sales in th e u.s. while we anticipate that sales of adcetris will increase in 2021 as compared to 2020 , we have experienced and expect continued impacts associated with the covid-19 pandemic , which appear to be reducing the rate of hodgkin lymphoma diagnoses , and an increase in gross-to-net deductions that we believe is due to a shift in the locations where adcetris is administered , which has increased the proportion of adcetris sales through the federal 340b drug discount program . we expect that , going forward , our ability to maintain or continue to grow our adcetris sales , if at all , will depend primarily on our ability to establish or demonstrate to the medical community the value of adcetris and its potential advantages compared to existing and future therapeutics in its approved indications , including in the frontline hodgkin lymphoma indication , and the extent to which physicians make prescribing decisions with respect to adcetris . other important factors affecting our adcetris sales include the incidence flow of patients eligible for treatment in adcetris ' approved indications , the extent to which coverage and adequate levels of reimbursement for adcetris are available from governments and other third-party payors , the impact of any healthcare reform measures that may be upheld , or adopted in the future , including measures that could result in more rigorous coverage criteria or reduce the price that we receive for adcetris , increasing competition from competing therapies including pembrolizumab in multiple indications , including in the relapsed or refractory classical hodgkin lymphoma indication , impacts resulting from the evolving effects of the covid-19 pandemic including lower diagnosis rates , and the potential future approval of adcetris in any additional indications . for these reasons , we can not assure you that adcetris sales will continue to grow or that we can maintain sales of adcetris at or near current levels . in addition , as a result of these and other factors , our future adcetris product sales can be difficult to accurately predict from period to period . our ability to realize the anticipated benefits from our investment in padcev is subject to a number of risks and uncertainties , including our and astellas ' ability to successfully jointly market and commercialize padcev in the u.s. in its approved indication , the extent to which we and astellas are able to obtain regulatory approvals of padcev in 87 additional indications in the u.s. , including in the frontline metastatic urothelial cancer setting , and in territories outside the u.s. , our ability and astellas ' ability to successfully comply with rigorous post-marketing requirements , including obtaining the fda 's agreement as to the confirmation of clinical benefit of padcev based on the results of the ev-301 clinical trial , the acceptance of padcev by the medical community and patients , the extent to which physicians make prescribing decisions with respect to padcev , the incidence flow of patients eligible for treatment in padcev 's approved indication , the duration of therapy for patients receiving padcev , the extent to which coverage and adequate levels of reimbursement for padcev are available from governments and other third-party payors , the impact of any healthcare reform measures that may be adopted in the future , including measures that could potentially result in more rigorous coverage criteria and additional downward pressure on the price that we receive for padcev , potential competition from competing therapies , the impact of conducting launch activities virtually story_separator_special_tag we provide financial assistance to qualifying patients that are underinsured or can not cover the cost of commercial coinsurance amounts through our patient support programs . estimated contributions for commercial coinsurance under seagen secure are deducted from gross sales and are based on an analysis of expected plan utilization . these estimates are adjusted as necessary to reflect our actual experience . 91 royalty revenues royalty revenues primarily reflect amounts earned under the adcetris collaboration with takeda . these royalties include commercial sales-based milestones and sales royalties that relate predominantly to the license of intellectual property . sales royalties are based on a percentage of takeda 's net sales of adcetris , with rates that range from the mid-teens to the mid-twenties based on annual net sales tiers . takeda bears a portion of low single digit third-party royalty costs owed on its sales of adcetris . this amount is included in royalty revenues . amounts owed to our third-party licensors related to takeda 's sales of adcetris are recorded in cost of sales . these amounts are recognized in the period in which the related sales by takeda occur . royalty revenues also reflect amounts from genentech , inc. , a member of the roche group , or genentech , earned on net sales of polivy , and amounts from glaxosmithkline earned on net sales of blenrep . collaboration and license agreement revenues we have collaboration and license agreements for our technology with a number of biotechnology and pharmaceutical companies . under these agreements , we typically receive or are entitled to receive upfront cash payments and progress- and sales-dependent milestones for the achievement by our licensees of certain events , and annual maintenance fees and support fees for research and development services and materials provided under the agreements . we also are entitled to receive royalties on net sales of any resulting products incorporating our technology . our licensees are solely responsible for research , product development , manufacturing and commercialization of any product candidates under these collaborations , which includes the achievement of the potential milestones . since we may not take a substantive role or control the research , development or commercialization of any products generated by some of our licensees , we may not able to reasonably estimate when , if at all , any potential future milestone payments or royalties may be payable to us by our licensees . as such , the potential future milestone payments associated with certain of our collaboration and license agreements involve a substantial degree of uncertainty and risk that they may never be received . collaboration and license agreements are initially evaluated as to whether the intellectual property licenses granted by us represent distinct performance obligations . if they are determined to be distinct , the value of the intellectual property licenses would be recognized up-front while the research and development service fees would be recognized as the performance obligations are satisfied . variable consideration is assessed at each reporting period as to whether it is not subject to future reversal of cumulative revenue and , therefore , should be included in the transaction price . assessing the recognition of variable consideration requires significant judgment . if a contract includes a fixed or minimum amount of research and development support , this also would be included in the transaction price . changes to collaboration and license agreements , such as the extensions of the research term or increasing the number of targets or technology covered under an existing agreement , are assessed for whether they represent a modification or should be accounted for as a new contract . we have concluded that the license of intellectual property in certain collaboration and license agreements is not distinct from the perspective of our customers at the time of initial transfer , since we often do not license intellectual property without related technology transfer and research and development support services . such evaluation requires significant judgment since it is made from the customer 's perspective . our performance obligations under our collaborations may include such things as providing intellectual property licenses , performing technology transfer , performing research and development consulting services , providing reagents , adcs , and other materials , and notifying the customer of any enhancements to licensed technology or new technology that we discover , among others . we determined our performance obligations under certain collaboration and license agreements as evaluated at contract inception were not distinct and represented a single performance obligation . for those agreements , revenue is recognized using a proportional performance model , representing the transfer of goods or services as activities are performed over the term of the agreement . upfront payments are also amortized to revenue over the performance period . upfront payment contract liabilities resulting from our collaborations do not represent a financing component as the payment is not financing the transfer of goods or services , and the technology underlying the licenses granted reflects research and development expenses already incurred by us . for agreements beyond the initial performance period , we have no remaining performance obligations . we may receive license maintenance fees and potential milestones and royalties based on collaborator development and regulatory progress , which are recorded in the period achieved in the case of milestones , and during the period of the related sales for royalties . 92 when no performance obligations are required of us , or following the completion of the performance obligation period , such amounts are recognized upon transfer of control of the goods or services to the customer . generally , all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues . sales-based milestones and royalties are recognized as royalty revenue in the period the related sale occurred . we generally invoice our collaborators and licensees on a monthly or quarterly basis , or upon the completion of the effort or

liquidity and capital resources replace_table_token_8_th replace_table_token_9_th the change in net cash from operating activities from 2020 as compared to 2019 primarily was related to the change in our net income ( loss ) , working capital fluctuations and changes in our non-cash expenses , all of which are highly variable . the increase in cash provided by operating activities was primarily driven by $ 975.2 million in collaboration and lice nse agreement revenues recognized related to the agreements we entered into with merck during 2020. the change in net cash from investing activities from 2020 as compared to 2019 reflected differences between the proceeds received from sale and maturity of our investments and amounts reinvested , and the difference for purchases of property , plant , and equipment . the change in net cash from financing activities included proceeds from issuances of common stock , the exercise of options to purchase shares of our common stock , and common stock sales under our employee stock purchase plan for all years presented . we primarily have financed our operations through the issuance of our common stock , collections from commercial sales of our products , amounts received pursuant to license and collaboration agreements , and royalty revenues . to a lesser degree , we also have financed our operations through investment income . these financing and revenue sources have allowed us to maintain adequate levels of cash and investments . our cash , cash equivalents , and investments are held in a variety of non-interest bearing bank accounts and interest-bearing instruments subject to investment guidelines allowing for holdings in u.s. government and agency securities , corporate securities , taxable municipal bonds , commercial paper and money market accounts . our investment portfolio is structured to provide for investment maturities and access to cash to fund our anticipated working capital needs .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 replace_table_token_9_th the change in net cash from operating activities from 2020 as compared to 2019 primarily was related to the change in our net income ( loss ) , working capital fluctuations and changes in our non-cash expenses , all of which are highly variable . the increase in cash provided by operating activities was primarily driven by $ 975.2 million in collaboration and lice nse agreement revenues recognized related to the agreements we entered into with merck during 2020. the change in net cash from investing activities from 2020 as compared to 2019 reflected differences between the proceeds received from sale and maturity of our investments and amounts reinvested , and the difference for purchases of property , plant , and equipment . the change in net cash from financing activities included proceeds from issuances of common stock , the exercise of options to purchase shares of our common stock , and common stock sales under our employee stock purchase plan for all years presented . we primarily have financed our operations through the issuance of our common stock , collections from commercial sales of our products , amounts received pursuant to license and collaboration agreements , and royalty revenues . to a lesser degree , we also have financed our operations through investment income . these financing and revenue sources have allowed us to maintain adequate levels of cash and investments . our cash , cash equivalents , and investments are held in a variety of non-interest bearing bank accounts and interest-bearing instruments subject to investment guidelines allowing for holdings in u.s. government and agency securities , corporate securities , taxable municipal bonds , commercial paper and money market accounts . our investment portfolio is structured to provide for investment maturities and access to cash to fund our anticipated working capital needs . ``` Suspicious Activity Report : adcetris reported the five-year update of the phase 3 echelon-1 clinical trial which showed treatment with adcetris in combination with avd resulted in superior long-term outcomes when compared to abvd , which includes bleomycin , in frontline advanced hodgkin lymphoma . expanded clinical program including initiation of phase 3 trial in relapsed and refractory diffuse large b-cell lymphoma and expanded a trial in frontline hodgkin lymphoma to evaluate stage i and ii patients . expanded indication approved in the european union and first approval in china for our partner takeda . padcev commercial launch with astellas , for patients with previously treated metastatic urothelial cancer , following fda approval in december 2019 . 86 announced positive topline results from ev-301 phase 3 trial showing that padcev significantly improved overall survival in previously treated metastatic urothelial cancer patients . data to support global marketing applications . announced positive topline results from second cohort of ev-201 pivotal trial . data to support additional indication in the u.s. initiated ev-302 phase 3 trial in first-line metastatic urothelial cancer in combination with pembrolizumab . received breakthrough therapy designation in first-line advanced urothelial cancer for padcev in combination with pembrolizumab . tukysa commercial launch following fda approval for patients with previously treated metastatic her2-positive breast cancer , including patients with brain metastases in april 2020. received ex-u.s. regulatory approvals in australia , canada , singapore and switzerland under the project orbis initiative of the fda oncology center of excellence . received marketing authorization in the european union in february 2021. entered into exclusive license and co-development agreement with merck to commercialize tukysa in asia , the middle east and latin america and other regions outside of the u.s. , canada and europe . pipeline announced positive results from tisotumab vedotin pivotal trial in patients with previously treated recurrent or metastatic cervical cancer . data used to support approval application submitted in the u.s. in february 2021. entered into a global co-development and co-commercialization agreement with merck for our drug candidate ladiratuzumab vedotin . initiated phase 1 trials of two novel drug candidates , sgn-b6a and sea-tgt . also refer to part i item 1 “ business ” for more information about our products , pipeline , technologies , research programs , and future plans for our clinical programs , including recent key business achievements . outlook we recognize revenue from adcetris product sales in the u.s. and canada , and padcev and tukysa products sales in th e u.s. while we anticipate that sales of adcetris will increase in 2021 as compared to 2020 , we have experienced and expect continued impacts associated with the covid-19 pandemic , which appear to be reducing the rate of hodgkin lymphoma diagnoses , and an increase in gross-to-net deductions that we believe is due to a shift in the locations where adcetris is administered , which has increased the proportion of adcetris sales through the federal 340b drug discount program . we expect that , going forward , our ability to maintain or continue to grow our adcetris sales , if at all , will depend primarily on our ability to establish or demonstrate to the medical community the value of adcetris and its potential advantages compared to existing and future therapeutics in its approved indications , including in the frontline hodgkin lymphoma indication , and the extent to which physicians make prescribing decisions with respect to adcetris . other important factors affecting our adcetris sales include the incidence flow of patients eligible for treatment in adcetris ' approved indications , the extent to which coverage and adequate levels of reimbursement for adcetris are available from governments and other third-party payors , the impact of any healthcare reform measures that may be upheld , or adopted in the future , including measures that could result in more rigorous coverage criteria or reduce the price that we receive for adcetris , increasing competition from competing therapies including pembrolizumab in multiple indications , including in the relapsed or refractory classical hodgkin lymphoma indication , impacts resulting from the evolving effects of the covid-19 pandemic including lower diagnosis rates , and the potential future approval of adcetris in any additional indications . for these reasons , we can not assure you that adcetris sales will continue to grow or that we can maintain sales of adcetris at or near current levels . in addition , as a result of these and other factors , our future adcetris product sales can be difficult to accurately predict from period to period . our ability to realize the anticipated benefits from our investment in padcev is subject to a number of risks and uncertainties , including our and astellas ' ability to successfully jointly market and commercialize padcev in the u.s. in its approved indication , the extent to which we and astellas are able to obtain regulatory approvals of padcev in 87 additional indications in the u.s. , including in the frontline metastatic urothelial cancer setting , and in territories outside the u.s. , our ability and astellas ' ability to successfully comply with rigorous post-marketing requirements , including obtaining the fda 's agreement as to the confirmation of clinical benefit of padcev based on the results of the ev-301 clinical trial , the acceptance of padcev by the medical community and patients , the extent to which physicians make prescribing decisions with respect to padcev , the incidence flow of patients eligible for treatment in padcev 's approved indication , the duration of therapy for patients receiving padcev , the extent to which coverage and adequate levels of reimbursement for padcev are available from governments and other third-party payors , the impact of any healthcare reform measures that may be adopted in the future , including measures that could potentially result in more rigorous coverage criteria and additional downward pressure on the price that we receive for padcev , potential competition from competing therapies , the impact of conducting launch activities virtually story_separator_special_tag we provide financial assistance to qualifying patients that are underinsured or can not cover the cost of commercial coinsurance amounts through our patient support programs . estimated contributions for commercial coinsurance under seagen secure are deducted from gross sales and are based on an analysis of expected plan utilization . these estimates are adjusted as necessary to reflect our actual experience . 91 royalty revenues royalty revenues primarily reflect amounts earned under the adcetris collaboration with takeda . these royalties include commercial sales-based milestones and sales royalties that relate predominantly to the license of intellectual property . sales royalties are based on a percentage of takeda 's net sales of adcetris , with rates that range from the mid-teens to the mid-twenties based on annual net sales tiers . takeda bears a portion of low single digit third-party royalty costs owed on its sales of adcetris . this amount is included in royalty revenues . amounts owed to our third-party licensors related to takeda 's sales of adcetris are recorded in cost of sales . these amounts are recognized in the period in which the related sales by takeda occur . royalty revenues also reflect amounts from genentech , inc. , a member of the roche group , or genentech , earned on net sales of polivy , and amounts from glaxosmithkline earned on net sales of blenrep . collaboration and license agreement revenues we have collaboration and license agreements for our technology with a number of biotechnology and pharmaceutical companies . under these agreements , we typically receive or are entitled to receive upfront cash payments and progress- and sales-dependent milestones for the achievement by our licensees of certain events , and annual maintenance fees and support fees for research and development services and materials provided under the agreements . we also are entitled to receive royalties on net sales of any resulting products incorporating our technology . our licensees are solely responsible for research , product development , manufacturing and commercialization of any product candidates under these collaborations , which includes the achievement of the potential milestones . since we may not take a substantive role or control the research , development or commercialization of any products generated by some of our licensees , we may not able to reasonably estimate when , if at all , any potential future milestone payments or royalties may be payable to us by our licensees . as such , the potential future milestone payments associated with certain of our collaboration and license agreements involve a substantial degree of uncertainty and risk that they may never be received . collaboration and license agreements are initially evaluated as to whether the intellectual property licenses granted by us represent distinct performance obligations . if they are determined to be distinct , the value of the intellectual property licenses would be recognized up-front while the research and development service fees would be recognized as the performance obligations are satisfied . variable consideration is assessed at each reporting period as to whether it is not subject to future reversal of cumulative revenue and , therefore , should be included in the transaction price . assessing the recognition of variable consideration requires significant judgment . if a contract includes a fixed or minimum amount of research and development support , this also would be included in the transaction price . changes to collaboration and license agreements , such as the extensions of the research term or increasing the number of targets or technology covered under an existing agreement , are assessed for whether they represent a modification or should be accounted for as a new contract . we have concluded that the license of intellectual property in certain collaboration and license agreements is not distinct from the perspective of our customers at the time of initial transfer , since we often do not license intellectual property without related technology transfer and research and development support services . such evaluation requires significant judgment since it is made from the customer 's perspective . our performance obligations under our collaborations may include such things as providing intellectual property licenses , performing technology transfer , performing research and development consulting services , providing reagents , adcs , and other materials , and notifying the customer of any enhancements to licensed technology or new technology that we discover , among others . we determined our performance obligations under certain collaboration and license agreements as evaluated at contract inception were not distinct and represented a single performance obligation . for those agreements , revenue is recognized using a proportional performance model , representing the transfer of goods or services as activities are performed over the term of the agreement . upfront payments are also amortized to revenue over the performance period . upfront payment contract liabilities resulting from our collaborations do not represent a financing component as the payment is not financing the transfer of goods or services , and the technology underlying the licenses granted reflects research and development expenses already incurred by us . for agreements beyond the initial performance period , we have no remaining performance obligations . we may receive license maintenance fees and potential milestones and royalties based on collaborator development and regulatory progress , which are recorded in the period achieved in the case of milestones , and during the period of the related sales for royalties . 92 when no performance obligations are required of us , or following the completion of the performance obligation period , such amounts are recognized upon transfer of control of the goods or services to the customer . generally , all amounts received or due other than sales-based milestones and royalties are classified as collaboration and license agreement revenues . sales-based milestones and royalties are recognized as royalty revenue in the period the related sale occurred . we generally invoice our collaborators and licensees on a monthly or quarterly basis , or upon the completion of the effort or

our components of sales were as follows : replace_table_token_6_th orv sales of $ 2,909.0 million in 2014 , which include core atv , ranger and rzr side-by-side vehicles , and the company 's new ace category , increased 15 percent from 2013 . this increase reflects continued market share gains for both atvs and side-by-side vehicles driven by strong consumer enthusiasm for our orv offerings , including an expanded line-up of innovative new models and the introduction of the new ace category . polaris ' north american orv unit retail sales to consumers increased low-double digits percent for 2014 compared to 2013 , with atv unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing double-digits percent over the prior year . the company 's new ace category , introduced early in 2014 , accelerated its retail sales sequentially throughout 2014. north american dealer inventories of orvs increased high-teens percent from 2013 , in support of dealer stocking levels for premium and value segments for atv rfm and new ace categories . orv sales outside of north america increased mid-teens percent in 2014 compared to 2013 resulting from market share gains . for 2014 , the average orv per unit sales price increased four percent over 2013 's per unit sales price , primarily as a result of the increased sales of higher priced side-by-side vehicle models . orv sales of $ 2,521.5 million in 2013 , which include core atv and ranger and rzr side-by-side vehicles , increased 13 percent from 2012. this increase reflects continued market share gains for both atvs and side-by-side vehicles driven by strong consumer enthusiasm for our orv offerings , including an expanded line-up of innovative new atvs and side-by-side vehicles introduced in the 2013 third and fourth quarters . polaris ' north american orv unit retail sales to consumers increased high-single digits percent for 2013 compared to 2012 , with atv unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing more than ten percent over the prior year . north american dealer inventories of orvs increased mid-teens percent from 2012 , in support of continued strong retail demand for side-by-side vehicles and incremental new market segments . orv sales outside of north america increased 25 nine percent in 2013 compared to 2012 resulting in market share gains . for 2013 , the average orv per unit sales price increased seven percent over 2012 's per unit sales price , primarily as a result of the increased sales of higher priced side-by-side vehicle models . snowmobile sales increased seven percent to $ 322.4 million for 2014 compared to 2013 . this increase is primarily due to the early snowfall and colder weather in north america and the success of the new axys chassis platform models introduced in 2014. retail sales to consumers for the 2014-2015 season-to-date period through december 31 , 2014 , increased high-teens percent . sales of snowmobiles to customers outside of north america , principally within the scandinavian region and russia , decreased 28 percent in 2014 as compared to 2013 due primarily to economic weakness in the region . the average unit sales price in 2014 was approximately flat when compared to 2013 . snowmobile sales increased seven percent to $ 301.7 million for 2013 compared to 2012. this increase is primarily due to lower dealer inventory coming out of the 2012-2013 snowmobile season and success of the model year 2014 new product introductions . retail sales to consumers for the 2013-2014 season-to-date period through december 31 , 2013 , increased nearly ten percent . sales of snowmobiles to customers outside of north america , principally within the scandinavian region and russia , increased 18 percent in 2013 as compared to 2012. the average unit sales price in 2013 decreased two percent when compared to 2012 , resulting primarily from increased sales of our value-priced snowmobiles . sales of motorcycles , which is comprised of victory and indian motorcycles , and the all-new roadster , slingshot , increased 59 percent to $ 348.7 million for 2014 compared to 2013 . the increase in 2014 sales is due to the continued high demand for indian motorcycles including the new 2015 roadmaster and the company 's first mid-sized motorcycle , scout , and initial shipments of the slingshot . north american industry heavyweight cruiser and touring motorcycle retail sales ( which excludes slingshot ) increased low-single digits percent in 2014 compared to 2013 . over the same period , polaris north american unit retail sales to consumers increased almost 40 percent , driven primarily by continued strong retail sales for indian motorcycles and initial retail sales of slingshot . north american polaris motorcycle dealer inventory increased mid-teens digits percent in 2014 versus 2013 levels primarily due to stocking of the indian motorcycles and slingshot . sales of motorcycles to customers outside of north america increased over 70 percent in 2014 compared to 2013 . the average per unit sales price for the motorcycles division in 2014 increased nine percent compared to 2013 due to the increased sales of higher priced indian motorcycles and initial sales of slingshot . sales of motorcycles , which was comprised of victory and indian motorcycles in 2013 , increased 12 percent to $ 219.8 million for 2013 compared to 2012. the increase in 2013 sales is due to the initial shipments of the new model year 2014 indian motorcycles . north american industry heavyweight cruiser and touring motorcycle retail sales increased mid-single digits percent in 2013 compared to 2012. over the same period , polaris north american unit retail sales to consumers increased over 20 percent , driven by an unprecedented number of new product introductions in 2013 , which includes three new indian motorcycle models . north american polaris motorcycle dealer inventory increased high-single digits percent in 2013 versus 2012 levels due to stocking of the new indian motorcycles . story_separator_special_tag we recognize in the financial statements the grant-date fair value of stock options and other equity-based compensation issued to employees . determining the appropriate fair-value model and calculating 31 the fair value of share-based awards at the date of grant requires judgment . the company utilizes the black-scholes option pricing model to estimate the fair value of employee stock options . option pricing models , including the black-scholes model , also require the use of input assumptions , including expected volatility , expected life , expected dividend rate , and expected risk-free rate of return . the company utilizes historical volatility as it believes this is reflective of market conditions . the expected life of the awards is based on historical exercise patterns . the risk-free interest rate assumption is based on observed interest rates appropriate for the terms of awards . the dividend yield assumption is based on our history of dividend payouts . we develop an estimate of the number of share-based awards that will be forfeited due to employee turnover . changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation , as the effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed . if the actual forfeiture rate is higher or lower than the estimated forfeiture rate , then an adjustment is made to increase or decrease the estimated forfeiture rate , which will result in a decrease or increase to the expense recognized in the financial statements . if forfeiture adjustments are made , they would affect our gross margin and operating expenses . we estimate the likelihood and the rate of achievement for performance share-based awards , specifically long-term compensation grants of performance-based restricted stock awards . changes in the estimated rate of achievement can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level is recognized in the period that the likelihood factor changes . if adjustments in the estimated rate of achievement are made , they would be reflected in our gross margin and operating expenses . at the end of 2014 , if all long-term incentive program performance based awards were expected to achieve the maximum payout , we would have recorded an additional $ 7.5 million of expense in 2014. fluctuations in our stock price can have a significant effect on reported share-based compensation expenses for liability-based awards . the impact from fluctuations in our stock price is recognized in the period of the change , and is reflected in our gross margin and operating expenses . at december 31 , 2014 , the accrual for liability-based awards outstanding was $ 15.2 million , and is included in accrued compensation in the consolidated balance sheets . product warranties . we provide a limited warranty for orvs for a period of six months , for a period of one year for our snowmobiles , for a period of one or two years for our motorcycles depending on brand and model year , and two years for svs . we provide longer warranties in certain geographical markets as determined by local regulations and market conditions and may provide longer warranties related to certain promotional programs . our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumers . the warranty reserve is established at the time of sale to the dealer or distributor based on management 's best estimate using historical rates and trends . we record these amounts as a liability in the consolidated balance sheet until they are ultimately paid . at december 31 , 2014 and 2013 , the accrued warranty liability was $ 53.1 million and $ 52.8 million , respectively . adjustments to the warranty reserve are made from time to time based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date . while management believes that the warranty reserve is adequate and that the judgment applied is appropriate , such amounts estimated to be due and payable could differ materially from what will ultimately transpire in the future . product liability . we are subject to product liability claims in the normal course of business . in late 2012 , we purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date . we self-insure product liability claims up to the purchased catastrophic insurance coverage . the estimated costs resulting from any uninsured losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable . we utilize historical trends and actuarial analysis tools , along with an analysis of current claims , to assist in determining the appropriate loss reserve levels . at december 31 , 2014 and 2013 , we had accruals of $ 17.3 million and $ 17.1 million , respectively , for the probable payment of pending claims related to continuing operations product liability litigation associated with our products . these accruals are included in other accrued expenses in the consolidated balance sheets . while management believes the product liability reserves are adequate , adverse determination of material product liability claims made against us could have a material adverse effect on our financial condition . new accounting pronouncements see item 8 of part ii , “ financial statements and supplementary data—note 1—organization and significant accounting policies —new accounting pronouncements . ” 32 liquidity and capital resources our primary source of funds has been cash provided by operating activities . our primary uses of funds have been for acquisitions , repurchase and retirement of common stock , capital investment , new product development and cash dividends to shareholders . the following table summarizes the cash flows from operating , investing

net cash provided by operating activities totaled $ 529.3 million and $ 492.2 million in 2014 and 2013 , respectively . the $ 37.1 million increase in net cash provided by operating activities in 2014 is primarily the result of higher net income compared to 2013 , which includes a $ 35.4 million increase in depreciation and amortization , partially offset by a $ 44.5 million increase in deferred income taxes and a $ 15.8 million increase in net working capital . changes in working capital ( as reflected in our statements of cash flows ) for the year ended 2014 was an increase of $ 15.6 million , compared to an increase of $ 0.2 million in 2013. this was primarily due to an increase in net cash used of $ 106.4 million related to higher inventory required to support the growth in the business , offset by an increase in net cash provided related to timing of payments made for accounts payable of $ 54.3 million and the timing of collections of trade receivables of $ 29.9 million . investing activities : net cash used for investing activities was $ 246.8 million in 2014 compared to $ 406.7 million in 2013 . the primary uses of cash in 2014 were the acquisitions of kolpin and pro armor and capital expenditures for the purchase of property and equipment . in 2014 , we made large capital expenditures related to the expansion of many of our north america locations , including our manufacturing facilities in spirit lake , iowa ; milford , iowa ; roseau , minnesota ; and monterrey , mexico , as well as the construction of our new manufacturing facility in opole , poland . we expect that capital expenditures for 2015 will be in excess of $ 250 million . financing activities : net cash used for financing activities was $ 222.6 million in 2014 compared to $ 409.0 million in 2013 . we paid cash dividends of $ 126.9 million and $ 113.7 million in 2014 and 2013 , respectively . total common stock repurchased in 2014 and 2013 totaled $ 81.8 million and $ 530.0

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 totaled $ 529.3 million and $ 492.2 million in 2014 and 2013 , respectively . the $ 37.1 million increase in net cash provided by operating activities in 2014 is primarily the result of higher net income compared to 2013 , which includes a $ 35.4 million increase in depreciation and amortization , partially offset by a $ 44.5 million increase in deferred income taxes and a $ 15.8 million increase in net working capital . changes in working capital ( as reflected in our statements of cash flows ) for the year ended 2014 was an increase of $ 15.6 million , compared to an increase of $ 0.2 million in 2013. this was primarily due to an increase in net cash used of $ 106.4 million related to higher inventory required to support the growth in the business , offset by an increase in net cash provided related to timing of payments made for accounts payable of $ 54.3 million and the timing of collections of trade receivables of $ 29.9 million . investing activities : net cash used for investing activities was $ 246.8 million in 2014 compared to $ 406.7 million in 2013 . the primary uses of cash in 2014 were the acquisitions of kolpin and pro armor and capital expenditures for the purchase of property and equipment . in 2014 , we made large capital expenditures related to the expansion of many of our north america locations , including our manufacturing facilities in spirit lake , iowa ; milford , iowa ; roseau , minnesota ; and monterrey , mexico , as well as the construction of our new manufacturing facility in opole , poland . we expect that capital expenditures for 2015 will be in excess of $ 250 million . financing activities : net cash used for financing activities was $ 222.6 million in 2014 compared to $ 409.0 million in 2013 . we paid cash dividends of $ 126.9 million and $ 113.7 million in 2014 and 2013 , respectively . total common stock repurchased in 2014 and 2013 totaled $ 81.8 million and $ 530.0 ``` Suspicious Activity Report : our components of sales were as follows : replace_table_token_6_th orv sales of $ 2,909.0 million in 2014 , which include core atv , ranger and rzr side-by-side vehicles , and the company 's new ace category , increased 15 percent from 2013 . this increase reflects continued market share gains for both atvs and side-by-side vehicles driven by strong consumer enthusiasm for our orv offerings , including an expanded line-up of innovative new models and the introduction of the new ace category . polaris ' north american orv unit retail sales to consumers increased low-double digits percent for 2014 compared to 2013 , with atv unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing double-digits percent over the prior year . the company 's new ace category , introduced early in 2014 , accelerated its retail sales sequentially throughout 2014. north american dealer inventories of orvs increased high-teens percent from 2013 , in support of dealer stocking levels for premium and value segments for atv rfm and new ace categories . orv sales outside of north america increased mid-teens percent in 2014 compared to 2013 resulting from market share gains . for 2014 , the average orv per unit sales price increased four percent over 2013 's per unit sales price , primarily as a result of the increased sales of higher priced side-by-side vehicle models . orv sales of $ 2,521.5 million in 2013 , which include core atv and ranger and rzr side-by-side vehicles , increased 13 percent from 2012. this increase reflects continued market share gains for both atvs and side-by-side vehicles driven by strong consumer enthusiasm for our orv offerings , including an expanded line-up of innovative new atvs and side-by-side vehicles introduced in the 2013 third and fourth quarters . polaris ' north american orv unit retail sales to consumers increased high-single digits percent for 2013 compared to 2012 , with atv unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing more than ten percent over the prior year . north american dealer inventories of orvs increased mid-teens percent from 2012 , in support of continued strong retail demand for side-by-side vehicles and incremental new market segments . orv sales outside of north america increased 25 nine percent in 2013 compared to 2012 resulting in market share gains . for 2013 , the average orv per unit sales price increased seven percent over 2012 's per unit sales price , primarily as a result of the increased sales of higher priced side-by-side vehicle models . snowmobile sales increased seven percent to $ 322.4 million for 2014 compared to 2013 . this increase is primarily due to the early snowfall and colder weather in north america and the success of the new axys chassis platform models introduced in 2014. retail sales to consumers for the 2014-2015 season-to-date period through december 31 , 2014 , increased high-teens percent . sales of snowmobiles to customers outside of north america , principally within the scandinavian region and russia , decreased 28 percent in 2014 as compared to 2013 due primarily to economic weakness in the region . the average unit sales price in 2014 was approximately flat when compared to 2013 . snowmobile sales increased seven percent to $ 301.7 million for 2013 compared to 2012. this increase is primarily due to lower dealer inventory coming out of the 2012-2013 snowmobile season and success of the model year 2014 new product introductions . retail sales to consumers for the 2013-2014 season-to-date period through december 31 , 2013 , increased nearly ten percent . sales of snowmobiles to customers outside of north america , principally within the scandinavian region and russia , increased 18 percent in 2013 as compared to 2012. the average unit sales price in 2013 decreased two percent when compared to 2012 , resulting primarily from increased sales of our value-priced snowmobiles . sales of motorcycles , which is comprised of victory and indian motorcycles , and the all-new roadster , slingshot , increased 59 percent to $ 348.7 million for 2014 compared to 2013 . the increase in 2014 sales is due to the continued high demand for indian motorcycles including the new 2015 roadmaster and the company 's first mid-sized motorcycle , scout , and initial shipments of the slingshot . north american industry heavyweight cruiser and touring motorcycle retail sales ( which excludes slingshot ) increased low-single digits percent in 2014 compared to 2013 . over the same period , polaris north american unit retail sales to consumers increased almost 40 percent , driven primarily by continued strong retail sales for indian motorcycles and initial retail sales of slingshot . north american polaris motorcycle dealer inventory increased mid-teens digits percent in 2014 versus 2013 levels primarily due to stocking of the indian motorcycles and slingshot . sales of motorcycles to customers outside of north america increased over 70 percent in 2014 compared to 2013 . the average per unit sales price for the motorcycles division in 2014 increased nine percent compared to 2013 due to the increased sales of higher priced indian motorcycles and initial sales of slingshot . sales of motorcycles , which was comprised of victory and indian motorcycles in 2013 , increased 12 percent to $ 219.8 million for 2013 compared to 2012. the increase in 2013 sales is due to the initial shipments of the new model year 2014 indian motorcycles . north american industry heavyweight cruiser and touring motorcycle retail sales increased mid-single digits percent in 2013 compared to 2012. over the same period , polaris north american unit retail sales to consumers increased over 20 percent , driven by an unprecedented number of new product introductions in 2013 , which includes three new indian motorcycle models . north american polaris motorcycle dealer inventory increased high-single digits percent in 2013 versus 2012 levels due to stocking of the new indian motorcycles . story_separator_special_tag we recognize in the financial statements the grant-date fair value of stock options and other equity-based compensation issued to employees . determining the appropriate fair-value model and calculating 31 the fair value of share-based awards at the date of grant requires judgment . the company utilizes the black-scholes option pricing model to estimate the fair value of employee stock options . option pricing models , including the black-scholes model , also require the use of input assumptions , including expected volatility , expected life , expected dividend rate , and expected risk-free rate of return . the company utilizes historical volatility as it believes this is reflective of market conditions . the expected life of the awards is based on historical exercise patterns . the risk-free interest rate assumption is based on observed interest rates appropriate for the terms of awards . the dividend yield assumption is based on our history of dividend payouts . we develop an estimate of the number of share-based awards that will be forfeited due to employee turnover . changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation , as the effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed . if the actual forfeiture rate is higher or lower than the estimated forfeiture rate , then an adjustment is made to increase or decrease the estimated forfeiture rate , which will result in a decrease or increase to the expense recognized in the financial statements . if forfeiture adjustments are made , they would affect our gross margin and operating expenses . we estimate the likelihood and the rate of achievement for performance share-based awards , specifically long-term compensation grants of performance-based restricted stock awards . changes in the estimated rate of achievement can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level is recognized in the period that the likelihood factor changes . if adjustments in the estimated rate of achievement are made , they would be reflected in our gross margin and operating expenses . at the end of 2014 , if all long-term incentive program performance based awards were expected to achieve the maximum payout , we would have recorded an additional $ 7.5 million of expense in 2014. fluctuations in our stock price can have a significant effect on reported share-based compensation expenses for liability-based awards . the impact from fluctuations in our stock price is recognized in the period of the change , and is reflected in our gross margin and operating expenses . at december 31 , 2014 , the accrual for liability-based awards outstanding was $ 15.2 million , and is included in accrued compensation in the consolidated balance sheets . product warranties . we provide a limited warranty for orvs for a period of six months , for a period of one year for our snowmobiles , for a period of one or two years for our motorcycles depending on brand and model year , and two years for svs . we provide longer warranties in certain geographical markets as determined by local regulations and market conditions and may provide longer warranties related to certain promotional programs . our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumers . the warranty reserve is established at the time of sale to the dealer or distributor based on management 's best estimate using historical rates and trends . we record these amounts as a liability in the consolidated balance sheet until they are ultimately paid . at december 31 , 2014 and 2013 , the accrued warranty liability was $ 53.1 million and $ 52.8 million , respectively . adjustments to the warranty reserve are made from time to time based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date . while management believes that the warranty reserve is adequate and that the judgment applied is appropriate , such amounts estimated to be due and payable could differ materially from what will ultimately transpire in the future . product liability . we are subject to product liability claims in the normal course of business . in late 2012 , we purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date . we self-insure product liability claims up to the purchased catastrophic insurance coverage . the estimated costs resulting from any uninsured losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable . we utilize historical trends and actuarial analysis tools , along with an analysis of current claims , to assist in determining the appropriate loss reserve levels . at december 31 , 2014 and 2013 , we had accruals of $ 17.3 million and $ 17.1 million , respectively , for the probable payment of pending claims related to continuing operations product liability litigation associated with our products . these accruals are included in other accrued expenses in the consolidated balance sheets . while management believes the product liability reserves are adequate , adverse determination of material product liability claims made against us could have a material adverse effect on our financial condition . new accounting pronouncements see item 8 of part ii , “ financial statements and supplementary data—note 1—organization and significant accounting policies —new accounting pronouncements . ” 32 liquidity and capital resources our primary source of funds has been cash provided by operating activities . our primary uses of funds have been for acquisitions , repurchase and retirement of common stock , capital investment , new product development and cash dividends to shareholders . the following table summarizes the cash flows from operating , investing

the active phase 4 study , a pilot , open-label , single-arm study , aims to evaluate the effect of oxbryta on exercise capacity , as measured by cardiopulmonary exercise testing ( cpet ) in patients 12 years of age and older with scd . we also expect to conduct additional clinical studies of oxbryta , including to seek to expand the potential approved product label into younger pediatric populations as well as to study further the efficacy and safety profile of oxbryta for scd patients . in january 2021 , the european medicines agency , or ema , accepted for review our marketing authorization application , or maa , seeking full marketing authorization of oxbryta to treat hemolytic anemia 95 ( which is low hemoglobin due to red blood cell destruction ) in scd patients ages 12 years and older , and the maa is undergoing standard review by the ema . in addition , we plan to submit by mid-2021 a supplemental new drug application , or snda , to expand the current oxbryta label to include treatment of scd in children ages 4 to 11 years , under the fda 's accelerated approval pathway . thereafter , we also plan to submit a new drug application , or nda , for a new age-appropriate formulation for this patient population . to provide early access prior to potentially receiving additional marketing approval , we have established an expanded access protocol for eligible scd patients in the united states and an early access program for eligible scd patients for outside the united states . in addition , we have entered into an exclusive agreement with biopharma-middle east and africa , or biopharma-mea , to distribute oxbryta in the six countries that make up the gcc region ( bahrain , kuwait , oman , qatar , saudi arabia , and the united arab emirates ) , where the u.s. approval of oxbryta can be referenced to allow for access to the medicine while health authorities conduct their reviews . beyond oxbryta , we are engaged in other research and development activities , including working on new targets to potentially develop next generation of treatments for scd , including inclacumab , a p-selectin inhibitor , which is a clinically validated target in scd , known to reduce the incidence of vaso-occlusive crises , or vocs , and our next generation hemoglobin polymerization inhibitor , gbt021601 , or gbt601 . as part of our efforts to build our pipeline , we regularly evaluate opportunities to in-license , acquire or invest in new business , technology or assets or engage in related discussions with other business entities . we licensed inclacumab from f. hoffmann-la roche ltd. and hoffmann-la roche inc. ( together , “ roche ” ) under the license agreement we entered into in august 2018 , or roche agreement . prior to licensing inclacumab to us , roche conducted clinical studies that enrolled more than 700 non-scd patients and demonstrated an encouraging pharmacokinetic , safety , and tolerability profile for inclacumab . we expect to be able to leverage the safety data from roche 's prior clinical studies , as we proceed with our development of inclacumab as a potential treatment to reduce the frequency of vocs in patients with scd and to reduce the hospital voc readmission rate for patients that require inpatient treatment for an initial voc episode . we expect to initiate two pivotal clinical trials by the end of the first half of 2021. one study will be a chronic prevention study with an endpoint of the reduction in vocs over a 48-week treatment period , and the other study will focus on hospital readmissions with an endpoint of the reduction of the rate of readmission to hospitals for voc within 90 days following an initial hospitalization for voc . while still in early stages , we have an ongoing collaboration with syros pharmaceuticals , inc. , or syros , which we entered into with a license and collaboration agreement , or syros agreement , in december 2019 , to discover , develop and commercialize novel therapies for scd and beta thalassemia . we are currently exploring orally available , small molecule drugs designed to upregulate fetal hemoglobin . under the syros agreement , we have an option to obtain an exclusive worldwide license to develop , manufacture and commercialize any compounds or products resulting from the collaboration , subject to syros ' option to co-promote the first product in the united states . in march 2020 , the centers for disease control and prevention , or cdc , declared a global pandemic related to sars-cov-2 , the virus that causes coronavirus disease 2019 , or covid-19 , and the pandemic has impacted our business , including our commercialization of oxbryta and our research and development activities . for example , we implemented a temporary work from home policy ; temporarily suspended our field team from most in-person interactions , including visits to physician offices , clinics and hospitals as well as in-person meetings with payors ; and temporarily delayed or paused certain research and development activities , including screening and enrollment in all clinical studies sponsored by us . as we continue to monitor and work toward resumption of all trial activities , we are continuing with administrative trial-start up activities ( such as contracting and irb/ec approvals ) . notably , the covid-19 pandemic has not significantly impacted our supply of oxbryta . we continue to believe we have an adequate supply of oxbryta to sustain estimated patient need through 2021 , and we are continuing to produce oxbryta tablets . 96 we have seen a significant decrease in weekly new patient prescriptions for oxbryta from a peak in early march , and we expect the rate of new patient prescriptions may remain lower depending on the course of the pandemic . story_separator_special_tag the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming , and research and development is highly uncertain . as a result , we are unable to determine the duration and completion costs of our research and development projects or when and to what extent we will generate revenue from the commercialization and sale of any of our product candidates . the following table summarizes our research and development expenses incurred during the respective periods ( in thousands , except percentages ) : replace_table_token_6_th * change is not meaningful research and development expenses decreased by $ 19.4 million , or 11 % , to $ 155.1 million for the year ended december 31 , 2020 from $ 174.6 million for the year ended december 31 , 2019. the decrease was primarily due to a $ 33.9 million decrease in external costs for oxbryta related to manufacturing costs and medical affairs costs that were previously expensed to research and development prior to approval by the fda and a $ 1.7 million decrease in other preclinical programs . the decrease was partially offset by a $ 16.3 million increase in external costs associated with inclacumab driven by the manufacturing activities . stock-based compensation expense related to research and development was $ 18.1 million for the year ended december 31 , 2020 and $ 19.1 million for the year ended december 31 , 2019. the increase was primarily due to hiring additional personnel and stock price appreciation . 102 selling , general and administrative expenses selling , general and administrative expenses consist primarily of costs incurred in our executive , commercial , finance , corporate development , human resource , information technology , legal , compliance and other general and administrative functions , which include : employee-related expenses , which include salaries , benefits and stock-based compensation ; fees to third-party vendors providing customer support services ; expenses incurred under agreements with consultants ; and facilities and other allocated expenses , which include expenses for rent and maintenance of facilities , depreciation and amortization expense and other supplies . we expense all selling , general and administrative costs in the periods in which they are incurred . we expect our general and administrative expenses to continue to grow as we progress through this early stage of the commercialization of oxbryta . general and administrative expenses increased by $ 93.8 million , or 80 % , to $ 210.9 million for the year ended december 31 , 2020 from $ 117.1 million for the year ended december 31 , 2019. the increase was primarily due to an increase of $ 32.9 million in salary and benefit costs due to a greater number of employees , a $ 26.9 million increase in stock-based compensation expense as a result of our hiring additional personnel and stock price appreciation , a $ 26.0 million increase in professional and consulting services due to the growth of our operations and the commercialization of oxbryta , and an $ 8.0 million increase in other general and administrative expense due to the growth of our operations , such as higher rent expenses resulting from our move into the new facility . selling , general and administrative related stock-based compensation expense was $ 53.4 million and $ 26.5 million for the year ended december 31 , 2020 and 2019 , respectively . gain on lease modification gain on lease modification of $ 1.0 million and $ 8.3 million for the year ended december 31 , 2020 and 2019 , respectively , was related to the lease amendment of our previous premises located in south san francisco , california for 67,185 square feet of space in october 2019. interest income interest income was $ 5.8 million in 2020 compared to interest income of $ 15.6 million in 2019. the $ 9.8 million decrease was primarily due to decrease in interest income from our investment balances . interest expenses interest expense was $ 9.8 million in 2020 compared to interest expense of $ 0.9 million in 2019. the $ 8.9 million increase was primarily due to higher interest expense related to our term loan entered in december 2019. income taxes as of december 31 , 2020 , we had federal net operating loss carryforwards of approximately $ 829.1 million to offset future federal taxable income , with $ 209.9 million available through 2037 and $ 619.2 million available indefinitely . we also had state net operating loss carryforwards of approximately $ 587.1 million that may offset future state taxable income , through 2040. current federal and state tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change . even if the carryforwards are available , they may be subject to annual limitations , lack of future taxable income , or future 103 ownership changes that could result in the expiration of the carryforwards before they are utilized . at december 31 , 2020 , we recorded a 100 % valuation allowance against our deferred tax assets of approximately $ 325.7 million , as at that time our management believed it was uncertain that they would be fully realized . if we determine in the future that we will be able to realize all or a portion of our net operating loss carryforwards , an adjustment to our net operating loss carryforwards would increase net income in the period in which we make such a determination . for the years ended december 31 , 2019 and 2018 the comparison of the fiscal years ended december 31 , 2019 and 2018 can be found in our annual report on form 10-k for the fiscal year ended december 31 , 2019 located within part ii , item 7. management 's discussion and analysis of financial condition and results of operations , which is incorporated herein by reference . liquidity and capital resources we are not profitable and have incurred

cash flows from operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 211.9 million , consisting of a net loss of $ 247.6 million , which was partially offset by non-cash charges of $ 71.5 million for stock-based compensation and $ 12.5 million for net depreciation and amortization expense . the change in our net operating assets and liabilities was due primarily to an increase of $ 36.8 million in inventories to support our current and anticipated oxbryta commercial sales , an increase in accounts receivable of $ 14.9 million due to higher oxbryta commercial sales , a decrease of $ 10.1 million in accrued liabilities primarily due to the payout of the accrued $ 20.0 million upfront payment to syros in january 2020 and timing of manufacturing activities offset by higher sales and allowance accrual due to higher oxbryta commercial sales , an increase of $ 8.4 million in accounts payable due to timing of payments , and an increase of $ 6.4 million in accrued compensation related to higher number of employees . net cash used in operating activities was $ 194.4 million for the year ended december 31 , 2019 , consisting of a net loss of $ 266.8 million , which was partially offset by non-cash charges of $ 45.7 million for stock-based compensation , $ 8.3 million for gain on lease modification and $ 7.9 million for depreciation and amortization 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. ```cash flows from operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 211.9 million , consisting of a net loss of $ 247.6 million , which was partially offset by non-cash charges of $ 71.5 million for stock-based compensation and $ 12.5 million for net depreciation and amortization expense . the change in our net operating assets and liabilities was due primarily to an increase of $ 36.8 million in inventories to support our current and anticipated oxbryta commercial sales , an increase in accounts receivable of $ 14.9 million due to higher oxbryta commercial sales , a decrease of $ 10.1 million in accrued liabilities primarily due to the payout of the accrued $ 20.0 million upfront payment to syros in january 2020 and timing of manufacturing activities offset by higher sales and allowance accrual due to higher oxbryta commercial sales , an increase of $ 8.4 million in accounts payable due to timing of payments , and an increase of $ 6.4 million in accrued compensation related to higher number of employees . net cash used in operating activities was $ 194.4 million for the year ended december 31 , 2019 , consisting of a net loss of $ 266.8 million , which was partially offset by non-cash charges of $ 45.7 million for stock-based compensation , $ 8.3 million for gain on lease modification and $ 7.9 million for depreciation and amortization expense . ``` Suspicious Activity Report : the active phase 4 study , a pilot , open-label , single-arm study , aims to evaluate the effect of oxbryta on exercise capacity , as measured by cardiopulmonary exercise testing ( cpet ) in patients 12 years of age and older with scd . we also expect to conduct additional clinical studies of oxbryta , including to seek to expand the potential approved product label into younger pediatric populations as well as to study further the efficacy and safety profile of oxbryta for scd patients . in january 2021 , the european medicines agency , or ema , accepted for review our marketing authorization application , or maa , seeking full marketing authorization of oxbryta to treat hemolytic anemia 95 ( which is low hemoglobin due to red blood cell destruction ) in scd patients ages 12 years and older , and the maa is undergoing standard review by the ema . in addition , we plan to submit by mid-2021 a supplemental new drug application , or snda , to expand the current oxbryta label to include treatment of scd in children ages 4 to 11 years , under the fda 's accelerated approval pathway . thereafter , we also plan to submit a new drug application , or nda , for a new age-appropriate formulation for this patient population . to provide early access prior to potentially receiving additional marketing approval , we have established an expanded access protocol for eligible scd patients in the united states and an early access program for eligible scd patients for outside the united states . in addition , we have entered into an exclusive agreement with biopharma-middle east and africa , or biopharma-mea , to distribute oxbryta in the six countries that make up the gcc region ( bahrain , kuwait , oman , qatar , saudi arabia , and the united arab emirates ) , where the u.s. approval of oxbryta can be referenced to allow for access to the medicine while health authorities conduct their reviews . beyond oxbryta , we are engaged in other research and development activities , including working on new targets to potentially develop next generation of treatments for scd , including inclacumab , a p-selectin inhibitor , which is a clinically validated target in scd , known to reduce the incidence of vaso-occlusive crises , or vocs , and our next generation hemoglobin polymerization inhibitor , gbt021601 , or gbt601 . as part of our efforts to build our pipeline , we regularly evaluate opportunities to in-license , acquire or invest in new business , technology or assets or engage in related discussions with other business entities . we licensed inclacumab from f. hoffmann-la roche ltd. and hoffmann-la roche inc. ( together , “ roche ” ) under the license agreement we entered into in august 2018 , or roche agreement . prior to licensing inclacumab to us , roche conducted clinical studies that enrolled more than 700 non-scd patients and demonstrated an encouraging pharmacokinetic , safety , and tolerability profile for inclacumab . we expect to be able to leverage the safety data from roche 's prior clinical studies , as we proceed with our development of inclacumab as a potential treatment to reduce the frequency of vocs in patients with scd and to reduce the hospital voc readmission rate for patients that require inpatient treatment for an initial voc episode . we expect to initiate two pivotal clinical trials by the end of the first half of 2021. one study will be a chronic prevention study with an endpoint of the reduction in vocs over a 48-week treatment period , and the other study will focus on hospital readmissions with an endpoint of the reduction of the rate of readmission to hospitals for voc within 90 days following an initial hospitalization for voc . while still in early stages , we have an ongoing collaboration with syros pharmaceuticals , inc. , or syros , which we entered into with a license and collaboration agreement , or syros agreement , in december 2019 , to discover , develop and commercialize novel therapies for scd and beta thalassemia . we are currently exploring orally available , small molecule drugs designed to upregulate fetal hemoglobin . under the syros agreement , we have an option to obtain an exclusive worldwide license to develop , manufacture and commercialize any compounds or products resulting from the collaboration , subject to syros ' option to co-promote the first product in the united states . in march 2020 , the centers for disease control and prevention , or cdc , declared a global pandemic related to sars-cov-2 , the virus that causes coronavirus disease 2019 , or covid-19 , and the pandemic has impacted our business , including our commercialization of oxbryta and our research and development activities . for example , we implemented a temporary work from home policy ; temporarily suspended our field team from most in-person interactions , including visits to physician offices , clinics and hospitals as well as in-person meetings with payors ; and temporarily delayed or paused certain research and development activities , including screening and enrollment in all clinical studies sponsored by us . as we continue to monitor and work toward resumption of all trial activities , we are continuing with administrative trial-start up activities ( such as contracting and irb/ec approvals ) . notably , the covid-19 pandemic has not significantly impacted our supply of oxbryta . we continue to believe we have an adequate supply of oxbryta to sustain estimated patient need through 2021 , and we are continuing to produce oxbryta tablets . 96 we have seen a significant decrease in weekly new patient prescriptions for oxbryta from a peak in early march , and we expect the rate of new patient prescriptions may remain lower depending on the course of the pandemic . story_separator_special_tag the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming , and research and development is highly uncertain . as a result , we are unable to determine the duration and completion costs of our research and development projects or when and to what extent we will generate revenue from the commercialization and sale of any of our product candidates . the following table summarizes our research and development expenses incurred during the respective periods ( in thousands , except percentages ) : replace_table_token_6_th * change is not meaningful research and development expenses decreased by $ 19.4 million , or 11 % , to $ 155.1 million for the year ended december 31 , 2020 from $ 174.6 million for the year ended december 31 , 2019. the decrease was primarily due to a $ 33.9 million decrease in external costs for oxbryta related to manufacturing costs and medical affairs costs that were previously expensed to research and development prior to approval by the fda and a $ 1.7 million decrease in other preclinical programs . the decrease was partially offset by a $ 16.3 million increase in external costs associated with inclacumab driven by the manufacturing activities . stock-based compensation expense related to research and development was $ 18.1 million for the year ended december 31 , 2020 and $ 19.1 million for the year ended december 31 , 2019. the increase was primarily due to hiring additional personnel and stock price appreciation . 102 selling , general and administrative expenses selling , general and administrative expenses consist primarily of costs incurred in our executive , commercial , finance , corporate development , human resource , information technology , legal , compliance and other general and administrative functions , which include : employee-related expenses , which include salaries , benefits and stock-based compensation ; fees to third-party vendors providing customer support services ; expenses incurred under agreements with consultants ; and facilities and other allocated expenses , which include expenses for rent and maintenance of facilities , depreciation and amortization expense and other supplies . we expense all selling , general and administrative costs in the periods in which they are incurred . we expect our general and administrative expenses to continue to grow as we progress through this early stage of the commercialization of oxbryta . general and administrative expenses increased by $ 93.8 million , or 80 % , to $ 210.9 million for the year ended december 31 , 2020 from $ 117.1 million for the year ended december 31 , 2019. the increase was primarily due to an increase of $ 32.9 million in salary and benefit costs due to a greater number of employees , a $ 26.9 million increase in stock-based compensation expense as a result of our hiring additional personnel and stock price appreciation , a $ 26.0 million increase in professional and consulting services due to the growth of our operations and the commercialization of oxbryta , and an $ 8.0 million increase in other general and administrative expense due to the growth of our operations , such as higher rent expenses resulting from our move into the new facility . selling , general and administrative related stock-based compensation expense was $ 53.4 million and $ 26.5 million for the year ended december 31 , 2020 and 2019 , respectively . gain on lease modification gain on lease modification of $ 1.0 million and $ 8.3 million for the year ended december 31 , 2020 and 2019 , respectively , was related to the lease amendment of our previous premises located in south san francisco , california for 67,185 square feet of space in october 2019. interest income interest income was $ 5.8 million in 2020 compared to interest income of $ 15.6 million in 2019. the $ 9.8 million decrease was primarily due to decrease in interest income from our investment balances . interest expenses interest expense was $ 9.8 million in 2020 compared to interest expense of $ 0.9 million in 2019. the $ 8.9 million increase was primarily due to higher interest expense related to our term loan entered in december 2019. income taxes as of december 31 , 2020 , we had federal net operating loss carryforwards of approximately $ 829.1 million to offset future federal taxable income , with $ 209.9 million available through 2037 and $ 619.2 million available indefinitely . we also had state net operating loss carryforwards of approximately $ 587.1 million that may offset future state taxable income , through 2040. current federal and state tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change . even if the carryforwards are available , they may be subject to annual limitations , lack of future taxable income , or future 103 ownership changes that could result in the expiration of the carryforwards before they are utilized . at december 31 , 2020 , we recorded a 100 % valuation allowance against our deferred tax assets of approximately $ 325.7 million , as at that time our management believed it was uncertain that they would be fully realized . if we determine in the future that we will be able to realize all or a portion of our net operating loss carryforwards , an adjustment to our net operating loss carryforwards would increase net income in the period in which we make such a determination . for the years ended december 31 , 2019 and 2018 the comparison of the fiscal years ended december 31 , 2019 and 2018 can be found in our annual report on form 10-k for the fiscal year ended december 31 , 2019 located within part ii , item 7. management 's discussion and analysis of financial condition and results of operations , which is incorporated herein by reference . liquidity and capital resources we are not profitable and have incurred

that we made on march 19 , 2015 pursuant to the terms of the fifth amendment to cuso rsa . -46- we believe that the vast majority of the $ 78.7 million of estimated payments projected to be paid after 2017 will be made by us in 2018. the estimated future payment amounts and timing related to the cuso rsa assume , among other factors , that we do not make any discharge payments in 2015 , 2016 or 2017 ( other than the discharge payment made in march 2015 pursuant to the terms of the fifth amendment to cuso rsa ) and do make discharge payments to the fullest extent possible in 2018 and later years . if we do not make the discharge payments as assumed in 2018 and later years , we estimate that we would make approximately $ 100.3 million of regular payments in 2018 through approximately 2026. of this amount , approximately $ 18.6 million to $ 20.0 million would be paid annually in each of 2018 through 2021 , and approximately $ 22.7 million in the aggregate , would be paid in 2022 through 2026. we also have debt service and principal repayment obligations under the financing agreement . we estimate that in 2015 , the amount of those cash payment obligations will be approximately $ 19.3 million . in the event of a default by us under the financing agreement , the lenders could declare the full amount of the term loans then outstanding to be immediately due and payable in full . our obligations under the financing agreement are secured by a security interest in substantially all of our and our subsidiaries ' assets , including a mortgage on all of our and our subsidiaries ' owned real estate . the covenants under the financing agreement could have a material adverse effect on our business by limiting our ability to take advantage of financing , merger and acquisition or other corporate opportunities and or to make certain payments under the rsas . continued enrollment declines and or continued increases in use of institutional scholarships and awards would have a negative impact on our revenue , cash flows and financial condition . based on our current projections , we believe that cash generated from operations will be sufficient for us to satisfy our cuso rsa and peaks guarantee payments , working capital , loan repayment and capital expenditure requirements over the 12-month period following the date that this annual report on form 10-k was filed with the sec . we also believe that any reduction in cash and cash equivalents that may result from their use to make payments under the cuso rsa and peaks guarantee or repay loans will not have a material adverse effect on our planned capital expenditures , ability to meet any applicable regulatory financial responsibility standards , ability to satisfy the financial covenants under the financing agreement or ability to conduct normal operations over the 12-month period following the date that this annual report on form 10-k was filed with the sec . our projections , however , are estimates , which are based on numerous assumptions and , therefore , may not prove to be accurate or reliable and involve a number of risks and uncertainties . see part i , item 1 , “risk factors” and note 16 – risks and uncertainties of the notes to consolidated financial statements for a further discussion of those risks and uncertainties . consolidations and core operations our consolidated financial statements as of and for the fiscal year ended december 31 , 2014 include the results of operations , financial condition and cash flows of the cuso and the peaks trust , two variable interest entities that we were required to consolidate in our consolidated financial statements . beginning on september 30 , 2014 , our consolidated financial statements include the cuso , and beginning on february 28 , 2013 , our consolidated financial statements include the peaks trust . we included the cuso in our consolidated financial statements beginning on september 30 , 2014 , because we were considered to have the power to direct the activities that most significantly impact the economic performance of the cuso under asc 810 , “consolidation” ( “asc 810” ) , on that date . we determined that the activities that most significantly impact the economic performance of the cuso involve the servicing ( which includes the collection ) of the private education loans made under the cuso program ( the “cuso student loans” ) . we were considered to have the power to direct the servicing activities of the cuso student loans as a result of our substantive ability to terminate the servicing agreement that governs the servicing activities of the cuso student loans ( the “cuso servicing agreement” ) . pursuant to the cuso servicing agreement , if the entity that performs the servicing activities on behalf of the cuso ( the “cuso program servicer” ) fails to meet certain performance criteria specified in the cuso servicing agreement , and the cuso program servicer does not affect a cure of that failure during a specified cure period , we would have the right to terminate the cuso servicing agreement . we believe that the cuso program servicer failed to meet the performance criteria specified in the cuso servicing agreement on september 30 , 2014 , and that it was not reasonably possible that the cuso program servicer would be able to affect a cure during the 90-day cure period . story_separator_special_tag -55- general as of december 31 , 2014 , we had 144 college locations in 39 states , which were providing education programs to approximately 53,000 students . in 2014 , we derived approximately 97 % of our revenue from the core operations from tuition and approximately 3 % from the sale of tool kits and fees , charged to and paid by , or on behalf of , our students . most students enrolled in our education programs at our institutions pay a substantial portion of their tuition and other education-related expenses with funds received under various government-sponsored student financial aid programs , especially title iv programs . our revenue from the core operations varies based primarily on the following factors : the aggregate student population , which is influenced by the number of students attending our institutions at the beginning of a fiscal period and student retention rates ; the amount of tuition charged to our students ; and the levels of availability and utilization of institutional scholarships , grants and awards . new students generally enter our education programs at the beginning of an academic term that typically begins for most education programs in early march , mid-june , early september and late november or early december . we believe that the changes to our institutions ' aggregate student population in recent years was primarily due to : our prospective students ' greater sensitivity to the cost of a postsecondary education ; our prospective students ' uncertainty about the value of a postsecondary education due to the prolonged economic and labor market disruptions ; changes that we made to education program offerings at select campuses , which resulted in a more significant decline in new student enrollment in the criminal justice programs of study compared to our institutions ' other curricula ; and the discontinuation or suspension of new student enrollments at select locations . in order to participate in title iv programs , a new campus must be authorized by the state in which it will operate , accredited by an accrediting commission recognized by the ed , and certified by the ed to participate in title iv programs . the ed 's certification process can not commence until the location receives its state authorization and accreditation . we generally earn tuition revenue on a straight-line basis over the length of each of four , 12-week academic quarters in each fiscal year . state regulations , accrediting commission criteria and our policies generally require us to refund a portion of the tuition and fee payments received from a student who withdraws from one of our institutions during an academic term . we recognize immediately the amount of tuition and fees , if any , that we may retain after payment of any refund . revenue that we recognize after each consolidation also includes student loan interest income on the related private education loans , which is the accretion of the accretable yield on those private education loans . we incur expenses throughout a fiscal period in connection with the operation of our institutions . the cost of educational services includes salaries of faculty and institution administrators , cost of course materials , occupancy costs , depreciation and amortization of equipment costs , facilities and leasehold improvements , and other miscellaneous costs incurred by our institutions . student services and administrative expenses from the core operations include marketing expenses , an expense for uncollectible accounts and administrative expenses incurred primarily at our corporate headquarters . marketing expenses include advertising expenses and salaries and employee benefits for recruiting representatives . after each consolidation , student services and administrative expenses also include expenses incurred by the peaks trust and the cuso , as applicable , primarily related to fees for servicing the private education loans held by that entity and various other administrative fees and expenses of that entity . in 2014 , we continued to add education program offerings among existing campuses . we also continued our efforts to diversify our education program offerings by developing education programs at different degree levels in both technology and non-technology fields of study that we intend to offer at our campuses and deliver entirely in residence , entirely online over the internet or partially in residence and partially online . in 2014 , we did not begin operations at any new itt technical institute campuses or learning sites . as part of our efforts to maximize the efficiency and effectiveness of our current campus locations , during 2014 , we : relocated three of our campuses into existing facilities of other itt technical institute campuses ; converted one of our learning sites into an itt technical institute campus ; closed one of our learning sites ; closed four of our itt technical institute campuses ; and decreased the number of our campuses that offer bachelor degree programs from 134 to 130. the following table sets forth select operating statistics for the periods indicated : replace_table_token_15_th -56- in 2015 , we intend to add more of our current education program offerings among most of our institutions ' locations . we also plan to continue developing new education programs in both technology and non-technology fields , but primarily in technology-and healthcare-related disciplines . we believe that those programs of study will be at different education levels and delivered in a variety of formats , including entirely in residence , entirely online or partially in residence and partially online . in december 2014 , the ed did not approve our application to offer four new degree programs at the itt technical institutes due to administrative capability issues reported in recent compliance audits and ed program reviews . in march 2015 , the ed approved six and denied two new degree programs that we had applied to offer at daniel webster college . the basis for disapproval was due to administrative capability issues reported in recent compliance audits and ed program reviews . while our

capital resources . our cash flows are highly dependent upon the receipt of title iv program funds . the primary title iv programs from which the students at our campuses receive grants , loans and other aid to fund the cost of their education include : the fdl program , which represented , in aggregate , approximately 57 % of our cash receipts in 2014 and 58 % of our cash receipts in 2013 ; and the pell program , which represented , in aggregate , approximately 24 % of our cash receipts in 2014 and 24 % of our cash receipts in 2013 . -65- we also receive funds on behalf of our students from state financial aid programs , veterans ' and military service member benefit programs and other sources , which represented , in aggregate , approximately 14 % of our cash receipts in 2014 and approximately 13 % in 2013. under a provision of the hea commonly referred to as the 90/10 rule , a proprietary institution , such as each of our institutions , must not derive more than 90 % of its applicable revenue in a fiscal year , on a cash accounting basis , from title iv programs . if an institution exceeds the 90 % threshold for any single fiscal year , that institution would be placed on provisional certification status for the institution 's following two fiscal years . in addition , if an institution exceeds the 90 % threshold for two consecutive fiscal years , it would be ineligible to participate in title iv programs as of the first day of the following fiscal year and would be unable to apply to regain its eligibility until the end of the second subsequent fiscal year . payments that we made under the 2007 rsa impact the 90/10 rule calculation by reducing the amount of cash receipts from sources other than title iv programs and total cash receipts .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```capital resources . our cash flows are highly dependent upon the receipt of title iv program funds . the primary title iv programs from which the students at our campuses receive grants , loans and other aid to fund the cost of their education include : the fdl program , which represented , in aggregate , approximately 57 % of our cash receipts in 2014 and 58 % of our cash receipts in 2013 ; and the pell program , which represented , in aggregate , approximately 24 % of our cash receipts in 2014 and 24 % of our cash receipts in 2013 . -65- we also receive funds on behalf of our students from state financial aid programs , veterans ' and military service member benefit programs and other sources , which represented , in aggregate , approximately 14 % of our cash receipts in 2014 and approximately 13 % in 2013. under a provision of the hea commonly referred to as the 90/10 rule , a proprietary institution , such as each of our institutions , must not derive more than 90 % of its applicable revenue in a fiscal year , on a cash accounting basis , from title iv programs . if an institution exceeds the 90 % threshold for any single fiscal year , that institution would be placed on provisional certification status for the institution 's following two fiscal years . in addition , if an institution exceeds the 90 % threshold for two consecutive fiscal years , it would be ineligible to participate in title iv programs as of the first day of the following fiscal year and would be unable to apply to regain its eligibility until the end of the second subsequent fiscal year . payments that we made under the 2007 rsa impact the 90/10 rule calculation by reducing the amount of cash receipts from sources other than title iv programs and total cash receipts . ``` Suspicious Activity Report : that we made on march 19 , 2015 pursuant to the terms of the fifth amendment to cuso rsa . -46- we believe that the vast majority of the $ 78.7 million of estimated payments projected to be paid after 2017 will be made by us in 2018. the estimated future payment amounts and timing related to the cuso rsa assume , among other factors , that we do not make any discharge payments in 2015 , 2016 or 2017 ( other than the discharge payment made in march 2015 pursuant to the terms of the fifth amendment to cuso rsa ) and do make discharge payments to the fullest extent possible in 2018 and later years . if we do not make the discharge payments as assumed in 2018 and later years , we estimate that we would make approximately $ 100.3 million of regular payments in 2018 through approximately 2026. of this amount , approximately $ 18.6 million to $ 20.0 million would be paid annually in each of 2018 through 2021 , and approximately $ 22.7 million in the aggregate , would be paid in 2022 through 2026. we also have debt service and principal repayment obligations under the financing agreement . we estimate that in 2015 , the amount of those cash payment obligations will be approximately $ 19.3 million . in the event of a default by us under the financing agreement , the lenders could declare the full amount of the term loans then outstanding to be immediately due and payable in full . our obligations under the financing agreement are secured by a security interest in substantially all of our and our subsidiaries ' assets , including a mortgage on all of our and our subsidiaries ' owned real estate . the covenants under the financing agreement could have a material adverse effect on our business by limiting our ability to take advantage of financing , merger and acquisition or other corporate opportunities and or to make certain payments under the rsas . continued enrollment declines and or continued increases in use of institutional scholarships and awards would have a negative impact on our revenue , cash flows and financial condition . based on our current projections , we believe that cash generated from operations will be sufficient for us to satisfy our cuso rsa and peaks guarantee payments , working capital , loan repayment and capital expenditure requirements over the 12-month period following the date that this annual report on form 10-k was filed with the sec . we also believe that any reduction in cash and cash equivalents that may result from their use to make payments under the cuso rsa and peaks guarantee or repay loans will not have a material adverse effect on our planned capital expenditures , ability to meet any applicable regulatory financial responsibility standards , ability to satisfy the financial covenants under the financing agreement or ability to conduct normal operations over the 12-month period following the date that this annual report on form 10-k was filed with the sec . our projections , however , are estimates , which are based on numerous assumptions and , therefore , may not prove to be accurate or reliable and involve a number of risks and uncertainties . see part i , item 1 , “risk factors” and note 16 – risks and uncertainties of the notes to consolidated financial statements for a further discussion of those risks and uncertainties . consolidations and core operations our consolidated financial statements as of and for the fiscal year ended december 31 , 2014 include the results of operations , financial condition and cash flows of the cuso and the peaks trust , two variable interest entities that we were required to consolidate in our consolidated financial statements . beginning on september 30 , 2014 , our consolidated financial statements include the cuso , and beginning on february 28 , 2013 , our consolidated financial statements include the peaks trust . we included the cuso in our consolidated financial statements beginning on september 30 , 2014 , because we were considered to have the power to direct the activities that most significantly impact the economic performance of the cuso under asc 810 , “consolidation” ( “asc 810” ) , on that date . we determined that the activities that most significantly impact the economic performance of the cuso involve the servicing ( which includes the collection ) of the private education loans made under the cuso program ( the “cuso student loans” ) . we were considered to have the power to direct the servicing activities of the cuso student loans as a result of our substantive ability to terminate the servicing agreement that governs the servicing activities of the cuso student loans ( the “cuso servicing agreement” ) . pursuant to the cuso servicing agreement , if the entity that performs the servicing activities on behalf of the cuso ( the “cuso program servicer” ) fails to meet certain performance criteria specified in the cuso servicing agreement , and the cuso program servicer does not affect a cure of that failure during a specified cure period , we would have the right to terminate the cuso servicing agreement . we believe that the cuso program servicer failed to meet the performance criteria specified in the cuso servicing agreement on september 30 , 2014 , and that it was not reasonably possible that the cuso program servicer would be able to affect a cure during the 90-day cure period . story_separator_special_tag -55- general as of december 31 , 2014 , we had 144 college locations in 39 states , which were providing education programs to approximately 53,000 students . in 2014 , we derived approximately 97 % of our revenue from the core operations from tuition and approximately 3 % from the sale of tool kits and fees , charged to and paid by , or on behalf of , our students . most students enrolled in our education programs at our institutions pay a substantial portion of their tuition and other education-related expenses with funds received under various government-sponsored student financial aid programs , especially title iv programs . our revenue from the core operations varies based primarily on the following factors : the aggregate student population , which is influenced by the number of students attending our institutions at the beginning of a fiscal period and student retention rates ; the amount of tuition charged to our students ; and the levels of availability and utilization of institutional scholarships , grants and awards . new students generally enter our education programs at the beginning of an academic term that typically begins for most education programs in early march , mid-june , early september and late november or early december . we believe that the changes to our institutions ' aggregate student population in recent years was primarily due to : our prospective students ' greater sensitivity to the cost of a postsecondary education ; our prospective students ' uncertainty about the value of a postsecondary education due to the prolonged economic and labor market disruptions ; changes that we made to education program offerings at select campuses , which resulted in a more significant decline in new student enrollment in the criminal justice programs of study compared to our institutions ' other curricula ; and the discontinuation or suspension of new student enrollments at select locations . in order to participate in title iv programs , a new campus must be authorized by the state in which it will operate , accredited by an accrediting commission recognized by the ed , and certified by the ed to participate in title iv programs . the ed 's certification process can not commence until the location receives its state authorization and accreditation . we generally earn tuition revenue on a straight-line basis over the length of each of four , 12-week academic quarters in each fiscal year . state regulations , accrediting commission criteria and our policies generally require us to refund a portion of the tuition and fee payments received from a student who withdraws from one of our institutions during an academic term . we recognize immediately the amount of tuition and fees , if any , that we may retain after payment of any refund . revenue that we recognize after each consolidation also includes student loan interest income on the related private education loans , which is the accretion of the accretable yield on those private education loans . we incur expenses throughout a fiscal period in connection with the operation of our institutions . the cost of educational services includes salaries of faculty and institution administrators , cost of course materials , occupancy costs , depreciation and amortization of equipment costs , facilities and leasehold improvements , and other miscellaneous costs incurred by our institutions . student services and administrative expenses from the core operations include marketing expenses , an expense for uncollectible accounts and administrative expenses incurred primarily at our corporate headquarters . marketing expenses include advertising expenses and salaries and employee benefits for recruiting representatives . after each consolidation , student services and administrative expenses also include expenses incurred by the peaks trust and the cuso , as applicable , primarily related to fees for servicing the private education loans held by that entity and various other administrative fees and expenses of that entity . in 2014 , we continued to add education program offerings among existing campuses . we also continued our efforts to diversify our education program offerings by developing education programs at different degree levels in both technology and non-technology fields of study that we intend to offer at our campuses and deliver entirely in residence , entirely online over the internet or partially in residence and partially online . in 2014 , we did not begin operations at any new itt technical institute campuses or learning sites . as part of our efforts to maximize the efficiency and effectiveness of our current campus locations , during 2014 , we : relocated three of our campuses into existing facilities of other itt technical institute campuses ; converted one of our learning sites into an itt technical institute campus ; closed one of our learning sites ; closed four of our itt technical institute campuses ; and decreased the number of our campuses that offer bachelor degree programs from 134 to 130. the following table sets forth select operating statistics for the periods indicated : replace_table_token_15_th -56- in 2015 , we intend to add more of our current education program offerings among most of our institutions ' locations . we also plan to continue developing new education programs in both technology and non-technology fields , but primarily in technology-and healthcare-related disciplines . we believe that those programs of study will be at different education levels and delivered in a variety of formats , including entirely in residence , entirely online or partially in residence and partially online . in december 2014 , the ed did not approve our application to offer four new degree programs at the itt technical institutes due to administrative capability issues reported in recent compliance audits and ed program reviews . in march 2015 , the ed approved six and denied two new degree programs that we had applied to offer at daniel webster college . the basis for disapproval was due to administrative capability issues reported in recent compliance audits and ed program reviews . while our

raw materials and other input costs , such as fuel and transportation , are subject to fluctuations in price attributable to a number of factors . fluctuations in commodity prices can lead to retail price volatility and intensive price competition , and can influence consumer and trade buying 31 patterns . the cost of raw materials , fuel , labor , distribution and other costs related to our operations can increase from time to time significantly and unexpectedly . we attempt to manage cost inflation risks by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures . we also attempt to offset rising input costs by raising sales prices to our customers . however , increases in the prices we charge our customers may lag behind rising input costs . competitive pressures also may limit our ability to quickly raise prices in response to rising costs . we expect cost increases for raw materials in the marketplace during 2015 and are currently locked into our supply and prices for a majority of our most significant commodities ( excluding , among others , maple syrup ) through fiscal 2015 at a cost increase of less than 1 % of cost of goods sold . during fiscal 2014 , we had a minimal cost decrease . to the extent we are unable to avoid or offset any present or future cost increases by locking in our costs , implementing cost saving measures or increasing prices to our customers , our operating results could be materially adversely affected . in addition , should input costs begin to decline further , customers may look for price reductions in situations where we have locked into purchases at higher costs . consolidation in the retail trade and consequent inventory reductions . as the retail grocery trade continues to consolidate and our retail customers grow larger and become more sophisticated , our retail customers may demand lower pricing and increased promotional programs . these customers are also reducing their inventories and increasing their emphasis on private label products . changing customer preferences . consumers in the market categories in which we compete frequently change their taste preferences , dietary habits and product packaging preferences . consumer concern regarding food safety , quality and health . the food industry is subject to consumer concerns regarding the safety and quality of certain food products . if consumers in our principal markets lose confidence in the safety and quality of our food products , even as a result of a product liability claim or a product recall by a food industry competitor , our business could be adversely affected . fluctuations in currency exchange rates . our foreign sales are primarily to customers in canada . our sales to canada are generally denominated in canadian dollars and our sales for export to other countries are generally denominated in u.s. dollars . during fiscal 2014 , 2013 and 2012 , our net sales to foreign countries represented approximately 3.6 % , 3.2 % and 2.7 % , respectively , of our total net sales . we also purchase a significant majority of our maple syrup requirements from suppliers located in québec , canada . any weakening of the u.s. dollar against the canadian dollar could significantly increase our costs relating to the production of our maple syrup products to the extent we have not purchased canadian dollars in advance of any such weakening of the u.s. dollar or otherwise entered into a currency hedging arrangement in advance of any such weakening of the u.s. dollar . these increased costs would not be fully offset by the positive impact the change in the relative strength of the canadian dollar versus the u.s. dollar would have on our net sales in canada . our purchases of raw materials from other foreign suppliers are generally denominated in u.s. dollars . to confront these challenges , we continue to take steps to build the value of our brands , to improve our existing portfolio of products with new product and marketing initiatives , to reduce costs through improved productivity , to address consumer concerns about food safety , quality and health and to favorably manage currency fluctuations . critical accounting policies ; use of estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states requires our management to make a number of estimates and 32 assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses ; allowances for excess , obsolete and unsaleable inventories ; pension benefits ; acquisition accounting allocations ; the recoverability of goodwill , other intangible assets , property , plant and equipment , and deferred tax assets ; the determination of the useful life of customer relationship and amortizable trademark intangibles ; the fair value of contingent consideration liabilities ; and the accounting for share-based compensation expense . actual results could differ significantly from these estimates and assumptions . our significant accounting policies are described more fully in note 2 to our consolidated financial statements included elsewhere in this report . we believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements . trade and consumer promotion expenses we offer various sales incentive programs to customers and consumers , such as price discounts , in-store display incentives , slotting fees and coupons . the recognition of expense for these programs involves the use of judgment related to performance and redemption estimates . estimates are made based on historical experience and other factors . story_separator_special_tag excluding the impact of the ortega and las palmas recall and the rickland orchards shortfall , base business net sales increased $ 10.1 million , or 1.4 % , for fiscal 2014. the $ 10.1 million increase was attributable to an increase in unit volume of $ 15.7 million , or 2.2 % , $ 12.5 million of which was attributable to the extra week described above , partially offset by a net price decrease of $ 5.6 million , or 0.8 % . approximately 63 % of the net price decrease is attributable to net price decreases for ortega , maple grove farms of vermont and b & m products of $ 2.0 million , $ 0.9 million and $ 0.7 million , as we increased promotional activity in response to competition . see note 15 , `` net sales by brand , `` to our consolidated financial statements in part ii , item 8 of this report , for detailed information regarding total net sales by brand for fiscal 2014 and fiscal 2013 for each of our brands that exceed approximately 2 % of our fiscal 2014 net sales and for all other brands in the aggregate . the following chart sets forth the most significant 38 net sales increases and decreases by brand for our base business for fiscal 2014 as compared to fiscal 2013 : replace_table_token_9_th ( 1 ) in total , pirate brands contributed $ 50.0 million to our overall net sales increase for fiscal 2014 , $ 40.7 million of which is attributable to an extra six months of ownership of pirate brands during fiscal 2014 and $ 9.3 million of which is base business growth during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 2 ) in total , truenorth contributed $ 8.6 million to our overall net sales increase for fiscal 2014 , $ 7.2 million of which is attributable to an extra four months of ownership of the brand during fiscal 2014 and $ 1.4 million of which is base business growth during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 3 ) in total , rickland orchards contributed $ 8.4 million to our overall net sales increase for fiscal 2014 , $ 20.2 million of which is attributable to an additional nine months of ownership of the brand during fiscal 2014 , offset by a decrease of $ 11.8 million during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 4 ) on november 14 , 2014 , we announced a voluntary recall for certain ortega and las palmas products . in connection with the recall , we recorded a reduction of net sales , net of expected insurance recoveries , of $ 4.1 million related to customer refunds . in addition , we temporarily suspended production and distribution of the affected products for several weeks , which we estimate negatively impacted our net sales of ortega and las palmas brands by $ 4.8 million during the fourth quarter of 2014. gross profit . gross profit increased $ 4.9 million , or 2.0 % , to $ 247.8 million in fiscal 2014 from $ 242.9 million in fiscal 2013. gross profit expressed as a percentage of net sales decreased to 29.2 % for fiscal 2014 from 33.5 % in fiscal 2013. the 4.3 percentage point decrease was due in part to the ortega and las palmas recall and the write-off of certain raw material and finished goods inventory used in the production of rickland orchards products ( see note 6 , `` goodwill and other intangible assets , `` to our consolidated financial statements in part ii , item 8 of this report , for detailed information regarding this write-off ) , which reduced gross profit margin by approximately 1.4 percentage points and 0.5 percentage points , respectively . excluding the impact of the recall and the rickland orchards inventory write-off , gross profit as a percentage of net sales was 31.1 % . the remaining gross profit shortfall of 2.4 percentage points was attributable to an increase in distribution costs , the base business 39 net price decrease described above , a sales mix shift to lower margin products and the negative impact of the canadian exchange rate , which reduced gross profit margin by approximately 1.0 percentage points , 0.6 percentage points , 0.6 percentage points and 0.2 percentage points , respectively . selling , general and administrative expenses . selling , general and administrative expenses increased $ 14.0 million , or 17.7 % , to $ 93.0 million for fiscal 2014 from $ 79.0 million for fiscal 2013. this increase was primarily due to recent acquisitions . during fiscal 2014 , we experienced increases in consumer marketing of $ 4.9 million , brokerage expenses of $ 3.5 million , warehousing expenses of $ 2.4 million , acquisition-related expenses of $ 1.4 million , administrative expenses related to the product recall of $ 0.5 million and all other expenses of $ 1.3 million . expressed as a percentage of net sales , our selling , general and administrative expenses increased to 11.0 % in fiscal 2014 from 10.9 % in fiscal 2013 because the increases in selling , general and administrative expenses were primarily the result of recent acquisitions that also resulted in increased net sales . impairment of intangible assets . impairment of intangible assets of $ 34.2 million for fiscal 2014 includes a $ 26.8 million loss for the impairment of amortizable trademarks and a $ 7.4 million loss for the impairment of customer relationship intangibles , both relating to rickland orchards , due primarily to our reduced projections for net sales to the club channel for the core products of rickland orchards . we did not have any impairment of intangible assets during 2013. see note 6 , `` goodwill and other intangible assets `` to our consolidated financial statements for

loss on extinguishment of debt . loss on extinguishment of debt for fiscal 2014 includes costs relating to the termination of our prior credit agreement and the repayment of all outstanding obligations thereunder , including the write-off of deferred debt financing costs and unamortized discount of $ 5.4 million and $ 0.3 million , respectively . loss on extinguishment of debt for fiscal 2013 includes costs relating to our repurchase of $ 248.5 million aggregate principal amount of 7.625 % senior notes and our repayment of $ 222.2 million aggregate principal amount of tranche b term loans , including the repurchase premium and other expenses of $ 20.2 million , the write-off of deferred debt financing costs of $ 8.3 million and the write-off of unamortized discount of $ 2.8 million . income tax expense . income tax expense decreased $ 5.7 million to $ 22.8 million in fiscal 2014 from $ 28.5 million in fiscal 2013. our effective tax rate was 35.8 % in fiscal 2014 and 35.3 % in fiscal 2013. due to changes in state apportionments , a deferred tax benefit of $ 0.3 million , or 0.4 % , was recorded in fiscal 2013. there was no change in state apportionment in fiscal 2014. fiscal 2013 compared to fiscal 2012 net sales . net sales increased $ 91.2 million , or 14.4 % , to $ 725.0 million for fiscal 2013 from $ 633.8 million for fiscal 2012. an additional ten months of net sales of the new york style and old london brands , which we acquired at the end of october 2012 , contributed $ 36.5 million to the overall increase . net sales of pirate brands , which we acquired in july 2013 , contributed $ 32.6 million to the overall increase . net sales of the truenorth brand , which we acquired in may 2013 , contributed $ 13.0 million to the overall increase . and net sales of the rickland orchards brand , which we acquired in october 2013 , contributed $ 12.9 million to the overall increase .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```loss on extinguishment of debt . loss on extinguishment of debt for fiscal 2014 includes costs relating to the termination of our prior credit agreement and the repayment of all outstanding obligations thereunder , including the write-off of deferred debt financing costs and unamortized discount of $ 5.4 million and $ 0.3 million , respectively . loss on extinguishment of debt for fiscal 2013 includes costs relating to our repurchase of $ 248.5 million aggregate principal amount of 7.625 % senior notes and our repayment of $ 222.2 million aggregate principal amount of tranche b term loans , including the repurchase premium and other expenses of $ 20.2 million , the write-off of deferred debt financing costs of $ 8.3 million and the write-off of unamortized discount of $ 2.8 million . income tax expense . income tax expense decreased $ 5.7 million to $ 22.8 million in fiscal 2014 from $ 28.5 million in fiscal 2013. our effective tax rate was 35.8 % in fiscal 2014 and 35.3 % in fiscal 2013. due to changes in state apportionments , a deferred tax benefit of $ 0.3 million , or 0.4 % , was recorded in fiscal 2013. there was no change in state apportionment in fiscal 2014. fiscal 2013 compared to fiscal 2012 net sales . net sales increased $ 91.2 million , or 14.4 % , to $ 725.0 million for fiscal 2013 from $ 633.8 million for fiscal 2012. an additional ten months of net sales of the new york style and old london brands , which we acquired at the end of october 2012 , contributed $ 36.5 million to the overall increase . net sales of pirate brands , which we acquired in july 2013 , contributed $ 32.6 million to the overall increase . net sales of the truenorth brand , which we acquired in may 2013 , contributed $ 13.0 million to the overall increase . and net sales of the rickland orchards brand , which we acquired in october 2013 , contributed $ 12.9 million to the overall increase . ``` Suspicious Activity Report : raw materials and other input costs , such as fuel and transportation , are subject to fluctuations in price attributable to a number of factors . fluctuations in commodity prices can lead to retail price volatility and intensive price competition , and can influence consumer and trade buying 31 patterns . the cost of raw materials , fuel , labor , distribution and other costs related to our operations can increase from time to time significantly and unexpectedly . we attempt to manage cost inflation risks by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures . we also attempt to offset rising input costs by raising sales prices to our customers . however , increases in the prices we charge our customers may lag behind rising input costs . competitive pressures also may limit our ability to quickly raise prices in response to rising costs . we expect cost increases for raw materials in the marketplace during 2015 and are currently locked into our supply and prices for a majority of our most significant commodities ( excluding , among others , maple syrup ) through fiscal 2015 at a cost increase of less than 1 % of cost of goods sold . during fiscal 2014 , we had a minimal cost decrease . to the extent we are unable to avoid or offset any present or future cost increases by locking in our costs , implementing cost saving measures or increasing prices to our customers , our operating results could be materially adversely affected . in addition , should input costs begin to decline further , customers may look for price reductions in situations where we have locked into purchases at higher costs . consolidation in the retail trade and consequent inventory reductions . as the retail grocery trade continues to consolidate and our retail customers grow larger and become more sophisticated , our retail customers may demand lower pricing and increased promotional programs . these customers are also reducing their inventories and increasing their emphasis on private label products . changing customer preferences . consumers in the market categories in which we compete frequently change their taste preferences , dietary habits and product packaging preferences . consumer concern regarding food safety , quality and health . the food industry is subject to consumer concerns regarding the safety and quality of certain food products . if consumers in our principal markets lose confidence in the safety and quality of our food products , even as a result of a product liability claim or a product recall by a food industry competitor , our business could be adversely affected . fluctuations in currency exchange rates . our foreign sales are primarily to customers in canada . our sales to canada are generally denominated in canadian dollars and our sales for export to other countries are generally denominated in u.s. dollars . during fiscal 2014 , 2013 and 2012 , our net sales to foreign countries represented approximately 3.6 % , 3.2 % and 2.7 % , respectively , of our total net sales . we also purchase a significant majority of our maple syrup requirements from suppliers located in québec , canada . any weakening of the u.s. dollar against the canadian dollar could significantly increase our costs relating to the production of our maple syrup products to the extent we have not purchased canadian dollars in advance of any such weakening of the u.s. dollar or otherwise entered into a currency hedging arrangement in advance of any such weakening of the u.s. dollar . these increased costs would not be fully offset by the positive impact the change in the relative strength of the canadian dollar versus the u.s. dollar would have on our net sales in canada . our purchases of raw materials from other foreign suppliers are generally denominated in u.s. dollars . to confront these challenges , we continue to take steps to build the value of our brands , to improve our existing portfolio of products with new product and marketing initiatives , to reduce costs through improved productivity , to address consumer concerns about food safety , quality and health and to favorably manage currency fluctuations . critical accounting policies ; use of estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states requires our management to make a number of estimates and 32 assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses ; allowances for excess , obsolete and unsaleable inventories ; pension benefits ; acquisition accounting allocations ; the recoverability of goodwill , other intangible assets , property , plant and equipment , and deferred tax assets ; the determination of the useful life of customer relationship and amortizable trademark intangibles ; the fair value of contingent consideration liabilities ; and the accounting for share-based compensation expense . actual results could differ significantly from these estimates and assumptions . our significant accounting policies are described more fully in note 2 to our consolidated financial statements included elsewhere in this report . we believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements . trade and consumer promotion expenses we offer various sales incentive programs to customers and consumers , such as price discounts , in-store display incentives , slotting fees and coupons . the recognition of expense for these programs involves the use of judgment related to performance and redemption estimates . estimates are made based on historical experience and other factors . story_separator_special_tag excluding the impact of the ortega and las palmas recall and the rickland orchards shortfall , base business net sales increased $ 10.1 million , or 1.4 % , for fiscal 2014. the $ 10.1 million increase was attributable to an increase in unit volume of $ 15.7 million , or 2.2 % , $ 12.5 million of which was attributable to the extra week described above , partially offset by a net price decrease of $ 5.6 million , or 0.8 % . approximately 63 % of the net price decrease is attributable to net price decreases for ortega , maple grove farms of vermont and b & m products of $ 2.0 million , $ 0.9 million and $ 0.7 million , as we increased promotional activity in response to competition . see note 15 , `` net sales by brand , `` to our consolidated financial statements in part ii , item 8 of this report , for detailed information regarding total net sales by brand for fiscal 2014 and fiscal 2013 for each of our brands that exceed approximately 2 % of our fiscal 2014 net sales and for all other brands in the aggregate . the following chart sets forth the most significant 38 net sales increases and decreases by brand for our base business for fiscal 2014 as compared to fiscal 2013 : replace_table_token_9_th ( 1 ) in total , pirate brands contributed $ 50.0 million to our overall net sales increase for fiscal 2014 , $ 40.7 million of which is attributable to an extra six months of ownership of pirate brands during fiscal 2014 and $ 9.3 million of which is base business growth during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 2 ) in total , truenorth contributed $ 8.6 million to our overall net sales increase for fiscal 2014 , $ 7.2 million of which is attributable to an extra four months of ownership of the brand during fiscal 2014 and $ 1.4 million of which is base business growth during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 3 ) in total , rickland orchards contributed $ 8.4 million to our overall net sales increase for fiscal 2014 , $ 20.2 million of which is attributable to an additional nine months of ownership of the brand during fiscal 2014 , offset by a decrease of $ 11.8 million during the comparable period of ownership during fiscal 2014 and fiscal 2013 . ( 4 ) on november 14 , 2014 , we announced a voluntary recall for certain ortega and las palmas products . in connection with the recall , we recorded a reduction of net sales , net of expected insurance recoveries , of $ 4.1 million related to customer refunds . in addition , we temporarily suspended production and distribution of the affected products for several weeks , which we estimate negatively impacted our net sales of ortega and las palmas brands by $ 4.8 million during the fourth quarter of 2014. gross profit . gross profit increased $ 4.9 million , or 2.0 % , to $ 247.8 million in fiscal 2014 from $ 242.9 million in fiscal 2013. gross profit expressed as a percentage of net sales decreased to 29.2 % for fiscal 2014 from 33.5 % in fiscal 2013. the 4.3 percentage point decrease was due in part to the ortega and las palmas recall and the write-off of certain raw material and finished goods inventory used in the production of rickland orchards products ( see note 6 , `` goodwill and other intangible assets , `` to our consolidated financial statements in part ii , item 8 of this report , for detailed information regarding this write-off ) , which reduced gross profit margin by approximately 1.4 percentage points and 0.5 percentage points , respectively . excluding the impact of the recall and the rickland orchards inventory write-off , gross profit as a percentage of net sales was 31.1 % . the remaining gross profit shortfall of 2.4 percentage points was attributable to an increase in distribution costs , the base business 39 net price decrease described above , a sales mix shift to lower margin products and the negative impact of the canadian exchange rate , which reduced gross profit margin by approximately 1.0 percentage points , 0.6 percentage points , 0.6 percentage points and 0.2 percentage points , respectively . selling , general and administrative expenses . selling , general and administrative expenses increased $ 14.0 million , or 17.7 % , to $ 93.0 million for fiscal 2014 from $ 79.0 million for fiscal 2013. this increase was primarily due to recent acquisitions . during fiscal 2014 , we experienced increases in consumer marketing of $ 4.9 million , brokerage expenses of $ 3.5 million , warehousing expenses of $ 2.4 million , acquisition-related expenses of $ 1.4 million , administrative expenses related to the product recall of $ 0.5 million and all other expenses of $ 1.3 million . expressed as a percentage of net sales , our selling , general and administrative expenses increased to 11.0 % in fiscal 2014 from 10.9 % in fiscal 2013 because the increases in selling , general and administrative expenses were primarily the result of recent acquisitions that also resulted in increased net sales . impairment of intangible assets . impairment of intangible assets of $ 34.2 million for fiscal 2014 includes a $ 26.8 million loss for the impairment of amortizable trademarks and a $ 7.4 million loss for the impairment of customer relationship intangibles , both relating to rickland orchards , due primarily to our reduced projections for net sales to the club channel for the core products of rickland orchards . we did not have any impairment of intangible assets during 2013. see note 6 , `` goodwill and other intangible assets `` to our consolidated financial statements for

17 the following items highlight certain of the company 's more significant strategic accomplishments in 2011 : in october 2011 , the company completed the acquisition of drives llc ( drives ) for $ 92 million . drives is a leading manufacturer of highly engineered drive-chains , roller-chains and conveyor augers for the agricultural and industrial applications . based in fulton , illinois , drives employs 430 associates and had trailing 12-month sales through september 2011 of approximately $ 100 million . sales and ebit for the timken drives business is reported in the company 's mobile industries and process industries segments based on customer application . in august 2011 , the company and the university of akron announced an open-innovation agreement to accelerate technology . the two organizations plan to combine their expertise in materials and surface engineering technologies at newly established laboratories in the university of akron 's college of engineering . in july 2011 , the company and stark state college broke ground on a jointly developed 18,000 square foot wind energy research and development center in canton , ohio , on the stark state college campus . this new center will be focused on advanced development of bearing systems for wind turbines and other ultra-large applications . in july 2011 , the company acquired the assets of philadelphia gear corp. ( philadelphia gear ) , a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors , for $ 200 million . based in king of prussia , pennsylvania , with approximately 220 associates , philadelphia gear had trailing 12-month sales through june 2011 of approximately $ 100 million . the timken gears and services business is included in the process industries segment . in 2011 , the company launched initiatives to enhance productivity and increase output at two of its canton , ohio steel facilities . these changes will effectively create new capacity at both of these steel facilities to support growing demand for finished bar products and billets for tubing product which serve customers in the global industrial , oil and gas , and mobile markets . these initiatives include an investment of approximately $ 35 million for an in-line forge press at the company 's faircrest steel plant . in august 2011 , the company announced that it is evaluating an investment of approximately $ 225 million at its faircrest steel plant . the potential investment would be expected to increase capacity , expand product range and strengthen the competitiveness of timken 's specialty alloy steel bars business . a ladle refiner and a new large-bloom continuous caster would be key components of this investment and would likely target production in 2014. the company entered into preliminary discussions with suppliers and government agencies , and opened early negotiations with united steelworkers of america local 1123 ( union ) , which represents operative associates in canton , ohio , under a collective bargaining agreement scheduled to expire in 2013. the company and representatives of the union have tentatively agreed on a five-year contract to replace the existing labor agreement . a ratification vote has been scheduled for february 21 , 2012 . 18 results of operations 2011 compared to 2010 overview : replace_table_token_7_th the company reported net sales for 2011 of $ 5.2 billion , compared to $ 4.1 billion in 2010 , a 27.5 % increase . the increase in sales was primarily due to higher volume across all business segments except for the aerospace and defense segment , higher surcharges , pricing , the impact of acquisitions and the effect of currency rate changes . in 2011 , net income per diluted share was $ 4.59 , compared to net income per diluted share of $ 2.81 in 2010. the company 's net income for 2011 reflects continued improvement in the end market sectors served by the mobile industries , process industries and steel segments . in addition , net income for 2011 reflects higher surcharges and pricing and the impact of acquisitions , partially offset by higher raw material and logistics costs and selling , general and administrative expenses . the income from discontinued operations recognized in 2010 was the result of favorable working capital adjustments from the sale of the company 's needle roller bearings ( nrb ) operations , completed in december 2009. outlook the company expects higher sales in the range of approximately 5 % to 8 % in 2012 compared to 2011 , primarily driven by higher volumes across the process industries , aerospace and defense and steel business segments , as well as favorable pricing and the full-year impact of acquisitions completed in 2011 , partially offset by the effect of currency-rate changes . the company expects to leverage sales growth from these segments to drive improved operating performance . however , the strengthening margins will be partially offset by lower utilization of manufacturing capacity , higher raw material costs and slightly higher selling , general and administrative expenses to support the higher sales . from a liquidity standpoint , the company expects to generate cash from operations of approximately $ 515 million , which is a 143 % increase over 2011 , primarily driven by lower working capital increases and lower pension and postretirement contributions . pension and postretirement contributions are expected to be approximately $ 265 million in 2012 compared to $ 416 million in 2011. the company expects to increase capital expenditures to approximately $ 345 million in 2012 compared to $ 205 million in 2011 . story_separator_special_tag the income from discontinued operations recognized in 2010 is the result of favorable working capital adjustments from the sale of the company 's nrb operations , completed in december 2009 , while the loss from discontinued operations was due to the negative impact of the deteriorating global economy on nrb 's business operations . the statements of income sales by segment : replace_table_token_20_th net sales for 2010 increased $ 913.9 million , or 29.1 % , compared to 2009 , primarily due to higher volume of approximately $ 655 million primarily across the mobile industries ' light-vehicle , off-highway and heavy truck market sectors , the process industries ' industrial distribution channel and the steel segment . net sales for 2010 also increased due to higher surcharges of approximately $ 250 million . 25 gross profit : replace_table_token_21_th gross profit margins increased in 2010 compared to 2009 , due to the impact of higher sales volume of approximately $ 280 million , higher steel surcharges of approximately $ 250 million , improved manufacturing utilization of approximately $ 150 million and improved pricing of approximately $ 100 million . these increases were partially offset by higher raw material costs of approximately $ 275 million and related lifo expense of approximately $ 90 million . in 2010 , rationalization expenses of $ 5.5 million included in cost of products sold primarily related to the closure of the manufacturing facility in sao paulo , brazil and the continued rationalization of process industries ' canton , ohio bearing facilities . in 2009 , rationalization expenses of $ 8.2 million included in cost of products sold primarily related to certain mobile industries ' and aerospace and defense manufacturing facilities and the continued rationalization of process industries ' canton , ohio bearing facilities . rationalization expenses in 2010 primarily consisted of relocation and closure costs . rationalization expenses in 2009 primarily included the write-down of inventory , accelerated depreciation on assets and the relocation of equipment . selling , general and administrative expenses : replace_table_token_22_th the increase in selling , general and administrative expenses of $ 91.1 million in 2010 compared to 2009 was primarily due to higher expense related to incentive compensation plans of approximately $ 65 million , with the remainder of the increase relating to higher employee and professional costs . impairment and restructuring charges : replace_table_token_23_th the following discussion explains the major impairment and restructuring charges recorded for the periods presented ; however , it is not intended to reflect a comprehensive discussion of all amounts in the tables above . refer to note 10 – impairment and restructuring in the notes to the consolidated financial statements for further details by segment . workforce reductions in 2009 , the company began the realignment of its organization to improve efficiency and reduce costs as a result of the economic downturn that began during the latter part of 2008. the initiative was completed in 2010 and included both selling and administrative cost reductions , as well as manufacturing workforce reductions . during 2010 , the company recorded $ 5.6 million of severance and related benefit costs to eliminate approximately 200 associates . of the $ 5.6 million charge for 2010 , $ 2.0 million related to the aerospace and defense segment , $ 1.6 million related to the process industries segment , $ 1.4 million related to the mobile industries segment and $ 0.6 million related to corporate positions . during 2009 , the company recorded $ 42.9 million of severance and related benefit costs , to eliminate approximately 3,280 manufacturing associates . of the $ 42.9 million charge , $ 26.0 million related to the mobile industries segment , $ 8.5 million related to the process industries segment , $ 3.3 million related to the steel segment , $ 3.1 million related to the aerospace and defense segment and $ 2.0 million related to corporate positions . torrington campus on july 20 , 2009 , the company sold the remaining portion of its torrington , connecticut office complex . in anticipation of the loss that the company expected to record upon completion of the sale of this property , the company recorded an impairment charge of $ 6.4 million during the second quarter of 2009 . 26 mobile industries in march 2007 , the company announced the closure of its manufacturing facility in sao paulo , brazil . the company completed the closure of this manufacturing facility on march 31 , 2010. during 2010 , the company recorded $ 4.4 million of exit costs , $ 1.3 million of severance and related benefit costs and $ 1.1 million of impairment charges associated with the closure of this facility . the exit costs were primarily due to site remediation costs . during 2009 , the company recorded $ 5.2 million of severance and related benefit costs and $ 1.7 million of exit costs associated with the closure of this facility . in 2009 , the company recorded impairment charges of $ 71.7 million for certain fixed assets in the united states , canada , france and china related to several automotive product lines . the company reviewed these assets for impairment during the fourth quarter due to declining sales and as part of the company 's initiative to exit programs where adequate returns could not be obtained through pricing initiatives . incorporating this information into its annual long-term forecasting process , the company determined the undiscounted projected future cash flows for these product lines could not support the carrying value of these asset groups . the company then arrived at fair value by either valuing the assets in use where the assets were still producing product or in exchange where the assets had been idled . in addition to the above charges , the company recorded $ 3.1 million of environmental exit costs in 2010 at the site of its former plant in columbus , ohio . process industries in 2009 , the company

cash flows : replace_table_token_40_th operating activities provided net cash of $ 211.7 million in 2011 compared to $ 312.7 million in 2010. this change was primarily due to higher pension and other postretirement benefit contributions and payments as well as higher cash used by working capital items , partially offset by higher net income . pension and other postretirement benefit contributions and payments were $ 456.0 million in 2011 , compared to $ 337.0 million in 2010. net income attributable to the timken company increased $ 179.5 million in 2011 compared to 2010. the following chart displays the impact of working capital items on cash during 2011 and 2010 : replace_table_token_41_th investing activities used cash of $ 508.0 million in 2011 after using cash of $ 152.9 million in 2010 as a result of an increase in acquisitions of $ 269.5 million and an increase in capital expenditures of $ 89.5 million . the increase in acquisitions related to the purchase of philadelphia gear , which was completed in july 2011 , and the purchase of drives , which was completed in october 2011. the net cash used by financing activities was $ 106.6 million in 2011 after using cash of $ 32.9 million in 2010. the increase in cash used for financing activities was primarily due to a $ 26.6 million reduction in proceeds from stock option exercises , a $ 24.7 million increase in cash dividends paid to shareholders and a $ 14.6 million increase in the company 's repurchases of its common stock in 2011 compared to 2010. the company purchased one million shares of its common stock for an aggregate of $ 43.8 million in 2011 after purchasing one million shares of its common stock for an aggregate of $ 29.2 million in 2010 . 34 liquidity and capital resources total debt was $ 515.1 million and $ 513.7 million at december 31 , 2011 and december 31 , 2010 , 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_40_th operating activities provided net cash of $ 211.7 million in 2011 compared to $ 312.7 million in 2010. this change was primarily due to higher pension and other postretirement benefit contributions and payments as well as higher cash used by working capital items , partially offset by higher net income . pension and other postretirement benefit contributions and payments were $ 456.0 million in 2011 , compared to $ 337.0 million in 2010. net income attributable to the timken company increased $ 179.5 million in 2011 compared to 2010. the following chart displays the impact of working capital items on cash during 2011 and 2010 : replace_table_token_41_th investing activities used cash of $ 508.0 million in 2011 after using cash of $ 152.9 million in 2010 as a result of an increase in acquisitions of $ 269.5 million and an increase in capital expenditures of $ 89.5 million . the increase in acquisitions related to the purchase of philadelphia gear , which was completed in july 2011 , and the purchase of drives , which was completed in october 2011. the net cash used by financing activities was $ 106.6 million in 2011 after using cash of $ 32.9 million in 2010. the increase in cash used for financing activities was primarily due to a $ 26.6 million reduction in proceeds from stock option exercises , a $ 24.7 million increase in cash dividends paid to shareholders and a $ 14.6 million increase in the company 's repurchases of its common stock in 2011 compared to 2010. the company purchased one million shares of its common stock for an aggregate of $ 43.8 million in 2011 after purchasing one million shares of its common stock for an aggregate of $ 29.2 million in 2010 . 34 liquidity and capital resources total debt was $ 515.1 million and $ 513.7 million at december 31 , 2011 and december 31 , 2010 , respectively . ``` Suspicious Activity Report : 17 the following items highlight certain of the company 's more significant strategic accomplishments in 2011 : in october 2011 , the company completed the acquisition of drives llc ( drives ) for $ 92 million . drives is a leading manufacturer of highly engineered drive-chains , roller-chains and conveyor augers for the agricultural and industrial applications . based in fulton , illinois , drives employs 430 associates and had trailing 12-month sales through september 2011 of approximately $ 100 million . sales and ebit for the timken drives business is reported in the company 's mobile industries and process industries segments based on customer application . in august 2011 , the company and the university of akron announced an open-innovation agreement to accelerate technology . the two organizations plan to combine their expertise in materials and surface engineering technologies at newly established laboratories in the university of akron 's college of engineering . in july 2011 , the company and stark state college broke ground on a jointly developed 18,000 square foot wind energy research and development center in canton , ohio , on the stark state college campus . this new center will be focused on advanced development of bearing systems for wind turbines and other ultra-large applications . in july 2011 , the company acquired the assets of philadelphia gear corp. ( philadelphia gear ) , a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors , for $ 200 million . based in king of prussia , pennsylvania , with approximately 220 associates , philadelphia gear had trailing 12-month sales through june 2011 of approximately $ 100 million . the timken gears and services business is included in the process industries segment . in 2011 , the company launched initiatives to enhance productivity and increase output at two of its canton , ohio steel facilities . these changes will effectively create new capacity at both of these steel facilities to support growing demand for finished bar products and billets for tubing product which serve customers in the global industrial , oil and gas , and mobile markets . these initiatives include an investment of approximately $ 35 million for an in-line forge press at the company 's faircrest steel plant . in august 2011 , the company announced that it is evaluating an investment of approximately $ 225 million at its faircrest steel plant . the potential investment would be expected to increase capacity , expand product range and strengthen the competitiveness of timken 's specialty alloy steel bars business . a ladle refiner and a new large-bloom continuous caster would be key components of this investment and would likely target production in 2014. the company entered into preliminary discussions with suppliers and government agencies , and opened early negotiations with united steelworkers of america local 1123 ( union ) , which represents operative associates in canton , ohio , under a collective bargaining agreement scheduled to expire in 2013. the company and representatives of the union have tentatively agreed on a five-year contract to replace the existing labor agreement . a ratification vote has been scheduled for february 21 , 2012 . 18 results of operations 2011 compared to 2010 overview : replace_table_token_7_th the company reported net sales for 2011 of $ 5.2 billion , compared to $ 4.1 billion in 2010 , a 27.5 % increase . the increase in sales was primarily due to higher volume across all business segments except for the aerospace and defense segment , higher surcharges , pricing , the impact of acquisitions and the effect of currency rate changes . in 2011 , net income per diluted share was $ 4.59 , compared to net income per diluted share of $ 2.81 in 2010. the company 's net income for 2011 reflects continued improvement in the end market sectors served by the mobile industries , process industries and steel segments . in addition , net income for 2011 reflects higher surcharges and pricing and the impact of acquisitions , partially offset by higher raw material and logistics costs and selling , general and administrative expenses . the income from discontinued operations recognized in 2010 was the result of favorable working capital adjustments from the sale of the company 's needle roller bearings ( nrb ) operations , completed in december 2009. outlook the company expects higher sales in the range of approximately 5 % to 8 % in 2012 compared to 2011 , primarily driven by higher volumes across the process industries , aerospace and defense and steel business segments , as well as favorable pricing and the full-year impact of acquisitions completed in 2011 , partially offset by the effect of currency-rate changes . the company expects to leverage sales growth from these segments to drive improved operating performance . however , the strengthening margins will be partially offset by lower utilization of manufacturing capacity , higher raw material costs and slightly higher selling , general and administrative expenses to support the higher sales . from a liquidity standpoint , the company expects to generate cash from operations of approximately $ 515 million , which is a 143 % increase over 2011 , primarily driven by lower working capital increases and lower pension and postretirement contributions . pension and postretirement contributions are expected to be approximately $ 265 million in 2012 compared to $ 416 million in 2011. the company expects to increase capital expenditures to approximately $ 345 million in 2012 compared to $ 205 million in 2011 . story_separator_special_tag the income from discontinued operations recognized in 2010 is the result of favorable working capital adjustments from the sale of the company 's nrb operations , completed in december 2009 , while the loss from discontinued operations was due to the negative impact of the deteriorating global economy on nrb 's business operations . the statements of income sales by segment : replace_table_token_20_th net sales for 2010 increased $ 913.9 million , or 29.1 % , compared to 2009 , primarily due to higher volume of approximately $ 655 million primarily across the mobile industries ' light-vehicle , off-highway and heavy truck market sectors , the process industries ' industrial distribution channel and the steel segment . net sales for 2010 also increased due to higher surcharges of approximately $ 250 million . 25 gross profit : replace_table_token_21_th gross profit margins increased in 2010 compared to 2009 , due to the impact of higher sales volume of approximately $ 280 million , higher steel surcharges of approximately $ 250 million , improved manufacturing utilization of approximately $ 150 million and improved pricing of approximately $ 100 million . these increases were partially offset by higher raw material costs of approximately $ 275 million and related lifo expense of approximately $ 90 million . in 2010 , rationalization expenses of $ 5.5 million included in cost of products sold primarily related to the closure of the manufacturing facility in sao paulo , brazil and the continued rationalization of process industries ' canton , ohio bearing facilities . in 2009 , rationalization expenses of $ 8.2 million included in cost of products sold primarily related to certain mobile industries ' and aerospace and defense manufacturing facilities and the continued rationalization of process industries ' canton , ohio bearing facilities . rationalization expenses in 2010 primarily consisted of relocation and closure costs . rationalization expenses in 2009 primarily included the write-down of inventory , accelerated depreciation on assets and the relocation of equipment . selling , general and administrative expenses : replace_table_token_22_th the increase in selling , general and administrative expenses of $ 91.1 million in 2010 compared to 2009 was primarily due to higher expense related to incentive compensation plans of approximately $ 65 million , with the remainder of the increase relating to higher employee and professional costs . impairment and restructuring charges : replace_table_token_23_th the following discussion explains the major impairment and restructuring charges recorded for the periods presented ; however , it is not intended to reflect a comprehensive discussion of all amounts in the tables above . refer to note 10 – impairment and restructuring in the notes to the consolidated financial statements for further details by segment . workforce reductions in 2009 , the company began the realignment of its organization to improve efficiency and reduce costs as a result of the economic downturn that began during the latter part of 2008. the initiative was completed in 2010 and included both selling and administrative cost reductions , as well as manufacturing workforce reductions . during 2010 , the company recorded $ 5.6 million of severance and related benefit costs to eliminate approximately 200 associates . of the $ 5.6 million charge for 2010 , $ 2.0 million related to the aerospace and defense segment , $ 1.6 million related to the process industries segment , $ 1.4 million related to the mobile industries segment and $ 0.6 million related to corporate positions . during 2009 , the company recorded $ 42.9 million of severance and related benefit costs , to eliminate approximately 3,280 manufacturing associates . of the $ 42.9 million charge , $ 26.0 million related to the mobile industries segment , $ 8.5 million related to the process industries segment , $ 3.3 million related to the steel segment , $ 3.1 million related to the aerospace and defense segment and $ 2.0 million related to corporate positions . torrington campus on july 20 , 2009 , the company sold the remaining portion of its torrington , connecticut office complex . in anticipation of the loss that the company expected to record upon completion of the sale of this property , the company recorded an impairment charge of $ 6.4 million during the second quarter of 2009 . 26 mobile industries in march 2007 , the company announced the closure of its manufacturing facility in sao paulo , brazil . the company completed the closure of this manufacturing facility on march 31 , 2010. during 2010 , the company recorded $ 4.4 million of exit costs , $ 1.3 million of severance and related benefit costs and $ 1.1 million of impairment charges associated with the closure of this facility . the exit costs were primarily due to site remediation costs . during 2009 , the company recorded $ 5.2 million of severance and related benefit costs and $ 1.7 million of exit costs associated with the closure of this facility . in 2009 , the company recorded impairment charges of $ 71.7 million for certain fixed assets in the united states , canada , france and china related to several automotive product lines . the company reviewed these assets for impairment during the fourth quarter due to declining sales and as part of the company 's initiative to exit programs where adequate returns could not be obtained through pricing initiatives . incorporating this information into its annual long-term forecasting process , the company determined the undiscounted projected future cash flows for these product lines could not support the carrying value of these asset groups . the company then arrived at fair value by either valuing the assets in use where the assets were still producing product or in exchange where the assets had been idled . in addition to the above charges , the company recorded $ 3.1 million of environmental exit costs in 2010 at the site of its former plant in columbus , ohio . process industries in 2009 , the company

76 economic environment the company continued to be the most active provider of financial guaranty insurance in 2011 as a result of its financial strength and its ability to maintain its financial strength ratings in the double-a ratings category throughout the financial crisis . all of the company 's pre-2007 financial guaranty competitors , except agm , which the company acquired in 2009 , have had their financial strength ratings downgraded by rating agencies to below investment grade levels or are no longer rated , rendering them unable to underwrite new business . however , business conditions have been difficult for the entire financial guaranty insurance industry since mid-2007 and the company has faced challenges in maintaining its market penetration that continue today . while the overall economic environment in the u.s. at the end of 2011 was stronger than in 2010 , housing prices have not stabilized , unemployment rates have declined but remain relatively high and the ultimate credit experience on u.s. rmbs transactions underwritten from the end of 2004 through 2008 by many financial institutions , including the financial guaranty insurers , remains poor . furthermore , while hiring trends have improved , unemployment levels remain high and may take years to return to pre-recession levels , which may adversely affect assured guaranty 's loss experience on rmbs . in addition , the economic recession has also affected the credit performance of other markets , including securitizations of trust preferred securities ( `` trups `` ) that include subordinated capital and notes issued by banks , mortgage real estate investment trusts and insurance companies . the u.s. municipal bond market , which has been the company 's principal market since 2007 , has also changed significantly during the past three years . municipal credits have experienced increased budgetary stress . in addition , many states and towns have significant unfunded pension and retiree health care liabilities that create additional budgetary stress . although total state tax collections as well as sales tax and personal income tax collections grew in 2011 , overall tax collections are still weak compared with recent historical standards . in 2011 , new issuance volume in the u.s. and international public finance sectors did not return to historical levels , and the market for financial guaranty insurance was hampered by ratings uncertainty and municipal rating recalibrations . the primary contributing factors to the trend of low issuance volume have been : municipal issuers took advantage of the expiring build america bonds program in 2010 as opposed to using financial guaranty insurance , a reduction in capital spending due to municipal budget constraints and fiscal austerity , resulting in less need for increased debt , and a reluctance to increase taxes to service principal and interest costs under new debt . in the international arena , troubled eurozone countries are a source of stress in global equity and debt markets as the eu determines how to support financially weaker members such as greece . the company 's exposure to greece and other troubled eurozone countries is described in `` —results of operations—consolidated results of operations—losses in the insured portfolio `` and `` —insured portfolio—selected european exposures . `` the current economic environment has had a significant negative impact on the demand by investors for financial guaranty policies , and it is uncertain when or if demand for financial guaranties will return to their pre-economic crisis level . in particular , there has been limited demand for financial guaranties in 2011 in both the global structured finance and international infrastructure finance markets and also limited new issuance activity in those asset classes the company is actively trying to insure . as a result , near-term opportunities for financial guaranties in these two sectors are largely in secondary markets . the company expects that global structured finance and international infrastructure opportunities will increase in the future as the global economy recovers , issuers return to the capital markets for financings and institutional investors again utilize financial guaranties , although the company can not assure that this will occur . financial guaranties had been an essential component of capital market financings for international infrastructure projects and asset-based lending , such as for auto loans and leases and equipment financings , but these financings have been largely financed in recent years with relatively short-term bank loans . in 2011 , the company continued to be affected by a negative perception of financial guaranty insurers arising from the financial distress suffered by other companies in the industry during the financial crisis . in addition , the financial strength ratings of the company 's insurance subsidiaries were uncertain for most of the year . in january 2011 , after affirming agm and agc 's financial strength 77 ratings at aa+ ( stable outlook ) in october 2010 , s & p requested comments on proposed changes to its bond insurance ratings criteria , noting that if the proposed criteria were adopted , s & p could lower its financial strength ratings on existing investment grade bond insurers by one or more rating categories . in august 2011 , s & p released its final criteria , which contained a new `` largest obligor test `` that had not been included in the january 2011 request for comment . the largest obligor test had the effect of significantly reducing assured guaranty 's allowed single risk limits and limiting its financial strength rating level . then , in september 2011 , s & p placed the financial strength ratings of agm and agc on creditwatch negative . it was not until november 2011 that agm and agc were assigned financial strength ratings of aa- ( stable outlook ) . story_separator_special_tag the financial products companies ' obligations are currently , and at all times in the future required to be , supported by eligible assets in an amount sufficient to allow the financial products companies to meet their obligations . on september 29 , 2011 , the transaction documents required an analysis of the value of fsa asset management llc ( `` fsam `` ) assets versus the gics obligations and other associated liabilities of the financial products companies . on that day , the required amount of assets exceeded the liabilities , and therefore dexia was not required to post additional collateral to support its protection arrangements . assured guaranty believes the assets owned by the financial products companies are sufficient for them to meet their gic obligations and other associated liabilities . however , dexia is required to post additional collateral if there is any shortfall in assets as compared with liabilities in the future . in addition , as further described under `` —liquidity and capital resources—liquidity arrangements with respect to agmh 's former financial products business , `` the company has entered into various agreements with dexia pursuant to which dexia has assumed the credit and liquidity risks associated with agmh 's former financial products business . the cash portion of the purchase price for the agmh acquisition was financed through the sale of 44,275,000 common shares and 3,450,000 equity units in a public offering in june 2009. the equity units initially consist of a forward purchase contract and a 5 % undivided beneficial ownership interest in $ 1,000 principal amount 8.50 % senior notes due 2014 issued by agus ( `` 8.50 % senior notes `` ) . for a description of the equity units , see `` —liquidity and capital resources—commitments and contingencies—long term debt obligations—debt issued by agus—8.50 % senior notes . `` the net proceeds after underwriting expenses and offering costs for these two offerings totaled approximately $ 616.5 million . the company has agreed with dexia holdings to operate the business of agm in accordance with certain key parameters that will limit the company 's operating and financial flexibility . such restrictions include , for a three year period following the acquisition date ; the inability to insure new structured finance obligations , required rating agency confirmation that certain specified actions would not cause any downgrade of agm , inability to pay dividends , and inability to enter into certain commutation , novation or cutthrough reinsurance agreements over specified amounts . generally , for three years after the closing of the agmh acquisition : unless agm is rated below a1 by moody 's and aa- by s & p , it will only insure public finance and infrastructure obligations . an exception applies in connection with the recapture of business ceded by agm to a third party reinsurer under certain circumstances . agm will continue to be domiciled in new york and be treated as a monoline bond insurer for regulatory purposes . 83 agm will not take any of the following actions unless it receives prior rating agency confirmation that such action would not cause any rating currently assigned to agm to be downgraded immediately following such action : ( a ) merger ; ( b ) issuance of debt or other borrowing exceeding $ 250 million ; ( c ) issuance of equity or other capital instruments exceeding $ 250 million ; ( d ) entry into new reinsurance arrangements involving more than 10 % of the portfolio as measured by either unearned premium reserve or net par outstanding ; or ( e ) any waiver , amendment or modification of any agreement relating to capital or liquidity support of agm exceeding $ 250 million . agm will not repurchase , redeem or pay any dividends in relation to any class of equity interests , unless : ( a ) at such time agm is rated at least aa- by s & p and aa3 by moody 's ( if such rating agencies still rate financial guaranty insurers generally ) and the aggregate amount of such dividends in any year does not exceed 125 % of agmh 's debt service for that year ; or ( b ) agm receives prior rating agency confirmation that such action would not cause any rating currently assigned to agm to be downgraded immediately following such action . agm will not enter into : ( a ) commutation or novation agreements with respect to its insured public finance portfolio involving a payment by agm exceeding $ 250 million ; or ( b ) any `` cut-through `` reinsurance , pledge of collateral security or similar arrangement involving a payment by agm whereby the benefits of reinsurance purchased by agm or of other assets of agm would be available on a preferred or priority basis to a particular class or subset of policyholders of agm relative to the position of dexia as policyholder upon the default or insolvency of agm ( whether or not with the consent of any relevant insurance regulatory authority ) . this provision does not limit : collateral arrangements between agm and its subsidiaries in support of intercompany reinsurance obligations ; or statutory deposits or other collateral arrangements required by law in connection with the conduct of business in any jurisdiction ; or pledges of recoveries or other amounts to secure repayment of amounts borrowed under agm 's `` soft capital `` facilities or its strip liquidity facility with dcl . see `` —liquidity and capital resources—liquidity arrangements with respect to agmh 's former financial products business—strip coverage facility for the leveraged lease business . `` furthermore , until the date on which ( 1 ) a credit rating has been assigned by s & p and moody 's to the gic issuers ( and or the liabilities of the gic issuers under the relevant gics have been separately rated by s & p and moody 's ) which is independent

principal and carrying amounts of debt replace_table_token_64_th ( 1 ) principal amounts vary from carrying amounts due primarily to acquisition method fair value adjustments at the acquisition date , which are accreted or amortized into interest expense over the remaining terms of these obligations . agl fully and unconditionally guarantees the following debt obligations issued by agus : ( 1 ) 7.0 % senior notes and ( 2 ) 8.50 % senior notes . agl also fully and unconditionally guarantees the following agmh debt obligations : ( 1 ) 6 7 / 8 % quarterly income bonds securities ( `` quibs '' ) , ( 2 ) 6.25 % notes and ( 3 ) 5.60 % notes . in addition , agl guarantees , on a junior subordinated basis , agus 's 135 series a , enhanced junior subordinated debentures and the $ 300 million of agmh 's outstanding junior subordinated debentures . debt issued by agus 7.0 % senior notes . on may 18 , 2004 , agus issued $ 200.0 million of 7.0 % senior notes due 2034 ( `` 7.0 % senior notes '' ) for net proceeds of $ 197.3 million . although the coupon on the senior notes is 7.0 % , the effective rate is approximately 6.4 % , taking into account the effect of a cash flow hedge executed by the company in march 2004 . 8.50 % senior notes . on june 24 , 2009 , agl issued 3,450,000 equity units for net proceeds of approximately $ 166.8 million in a registered public offering . the net proceeds of the offering were used to pay a portion of the consideration for the agmh acquisition . each equity unit consists of ( i ) a forward purchase contract and ( ii ) a 5 % undivided beneficial ownership interest in $ 1,000 principal amount 8.50 % senior notes due 2014 issued by agus .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```principal and carrying amounts of debt replace_table_token_64_th ( 1 ) principal amounts vary from carrying amounts due primarily to acquisition method fair value adjustments at the acquisition date , which are accreted or amortized into interest expense over the remaining terms of these obligations . agl fully and unconditionally guarantees the following debt obligations issued by agus : ( 1 ) 7.0 % senior notes and ( 2 ) 8.50 % senior notes . agl also fully and unconditionally guarantees the following agmh debt obligations : ( 1 ) 6 7 / 8 % quarterly income bonds securities ( `` quibs '' ) , ( 2 ) 6.25 % notes and ( 3 ) 5.60 % notes . in addition , agl guarantees , on a junior subordinated basis , agus 's 135 series a , enhanced junior subordinated debentures and the $ 300 million of agmh 's outstanding junior subordinated debentures . debt issued by agus 7.0 % senior notes . on may 18 , 2004 , agus issued $ 200.0 million of 7.0 % senior notes due 2034 ( `` 7.0 % senior notes '' ) for net proceeds of $ 197.3 million . although the coupon on the senior notes is 7.0 % , the effective rate is approximately 6.4 % , taking into account the effect of a cash flow hedge executed by the company in march 2004 . 8.50 % senior notes . on june 24 , 2009 , agl issued 3,450,000 equity units for net proceeds of approximately $ 166.8 million in a registered public offering . the net proceeds of the offering were used to pay a portion of the consideration for the agmh acquisition . each equity unit consists of ( i ) a forward purchase contract and ( ii ) a 5 % undivided beneficial ownership interest in $ 1,000 principal amount 8.50 % senior notes due 2014 issued by agus . ``` Suspicious Activity Report : 76 economic environment the company continued to be the most active provider of financial guaranty insurance in 2011 as a result of its financial strength and its ability to maintain its financial strength ratings in the double-a ratings category throughout the financial crisis . all of the company 's pre-2007 financial guaranty competitors , except agm , which the company acquired in 2009 , have had their financial strength ratings downgraded by rating agencies to below investment grade levels or are no longer rated , rendering them unable to underwrite new business . however , business conditions have been difficult for the entire financial guaranty insurance industry since mid-2007 and the company has faced challenges in maintaining its market penetration that continue today . while the overall economic environment in the u.s. at the end of 2011 was stronger than in 2010 , housing prices have not stabilized , unemployment rates have declined but remain relatively high and the ultimate credit experience on u.s. rmbs transactions underwritten from the end of 2004 through 2008 by many financial institutions , including the financial guaranty insurers , remains poor . furthermore , while hiring trends have improved , unemployment levels remain high and may take years to return to pre-recession levels , which may adversely affect assured guaranty 's loss experience on rmbs . in addition , the economic recession has also affected the credit performance of other markets , including securitizations of trust preferred securities ( `` trups `` ) that include subordinated capital and notes issued by banks , mortgage real estate investment trusts and insurance companies . the u.s. municipal bond market , which has been the company 's principal market since 2007 , has also changed significantly during the past three years . municipal credits have experienced increased budgetary stress . in addition , many states and towns have significant unfunded pension and retiree health care liabilities that create additional budgetary stress . although total state tax collections as well as sales tax and personal income tax collections grew in 2011 , overall tax collections are still weak compared with recent historical standards . in 2011 , new issuance volume in the u.s. and international public finance sectors did not return to historical levels , and the market for financial guaranty insurance was hampered by ratings uncertainty and municipal rating recalibrations . the primary contributing factors to the trend of low issuance volume have been : municipal issuers took advantage of the expiring build america bonds program in 2010 as opposed to using financial guaranty insurance , a reduction in capital spending due to municipal budget constraints and fiscal austerity , resulting in less need for increased debt , and a reluctance to increase taxes to service principal and interest costs under new debt . in the international arena , troubled eurozone countries are a source of stress in global equity and debt markets as the eu determines how to support financially weaker members such as greece . the company 's exposure to greece and other troubled eurozone countries is described in `` —results of operations—consolidated results of operations—losses in the insured portfolio `` and `` —insured portfolio—selected european exposures . `` the current economic environment has had a significant negative impact on the demand by investors for financial guaranty policies , and it is uncertain when or if demand for financial guaranties will return to their pre-economic crisis level . in particular , there has been limited demand for financial guaranties in 2011 in both the global structured finance and international infrastructure finance markets and also limited new issuance activity in those asset classes the company is actively trying to insure . as a result , near-term opportunities for financial guaranties in these two sectors are largely in secondary markets . the company expects that global structured finance and international infrastructure opportunities will increase in the future as the global economy recovers , issuers return to the capital markets for financings and institutional investors again utilize financial guaranties , although the company can not assure that this will occur . financial guaranties had been an essential component of capital market financings for international infrastructure projects and asset-based lending , such as for auto loans and leases and equipment financings , but these financings have been largely financed in recent years with relatively short-term bank loans . in 2011 , the company continued to be affected by a negative perception of financial guaranty insurers arising from the financial distress suffered by other companies in the industry during the financial crisis . in addition , the financial strength ratings of the company 's insurance subsidiaries were uncertain for most of the year . in january 2011 , after affirming agm and agc 's financial strength 77 ratings at aa+ ( stable outlook ) in october 2010 , s & p requested comments on proposed changes to its bond insurance ratings criteria , noting that if the proposed criteria were adopted , s & p could lower its financial strength ratings on existing investment grade bond insurers by one or more rating categories . in august 2011 , s & p released its final criteria , which contained a new `` largest obligor test `` that had not been included in the january 2011 request for comment . the largest obligor test had the effect of significantly reducing assured guaranty 's allowed single risk limits and limiting its financial strength rating level . then , in september 2011 , s & p placed the financial strength ratings of agm and agc on creditwatch negative . it was not until november 2011 that agm and agc were assigned financial strength ratings of aa- ( stable outlook ) . story_separator_special_tag the financial products companies ' obligations are currently , and at all times in the future required to be , supported by eligible assets in an amount sufficient to allow the financial products companies to meet their obligations . on september 29 , 2011 , the transaction documents required an analysis of the value of fsa asset management llc ( `` fsam `` ) assets versus the gics obligations and other associated liabilities of the financial products companies . on that day , the required amount of assets exceeded the liabilities , and therefore dexia was not required to post additional collateral to support its protection arrangements . assured guaranty believes the assets owned by the financial products companies are sufficient for them to meet their gic obligations and other associated liabilities . however , dexia is required to post additional collateral if there is any shortfall in assets as compared with liabilities in the future . in addition , as further described under `` —liquidity and capital resources—liquidity arrangements with respect to agmh 's former financial products business , `` the company has entered into various agreements with dexia pursuant to which dexia has assumed the credit and liquidity risks associated with agmh 's former financial products business . the cash portion of the purchase price for the agmh acquisition was financed through the sale of 44,275,000 common shares and 3,450,000 equity units in a public offering in june 2009. the equity units initially consist of a forward purchase contract and a 5 % undivided beneficial ownership interest in $ 1,000 principal amount 8.50 % senior notes due 2014 issued by agus ( `` 8.50 % senior notes `` ) . for a description of the equity units , see `` —liquidity and capital resources—commitments and contingencies—long term debt obligations—debt issued by agus—8.50 % senior notes . `` the net proceeds after underwriting expenses and offering costs for these two offerings totaled approximately $ 616.5 million . the company has agreed with dexia holdings to operate the business of agm in accordance with certain key parameters that will limit the company 's operating and financial flexibility . such restrictions include , for a three year period following the acquisition date ; the inability to insure new structured finance obligations , required rating agency confirmation that certain specified actions would not cause any downgrade of agm , inability to pay dividends , and inability to enter into certain commutation , novation or cutthrough reinsurance agreements over specified amounts . generally , for three years after the closing of the agmh acquisition : unless agm is rated below a1 by moody 's and aa- by s & p , it will only insure public finance and infrastructure obligations . an exception applies in connection with the recapture of business ceded by agm to a third party reinsurer under certain circumstances . agm will continue to be domiciled in new york and be treated as a monoline bond insurer for regulatory purposes . 83 agm will not take any of the following actions unless it receives prior rating agency confirmation that such action would not cause any rating currently assigned to agm to be downgraded immediately following such action : ( a ) merger ; ( b ) issuance of debt or other borrowing exceeding $ 250 million ; ( c ) issuance of equity or other capital instruments exceeding $ 250 million ; ( d ) entry into new reinsurance arrangements involving more than 10 % of the portfolio as measured by either unearned premium reserve or net par outstanding ; or ( e ) any waiver , amendment or modification of any agreement relating to capital or liquidity support of agm exceeding $ 250 million . agm will not repurchase , redeem or pay any dividends in relation to any class of equity interests , unless : ( a ) at such time agm is rated at least aa- by s & p and aa3 by moody 's ( if such rating agencies still rate financial guaranty insurers generally ) and the aggregate amount of such dividends in any year does not exceed 125 % of agmh 's debt service for that year ; or ( b ) agm receives prior rating agency confirmation that such action would not cause any rating currently assigned to agm to be downgraded immediately following such action . agm will not enter into : ( a ) commutation or novation agreements with respect to its insured public finance portfolio involving a payment by agm exceeding $ 250 million ; or ( b ) any `` cut-through `` reinsurance , pledge of collateral security or similar arrangement involving a payment by agm whereby the benefits of reinsurance purchased by agm or of other assets of agm would be available on a preferred or priority basis to a particular class or subset of policyholders of agm relative to the position of dexia as policyholder upon the default or insolvency of agm ( whether or not with the consent of any relevant insurance regulatory authority ) . this provision does not limit : collateral arrangements between agm and its subsidiaries in support of intercompany reinsurance obligations ; or statutory deposits or other collateral arrangements required by law in connection with the conduct of business in any jurisdiction ; or pledges of recoveries or other amounts to secure repayment of amounts borrowed under agm 's `` soft capital `` facilities or its strip liquidity facility with dcl . see `` —liquidity and capital resources—liquidity arrangements with respect to agmh 's former financial products business—strip coverage facility for the leveraged lease business . `` furthermore , until the date on which ( 1 ) a credit rating has been assigned by s & p and moody 's to the gic issuers ( and or the liabilities of the gic issuers under the relevant gics have been separately rated by s & p and moody 's ) which is independent

the fourth subsidiary is a service corporation which has been inactive since february 1 , 2003. forward-looking statements the company may from time to time make written or oral `` forward-looking statements `` , including statements contained in the company 's filings with the securities and exchange commission ( including this annual report on form 10-k and the exhibits thereto ) , in its reports to stockholders and in other communications by the company , which are made in good faith by the company pursuant to the `` safe harbor `` provisions of the private securities litigation reform act of 1995. when used in this annual report on form 10-k , words such as “ anticipates , ” “ estimates , ” “ believes , ” “ expects , ” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying such statements . these forward-looking statements involve risks and uncertainties , such as statements of the company 's plans , objectives , expectations , estimates and intentions that are subject to change based on various important factors ( some of which are beyond the company 's control ) . the following factors , among others , could cause the company 's financial performance to differ materially from the plans , objectives , expectations , estimates and intentions expressed in such forward-looking statements : the strength of the united states economy in general and the strength of the real estate values and the local economies in which the company conducts operations ; risks associated with the completion of the recent acquisition of hometown and its wholly-owned subsidiary hometown bank and the integration of hometown bank with the bank , including the possibility that we may not realize the anticipated benefits of the acquisition; future mergers or acquisitions ; the impact of recent and potential future changes in the laws , rules , regulations , interpretations and policies relating to financial institutions , accounting , tax , monetary and fiscal matters and their application by our regulators ; the effects of , and changes in , trade , monetary and fiscal policies and laws , changes in interest rates ; changes in libor ; the timely development of and acceptance of new products and services of the company and the perceived overall value of these products and services by users , including the features , pricing and quality compared to competitors ' products and services ; the impact of changes in financial services ' laws and regulations ( including laws concerning taxes , banking , securities and insurance ) ; asset quality deterioration ; environmental liability associated with real estate collateral ; technological changes and cybersecurity risks ; acquisitions ; employee retention ; the success of the company at managing the risks resulting from these factors ; and other factors set forth in reports and other documents filed by the company with the sec from time to time . for further information about these and other risks , uncertainties and factors , please review the disclosure included in item 1a . “ risk factors ” of this form 10-k. the company cautions that the listed factors are not exclusive . the company does not undertake to update any forward-looking statement , whether written or oral , that may be made from time to time by or on behalf of the company . 45 financial condition from december 31 , 2017 to december 31 , 2018 , the company 's total assets increased $ 170,678,350 ( 21 % ) to $ 965,137,870 , liabilities increased $ 165,091,251 ( 23 % ) to $ 884,659,278 , and stockholders ' equity increased $ 5,587,099 ( 7 % ) to $ 80,478,592. the ratio of stockholders ' equity to total assets was 8.3 % and 9.4 % at december 31 , 2018 and 2017 , respectively . from december 31 , 2017 to december 31 , 2018 , available-for-sale securities increased $ 5,037,524 ( 6 % ) , primarily due to $ 7,520,849 of securities acquired in the hometown acquisition . the company purchased $ 26,151,079 of investments while having sales and principal payments received of $ 26,965,492. the company had net unrealized losses of $ 1,836,406 at december 31 , 2018 compared to $ 844,379 at december 31 , 2017. from december 31 , 2017 to december 31 , 2018 , net loans receivable increased by $ 148,693,597 ( 24 % ) to $ 778,298,606. the addition of $ 143,918,642 in loans at fair value from the hometown acquisition along with continued production in the multi-family , agriculture , hospitality and small business administration ( “ sba ” ) lending were the primary drivers for growth in 2018. during the year , commercial real estate loans increased $ 61,055,038 ( 23 % ) , permanent 1-4 family loans increased $ 26,110,020 ( 25 % ) , commercial loans increased $ 24,846,644 ( 26 % ) , construction loans increased $ 23,810,413 ( 37 % ) , and consumer and other loans increased $ 8,374,570 ( 34 % ) . the company continues to focus its lending efforts in the commercial , owner occupied real estate and small business lending categories . as of december 31 , 2018 , management identified loans totaling $ 20,552,000 as impaired with a related allowance for loan losses of $ 1,612,000. impaired loans increased by $ 9,725,000 during 2018 , compared to the balance of $ 10,827,000 at december 31 , 2017. from december 31 , 2017 to december 31 , 2018 , the allowance for loan losses increased $ 888,151 to $ 7,995,569. in addition to the provision for loan losses of $ 1,225,000 recorded by the company during the year ended december 31 , 2018 , loan charge-offs of specific loans ( previously classified as nonperforming ) exceeded recoveries by $ 336,849 for the year ended december 31 , 2018. the increase in the allowance is primarily due to the story_separator_special_tag the company 's most liquid assets are cash and cash equivalents , which are cash on hand , amounts due from financial institutions , and certificates of deposit with other financial institutions that have an original maturity of three months or less . the levels of such assets are dependent on the bank 's operating , financing , and investment activities at any given time . the company 's cash and cash equivalents totaled $ 34,121,642 as of december 31 , 2018 and $ 37,406,930 as of december 31 , 2017 , representing a decrease of $ 3,285,288. the variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows , which are subject to , and influenced by , many factors . the bank has $ 153,851,915 in certificates of deposit that are scheduled to mature in one year or less . management anticipates that the majority of these certificates will renew in the normal course of operations . based on existing collateral as well as the fhlb 's limitation of advances to 35 % of assets , the bank has the ability to borrow an additional $ 120,599,000 from the fhlb , as of december 31 , 2018. based on existing collateral , the bank has the ability to borrow $ 53,700,000 from the federal reserve bank as of december 31 , 2018. the bank plans to maintain its fhlb and federal reserve bank borrowings to a level that will provide a borrowing capacity sufficient to provide for contingencies . management has many policies and controls in place to attempt to manage the appropriate level of liquidity . capital requirements the company meets the eligibility criteria of a small bank holding company in accordance with the federal reserve 's small bank holding company policy statement issued in february 2015 , and is no longer obligated to report consolidated regulatory capital . the bank continues to be subject to various capital requirements administered by banking agencies . failure to meet minimum capital requirements can trigger certain mandatory and discretionary actions by regulators that could have a direct material effect on the company 's financial statements . the bank 's capital amounts and classifications are also subject to qualitative judgments by regulators about components , risk weightings and other factors . 53 in july 2013 , the federal reserve issued a final rule that revised its risk-based and leverage capital requirements for banking organizations to align them with the basel iii regulatory capital framework and meet certain requirements of the dodd-frank act ( “ basel iii rule ” ) . the basel iii rule implemented a revised definition of regulatory capital , a new common equity tier 1 ( “ cet1 ” ) minimum capital requirement , and a higher minimum tier1 capital requirement . the final rules also made changes to the prompt corrective action framework for depository institutions by incorporating the new minimum capital ratios into the framework , introducing the cet1 capital measure , and aligning the definition of tangible equity for purposes of the critically undercapitalized prompt corrective action category with the definition of tier 1 capital . under the basel iii rule , the following three components comprise a banking organization 's “ regulatory capital ” : ( i ) “ cet1 capital , ” which is predominantly comprised of retained earnings and common stock instruments that meet certain criteria and related surplus ( net of any treasury stock ) , aoci ( for organizations that do not make opt-out elections ) , and cet1 minority interest , which are subject to certain restrictions ; ( ii ) “ additional tier 1 capital , ” which consists of non-cumulative perpetual preferred stock and similar instruments meeting specified eligibility criteria and related surplus , tier 1 minority interests not included in cet1 capital , and “ tarp ” preferred stock and other instruments issued under the emergency economic stabilization act of 2008 ; and ( iii ) “ tier 2 capital , ” which includes instruments such as subordinated debt that has a minimum original maturity of at least five years and is subordinated to the claims of depositors and general creditors , total capital minority interest not included in tier 1 capital and limited amounts of a banking organization 's allowance for loan and lease losses ( alll ) , less applicable regulatory adjustments and deductions . effective january 1 , 2015 , the final rule requires the bank to comply with the following minimum capital ratios : ( i ) a new common equity tier 1 capital ratio of 4.5 % of risk-weighted assets ; ( ii ) a tier 1 capital ratio of 6.0 % of risk-weighted assets ( increased from the prior requirement of 4.0 % ) ; ( iii ) a total capital ratio of 8.0 % of risk-weighted assets ( unchanged from the prior requirement ) ; and ( iv ) a leverage ratio of 4.0 % of total assets ( unchanged from the prior requirement ) . when fully phased in on january 1 , 2019 , the basel iii rule will require the bank to maintain ( i ) a minimum ratio of common equity tier 1 to risk-weighted assets of at least 4.5 % , plus a 2.5 % `` capital conservation buffer `` effectively resulting in a minimum ratio of common equity tier 1 to risk-weighted assets of at least 7.0 % upon full implementation ) ; ( ii ) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0 % , plus the 2.5 % capital conservation buffer effectively resulting in a minimum tier 1 capital ratio of 8.5 % upon full implementation ) ; ( iii ) a minimum ratio of total capital to risk-weighted assets of at least 8.0 % , plus the 2.5 % capital conservation buffer effectively resulting in a minimum total capital ratio of 10.5 % upon full implementation

cash dividends paid . the company paid dividends of $ 0.12 per share on april 19 , 2018 to stockholders of record as of april 9 , 2018 , $ 0.12 per share on july 19 , 2018 , to stockholders of record as of july 9 , 2018 , and $ .12 per share on october 19 , 2018 , to stockholders of record as of october 9 , 2018. the company also declared a cash dividend of $ 0.13 per share on december 21 , 2018 , which was paid on january 14 , 2019 , to stockholders of record on january 4 , 2019. during 2018 , 2017 and 2016 , the company paid $ 2,132,221 , $ 1,767,486 and $ 1,415,180 in dividends on common stock . 50 results of operations - comparison of year ended december 31 , 201 7 and december 31 , 201 6 interest rates replace_table_token_26_th the bank charges borrowers and pays depositors interest rates that are largely a function of the general level of interest rates . the above table sets forth the weekly average interest rates for the 52 weeks ending december 31 , 2017 and december 31 , 2016 as reported by the federal reserve . the bank typically indexes its adjustable rate commercial loans to prime and its adjustable rate mortgage loans to the one-year treasury rate . the ten-year treasury rate is a proxy for 30-year fixed rate home mortgage loans . rates trended upward during 2017 as the federal reserve open market committee ( “ fomc ” ) increased the discount rate by 25 basis points in march , june and december 2017. as of december 31 , 2017 , the prime rate was 4.5 % which is a 75 basis point increase from december 31 , 2016. interest income . total interest income increased $ 4,051,407 ( 16 % ) .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 . the company paid dividends of $ 0.12 per share on april 19 , 2018 to stockholders of record as of april 9 , 2018 , $ 0.12 per share on july 19 , 2018 , to stockholders of record as of july 9 , 2018 , and $ .12 per share on october 19 , 2018 , to stockholders of record as of october 9 , 2018. the company also declared a cash dividend of $ 0.13 per share on december 21 , 2018 , which was paid on january 14 , 2019 , to stockholders of record on january 4 , 2019. during 2018 , 2017 and 2016 , the company paid $ 2,132,221 , $ 1,767,486 and $ 1,415,180 in dividends on common stock . 50 results of operations - comparison of year ended december 31 , 201 7 and december 31 , 201 6 interest rates replace_table_token_26_th the bank charges borrowers and pays depositors interest rates that are largely a function of the general level of interest rates . the above table sets forth the weekly average interest rates for the 52 weeks ending december 31 , 2017 and december 31 , 2016 as reported by the federal reserve . the bank typically indexes its adjustable rate commercial loans to prime and its adjustable rate mortgage loans to the one-year treasury rate . the ten-year treasury rate is a proxy for 30-year fixed rate home mortgage loans . rates trended upward during 2017 as the federal reserve open market committee ( “ fomc ” ) increased the discount rate by 25 basis points in march , june and december 2017. as of december 31 , 2017 , the prime rate was 4.5 % which is a 75 basis point increase from december 31 , 2016. interest income . total interest income increased $ 4,051,407 ( 16 % ) . ``` Suspicious Activity Report : the fourth subsidiary is a service corporation which has been inactive since february 1 , 2003. forward-looking statements the company may from time to time make written or oral `` forward-looking statements `` , including statements contained in the company 's filings with the securities and exchange commission ( including this annual report on form 10-k and the exhibits thereto ) , in its reports to stockholders and in other communications by the company , which are made in good faith by the company pursuant to the `` safe harbor `` provisions of the private securities litigation reform act of 1995. when used in this annual report on form 10-k , words such as “ anticipates , ” “ estimates , ” “ believes , ” “ expects , ” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying such statements . these forward-looking statements involve risks and uncertainties , such as statements of the company 's plans , objectives , expectations , estimates and intentions that are subject to change based on various important factors ( some of which are beyond the company 's control ) . the following factors , among others , could cause the company 's financial performance to differ materially from the plans , objectives , expectations , estimates and intentions expressed in such forward-looking statements : the strength of the united states economy in general and the strength of the real estate values and the local economies in which the company conducts operations ; risks associated with the completion of the recent acquisition of hometown and its wholly-owned subsidiary hometown bank and the integration of hometown bank with the bank , including the possibility that we may not realize the anticipated benefits of the acquisition; future mergers or acquisitions ; the impact of recent and potential future changes in the laws , rules , regulations , interpretations and policies relating to financial institutions , accounting , tax , monetary and fiscal matters and their application by our regulators ; the effects of , and changes in , trade , monetary and fiscal policies and laws , changes in interest rates ; changes in libor ; the timely development of and acceptance of new products and services of the company and the perceived overall value of these products and services by users , including the features , pricing and quality compared to competitors ' products and services ; the impact of changes in financial services ' laws and regulations ( including laws concerning taxes , banking , securities and insurance ) ; asset quality deterioration ; environmental liability associated with real estate collateral ; technological changes and cybersecurity risks ; acquisitions ; employee retention ; the success of the company at managing the risks resulting from these factors ; and other factors set forth in reports and other documents filed by the company with the sec from time to time . for further information about these and other risks , uncertainties and factors , please review the disclosure included in item 1a . “ risk factors ” of this form 10-k. the company cautions that the listed factors are not exclusive . the company does not undertake to update any forward-looking statement , whether written or oral , that may be made from time to time by or on behalf of the company . 45 financial condition from december 31 , 2017 to december 31 , 2018 , the company 's total assets increased $ 170,678,350 ( 21 % ) to $ 965,137,870 , liabilities increased $ 165,091,251 ( 23 % ) to $ 884,659,278 , and stockholders ' equity increased $ 5,587,099 ( 7 % ) to $ 80,478,592. the ratio of stockholders ' equity to total assets was 8.3 % and 9.4 % at december 31 , 2018 and 2017 , respectively . from december 31 , 2017 to december 31 , 2018 , available-for-sale securities increased $ 5,037,524 ( 6 % ) , primarily due to $ 7,520,849 of securities acquired in the hometown acquisition . the company purchased $ 26,151,079 of investments while having sales and principal payments received of $ 26,965,492. the company had net unrealized losses of $ 1,836,406 at december 31 , 2018 compared to $ 844,379 at december 31 , 2017. from december 31 , 2017 to december 31 , 2018 , net loans receivable increased by $ 148,693,597 ( 24 % ) to $ 778,298,606. the addition of $ 143,918,642 in loans at fair value from the hometown acquisition along with continued production in the multi-family , agriculture , hospitality and small business administration ( “ sba ” ) lending were the primary drivers for growth in 2018. during the year , commercial real estate loans increased $ 61,055,038 ( 23 % ) , permanent 1-4 family loans increased $ 26,110,020 ( 25 % ) , commercial loans increased $ 24,846,644 ( 26 % ) , construction loans increased $ 23,810,413 ( 37 % ) , and consumer and other loans increased $ 8,374,570 ( 34 % ) . the company continues to focus its lending efforts in the commercial , owner occupied real estate and small business lending categories . as of december 31 , 2018 , management identified loans totaling $ 20,552,000 as impaired with a related allowance for loan losses of $ 1,612,000. impaired loans increased by $ 9,725,000 during 2018 , compared to the balance of $ 10,827,000 at december 31 , 2017. from december 31 , 2017 to december 31 , 2018 , the allowance for loan losses increased $ 888,151 to $ 7,995,569. in addition to the provision for loan losses of $ 1,225,000 recorded by the company during the year ended december 31 , 2018 , loan charge-offs of specific loans ( previously classified as nonperforming ) exceeded recoveries by $ 336,849 for the year ended december 31 , 2018. the increase in the allowance is primarily due to the story_separator_special_tag the company 's most liquid assets are cash and cash equivalents , which are cash on hand , amounts due from financial institutions , and certificates of deposit with other financial institutions that have an original maturity of three months or less . the levels of such assets are dependent on the bank 's operating , financing , and investment activities at any given time . the company 's cash and cash equivalents totaled $ 34,121,642 as of december 31 , 2018 and $ 37,406,930 as of december 31 , 2017 , representing a decrease of $ 3,285,288. the variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows , which are subject to , and influenced by , many factors . the bank has $ 153,851,915 in certificates of deposit that are scheduled to mature in one year or less . management anticipates that the majority of these certificates will renew in the normal course of operations . based on existing collateral as well as the fhlb 's limitation of advances to 35 % of assets , the bank has the ability to borrow an additional $ 120,599,000 from the fhlb , as of december 31 , 2018. based on existing collateral , the bank has the ability to borrow $ 53,700,000 from the federal reserve bank as of december 31 , 2018. the bank plans to maintain its fhlb and federal reserve bank borrowings to a level that will provide a borrowing capacity sufficient to provide for contingencies . management has many policies and controls in place to attempt to manage the appropriate level of liquidity . capital requirements the company meets the eligibility criteria of a small bank holding company in accordance with the federal reserve 's small bank holding company policy statement issued in february 2015 , and is no longer obligated to report consolidated regulatory capital . the bank continues to be subject to various capital requirements administered by banking agencies . failure to meet minimum capital requirements can trigger certain mandatory and discretionary actions by regulators that could have a direct material effect on the company 's financial statements . the bank 's capital amounts and classifications are also subject to qualitative judgments by regulators about components , risk weightings and other factors . 53 in july 2013 , the federal reserve issued a final rule that revised its risk-based and leverage capital requirements for banking organizations to align them with the basel iii regulatory capital framework and meet certain requirements of the dodd-frank act ( “ basel iii rule ” ) . the basel iii rule implemented a revised definition of regulatory capital , a new common equity tier 1 ( “ cet1 ” ) minimum capital requirement , and a higher minimum tier1 capital requirement . the final rules also made changes to the prompt corrective action framework for depository institutions by incorporating the new minimum capital ratios into the framework , introducing the cet1 capital measure , and aligning the definition of tangible equity for purposes of the critically undercapitalized prompt corrective action category with the definition of tier 1 capital . under the basel iii rule , the following three components comprise a banking organization 's “ regulatory capital ” : ( i ) “ cet1 capital , ” which is predominantly comprised of retained earnings and common stock instruments that meet certain criteria and related surplus ( net of any treasury stock ) , aoci ( for organizations that do not make opt-out elections ) , and cet1 minority interest , which are subject to certain restrictions ; ( ii ) “ additional tier 1 capital , ” which consists of non-cumulative perpetual preferred stock and similar instruments meeting specified eligibility criteria and related surplus , tier 1 minority interests not included in cet1 capital , and “ tarp ” preferred stock and other instruments issued under the emergency economic stabilization act of 2008 ; and ( iii ) “ tier 2 capital , ” which includes instruments such as subordinated debt that has a minimum original maturity of at least five years and is subordinated to the claims of depositors and general creditors , total capital minority interest not included in tier 1 capital and limited amounts of a banking organization 's allowance for loan and lease losses ( alll ) , less applicable regulatory adjustments and deductions . effective january 1 , 2015 , the final rule requires the bank to comply with the following minimum capital ratios : ( i ) a new common equity tier 1 capital ratio of 4.5 % of risk-weighted assets ; ( ii ) a tier 1 capital ratio of 6.0 % of risk-weighted assets ( increased from the prior requirement of 4.0 % ) ; ( iii ) a total capital ratio of 8.0 % of risk-weighted assets ( unchanged from the prior requirement ) ; and ( iv ) a leverage ratio of 4.0 % of total assets ( unchanged from the prior requirement ) . when fully phased in on january 1 , 2019 , the basel iii rule will require the bank to maintain ( i ) a minimum ratio of common equity tier 1 to risk-weighted assets of at least 4.5 % , plus a 2.5 % `` capital conservation buffer `` effectively resulting in a minimum ratio of common equity tier 1 to risk-weighted assets of at least 7.0 % upon full implementation ) ; ( ii ) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0 % , plus the 2.5 % capital conservation buffer effectively resulting in a minimum tier 1 capital ratio of 8.5 % upon full implementation ) ; ( iii ) a minimum ratio of total capital to risk-weighted assets of at least 8.0 % , plus the 2.5 % capital conservation buffer effectively resulting in a minimum total capital ratio of 10.5 % upon full implementation

the enterprise products employing our technology would allow users in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair and sales data and orders within crm applications on a larger , more user-friendly interface . we also see potential for embedding the picop laser display engine in industrial products where our displays could be used for 3d measuring and digital signage , enhancing the overall user experience of these applications . we currently market and sell our showwx line of accessory pico projectors , which use our picop display engine through a network of global distributors . we continue to enter into a limited number of development agreements with commercial and u.s. government customers to develop advanced prototypes and demonstration units based on our light scanning technologies . we have incurred substantial losses since inception and expect to incur a substantial loss during the fiscal year ending december 31 , 2012. key accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with 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 , revenues and expenses , and related disclosure of contingent liabilities . we evaluate our estimates on an on-going basis . we base our estimates on historical experience , terms of existing contracts , our evaluation of trends in the display and image capture industries , information provided by our current and prospective customers and strategic partners , information available from other outside sources , and on various other assumptions we believe to be reasonable under the circumstances . the results form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following key accounting policies require more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition . our product sales generally include acceptance provisions . we recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period , after which there are no rights of return . we have entered into agreements with resellers and distributors , as well as selling directly to the public . sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period , depending on our ability to reasonably estimate returns . some of the agreements with resellers and distributors contain price-protection clauses , and revenue is recognized net of these 17 amounts . sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return , or net of estimated returns and allowances . provisions are made for warranties at the time revenue is recorded . our quarterly revenue may vary substantially due to the timing of product orders from customers , production constraints and availability of components and raw materials . we recognize contract revenue as work progresses on long-term , cost plus fixed fee , and fixed price contracts using the percentage-of-completion method , which relies on estimates of total expected contract revenue and costs . we have developed processes that allow us to make reasonable estimates of the cost to complete a contract . when we begin work on the contract and at the end of each accounting period , we estimate the labor , material and other costs required to complete the contract using information provided by our technical team , project managers , vendors , outside consultants and others and compare these to costs incurred to date . since our contracts generally require some level of technology development to complete , the actual cost required to complete a contract can vary from our estimates . recognized revenues are subject to revisions as actual cost becomes certain . revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known . historically , we have made only immaterial revisions in the estimates to complete the contract at each reporting period . in the future , revisions in these estimates could significantly impact recognized revenue in any one reporting period . if the u.s. government cancels a contract , we would receive payment for work performed and costs committed to prior to the cancellation . we recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period , after which there are no rights of return . cost of revenue . cost of revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units , evaluation kits , showwx and rov units . direct costs include labor , materials and other costs incurred directly in performing on a contract or producing prototype units , evaluation kits , and accessory pico projector products . indirect costs include labor and other costs associated with operating our research and development department and building our manufacturing and technical capabilities and capacity . our overhead , which includes the costs of procuring , inspecting and storing material , and facility and depreciation costs , is allocated to inventory , cost of product revenue , cost of contract revenue , and research and development expense based on the proportion of direct material purchased for the respective activity . story_separator_special_tag replace_table_token_10_th pico projector revenue includes the sales of showwx which was launched in september 2009 and the showwx+ which was launched in november 2010. bar code revenue includes the sales of rov bar code scanners . the decrease in bar code revenue for the year ended december 31 , 2010 compared to the same period in 2009 was due to our decreased investment in our bar code product during 2009. the backlog of product orders at december 31 , 2010 was approximately $ 12.7 million , compared to $ 3.8 million at december 31 , 2009. contract revenue . replace_table_token_11_th we earn contract revenue from performance on development contracts with the u.s. government and commercial customers and from the sale of prototype units and evaluation kits based on our picop display engine . our contract revenue in a particular period is dependent upon when we enter into a contract , the value of the contracts we have entered into , and the availability of technical resources to perform work on the contracts . contract revenue from government and commercial contracts was substantially lower during 2010 than in 2009 due to reduced contract activity and lower beginning backlog in 2010 compared to the previous year . our backlog of development contracts , including orders for prototype units and evaluation kits , at december 31 , 2010 was $ 868,000 in government contracts and $ 81,000 in commercial contracts compared to $ 70,000 in government contracts and $ 30,000 in commercial contracts at december 31 , 2009. the increase in backlog from 2009 is primarily attributed to two contracts with the us government entered into in late 2010 . 23 cost of product revenue . replace_table_token_12_th our costs to produce accessory pico projector units during 2010 were substantially higher than product revenue . during the early phase of showwx production , our design and manufacturing processes were not sufficiently mature to support commercial production . we classified overhead cost allocated to the showwx as research and development expense until february 2010 , when we determined that the showwx design and production processes were mature enough to reach a level to support commercial production and since february 2010 , all manufacturing costs have been included in cost of revenue . cost of product revenue for 2010 and 2009 , included a write down of $ 9.6 million and $ 1.3 million , respectively , for inventory in stock at the end of the year . the write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect the then current estimated selling price for our inventory , as well as a reserve adjustment for materials which we expect would become obsolete as we introduced new products . the increase in cost of product revenue for 2010 , compared to 2009 , was primarily attributed to increased material costs associated with higher volumes of product shipments and increased inventory write downs compared to the prior year . the increase in the cost of product revenue as a percentage of product revenue in 2010 compared to the same period in 2009 was due to an increase in inventory write downs and a higher cost structure for the showwx product . cost of contract revenue . replace_table_token_13_th the cost of contract revenue was lower in 2010 than in 2009 as a result of the decreased activity on development contracts as we continue to focus our resources on commercialization of products based on the picop display engine . the cost of contract revenue as a percentage of revenue was lower in 2010 than in 2009 as a result of difference in the cost mix of the contracts during those periods . research and development expense . 2010 2009 $ change % change ( in thousands ) research and development $ 21,600 $ 24,577 $ ( 2,977 ) ( 12.1 ) the decrease in cost during 2010 , compared to the same period in 2009 , is primarily attributable to less direct material purchased for development programs and a decrease in overhead allocated to research and development . sales , marketing , general and administrative expense . 2010 2009 $ change % change ( in thousands ) sales , marketing , general and administrative $ 15,252 $ 14,540 $ 712 4.9 24 the increase in cost during 2010 compared to the same period in 2009 is primarily due to increased sales and marketing expense related to promoting our accessory pico projector products . interest income and expense . replace_table_token_14_th replace_table_token_15_th the decrease in interest income in 2010 from 2009 results primarily from lower average cash , investments securities balances , and interest rates . realized loss on sale of investment securities at december 31 , 2009 , we held $ 3.0 million par value student loan auction-rate securities ( slars ) , fair valued at $ 2.7 million . in march and december 2010 , one of the issuers redeemed a total of $ 200,000 of our slars at par value through a voluntary lottery redemption program . in december 2010 , we sold our remaining slars for proceeds of approximately $ 2.4 million and recorded a loss of $ 127,000 which is included in `` realized loss on sale of investment securities `` on the consolidated statement of operations . gain ( loss ) on derivative instruments , net . replace_table_token_16_th the change in `` gain ( loss ) on derivative instruments , net `` is primarily driven by the change in value of warrants we issued in 2005 to purchase 2,302,000 shares of common stock in connection with certain notes . the warrants met the definition of derivative instruments that must be accounted for as liabilities because we could not engage in certain corporate transactions affecting the common stock unless we made a cash payment to the holders of the warrants . we recorded changes in the fair values of the warrants in the statement of operations each

liquidity and capital resources we have incurred significant losses since inception . we have funded operations to date primarily through the sale of common stock , convertible preferred stock , warrants , the issuance of convertible debt and , to a lesser extent , from development contract revenues and product sales . at december 31 , 2011 , we had $ 13.1 million in cash , cash equivalents , and investment securities , available-for-sale . during 2011 , we lowered our cash used in operations significantly , through a combination of : sharing development and commercialization costs of the next-generation picop technology based on direct green lasers with our development partners ; limiting our investment into advancement of the current-generation picop technology based on synthetic green lasers ; moving product development to original design manufacturers lowering our working capital requirements through a restructuring of inventory cycles with major suppliers ; 25 reducing our operating costs through a 20 % workforce reduction completed in january 2011 , in addition to other measures . based on our current operating plan , we anticipate that we have sufficient cash and cash equivalents to fund our operations through june 2012. we will require additional cash to fund our operating plan past that time . we are introducing new products into an emerging market which creates significant uncertainty about our ability to accurately project revenue , costs and cash flows . if the level of sales anticipated by our financial plan is not achieved or our working capital requirements are higher than planned , we will need to raise additional cash sooner or take actions to reduce operating expenses . we plan to obtain additional cash through the issuance of equity or debt securities . there can be no assurance that additional cash will be available or that , if available , it will be available on terms acceptable to us on a timely basis . if adequate funds are not available on a timely basis we may be required to limit our operations substantially .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 losses since inception . we have funded operations to date primarily through the sale of common stock , convertible preferred stock , warrants , the issuance of convertible debt and , to a lesser extent , from development contract revenues and product sales . at december 31 , 2011 , we had $ 13.1 million in cash , cash equivalents , and investment securities , available-for-sale . during 2011 , we lowered our cash used in operations significantly , through a combination of : sharing development and commercialization costs of the next-generation picop technology based on direct green lasers with our development partners ; limiting our investment into advancement of the current-generation picop technology based on synthetic green lasers ; moving product development to original design manufacturers lowering our working capital requirements through a restructuring of inventory cycles with major suppliers ; 25 reducing our operating costs through a 20 % workforce reduction completed in january 2011 , in addition to other measures . based on our current operating plan , we anticipate that we have sufficient cash and cash equivalents to fund our operations through june 2012. we will require additional cash to fund our operating plan past that time . we are introducing new products into an emerging market which creates significant uncertainty about our ability to accurately project revenue , costs and cash flows . if the level of sales anticipated by our financial plan is not achieved or our working capital requirements are higher than planned , we will need to raise additional cash sooner or take actions to reduce operating expenses . we plan to obtain additional cash through the issuance of equity or debt securities . there can be no assurance that additional cash will be available or that , if available , it will be available on terms acceptable to us on a timely basis . if adequate funds are not available on a timely basis we may be required to limit our operations substantially . ``` Suspicious Activity Report : the enterprise products employing our technology would allow users in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair and sales data and orders within crm applications on a larger , more user-friendly interface . we also see potential for embedding the picop laser display engine in industrial products where our displays could be used for 3d measuring and digital signage , enhancing the overall user experience of these applications . we currently market and sell our showwx line of accessory pico projectors , which use our picop display engine through a network of global distributors . we continue to enter into a limited number of development agreements with commercial and u.s. government customers to develop advanced prototypes and demonstration units based on our light scanning technologies . we have incurred substantial losses since inception and expect to incur a substantial loss during the fiscal year ending december 31 , 2012. key accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with 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 , revenues and expenses , and related disclosure of contingent liabilities . we evaluate our estimates on an on-going basis . we base our estimates on historical experience , terms of existing contracts , our evaluation of trends in the display and image capture industries , information provided by our current and prospective customers and strategic partners , information available from other outside sources , and on various other assumptions we believe to be reasonable under the circumstances . the results form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following key accounting policies require more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition . our product sales generally include acceptance provisions . we recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period , after which there are no rights of return . we have entered into agreements with resellers and distributors , as well as selling directly to the public . sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period , depending on our ability to reasonably estimate returns . some of the agreements with resellers and distributors contain price-protection clauses , and revenue is recognized net of these 17 amounts . sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return , or net of estimated returns and allowances . provisions are made for warranties at the time revenue is recorded . our quarterly revenue may vary substantially due to the timing of product orders from customers , production constraints and availability of components and raw materials . we recognize contract revenue as work progresses on long-term , cost plus fixed fee , and fixed price contracts using the percentage-of-completion method , which relies on estimates of total expected contract revenue and costs . we have developed processes that allow us to make reasonable estimates of the cost to complete a contract . when we begin work on the contract and at the end of each accounting period , we estimate the labor , material and other costs required to complete the contract using information provided by our technical team , project managers , vendors , outside consultants and others and compare these to costs incurred to date . since our contracts generally require some level of technology development to complete , the actual cost required to complete a contract can vary from our estimates . recognized revenues are subject to revisions as actual cost becomes certain . revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known . historically , we have made only immaterial revisions in the estimates to complete the contract at each reporting period . in the future , revisions in these estimates could significantly impact recognized revenue in any one reporting period . if the u.s. government cancels a contract , we would receive payment for work performed and costs committed to prior to the cancellation . we recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period , after which there are no rights of return . cost of revenue . cost of revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units , evaluation kits , showwx and rov units . direct costs include labor , materials and other costs incurred directly in performing on a contract or producing prototype units , evaluation kits , and accessory pico projector products . indirect costs include labor and other costs associated with operating our research and development department and building our manufacturing and technical capabilities and capacity . our overhead , which includes the costs of procuring , inspecting and storing material , and facility and depreciation costs , is allocated to inventory , cost of product revenue , cost of contract revenue , and research and development expense based on the proportion of direct material purchased for the respective activity . story_separator_special_tag replace_table_token_10_th pico projector revenue includes the sales of showwx which was launched in september 2009 and the showwx+ which was launched in november 2010. bar code revenue includes the sales of rov bar code scanners . the decrease in bar code revenue for the year ended december 31 , 2010 compared to the same period in 2009 was due to our decreased investment in our bar code product during 2009. the backlog of product orders at december 31 , 2010 was approximately $ 12.7 million , compared to $ 3.8 million at december 31 , 2009. contract revenue . replace_table_token_11_th we earn contract revenue from performance on development contracts with the u.s. government and commercial customers and from the sale of prototype units and evaluation kits based on our picop display engine . our contract revenue in a particular period is dependent upon when we enter into a contract , the value of the contracts we have entered into , and the availability of technical resources to perform work on the contracts . contract revenue from government and commercial contracts was substantially lower during 2010 than in 2009 due to reduced contract activity and lower beginning backlog in 2010 compared to the previous year . our backlog of development contracts , including orders for prototype units and evaluation kits , at december 31 , 2010 was $ 868,000 in government contracts and $ 81,000 in commercial contracts compared to $ 70,000 in government contracts and $ 30,000 in commercial contracts at december 31 , 2009. the increase in backlog from 2009 is primarily attributed to two contracts with the us government entered into in late 2010 . 23 cost of product revenue . replace_table_token_12_th our costs to produce accessory pico projector units during 2010 were substantially higher than product revenue . during the early phase of showwx production , our design and manufacturing processes were not sufficiently mature to support commercial production . we classified overhead cost allocated to the showwx as research and development expense until february 2010 , when we determined that the showwx design and production processes were mature enough to reach a level to support commercial production and since february 2010 , all manufacturing costs have been included in cost of revenue . cost of product revenue for 2010 and 2009 , included a write down of $ 9.6 million and $ 1.3 million , respectively , for inventory in stock at the end of the year . the write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect the then current estimated selling price for our inventory , as well as a reserve adjustment for materials which we expect would become obsolete as we introduced new products . the increase in cost of product revenue for 2010 , compared to 2009 , was primarily attributed to increased material costs associated with higher volumes of product shipments and increased inventory write downs compared to the prior year . the increase in the cost of product revenue as a percentage of product revenue in 2010 compared to the same period in 2009 was due to an increase in inventory write downs and a higher cost structure for the showwx product . cost of contract revenue . replace_table_token_13_th the cost of contract revenue was lower in 2010 than in 2009 as a result of the decreased activity on development contracts as we continue to focus our resources on commercialization of products based on the picop display engine . the cost of contract revenue as a percentage of revenue was lower in 2010 than in 2009 as a result of difference in the cost mix of the contracts during those periods . research and development expense . 2010 2009 $ change % change ( in thousands ) research and development $ 21,600 $ 24,577 $ ( 2,977 ) ( 12.1 ) the decrease in cost during 2010 , compared to the same period in 2009 , is primarily attributable to less direct material purchased for development programs and a decrease in overhead allocated to research and development . sales , marketing , general and administrative expense . 2010 2009 $ change % change ( in thousands ) sales , marketing , general and administrative $ 15,252 $ 14,540 $ 712 4.9 24 the increase in cost during 2010 compared to the same period in 2009 is primarily due to increased sales and marketing expense related to promoting our accessory pico projector products . interest income and expense . replace_table_token_14_th replace_table_token_15_th the decrease in interest income in 2010 from 2009 results primarily from lower average cash , investments securities balances , and interest rates . realized loss on sale of investment securities at december 31 , 2009 , we held $ 3.0 million par value student loan auction-rate securities ( slars ) , fair valued at $ 2.7 million . in march and december 2010 , one of the issuers redeemed a total of $ 200,000 of our slars at par value through a voluntary lottery redemption program . in december 2010 , we sold our remaining slars for proceeds of approximately $ 2.4 million and recorded a loss of $ 127,000 which is included in `` realized loss on sale of investment securities `` on the consolidated statement of operations . gain ( loss ) on derivative instruments , net . replace_table_token_16_th the change in `` gain ( loss ) on derivative instruments , net `` is primarily driven by the change in value of warrants we issued in 2005 to purchase 2,302,000 shares of common stock in connection with certain notes . the warrants met the definition of derivative instruments that must be accounted for as liabilities because we could not engage in certain corporate transactions affecting the common stock unless we made a cash payment to the holders of the warrants . we recorded changes in the fair values of the warrants in the statement of operations each

our revenue growth is dependent on our ability to develop and introduce new products to meet the changing technology and performance requirements of our customers , the diversification and expansion of our revenue base , and our ability to market our products in a manner that increases awareness for microinverter technology and differentiates us in the marketplace . 30 cost of revenues and gross profit cost of revenues is comprised primarily of product costs , warranty , manufacturing personnel and logistics costs , freight costs , depreciation and amortization of test equipment and hosting services costs . our product costs are impacted by technological innovations , such as advances in semiconductor integration and new product introductions , economies of scale resulting in lower component costs , and improvements in production processes and automation . certain costs , primarily personnel and depreciation and amortization of test equipment , are not directly affected by sales volume . we outsource our manufacturing to third-party contract manufacturers and generally negotiate product pricing with them on a quarterly basis . we believe our contract manufacturing partners have sufficient production capacity to meet the growing demand for our products for the foreseeable future . however , shortages in the supply of certain key raw materials could adversely affect our ability to meet customer demand for our products . in addition , third parties , including one of our contract manufacturers , serve as our logistics providers by warehousing and delivering our products in north america , europe , australia and new zealand . gross profit may vary from quarter to quarter and is primarily affected by our average selling prices , product cost , product mix , warranty costs ( including changes in estimates ) and sales volume fluctuations resulting from seasonality . operating expenses operating expenses consist of research and development , sales and marketing and general and administrative expenses . personnel-related costs are the most significant component of each of these expense categories and include salaries , benefits , payroll taxes , recruiting costs , sales commissions , incentive compensation and stock-based compensation . we expect personnel costs to continue to increase as we hire new employees to support our anticipated growth . we expect that each of the categories of operating expenses discussed below will increase in absolute dollars , but will decline as a percentage of total revenues in the long term . research and development expense includes personnel-related expenses such as salaries , incentive compensation , stock-based compensation and employee benefits . research and development employees are engaged in the design and development of power electronics , semiconductors , powerline communications and networking and software functionality . research and development expense also includes third-party design and development costs , testing and evaluation costs , depreciation expense and other indirect costs . we devote substantial resources in ongoing research and development programs that focus on enhancements to and cost efficiencies in our existing products and timely development of new products that utilize technological innovation to drive down product costs , improve functionality , and enhance reliability . we intend to continue to invest substantial resources in our research and development efforts because we believe they are critical to maintaining our competitive position . sales and marketing expense consists primarily of personnel-related expenses such as salaries , commissions , incentive compensation , stock-based compensation , employee benefits and travel . it also includes trade shows , marketing , customer support and other indirect costs . we expect to continue to make the necessary investments to enable us to execute our strategy to increase our market penetration geographically and enter into new markets by expanding our customer base of distributors , large installers , oems and strategic partners . historically , substantially all of our sales have been in the united states and canada . we began selling into france , italy and the benelux region in the fourth quarter of 2011 and commenced volume shipments to such regions in the second quarter of 2012. in addition , we opened a sales office in the united kingdom during the second quarter of 2012 and began shipping products to the united kingdom in the third quarter of 2012. in late 2013 , we expanded into the australia and new zealand markets by opening a sales office in australia . we expect to continue to expand the geographic reach of our product offerings and explore new sales channels in addressable markets in the future . general and administrative expense consists primarily of salaries , incentive compensation , stock-based compensation and employee benefits for personnel related to our executive , finance , human resources , information technology and legal organizations . general and administrative expense also includes facilities costs and fees for professional services . professional services consist primarily of outside legal , accounting and information technology consulting costs . other income ( expense ) , net other income ( expense ) , net includes interest expense on amounts outstanding under our term loans , convertible note facility and non-cash interest expense related to the amortization of debt discounts and deferred financing costs . other income ( expense ) , net also includes gains or losses upon conversion of non-u.s. dollar transactions into u.s. dollars and from foreign currency forward contracts . 31 provision for income taxes we are subject to income taxes in the countries where we sell our products . historically , we have primarily been subject to taxation in the united states because we have sold the vast majority of our products to customers in the united states . as we have expanded the sale of products to customers outside the united states , we have become subject to taxation based on the foreign statutory rates in the countries where these sales took place . as sales in foreign jurisdictions increase in the future , our effective tax rate may fluctuate accordingly . story_separator_special_tag revenues from sales of microinverters and related accessories , and communication gateways are recognized when : ( i ) persuasive evidence of an arrangement exists ; ( ii ) delivery of the products has occurred in accordance with the terms of the sales agreement and title and risk of loss have passed to the customer ; ( iii ) the sale price is fixed or determinable ; and ( iv ) collection is reasonably assured . provisions for rebates , sales incentives , and discounts to customers are accounted for as reductions in revenue in the same period the related sales are recorded . sales of an envoy communications gateway device include the enlighten web-based monitoring service . the allocation of revenue between the two deliverables is based on our best estimate of selling price determined by considering multiple factors including , internal costs , gross margin and historical pricing practices . after allocating the overall consideration from such sale to each deliverable using a best estimate of the selling price , ( i ) revenue from the sale of envoy devices is recognized upon shipment , assuming all other revenue recognition criteria have been met and ( ii ) revenue from the web-based monitoring service is recognized ratably over the estimated economic life of the related envoy devices of 10 years . inventory inventory is valued at the lower of cost or market . we determine cost on a first-in first-out basis . certain factors could affect the realizable value of its inventory , including customer demand and market conditions . management assesses the valuation on a quarterly basis and writes down the value for any excess and obsolete inventory based upon expected demand , anticipated sales price , effect of new product introductions , product obsolescence , customer concentrations , product merchantability and other factors . inventory write-downs are equal to the difference between the cost of inventories and their estimated net realizable market value . in 2014 and 2013 , write-downs of inventories were insignificant . in 2012 , we recorded write-downs of inventories of $ 0.8 million . business combinations we allocate the fair value of purchase consideration to the tangible and intangible assets acquired , and liabilities assumed based on their estimated fair values at the acquisition date . we use judgment to estimate the fair value of contingent consideration ( a component of the purchase consideration ) , identify all the tangible and intangible assets acquired , estimate the fair value of these assets , estimate the useful life of the assets , and assess the appropriate method for recognizing depreciation or amortization expense over the asset 's useful life . we believe that the accounting estimates related to purchase price allocations are critical accounting estimates because the assumptions impact the amounts and classifications of assets and liabilities presented in our consolidated balance sheets , the future amount of amortization and depreciation expense that will be recorded in our consolidated statements of operations , and the amount of goodwill which will be subject to impairment testing performed in subsequent periods . critical estimates in valuing contingent consideration include but are not limited to probabilities applied to multiple payout scenarios and a risk-adjusted discount rate . critical estimates in valuing intangible assets ( i.e . customer relationships ) include but are not limited to future expected cash flows from customer relationships and customer attrition rates . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable and , as a result , actual results may differ from estimates . 38 warranty obligations microinverters sold through december 31 , 2013 our warranty accrual provides for the replacement of microinverter units that fail during the product 's warranty term ( 15 years for first and second generation microinverters and up to 25 years for third and fourth generation microinverters ) . on a quarterly basis , we employ a consistent , systematic and rational methodology to assess the adequacy of its warranty liability . this assessment includes updating all key estimates and assumptions for each generation of product , based on historical results , trends and the most current data available as of the filing date . the key estimates and assumptions used in the warranty liability are thoroughly reviewed by management on a quarterly basis . the key estimates used by us to estimate its warranty liability are : ( 1 ) the number of units expected to fail over time ( i.e . failure rate ) ; ( 2 ) the number of failed units expected to result in warranty claims over time ( i.e . claim rate ) ; and ( 3 ) the per unit cost of replacement units , including outbound shipping and limited labor costs , expected to be incurred to replace failed units over time ( i.e . replacement cost ) . estimated failure rates— our quality and reliability department has primary responsibility to determine the estimated failure rates for each generation of microinverter . to establish initial failure rate estimates for each generation of microinverter , our quality engineers use a combination of industry standard mtbf ( mean time between failure ) estimates for individual components contained in its microinverters , third party data collected on similar equipment deployed in outdoor environments similar to those in which our microinverters are installed , and rigorous long term reliability and accelerated life cycle testing which simulates the service life of the microinverter in a short period of time . as units are deployed into operating environments , we continue to monitor product performance via our enlighten monitoring platform . it typically takes three to nine months between the date of sale and date of end-user installation . consequently , our ability to monitor actual failures of units sold similarly lags by three to nine months . when a microinverter fails and is returned , we performs diagnostic root cause

cash flows from operating activities for 2014 , net cash provided by operating activities was $ 24.2 million . our net loss of $ 8.1 million was more than offset by non-cash charges and net changes in operating assets and liabilities . non-cash charges included $ 9.7 million of stock-based compensation , $ 8.3 million of depreciation and amortization and $ 1.4 million of other non-cash charges . in addition , cash provided by net changes in operating assets and liabilities was $ 12.8 million . sources of cash totaled $ 34.1 million resulting from an increase of $ 25.3 million in accounts payable , accrued and other liabilities , an increase of $ 5.3 million in deferred revenues and an increase of $ 3.5 million in warranty obligations . the increases in accounts payable , deferred revenues and warranty obligations were primarily attributable to higher sales volume and inventory purchases . accrued and other liabilities increased primarily due to amounts due under our annual incentive compensation plan . uses of cash included a $ 13.7 million increase in accounts receivable , a $ 5.0 million increase in inventory and a $ 2.5 million increase 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 from operating activities for 2014 , net cash provided by operating activities was $ 24.2 million . our net loss of $ 8.1 million was more than offset by non-cash charges and net changes in operating assets and liabilities . non-cash charges included $ 9.7 million of stock-based compensation , $ 8.3 million of depreciation and amortization and $ 1.4 million of other non-cash charges . in addition , cash provided by net changes in operating assets and liabilities was $ 12.8 million . sources of cash totaled $ 34.1 million resulting from an increase of $ 25.3 million in accounts payable , accrued and other liabilities , an increase of $ 5.3 million in deferred revenues and an increase of $ 3.5 million in warranty obligations . the increases in accounts payable , deferred revenues and warranty obligations were primarily attributable to higher sales volume and inventory purchases . accrued and other liabilities increased primarily due to amounts due under our annual incentive compensation plan . uses of cash included a $ 13.7 million increase in accounts receivable , a $ 5.0 million increase in inventory and a $ 2.5 million increase in prepaid expenses and other assets . ``` Suspicious Activity Report : our revenue growth is dependent on our ability to develop and introduce new products to meet the changing technology and performance requirements of our customers , the diversification and expansion of our revenue base , and our ability to market our products in a manner that increases awareness for microinverter technology and differentiates us in the marketplace . 30 cost of revenues and gross profit cost of revenues is comprised primarily of product costs , warranty , manufacturing personnel and logistics costs , freight costs , depreciation and amortization of test equipment and hosting services costs . our product costs are impacted by technological innovations , such as advances in semiconductor integration and new product introductions , economies of scale resulting in lower component costs , and improvements in production processes and automation . certain costs , primarily personnel and depreciation and amortization of test equipment , are not directly affected by sales volume . we outsource our manufacturing to third-party contract manufacturers and generally negotiate product pricing with them on a quarterly basis . we believe our contract manufacturing partners have sufficient production capacity to meet the growing demand for our products for the foreseeable future . however , shortages in the supply of certain key raw materials could adversely affect our ability to meet customer demand for our products . in addition , third parties , including one of our contract manufacturers , serve as our logistics providers by warehousing and delivering our products in north america , europe , australia and new zealand . gross profit may vary from quarter to quarter and is primarily affected by our average selling prices , product cost , product mix , warranty costs ( including changes in estimates ) and sales volume fluctuations resulting from seasonality . operating expenses operating expenses consist of research and development , sales and marketing and general and administrative expenses . personnel-related costs are the most significant component of each of these expense categories and include salaries , benefits , payroll taxes , recruiting costs , sales commissions , incentive compensation and stock-based compensation . we expect personnel costs to continue to increase as we hire new employees to support our anticipated growth . we expect that each of the categories of operating expenses discussed below will increase in absolute dollars , but will decline as a percentage of total revenues in the long term . research and development expense includes personnel-related expenses such as salaries , incentive compensation , stock-based compensation and employee benefits . research and development employees are engaged in the design and development of power electronics , semiconductors , powerline communications and networking and software functionality . research and development expense also includes third-party design and development costs , testing and evaluation costs , depreciation expense and other indirect costs . we devote substantial resources in ongoing research and development programs that focus on enhancements to and cost efficiencies in our existing products and timely development of new products that utilize technological innovation to drive down product costs , improve functionality , and enhance reliability . we intend to continue to invest substantial resources in our research and development efforts because we believe they are critical to maintaining our competitive position . sales and marketing expense consists primarily of personnel-related expenses such as salaries , commissions , incentive compensation , stock-based compensation , employee benefits and travel . it also includes trade shows , marketing , customer support and other indirect costs . we expect to continue to make the necessary investments to enable us to execute our strategy to increase our market penetration geographically and enter into new markets by expanding our customer base of distributors , large installers , oems and strategic partners . historically , substantially all of our sales have been in the united states and canada . we began selling into france , italy and the benelux region in the fourth quarter of 2011 and commenced volume shipments to such regions in the second quarter of 2012. in addition , we opened a sales office in the united kingdom during the second quarter of 2012 and began shipping products to the united kingdom in the third quarter of 2012. in late 2013 , we expanded into the australia and new zealand markets by opening a sales office in australia . we expect to continue to expand the geographic reach of our product offerings and explore new sales channels in addressable markets in the future . general and administrative expense consists primarily of salaries , incentive compensation , stock-based compensation and employee benefits for personnel related to our executive , finance , human resources , information technology and legal organizations . general and administrative expense also includes facilities costs and fees for professional services . professional services consist primarily of outside legal , accounting and information technology consulting costs . other income ( expense ) , net other income ( expense ) , net includes interest expense on amounts outstanding under our term loans , convertible note facility and non-cash interest expense related to the amortization of debt discounts and deferred financing costs . other income ( expense ) , net also includes gains or losses upon conversion of non-u.s. dollar transactions into u.s. dollars and from foreign currency forward contracts . 31 provision for income taxes we are subject to income taxes in the countries where we sell our products . historically , we have primarily been subject to taxation in the united states because we have sold the vast majority of our products to customers in the united states . as we have expanded the sale of products to customers outside the united states , we have become subject to taxation based on the foreign statutory rates in the countries where these sales took place . as sales in foreign jurisdictions increase in the future , our effective tax rate may fluctuate accordingly . story_separator_special_tag revenues from sales of microinverters and related accessories , and communication gateways are recognized when : ( i ) persuasive evidence of an arrangement exists ; ( ii ) delivery of the products has occurred in accordance with the terms of the sales agreement and title and risk of loss have passed to the customer ; ( iii ) the sale price is fixed or determinable ; and ( iv ) collection is reasonably assured . provisions for rebates , sales incentives , and discounts to customers are accounted for as reductions in revenue in the same period the related sales are recorded . sales of an envoy communications gateway device include the enlighten web-based monitoring service . the allocation of revenue between the two deliverables is based on our best estimate of selling price determined by considering multiple factors including , internal costs , gross margin and historical pricing practices . after allocating the overall consideration from such sale to each deliverable using a best estimate of the selling price , ( i ) revenue from the sale of envoy devices is recognized upon shipment , assuming all other revenue recognition criteria have been met and ( ii ) revenue from the web-based monitoring service is recognized ratably over the estimated economic life of the related envoy devices of 10 years . inventory inventory is valued at the lower of cost or market . we determine cost on a first-in first-out basis . certain factors could affect the realizable value of its inventory , including customer demand and market conditions . management assesses the valuation on a quarterly basis and writes down the value for any excess and obsolete inventory based upon expected demand , anticipated sales price , effect of new product introductions , product obsolescence , customer concentrations , product merchantability and other factors . inventory write-downs are equal to the difference between the cost of inventories and their estimated net realizable market value . in 2014 and 2013 , write-downs of inventories were insignificant . in 2012 , we recorded write-downs of inventories of $ 0.8 million . business combinations we allocate the fair value of purchase consideration to the tangible and intangible assets acquired , and liabilities assumed based on their estimated fair values at the acquisition date . we use judgment to estimate the fair value of contingent consideration ( a component of the purchase consideration ) , identify all the tangible and intangible assets acquired , estimate the fair value of these assets , estimate the useful life of the assets , and assess the appropriate method for recognizing depreciation or amortization expense over the asset 's useful life . we believe that the accounting estimates related to purchase price allocations are critical accounting estimates because the assumptions impact the amounts and classifications of assets and liabilities presented in our consolidated balance sheets , the future amount of amortization and depreciation expense that will be recorded in our consolidated statements of operations , and the amount of goodwill which will be subject to impairment testing performed in subsequent periods . critical estimates in valuing contingent consideration include but are not limited to probabilities applied to multiple payout scenarios and a risk-adjusted discount rate . critical estimates in valuing intangible assets ( i.e . customer relationships ) include but are not limited to future expected cash flows from customer relationships and customer attrition rates . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable and , as a result , actual results may differ from estimates . 38 warranty obligations microinverters sold through december 31 , 2013 our warranty accrual provides for the replacement of microinverter units that fail during the product 's warranty term ( 15 years for first and second generation microinverters and up to 25 years for third and fourth generation microinverters ) . on a quarterly basis , we employ a consistent , systematic and rational methodology to assess the adequacy of its warranty liability . this assessment includes updating all key estimates and assumptions for each generation of product , based on historical results , trends and the most current data available as of the filing date . the key estimates and assumptions used in the warranty liability are thoroughly reviewed by management on a quarterly basis . the key estimates used by us to estimate its warranty liability are : ( 1 ) the number of units expected to fail over time ( i.e . failure rate ) ; ( 2 ) the number of failed units expected to result in warranty claims over time ( i.e . claim rate ) ; and ( 3 ) the per unit cost of replacement units , including outbound shipping and limited labor costs , expected to be incurred to replace failed units over time ( i.e . replacement cost ) . estimated failure rates— our quality and reliability department has primary responsibility to determine the estimated failure rates for each generation of microinverter . to establish initial failure rate estimates for each generation of microinverter , our quality engineers use a combination of industry standard mtbf ( mean time between failure ) estimates for individual components contained in its microinverters , third party data collected on similar equipment deployed in outdoor environments similar to those in which our microinverters are installed , and rigorous long term reliability and accelerated life cycle testing which simulates the service life of the microinverter in a short period of time . as units are deployed into operating environments , we continue to monitor product performance via our enlighten monitoring platform . it typically takes three to nine months between the date of sale and date of end-user installation . consequently , our ability to monitor actual failures of units sold similarly lags by three to nine months . when a microinverter fails and is returned , we performs diagnostic root cause

cornwall , ontario in february 2013 , we announced the closure of our cornwall , ontario facility due to an end-of-life client program . operations ceased during the first quarter of 2013 , which was earlier than initially expected . laramie , wyoming in the fourth quarter 2010 , we classified our laramie facility as an asset held for sale . due to the duration of the held for sale classification , we reclassified the asset back to assets in use during the second quarter of 2013 , resulting in a depreciation charge of $ 0.1 million . enid , oklahoma we reopened our enid facility in the third quarter of 2013 ; therefore , we reclassified the asset from assets held for sale to assets in use , resulting in a depreciation charge of $ 0.3 million . angeles city , philippines we began operating in our new location in angeles city , philippines in september 2013. colorado springs , colorado our healthcare division began operations in july 2013 in colorado springs , colorado . lutz , florida we acquired ideal dialogue company , llc in march 2013. myrtle beach , south carolina we are developing a new customer support center in myrtle beach , south carolina . 16 subsequent events in february 2014 , we announced the closure of our jonesboro , arkansas site . operations will cease in the second quarter of 2014 when the business transitions to another facility . the lease will terminate in june 2015. in february 2014 , we signed a lease for a new contact center in tegucigalpa , honduras . 17 results of operations — years ended december 31 , 2013 and december 31 , 2012 the following table summarizes our revenues and gross profit for the periods indicated , by reporting segment : replace_table_token_3_th revenue revenue increased by $ 33.2 million , or 16.7 % , from $ 198.1 million in 2012 to $ 231.3 million in 2013. the increase was due to performance within the domestic and latin america segments . revenue in the domestic segment increased by 21.1 % , or $ 21.1 million , due to $ 33.1 million of new business and growth from existing programs , partially offset by a $ 7.7 million reduction from closed facilities , and a $ 4.3 million reduction for other program reductions . asia pacific revenue increased 1.8 % , or $ 1.4 million , from $ 79.7 million in 2012 to $ 81.1 million in 2013 due primarily to the ramp up of new business of $ 13.4 million , partially offset by $ 10.7 million from lower call volumes and lost programs . revenue in our latin america segment increased $ 10.7 million , or 57.4 % , from $ 18.6 million in 2012 to $ 29.2 million in 2013 primarily due to growth from existing clients of $ 12.3 million . cost of services and gross profit included in gross profit are one-time charges of $ 1.5 million related to the it transformation costs and $ 0.4 million for depreciation charges for the enid and laramie reclassifications from held for sale . cost of services increased by $ 31.8 million , or 18.2 % , from $ 175.1 million in 2012 to $ 206.9 million in 2013 , primarily to support the 16.7 % revenue growth . gross profit as a percentage of revenue decreased from 11.6 % in 2012 to 10.5 % in 2013 due to it transformation costs , segment mix , and labor efficiency performance issues in asia pacific that more than offset improvements in the domestic and latin america segments . domestic cost of services increased by approximately $ 15.2 million due to the new business and growth mentioned above . domestic gross profit as a percentage of revenue increased to 11.0 % in 2013 from 7.4 % in 2012 due to labor efficiency and capacity utilization improvements . cost of services in the asia pacific segment increased by approximately $ 7.9 million , or 12.5 % . asia pacific gross profit as a percentage of revenue decreased from 20.7 % in 2012 to 12.3 % in 2013. the unfavorable variances were due to program mix changes , new site start up and ramp related costs and inefficiencies across two key programs . cost of services in latin america increased by approximately $ 8.7 million , or 44.9 % . the increase was primarily due to the continued ramp of our honduras facility and investment in growth in costa rica . latin america gross profit as a percentage of revenue increased from ( 4.7 % ) to 3.6 % due to the higher headcount and asset utilization . 18 selling , general and administrative expenses selling , general and administrative expenses decreased from $ 29.6 million in 2012 to $ 28.8 million in 2013 and decreased significantly as a percentage of revenue in 2013 compared with 2012 from 15.0 % to 12.5 % , respectively . the decrease as a percentage of revenue was the result of revenue growth and continued focus on cost control . impairment losses and restructuring charges , net during 2013 , we recognized $ 0.5 million in impairment losses in our latin america segment associated with the furniture , fixtures and leasehold improvements at our site in costa rica after an impairment analysis indicated estimated future cash flows were insufficient to support the carrying values . we also reversed $ 0.4 million of restructuring charges during this period due to expenses reimbursable under the sublease at our victoria , texas facility . story_separator_special_tag significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows . the cash flows consist of the future lease payment obligations required under the lease agreement . in the future , if we sublease for periods that differ from our assumption or if our estimate of a buy-out differs from our assumption , we may be required to record a gain or loss . future cash flows also include estimated property taxes through the remainder of the lease term , which are valued based upon historical tax payments . given that the restructuring charges were valued using our internal estimates using a discounted cash flow model , we have classified the accrued restructuring costs as level 3 in the fair value hierarchy . derivative instruments and hedging activities we record derivative instruments as either an asset or liability measured at its fair value , with changes in the fair value of qualifying hedges recorded in other comprehensive income . as of december 31 , 2013 , we recorded a gross derivative liability related to our unrealized losses of approximately $ 2.2 million . changes in a derivative 's fair value are recognized currently in earnings unless specific hedge accounting criteria are met . special accounting for qualifying hedges allows a derivative 's gains and losses to offset the related results of the hedged item and requires that we must formally document , designate and assess the effectiveness of transactions that receive hedge accounting treatment . 21 we are generally able to apply cash flow hedge accounting , which associates the results of the hedges with forecasted future expenses . the current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted expenses are incurred , typically within one year . during 2013 and 2012 , our cash flow hedges were highly effective and hedge ineffectiveness was not material . while we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting , if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur , the changes in the fair value of the derivatives used as hedges will be reflected in earnings . income taxes income taxes are accounted for under the asset and liability method . deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes . we are subject to foreign income taxes on our foreign operations . we are required to estimate our income taxes in each jurisdiction in which we operate . this process involves estimating our actual current tax exposure , together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes . the tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted . we record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction . we consider all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable . management considers the scheduled reversal of deferred tax liabilities ( including the impact of available carryback and carryforward periods ) , and projected taxable income in assessing the realizability of deferred tax assets . in making such judgments , significant weight is given to evidence that can be objectively verified . based on all available evidence , in particular our historical cumulative losses , recent operating losses and a u.s. pre-tax loss for the fiscal year ending december 31 , 2013 , we recorded a valuation allowance against our u.s. net deferred tax assets . the valuation allowance for deferred tax assets as of december 31 , 2013 and 2012 was $ 20.0 million and $ 16.6 million , respectively . in order to fully realize the u.s. deferred tax assets , we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code . as of december 31 , 2013 , we had gross federal net operating loss carry forwards of approximately $ 34,560 expiring beginning in 2030 and gross state net operating loss carry forwards of approximately $ 60,435 expiring beginning in 2014. we record tax benefits when they are more likely than not to be realized . recently issued accounting standards in july 2013 , the fasb issued asu 2013-11 , presentation of unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists , an amendment to fasb accounting standards codification ( “ asc ” ) topic 740 , income taxes ( “ fasb asc topic 740 ” ) . this update clarifies 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 if such settlement

liquidity and capital resources our primary sources of liquidity are generally cash flows generated by operating activities and from available borrowings under our revolving credit facility . we have historically utilized these resources to finance our operations and make capital expenditures associated with capacity expansion , upgrades of information technologies and service offerings , and business acquisitions . due to the timing of our collections of large billings with our major customers , we have historically needed to draw on our line of credit periodically for ongoing working capital needs . based on current expectations , we believe our cash from operations and capital resources will be sufficient to operate our business for at least the next 12 months . as of december 31 , 2013 , working capital totaled $ 31.6 million and our current ratio was 2.11:1 , compared to working capital of $ 36.4 million and a current ratio of 2.50:1 at december 31 , 2012 . 19 net cash flows provided by operating activities in 2013 was $ 6.2 million compared to net cash provided by operating activities of $ 2.9 million for 2012. the $ 3.3 million increase in net cash flows from operating activities was due to a $ 1.8 million decrease in non-cash items such as depreciation and amortization , impairment charges , losses on asset disposals and stock-based compensation , offset by a $ 1.0 million net decrease in cash flows from assets and liabilities and a $ 4.1 million decrease in net loss . net cash used in investing activities in 2013 of $ 5.6 million primarily consisted of $ 8.8 million of capital expenditures and cash paid for acquisitions of $ 2.1 million , partially offset by the proceeds from the sale of assets of $ 3.4 million and proceeds from a sale leaseback transaction of $ 1.3 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary sources of liquidity are generally cash flows generated by operating activities and from available borrowings under our revolving credit facility . we have historically utilized these resources to finance our operations and make capital expenditures associated with capacity expansion , upgrades of information technologies and service offerings , and business acquisitions . due to the timing of our collections of large billings with our major customers , we have historically needed to draw on our line of credit periodically for ongoing working capital needs . based on current expectations , we believe our cash from operations and capital resources will be sufficient to operate our business for at least the next 12 months . as of december 31 , 2013 , working capital totaled $ 31.6 million and our current ratio was 2.11:1 , compared to working capital of $ 36.4 million and a current ratio of 2.50:1 at december 31 , 2012 . 19 net cash flows provided by operating activities in 2013 was $ 6.2 million compared to net cash provided by operating activities of $ 2.9 million for 2012. the $ 3.3 million increase in net cash flows from operating activities was due to a $ 1.8 million decrease in non-cash items such as depreciation and amortization , impairment charges , losses on asset disposals and stock-based compensation , offset by a $ 1.0 million net decrease in cash flows from assets and liabilities and a $ 4.1 million decrease in net loss . net cash used in investing activities in 2013 of $ 5.6 million primarily consisted of $ 8.8 million of capital expenditures and cash paid for acquisitions of $ 2.1 million , partially offset by the proceeds from the sale of assets of $ 3.4 million and proceeds from a sale leaseback transaction of $ 1.3 million . ``` Suspicious Activity Report : cornwall , ontario in february 2013 , we announced the closure of our cornwall , ontario facility due to an end-of-life client program . operations ceased during the first quarter of 2013 , which was earlier than initially expected . laramie , wyoming in the fourth quarter 2010 , we classified our laramie facility as an asset held for sale . due to the duration of the held for sale classification , we reclassified the asset back to assets in use during the second quarter of 2013 , resulting in a depreciation charge of $ 0.1 million . enid , oklahoma we reopened our enid facility in the third quarter of 2013 ; therefore , we reclassified the asset from assets held for sale to assets in use , resulting in a depreciation charge of $ 0.3 million . angeles city , philippines we began operating in our new location in angeles city , philippines in september 2013. colorado springs , colorado our healthcare division began operations in july 2013 in colorado springs , colorado . lutz , florida we acquired ideal dialogue company , llc in march 2013. myrtle beach , south carolina we are developing a new customer support center in myrtle beach , south carolina . 16 subsequent events in february 2014 , we announced the closure of our jonesboro , arkansas site . operations will cease in the second quarter of 2014 when the business transitions to another facility . the lease will terminate in june 2015. in february 2014 , we signed a lease for a new contact center in tegucigalpa , honduras . 17 results of operations — years ended december 31 , 2013 and december 31 , 2012 the following table summarizes our revenues and gross profit for the periods indicated , by reporting segment : replace_table_token_3_th revenue revenue increased by $ 33.2 million , or 16.7 % , from $ 198.1 million in 2012 to $ 231.3 million in 2013. the increase was due to performance within the domestic and latin america segments . revenue in the domestic segment increased by 21.1 % , or $ 21.1 million , due to $ 33.1 million of new business and growth from existing programs , partially offset by a $ 7.7 million reduction from closed facilities , and a $ 4.3 million reduction for other program reductions . asia pacific revenue increased 1.8 % , or $ 1.4 million , from $ 79.7 million in 2012 to $ 81.1 million in 2013 due primarily to the ramp up of new business of $ 13.4 million , partially offset by $ 10.7 million from lower call volumes and lost programs . revenue in our latin america segment increased $ 10.7 million , or 57.4 % , from $ 18.6 million in 2012 to $ 29.2 million in 2013 primarily due to growth from existing clients of $ 12.3 million . cost of services and gross profit included in gross profit are one-time charges of $ 1.5 million related to the it transformation costs and $ 0.4 million for depreciation charges for the enid and laramie reclassifications from held for sale . cost of services increased by $ 31.8 million , or 18.2 % , from $ 175.1 million in 2012 to $ 206.9 million in 2013 , primarily to support the 16.7 % revenue growth . gross profit as a percentage of revenue decreased from 11.6 % in 2012 to 10.5 % in 2013 due to it transformation costs , segment mix , and labor efficiency performance issues in asia pacific that more than offset improvements in the domestic and latin america segments . domestic cost of services increased by approximately $ 15.2 million due to the new business and growth mentioned above . domestic gross profit as a percentage of revenue increased to 11.0 % in 2013 from 7.4 % in 2012 due to labor efficiency and capacity utilization improvements . cost of services in the asia pacific segment increased by approximately $ 7.9 million , or 12.5 % . asia pacific gross profit as a percentage of revenue decreased from 20.7 % in 2012 to 12.3 % in 2013. the unfavorable variances were due to program mix changes , new site start up and ramp related costs and inefficiencies across two key programs . cost of services in latin america increased by approximately $ 8.7 million , or 44.9 % . the increase was primarily due to the continued ramp of our honduras facility and investment in growth in costa rica . latin america gross profit as a percentage of revenue increased from ( 4.7 % ) to 3.6 % due to the higher headcount and asset utilization . 18 selling , general and administrative expenses selling , general and administrative expenses decreased from $ 29.6 million in 2012 to $ 28.8 million in 2013 and decreased significantly as a percentage of revenue in 2013 compared with 2012 from 15.0 % to 12.5 % , respectively . the decrease as a percentage of revenue was the result of revenue growth and continued focus on cost control . impairment losses and restructuring charges , net during 2013 , we recognized $ 0.5 million in impairment losses in our latin america segment associated with the furniture , fixtures and leasehold improvements at our site in costa rica after an impairment analysis indicated estimated future cash flows were insufficient to support the carrying values . we also reversed $ 0.4 million of restructuring charges during this period due to expenses reimbursable under the sublease at our victoria , texas facility . story_separator_special_tag significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows . the cash flows consist of the future lease payment obligations required under the lease agreement . in the future , if we sublease for periods that differ from our assumption or if our estimate of a buy-out differs from our assumption , we may be required to record a gain or loss . future cash flows also include estimated property taxes through the remainder of the lease term , which are valued based upon historical tax payments . given that the restructuring charges were valued using our internal estimates using a discounted cash flow model , we have classified the accrued restructuring costs as level 3 in the fair value hierarchy . derivative instruments and hedging activities we record derivative instruments as either an asset or liability measured at its fair value , with changes in the fair value of qualifying hedges recorded in other comprehensive income . as of december 31 , 2013 , we recorded a gross derivative liability related to our unrealized losses of approximately $ 2.2 million . changes in a derivative 's fair value are recognized currently in earnings unless specific hedge accounting criteria are met . special accounting for qualifying hedges allows a derivative 's gains and losses to offset the related results of the hedged item and requires that we must formally document , designate and assess the effectiveness of transactions that receive hedge accounting treatment . 21 we are generally able to apply cash flow hedge accounting , which associates the results of the hedges with forecasted future expenses . the current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted expenses are incurred , typically within one year . during 2013 and 2012 , our cash flow hedges were highly effective and hedge ineffectiveness was not material . while we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting , if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur , the changes in the fair value of the derivatives used as hedges will be reflected in earnings . income taxes income taxes are accounted for under the asset and liability method . deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes . we are subject to foreign income taxes on our foreign operations . we are required to estimate our income taxes in each jurisdiction in which we operate . this process involves estimating our actual current tax exposure , together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes . the tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted . we record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction . we consider all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable . management considers the scheduled reversal of deferred tax liabilities ( including the impact of available carryback and carryforward periods ) , and projected taxable income in assessing the realizability of deferred tax assets . in making such judgments , significant weight is given to evidence that can be objectively verified . based on all available evidence , in particular our historical cumulative losses , recent operating losses and a u.s. pre-tax loss for the fiscal year ending december 31 , 2013 , we recorded a valuation allowance against our u.s. net deferred tax assets . the valuation allowance for deferred tax assets as of december 31 , 2013 and 2012 was $ 20.0 million and $ 16.6 million , respectively . in order to fully realize the u.s. deferred tax assets , we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code . as of december 31 , 2013 , we had gross federal net operating loss carry forwards of approximately $ 34,560 expiring beginning in 2030 and gross state net operating loss carry forwards of approximately $ 60,435 expiring beginning in 2014. we record tax benefits when they are more likely than not to be realized . recently issued accounting standards in july 2013 , the fasb issued asu 2013-11 , presentation of unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists , an amendment to fasb accounting standards codification ( “ asc ” ) topic 740 , income taxes ( “ fasb asc topic 740 ” ) . this update clarifies 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 if such settlement

55 to date , the primary market for our products has been the united states , where we sell our products through a combination of direct sales representatives employed by us and distributor sales representatives employed by our exclusive independent distributors , who distribute our products on our behalf for a commission that is generally based on a percentage of sales . we believe there is significant opportunity to strengthen our position in the u.s. market by increasing the size of our u.s. sales force and we intend to add additional direct and distributor sales representatives in the future . during the year ended december 31 , 2017 , our international sales accounted for approximately 17 % of our total sales . the international sales total includes a full year of results following the september 1 , 2016 acquisition of the international operations and distribution channel of alphatec holdings , inc. ( “ alphatec international ” ) . we have sold our products in 54 countries outside the united states through a combination of direct sales representatives employed by us and international distributors . we believe there are significant opportunities for us to increase our presence in both existing and new international markets through the continued expansion of our direct and distributor sales forces and the commercialization of additional products . components of our results of operations we manage our business globally within one operating segment , which is consistent with how our management reviews our business , makes investment and resource allocation decisions and assesses operating performance . sales today , we sell primarily implants and related disposables , primarily to hospitals , for use by spine surgeons to treat spine disorders . we generally consign our surgical sets , which contain our implants , disposables , surgical instruments and cases to our sales representatives , and the sets are maintained with the sales representatives or at our hospital customers that purchase the implants and related disposables used in the surgeries . we recognize revenue when the consigned implants and related disposables have been implanted or used , or for sets that are sold directly and not consigned , when title to the goods and risk of loss are transferred to customers with no remaining performance obligations which affect the customer 's final acceptance of the sale . we completed our first sale of excelsiusgps in the fourth quarter of 2017 . we recognize revenue when the equipment is installed and accepted by the customer , which is consistent with when title to the good and risk of loss is transferred to the customer . we expect to expand our u.s. and international sales forces , which will provide us with significant opportunity to continue to increase our penetration in existing markets and to enter new international markets . we also expect to increase sales by commercializing new products , but expect the increase of sales from new products to be partially offset by decreased sales of earlier-generation products . 56 cost of goods sold while we have increased our in-house spinal implant product manufacturing capacity , we also have products manufactured by third-party suppliers . substantially all of our suppliers manufacture our products in the united states . our c ost of goods sold consists primarily of costs from our in-house manufacturing , costs of products purchased from third-party suppliers , excess and obsolete inventory charges , depreciation of surgical instruments and cases , royalties , shipping , inspection and related costs incurred in making our products available for sale or use . beginning in january 2013 , our cost of goods sold increased as a result of a medical device excise tax ( “ mdet ” ) of up to 2.3 % on the sale of certain medical devices in the united states . on december 18 , 2015 , the mdet was suspended for two years effective january 1 , 2016. in january 2018 , congress further extended the moratorium on the medical device excise tax through january 1 , 2020. research and development expenses our research and development expenses primarily consist of engineering , product development , clinical and regulatory expenses , consulting services , outside prototyping services , internal and external research activities , materials , depreciation , and other costs associated with development of our products . research and development expenses also include related personnel and consultants ' compensation and stock-based compensation expense . we expense research and development costs as they are incurred . we expect to incur additional research and development costs as we continue to develop new products . these costs will increase in absolute terms as we continue to expand our product pipeline and add personnel . selling , general and administrative expenses selling , general and administrative expenses primarily consist of salaries , benefits and other related costs , including stock-based compensation for personnel employed in sales , marketing , finance , legal , compliance , administrative , information technology , medical education and training , quality and human resource departments . our selling , general and administrative expenses also include commissions , generally based on a percentage of sales , to direct sales representatives and distributors . we expect our selling , general and administrative expenses will increase in absolute terms with the continued expansion of our sales force and commercialization of our current and pipeline products . we plan to hire more personnel to support the growth of our business . provision for litigation we record a provision for litigation settlements when a loss is known or considered probable and the amount can be reasonably estimated and in the case of a favorable settlement , income when realized . amortization of intangibles we amortize finite lived intangible assets over the period of estimated benefit using the straight-line method and estimated lives ranging from one to seventeen years . story_separator_special_tag for additional information regarding the alphatec international acquisition , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 2. acquisitions ” and for additional information regarding constant currency , please refer to “ non-gaap financial measures ” below . 62 cost of goods sold replace_table_token_7_th the increase in cost of goods sold was primarily due to increases from higher volumes , product mix and inventory write offs . partially offsetting these increases was a cost benefit of $ 4.0 million from in-house manufacturing . research and development expenses replace_table_token_8_th the decrease in research and development expenses was due primarily to $ 4.0 million of one-time licensing cost incurred in 2016 , which was partially offset by increased investment into inr technology and orthopedic trauma for additional headcount to further research activities and development of new innovative products . selling , general and administrative expenses replace_table_token_9_th the increase in selling , general and administrative expenses was due primarily to increases of $ 15.8 million of costs to support alphatec international sales , $ 9.5 million of costs to build the inr technology and orthopedic trauma sales forces , and a $ 10.1 million increase in the u.s. sales force expenses . in addition , there were cost increases of $ 6.5 million related to general and administrative compensation costs . provision for litigation replace_table_token_10_th the current year provision for litigation , which is relatively consistent with the prior year provision , includes legal settlement and verdict costs . 63 for additional information regarding litigation , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 15. commitments and contingencies . ” amortization of intangibles replace_table_token_11_th the increase in the amortization of intangibles is primarily due to intangible assets acquired in connection with the alphatec international acquisition . acquisition related costs replace_table_token_12_th acquisition related costs remained consistent for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016. the current year balance primarily consists of costs associated with the kb medical acquisition . other income , net replace_table_token_13_th the increase in other income , net is due primarily to increases in interest income from increased average investment balances and the note receivable with alphatec spine inc. , coupled with increases in foreign exchange transaction gains . for additional information regarding the note receivable with alphatec spine inc. , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 3. note receivable . ” 64 income tax provision replace_table_token_14_th our tax provision and effective tax rate for the year ended december 31 , 2017 was higher than the prior year due primarily to the impact of the u.s. tax cuts and jobs act ( “ tax reform act ” ) , as further described in “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 13. income taxes . ” year ended december 31 , 2016 compared to the year ended december 31 , 2015 sales the following table sets forth , for the periods indicated , our sales by product category and geography expressed as dollar amounts and the changes in sales between the specified periods expressed in dollar amounts and as percentages : replace_table_token_15_th product launches continue to be a driving force in our sales growth , particularly from products launched during the last three years . the growth in disruptive technology of $ 19.7 million was due primarily to sales of regenerative biologics , expandable interbody and minimally invasive products launched during the past three years , including sales from ttot since the acquisition in late 2014. innovative fusion sales decreased by $ 0.5 million due to sales declines of pedicle screw systems , which were partially offset by increases from alphatec international sales . replace_table_token_16_th in the united states , the increase in sales of $ 2.0 million was due primarily to expansion into new territories and increased penetration in existing territories . the region experienced strong sales in disruptive technology products , led by sales of expandable interbody products and regenerative biologics , which were partially offset by declines in innovative fusion products , primarily pedicle screw systems . 65 internationally , the increase in sales of $ 17.2 million was primarily due to incremental sales from the alphatec international acquisition . on a constant currency basis , our international sales grew $ 18.8 million , or by 40.4 % , due to expansion into new international territories . our worldwide sales increased 3.8 % on a constant currency basis . for additional information regarding the alphatec international acquisition , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 2. acquisitions ” and for additional information regarding constant currency , please refer to “ non-gaap financial measures ” below . cost of goods sold replace_table_token_17_th the increase in cost of goods sold was primarily due to increases from higher volumes , product mix , inventory write offs and increases in depreciation and other operational costs . included in these increases was a prior period adjustment of $ 1.8 million . partially offsetting these increases was $ 9.0 million in savings related to the two-year moratorium on the medical device excise tax ( “ mdet ” ) , which began january 1 , 2016. savings of $ 5.0 million were realized in 2016 from the impact of lower manufacturing costs from branch medical group ( “ bmg ” ) as well as a $ 3.4 million decrease in freight costs . for additional information regarding the prior period adjustment , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 1.

cash provided by operating activities the decrease in net cash provided by operating activities for the year ended december 31 , 2017 was due primarily to the timing of collection and billing of trade accounts receivable , which was partially offset by an increase in depreciation and amortization expense . the increase in net cash provided by operating activities for the year ended december 31 , 2016 was due primarily to the recovery of the restricted cash related to the depuy synthes settlement , coupled with lower working capital and lower year-over-year income tax payments . 72 cash used in investing activities the increase in net cash used in investing activities for the year ended december 31 , 2017 was due primarily to higher investment in marketable securities and increased purchases of property and equipment , which was partially offset by the decrease in cash used for the acquisition of businesses . the decrease in net cash used in investing activities for the year ended december 31 , 2016 was due primarily to lower investment in marketable securities and decreased purchases of property and equipment , which was partially offset by the issuance of a note receivable , and an increase in cash used for the acquisition of businesses . cash provided by financing activities the increase in cash provided by financing activities for the year ended december 31 , 2017 was due primarily to higher proceeds from exercises of stock options , which was partially offset by payments for business acquisition liabilities . the decrease in cash provided by financing activities for the year ended december 31 , 2016 was due primarily to higher payments of business acquisition liabilities . liquidity and capital resources the following table highlights certain information related to our liquidity and capital resources : replace_table_token_32_th during the year ended december 31 , 2017 , our total cash , cash equivalents and marketable securities increased $ 79.1 million , primarily as a result of our cash provided by operating activities and increased investment in marketable 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. ```cash provided by operating activities the decrease in net cash provided by operating activities for the year ended december 31 , 2017 was due primarily to the timing of collection and billing of trade accounts receivable , which was partially offset by an increase in depreciation and amortization expense . the increase in net cash provided by operating activities for the year ended december 31 , 2016 was due primarily to the recovery of the restricted cash related to the depuy synthes settlement , coupled with lower working capital and lower year-over-year income tax payments . 72 cash used in investing activities the increase in net cash used in investing activities for the year ended december 31 , 2017 was due primarily to higher investment in marketable securities and increased purchases of property and equipment , which was partially offset by the decrease in cash used for the acquisition of businesses . the decrease in net cash used in investing activities for the year ended december 31 , 2016 was due primarily to lower investment in marketable securities and decreased purchases of property and equipment , which was partially offset by the issuance of a note receivable , and an increase in cash used for the acquisition of businesses . cash provided by financing activities the increase in cash provided by financing activities for the year ended december 31 , 2017 was due primarily to higher proceeds from exercises of stock options , which was partially offset by payments for business acquisition liabilities . the decrease in cash provided by financing activities for the year ended december 31 , 2016 was due primarily to higher payments of business acquisition liabilities . liquidity and capital resources the following table highlights certain information related to our liquidity and capital resources : replace_table_token_32_th during the year ended december 31 , 2017 , our total cash , cash equivalents and marketable securities increased $ 79.1 million , primarily as a result of our cash provided by operating activities and increased investment in marketable securities . ``` Suspicious Activity Report : 55 to date , the primary market for our products has been the united states , where we sell our products through a combination of direct sales representatives employed by us and distributor sales representatives employed by our exclusive independent distributors , who distribute our products on our behalf for a commission that is generally based on a percentage of sales . we believe there is significant opportunity to strengthen our position in the u.s. market by increasing the size of our u.s. sales force and we intend to add additional direct and distributor sales representatives in the future . during the year ended december 31 , 2017 , our international sales accounted for approximately 17 % of our total sales . the international sales total includes a full year of results following the september 1 , 2016 acquisition of the international operations and distribution channel of alphatec holdings , inc. ( “ alphatec international ” ) . we have sold our products in 54 countries outside the united states through a combination of direct sales representatives employed by us and international distributors . we believe there are significant opportunities for us to increase our presence in both existing and new international markets through the continued expansion of our direct and distributor sales forces and the commercialization of additional products . components of our results of operations we manage our business globally within one operating segment , which is consistent with how our management reviews our business , makes investment and resource allocation decisions and assesses operating performance . sales today , we sell primarily implants and related disposables , primarily to hospitals , for use by spine surgeons to treat spine disorders . we generally consign our surgical sets , which contain our implants , disposables , surgical instruments and cases to our sales representatives , and the sets are maintained with the sales representatives or at our hospital customers that purchase the implants and related disposables used in the surgeries . we recognize revenue when the consigned implants and related disposables have been implanted or used , or for sets that are sold directly and not consigned , when title to the goods and risk of loss are transferred to customers with no remaining performance obligations which affect the customer 's final acceptance of the sale . we completed our first sale of excelsiusgps in the fourth quarter of 2017 . we recognize revenue when the equipment is installed and accepted by the customer , which is consistent with when title to the good and risk of loss is transferred to the customer . we expect to expand our u.s. and international sales forces , which will provide us with significant opportunity to continue to increase our penetration in existing markets and to enter new international markets . we also expect to increase sales by commercializing new products , but expect the increase of sales from new products to be partially offset by decreased sales of earlier-generation products . 56 cost of goods sold while we have increased our in-house spinal implant product manufacturing capacity , we also have products manufactured by third-party suppliers . substantially all of our suppliers manufacture our products in the united states . our c ost of goods sold consists primarily of costs from our in-house manufacturing , costs of products purchased from third-party suppliers , excess and obsolete inventory charges , depreciation of surgical instruments and cases , royalties , shipping , inspection and related costs incurred in making our products available for sale or use . beginning in january 2013 , our cost of goods sold increased as a result of a medical device excise tax ( “ mdet ” ) of up to 2.3 % on the sale of certain medical devices in the united states . on december 18 , 2015 , the mdet was suspended for two years effective january 1 , 2016. in january 2018 , congress further extended the moratorium on the medical device excise tax through january 1 , 2020. research and development expenses our research and development expenses primarily consist of engineering , product development , clinical and regulatory expenses , consulting services , outside prototyping services , internal and external research activities , materials , depreciation , and other costs associated with development of our products . research and development expenses also include related personnel and consultants ' compensation and stock-based compensation expense . we expense research and development costs as they are incurred . we expect to incur additional research and development costs as we continue to develop new products . these costs will increase in absolute terms as we continue to expand our product pipeline and add personnel . selling , general and administrative expenses selling , general and administrative expenses primarily consist of salaries , benefits and other related costs , including stock-based compensation for personnel employed in sales , marketing , finance , legal , compliance , administrative , information technology , medical education and training , quality and human resource departments . our selling , general and administrative expenses also include commissions , generally based on a percentage of sales , to direct sales representatives and distributors . we expect our selling , general and administrative expenses will increase in absolute terms with the continued expansion of our sales force and commercialization of our current and pipeline products . we plan to hire more personnel to support the growth of our business . provision for litigation we record a provision for litigation settlements when a loss is known or considered probable and the amount can be reasonably estimated and in the case of a favorable settlement , income when realized . amortization of intangibles we amortize finite lived intangible assets over the period of estimated benefit using the straight-line method and estimated lives ranging from one to seventeen years . story_separator_special_tag for additional information regarding the alphatec international acquisition , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 2. acquisitions ” and for additional information regarding constant currency , please refer to “ non-gaap financial measures ” below . 62 cost of goods sold replace_table_token_7_th the increase in cost of goods sold was primarily due to increases from higher volumes , product mix and inventory write offs . partially offsetting these increases was a cost benefit of $ 4.0 million from in-house manufacturing . research and development expenses replace_table_token_8_th the decrease in research and development expenses was due primarily to $ 4.0 million of one-time licensing cost incurred in 2016 , which was partially offset by increased investment into inr technology and orthopedic trauma for additional headcount to further research activities and development of new innovative products . selling , general and administrative expenses replace_table_token_9_th the increase in selling , general and administrative expenses was due primarily to increases of $ 15.8 million of costs to support alphatec international sales , $ 9.5 million of costs to build the inr technology and orthopedic trauma sales forces , and a $ 10.1 million increase in the u.s. sales force expenses . in addition , there were cost increases of $ 6.5 million related to general and administrative compensation costs . provision for litigation replace_table_token_10_th the current year provision for litigation , which is relatively consistent with the prior year provision , includes legal settlement and verdict costs . 63 for additional information regarding litigation , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 15. commitments and contingencies . ” amortization of intangibles replace_table_token_11_th the increase in the amortization of intangibles is primarily due to intangible assets acquired in connection with the alphatec international acquisition . acquisition related costs replace_table_token_12_th acquisition related costs remained consistent for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016. the current year balance primarily consists of costs associated with the kb medical acquisition . other income , net replace_table_token_13_th the increase in other income , net is due primarily to increases in interest income from increased average investment balances and the note receivable with alphatec spine inc. , coupled with increases in foreign exchange transaction gains . for additional information regarding the note receivable with alphatec spine inc. , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 3. note receivable . ” 64 income tax provision replace_table_token_14_th our tax provision and effective tax rate for the year ended december 31 , 2017 was higher than the prior year due primarily to the impact of the u.s. tax cuts and jobs act ( “ tax reform act ” ) , as further described in “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 13. income taxes . ” year ended december 31 , 2016 compared to the year ended december 31 , 2015 sales the following table sets forth , for the periods indicated , our sales by product category and geography expressed as dollar amounts and the changes in sales between the specified periods expressed in dollar amounts and as percentages : replace_table_token_15_th product launches continue to be a driving force in our sales growth , particularly from products launched during the last three years . the growth in disruptive technology of $ 19.7 million was due primarily to sales of regenerative biologics , expandable interbody and minimally invasive products launched during the past three years , including sales from ttot since the acquisition in late 2014. innovative fusion sales decreased by $ 0.5 million due to sales declines of pedicle screw systems , which were partially offset by increases from alphatec international sales . replace_table_token_16_th in the united states , the increase in sales of $ 2.0 million was due primarily to expansion into new territories and increased penetration in existing territories . the region experienced strong sales in disruptive technology products , led by sales of expandable interbody products and regenerative biologics , which were partially offset by declines in innovative fusion products , primarily pedicle screw systems . 65 internationally , the increase in sales of $ 17.2 million was primarily due to incremental sales from the alphatec international acquisition . on a constant currency basis , our international sales grew $ 18.8 million , or by 40.4 % , due to expansion into new international territories . our worldwide sales increased 3.8 % on a constant currency basis . for additional information regarding the alphatec international acquisition , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 2. acquisitions ” and for additional information regarding constant currency , please refer to “ non-gaap financial measures ” below . cost of goods sold replace_table_token_17_th the increase in cost of goods sold was primarily due to increases from higher volumes , product mix , inventory write offs and increases in depreciation and other operational costs . included in these increases was a prior period adjustment of $ 1.8 million . partially offsetting these increases was $ 9.0 million in savings related to the two-year moratorium on the medical device excise tax ( “ mdet ” ) , which began january 1 , 2016. savings of $ 5.0 million were realized in 2016 from the impact of lower manufacturing costs from branch medical group ( “ bmg ” ) as well as a $ 3.4 million decrease in freight costs . for additional information regarding the prior period adjustment , please refer to “ part ii ; item 8. financial statements and supplementary data ; notes to consolidated financial statements ; note 1.

the company named brian deck as interim president and chief executive officer and matt meister as interim chief financial officer effective september 22 , 2020 , and each as official successors to those roles effective december 11 , 2020 and december 14 , 2020 , respectively . the company also named alan feldman as interim chairman of its board of directors effective june 20 , 2020 and as official successor to this role effective on september 22 , 2020. business conditions and outlook during 2020 , despite significant decline in our revenues , our operating margins declined only marginally , due to expense control , the strength of our aftermarket business and the contribution from recent acquisitions . additionally , we have continued to enhance our internal operating efficiency with the ongoing benefits of our restructuring program and management through the jbt operating system . in terms of top–line growth , the environment in 2020 was characterized by business uncertainty which impacted our ability to convert commercial activity into order commitments at foodtech . passenger air travel came to a halt in the early months of 2020 and has not experienced a meaningful recovery to date . this has significantly impacted aerotech revenue which we expect may not fully recover until 2024. moreover , recurring revenue ( aftermarket parts and services and lease revenues ) , which represented more than 44 % of total jbt revenue , has provided stability and reliable profitability demonstrating a resilient model built to sustain such unusual market forces . while the demand environment at foodtech has improved since the early days of the pandemic , the economic environment has changed indefinitely and jbt is evolving to continue supporting our food and air transportation customers during a difficult period . we have also captured sustainable structural improvements from our restructuring program . in addition , the real-time production information provided by the jbt operating system enables us to proactively align costs with current market conditions . impact of covid-19 on our business the covid-19 pandemic has resulted and will continue to result in significant economic disruption and has adversely affected our business . the following uncertainties exist and may continue to have a negative impact on our overall financial results : our ability to obtain raw material from domestic and international suppliers required to manufacture our products and execute our services ; our ability to secure inbound and outbound logistics to and from our facilities , with additional delays linked to international border crossings and the associated approvals and documentation ; our ability to access customer locations in order to execute installations , new product deliveries , maintenance and repair services ; our ability to efficiently operate our facilities and meet customer obligations due to modified employee work patterns resulting from social distancing guidelines , absence due to illness and cautionary quarantines and or government ordered closures ; limitations on the ability of our customers to conduct their business , and resulting impacts to our customers ' purchasing patterns , from food and travel disruption , social distancing guidelines , absence due to illness and cautionary quarantines or government ordered closures ; and limitations on the ability of our customers to meet their financial obligations to jbt . specifically , when compared to the prior year , and as a result of the global shelter in place and social distancing requirements that have continued throughout 2020 , the food industry has experienced a notable rise in retail demand . this increase in demand is offset by a decline in demand for food service due to the reduced restaurant , travel and school activity . while our foodtech customers are present in both the retail and food services channels , this shift in demand creates volatility and uncertainty in our customer 's purchasing patterns . our inbound foodtech orders in the fourth quarter and year-to-date were 1 % - 2 % lower in both periods than those of 2019 , but progressively increased as the year unfolded as we continued to see improved access to customer plants and positive recovery for food processors , specifically for those in the quick service restaurant drive through businesses and those servicing the sustained `` eat-at-home `` trend . our customers appear to be investing more to support these trends , addressing immediate capacity needs and creating strong interest in foodtech 's broad product offerings . although the pandemic has negatively impacted our full year inbound numbers and results of operations in foodtech compared to the prior year , we also believe it may present an opportunity to accelerate initiatives that were previously underway to bring automation solutions to the protein market . in addition , the liquid foods end products such as juice , canned foods and ready meals remain in high retail demand during the pandemic . for aerotech , a large portion of the business depends on the passenger airline industry . passenger air travel had virtually halted world-wide as of the end of the first quarter , slowly began to resume as areas re-opened throughout the year and saw a small increase 32 in the fourth quarter during the holiday period . however global passenger traffic continues to be well below pre-pandemic levels . this has directly impacted our mobile equipment and airport services business throughout 2020 , and we expect this impact of the pandemic to continue well into 2023. airport infrastructure spending , which is subject to long lead time contracts , remained relatively stable through the fourth quarter , and , although our projections have more uncertainty than in pre-pandemic periods , we expect demand and inbound orders for these products to continue into 2021. in addition , the cost controls including restructuring , and diversity of revenue streams within the business , have allowed for aerotech to remain solidly profitable despite these impacts and uncertainties . story_separator_special_tag we recognized restructuring charges of $ 9.9 million , net of a cumulative release of the related liability of $ 0.3 million , through december 31 , 2020 , and expect to recognize the remaining costs by end of the year 2021. cumulative cost savings for the 2020 restructuring plan during the year ended december 31 , 2020 was $ 0.7 million , with savings of $ 0.5 million in cost of sales and $ 0.2 million in selling , general and administrative expense . for the 2020 restructuring plan , incremental cost savings we expect to realize during the years 2021 and 2022 are as follows : replace_table_token_8_th for additional financial information about restructuring , refer to note 19. restructuring in the notes to condensed consolidated financial statements . 39 operating results of business segments replace_table_token_9_th ( 1 ) refer to note 18. business segments in the notes to condensed consolidated financial statements . ( 2 ) segment operating profit is defined as total segment revenue less segment operating expense . corporate expense , restructuring expense , interest income and expense and income taxes are not allocated to the segments . corporate expense generally includes corporate staff-related expense , stock-based compensation , lifo adjustments , certain foreign currency-related gains and losses , and the impact of unusual or strategic events not representative of segment operations . jbt foodtech 2020 compared with 2019 foodtech revenue declined 7 % for the year ended december 31 , 2020 compared to 2019. acquisitions contributed 4 % revenue growth while organic revenue declined 11 % from 2019. unfavorable foreign currency translation was not significant for the year ended december 31 , 2020. organic revenue declines reflected significant disruption in orders and revenues due to global slowdowns in business delaying capital expenditures as a result of the covid-19 pandemic . organic recurring revenues increased 3.2 % in the year ended december 31 , 2020 compared to 2019 , as most food processing companies sustained critical operations , despite the disruption from the covid-19 pandemic , requiring maintenance and parts . foodtech operating profit declined $ 14.1 million , or 8 % , year over year for the year ended december 31 , 2020 compared to 2019. operating profit margin was 13.8 % in 2020 compared to 13.9 % in the prior year . operating profit margin declined in 2020 compared to 2019 due to the significant revenue decline experienced in 2020. gross profit margins increased 100 bps in 2020 compared to margins in 2019 primarily due to a higher recurring revenue mix , which increased from 44 % of revenues in 2019 to 49 % of revenues 40 in 2020. selling , general and administrative expenses were $ 12.2 million lower in 2020 compared to 2019 , 21.3 % as a percent of sales in 2020 compared to 20.5 % in 2019. the decline was primarily reflective of cost actions taken in reaction to the covid-19 pandemic , including reduced travel and lower compensation . savings were partially offset by higher costs from full year inclusion of 2019 acquisition-related expenses . currency translation reduced comparative earnings during 2020 by $ 5.3 million . jbt aerotech 2020 compared with 2019 aerotech revenue decreased $ 122.6 million in 2020 compared to 2019. this is a 20 % decrease with a 19 % decline contributed by our mobile equipment business and a 4 % decline contributed by our service business , partially offset by 3 % growth contributed by our fixed equipment business . mobile equipment revenue decline was due to lower equipment and aftermarket sales driven by significantly lower customer demand as a result of the covid-19 pandemic . service revenue decline was driven by lower revenues from maintenance contracts at domestic airports mostly as a result of the covid-19 pandemic . fixed equipment revenue growth was primarily due to higher passenger boarding bridge activity and related products to domestic airports partly offset by lower aftermarket sales as a result of the covid-19 pandemic . revenues from acquisitions and currency translation had an immaterial impact . aerotech operating profit decreased $ 26.0 million in 2020 compared to 2019. jbt aerotech 's operating profit margin was 10.7 % compared to 12.8 % in the prior year , reflecting a decrease of 210 bps . gross profit margins declined by 220 bps due to an inventory impairment resulting from restructuring , lower mix of aftermarket sales and lost leverage of fixed manufacturing costs as a result of lower revenues which were all partly offset by productivity and material cost improvements . selling , general and administrative expenses in 2020 were $ 11.9 million lower than 2019 as a result of cost reduction efforts and were 10 bps lower as a percent of sales compared to 2019. currency translation did not have a material impact on our operating profit comparative results . corporate expense 2020 compared with 2019 corporate expense decreased by $ 13.6 million compared to 2019 , driven primarily by a decrease in m & a related costs , lower incentive compensation , and foreign currency transactions gain , partially offset by management succession costs in 2020. corporate expense as a percent of revenues decreased to 2.8 % in 2020 compared to 3.2 % in 2019. inbound orders and order backlog inbound orders represent the estimated sales value of confirmed customer orders received during the years ended december 31 , replace_table_token_10_th order backlog is calculated as the estimated sales value of unfilled , confirmed customer orders as of december 31 , replace_table_token_11_th order backlog in our jbt foodtech segment at december 31 , 2020 increased by $ 25.2 million compared to december 31 , 2019. we expect to convert almost all of jbt foodtech backlog at december 31 , 2020 into revenue during 2021. order backlog in our jbt aerotech segment at december 31 , 2020 decreased by $ 17.7 million compared to december 31 , 2019. we expect to convert 81 % of the jbt aerotech backlog

liquidity and capital resources our primary sources of liquidity are cash flows provided by operating activities and borrowings from our revolving credit facility . our liquidity as of december 31 , 2020 , or cash plus borrowing capacity under our revolving credit facilities was $ 449.6 million . the cash flows generated by our operations and revolving credit facility are expected to be sufficient to satisfy our working capital needs , new product development , restructuring expense , capital expenditures , dividend payments , pension contributions , payments due under the cares act for payroll tax deferral and other financing requirements . in light of the covid-19 pandemic , and actions taken in response to the pandemic as described above under `` impact of covid-19 on our business '' , we have taken near-term actions to maintain our liquidity and reduce debt by reducing capital expenditures , operating expenses and managing trade receivables . additionally , we are pursuing opportunities to increase liquidity by availing ourselves of benefits under the cares act including both deferred tax payments and tax credits related to the covid-19 pandemic . for the year ended december 31 , 2020 , we had total operating cash flow of $ 252.0 million and $ 231.7 million in free cash flow , which includes $ 10.3 million in benefits from deferred payroll tax payments under the cares act . in addition , our capital expenditures were $ 34.3 million for 2020 compared to $ 37.9 million in the prior year . we believe jbt 's strong balance sheet , operating cash flows , and access to capital at december 31 , 2020 positions us to navigate through the challenging economic conditions associated with the covid-19 pandemic . as of december 31 , 2020 , we had $ 47.5 million of cash and cash equivalents , $ 41.7 million of which was held by our foreign subsidiaries . although these funds are considered permanently invested in our foreign subsidiaries , we are not presently aware of any restriction on the repatriation of these funds .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary sources of liquidity are cash flows provided by operating activities and borrowings from our revolving credit facility . our liquidity as of december 31 , 2020 , or cash plus borrowing capacity under our revolving credit facilities was $ 449.6 million . the cash flows generated by our operations and revolving credit facility are expected to be sufficient to satisfy our working capital needs , new product development , restructuring expense , capital expenditures , dividend payments , pension contributions , payments due under the cares act for payroll tax deferral and other financing requirements . in light of the covid-19 pandemic , and actions taken in response to the pandemic as described above under `` impact of covid-19 on our business '' , we have taken near-term actions to maintain our liquidity and reduce debt by reducing capital expenditures , operating expenses and managing trade receivables . additionally , we are pursuing opportunities to increase liquidity by availing ourselves of benefits under the cares act including both deferred tax payments and tax credits related to the covid-19 pandemic . for the year ended december 31 , 2020 , we had total operating cash flow of $ 252.0 million and $ 231.7 million in free cash flow , which includes $ 10.3 million in benefits from deferred payroll tax payments under the cares act . in addition , our capital expenditures were $ 34.3 million for 2020 compared to $ 37.9 million in the prior year . we believe jbt 's strong balance sheet , operating cash flows , and access to capital at december 31 , 2020 positions us to navigate through the challenging economic conditions associated with the covid-19 pandemic . as of december 31 , 2020 , we had $ 47.5 million of cash and cash equivalents , $ 41.7 million of which was held by our foreign subsidiaries . although these funds are considered permanently invested in our foreign subsidiaries , we are not presently aware of any restriction on the repatriation of these funds . ``` Suspicious Activity Report : the company named brian deck as interim president and chief executive officer and matt meister as interim chief financial officer effective september 22 , 2020 , and each as official successors to those roles effective december 11 , 2020 and december 14 , 2020 , respectively . the company also named alan feldman as interim chairman of its board of directors effective june 20 , 2020 and as official successor to this role effective on september 22 , 2020. business conditions and outlook during 2020 , despite significant decline in our revenues , our operating margins declined only marginally , due to expense control , the strength of our aftermarket business and the contribution from recent acquisitions . additionally , we have continued to enhance our internal operating efficiency with the ongoing benefits of our restructuring program and management through the jbt operating system . in terms of top–line growth , the environment in 2020 was characterized by business uncertainty which impacted our ability to convert commercial activity into order commitments at foodtech . passenger air travel came to a halt in the early months of 2020 and has not experienced a meaningful recovery to date . this has significantly impacted aerotech revenue which we expect may not fully recover until 2024. moreover , recurring revenue ( aftermarket parts and services and lease revenues ) , which represented more than 44 % of total jbt revenue , has provided stability and reliable profitability demonstrating a resilient model built to sustain such unusual market forces . while the demand environment at foodtech has improved since the early days of the pandemic , the economic environment has changed indefinitely and jbt is evolving to continue supporting our food and air transportation customers during a difficult period . we have also captured sustainable structural improvements from our restructuring program . in addition , the real-time production information provided by the jbt operating system enables us to proactively align costs with current market conditions . impact of covid-19 on our business the covid-19 pandemic has resulted and will continue to result in significant economic disruption and has adversely affected our business . the following uncertainties exist and may continue to have a negative impact on our overall financial results : our ability to obtain raw material from domestic and international suppliers required to manufacture our products and execute our services ; our ability to secure inbound and outbound logistics to and from our facilities , with additional delays linked to international border crossings and the associated approvals and documentation ; our ability to access customer locations in order to execute installations , new product deliveries , maintenance and repair services ; our ability to efficiently operate our facilities and meet customer obligations due to modified employee work patterns resulting from social distancing guidelines , absence due to illness and cautionary quarantines and or government ordered closures ; limitations on the ability of our customers to conduct their business , and resulting impacts to our customers ' purchasing patterns , from food and travel disruption , social distancing guidelines , absence due to illness and cautionary quarantines or government ordered closures ; and limitations on the ability of our customers to meet their financial obligations to jbt . specifically , when compared to the prior year , and as a result of the global shelter in place and social distancing requirements that have continued throughout 2020 , the food industry has experienced a notable rise in retail demand . this increase in demand is offset by a decline in demand for food service due to the reduced restaurant , travel and school activity . while our foodtech customers are present in both the retail and food services channels , this shift in demand creates volatility and uncertainty in our customer 's purchasing patterns . our inbound foodtech orders in the fourth quarter and year-to-date were 1 % - 2 % lower in both periods than those of 2019 , but progressively increased as the year unfolded as we continued to see improved access to customer plants and positive recovery for food processors , specifically for those in the quick service restaurant drive through businesses and those servicing the sustained `` eat-at-home `` trend . our customers appear to be investing more to support these trends , addressing immediate capacity needs and creating strong interest in foodtech 's broad product offerings . although the pandemic has negatively impacted our full year inbound numbers and results of operations in foodtech compared to the prior year , we also believe it may present an opportunity to accelerate initiatives that were previously underway to bring automation solutions to the protein market . in addition , the liquid foods end products such as juice , canned foods and ready meals remain in high retail demand during the pandemic . for aerotech , a large portion of the business depends on the passenger airline industry . passenger air travel had virtually halted world-wide as of the end of the first quarter , slowly began to resume as areas re-opened throughout the year and saw a small increase 32 in the fourth quarter during the holiday period . however global passenger traffic continues to be well below pre-pandemic levels . this has directly impacted our mobile equipment and airport services business throughout 2020 , and we expect this impact of the pandemic to continue well into 2023. airport infrastructure spending , which is subject to long lead time contracts , remained relatively stable through the fourth quarter , and , although our projections have more uncertainty than in pre-pandemic periods , we expect demand and inbound orders for these products to continue into 2021. in addition , the cost controls including restructuring , and diversity of revenue streams within the business , have allowed for aerotech to remain solidly profitable despite these impacts and uncertainties . story_separator_special_tag we recognized restructuring charges of $ 9.9 million , net of a cumulative release of the related liability of $ 0.3 million , through december 31 , 2020 , and expect to recognize the remaining costs by end of the year 2021. cumulative cost savings for the 2020 restructuring plan during the year ended december 31 , 2020 was $ 0.7 million , with savings of $ 0.5 million in cost of sales and $ 0.2 million in selling , general and administrative expense . for the 2020 restructuring plan , incremental cost savings we expect to realize during the years 2021 and 2022 are as follows : replace_table_token_8_th for additional financial information about restructuring , refer to note 19. restructuring in the notes to condensed consolidated financial statements . 39 operating results of business segments replace_table_token_9_th ( 1 ) refer to note 18. business segments in the notes to condensed consolidated financial statements . ( 2 ) segment operating profit is defined as total segment revenue less segment operating expense . corporate expense , restructuring expense , interest income and expense and income taxes are not allocated to the segments . corporate expense generally includes corporate staff-related expense , stock-based compensation , lifo adjustments , certain foreign currency-related gains and losses , and the impact of unusual or strategic events not representative of segment operations . jbt foodtech 2020 compared with 2019 foodtech revenue declined 7 % for the year ended december 31 , 2020 compared to 2019. acquisitions contributed 4 % revenue growth while organic revenue declined 11 % from 2019. unfavorable foreign currency translation was not significant for the year ended december 31 , 2020. organic revenue declines reflected significant disruption in orders and revenues due to global slowdowns in business delaying capital expenditures as a result of the covid-19 pandemic . organic recurring revenues increased 3.2 % in the year ended december 31 , 2020 compared to 2019 , as most food processing companies sustained critical operations , despite the disruption from the covid-19 pandemic , requiring maintenance and parts . foodtech operating profit declined $ 14.1 million , or 8 % , year over year for the year ended december 31 , 2020 compared to 2019. operating profit margin was 13.8 % in 2020 compared to 13.9 % in the prior year . operating profit margin declined in 2020 compared to 2019 due to the significant revenue decline experienced in 2020. gross profit margins increased 100 bps in 2020 compared to margins in 2019 primarily due to a higher recurring revenue mix , which increased from 44 % of revenues in 2019 to 49 % of revenues 40 in 2020. selling , general and administrative expenses were $ 12.2 million lower in 2020 compared to 2019 , 21.3 % as a percent of sales in 2020 compared to 20.5 % in 2019. the decline was primarily reflective of cost actions taken in reaction to the covid-19 pandemic , including reduced travel and lower compensation . savings were partially offset by higher costs from full year inclusion of 2019 acquisition-related expenses . currency translation reduced comparative earnings during 2020 by $ 5.3 million . jbt aerotech 2020 compared with 2019 aerotech revenue decreased $ 122.6 million in 2020 compared to 2019. this is a 20 % decrease with a 19 % decline contributed by our mobile equipment business and a 4 % decline contributed by our service business , partially offset by 3 % growth contributed by our fixed equipment business . mobile equipment revenue decline was due to lower equipment and aftermarket sales driven by significantly lower customer demand as a result of the covid-19 pandemic . service revenue decline was driven by lower revenues from maintenance contracts at domestic airports mostly as a result of the covid-19 pandemic . fixed equipment revenue growth was primarily due to higher passenger boarding bridge activity and related products to domestic airports partly offset by lower aftermarket sales as a result of the covid-19 pandemic . revenues from acquisitions and currency translation had an immaterial impact . aerotech operating profit decreased $ 26.0 million in 2020 compared to 2019. jbt aerotech 's operating profit margin was 10.7 % compared to 12.8 % in the prior year , reflecting a decrease of 210 bps . gross profit margins declined by 220 bps due to an inventory impairment resulting from restructuring , lower mix of aftermarket sales and lost leverage of fixed manufacturing costs as a result of lower revenues which were all partly offset by productivity and material cost improvements . selling , general and administrative expenses in 2020 were $ 11.9 million lower than 2019 as a result of cost reduction efforts and were 10 bps lower as a percent of sales compared to 2019. currency translation did not have a material impact on our operating profit comparative results . corporate expense 2020 compared with 2019 corporate expense decreased by $ 13.6 million compared to 2019 , driven primarily by a decrease in m & a related costs , lower incentive compensation , and foreign currency transactions gain , partially offset by management succession costs in 2020. corporate expense as a percent of revenues decreased to 2.8 % in 2020 compared to 3.2 % in 2019. inbound orders and order backlog inbound orders represent the estimated sales value of confirmed customer orders received during the years ended december 31 , replace_table_token_10_th order backlog is calculated as the estimated sales value of unfilled , confirmed customer orders as of december 31 , replace_table_token_11_th order backlog in our jbt foodtech segment at december 31 , 2020 increased by $ 25.2 million compared to december 31 , 2019. we expect to convert almost all of jbt foodtech backlog at december 31 , 2020 into revenue during 2021. order backlog in our jbt aerotech segment at december 31 , 2020 decreased by $ 17.7 million compared to december 31 , 2019. we expect to convert 81 % of the jbt aerotech backlog

as of december 31 , 2014 , our operations have been funded primarily by $ 105.1 million in equity investments from venture investors , $ 219.3 million from public investors , $ 64.2 million in equity investments from our collaboration partners and $ 216.8 million in upfront payments , milestones , and net research and development payments from our collaboration partners . we estimate that we have spent approximately $ 122.3 million on research and development for the three year period from 2012 through 2014. we expect to continue to incur significant expenses and increasing operating losses over at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : conduct clinical trials for dalantercept and ace-083 ; 63 continue our preclinical studies and potential clinical development efforts of our existing preclinical therapeutic candidates ; continue research activities for the discovery of new therapeutic candidates ; manufacture therapeutic candidates for our preclinical studies and clinical trials ; seek regulatory approval for our therapeutic candidates ; and operate as a public company . we will not generate revenue from product sales unless and until we or a partner successfully complete development and obtain regulatory approval for one or more of our therapeutic candidates , which we expect will take a number of years and is subject to significant uncertainty . all current and future development and commercialization costs for sotatercept and luspatercept are paid by celgene . if we obtain regulatory approval for dalantercept , ace-083 or any future therapeutic candidate , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution to the extent that such costs are not paid by future partners . we will seek to fund our operations through the sale of equity , debt financings or other sources , including potential additional collaborations . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such other arrangements as , and when , needed , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our therapeutic candidates . our ability to generate product revenue and become profitable depends upon our and our partners ' ability to successfully commercialize products . we expect to incur losses for the foreseeable future , and we expect these losses to increase as we continue our development of , and seek regulatory approvals for , our therapeutic candidates and potentially begin to commercialize any approved products . for a description of the numerous risks and uncertainties associated with product development , see `` risk factors `` . financial operations overview revenue collaboration revenue we have not generated any revenue from the sale of products . our revenue to date has been predominantly derived from collaboration revenue , which includes license and milestone revenues and cost sharing revenue , generated through collaboration and license agreements with partners for the development and commercialization of our therapeutic candidates . cost sharing revenue represents amounts reimbursed by our collaboration partners for expenses incurred by us for research and development activities and , potentially , co-promotion activities , under our collaboration agreements . cost sharing revenue is recognized in the period that the related activities are performed . to the extent that we reimburse collaborators for costs incurred in connection with activities performed by them , we record these costs as a reduction of cost-sharing revenue . contract manufacturing revenue we have generated contract manufacturing revenue in the past but have no current contract manufacturing arrangements . contract manufacturing revenue consists of revenue received for producing bulk drug substance for third parties other than our partners . costs and expenses research and development expenses research and development expenses consist primarily of costs directly incurred by us for the development of our therapeutic candidates , which include : direct employee-related expenses , including salaries , benefits , travel and stock-based compensation expense of our research and development personnel ; expenses incurred under agreements with clinical research organizations , or cros , and investigative sites that will conduct our clinical trials ; 64 the cost of acquiring and manufacturing preclinical and clinical study materials and developing manufacturing processes ; allocated facilities , depreciation , and other expenses , which include rent and maintenance of facilities , insurance and other supplies ; expenses associated with obtaining and maintaining patents ; and costs associated with preclinical activities and regulatory compliance . research and development costs are expensed as incurred . costs for certain development activities 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 . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our therapeutic candidates or if , when , or to what extent we will generate revenues from the commercialization and sale of any of our therapeutic candidates for which we or any partner obtain regulatory approval . we or our partners may never succeed in achieving regulatory approval for any of our therapeutic candidates . the duration , costs and timing of clinical trials and development of our therapeutic candidates will depend on a variety of factors , including : the scope , rate of progress , and expense of our ongoing , as well as any additional , clinical trials and other research and development activities ; future clinical trial results ; potential changes in government regulation ; and the timing and receipt of any regulatory approvals . story_separator_special_tag we determine the estimates of clinical activities incurred at the end of each reporting period through discussion with internal personnel and outside service providers as to the progress or stage of completion of trials or services , as of the end of each reporting period , pursuant to contracts with numerous clinical trial centers and cros and the agreed upon fee to be paid for such services . the significant factors considered in estimating accruals include the number of patients enrolled and the percentage of work completed to date . costs of setting up clinical trial sites for participation in the trials that are paid for in advance are expensed over the estimated set-up period . while the set-up periods vary from one arrangement to another , such set-up periods generally take approximately three months . set-up activities include clinical site identification , institutional review board , or irb , submissions , regulatory submissions , clinical investigator kick-off meetings and pre-study site visits . clinical trial site costs related to patient enrollments are accrued as patients are entered into the trial . stock-based compensation we account for our stock-based awards in accordance with asc topic 718 , compensation—stock compensation , or asc 718 , which requires all stock-based payments to employees , including grants of employee stock options and modifications to existing stock options , to be recognized in the statements of operations and comprehensive income ( loss ) based on their fair values . we recognize the compensation cost of awards subject to service-based vesting conditions over the requisite service period , which is generally equal to the vesting term . for awards subject to both performance and service-based vesting conditions , we recognize compensation cost using an accelerated recognition method when it is probable that the performance condition will be achieved . we account for stock-based awards to non-employees using the fair value method . stock options granted to non-employees are subject to periodic revaluation over their vesting terms and stock-based compensation cost is recognized using an accelerated recognition method . we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option pricing model , which requires the input of highly subjective assumptions , including ( 1 ) the expected volatility of our stock , ( 2 ) the expected term of the award , ( 3 ) the risk-free interest rate and ( 4 ) expected dividends . due to the lack of a public market for our common stock prior to the completion of our initial public offering in september 2013 , and resulting lack of company-specific historical and implied volatility data , we have based our estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded . for these analyses , we have selected companies with characteristics that we believe are comparable to ours , including enterprise value , risk profiles , position within the industry , and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period as the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we also estimate forfeitures at the time of grant , and revise those estimates in subsequent periods if actual forfeitures differ from estimates . we use historical data to estimate pre-vesting option forfeitures to the extent that actual forfeitures differ from our estimates , the difference is recorded as a cumulative adjustment in the period the estimates were revised . stock-based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest . for the years ended december 31 , 2014 , 2013 and 2012 , we used a forfeiture rate of 4 % , 4 % , and 5 % , respectively . stock-based compensation totaled approximately $ 4.8 million , $ 2.2 million , and $ 1.2 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . we expect the impact of our stock-based compensation expense for stock-based awards granted to employees and non-employees to grow in future periods due to the potential increases in the value of our common stock and headcount . warrants to purchase preferred stock and common stock as of december 31 , 2014 , we had warrants outstanding to purchase 422,104 shares of common stock , of which warrants to purchase 409,470 shares of our common stock contain a provision requiring an adjustment to the number of shares in the event we issue common stock , or securities convertible into or exercisable for common stock , at a price per share lower than the warrant exercise price . the anti-dilution feature requires the warrants to be classified as liabilities and measured at fair value , with changes in fair value recognized as a component of other income ( expense ) . the fair value of the warrants to 69 purchase common stock on the date of issuance and on each re-measurement date for those warrants to purchase common stock classified as liabilities was estimated using either the monte carlo simulation framework , which incorporates future financing events over the remaining life of the warrants to purchase common stock , or for certain re-measurement dates including december 31 , 2013 and 2014

net cash used in operating activities was $ 53.2 million for the year ended december 31 , 2014 , and consisted primarily of a net loss of $ 51.3 million adjusted for non-cash items including a decrease in fair value of warrants of $ 5.0 million , stock-based compensation expense of $ 4.8 million , depreciation and amortization of $ 1.1 million , payments of deferred interest of $ 0.5 million , and a net decrease due to changes in operating assets and liabilities of $ 2.3 million . the significant items in the change in operating assets and liabilities include a decrease in deferred revenue of $ 1.7 million for the celgene collaboration . other components of the change in operating assets and liabilities include a decrease in collaboration receivables of $ 0.2 million , a decrease in deferred rent of $ 0.5 million , a decrease in accounts payable of $ 0.2 million , and an increase in prepaid and other current assets of $ 0.3 million . net cash used in operating activities was $ 19.6 million for the year ended december 31 , 2013 , and consisted primarily of a net loss of $ 21.9 million adjusted for non-cash items including an increase in fair value of warrants of $ 26.9 million , stock-based compensation expense of $ 2.2 million , depreciation and amortization of $ 0.9 million , forgiveness of the related party receivable of $ 0.2 million , accretion of deferred interest of $ 0.3 million , and amortization of deferred debt issuance costs of $ 0.2 million , and a net decrease due to changes in operating assets and liabilities of $ 28.5 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. ```net cash used in operating activities was $ 53.2 million for the year ended december 31 , 2014 , and consisted primarily of a net loss of $ 51.3 million adjusted for non-cash items including a decrease in fair value of warrants of $ 5.0 million , stock-based compensation expense of $ 4.8 million , depreciation and amortization of $ 1.1 million , payments of deferred interest of $ 0.5 million , and a net decrease due to changes in operating assets and liabilities of $ 2.3 million . the significant items in the change in operating assets and liabilities include a decrease in deferred revenue of $ 1.7 million for the celgene collaboration . other components of the change in operating assets and liabilities include a decrease in collaboration receivables of $ 0.2 million , a decrease in deferred rent of $ 0.5 million , a decrease in accounts payable of $ 0.2 million , and an increase in prepaid and other current assets of $ 0.3 million . net cash used in operating activities was $ 19.6 million for the year ended december 31 , 2013 , and consisted primarily of a net loss of $ 21.9 million adjusted for non-cash items including an increase in fair value of warrants of $ 26.9 million , stock-based compensation expense of $ 2.2 million , depreciation and amortization of $ 0.9 million , forgiveness of the related party receivable of $ 0.2 million , accretion of deferred interest of $ 0.3 million , and amortization of deferred debt issuance costs of $ 0.2 million , and a net decrease due to changes in operating assets and liabilities of $ 28.5 million . ``` Suspicious Activity Report : as of december 31 , 2014 , our operations have been funded primarily by $ 105.1 million in equity investments from venture investors , $ 219.3 million from public investors , $ 64.2 million in equity investments from our collaboration partners and $ 216.8 million in upfront payments , milestones , and net research and development payments from our collaboration partners . we estimate that we have spent approximately $ 122.3 million on research and development for the three year period from 2012 through 2014. we expect to continue to incur significant expenses and increasing operating losses over at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : conduct clinical trials for dalantercept and ace-083 ; 63 continue our preclinical studies and potential clinical development efforts of our existing preclinical therapeutic candidates ; continue research activities for the discovery of new therapeutic candidates ; manufacture therapeutic candidates for our preclinical studies and clinical trials ; seek regulatory approval for our therapeutic candidates ; and operate as a public company . we will not generate revenue from product sales unless and until we or a partner successfully complete development and obtain regulatory approval for one or more of our therapeutic candidates , which we expect will take a number of years and is subject to significant uncertainty . all current and future development and commercialization costs for sotatercept and luspatercept are paid by celgene . if we obtain regulatory approval for dalantercept , ace-083 or any future therapeutic candidate , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution to the extent that such costs are not paid by future partners . we will seek to fund our operations through the sale of equity , debt financings or other sources , including potential additional collaborations . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such other arrangements as , and when , needed , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our therapeutic candidates . our ability to generate product revenue and become profitable depends upon our and our partners ' ability to successfully commercialize products . we expect to incur losses for the foreseeable future , and we expect these losses to increase as we continue our development of , and seek regulatory approvals for , our therapeutic candidates and potentially begin to commercialize any approved products . for a description of the numerous risks and uncertainties associated with product development , see `` risk factors `` . financial operations overview revenue collaboration revenue we have not generated any revenue from the sale of products . our revenue to date has been predominantly derived from collaboration revenue , which includes license and milestone revenues and cost sharing revenue , generated through collaboration and license agreements with partners for the development and commercialization of our therapeutic candidates . cost sharing revenue represents amounts reimbursed by our collaboration partners for expenses incurred by us for research and development activities and , potentially , co-promotion activities , under our collaboration agreements . cost sharing revenue is recognized in the period that the related activities are performed . to the extent that we reimburse collaborators for costs incurred in connection with activities performed by them , we record these costs as a reduction of cost-sharing revenue . contract manufacturing revenue we have generated contract manufacturing revenue in the past but have no current contract manufacturing arrangements . contract manufacturing revenue consists of revenue received for producing bulk drug substance for third parties other than our partners . costs and expenses research and development expenses research and development expenses consist primarily of costs directly incurred by us for the development of our therapeutic candidates , which include : direct employee-related expenses , including salaries , benefits , travel and stock-based compensation expense of our research and development personnel ; expenses incurred under agreements with clinical research organizations , or cros , and investigative sites that will conduct our clinical trials ; 64 the cost of acquiring and manufacturing preclinical and clinical study materials and developing manufacturing processes ; allocated facilities , depreciation , and other expenses , which include rent and maintenance of facilities , insurance and other supplies ; expenses associated with obtaining and maintaining patents ; and costs associated with preclinical activities and regulatory compliance . research and development costs are expensed as incurred . costs for certain development activities 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 . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our therapeutic candidates or if , when , or to what extent we will generate revenues from the commercialization and sale of any of our therapeutic candidates for which we or any partner obtain regulatory approval . we or our partners may never succeed in achieving regulatory approval for any of our therapeutic candidates . the duration , costs and timing of clinical trials and development of our therapeutic candidates will depend on a variety of factors , including : the scope , rate of progress , and expense of our ongoing , as well as any additional , clinical trials and other research and development activities ; future clinical trial results ; potential changes in government regulation ; and the timing and receipt of any regulatory approvals . story_separator_special_tag we determine the estimates of clinical activities incurred at the end of each reporting period through discussion with internal personnel and outside service providers as to the progress or stage of completion of trials or services , as of the end of each reporting period , pursuant to contracts with numerous clinical trial centers and cros and the agreed upon fee to be paid for such services . the significant factors considered in estimating accruals include the number of patients enrolled and the percentage of work completed to date . costs of setting up clinical trial sites for participation in the trials that are paid for in advance are expensed over the estimated set-up period . while the set-up periods vary from one arrangement to another , such set-up periods generally take approximately three months . set-up activities include clinical site identification , institutional review board , or irb , submissions , regulatory submissions , clinical investigator kick-off meetings and pre-study site visits . clinical trial site costs related to patient enrollments are accrued as patients are entered into the trial . stock-based compensation we account for our stock-based awards in accordance with asc topic 718 , compensation—stock compensation , or asc 718 , which requires all stock-based payments to employees , including grants of employee stock options and modifications to existing stock options , to be recognized in the statements of operations and comprehensive income ( loss ) based on their fair values . we recognize the compensation cost of awards subject to service-based vesting conditions over the requisite service period , which is generally equal to the vesting term . for awards subject to both performance and service-based vesting conditions , we recognize compensation cost using an accelerated recognition method when it is probable that the performance condition will be achieved . we account for stock-based awards to non-employees using the fair value method . stock options granted to non-employees are subject to periodic revaluation over their vesting terms and stock-based compensation cost is recognized using an accelerated recognition method . we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option pricing model , which requires the input of highly subjective assumptions , including ( 1 ) the expected volatility of our stock , ( 2 ) the expected term of the award , ( 3 ) the risk-free interest rate and ( 4 ) expected dividends . due to the lack of a public market for our common stock prior to the completion of our initial public offering in september 2013 , and resulting lack of company-specific historical and implied volatility data , we have based our estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded . for these analyses , we have selected companies with characteristics that we believe are comparable to ours , including enterprise value , risk profiles , position within the industry , and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period as the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we also estimate forfeitures at the time of grant , and revise those estimates in subsequent periods if actual forfeitures differ from estimates . we use historical data to estimate pre-vesting option forfeitures to the extent that actual forfeitures differ from our estimates , the difference is recorded as a cumulative adjustment in the period the estimates were revised . stock-based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest . for the years ended december 31 , 2014 , 2013 and 2012 , we used a forfeiture rate of 4 % , 4 % , and 5 % , respectively . stock-based compensation totaled approximately $ 4.8 million , $ 2.2 million , and $ 1.2 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . we expect the impact of our stock-based compensation expense for stock-based awards granted to employees and non-employees to grow in future periods due to the potential increases in the value of our common stock and headcount . warrants to purchase preferred stock and common stock as of december 31 , 2014 , we had warrants outstanding to purchase 422,104 shares of common stock , of which warrants to purchase 409,470 shares of our common stock contain a provision requiring an adjustment to the number of shares in the event we issue common stock , or securities convertible into or exercisable for common stock , at a price per share lower than the warrant exercise price . the anti-dilution feature requires the warrants to be classified as liabilities and measured at fair value , with changes in fair value recognized as a component of other income ( expense ) . the fair value of the warrants to 69 purchase common stock on the date of issuance and on each re-measurement date for those warrants to purchase common stock classified as liabilities was estimated using either the monte carlo simulation framework , which incorporates future financing events over the remaining life of the warrants to purchase common stock , or for certain re-measurement dates including december 31 , 2013 and 2014

through our black diamond , pieps , and skinourishment brands , we offer a broad range of products including : high-performance , activity-based apparel ( such as shells , insulation , midlayers , pants and logowear ) ; rock-climbing footwear and equipment ( such as carabiners , protection devices , harnesses , belay devices , helmets , and ice-climbing gear ) ; technical backpacks and high-end day packs ; trekking poles ; headlamps and lanterns ; gloves and mittens ; and skincare and other sport-enhancing products . we also offer advanced skis , ski poles , ski skins , and snow safety products , including avalanche airbag systems , avalanche transceivers , shovels , and probes . through our sierra brand , we manufacture a wide range of high-performance bullets and ammunition for both rifles and pistols that are used for precision target shooting , hunting and military and law enforcement purposes . clarus corporation , incorporated in delaware in 1991 , acquired black diamond equipment , ltd. ( “ black diamond equipment ” ) in may 2010 and changed its name to black diamond , inc. in january 2011. in october 2012 , we acquired pieps holding gmbh and its subsidiaries ( collectively , “ pieps ” ) . on august 14 , 2017 , the company changed its name from black diamond , inc. to clarus corporation and its stock ticker symbol from “ bde ” to “ clar ” on the nasdaq stock exchange . on august 21 , 2017 , the company acquired sierra bullets , l.l.c . ( “ sierra ” ) . on november 6 , 2018 , the company acquired the assets of skinourishment , inc. ( “ skinourishment ” ) . on may 7 , 2018 , the company announced a “ modified dutch auction ” tender offer for clarus ' common stock , as well as the preferred share purchase rights associated with such shares ( collectively , the “ shares ” ) . on july 11 , 2018 , the tender offer expired , following which the company announced it would accept 417,237 shares for purchase at a price of $ 8.00 per share , for an aggregate cost of approximately $ 3,338,000 , excluding fees and expenses . 28 on august 6 , 2018 , the company announced that its board of directors approved the initiation of a quarterly cash dividend program of $ 0.025 per share of the company 's common stock ( the “ quarterly cash dividend ” ) or $ 0.10 per share on an annualized basis . in 2019 and 2018 , our total quarterly cash dividends were $ 2,987,000 and $ 1,488,000 , respectively . on january 24 , 2020 , the company announced that its board of directors approved the payment on february 14 , 2020 of the quarterly cash dividend to the record holders of shares of the company 's common stock as of the close of business on february 3 , 2020. critical accounting policies and use of estimates management 's discussion of our financial condition and results of operations is based on the consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements . estimates also affect the reported amounts of revenues and expenses during the reporting periods . we continually evaluate our estimates and assumptions including those related to derivatives , revenue recognition , income taxes and valuation of long-lived assets , goodwill and other intangible assets . we base our estimates on historical experience and other assumptions that are believed to be reasonable under the circumstances . actual results could differ from these estimates . we believe the following critical accounting policies include the more significant estimates and assumptions used in the preparation of our consolidated financial statements . our accounting policies are more fully described in note 1 of our consolidated financial statements . · we allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party valuation specialists to assist us in determining the fair values of certain assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions , especially with respect to intangible assets . different valuations approaches are used to value different types of intangible assets . the income approach is a valuation technique that capitalizes anticipated income associated with the asset being valued . this approach is predicated on developing net income and cash flow projections which are discounted for risk and the time value of money . this approach is generally the principal approach to the valuation of most intangible assets . the market approach involves the compilation and analysis of recent acquisitions of similar assets in the open market . a fair value can be estimated after adjustments are made to reflect comparability differences between the assets sold and those being valued . this method of valuation applies primarily to the valuation of owned land and certain intangible assets . the cost approach estimates the amount that would be required to replace the service capacity of an asset ( often referred to as current replacement cost ) . we typically apply all three approaches to estimate the fair value of our tangible and intangible tangible assets depending on the type of asset acquired . significant estimates in valuing certain intangible assets include but are not limited to the projected financial information related to each individual asset , particularly forecasted revenue growth rates , market-based royalty rates and estimated discount rates . story_separator_special_tag 6,371 in incremental sales during the year ended december 31 , 2018. the remaining increase in international sales was attributable to the increase in the quantity of new and existing climb and mountain products sold during the period and an increase in sales of $ 2,799 due to the strengthening of foreign currencies against the u.s. dollar during the year ended december 31 , 2018 compared to the prior period . 33 cost of goods sold consolidated cost of goods sold increased $ 21,302 , or 18.2 % , to $ 138,179 during the year ended december 31 , 2018 , compared to consolidated cost of goods sold of $ 116,877 during the year ended december 31 , 2017. the increase in cost of goods sold was partially attributable to the inclusion of sierra , which contributed $ 14,382 in incremental cost of goods sold , which included $ 1,049 related to the sale of inventory that was recorded at fair value in purchase accounting . the remaining increase was attributable to an increase in the number of units sold and the mix of higher cost products sold . gross profit consolidated gross profit increased $ 20,152 or 37.5 % , to $ 73,962 during the year ended december 31 , 2018 , compared to consolidated gross profit of $ 53,810 during the year ended december 31 , 2017. consolidated gross margin was 34.9 % during the year ended december 31 , 2018 , compared to a consolidated gross margin of 31.5 % during the year ended december 31 , 2017. consolidated gross margin during the year ended december 31 , 2018 , increased compared to the prior year due to a favorable product mix in higher margin products and channel distribution . gross margin also benefited from the inclusion of sierra ; however , this benefit was partially offset by a decrease in gross margin of 0.5 % due to the sale of inventory that was recorded at its fair value in purchase accounting . consolidated gross margin during the year ended december 31 , 2017 was also negatively impacted by 1.2 % due to the sale of inventory that was recorded at its preliminary fair value in purchase accounting . selling , general and administrative consolidated selling , general , and administrative expenses increased $ 8,856 , or 15.7 % , to $ 65,151 during the year ended december 31 , 2018 , compared to consolidated selling , general and administrative expenses of $ 56,295 during the year ended december 31 , 2017. the increase in selling , general and administrative expenses was partially attributable to the inclusion of sierra of $ 4,504 in incremental selling , general , and administrative expenses . the remaining increase being attributable to the company 's investment in the brand related activities of sales , marketing , research and development , and fulfillment in supporting its strategic initiatives around new product introduction and increasing brand equity . stock compensation also increased $ 1,471 during the year ended december 31 , 2018 compared to the prior year . restructuring charges consolidated restructuring expense decreased $ 23 , or 14.4 % , to $ 137 during the year ended december 31 , 2018 , compared to consolidated restructuring expense of $ 160 during the year ended december 31 , 2017. restructuring expenses incurred during the year ended december 31 , 2018 , related to costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . merger and integration costs consolidated merger and integration expense decreased to $ 0 during the year ended december 31 , 2018 compared to consolidated merger and integration expense of $ 82 during the year ended december 31 , 2017 , which consisted of expenses related to the integration of sierra . transaction costs consolidated transaction expense decreased to $ 503 during the year ended december 31 , 2018 , compared to consolidated transaction costs of $ 2,088 during the year ended december 31 , 2017 , which consisted of expenses related to the company 's acquisition of sierra . interest expense , net consolidated interest expense , net increased $ 51 , or 4.0 % , to $ 1,339 during the year ended december 31 , 2018 , compared to consolidated interest expense , net , of $ 1,288 during the year ended december 31 , 2017. interest expense recognized during the year ended december 31 , 2018 was primarily attributable to the write-off of previously capitalized origination costs of $ 279 associated with our previous credit facility , which was replaced with the new credit agreement with jpmorgan chase bank , n.a . , and interest expense associated with the average outstanding debt amounts during the year ended december 31 , 2018. interest expense recognized during the year ended december 31 , 2017 was primarily attributable to the company 's 5 % senior subordinated notes which were repaid during the year ended december 31 , 2017. other , net consolidated other , net , decreased $ 702 , or 204.7 % , to expense of $ 359 during the year ended december 31 , 2018 , compared to consolidated other , net income of $ 343 during the year ended december 31 , 2017. the decrease in other , net , was primarily attributable to a decrease in remeasurement gains recognized on the company 's foreign denominated accounts receivable and accounts payable and losses related to recognition of cumulative translation adjustments due to the substantial liquidation of a foreign entity . this decrease was partially offset by gains on mark-to-market adjustments on non-hedged foreign currency contracts . 34 income taxes consolidated income tax benefit decreased $ 4,259 , or 83.7 % , to a benefit of $ 828 during the year ended december 31 , 2018 , compared to a consolidated income tax benefit of $ 5,087 during the same period in 2017. due to the tax

net cash from investing activities consolidated net cash used in investing activities was $ 4,096 during the year ended december 31 , 2019 compared to consolidated net cash used in investing activities of $ 4,079 during the year ended december 31 , 2018. the increase in cash used during the year ended december 31 , 2019 is due to an increase in purchases of property and equipment , compared to the same period in 2018. net cash from financing activities consolidated net cash used in financing activities was $ 6,286 during the year ended december 31 , 2019 , compared to consolidated net cash used in financing activities of $ 6,559 during the year ended december 31 , 2018. the decrease in cash used during the year ended december 31 , 2019 compared to the same period in 2018 is primarily due to decreases in the purchase of treasury stock and payments of debt issuance costs and increases in the proceeds from exercise of stock options . this decrease was partially offset by increased cash dividends paid and a decrease in net proceeds from the revolving credit facility . net operating loss as of december 31 , 2019 , the company had net operating loss and research and experimentation credit for u.s. federal income tax purposes of $ 131,621 and $ 4,250 , respectively . the company believes its u.s. federal nol will offset some of its future u.s. federal income taxes . the majority of the company 's pre-tax income is currently earned and expected to be earned in the u.s. , or taxed in the u.s. as subpart f income and will be offset with the nol . $ 131,621 of net operating losses available to offset taxable income does not expire until 2021 or later , subject to compliance with section 382 of the internal revenue code of 1986 , as amended .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 from investing activities consolidated net cash used in investing activities was $ 4,096 during the year ended december 31 , 2019 compared to consolidated net cash used in investing activities of $ 4,079 during the year ended december 31 , 2018. the increase in cash used during the year ended december 31 , 2019 is due to an increase in purchases of property and equipment , compared to the same period in 2018. net cash from financing activities consolidated net cash used in financing activities was $ 6,286 during the year ended december 31 , 2019 , compared to consolidated net cash used in financing activities of $ 6,559 during the year ended december 31 , 2018. the decrease in cash used during the year ended december 31 , 2019 compared to the same period in 2018 is primarily due to decreases in the purchase of treasury stock and payments of debt issuance costs and increases in the proceeds from exercise of stock options . this decrease was partially offset by increased cash dividends paid and a decrease in net proceeds from the revolving credit facility . net operating loss as of december 31 , 2019 , the company had net operating loss and research and experimentation credit for u.s. federal income tax purposes of $ 131,621 and $ 4,250 , respectively . the company believes its u.s. federal nol will offset some of its future u.s. federal income taxes . the majority of the company 's pre-tax income is currently earned and expected to be earned in the u.s. , or taxed in the u.s. as subpart f income and will be offset with the nol . $ 131,621 of net operating losses available to offset taxable income does not expire until 2021 or later , subject to compliance with section 382 of the internal revenue code of 1986 , as amended . ``` Suspicious Activity Report : through our black diamond , pieps , and skinourishment brands , we offer a broad range of products including : high-performance , activity-based apparel ( such as shells , insulation , midlayers , pants and logowear ) ; rock-climbing footwear and equipment ( such as carabiners , protection devices , harnesses , belay devices , helmets , and ice-climbing gear ) ; technical backpacks and high-end day packs ; trekking poles ; headlamps and lanterns ; gloves and mittens ; and skincare and other sport-enhancing products . we also offer advanced skis , ski poles , ski skins , and snow safety products , including avalanche airbag systems , avalanche transceivers , shovels , and probes . through our sierra brand , we manufacture a wide range of high-performance bullets and ammunition for both rifles and pistols that are used for precision target shooting , hunting and military and law enforcement purposes . clarus corporation , incorporated in delaware in 1991 , acquired black diamond equipment , ltd. ( “ black diamond equipment ” ) in may 2010 and changed its name to black diamond , inc. in january 2011. in october 2012 , we acquired pieps holding gmbh and its subsidiaries ( collectively , “ pieps ” ) . on august 14 , 2017 , the company changed its name from black diamond , inc. to clarus corporation and its stock ticker symbol from “ bde ” to “ clar ” on the nasdaq stock exchange . on august 21 , 2017 , the company acquired sierra bullets , l.l.c . ( “ sierra ” ) . on november 6 , 2018 , the company acquired the assets of skinourishment , inc. ( “ skinourishment ” ) . on may 7 , 2018 , the company announced a “ modified dutch auction ” tender offer for clarus ' common stock , as well as the preferred share purchase rights associated with such shares ( collectively , the “ shares ” ) . on july 11 , 2018 , the tender offer expired , following which the company announced it would accept 417,237 shares for purchase at a price of $ 8.00 per share , for an aggregate cost of approximately $ 3,338,000 , excluding fees and expenses . 28 on august 6 , 2018 , the company announced that its board of directors approved the initiation of a quarterly cash dividend program of $ 0.025 per share of the company 's common stock ( the “ quarterly cash dividend ” ) or $ 0.10 per share on an annualized basis . in 2019 and 2018 , our total quarterly cash dividends were $ 2,987,000 and $ 1,488,000 , respectively . on january 24 , 2020 , the company announced that its board of directors approved the payment on february 14 , 2020 of the quarterly cash dividend to the record holders of shares of the company 's common stock as of the close of business on february 3 , 2020. critical accounting policies and use of estimates management 's discussion of our financial condition and results of operations is based on the consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements . estimates also affect the reported amounts of revenues and expenses during the reporting periods . we continually evaluate our estimates and assumptions including those related to derivatives , revenue recognition , income taxes and valuation of long-lived assets , goodwill and other intangible assets . we base our estimates on historical experience and other assumptions that are believed to be reasonable under the circumstances . actual results could differ from these estimates . we believe the following critical accounting policies include the more significant estimates and assumptions used in the preparation of our consolidated financial statements . our accounting policies are more fully described in note 1 of our consolidated financial statements . · we allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party valuation specialists to assist us in determining the fair values of certain assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions , especially with respect to intangible assets . different valuations approaches are used to value different types of intangible assets . the income approach is a valuation technique that capitalizes anticipated income associated with the asset being valued . this approach is predicated on developing net income and cash flow projections which are discounted for risk and the time value of money . this approach is generally the principal approach to the valuation of most intangible assets . the market approach involves the compilation and analysis of recent acquisitions of similar assets in the open market . a fair value can be estimated after adjustments are made to reflect comparability differences between the assets sold and those being valued . this method of valuation applies primarily to the valuation of owned land and certain intangible assets . the cost approach estimates the amount that would be required to replace the service capacity of an asset ( often referred to as current replacement cost ) . we typically apply all three approaches to estimate the fair value of our tangible and intangible tangible assets depending on the type of asset acquired . significant estimates in valuing certain intangible assets include but are not limited to the projected financial information related to each individual asset , particularly forecasted revenue growth rates , market-based royalty rates and estimated discount rates . story_separator_special_tag 6,371 in incremental sales during the year ended december 31 , 2018. the remaining increase in international sales was attributable to the increase in the quantity of new and existing climb and mountain products sold during the period and an increase in sales of $ 2,799 due to the strengthening of foreign currencies against the u.s. dollar during the year ended december 31 , 2018 compared to the prior period . 33 cost of goods sold consolidated cost of goods sold increased $ 21,302 , or 18.2 % , to $ 138,179 during the year ended december 31 , 2018 , compared to consolidated cost of goods sold of $ 116,877 during the year ended december 31 , 2017. the increase in cost of goods sold was partially attributable to the inclusion of sierra , which contributed $ 14,382 in incremental cost of goods sold , which included $ 1,049 related to the sale of inventory that was recorded at fair value in purchase accounting . the remaining increase was attributable to an increase in the number of units sold and the mix of higher cost products sold . gross profit consolidated gross profit increased $ 20,152 or 37.5 % , to $ 73,962 during the year ended december 31 , 2018 , compared to consolidated gross profit of $ 53,810 during the year ended december 31 , 2017. consolidated gross margin was 34.9 % during the year ended december 31 , 2018 , compared to a consolidated gross margin of 31.5 % during the year ended december 31 , 2017. consolidated gross margin during the year ended december 31 , 2018 , increased compared to the prior year due to a favorable product mix in higher margin products and channel distribution . gross margin also benefited from the inclusion of sierra ; however , this benefit was partially offset by a decrease in gross margin of 0.5 % due to the sale of inventory that was recorded at its fair value in purchase accounting . consolidated gross margin during the year ended december 31 , 2017 was also negatively impacted by 1.2 % due to the sale of inventory that was recorded at its preliminary fair value in purchase accounting . selling , general and administrative consolidated selling , general , and administrative expenses increased $ 8,856 , or 15.7 % , to $ 65,151 during the year ended december 31 , 2018 , compared to consolidated selling , general and administrative expenses of $ 56,295 during the year ended december 31 , 2017. the increase in selling , general and administrative expenses was partially attributable to the inclusion of sierra of $ 4,504 in incremental selling , general , and administrative expenses . the remaining increase being attributable to the company 's investment in the brand related activities of sales , marketing , research and development , and fulfillment in supporting its strategic initiatives around new product introduction and increasing brand equity . stock compensation also increased $ 1,471 during the year ended december 31 , 2018 compared to the prior year . restructuring charges consolidated restructuring expense decreased $ 23 , or 14.4 % , to $ 137 during the year ended december 31 , 2018 , compared to consolidated restructuring expense of $ 160 during the year ended december 31 , 2017. restructuring expenses incurred during the year ended december 31 , 2018 , related to costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . merger and integration costs consolidated merger and integration expense decreased to $ 0 during the year ended december 31 , 2018 compared to consolidated merger and integration expense of $ 82 during the year ended december 31 , 2017 , which consisted of expenses related to the integration of sierra . transaction costs consolidated transaction expense decreased to $ 503 during the year ended december 31 , 2018 , compared to consolidated transaction costs of $ 2,088 during the year ended december 31 , 2017 , which consisted of expenses related to the company 's acquisition of sierra . interest expense , net consolidated interest expense , net increased $ 51 , or 4.0 % , to $ 1,339 during the year ended december 31 , 2018 , compared to consolidated interest expense , net , of $ 1,288 during the year ended december 31 , 2017. interest expense recognized during the year ended december 31 , 2018 was primarily attributable to the write-off of previously capitalized origination costs of $ 279 associated with our previous credit facility , which was replaced with the new credit agreement with jpmorgan chase bank , n.a . , and interest expense associated with the average outstanding debt amounts during the year ended december 31 , 2018. interest expense recognized during the year ended december 31 , 2017 was primarily attributable to the company 's 5 % senior subordinated notes which were repaid during the year ended december 31 , 2017. other , net consolidated other , net , decreased $ 702 , or 204.7 % , to expense of $ 359 during the year ended december 31 , 2018 , compared to consolidated other , net income of $ 343 during the year ended december 31 , 2017. the decrease in other , net , was primarily attributable to a decrease in remeasurement gains recognized on the company 's foreign denominated accounts receivable and accounts payable and losses related to recognition of cumulative translation adjustments due to the substantial liquidation of a foreign entity . this decrease was partially offset by gains on mark-to-market adjustments on non-hedged foreign currency contracts . 34 income taxes consolidated income tax benefit decreased $ 4,259 , or 83.7 % , to a benefit of $ 828 during the year ended december 31 , 2018 , compared to a consolidated income tax benefit of $ 5,087 during the same period in 2017. due to the tax

's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kansas city southern de méxico , s.a. de c.v. ( “ kcsm ” ) , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate , ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2016 financial overview revenues in 2016 decreased 3 % from 2015 , due to a 2 % decrease in revenue per carload/unit and carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge , partially offset by positive pricing impacts . energy revenue decreased by $ 49.6 million due to lower volumes in crude oil as a result of low crude oil spreads and increased pipeline capacity . volumes also decreased as the decline in new crude drilling operations in the u.s. has reduced the demand for frac sand . in addition , low natural gas prices and high coal inventory levels reduced the demand for utility coal in 2016. operating expenses decreased 6 % compared to 2015 , due to a $ 62.8 million mexican fuel excise tax credit recognized in 2016 , the weakening of the mexican peso against the u.s. dollar and lower fuel prices . expense reductions resulting from the weakening mexican peso and lower fuel prices largely offset the revenue reductions driven by these same macroeconomic factors . these expense reductions were partially offset by higher incentive compensation and increased depreciation expense . operating expenses as a percentage of revenues decreased to 64.9 % in 2016 from 66.8 % in 2015. in 2016 , the company invested $ 584.0 million in capital expenditures . in addition , the company purchased $ 26.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . 25 the company reported 2016 earnings of $ 4.43 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for the year ended december 31 , 2016 , compared to annual earnings of $ 4.40 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 483.5 million for 2015 . during 2016 , kcs repurchased 2,127,612 shares of common stock for $ 185.4 million at an average price of $ 87.15 per share under the $ 500.0 million share repurchase program announced in may 2015. since inception of this program , kcs has repurchased 4,261,596 shares of common stock for $ 379.6 million at an average price of $ 89.07 per share . management 's assessment of market conditions , available liquidity and other factors will determine the timing and volume of any future repurchases . on may 16 , 2016 , kcs issued $ 250.0 million principal amount of senior unsecured notes , which bear interest semiannually at a fixed annual rate of 3.125 % . the net proceeds from the offering were used to repay the outstanding commercial paper issued by kcs and for other general corporate purposes . on october 28 , 2016 , $ 250.0 million principal amount of outstanding floating rate senior notes issued by kcs and kcsm matured and were redeemed by the company at a redemption price equal to 100 % of the principal amount using available cash on hand and commercial paper . 26 results of operations year ended december 31 , 2016 , compared with the year ended december 31 , 2015 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th revenues include revenue for transportation services and fuel surcharges . story_separator_special_tag revenues decreased $ 74.5 million for the year ended december 31 , 2015 , compared to 2014 , due to an 18 % decrease in revenue per carload/unit and a 6 % decrease in carload/unit volumes . revenue per carload/unit decreased due to lower fuel surcharge , a short-term rate concession provided to a customer during the second half of 2015 and shorter average length of haul . volumes decreased as low natural gas prices reduced the demand for utility coal and the decline in new crude drilling operations in the u.s. reduced the demand for frac sand . these decreases were partially offset by increased crude oil volumes due to new business . intermodal . revenues decreased $ 14.3 million for the year ended december 31 , 2015 , compared to 2014 , due to a 3 % decrease in in carload/unit volumes and a 1 % decrease in revenue per carload/unit . lower volumes due to service-related issues in the second and third quarters of 2015 and the conversion of rail traffic to truck were partially offset by volume growth driven by trans-pacific imports via the port of lazaro cardenas . revenue per carload/unit decreased due to lower fuel surcharge . automotive . revenues decreased $ 19.7 million for the year ended december 31 , 2015 , compared to 2014 , due to an 8 % decrease in revenue per carload/unit . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar , partially offset by positive pricing impacts . volumes were flat for the year ended december 31 , 2015 , compared to 2014 , due to service-related issues in the second and third quarters of 2015 . 34 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 153.0 million for the year ended december 31 , 2015 , compared to 2014 , due to the weakening of the mexican peso against the u.s. dollar and lower u.s. fuel prices , partially offset by increased depreciation expense . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 77.0 million for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.15.8 for 2015 compared to ps.13.3 for 2014. lower u.s. fuel prices reduced 2015 expenses by $ 71.5 million . replace_table_token_10_th compensation and benefits . compensation and benefits decreased $ 32.3 million for the year ended december 31 , 2015 , compared to 2014 , due to the weakening of the mexican peso of approximately $ 23.0 million , lower incentive compensation of $ 22.4 million and a reduction in post-employment liabilities due to changes in discount rates . these decreases were partially offset by annual salary rate increases and a 3 % growth in headcount . purchased services . purchased services expense decreased $ 22.2 million for the year ended december 31 , 2015 , compared to 2014 , due to renegotiation of maintenance contracts during 2015 , the weakening of the mexican peso and lower track maintenance and corporate expenses . fuel . fuel expense decreased $ 109.0 million for the year ended december 31 , 2015 , compared to 2014 , due to lower u.s. diesel fuel prices of $ 71.5 million and the weakening of the mexican peso of approximately $ 37.0 million . these decreases were partially offset by approximately $ 12.0 million increase due to mexican diesel prices . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 2.32 in 2015 , compared to $ 3.03 in 2014. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . equipment costs . equipment costs increased $ 0.2 million for the year ended december 31 , 2015 , compared to 2014 , primarily due to higher car hire expense due to longer cycle times , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 26.5 million for the year ended december 31 , 2015 , compared to 2014 , due to a larger asset base , including the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . materials and other . materials and other increased $ 12.5 million for the year ended december 31 , 2015 , compared to 2014 , due to an increase in materials and supplies , derailment expense , property taxes , environmental expense and the settlement of a litigation dispute during 2015. these increases were partially offset by the weakening of the mexican peso , lower employee expenses and a reduction in personal injury expense recognized during 2015 as a result of changes in estimates due to favorable claim experience lease termination costs . lease termination costs were $ 9.6 million and $ 38.3 million for the years ended december 31 , 2015 and 2014 , respectively , due to the early termination of certain operating leases and the related purchase of the equipment . 35 non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 2.8 million for the year ended december 31 , 2015 , compared to 2014 . equity in net earnings from the operations of ferrocarril y terminal del valle de mexico , s.a. de c.v. decreased due to higher operating expenses . in addition , equity in net earnings from the operations of panama canal railway company decreased due to lower container volumes . interest expense . interest expense increased $ 9.1 million for the year ended december 31 , 2015 , compared to 2014 , due to higher average interest rates and average debt balances as a result of the company 's issuance of debt

debt retirement and exchange costs were $ 7.6 million for the year ended december 31 , 2015 , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . for the year ended december 31 , 2014 , debt retirement and exchange costs were $ 6.6 million related to the call premiums , original issue discounts and write-off of unamortized debt issuance costs associated with the company 's various debt redemption activities . foreign exchange loss . for the years ended december 31 , 2015 and 2014 , foreign exchange loss was $ 56.6 million and $ 35.5 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2015 and 2014 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 9.4 million and $ 7.6 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2015 and 2014 , foreign exchange loss on foreign currency derivative contracts was $ 47.2 million and $ 27.9 million , respectively . other expense , net . other expense , net , increased $ 1.2 million for the year ended december 31 , 2015 , compared to 2014 , due to lower miscellaneous income . income tax expense . income tax expense decreased $ 21.5 million for the year ended december 31 , 2015 , compared to 2014 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.8 % and 29.3 % for the years ended december 31 , 2015 and 2014 , respectively .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```debt retirement and exchange costs were $ 7.6 million for the year ended december 31 , 2015 , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . for the year ended december 31 , 2014 , debt retirement and exchange costs were $ 6.6 million related to the call premiums , original issue discounts and write-off of unamortized debt issuance costs associated with the company 's various debt redemption activities . foreign exchange loss . for the years ended december 31 , 2015 and 2014 , foreign exchange loss was $ 56.6 million and $ 35.5 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2015 and 2014 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 9.4 million and $ 7.6 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2015 and 2014 , foreign exchange loss on foreign currency derivative contracts was $ 47.2 million and $ 27.9 million , respectively . other expense , net . other expense , net , increased $ 1.2 million for the year ended december 31 , 2015 , compared to 2014 , due to lower miscellaneous income . income tax expense . income tax expense decreased $ 21.5 million for the year ended december 31 , 2015 , compared to 2014 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.8 % and 29.3 % for the years ended december 31 , 2015 and 2014 , respectively . ``` Suspicious Activity Report : 's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kansas city southern de méxico , s.a. de c.v. ( “ kcsm ” ) , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate , ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2016 financial overview revenues in 2016 decreased 3 % from 2015 , due to a 2 % decrease in revenue per carload/unit and carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge , partially offset by positive pricing impacts . energy revenue decreased by $ 49.6 million due to lower volumes in crude oil as a result of low crude oil spreads and increased pipeline capacity . volumes also decreased as the decline in new crude drilling operations in the u.s. has reduced the demand for frac sand . in addition , low natural gas prices and high coal inventory levels reduced the demand for utility coal in 2016. operating expenses decreased 6 % compared to 2015 , due to a $ 62.8 million mexican fuel excise tax credit recognized in 2016 , the weakening of the mexican peso against the u.s. dollar and lower fuel prices . expense reductions resulting from the weakening mexican peso and lower fuel prices largely offset the revenue reductions driven by these same macroeconomic factors . these expense reductions were partially offset by higher incentive compensation and increased depreciation expense . operating expenses as a percentage of revenues decreased to 64.9 % in 2016 from 66.8 % in 2015. in 2016 , the company invested $ 584.0 million in capital expenditures . in addition , the company purchased $ 26.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . 25 the company reported 2016 earnings of $ 4.43 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for the year ended december 31 , 2016 , compared to annual earnings of $ 4.40 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 483.5 million for 2015 . during 2016 , kcs repurchased 2,127,612 shares of common stock for $ 185.4 million at an average price of $ 87.15 per share under the $ 500.0 million share repurchase program announced in may 2015. since inception of this program , kcs has repurchased 4,261,596 shares of common stock for $ 379.6 million at an average price of $ 89.07 per share . management 's assessment of market conditions , available liquidity and other factors will determine the timing and volume of any future repurchases . on may 16 , 2016 , kcs issued $ 250.0 million principal amount of senior unsecured notes , which bear interest semiannually at a fixed annual rate of 3.125 % . the net proceeds from the offering were used to repay the outstanding commercial paper issued by kcs and for other general corporate purposes . on october 28 , 2016 , $ 250.0 million principal amount of outstanding floating rate senior notes issued by kcs and kcsm matured and were redeemed by the company at a redemption price equal to 100 % of the principal amount using available cash on hand and commercial paper . 26 results of operations year ended december 31 , 2016 , compared with the year ended december 31 , 2015 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th revenues include revenue for transportation services and fuel surcharges . story_separator_special_tag revenues decreased $ 74.5 million for the year ended december 31 , 2015 , compared to 2014 , due to an 18 % decrease in revenue per carload/unit and a 6 % decrease in carload/unit volumes . revenue per carload/unit decreased due to lower fuel surcharge , a short-term rate concession provided to a customer during the second half of 2015 and shorter average length of haul . volumes decreased as low natural gas prices reduced the demand for utility coal and the decline in new crude drilling operations in the u.s. reduced the demand for frac sand . these decreases were partially offset by increased crude oil volumes due to new business . intermodal . revenues decreased $ 14.3 million for the year ended december 31 , 2015 , compared to 2014 , due to a 3 % decrease in in carload/unit volumes and a 1 % decrease in revenue per carload/unit . lower volumes due to service-related issues in the second and third quarters of 2015 and the conversion of rail traffic to truck were partially offset by volume growth driven by trans-pacific imports via the port of lazaro cardenas . revenue per carload/unit decreased due to lower fuel surcharge . automotive . revenues decreased $ 19.7 million for the year ended december 31 , 2015 , compared to 2014 , due to an 8 % decrease in revenue per carload/unit . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar , partially offset by positive pricing impacts . volumes were flat for the year ended december 31 , 2015 , compared to 2014 , due to service-related issues in the second and third quarters of 2015 . 34 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 153.0 million for the year ended december 31 , 2015 , compared to 2014 , due to the weakening of the mexican peso against the u.s. dollar and lower u.s. fuel prices , partially offset by increased depreciation expense . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 77.0 million for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.15.8 for 2015 compared to ps.13.3 for 2014. lower u.s. fuel prices reduced 2015 expenses by $ 71.5 million . replace_table_token_10_th compensation and benefits . compensation and benefits decreased $ 32.3 million for the year ended december 31 , 2015 , compared to 2014 , due to the weakening of the mexican peso of approximately $ 23.0 million , lower incentive compensation of $ 22.4 million and a reduction in post-employment liabilities due to changes in discount rates . these decreases were partially offset by annual salary rate increases and a 3 % growth in headcount . purchased services . purchased services expense decreased $ 22.2 million for the year ended december 31 , 2015 , compared to 2014 , due to renegotiation of maintenance contracts during 2015 , the weakening of the mexican peso and lower track maintenance and corporate expenses . fuel . fuel expense decreased $ 109.0 million for the year ended december 31 , 2015 , compared to 2014 , due to lower u.s. diesel fuel prices of $ 71.5 million and the weakening of the mexican peso of approximately $ 37.0 million . these decreases were partially offset by approximately $ 12.0 million increase due to mexican diesel prices . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 2.32 in 2015 , compared to $ 3.03 in 2014. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . equipment costs . equipment costs increased $ 0.2 million for the year ended december 31 , 2015 , compared to 2014 , primarily due to higher car hire expense due to longer cycle times , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 26.5 million for the year ended december 31 , 2015 , compared to 2014 , due to a larger asset base , including the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . materials and other . materials and other increased $ 12.5 million for the year ended december 31 , 2015 , compared to 2014 , due to an increase in materials and supplies , derailment expense , property taxes , environmental expense and the settlement of a litigation dispute during 2015. these increases were partially offset by the weakening of the mexican peso , lower employee expenses and a reduction in personal injury expense recognized during 2015 as a result of changes in estimates due to favorable claim experience lease termination costs . lease termination costs were $ 9.6 million and $ 38.3 million for the years ended december 31 , 2015 and 2014 , respectively , due to the early termination of certain operating leases and the related purchase of the equipment . 35 non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 2.8 million for the year ended december 31 , 2015 , compared to 2014 . equity in net earnings from the operations of ferrocarril y terminal del valle de mexico , s.a. de c.v. decreased due to higher operating expenses . in addition , equity in net earnings from the operations of panama canal railway company decreased due to lower container volumes . interest expense . interest expense increased $ 9.1 million for the year ended december 31 , 2015 , compared to 2014 , due to higher average interest rates and average debt balances as a result of the company 's issuance of debt

these tcap agents can be administered with a variety of immuno-modulators to enhance a patient 's immune response through ligand specific t-cell activation . unlike many other “patient specific” or autologous immunotherapy approaches , our drugs are fully-allogenic , “off-the-shelf” products which means that we can administer immediately without the extraction of blood or tumor tissue from each patient or the creation of an individualized treatment based on these patient materials . our tcap product candidates from our impact ® and compact ™ platforms are produced from allogeneic cell lines expressing tumor-specific proteins common among cancers . because each patient receives the same treatment , we believe that our immunotherapy approach offers superior speed to initiation , logistical , manufacturing and importantly , cost benefits , compared to “personalized” precision medicine approaches . our impact ® platform is an allogenic cell-based , t-cell-stimulating platform that functions as an immune activator to stimulate and expand t-cells . the key component of this innovative immunotherapy platform is the dual functionality of the heat shock protein , gp96 . as a molecular chaperone , gp96 is typically found within the cell 's endoplasmic reticulum and facilitates the folding of newly synthesized proteins for functionalized tasks . but when a cell abnormally dies through necrosis or infection , gp96 is naturally released into the surrounding microenvironment . at this moment , gp96 becomes a danger associated molecular protein or “damp” , a molecular warning signal for localized innate activation of the immune system . in this context gp96 serves as a potent adjuvant , or immune stimulator , via toll-like receptor 4/2 ( tlr4 and tlr2 ) signaling which serves to activate apcs to specialized dendritic cells that upregulate t-cell costimulatory ligands , mhc and immune activating cytokine . it is among the most powerful adjuvants found in the body and uniquely shows exclusive specificity to cd8+ “killer” t-cells through cross-presentation of the gp96-chaperoned tumor associated peptide antigens directly to mhc class i molecules for direct activation and expansion of cd8+ t-cells . thus , gp96 plays a critical role in the mechanism of action for heat 's t-cell activating platform immuno-therapies ; mimicking necrotic cell death and activating a powerful , tumor antigen-specific t-cell immune response to attack the patient 's cancer cells . compact ™ , our second tcap , is a dual-acting immunotherapy designed to deliver antigen driven t-cell activation and specific co-stimulation in a single product . compact ™ helps unlock the body 's natural defenses and builds upon impact ® by providing specific co-stimulation to enhance t-cell activation and expansion . it has the potential to simplify combination immunotherapy development for oncology patients , as it is designed to deliver the gp96 heat shock protein and a t-cell co-stimulatory fusion protein ( ox40l ) as a single therapeutic , without the need for multiple , independent biologic products . the potential advantages of compact ™ include : ( a ) enhanced activation of antigen-specific cd8+ t-cells ; ( b ) serving as a booster to expand the number of antigen-specific cd8+ t-cells compared to ox40l alone ; ( c ) stimulation of t-cell memory function to remain effective in the body after treatment , even if the cancer comes back ; ( d ) demonstration of less toxicity , as the source of cancer associated antigens and co-stimulator are supplied at the same time locally and the draining lymph nodes , which drive targeted , cancer specific immunity towards the tumor rather than throughout the body ; and ( e ) a potential paradigm shift that is designed to simplify combination cancer immunotherapy versus systemic co-stimulation with conventional monoclonal antibodies ( mabs ) . 46 pelican , our subsidiary , is a biotechnology company focused on the development of biologic based therapies designed to activate the immune system , including the monoclonal antibody , ptx-35 . ptx-35 , which is currently focused on preclinical ind enabling activities , is pelican 's lead product candidate targeting the t-cell co-stimulator , tnfrsf25 . it is designed to harness the body 's natural antigen specific immune activation and tolerance mechanisms to reprogram immunity and provide a long-term , durable clinical effect . tnfrsf25 agonism has been shown to provide highly selective and potent stimulation of antigen experienced ‘memory ' cd8+ cytotoxic t-cells , which are the class of long-lived t-cells capable of eliminating tumor cells in patients . due to the preferential specificity of ptx-35 to antigen experienced cd8+ t-cells , this agent represents a promising candidate as a t-cell co-stimulator in cancer patients . when combined in preclinical studies with impact ® and compact ™ platform immunotherapies , ptx-35 has been shown to enhance antigen specific t-cell activation to eliminate tumor cells . pelican is also developing other biologics that target tnfrsf25 for various immunotherapy approaches , including ptx-45 , a human tl1a-lg fusion protein designed as a shorter half-life agonist of tnfrsf25 . we continue to enroll patients in our hs-110 combination immunotherapy trial , preparing for ind submission of hs-130 ( compact ™ ) , advancing pre-clinical development of pelican assets in anticipation of an ind submission , providing general and administrative support for these operations and protecting our intellectual property . we currently do not have any products approved for sale and we have not generated any significant revenue since our inception and no revenue from product sales . we expect to continue to incur significant expenses and to incur increasing operating losses for at least the next several years . story_separator_special_tag 2018-08 should assist entities in ( 1 ) evaluating whether transactions should be accounted for as contributions ( nonreciprocal transaction ) within the scope of topic 958 , not-for-profit entities , or as exchange ( reciprocal ) transactions subject to other guidance and ( 2 ) determining whether a contribution is conditional . this amendment applies to all entities that make or receive grants or contributions . this asu is effective for public companies serving as a resource recipient for fiscal years beginning after june 15 , 2018 , including interim periods within that fiscal year . we do not anticipate asu 2018-08 to have a material impact to our consolidated financial statements . 50 in january 2017 , the fasb issued asu no . 2017-01 , business combinations ( topic 805 ) to clarify the definition of a business , which is fundamental in the determination of whether transactions should be accounted for as acquisitions ( or disposals ) of assets or businesses combinations . the updated guidance requires that in order to be considered a business the integrated set of assets and activities acquired must include , at a minimum , an input and process that contribute to the ability to create output . if substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar assets , it is not considered a business , and therefore would not be considered a business combination . the update is effective for fiscal years beginning after december 15 , 2018 , and interim periods with fiscal years beginning after december 15 , 2019 , with early adoption permitted . we do not anticipate asu 2017-01 to have a material the impact to our consolidated financial statements . in august 2016 , the fasb issued asu 2016-18 , statement of cash flows ( topic 230 ) —restricted cash . asu 2016-18 requires the statement of cash flows to be a reconciliation between beginning and ending cash balances inclusive of restricted cash balances . asu 2016-18 is effective for fiscal years beginning after december 15 , 2017 and is to be applied using a retrospective transition method to each period presented . we adopted this asu for the year ending december 31 , 2018. the adoption of this standard resulted in the removal of changes in restricted cash from the consolidated statements of cash flows of $ 2,292 and $ 101,176 for the years ended december 31 , 2018 and 2017 , respectively and inclusion of these amounts as part of the starting and ending cash balances . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , requiring lessees to recognize for all leases ( with the exception of short-term leases ) at the commencement date : ( 1 ) a lease liability , which is a lessee 's obligation to make lease payments arising from a lease , measured on a discounted basis , and ( 2 ) a right-of-use ( “rou” ) asset , which is an asset that represents the lessee 's right to use , or control the use of , a specified asset for the lease term . the update is effective for fiscal years beginning after december 15 , 2019 , and interim periods within fiscal years beginning after december 15 , 2020. we currently anticipate that upon adoption of the new standard , rou assets and lease liabilities will be recognized in amounts that will be immaterial to the consolidated balance sheets . in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( asu 2014-09 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the asu will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective . in july 2015 , the fasb voted to defer the effective date of the new standard until fiscal years beginning after december 15 , 2017 with early application permitted for fiscal years beginning after december 15 , 2016. grant revenue is recognized as work is performed and qualifying costs are incurred . we adopted the modified retrospective method of adoption in early 2018 and there was no material effect on the timing and measurement of revenue . results of operations year ended december 31 , 2018 and 2017 revenues the cprit grant is subject to customary cprit funding conditions including a matching funds requirement where pelican will match $ 0.50 for every $ 1.00 from cprit . consequently , pelican is required to raise $ 7.6 million in matching funds over the three year project . as of december 31 , 2018 , cprit has provided $ 8.3 million of the total $ 15.2 million grant . the remaining $ 6.9 million is expected to become available in the third cprit fiscal year ( june 2018 through may 2019 ) . as of december 31 , 2018 , we have provided approximately $ 5.2 million in funding of which $ 4.1 million was used to satisfy pelican 's matching fund obligation under the first two years of the cprit grant and we have approximately $ 3.5 million remaining to provide for the third cprit fiscal year . upon commercialization of the product , the terms of the grant contract require pelican to pay tiered royalties in the low to mid-single digit percentages . such royalties reduce to less than one percent after a mid-single-digit multiple of the grant funds have been paid to cprit in royalties . we recognized grant revenue of approximately $ 5.8 million for the year ended december 31 , 2018 for qualified expenditures under the grant . we recognized $ 1.5 million grant revenue related to cprit during the year ended december 31 , 2017. as of december 31 , 2018 , we had

liquidity and capital resources sources of liquidity since our inception in june 2008 , we have incurred significant losses and we have financed our operations with net proceeds from the private placement of our preferred stock , common stock and debt . more recently , we have primarily financed our operations with net proceeds from the public offering of our common stock and to a lesser extent , the proceeds from the exercise of warrants . during may 2018 , we closed a public offering of shares of our common stock and warrants to purchase shares of our common stock in which we received net proceeds of approximately $ 18.8 million and after the closing of the offering , an additional $ 4.8 million from the exercise of 3,054,667 warrants issued in this offering . during november 2018 , we closed a public offering of shares of our common stock and warrants to purchase shares of our common stock in which we received net proceeds of approximately $ 12.7 million . in addition , from august 2016 through july 2017 we received an aggregate of $ 9.3 million of net proceeds through our at market issuance sales agreement ( the “fbr sales agreement” ) with b. riley fbr , inc. formerly known as fbr capital markets & co. on january 18 , 2018 , we entered into the h.c. wainwright sales agreement that replaced the fbr sales agreement and which has subsequently been terminated . to date , we received net proceeds of approximately $ 3.8 million from the sale of shares of our common stock through the h.c. wainwright sales agreement . as of december 31 , 2018 , we had an accumulated deficit of $ 84.6 million . we had net losses of $ 16.6 million and $ 12.4 million for the years ended december 31 , 2018 and 2017 , respectively . we expect to incur significant expenses and continued losses from operations 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 sources of liquidity since our inception in june 2008 , we have incurred significant losses and we have financed our operations with net proceeds from the private placement of our preferred stock , common stock and debt . more recently , we have primarily financed our operations with net proceeds from the public offering of our common stock and to a lesser extent , the proceeds from the exercise of warrants . during may 2018 , we closed a public offering of shares of our common stock and warrants to purchase shares of our common stock in which we received net proceeds of approximately $ 18.8 million and after the closing of the offering , an additional $ 4.8 million from the exercise of 3,054,667 warrants issued in this offering . during november 2018 , we closed a public offering of shares of our common stock and warrants to purchase shares of our common stock in which we received net proceeds of approximately $ 12.7 million . in addition , from august 2016 through july 2017 we received an aggregate of $ 9.3 million of net proceeds through our at market issuance sales agreement ( the “fbr sales agreement” ) with b. riley fbr , inc. formerly known as fbr capital markets & co. on january 18 , 2018 , we entered into the h.c. wainwright sales agreement that replaced the fbr sales agreement and which has subsequently been terminated . to date , we received net proceeds of approximately $ 3.8 million from the sale of shares of our common stock through the h.c. wainwright sales agreement . as of december 31 , 2018 , we had an accumulated deficit of $ 84.6 million . we had net losses of $ 16.6 million and $ 12.4 million for the years ended december 31 , 2018 and 2017 , respectively . we expect to incur significant expenses and continued losses from operations for the foreseeable future . ``` Suspicious Activity Report : these tcap agents can be administered with a variety of immuno-modulators to enhance a patient 's immune response through ligand specific t-cell activation . unlike many other “patient specific” or autologous immunotherapy approaches , our drugs are fully-allogenic , “off-the-shelf” products which means that we can administer immediately without the extraction of blood or tumor tissue from each patient or the creation of an individualized treatment based on these patient materials . our tcap product candidates from our impact ® and compact ™ platforms are produced from allogeneic cell lines expressing tumor-specific proteins common among cancers . because each patient receives the same treatment , we believe that our immunotherapy approach offers superior speed to initiation , logistical , manufacturing and importantly , cost benefits , compared to “personalized” precision medicine approaches . our impact ® platform is an allogenic cell-based , t-cell-stimulating platform that functions as an immune activator to stimulate and expand t-cells . the key component of this innovative immunotherapy platform is the dual functionality of the heat shock protein , gp96 . as a molecular chaperone , gp96 is typically found within the cell 's endoplasmic reticulum and facilitates the folding of newly synthesized proteins for functionalized tasks . but when a cell abnormally dies through necrosis or infection , gp96 is naturally released into the surrounding microenvironment . at this moment , gp96 becomes a danger associated molecular protein or “damp” , a molecular warning signal for localized innate activation of the immune system . in this context gp96 serves as a potent adjuvant , or immune stimulator , via toll-like receptor 4/2 ( tlr4 and tlr2 ) signaling which serves to activate apcs to specialized dendritic cells that upregulate t-cell costimulatory ligands , mhc and immune activating cytokine . it is among the most powerful adjuvants found in the body and uniquely shows exclusive specificity to cd8+ “killer” t-cells through cross-presentation of the gp96-chaperoned tumor associated peptide antigens directly to mhc class i molecules for direct activation and expansion of cd8+ t-cells . thus , gp96 plays a critical role in the mechanism of action for heat 's t-cell activating platform immuno-therapies ; mimicking necrotic cell death and activating a powerful , tumor antigen-specific t-cell immune response to attack the patient 's cancer cells . compact ™ , our second tcap , is a dual-acting immunotherapy designed to deliver antigen driven t-cell activation and specific co-stimulation in a single product . compact ™ helps unlock the body 's natural defenses and builds upon impact ® by providing specific co-stimulation to enhance t-cell activation and expansion . it has the potential to simplify combination immunotherapy development for oncology patients , as it is designed to deliver the gp96 heat shock protein and a t-cell co-stimulatory fusion protein ( ox40l ) as a single therapeutic , without the need for multiple , independent biologic products . the potential advantages of compact ™ include : ( a ) enhanced activation of antigen-specific cd8+ t-cells ; ( b ) serving as a booster to expand the number of antigen-specific cd8+ t-cells compared to ox40l alone ; ( c ) stimulation of t-cell memory function to remain effective in the body after treatment , even if the cancer comes back ; ( d ) demonstration of less toxicity , as the source of cancer associated antigens and co-stimulator are supplied at the same time locally and the draining lymph nodes , which drive targeted , cancer specific immunity towards the tumor rather than throughout the body ; and ( e ) a potential paradigm shift that is designed to simplify combination cancer immunotherapy versus systemic co-stimulation with conventional monoclonal antibodies ( mabs ) . 46 pelican , our subsidiary , is a biotechnology company focused on the development of biologic based therapies designed to activate the immune system , including the monoclonal antibody , ptx-35 . ptx-35 , which is currently focused on preclinical ind enabling activities , is pelican 's lead product candidate targeting the t-cell co-stimulator , tnfrsf25 . it is designed to harness the body 's natural antigen specific immune activation and tolerance mechanisms to reprogram immunity and provide a long-term , durable clinical effect . tnfrsf25 agonism has been shown to provide highly selective and potent stimulation of antigen experienced ‘memory ' cd8+ cytotoxic t-cells , which are the class of long-lived t-cells capable of eliminating tumor cells in patients . due to the preferential specificity of ptx-35 to antigen experienced cd8+ t-cells , this agent represents a promising candidate as a t-cell co-stimulator in cancer patients . when combined in preclinical studies with impact ® and compact ™ platform immunotherapies , ptx-35 has been shown to enhance antigen specific t-cell activation to eliminate tumor cells . pelican is also developing other biologics that target tnfrsf25 for various immunotherapy approaches , including ptx-45 , a human tl1a-lg fusion protein designed as a shorter half-life agonist of tnfrsf25 . we continue to enroll patients in our hs-110 combination immunotherapy trial , preparing for ind submission of hs-130 ( compact ™ ) , advancing pre-clinical development of pelican assets in anticipation of an ind submission , providing general and administrative support for these operations and protecting our intellectual property . we currently do not have any products approved for sale and we have not generated any significant revenue since our inception and no revenue from product sales . we expect to continue to incur significant expenses and to incur increasing operating losses for at least the next several years . story_separator_special_tag 2018-08 should assist entities in ( 1 ) evaluating whether transactions should be accounted for as contributions ( nonreciprocal transaction ) within the scope of topic 958 , not-for-profit entities , or as exchange ( reciprocal ) transactions subject to other guidance and ( 2 ) determining whether a contribution is conditional . this amendment applies to all entities that make or receive grants or contributions . this asu is effective for public companies serving as a resource recipient for fiscal years beginning after june 15 , 2018 , including interim periods within that fiscal year . we do not anticipate asu 2018-08 to have a material impact to our consolidated financial statements . 50 in january 2017 , the fasb issued asu no . 2017-01 , business combinations ( topic 805 ) to clarify the definition of a business , which is fundamental in the determination of whether transactions should be accounted for as acquisitions ( or disposals ) of assets or businesses combinations . the updated guidance requires that in order to be considered a business the integrated set of assets and activities acquired must include , at a minimum , an input and process that contribute to the ability to create output . if substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar assets , it is not considered a business , and therefore would not be considered a business combination . the update is effective for fiscal years beginning after december 15 , 2018 , and interim periods with fiscal years beginning after december 15 , 2019 , with early adoption permitted . we do not anticipate asu 2017-01 to have a material the impact to our consolidated financial statements . in august 2016 , the fasb issued asu 2016-18 , statement of cash flows ( topic 230 ) —restricted cash . asu 2016-18 requires the statement of cash flows to be a reconciliation between beginning and ending cash balances inclusive of restricted cash balances . asu 2016-18 is effective for fiscal years beginning after december 15 , 2017 and is to be applied using a retrospective transition method to each period presented . we adopted this asu for the year ending december 31 , 2018. the adoption of this standard resulted in the removal of changes in restricted cash from the consolidated statements of cash flows of $ 2,292 and $ 101,176 for the years ended december 31 , 2018 and 2017 , respectively and inclusion of these amounts as part of the starting and ending cash balances . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , requiring lessees to recognize for all leases ( with the exception of short-term leases ) at the commencement date : ( 1 ) a lease liability , which is a lessee 's obligation to make lease payments arising from a lease , measured on a discounted basis , and ( 2 ) a right-of-use ( “rou” ) asset , which is an asset that represents the lessee 's right to use , or control the use of , a specified asset for the lease term . the update is effective for fiscal years beginning after december 15 , 2019 , and interim periods within fiscal years beginning after december 15 , 2020. we currently anticipate that upon adoption of the new standard , rou assets and lease liabilities will be recognized in amounts that will be immaterial to the consolidated balance sheets . in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( asu 2014-09 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the asu will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective . in july 2015 , the fasb voted to defer the effective date of the new standard until fiscal years beginning after december 15 , 2017 with early application permitted for fiscal years beginning after december 15 , 2016. grant revenue is recognized as work is performed and qualifying costs are incurred . we adopted the modified retrospective method of adoption in early 2018 and there was no material effect on the timing and measurement of revenue . results of operations year ended december 31 , 2018 and 2017 revenues the cprit grant is subject to customary cprit funding conditions including a matching funds requirement where pelican will match $ 0.50 for every $ 1.00 from cprit . consequently , pelican is required to raise $ 7.6 million in matching funds over the three year project . as of december 31 , 2018 , cprit has provided $ 8.3 million of the total $ 15.2 million grant . the remaining $ 6.9 million is expected to become available in the third cprit fiscal year ( june 2018 through may 2019 ) . as of december 31 , 2018 , we have provided approximately $ 5.2 million in funding of which $ 4.1 million was used to satisfy pelican 's matching fund obligation under the first two years of the cprit grant and we have approximately $ 3.5 million remaining to provide for the third cprit fiscal year . upon commercialization of the product , the terms of the grant contract require pelican to pay tiered royalties in the low to mid-single digit percentages . such royalties reduce to less than one percent after a mid-single-digit multiple of the grant funds have been paid to cprit in royalties . we recognized grant revenue of approximately $ 5.8 million for the year ended december 31 , 2018 for qualified expenditures under the grant . we recognized $ 1.5 million grant revenue related to cprit during the year ended december 31 , 2017. as of december 31 , 2018 , we had

accordingly , actual results could differ materially from those contemplated by any forward-looking statement . all subsequent written and oral forward-looking statements concerning the company or other matters attributable to the company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above . you are cautioned not to place undue reliance on these forward-looking statements , which speak only to the date they are made . the company is under no obligation ( and expressly disclaims any such obligation ) to update or revise any forward-looking statement that may be made from time to time , whether as a result of new information , future developments or otherwise . please review “ part i , item 1a—risk factors ” in this annual report for a discussion of the factors , risks and uncertainties that could affect our future results . 35 our fiscal year consists of 52 or 53 weeks , ending on the friday closest to september 30. for clarity of presentation , we present all periods as if the year ended on september 30. we refer to the fiscal year ended september 30 , 2018 as “ fiscal 2018 ” and the fiscal year ended september 30 , 2019 as “ fiscal 2019 . ” overview we are a leading fully integrated firm positioned to design , build , finance and operate infrastructure assets for governments , businesses and organizations throughout the world . we provide planning , consulting , architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation , facilities , environmental , energy , water and government markets . we also provide construction services , including building construction and energy , infrastructure and industrial construction , primarily in the americas . in addition , we provide program and facilities management and maintenance , training , logistics , consulting , technical assistance , and systems integration and information technology services , primarily for agencies of the u.s. government and also for national governments around the world . our business focuses primarily on providing fee-based planning , consulting , architectural and engineering design services and , therefore , our business is labor intensive . we primarily derive income from our ability to generate revenue and collect cash from our clients through the billing of our employees ' time spent on client projects and our ability to manage our costs . aecom capital primarily derives its income from real estate development sales and management fees . we report our business through four segments : design and consulting services ( dcs ) , construction services ( cs ) , management services ( ms ) , and aecom capital ( acap ) . such segments are organized by the types of services provided , the differing specialized needs of the respective clients , and how we manage the business . we have aggregated various operating segments into our reportable segments based on their similar characteristics , including similar long-term financial performance , the nature of services provided , internal processes for delivering those services , and types of customers . our dcs segment delivers planning , consulting , architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation , facilities , environmental , energy , water and government . dcs revenue is primarily derived from fees from services that we provide , as opposed to pass-through costs from subcontractors . our cs segment provides construction services , including building construction and energy , infrastructure and industrial construction , primarily in the americas . cs revenue typically includes a significant amount of pass-through costs from subcontractors . our ms segment provides program and facilities management and maintenance , training , logistics , consulting , technical assistance , and systems integration and information technology services , primarily for agencies of the u.s. government and also for national governments around the world . ms revenue typically includes a significant amount of pass-through costs from subcontractors . our acap segment primarily invests in real estate projects . acap typically partners with investors and experienced developers as co-general partners . in addition , acap may , but is not required to , enter into contracts with our other aecom affiliates to provide design , engineering , construction management , development and operations and maintenance services for acap funded projects . our revenue is dependent on our ability to attract and retain qualified and productive employees , identify business opportunities , integrate and maximize the value of our recent acquisitions , allocate our labor resources to profitable and high growth markets , secure new contracts and renew existing client agreements . demand for our services is cyclical and may be vulnerable to sudden economic downturns and reductions in government and private industry spending , which may result in clients delaying , curtailing or canceling proposed and existing projects . moreover , as a professional services company , maintaining the high quality of the work generated by our employees is integral to our revenue generation and profitability . 36 our costs consist primarily of the compensation we pay to our employees , including salaries , fringe benefits , the costs of hiring subcontractors , other project-related expenses and sales , general and administrative costs . in december 2015 , the federal legislation referred to as the fixing america 's surface transportation act ( fast act ) was authorized . the fast act is a five-year federal program expected to provide infrastructure spending on roads , bridges , and public transit and rail systems . we expect that the passage of the fast act will continue to positively impact our transportation services business . the u.s. federal government has proposed significant legislative and executive infrastructure initiatives that , if enacted , could have a positive impact to our infrastructure business . story_separator_special_tag during the impairment test , we estimate the fair value of the reporting unit using income and market approaches , and compare that amount to the carrying value of that reporting unit . in the event the fair value of the reporting unit is determined to be less than the carrying value , goodwill is impaired , and an impairment loss is recognized equal to the excess , limited to the total amount of goodwill allocated to the reporting unit . during the fourth quarter , we conduct our annual goodwill impairment test . the impairment evaluation process includes , among other things , making assumptions about variables such as revenue growth rates , profitability , discount rates , and industry market multiples , which are subject to a high degree of judgment . material assumptions used in the impairment analysis included the weighted average cost of capital ( wacc ) percent and terminal growth rates . for example , as of september 30 , 2019 , a 1 % increase in the wacc rate represents a $ 900 million decrease to the fair value of our reporting units . as of september 30 , 2019 , a 1 % decrease in the terminal growth rate represents a $ 500 million decrease to the fair value of our reporting units . pension benefit obligations a number of assumptions are necessary to determine our pension liabilities and net periodic costs . these liabilities and net periodic costs are sensitive to changes in those assumptions . the assumptions include discount rates , long-term rates of return on plan assets and inflation levels limited to the united kingdom and are generally determined based on the current economic environment in each host country at the end of each respective annual reporting period . we evaluate the funded status of each of our retirement plans using these current assumptions and determine the appropriate funding level considering applicable regulatory requirements , tax deductibility , reporting considerations and other factors . based upon current assumptions , we expect to contribute $ 26.6 million to our international plans in fiscal 2020. our required minimum contributions for our u.s. qualified plans are not significant . in addition , we may make additional discretionary contributions . we currently expect to contribute $ 14.7 million to our u.s. plans ( including benefit payments to nonqualified plans and postretirement medical plans ) in fiscal 2020. if the discount rate was reduced by 25 basis points , plan liabilities would increase by approximately $ 83.0 million . if the discount rate and return on plan assets were reduced by 25 basis points , plan expense would decrease by approximately $ 0.4 million and increase by approximately $ 3.5 million , respectively . if inflation increased by 25 basis points , plan liabilities in the united kingdom would increase by approximately $ 40.8 million and plan expense would increase by approximately $ 2.2 million . at each measurement date , all assumptions are reviewed and adjusted as appropriate . with respect to establishing the return on assets assumption , we consider the long term capital market expectations for each asset class held as an investment by the various pension plans . in addition to expected returns for each asset class , we take into account standard deviation of returns and correlation between asset classes . this is necessary in order to generate a distribution of possible returns which reflects diversification of assets . based on this information , a distribution of possible returns is generated based on the plan 's target asset allocation . capital market expectations for determining the long term rate of return on assets are based on forward-looking assumptions which reflect a 20-year view of the capital markets . in establishing those capital market assumptions and expectations , we rely on the assistance of our actuaries and our investment consultants . we and the plan trustees review 42 whether changes to the various plans ' target asset allocations are appropriate . a change in the plans ' target asset allocations would likely result in a change in the expected return on asset assumptions . in assessing a plan 's asset allocation strategy , we and the plan trustees consider factors such as the structure of the plan 's liabilities , the plan 's funded status , and the impact of the asset allocation to the volatility of the plan 's funded status , so that the overall risk level resulting from our defined benefit plans is appropriate within our risk management strategy . between september 30 , 2018 and september 30 , 2019 , the aggregate worldwide pension deficit increased from $ 400.5 million to $ 483.9 million due to decreased discount rates . if the various plans do not experience future investment gains to reduce this shortfall , the deficit will be reduced by additional contributions . accrued professional liability costs we carry professional liability insurance policies or self-insure for our initial layer of professional liability claims under our professional liability insurance policies and for a deductible for each claim even after exceeding the self-insured retention . we accrue for our portion of the estimated ultimate liability for the estimated potential incurred losses . we establish our estimate of loss for each potential claim in consultation with legal counsel handling the specific matters and based on historic trends taking into account recent events . we also use an outside actuarial firm to assist us in estimating our future claims exposure . it is possible that our estimate of loss may be revised based on the actual or revised estimate of liability of the claims . foreign currency translation our functional currency is the u.s. dollar . results of operations for foreign entities are translated to u.s. dollars using the average exchange rates during the period . assets and liabilities for foreign entities are translated using the exchange rates in effect as of the date of the balance sheet . resulting

debt consisted of the following : ​ replace_table_token_26_th ​ the following table presents , in millions , scheduled maturities of our debt as of september 30 , 2019 : ​ replace_table_token_27_th ​ 2014 credit agreement we entered into a credit agreement ( credit agreement ) on october 17 , 2014 , which , as amended to date , consists of ( i ) a term loan a facility that includes a $ 510 million ( usd ) term loan a facility with a term expiring on march 13 , 2021 and a $ 500 million canadian dollar ( cad ) term loan a facility and a $ 250 million australian dollar ( aud ) term loan a facility , each with terms expiring on march 13 , 2023 ; ( ii ) a $ 600 million term loan b facility with a term expiring on march 13 , 2025 ; and ( iii ) a revolving credit facility in an aggregate principal amount of $ 1.35 billion with a term expiring on march 13 , 2023. some of our subsidiaries ( guarantors ) have guaranteed the obligations of the borrowers under the credit agreement . the borrowers ' obligations under the credit agreement are secured by a lien on substantially all of our assets and the guarantors ' pursuant to a security and pledge agreement ( security agreement ) . the collateral under the security agreement is subject to release upon fulfillment of conditions specified in the credit agreement and security agreement . the credit agreement contains covenants that limit our ability and the ability of some of our subsidiaries to , among other things : ( i ) create , incur , assume , or suffer to exist liens ; ( ii ) incur or guarantee indebtedness ; ( iii ) pay dividends or repurchase stock ; ( iv ) enter into transactions with affiliates ; ( v ) consummate asset sales , acquisitions or mergers ; ( vi ) enter into various types of burdensome agreements ; or ( vii ) make investments . on july 1 , 2015 , the credit agreement was amended to revise the definition of “ consolidated ebitda ” to increase the allowance for acquisition and integration expenses related to our acquisition of urs .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 consisted of the following : ​ replace_table_token_26_th ​ the following table presents , in millions , scheduled maturities of our debt as of september 30 , 2019 : ​ replace_table_token_27_th ​ 2014 credit agreement we entered into a credit agreement ( credit agreement ) on october 17 , 2014 , which , as amended to date , consists of ( i ) a term loan a facility that includes a $ 510 million ( usd ) term loan a facility with a term expiring on march 13 , 2021 and a $ 500 million canadian dollar ( cad ) term loan a facility and a $ 250 million australian dollar ( aud ) term loan a facility , each with terms expiring on march 13 , 2023 ; ( ii ) a $ 600 million term loan b facility with a term expiring on march 13 , 2025 ; and ( iii ) a revolving credit facility in an aggregate principal amount of $ 1.35 billion with a term expiring on march 13 , 2023. some of our subsidiaries ( guarantors ) have guaranteed the obligations of the borrowers under the credit agreement . the borrowers ' obligations under the credit agreement are secured by a lien on substantially all of our assets and the guarantors ' pursuant to a security and pledge agreement ( security agreement ) . the collateral under the security agreement is subject to release upon fulfillment of conditions specified in the credit agreement and security agreement . the credit agreement contains covenants that limit our ability and the ability of some of our subsidiaries to , among other things : ( i ) create , incur , assume , or suffer to exist liens ; ( ii ) incur or guarantee indebtedness ; ( iii ) pay dividends or repurchase stock ; ( iv ) enter into transactions with affiliates ; ( v ) consummate asset sales , acquisitions or mergers ; ( vi ) enter into various types of burdensome agreements ; or ( vii ) make investments . on july 1 , 2015 , the credit agreement was amended to revise the definition of “ consolidated ebitda ” to increase the allowance for acquisition and integration expenses related to our acquisition of urs . ``` Suspicious Activity Report : accordingly , actual results could differ materially from those contemplated by any forward-looking statement . all subsequent written and oral forward-looking statements concerning the company or other matters attributable to the company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above . you are cautioned not to place undue reliance on these forward-looking statements , which speak only to the date they are made . the company is under no obligation ( and expressly disclaims any such obligation ) to update or revise any forward-looking statement that may be made from time to time , whether as a result of new information , future developments or otherwise . please review “ part i , item 1a—risk factors ” in this annual report for a discussion of the factors , risks and uncertainties that could affect our future results . 35 our fiscal year consists of 52 or 53 weeks , ending on the friday closest to september 30. for clarity of presentation , we present all periods as if the year ended on september 30. we refer to the fiscal year ended september 30 , 2018 as “ fiscal 2018 ” and the fiscal year ended september 30 , 2019 as “ fiscal 2019 . ” overview we are a leading fully integrated firm positioned to design , build , finance and operate infrastructure assets for governments , businesses and organizations throughout the world . we provide planning , consulting , architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation , facilities , environmental , energy , water and government markets . we also provide construction services , including building construction and energy , infrastructure and industrial construction , primarily in the americas . in addition , we provide program and facilities management and maintenance , training , logistics , consulting , technical assistance , and systems integration and information technology services , primarily for agencies of the u.s. government and also for national governments around the world . our business focuses primarily on providing fee-based planning , consulting , architectural and engineering design services and , therefore , our business is labor intensive . we primarily derive income from our ability to generate revenue and collect cash from our clients through the billing of our employees ' time spent on client projects and our ability to manage our costs . aecom capital primarily derives its income from real estate development sales and management fees . we report our business through four segments : design and consulting services ( dcs ) , construction services ( cs ) , management services ( ms ) , and aecom capital ( acap ) . such segments are organized by the types of services provided , the differing specialized needs of the respective clients , and how we manage the business . we have aggregated various operating segments into our reportable segments based on their similar characteristics , including similar long-term financial performance , the nature of services provided , internal processes for delivering those services , and types of customers . our dcs segment delivers planning , consulting , architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation , facilities , environmental , energy , water and government . dcs revenue is primarily derived from fees from services that we provide , as opposed to pass-through costs from subcontractors . our cs segment provides construction services , including building construction and energy , infrastructure and industrial construction , primarily in the americas . cs revenue typically includes a significant amount of pass-through costs from subcontractors . our ms segment provides program and facilities management and maintenance , training , logistics , consulting , technical assistance , and systems integration and information technology services , primarily for agencies of the u.s. government and also for national governments around the world . ms revenue typically includes a significant amount of pass-through costs from subcontractors . our acap segment primarily invests in real estate projects . acap typically partners with investors and experienced developers as co-general partners . in addition , acap may , but is not required to , enter into contracts with our other aecom affiliates to provide design , engineering , construction management , development and operations and maintenance services for acap funded projects . our revenue is dependent on our ability to attract and retain qualified and productive employees , identify business opportunities , integrate and maximize the value of our recent acquisitions , allocate our labor resources to profitable and high growth markets , secure new contracts and renew existing client agreements . demand for our services is cyclical and may be vulnerable to sudden economic downturns and reductions in government and private industry spending , which may result in clients delaying , curtailing or canceling proposed and existing projects . moreover , as a professional services company , maintaining the high quality of the work generated by our employees is integral to our revenue generation and profitability . 36 our costs consist primarily of the compensation we pay to our employees , including salaries , fringe benefits , the costs of hiring subcontractors , other project-related expenses and sales , general and administrative costs . in december 2015 , the federal legislation referred to as the fixing america 's surface transportation act ( fast act ) was authorized . the fast act is a five-year federal program expected to provide infrastructure spending on roads , bridges , and public transit and rail systems . we expect that the passage of the fast act will continue to positively impact our transportation services business . the u.s. federal government has proposed significant legislative and executive infrastructure initiatives that , if enacted , could have a positive impact to our infrastructure business . story_separator_special_tag during the impairment test , we estimate the fair value of the reporting unit using income and market approaches , and compare that amount to the carrying value of that reporting unit . in the event the fair value of the reporting unit is determined to be less than the carrying value , goodwill is impaired , and an impairment loss is recognized equal to the excess , limited to the total amount of goodwill allocated to the reporting unit . during the fourth quarter , we conduct our annual goodwill impairment test . the impairment evaluation process includes , among other things , making assumptions about variables such as revenue growth rates , profitability , discount rates , and industry market multiples , which are subject to a high degree of judgment . material assumptions used in the impairment analysis included the weighted average cost of capital ( wacc ) percent and terminal growth rates . for example , as of september 30 , 2019 , a 1 % increase in the wacc rate represents a $ 900 million decrease to the fair value of our reporting units . as of september 30 , 2019 , a 1 % decrease in the terminal growth rate represents a $ 500 million decrease to the fair value of our reporting units . pension benefit obligations a number of assumptions are necessary to determine our pension liabilities and net periodic costs . these liabilities and net periodic costs are sensitive to changes in those assumptions . the assumptions include discount rates , long-term rates of return on plan assets and inflation levels limited to the united kingdom and are generally determined based on the current economic environment in each host country at the end of each respective annual reporting period . we evaluate the funded status of each of our retirement plans using these current assumptions and determine the appropriate funding level considering applicable regulatory requirements , tax deductibility , reporting considerations and other factors . based upon current assumptions , we expect to contribute $ 26.6 million to our international plans in fiscal 2020. our required minimum contributions for our u.s. qualified plans are not significant . in addition , we may make additional discretionary contributions . we currently expect to contribute $ 14.7 million to our u.s. plans ( including benefit payments to nonqualified plans and postretirement medical plans ) in fiscal 2020. if the discount rate was reduced by 25 basis points , plan liabilities would increase by approximately $ 83.0 million . if the discount rate and return on plan assets were reduced by 25 basis points , plan expense would decrease by approximately $ 0.4 million and increase by approximately $ 3.5 million , respectively . if inflation increased by 25 basis points , plan liabilities in the united kingdom would increase by approximately $ 40.8 million and plan expense would increase by approximately $ 2.2 million . at each measurement date , all assumptions are reviewed and adjusted as appropriate . with respect to establishing the return on assets assumption , we consider the long term capital market expectations for each asset class held as an investment by the various pension plans . in addition to expected returns for each asset class , we take into account standard deviation of returns and correlation between asset classes . this is necessary in order to generate a distribution of possible returns which reflects diversification of assets . based on this information , a distribution of possible returns is generated based on the plan 's target asset allocation . capital market expectations for determining the long term rate of return on assets are based on forward-looking assumptions which reflect a 20-year view of the capital markets . in establishing those capital market assumptions and expectations , we rely on the assistance of our actuaries and our investment consultants . we and the plan trustees review 42 whether changes to the various plans ' target asset allocations are appropriate . a change in the plans ' target asset allocations would likely result in a change in the expected return on asset assumptions . in assessing a plan 's asset allocation strategy , we and the plan trustees consider factors such as the structure of the plan 's liabilities , the plan 's funded status , and the impact of the asset allocation to the volatility of the plan 's funded status , so that the overall risk level resulting from our defined benefit plans is appropriate within our risk management strategy . between september 30 , 2018 and september 30 , 2019 , the aggregate worldwide pension deficit increased from $ 400.5 million to $ 483.9 million due to decreased discount rates . if the various plans do not experience future investment gains to reduce this shortfall , the deficit will be reduced by additional contributions . accrued professional liability costs we carry professional liability insurance policies or self-insure for our initial layer of professional liability claims under our professional liability insurance policies and for a deductible for each claim even after exceeding the self-insured retention . we accrue for our portion of the estimated ultimate liability for the estimated potential incurred losses . we establish our estimate of loss for each potential claim in consultation with legal counsel handling the specific matters and based on historic trends taking into account recent events . we also use an outside actuarial firm to assist us in estimating our future claims exposure . it is possible that our estimate of loss may be revised based on the actual or revised estimate of liability of the claims . foreign currency translation our functional currency is the u.s. dollar . results of operations for foreign entities are translated to u.s. dollars using the average exchange rates during the period . assets and liabilities for foreign entities are translated using the exchange rates in effect as of the date of the balance sheet . resulting

the offering was made pursuant to the company 's registration statement on form s-3 ( registration no . 333-211489 ) , which was declared effective by the u.s. securities and exchange commission on august 16 , 2017 , a base prospectus dated august 16 , 2017 and a prospectus supplement dated march 1 , 2018. critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . 69 research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense . income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to federal income taxes in the united states , as well as in various u.s. state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . 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 assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of available positive and negative evidence , that it is not more likely than not that the benefit from deferred tax assets will be realizable . in recognition of this risk , we have provided a full valuation allowance against the net deferred tax assets . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “income taxes” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 469,000 and $ 617,000 at march 31 , 2018 and 2017 , respectively . increases or decreases would not have an effect on the effective tax rate . the company files federal income tax returns in the united states , as well as various u.s. state jurisdictions . the federal and state income tax returns are generally subject to tax examinations for the period april 1 , 2016 through march 31 , 2017 , january 1 , 2016 through march 31 , 2016 , the years ended december 31 , 2015 and 2014. to the extent the company has tax attribute carryforwards , the tax years in which the attribute was generated may still be adjusted upon examination by the internal revenue service or state tax authorities to the extent utilized in a future period . in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . on december 22 , 2017 , h.r . 1 ( also , known as the tax cuts and jobs act ( the “ act ” ) ) was signed into law . among its numerous changes to the internal revenue code , the act reduces the u.s. federal corporate tax rate from 35 % to 21 % . as a result , the most significant impact on the financial statements is a reduction of approximately $ 3.2 million for the deferred tax assets related to net operating losses and stock based compensation . such reduction is offset by changes to the company 's valuation allowance . 70 stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “compensation-stock compensation.” the guidance requires that stock-based payment transactions be recognized in the financial statements based on their fair value at the grant date and recognized as compensation expense over the vesting period as services are being provided . story_separator_special_tag research and development activities primarily consist of the following : salary expense for research and development personnel was $ 212,193 for the three months ended march 31 , 2016 , compared to $ 307,058 for the three months ended march 31 , 2015 , a decrease of $ 94,865 between the comparable periods . the decrease is due to the fact that during the three months ended march 31 , 2015 , research and development personnel were awarded bonus compensation totaling $ 135,560 in connection with the merger . this decrease is offset by a new hire during the three months ended march 31 , 2016. consulting and study expenses were $ 456,551 for the three months ended march 31 , 2016 , compared to $ 152,259 for the three months ended march 31 , 2015 , representing an increase of $ 304,292 between the comparable periods . these types of expenses are anticipated to vary between future accounting periods as we continue to develop our oncology drug candidates and seek governmental approval of such drug candidates . 75 for the three months ended march 31 , 2016 we incurred compensation expense of $ 100,000 related to the scientific advisory board that was established as of september 30 , 2015 compared to $ 0 for the three months ended march 31 , 2015. general and administrative expenses were $ 1,942,655 for the three months ended march 31 , 2016 , compared to $ 1,583,820 for the three months ended march 31 , 2015 , representing an increase of $ 358,835 , with this increase principally attributed to the recognition of non-cash compensation expense related to stock options of $ 1,137,435 for the three months ended march 31 , 2016. for the three months ended march 31 , 2015 , we had no compensation expense related to stock options . the general and administrative expenses for the respective periods include : transaction costs associated with the merger , which totaled approximately $ 1,000,000 for the three months ended march 31 , 2015 and relate to professional fees incurred in respect of legal , investor relations and accounting and auditing of tyme 's financial statements . there were no such transaction costs incurred in the three months ended march 31 , 2016. salary expense for non-research and development personnel was $ 243,572 for the three months ended march 31 , 2016 , compared to $ 395,356 for the three months ended march 31 , 2015 , representing a $ 151,784 decrease between the comparable periods . the decrease is due to the fact that during the three months ended march 31 , 2015 , non-research and development personnel were awarded bonus compensation totaling $ 206,690 in connection with the merger . this decrease is offset by a new full time hire during the three months ended march 31 , 2016. stock based compensation expense related to stock options granted was $ 1,137,435 for the three months ended march 31 , 2016 compared to $ 0 for the three months ended march 31 , 2015. no stock options were granted during or prior to the three months ended march 31 , 2015. in addition , in the three months ended march 31 , 2016 , we incurred costs of $ 353,362 for legal and accounting fees . liquidity and capital resources liquidity and capital requirements outlook during fiscal year 2018 , we raised gross proceeds of approximately $ 32.1 million through the issuance of our common stock . most recently in march 2018 , we raised aggregate gross proceeds of $ 23.3 million before underwriting discounts and commissions and expenses of the offering through an underwritten public offering . previously , on november 2 , 2017 , the company entered into the equity distribution agreement with canaccord , to commence the atm financing facility pursuant to which the company may , from time to time , subject to certain rules and regulations , sell shares of the company 's common stock , par value $ 0.0001 per share , having an aggregate offering price up to $ 30.0 million , through canaccord , as the company 's sales agent . in the year ended march 31 , 2018 , the company raised approximately $ 6.2 million in aggregate gross proceeds before commissions and expenses through the atm financing facility and incurred related costs , including commission to canaccord , of approximately $ 0.3 million . at march 31 , 2018 , there remained approximately $ 24.0 million of availability to sell shares through the facility . additionally , in april 2017 , we raised $ 2.7 million in gross proceeds through a private placement transaction . the proceeds of those offerings are being used by the company for continued clinical studies and development activities and other general corporate and operating expenses . we anticipate requiring additional capital to further fund the development of our product candidates , as well as to engage in potential partnerships or collaborations . the most significant funding needs continue to be in connection with conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . 76 additionally , following a review of the company 's employee and director compensation program performed in conjunction with an independent third-party compensation consultant , in may 2018 , our board of directors approved certain changes to these compensation programs , which are designed to address the company 's unique business attributes and to promote the company 's goals of attracting and retaining talent , aligning of the interests of executives with stockholders , and avoiding excessive risk taking . after consultation with the compensation consultant , the board approved employee cash bonuses for the completed 2018 fiscal year in an aggregate total amount of approximately $ 1.2 million , which amount is expected to be paid by the company during june 2018. the company 's board also approved

cash flows net cash used in or provided by operating , investing and financing activities from continuing operations were as follows : replace_table_token_7_th operating activities our cash used in operating activities in the year ended march 31 , 2018 totaled $ 11,879,260 which is the sum of ( i ) our net loss of $ 18,969,493 , adjusted for non-cash expenses totaling $ 7,303,245 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 213,012. as noted above , we expect these amounts to increase in fiscal year 2019. our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the year ended december 31 , 2015 totaled $ 6,610,156 which is the sum of ( i ) our net loss of $ 11,726,818 , adjusted for non-cash expenses totaling $ 4,728,851 ( which

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows net cash used in or provided by operating , investing and financing activities from continuing operations were as follows : replace_table_token_7_th operating activities our cash used in operating activities in the year ended march 31 , 2018 totaled $ 11,879,260 which is the sum of ( i ) our net loss of $ 18,969,493 , adjusted for non-cash expenses totaling $ 7,303,245 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 213,012. as noted above , we expect these amounts to increase in fiscal year 2019. our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the year ended december 31 , 2015 totaled $ 6,610,156 which is the sum of ( i ) our net loss of $ 11,726,818 , adjusted for non-cash expenses totaling $ 4,728,851 ( which ``` Suspicious Activity Report : the offering was made pursuant to the company 's registration statement on form s-3 ( registration no . 333-211489 ) , which was declared effective by the u.s. securities and exchange commission on august 16 , 2017 , a base prospectus dated august 16 , 2017 and a prospectus supplement dated march 1 , 2018. critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . 69 research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense . income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to federal income taxes in the united states , as well as in various u.s. state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . 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 assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of available positive and negative evidence , that it is not more likely than not that the benefit from deferred tax assets will be realizable . in recognition of this risk , we have provided a full valuation allowance against the net deferred tax assets . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “income taxes” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 469,000 and $ 617,000 at march 31 , 2018 and 2017 , respectively . increases or decreases would not have an effect on the effective tax rate . the company files federal income tax returns in the united states , as well as various u.s. state jurisdictions . the federal and state income tax returns are generally subject to tax examinations for the period april 1 , 2016 through march 31 , 2017 , january 1 , 2016 through march 31 , 2016 , the years ended december 31 , 2015 and 2014. to the extent the company has tax attribute carryforwards , the tax years in which the attribute was generated may still be adjusted upon examination by the internal revenue service or state tax authorities to the extent utilized in a future period . in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . on december 22 , 2017 , h.r . 1 ( also , known as the tax cuts and jobs act ( the “ act ” ) ) was signed into law . among its numerous changes to the internal revenue code , the act reduces the u.s. federal corporate tax rate from 35 % to 21 % . as a result , the most significant impact on the financial statements is a reduction of approximately $ 3.2 million for the deferred tax assets related to net operating losses and stock based compensation . such reduction is offset by changes to the company 's valuation allowance . 70 stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “compensation-stock compensation.” the guidance requires that stock-based payment transactions be recognized in the financial statements based on their fair value at the grant date and recognized as compensation expense over the vesting period as services are being provided . story_separator_special_tag research and development activities primarily consist of the following : salary expense for research and development personnel was $ 212,193 for the three months ended march 31 , 2016 , compared to $ 307,058 for the three months ended march 31 , 2015 , a decrease of $ 94,865 between the comparable periods . the decrease is due to the fact that during the three months ended march 31 , 2015 , research and development personnel were awarded bonus compensation totaling $ 135,560 in connection with the merger . this decrease is offset by a new hire during the three months ended march 31 , 2016. consulting and study expenses were $ 456,551 for the three months ended march 31 , 2016 , compared to $ 152,259 for the three months ended march 31 , 2015 , representing an increase of $ 304,292 between the comparable periods . these types of expenses are anticipated to vary between future accounting periods as we continue to develop our oncology drug candidates and seek governmental approval of such drug candidates . 75 for the three months ended march 31 , 2016 we incurred compensation expense of $ 100,000 related to the scientific advisory board that was established as of september 30 , 2015 compared to $ 0 for the three months ended march 31 , 2015. general and administrative expenses were $ 1,942,655 for the three months ended march 31 , 2016 , compared to $ 1,583,820 for the three months ended march 31 , 2015 , representing an increase of $ 358,835 , with this increase principally attributed to the recognition of non-cash compensation expense related to stock options of $ 1,137,435 for the three months ended march 31 , 2016. for the three months ended march 31 , 2015 , we had no compensation expense related to stock options . the general and administrative expenses for the respective periods include : transaction costs associated with the merger , which totaled approximately $ 1,000,000 for the three months ended march 31 , 2015 and relate to professional fees incurred in respect of legal , investor relations and accounting and auditing of tyme 's financial statements . there were no such transaction costs incurred in the three months ended march 31 , 2016. salary expense for non-research and development personnel was $ 243,572 for the three months ended march 31 , 2016 , compared to $ 395,356 for the three months ended march 31 , 2015 , representing a $ 151,784 decrease between the comparable periods . the decrease is due to the fact that during the three months ended march 31 , 2015 , non-research and development personnel were awarded bonus compensation totaling $ 206,690 in connection with the merger . this decrease is offset by a new full time hire during the three months ended march 31 , 2016. stock based compensation expense related to stock options granted was $ 1,137,435 for the three months ended march 31 , 2016 compared to $ 0 for the three months ended march 31 , 2015. no stock options were granted during or prior to the three months ended march 31 , 2015. in addition , in the three months ended march 31 , 2016 , we incurred costs of $ 353,362 for legal and accounting fees . liquidity and capital resources liquidity and capital requirements outlook during fiscal year 2018 , we raised gross proceeds of approximately $ 32.1 million through the issuance of our common stock . most recently in march 2018 , we raised aggregate gross proceeds of $ 23.3 million before underwriting discounts and commissions and expenses of the offering through an underwritten public offering . previously , on november 2 , 2017 , the company entered into the equity distribution agreement with canaccord , to commence the atm financing facility pursuant to which the company may , from time to time , subject to certain rules and regulations , sell shares of the company 's common stock , par value $ 0.0001 per share , having an aggregate offering price up to $ 30.0 million , through canaccord , as the company 's sales agent . in the year ended march 31 , 2018 , the company raised approximately $ 6.2 million in aggregate gross proceeds before commissions and expenses through the atm financing facility and incurred related costs , including commission to canaccord , of approximately $ 0.3 million . at march 31 , 2018 , there remained approximately $ 24.0 million of availability to sell shares through the facility . additionally , in april 2017 , we raised $ 2.7 million in gross proceeds through a private placement transaction . the proceeds of those offerings are being used by the company for continued clinical studies and development activities and other general corporate and operating expenses . we anticipate requiring additional capital to further fund the development of our product candidates , as well as to engage in potential partnerships or collaborations . the most significant funding needs continue to be in connection with conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . 76 additionally , following a review of the company 's employee and director compensation program performed in conjunction with an independent third-party compensation consultant , in may 2018 , our board of directors approved certain changes to these compensation programs , which are designed to address the company 's unique business attributes and to promote the company 's goals of attracting and retaining talent , aligning of the interests of executives with stockholders , and avoiding excessive risk taking . after consultation with the compensation consultant , the board approved employee cash bonuses for the completed 2018 fiscal year in an aggregate total amount of approximately $ 1.2 million , which amount is expected to be paid by the company during june 2018. the company 's board also approved

gaap measures and explanations of their importance to our operations . operating ( loss ) income operating ( loss ) income represents one measure of the pretax profitability of our segments and is derived by subtracting direct segment expenses from direct segment revenues . revenues and expenses are presented in the consolidated statements of operations , but are not subtotaled by segment . however , this information is available in total and by segment in note 23 , `` segmented replace_table_token_36_th kingsway financial services inc. management 's discussion and analysis information , `` to the consolidated financial statements , regarding reportable segment information . the nearest comparable u.s. gaap measure is loss from continuing operations before income tax ( benefit ) expense which , in addition to operating ( loss ) income , includes net investment income , net realized gains , other-than-temporary impairment loss , other income , general and administrative expenses , restructuring expense , interest expense , amortization of intangible assets , contingent consideration expense , impairment of asset held for sale , loss on change in fair value of debt , ( loss ) gain on buy-back of debt , and equity in net income ( loss ) of investee . gross premiums written while net premiums earned is the related u.s. gaap measure used in the consolidated statements of operations , gross premiums written is the component of net premiums earned that measures insurance business produced before the impact of ceding reinsurance premiums , but without respect to when those premiums will be recognized as actual revenue . we use this measure as an overall gauge of gross business volume in insurance underwriting . net premiums written while net premiums earned is the related u.s. gaap measure used in the consolidated statements of operations , net premiums written is the component of net premiums earned that measures the difference between gross premiums written and the impact of ceding reinsurance premiums , but without respect to when those premiums will be recognized as actual revenue . we use this measure as an indication of retained or net business volume in insurance underwriting . underwriting ratios kingsway , like many insurance companies , analyzes performance based on underwriting ratios such as loss , expense and combined ratios . the loss ratio is derived by dividing the amount of net loss and loss adjustment expenses incurred by net premiums earned . the expense ratio is derived by dividing the sum of commissions and premium taxes and general and administrative expenses by net premiums earned . the combined ratio is the sum of the loss ratio and the expense ratio . a combined ratio below 100 % demonstrates underwriting profit whereas a combined ratio over 100 % demonstrates an underwriting loss . critical accounting estimates and assumptions the preparation of consolidated financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect application of policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year . actual results could differ from these estimates . estimates and their underlying assumptions are reviewed on an ongoing basis . changes in estimates are recorded in the accounting period in which they are determined . the critical accounting estimates and assumptions in the accompanying consolidated financial statements include the provision for unpaid loss and loss adjustment expenses , valuation of fixed maturities and equity investments , valuation of deferred income taxes , valuation of intangible assets , goodwill recoverability , deferred acquisition costs , fair value assumptions for debt obligations , and contingent consideration . provision for unpaid loss and loss adjustment expenses a significant degree of judgment is required to determine amounts recorded in the consolidated financial statements for the provision for unpaid loss and loss adjustment expenses . the process for establishing the provision for unpaid loss and loss adjustment expenses reflects the uncertainties and significant judgmental factors inherent in predicting future results of both known and unknown loss events . as such , the process is inherently complex and imprecise and estimates are constantly refined . the process of establishing the provision for unpaid loss and loss adjustment expenses relies on the judgment and opinions of a large number of individuals , including the opinions of the company 's actuaries . further information regarding estimates used in determining our provision for unpaid loss and loss adjustment expenses is discussed in the “ unpaid loss and loss adjustment expenses ” section of part i , item 1 of this annual report and note 14 , `` unpaid loss and loss adjustment expenses , `` to the consolidated financial statements . factors affecting the provision for unpaid loss and loss adjustment expenses include the continually evolving and changing regulatory and legal environment , actuarial studies , professional experience and expertise of the company 's claims departments ' personnel and independent adjusters retained to handle individual claims , the quality of the data used for projection purposes , existing claims management practices including claims handling and settlement practices , the effect of inflationary trends on future loss settlement costs , court decisions , economic conditions and public attitudes . during 2012 , the company moved responsibility for evaluating the adequacy of our provision for unpaid loss and loss adjustment expenses under the terms of our policies and vehicle service agreements to an external process for most of our operating subsidiaries . replace_table_token_37_th kingsway financial services inc. management 's discussion and analysis the provision is evaluated by the company 's actuaries with the results then shared with management , which is responsible for establishing the provision recorded in the consolidated balance sheets . in the year-end actuarial review process , an analysis of the provision for unpaid loss and loss adjustment expenses is completed for each insurance subsidiary and iws . story_separator_special_tag the decrease in the loss ratio is primarily due to unfavorable development of $ 13.8 million recorded during 2012 in the provision for property and casualty unpaid loss and loss adjustment expenses for losses incurred as of december 31 , 2011 compared to favorable development of $ 1.2 million recorded during 2013 in the provision for property and casualty unpaid loss and loss adjustment expenses for losses incurred as of december 31 , 2012 . the unfavorable development recorded in 2012 was primarily due to the increase in property and casualty unpaid loss and loss adjustment expenses of $ 11.4 million as a result of the insurance underwriting restructuring announced by the company on september 17 , 2012. the insurance underwriting expense ratio was 50.1 % in 2013 compared with 45.5 % in 2012 . the increase in the expense ratio for the year ended december 31 , 2013 is primarily due to the effect of quota-share arrangements entered into by mendota during these periods . the insurance underwriting combined ratio was 123.8 % in 2013 compared with 132.0 % in 2012 , reflecting the dynamics which affected the loss and expense ratios . the insurance underwriting operating loss includes policy fee income of $ 9.0 million and $ 7.8 million for the years ended december 31 , 2013 and 2012 , respectively ; however , when calculating expense and combined ratios under u.s. gaap , policy fee income is excluded . insurance services the insurance services service fee and commission income increase d 39.4 % to $ 49.5 million for the year ended december 31 , 2013 compared with $ 35.5 million for the year ended december 31 , 2012 . this increase was primarily driven by the inclusion of iws in 2013 following its acquisition during the fourth quarter of 2012. the insurance services operating income was $ 1.8 million for the year ended december 31 , 2013 compared with $ 4.5 million for the year ended december 31 , 2012 . the decrease in operating income in 2013 is due to reduced premium volumes managed by ars , increased loss and loss adjustment expenses at iws and operating losses at trinity , which was acquired during the fourth quarter of 2013. net investment income net investment income decrease d to $ 2.4 million in 2013 compared to $ 3.2 million in 2012 . the decrease is primarily a result of a decline in the company 's fixed maturities , which resulted from reduced volumes of business and acceleration of claim payments in insurance underwriting . additionally , yields on fixed maturities remain at historically low levels such that reinvestment of maturing investments occurs at yields lower than the yields on the maturing investments . net realized gains the company generated net realized gains of $ 3.5 million for the year ended december 31 , 2013 compared to $ 1.1 million for the year ended december 31 , 2012 . the net realized gains in 2013 resulted primarily from the sale of atlas financial holdings , inc. ( `` atlas `` ) common stock . during 2013 , the company realized a net gain of $ 2.6 million related to the sale of atlas common stock . the net realized gains in 2012 resulted from the liquidation of equity investments and fixed maturities in insurance underwriting offset by realized losses of $ 0.5 million related to the sale of atlas common stock . see note 6 , `` investments , `` and note 7 , `` investment in investee , `` to the consolidated financial statements for further details of the company 's atlas common stock sales . other-than-temporary impairment loss on july 8 , 2013 , the company announced that it had entered into a non-binding letter of intent with atlas to sell its holdings of atlas preferred stock for 90 % of liquidation value , or $ 16.2 million . on august 1 , 2013 , the company announced that the transaction replace_table_token_43_th kingsway financial services inc. management 's discussion and analysis had closed . as a result , the company recorded a write-down for other-than-temporary impairment related to its investment in atlas preferred stock of $ 1.8 million for the year ended december 31 , 2013 . as a result of the analysis performed by the company to determine declines in market value that are other-than-temporary , the company recorded write-downs for other-than-temporary impairment related to investment in investee and other investments of $ 2.2 million and $ 0.5 million , respectively , for the year ended december 31 , 2012 . there were no write-downs related to fixed maturities for other-than-temporary impairments for the years ended december 31 , 2013 and 2012 . other income and expenses not allocated to segments , net other income and expenses not allocated to segments was a net expense of $ 10.8 million in 2013 compared to $ 8.9 million in 2012 . the increase in net expense is primarily due to $ 0.6 million more in foreign exchange losses and $ 2.1 million more of corporate general and administrative expenses , including professional fees , salaries and benefits , offset by $ 0.8 million more of other income recorded in 2013 than 2012 . interest expense interest expense for 2013 was $ 7.3 million compared to $ 7.6 million in 2012 . amortization of intangible assets the company 's intangible assets related to vsa in-force , acquired database , customer-related relationships and non-compete agreement have definite useful lives and are amortized over their estimated useful lives . amortization of intangible assets was $ 2.2 million in 2013 compared to $ 1.0 million in 2012 . the increase is due to the inclusion of a full year of amortization expense related to the iws intangible assets acquired during the fourth quarter of 2012 , as well as the inclusion of amortization expense related to the trinity intangible asset acquired during the second quarter of 2013. see note 4

debt canadian senior debenture offering on july 10 , 2007 , a general partnership of the company , kingsway 2007 general partnership , issued c $ 100.0 million senior unsecured debentures at 6 % due on july 11 , 2012. these debentures bore interest at a fixed rate of 6 % per annum payable semi-annually from the date of issuance until july 11 , 2012. interest payments were made on january 10 and july 10 of each year , commencing january 10 , 2008. the net proceeds to the company amounted to c $ 99.2 million . the debentures were unconditionally guaranteed by the company and its subsidiary , kingsway america inc. ( `` kai '' ) . pursuant to the debt buy-back initiative previously mentioned , kingsway 2007 general partnership repurchased and retired most of the originally issued par value . on july 11 , 2012 , kingsway 2007 general partnership redeemed the remaining outstanding principal balance of c $ 1.7 million . u.s. senior note offering on january 29 , 2004 , kai completed the sale of $ 100.0 million 7.50 % senior notes due 2014. in march 2004 , an additional $ 25.0 million of these senior notes were issued . interest payments are to be made on february 1 and august 1 in each year . the notes are fully and unconditionally guaranteed by the company . the notes are redeemable at kai 's option in whole at any time or in part from time to time on or after february 1 , 2009 subject to the conditions stated in the trust indenture .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```debt canadian senior debenture offering on july 10 , 2007 , a general partnership of the company , kingsway 2007 general partnership , issued c $ 100.0 million senior unsecured debentures at 6 % due on july 11 , 2012. these debentures bore interest at a fixed rate of 6 % per annum payable semi-annually from the date of issuance until july 11 , 2012. interest payments were made on january 10 and july 10 of each year , commencing january 10 , 2008. the net proceeds to the company amounted to c $ 99.2 million . the debentures were unconditionally guaranteed by the company and its subsidiary , kingsway america inc. ( `` kai '' ) . pursuant to the debt buy-back initiative previously mentioned , kingsway 2007 general partnership repurchased and retired most of the originally issued par value . on july 11 , 2012 , kingsway 2007 general partnership redeemed the remaining outstanding principal balance of c $ 1.7 million . u.s. senior note offering on january 29 , 2004 , kai completed the sale of $ 100.0 million 7.50 % senior notes due 2014. in march 2004 , an additional $ 25.0 million of these senior notes were issued . interest payments are to be made on february 1 and august 1 in each year . the notes are fully and unconditionally guaranteed by the company . the notes are redeemable at kai 's option in whole at any time or in part from time to time on or after february 1 , 2009 subject to the conditions stated in the trust indenture . ``` Suspicious Activity Report : gaap measures and explanations of their importance to our operations . operating ( loss ) income operating ( loss ) income represents one measure of the pretax profitability of our segments and is derived by subtracting direct segment expenses from direct segment revenues . revenues and expenses are presented in the consolidated statements of operations , but are not subtotaled by segment . however , this information is available in total and by segment in note 23 , `` segmented replace_table_token_36_th kingsway financial services inc. management 's discussion and analysis information , `` to the consolidated financial statements , regarding reportable segment information . the nearest comparable u.s. gaap measure is loss from continuing operations before income tax ( benefit ) expense which , in addition to operating ( loss ) income , includes net investment income , net realized gains , other-than-temporary impairment loss , other income , general and administrative expenses , restructuring expense , interest expense , amortization of intangible assets , contingent consideration expense , impairment of asset held for sale , loss on change in fair value of debt , ( loss ) gain on buy-back of debt , and equity in net income ( loss ) of investee . gross premiums written while net premiums earned is the related u.s. gaap measure used in the consolidated statements of operations , gross premiums written is the component of net premiums earned that measures insurance business produced before the impact of ceding reinsurance premiums , but without respect to when those premiums will be recognized as actual revenue . we use this measure as an overall gauge of gross business volume in insurance underwriting . net premiums written while net premiums earned is the related u.s. gaap measure used in the consolidated statements of operations , net premiums written is the component of net premiums earned that measures the difference between gross premiums written and the impact of ceding reinsurance premiums , but without respect to when those premiums will be recognized as actual revenue . we use this measure as an indication of retained or net business volume in insurance underwriting . underwriting ratios kingsway , like many insurance companies , analyzes performance based on underwriting ratios such as loss , expense and combined ratios . the loss ratio is derived by dividing the amount of net loss and loss adjustment expenses incurred by net premiums earned . the expense ratio is derived by dividing the sum of commissions and premium taxes and general and administrative expenses by net premiums earned . the combined ratio is the sum of the loss ratio and the expense ratio . a combined ratio below 100 % demonstrates underwriting profit whereas a combined ratio over 100 % demonstrates an underwriting loss . critical accounting estimates and assumptions the preparation of consolidated financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect application of policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year . actual results could differ from these estimates . estimates and their underlying assumptions are reviewed on an ongoing basis . changes in estimates are recorded in the accounting period in which they are determined . the critical accounting estimates and assumptions in the accompanying consolidated financial statements include the provision for unpaid loss and loss adjustment expenses , valuation of fixed maturities and equity investments , valuation of deferred income taxes , valuation of intangible assets , goodwill recoverability , deferred acquisition costs , fair value assumptions for debt obligations , and contingent consideration . provision for unpaid loss and loss adjustment expenses a significant degree of judgment is required to determine amounts recorded in the consolidated financial statements for the provision for unpaid loss and loss adjustment expenses . the process for establishing the provision for unpaid loss and loss adjustment expenses reflects the uncertainties and significant judgmental factors inherent in predicting future results of both known and unknown loss events . as such , the process is inherently complex and imprecise and estimates are constantly refined . the process of establishing the provision for unpaid loss and loss adjustment expenses relies on the judgment and opinions of a large number of individuals , including the opinions of the company 's actuaries . further information regarding estimates used in determining our provision for unpaid loss and loss adjustment expenses is discussed in the “ unpaid loss and loss adjustment expenses ” section of part i , item 1 of this annual report and note 14 , `` unpaid loss and loss adjustment expenses , `` to the consolidated financial statements . factors affecting the provision for unpaid loss and loss adjustment expenses include the continually evolving and changing regulatory and legal environment , actuarial studies , professional experience and expertise of the company 's claims departments ' personnel and independent adjusters retained to handle individual claims , the quality of the data used for projection purposes , existing claims management practices including claims handling and settlement practices , the effect of inflationary trends on future loss settlement costs , court decisions , economic conditions and public attitudes . during 2012 , the company moved responsibility for evaluating the adequacy of our provision for unpaid loss and loss adjustment expenses under the terms of our policies and vehicle service agreements to an external process for most of our operating subsidiaries . replace_table_token_37_th kingsway financial services inc. management 's discussion and analysis the provision is evaluated by the company 's actuaries with the results then shared with management , which is responsible for establishing the provision recorded in the consolidated balance sheets . in the year-end actuarial review process , an analysis of the provision for unpaid loss and loss adjustment expenses is completed for each insurance subsidiary and iws . story_separator_special_tag the decrease in the loss ratio is primarily due to unfavorable development of $ 13.8 million recorded during 2012 in the provision for property and casualty unpaid loss and loss adjustment expenses for losses incurred as of december 31 , 2011 compared to favorable development of $ 1.2 million recorded during 2013 in the provision for property and casualty unpaid loss and loss adjustment expenses for losses incurred as of december 31 , 2012 . the unfavorable development recorded in 2012 was primarily due to the increase in property and casualty unpaid loss and loss adjustment expenses of $ 11.4 million as a result of the insurance underwriting restructuring announced by the company on september 17 , 2012. the insurance underwriting expense ratio was 50.1 % in 2013 compared with 45.5 % in 2012 . the increase in the expense ratio for the year ended december 31 , 2013 is primarily due to the effect of quota-share arrangements entered into by mendota during these periods . the insurance underwriting combined ratio was 123.8 % in 2013 compared with 132.0 % in 2012 , reflecting the dynamics which affected the loss and expense ratios . the insurance underwriting operating loss includes policy fee income of $ 9.0 million and $ 7.8 million for the years ended december 31 , 2013 and 2012 , respectively ; however , when calculating expense and combined ratios under u.s. gaap , policy fee income is excluded . insurance services the insurance services service fee and commission income increase d 39.4 % to $ 49.5 million for the year ended december 31 , 2013 compared with $ 35.5 million for the year ended december 31 , 2012 . this increase was primarily driven by the inclusion of iws in 2013 following its acquisition during the fourth quarter of 2012. the insurance services operating income was $ 1.8 million for the year ended december 31 , 2013 compared with $ 4.5 million for the year ended december 31 , 2012 . the decrease in operating income in 2013 is due to reduced premium volumes managed by ars , increased loss and loss adjustment expenses at iws and operating losses at trinity , which was acquired during the fourth quarter of 2013. net investment income net investment income decrease d to $ 2.4 million in 2013 compared to $ 3.2 million in 2012 . the decrease is primarily a result of a decline in the company 's fixed maturities , which resulted from reduced volumes of business and acceleration of claim payments in insurance underwriting . additionally , yields on fixed maturities remain at historically low levels such that reinvestment of maturing investments occurs at yields lower than the yields on the maturing investments . net realized gains the company generated net realized gains of $ 3.5 million for the year ended december 31 , 2013 compared to $ 1.1 million for the year ended december 31 , 2012 . the net realized gains in 2013 resulted primarily from the sale of atlas financial holdings , inc. ( `` atlas `` ) common stock . during 2013 , the company realized a net gain of $ 2.6 million related to the sale of atlas common stock . the net realized gains in 2012 resulted from the liquidation of equity investments and fixed maturities in insurance underwriting offset by realized losses of $ 0.5 million related to the sale of atlas common stock . see note 6 , `` investments , `` and note 7 , `` investment in investee , `` to the consolidated financial statements for further details of the company 's atlas common stock sales . other-than-temporary impairment loss on july 8 , 2013 , the company announced that it had entered into a non-binding letter of intent with atlas to sell its holdings of atlas preferred stock for 90 % of liquidation value , or $ 16.2 million . on august 1 , 2013 , the company announced that the transaction replace_table_token_43_th kingsway financial services inc. management 's discussion and analysis had closed . as a result , the company recorded a write-down for other-than-temporary impairment related to its investment in atlas preferred stock of $ 1.8 million for the year ended december 31 , 2013 . as a result of the analysis performed by the company to determine declines in market value that are other-than-temporary , the company recorded write-downs for other-than-temporary impairment related to investment in investee and other investments of $ 2.2 million and $ 0.5 million , respectively , for the year ended december 31 , 2012 . there were no write-downs related to fixed maturities for other-than-temporary impairments for the years ended december 31 , 2013 and 2012 . other income and expenses not allocated to segments , net other income and expenses not allocated to segments was a net expense of $ 10.8 million in 2013 compared to $ 8.9 million in 2012 . the increase in net expense is primarily due to $ 0.6 million more in foreign exchange losses and $ 2.1 million more of corporate general and administrative expenses , including professional fees , salaries and benefits , offset by $ 0.8 million more of other income recorded in 2013 than 2012 . interest expense interest expense for 2013 was $ 7.3 million compared to $ 7.6 million in 2012 . amortization of intangible assets the company 's intangible assets related to vsa in-force , acquired database , customer-related relationships and non-compete agreement have definite useful lives and are amortized over their estimated useful lives . amortization of intangible assets was $ 2.2 million in 2013 compared to $ 1.0 million in 2012 . the increase is due to the inclusion of a full year of amortization expense related to the iws intangible assets acquired during the fourth quarter of 2012 , as well as the inclusion of amortization expense related to the trinity intangible asset acquired during the second quarter of 2013. see note 4

gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts story_separator_special_tag gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts

cash flows cash used in operating activities of continuing operations is presented below ( in thousands ) . replace_table_token_1_th we used $ 5.2 million in operating cash during 2018 , compared to $ 5.0 million of operating cash in 2017. we also funded $ 3 . 3 million of capital expenditures in 2018 , compared to $ 0.9 million in in the prior year . these capital expenditures relate primarily to our specialty ingredients ' equipment in our dillon plant and our sqf projects to certify our facilities . offsetting these uses of cash was $ 11.1 million of proceeds from warrant exercises . as of december 31 , 2018 , our cash and cash equivalents balance was $ 7.0 million and our restricted cash balance was $ 0.2 million ( see note 1 ) , compared to $ 6.2 million and $ 0.8 million of restricted cash as of december 31 , 2017. in march 2019 , we completed a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock for aggregate gross proceeds of approximately $ 12.1 million , discussed further in note 9. off-balance sheet arrangements we have no off-balance sheet arrangements , other than normal operating leases and employee contracts , that have or are likely to have a current or future material effect on our financial condition , changes in financial condition , revenue , expenses , results of operations , liquidity , capital expenditures , or capital resources . critical accounting policies the accompanying consolidated financial statements have been prepared in u.s. dollars and in accordance with accounting principles generally accepted in the united states ( gaap ) . the preparation of the consolidated financial statements in conformity with gaap requires management to make estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows cash used in operating activities of continuing operations is presented below ( in thousands ) . replace_table_token_1_th we used $ 5.2 million in operating cash during 2018 , compared to $ 5.0 million of operating cash in 2017. we also funded $ 3 . 3 million of capital expenditures in 2018 , compared to $ 0.9 million in in the prior year . these capital expenditures relate primarily to our specialty ingredients ' equipment in our dillon plant and our sqf projects to certify our facilities . offsetting these uses of cash was $ 11.1 million of proceeds from warrant exercises . as of december 31 , 2018 , our cash and cash equivalents balance was $ 7.0 million and our restricted cash balance was $ 0.2 million ( see note 1 ) , compared to $ 6.2 million and $ 0.8 million of restricted cash as of december 31 , 2017. in march 2019 , we completed a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock for aggregate gross proceeds of approximately $ 12.1 million , discussed further in note 9. off-balance sheet arrangements we have no off-balance sheet arrangements , other than normal operating leases and employee contracts , that have or are likely to have a current or future material effect on our financial condition , changes in financial condition , revenue , expenses , results of operations , liquidity , capital expenditures , or capital resources . critical accounting policies the accompanying consolidated financial statements have been prepared in u.s. dollars and in accordance with accounting principles generally accepted in the united states ( gaap ) . the preparation of the consolidated financial statements in conformity with gaap requires management to make estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses . ``` Suspicious Activity Report : gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts story_separator_special_tag gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts

see “ non-gaap reconciliations ” for an explanation of these non-gaap financial measures . trends and strategy trends general economic conditions and consumer confidence can affect the frequency of purchases and amounts spent by consumers for food-away-from-home and , in turn , can impact our customers and our sales . we believe the current general economic conditions , including pressure on consumer disposable income , have contributed to a slow rate of recovery in the foodservice market . according to industry sources , real sales for the total foodservice market in the united states are not expected to grow significantly over the next year . 16 we experienced prolonged levels of high product cost inflation during most of fiscal 2012 as compared to fiscal 2011. our product cost inflation reached a high of 7.3 % in the first quarter of fiscal 2012 and a low of 3.3 % in the fourth quarter of fiscal 2012. while we are generally able to pass on modest levels of inflation to our customers , we were unable to fully pass through these higher levels of product cost inflation with the same gross margin percentage without negatively impacting our customers ' business and therefore our business . in the summer months of 2012 , certain agricultural areas of the united states have experienced severe drought . the impact of this drought is uncertain and could result in volatile input costs . input costs could increase at any point in time for a large portion of the products that we sell for a prolonged period . while we can not predict whether inflation will continue at current levels , periods of high inflation , either overall or in certain product categories , can have a negative impact on us and our customers , as high food costs can reduce consumer spending in the food-away-from-home market , and may negatively impact our sales , gross profit , operating income and earnings . we have experienced higher operating costs this fiscal year . some of the increase has resulted from increased pay-related expenses . sales compensation includes commissions which are driven by gross profit dollars and case volumes , and delivery compensation includes activity-based pay which is driven by case volumes . since these drivers are variable in nature , increased gross profit dollars and case volumes have increased sales and delivery compensation . we believe pay-related expense could continue to increase if gross profit dollars and case volumes increase ; however , the impact of our productivity related initiatives could favorably impact the magnitude of this trend . fuel costs are expected to stabilize provided that fuel prices do not significantly change from their current levels . our business transformation project is a key part of our strategy to control costs and grow our market share over the long-term . this project includes an integrated software system that went into deployment in august 2012. we believe expenses related to the project will increase in fiscal 2013 as compared to fiscal 2012 due to amortization of the software asset and increased deployment costs . net company-sponsored pension costs for our retirement plan have experienced volatility over the past five years primarily due to changes in interest rates which are used to determine the discount rates for our pension obligations and our pension asset performance . for most of these periods , we have experienced significantly increased pension expense . at the end of fiscal 2012 , sysco decided to freez e future benefit accruals under the retirement plan as of december 31 , 20 12 for all u.s.-based salaried and non-union hourly employees . effective january 1 , 2013 , these employees will be eligible for additional contributions under an enhanced , defined contribution plan . p ension costs will decrease in fiscal 2013 primarily due to this plan freeze . our expenses related to our defined contribution plan will increase in fiscal 2013 and will more than offset our reduced pension costs ; however , over the long-term , we believe the changes to both plans will result in reduced volatility of retirement related expenses and a reduction in total retirement related expenses . strategy we are focused on optimizing our core broadline business in the u.s. and canada , while continuing to explore appropriate opportunities to profitably grow our market share and create shareholder value by expanding beyond our core business . day-to-day , our business decisions are driven by our mission to market and deliver great products to our customers with exceptional service , with the aspirational vision of becoming each of our customers ' most valued and trusted business partner . we have identified five strategies to help us achieve our mission and vision : · profoundly enrich the experience of doing business with sysco : our primary focus is to help our customers succeed . we believe that by building on our current competitive advantages , we will be able to further differentiate our offering to customers . our competitive advantages include our sales force of over 8,000 marketing associates ; our diversified product base , which includes quality-assured sysco brand products ; the suite of services we provide to our customers such as business reviews and menu analysis ; and our wide geographic presence in the united states and canada . in addition , we have a portfolio of businesses spanning broadline , specialty meat , chain restaurant distribution , specialty produce , hotel amenities , specialty import and export which serves our customers ' needs across a wide array of business segments . we believe this strategy of enriching the experience of doing business with sysco will increase customer retention and profitably accelerate sales growth with both existing and new customers . · continuously improve productivity in all areas of our business : our multi-year business transformation project is designed to improve productivity and reduce costs . story_separator_special_tag as a result , the cash surrender values of these policies fluctuated with changes in the market value of such securities . the changes in the financial markets resulted i n gains for these policies of $ 28.2 million in fiscal 2011 . near the end of fiscal 2011 , we reallocated all of our policies into low-risk , fixed-income securities to reduce earnings volatility and therefore our adjustments for fiscal 2012 were not significant . beginning with fiscal 2013 , there should be no significant year-over-year impact from coli adjustments as compared to fiscal 2013. net company-sponsored pension costs in fiscal 2012 wer e $ 27.3 million lower than i n fiscal 201 1 . the decrease in fiscal 2012 was due primarily to higher returns on assets of sysco 's retirement plan obtained in fiscal 2011. at the end of fiscal 2012 , sysco decided to freez e future benefit accruals under the retirement plan as of december 31 , 20 12 for all u.s.-based salaried and non-union hourly employees . effective january 1 , 2013 , these employees will be eligible for additional contributions under an enhanced , defined contribution plan . net company-sponsored pension costs in fiscal 201 3 have been determined as of the fiscal 201 2 year-end measurement date and will decrease b y approximately $ 26.5 million in fiscal 2013. our expenses related to our defined contribution plan will increase approximately $ 45 million to $ 55 million in fiscal 2013. the decline in pension cost will occur evenly over fiscal 2013 ; however , the increased defined contribution expenses will occur in the last half of fiscal 2013 when these enhancements go into effect . over the long-term , we believe the changes to both plans will result in reduced volatility of retirement related expenses and a reduction in total retirement related expenses . absent the retirement plan freeze discussed above , net company-sponsored pension costs in fiscal 2013 would have increased $ 106.9 million instead of decreasing $ 26.5 million . from time to time , we may voluntarily withdraw from multiemployer pension plans to minimize or limit our future exposure to these plans . in the last two fiscal years , we voluntary withdrew from several multiemployer plans and recorded provisions of $ 21.9 million in fiscal 2012 and $ 41.5 million in fiscal 2011 . we also measure our expense performance on a cost per case basis , which we seek to align with the gross profit that we are able to generate . for our broadline companies , our cost per case increased $ 0.04 per case as compared to fiscal 2011. these increases primarily related to increased payroll costs and fuel costs discussed above . fiscal 201 1 vs. fiscal 201 0 operating income decreased 2.2 % in fiscal 2011 over fiscal 2010 to $ 1.9 billion , and as a percentage of sales , declined to 4.9 % of sales . the decrease was driven by the absence of the 53 rd week in fiscal 2011 , gross profit dollars growing at a slower rate than sales and operating expenses increasing faster than gross profit partially due to charge of $ 41.5 million from withdrawal s from multiemployer pension plan s . gross profit dollars increased 2.9 % in fiscal 2011 as compared to fiscal 2010 , and operating expenses increased 4.8 % in fiscal 2011. adjusted operating income increased 2.5 % , or $ 50 .8 million , in fiscal 2011 over fiscal 2010 . 21 gross profit dollars increased in fiscal 2011 as compared to fiscal 2010 primarily due to increased sales , partially offset by the negative comparison of the additional week included in fiscal 2010. gross margin was 18.80 % in fiscal 2011 , a decline of 50 basis points from the gross margin of 19.30 % in fiscal 2010. this decline in gross margin was primarily the result of the following factors described in the paragraphs below . first , sysco 's product cost inflation was estimated as inflation of 4.6 % during fiscal 2011. based on our product sales mix for fiscal 2011 , we were most impacted by higher levels of inflation in the dairy , meat and seafood product categories in the range of 10 % to 12 % . our largest selling product category , canned and dry , experienced inflation of 4 % . second , ongoing strategic pricing initiatives in fiscal 2011 lowered our prices to our customers in certain product categories in order to increase sales volumes . these initiatives are being phased in over time and resulted in short-term gross profit declines as a percentage of sales , but we believe will result in long-term gross profit dollar growth due to higher sales volumes and increased market share . we have experienced meaningful year over year volume growth with those items included in the early phases of these programs in the geographies where this program has been implemented . we believe the long-term benefits of these strategic initiatives will result in profitable market share growth . third , gross profit dollars for fiscal 2011 increased as a result of higher fuel surcharges . fuel surcharges were approximately $ 26.0 million higher in fiscal 2011 than in the comparable prior year period due to higher fuel prices incurred during fiscal 2011 and the application of fuel surcharges to a broader customer base for a small portion of the third quarter and the entire fourth quarter . operating expenses for fiscal 2011 increased 4.8 % primarily due to higher pay-related expense , an increase in net company-sponsored pension costs , provisions for withdrawal from multiemployer pension plans and higher fuel costs as compared to the prior year period . the impact of these operating expense increases was partially offset by a decrease in operating expenses of approximately $ 101.4 million resulting from the absence of the 53rd week in fiscal 201 0 . adjusted operating

debt activity and borrowing availability short-term borrowings we have uncommitted bank lines of credit , which provided for unsecured borrowings for working capital of up to $ 95.0 million , of which none was outstanding as of june 30 , 2012 or augu st 15 , 2012 . our irish subsidiary , pallas foods limited , has a 10.0 million ( euro ) committed facility for unsecured borrowings for working capital . there were no borrowings outstanding under this facility as of june 30 , 2012 or aug ust 15 , 2012 . on june 30 , 2011 , a canadian subsidiary of sysco entered into a short-term demand loan facility for the purpose of facilitating a distribution from the canadian subsidiary to sysco , and sysco concurrently entered into an agreement with the bank to guarantee the loan . the amount borrowed was $ 182.0 million and was repaid in full on july 4 , 2011 . 32 commercial paper and revolving credit facility we have a board-approved commercial paper program allowing us to issue short-term unsecured notes in an aggregate amount not to exceed $ 1.3 billion . in december 2011 , we terminated our previously existing revolving credit facility that supported the company 's u.s. and canadian commercial paper programs . at the same time , sysco and one of its subsidiaries , sysco international , ulc , entered into a new $ 1.0 billion credit facility supporting the company 's u.s. and canadian commercial paper programs . this facility provides for borrowings in both u.s. and canadian dollars . borrowings by sysco international , ulc under the credit agreement are guaranteed by sysco , and borrowings by sysco and sysco international , ulc under the credit agreement and guaranteed by all the wholly-owned subsidiaries of sysco that are guarantors of the company 's senior notes and debentures . the facility expires on december 29 , 2016 , but is subject to extension . there were no commercial paper issuances outstanding as of june 30 , 2012 or augus t 15 , 2012 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```debt activity and borrowing availability short-term borrowings we have uncommitted bank lines of credit , which provided for unsecured borrowings for working capital of up to $ 95.0 million , of which none was outstanding as of june 30 , 2012 or augu st 15 , 2012 . our irish subsidiary , pallas foods limited , has a 10.0 million ( euro ) committed facility for unsecured borrowings for working capital . there were no borrowings outstanding under this facility as of june 30 , 2012 or aug ust 15 , 2012 . on june 30 , 2011 , a canadian subsidiary of sysco entered into a short-term demand loan facility for the purpose of facilitating a distribution from the canadian subsidiary to sysco , and sysco concurrently entered into an agreement with the bank to guarantee the loan . the amount borrowed was $ 182.0 million and was repaid in full on july 4 , 2011 . 32 commercial paper and revolving credit facility we have a board-approved commercial paper program allowing us to issue short-term unsecured notes in an aggregate amount not to exceed $ 1.3 billion . in december 2011 , we terminated our previously existing revolving credit facility that supported the company 's u.s. and canadian commercial paper programs . at the same time , sysco and one of its subsidiaries , sysco international , ulc , entered into a new $ 1.0 billion credit facility supporting the company 's u.s. and canadian commercial paper programs . this facility provides for borrowings in both u.s. and canadian dollars . borrowings by sysco international , ulc under the credit agreement are guaranteed by sysco , and borrowings by sysco and sysco international , ulc under the credit agreement and guaranteed by all the wholly-owned subsidiaries of sysco that are guarantors of the company 's senior notes and debentures . the facility expires on december 29 , 2016 , but is subject to extension . there were no commercial paper issuances outstanding as of june 30 , 2012 or augus t 15 , 2012 . ``` Suspicious Activity Report : see “ non-gaap reconciliations ” for an explanation of these non-gaap financial measures . trends and strategy trends general economic conditions and consumer confidence can affect the frequency of purchases and amounts spent by consumers for food-away-from-home and , in turn , can impact our customers and our sales . we believe the current general economic conditions , including pressure on consumer disposable income , have contributed to a slow rate of recovery in the foodservice market . according to industry sources , real sales for the total foodservice market in the united states are not expected to grow significantly over the next year . 16 we experienced prolonged levels of high product cost inflation during most of fiscal 2012 as compared to fiscal 2011. our product cost inflation reached a high of 7.3 % in the first quarter of fiscal 2012 and a low of 3.3 % in the fourth quarter of fiscal 2012. while we are generally able to pass on modest levels of inflation to our customers , we were unable to fully pass through these higher levels of product cost inflation with the same gross margin percentage without negatively impacting our customers ' business and therefore our business . in the summer months of 2012 , certain agricultural areas of the united states have experienced severe drought . the impact of this drought is uncertain and could result in volatile input costs . input costs could increase at any point in time for a large portion of the products that we sell for a prolonged period . while we can not predict whether inflation will continue at current levels , periods of high inflation , either overall or in certain product categories , can have a negative impact on us and our customers , as high food costs can reduce consumer spending in the food-away-from-home market , and may negatively impact our sales , gross profit , operating income and earnings . we have experienced higher operating costs this fiscal year . some of the increase has resulted from increased pay-related expenses . sales compensation includes commissions which are driven by gross profit dollars and case volumes , and delivery compensation includes activity-based pay which is driven by case volumes . since these drivers are variable in nature , increased gross profit dollars and case volumes have increased sales and delivery compensation . we believe pay-related expense could continue to increase if gross profit dollars and case volumes increase ; however , the impact of our productivity related initiatives could favorably impact the magnitude of this trend . fuel costs are expected to stabilize provided that fuel prices do not significantly change from their current levels . our business transformation project is a key part of our strategy to control costs and grow our market share over the long-term . this project includes an integrated software system that went into deployment in august 2012. we believe expenses related to the project will increase in fiscal 2013 as compared to fiscal 2012 due to amortization of the software asset and increased deployment costs . net company-sponsored pension costs for our retirement plan have experienced volatility over the past five years primarily due to changes in interest rates which are used to determine the discount rates for our pension obligations and our pension asset performance . for most of these periods , we have experienced significantly increased pension expense . at the end of fiscal 2012 , sysco decided to freez e future benefit accruals under the retirement plan as of december 31 , 20 12 for all u.s.-based salaried and non-union hourly employees . effective january 1 , 2013 , these employees will be eligible for additional contributions under an enhanced , defined contribution plan . p ension costs will decrease in fiscal 2013 primarily due to this plan freeze . our expenses related to our defined contribution plan will increase in fiscal 2013 and will more than offset our reduced pension costs ; however , over the long-term , we believe the changes to both plans will result in reduced volatility of retirement related expenses and a reduction in total retirement related expenses . strategy we are focused on optimizing our core broadline business in the u.s. and canada , while continuing to explore appropriate opportunities to profitably grow our market share and create shareholder value by expanding beyond our core business . day-to-day , our business decisions are driven by our mission to market and deliver great products to our customers with exceptional service , with the aspirational vision of becoming each of our customers ' most valued and trusted business partner . we have identified five strategies to help us achieve our mission and vision : · profoundly enrich the experience of doing business with sysco : our primary focus is to help our customers succeed . we believe that by building on our current competitive advantages , we will be able to further differentiate our offering to customers . our competitive advantages include our sales force of over 8,000 marketing associates ; our diversified product base , which includes quality-assured sysco brand products ; the suite of services we provide to our customers such as business reviews and menu analysis ; and our wide geographic presence in the united states and canada . in addition , we have a portfolio of businesses spanning broadline , specialty meat , chain restaurant distribution , specialty produce , hotel amenities , specialty import and export which serves our customers ' needs across a wide array of business segments . we believe this strategy of enriching the experience of doing business with sysco will increase customer retention and profitably accelerate sales growth with both existing and new customers . · continuously improve productivity in all areas of our business : our multi-year business transformation project is designed to improve productivity and reduce costs . story_separator_special_tag as a result , the cash surrender values of these policies fluctuated with changes in the market value of such securities . the changes in the financial markets resulted i n gains for these policies of $ 28.2 million in fiscal 2011 . near the end of fiscal 2011 , we reallocated all of our policies into low-risk , fixed-income securities to reduce earnings volatility and therefore our adjustments for fiscal 2012 were not significant . beginning with fiscal 2013 , there should be no significant year-over-year impact from coli adjustments as compared to fiscal 2013. net company-sponsored pension costs in fiscal 2012 wer e $ 27.3 million lower than i n fiscal 201 1 . the decrease in fiscal 2012 was due primarily to higher returns on assets of sysco 's retirement plan obtained in fiscal 2011. at the end of fiscal 2012 , sysco decided to freez e future benefit accruals under the retirement plan as of december 31 , 20 12 for all u.s.-based salaried and non-union hourly employees . effective january 1 , 2013 , these employees will be eligible for additional contributions under an enhanced , defined contribution plan . net company-sponsored pension costs in fiscal 201 3 have been determined as of the fiscal 201 2 year-end measurement date and will decrease b y approximately $ 26.5 million in fiscal 2013. our expenses related to our defined contribution plan will increase approximately $ 45 million to $ 55 million in fiscal 2013. the decline in pension cost will occur evenly over fiscal 2013 ; however , the increased defined contribution expenses will occur in the last half of fiscal 2013 when these enhancements go into effect . over the long-term , we believe the changes to both plans will result in reduced volatility of retirement related expenses and a reduction in total retirement related expenses . absent the retirement plan freeze discussed above , net company-sponsored pension costs in fiscal 2013 would have increased $ 106.9 million instead of decreasing $ 26.5 million . from time to time , we may voluntarily withdraw from multiemployer pension plans to minimize or limit our future exposure to these plans . in the last two fiscal years , we voluntary withdrew from several multiemployer plans and recorded provisions of $ 21.9 million in fiscal 2012 and $ 41.5 million in fiscal 2011 . we also measure our expense performance on a cost per case basis , which we seek to align with the gross profit that we are able to generate . for our broadline companies , our cost per case increased $ 0.04 per case as compared to fiscal 2011. these increases primarily related to increased payroll costs and fuel costs discussed above . fiscal 201 1 vs. fiscal 201 0 operating income decreased 2.2 % in fiscal 2011 over fiscal 2010 to $ 1.9 billion , and as a percentage of sales , declined to 4.9 % of sales . the decrease was driven by the absence of the 53 rd week in fiscal 2011 , gross profit dollars growing at a slower rate than sales and operating expenses increasing faster than gross profit partially due to charge of $ 41.5 million from withdrawal s from multiemployer pension plan s . gross profit dollars increased 2.9 % in fiscal 2011 as compared to fiscal 2010 , and operating expenses increased 4.8 % in fiscal 2011. adjusted operating income increased 2.5 % , or $ 50 .8 million , in fiscal 2011 over fiscal 2010 . 21 gross profit dollars increased in fiscal 2011 as compared to fiscal 2010 primarily due to increased sales , partially offset by the negative comparison of the additional week included in fiscal 2010. gross margin was 18.80 % in fiscal 2011 , a decline of 50 basis points from the gross margin of 19.30 % in fiscal 2010. this decline in gross margin was primarily the result of the following factors described in the paragraphs below . first , sysco 's product cost inflation was estimated as inflation of 4.6 % during fiscal 2011. based on our product sales mix for fiscal 2011 , we were most impacted by higher levels of inflation in the dairy , meat and seafood product categories in the range of 10 % to 12 % . our largest selling product category , canned and dry , experienced inflation of 4 % . second , ongoing strategic pricing initiatives in fiscal 2011 lowered our prices to our customers in certain product categories in order to increase sales volumes . these initiatives are being phased in over time and resulted in short-term gross profit declines as a percentage of sales , but we believe will result in long-term gross profit dollar growth due to higher sales volumes and increased market share . we have experienced meaningful year over year volume growth with those items included in the early phases of these programs in the geographies where this program has been implemented . we believe the long-term benefits of these strategic initiatives will result in profitable market share growth . third , gross profit dollars for fiscal 2011 increased as a result of higher fuel surcharges . fuel surcharges were approximately $ 26.0 million higher in fiscal 2011 than in the comparable prior year period due to higher fuel prices incurred during fiscal 2011 and the application of fuel surcharges to a broader customer base for a small portion of the third quarter and the entire fourth quarter . operating expenses for fiscal 2011 increased 4.8 % primarily due to higher pay-related expense , an increase in net company-sponsored pension costs , provisions for withdrawal from multiemployer pension plans and higher fuel costs as compared to the prior year period . the impact of these operating expense increases was partially offset by a decrease in operating expenses of approximately $ 101.4 million resulting from the absence of the 53rd week in fiscal 201 0 . adjusted operating

we have also formed a new dental professional advisory board , made up of four founding members , who have made significant contributions to the specialties of periodontics , implantology , oral surgery , multi-stage restorative therapy , and peri-implantitis therapy . our goal is to refocus our energies on strengthening leadership , worldwide competitiveness and our professional customers and their patients . we completed two private placements in the latter half of 2014 totaling in net proceeds after offering expenses , of approximately $ 46.3 million . we used a portion of the proceeds to repay our lines of credit in july 2014. the remainder of the proceeds is being used for working capital and general corporate purposes . prior to these infusions of capital , the available borrowing capacity on our lines of credit with comerica bank and the net proceeds from the february 2014 equity transaction have been principal sources of liquidity during the first half of 2014. on april 10 , 2014 , we entered into a forbearance agreement that reduced our total aggregate available borrowings to $ 4.0 million . on may 5 , 2014 , june 3 , 2014 and july 9 , 2014 , we amended the forbearance agreement to extend the forbearance periods and paid fees associated with such amendments . on july 28 , 2014 , we paid in full all amounts due under the revolving lines of credit , including principal , accrued interest , and fees which totaled , in the aggregate , approximately $ 2.9 million , and the credit agreements were terminated . further discussion of the amendments is included in note 5 to the consolidated financial statements in part iv , item 15 of this annual report on form 10-k , which is incorporated herein by reference . 40 critical accounting policies the preparation of consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states requires us to make judgments , assumptions , and estimates that affect the amounts reported . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our direct sales force and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . we record revenue based on four basic criteria that must be met before revenue can be recognized : ( i ) persuasive evidence of an arrangement exists ; ( ii ) delivery has occurred and title and the risks and rewards of ownership have been transferred to our customer , or services have been rendered ; ( iii ) the price is fixed or determinable ; and ( iv ) collectability is reasonably assured . revenue is recorded for all sales upon shipment assuming all other revenue recognition criteria are met . sales of our laser systems include separate deliverables consisting of the product , disposables used with the laser systems , installation , and training . we apply the relative selling price method , which requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method . this requires us to use estimated selling prices of each of the deliverables in the total arrangement . the sum of those prices is then compared to the arrangement , and any difference is applied to the separate deliverable ratably . this method also establishes a selling price hierarchy for determining the selling price of a deliverable , which includes : ( i ) vendor-specific objective evidence ( “ vsoe ” ) , if available , ( ii ) third-party evidence if vsoe is not available , and ( iii ) estimated selling price if neither vsoe nor third-party evidence is available . vsoe is determined based on the value we sell the undelivered element to a customer as a stand-alone product . revenue attributable to the undelivered elements is included in deferred revenue when the product is shipped and is recognized when the related service is performed . disposables not shipped at time of sale and installation services are typically shipped or installed within 30 days . training is included in deferred revenue when the product is shipped and is recognized when the related service is performed or upon the approximate expiration of time offered under the agreement . the adoption of the relative selling price method does not significantly change the value of revenue recognized . key judgments related to our revenue recognition include the collectability of payment from the customer , the satisfaction of all elements of the arrangement having been delivered , and that no additional customer credits and discounts are needed . we evaluate a customer 's credit-worthiness prior to the shipment of the product . based on our assessment of the available credit information , we may determine the credit risk is higher than normally acceptable , and we will either decline the purchase or defer the revenue until payment is reasonably assured . future obligations required at the time of sale may also cause us to defer the revenue until the obligation is satisfied . although all sales are final , we accept returns of products in certain , limited circumstances and record a provision for sales returns based on historical experience concurrent with the recognition of revenue . the sales returns allowance is recorded as a reduction of accounts receivable and revenue . story_separator_special_tag in connection with our initiative to measure and improve customer satisfaction , the warranty for waterlase systems purchased after january 1 , 2014 was extended from one year to two years , which added $ 519,000 to the cost of revenue during fiscal 2014. in the third quarter of fiscal 2013 , we recorded a provision of $ 1.0 million for excess and obsolete inventory related to negative market trends for certain products and the decreased velocity of certain elements of our inventory at that time . as a result , cost of revenue as a percentage of net revenue , remained consistent between fiscal 2014 and fiscal 2013 despite the decline in sales . gross profit . gross profit for fiscal 2014 was $ 18.2 million , or 38 % of net revenue , a decrease of approximately $ 3.4 million , or 16 % , as compared with gross profit of $ 21.5 million , or 38 % of net revenue , for fiscal 2013. gross profit for fiscal 2014 , as a percentage of net revenue , was consistent with fiscal 2013. operating expenses . operating expenses for fiscal 2014 were $ 36.1 million , or 76 % of net revenue , an increase of approximately $ 3.6 million , or 11 % , as compared with $ 32.5 million , or 58 % of net revenue , for fiscal 2013. we expect that operating expenses as a percentage of net revenue will decrease for the year ending december 31 , 2015 ( “ fiscal 2015 ” ) . the year-over-year increase in expense is explained in the following expense categories : 45 sales and marketing expense . sales and marketing expenses for fiscal 2014 decreased by $ 2.3 million , or 12 % , to $ 16.4 million , or 34 % of net revenue , as compared with $ 18.7 million , or 33 % of net revenue , for fiscal 2013. the decrease was primarily a result of decreased convention related expenses of $ 1.3 million , decreased commission expenses of $ 938,000 , and decreased media and advertising expenses of $ 923,000 , partially offset by increased payroll and consulting related expenses of $ 699,000. the mid-year shareholder litigation brought distractions and disruptions within management and the marketplace in connection with such litigation , as well as a lack of sales management . due to the working capital required for legal expenditures and professional fees in connection with the shareholder litigation , management made the decision to reduce sales and marketing expenditures . beginning in the second half of 2014 , we appointed new key personnel to lead our sales and marketing department , including a new senior vice president of worldwide sales and account management as well as a new vice president and chief marketing officer . furthermore , in the fourth quarter of 2014 , we enhanced our sales force domestically and internationally . as we continue to transform and sustain growth , we expect sales and marketing expenses to increase in fiscal 2015. general and administrative expense . general and administrative expenses for fiscal 2014 increased by $ 5.5 million , or 58 % , to $ 14.9 million , or 31 % of net revenue , as compared with $ 9.4 million , or 17 % of net revenue , for fiscal 2013. the increase to general and administrative expenses was primarily due to increased legal expenses and professional fees of $ 4.2 million , increased payroll and consulting related expenses of $ 520,000 , and an increase to our provision for doubtful accounts of $ 1.0 million , partially offset by decreased patent and patent defense costs of $ 297,000. we incurred legal expenses and professional fees of approximately $ 4.3 million at the direction of our former chairman and ceo in the shareholder litigation brought by oracle to resolve the dispute over our corporate governance and the composition of our board , as well as the proxy contest and new litigation , brought by the former chairman and ceo in july 2014 , which litigation was subsequently dismissed . we believe that the legal expenses and professional fees we incurred in 2014 are atypical and expect these expenses to decrease in fiscal 2015. engineering and development expense . engineering and development expenses for fiscal 2014 increased by $ 548,000 , or 14 % , to $ 4.6 million , or 10 % of net revenue , as compared with $ 4.0 million , or 7 % of net revenue , for fiscal 2013. the increase was primarily related to increased payroll , consulting and temporary labor expenses of $ 524,000 resulting from our efforts to accelerate innovation of our products and technologies beginning in the third quarter of fiscal 2014. we expect to increase our investment in engineering and development as we continue our efforts in new product development in the future . excise tax expense . beginning in 2013 , the affordable care act imposed a 2.3 % medical device excise tax on certain product sales to customers located in the u.s. excise tax expenses for fiscal 2014 was $ 307,000 , or 1 % of net revenue , as compared with $ 438,000 , or 1 % of net revenue , for fiscal 2013. the decrease of $ 131,000 , or 30 % , was directly associated with our decreased sales in the u.s. non-operating income ( loss ) ( loss ) gain on foreign currency transactions . we recognized a $ 415,000 loss on foreign currency transactions for fiscal 2014 compared to a $ 50,000 loss for fiscal 2013 due to exchange rate fluctuations primarily between the u.s. dollar and the euro . during fiscal 2014 , the euro fell approximately 12 % in translation value against the u.s. dollar . interest expense , net . interest expense consists primarily of interest on our revolving credit facilities , amortization of debt issuance costs and

liquidity and capital resources at december 31 , 2014 , we had approximately $ 31.6 million in cash and cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 30.1 million from december 31 , 2013 was primarily due to cash provided by financing activities of $ 46.8 million , partially offset by net cash used in operating and investing activities of $ 16.2 million and $ 197,000 , respectively , and the effect of exchange rates on cash of $ 234,000. at december 31 , 2014 , we had approximately $ 38.6 million in working capital . our principal sources of liquidity at december 31 , 2014 , consisted of approximately $ 31.6 million in cash and cash equivalents and $ 9.0 million of net accounts receivable . on november 7 , 2014 , we completed a private placement with several institutional and individual investors , including certain of our directors and officers , under which we agreed to sell an aggregate of 14,162,873 unregistered shares of our common stock at the price of $ 2.39 per share , the closing price of our common stock on november 3 , 2014 , and warrants to purchase up to an aggregate of 9,205,862 unregistered shares of our common stock at an exercise price of $ 4.00 per share . gross proceeds from the sale were $ 35.0 million , and net proceeds , after offering expenses of approximately $ 235,000 , were approximately $ 34.8 million . the warrants become exercisable on may 7 , 2015 , six months after the closing of the private placement , and have a term of three years from the date of issuance . the proceeds are being used for working capital and general corporate purposes . on july 22 , 2014 , we entered into a private placement with several institutional and individual investors , and several of our directors and officers , wherein we sold 6,250,000 unregistered shares of common stock at a price of $ 1.92 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. ```liquidity and capital resources at december 31 , 2014 , we had approximately $ 31.6 million in cash and cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 30.1 million from december 31 , 2013 was primarily due to cash provided by financing activities of $ 46.8 million , partially offset by net cash used in operating and investing activities of $ 16.2 million and $ 197,000 , respectively , and the effect of exchange rates on cash of $ 234,000. at december 31 , 2014 , we had approximately $ 38.6 million in working capital . our principal sources of liquidity at december 31 , 2014 , consisted of approximately $ 31.6 million in cash and cash equivalents and $ 9.0 million of net accounts receivable . on november 7 , 2014 , we completed a private placement with several institutional and individual investors , including certain of our directors and officers , under which we agreed to sell an aggregate of 14,162,873 unregistered shares of our common stock at the price of $ 2.39 per share , the closing price of our common stock on november 3 , 2014 , and warrants to purchase up to an aggregate of 9,205,862 unregistered shares of our common stock at an exercise price of $ 4.00 per share . gross proceeds from the sale were $ 35.0 million , and net proceeds , after offering expenses of approximately $ 235,000 , were approximately $ 34.8 million . the warrants become exercisable on may 7 , 2015 , six months after the closing of the private placement , and have a term of three years from the date of issuance . the proceeds are being used for working capital and general corporate purposes . on july 22 , 2014 , we entered into a private placement with several institutional and individual investors , and several of our directors and officers , wherein we sold 6,250,000 unregistered shares of common stock at a price of $ 1.92 per share . ``` Suspicious Activity Report : we have also formed a new dental professional advisory board , made up of four founding members , who have made significant contributions to the specialties of periodontics , implantology , oral surgery , multi-stage restorative therapy , and peri-implantitis therapy . our goal is to refocus our energies on strengthening leadership , worldwide competitiveness and our professional customers and their patients . we completed two private placements in the latter half of 2014 totaling in net proceeds after offering expenses , of approximately $ 46.3 million . we used a portion of the proceeds to repay our lines of credit in july 2014. the remainder of the proceeds is being used for working capital and general corporate purposes . prior to these infusions of capital , the available borrowing capacity on our lines of credit with comerica bank and the net proceeds from the february 2014 equity transaction have been principal sources of liquidity during the first half of 2014. on april 10 , 2014 , we entered into a forbearance agreement that reduced our total aggregate available borrowings to $ 4.0 million . on may 5 , 2014 , june 3 , 2014 and july 9 , 2014 , we amended the forbearance agreement to extend the forbearance periods and paid fees associated with such amendments . on july 28 , 2014 , we paid in full all amounts due under the revolving lines of credit , including principal , accrued interest , and fees which totaled , in the aggregate , approximately $ 2.9 million , and the credit agreements were terminated . further discussion of the amendments is included in note 5 to the consolidated financial statements in part iv , item 15 of this annual report on form 10-k , which is incorporated herein by reference . 40 critical accounting policies the preparation of consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states requires us to make judgments , assumptions , and estimates that affect the amounts reported . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our direct sales force and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . we record revenue based on four basic criteria that must be met before revenue can be recognized : ( i ) persuasive evidence of an arrangement exists ; ( ii ) delivery has occurred and title and the risks and rewards of ownership have been transferred to our customer , or services have been rendered ; ( iii ) the price is fixed or determinable ; and ( iv ) collectability is reasonably assured . revenue is recorded for all sales upon shipment assuming all other revenue recognition criteria are met . sales of our laser systems include separate deliverables consisting of the product , disposables used with the laser systems , installation , and training . we apply the relative selling price method , which requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method . this requires us to use estimated selling prices of each of the deliverables in the total arrangement . the sum of those prices is then compared to the arrangement , and any difference is applied to the separate deliverable ratably . this method also establishes a selling price hierarchy for determining the selling price of a deliverable , which includes : ( i ) vendor-specific objective evidence ( “ vsoe ” ) , if available , ( ii ) third-party evidence if vsoe is not available , and ( iii ) estimated selling price if neither vsoe nor third-party evidence is available . vsoe is determined based on the value we sell the undelivered element to a customer as a stand-alone product . revenue attributable to the undelivered elements is included in deferred revenue when the product is shipped and is recognized when the related service is performed . disposables not shipped at time of sale and installation services are typically shipped or installed within 30 days . training is included in deferred revenue when the product is shipped and is recognized when the related service is performed or upon the approximate expiration of time offered under the agreement . the adoption of the relative selling price method does not significantly change the value of revenue recognized . key judgments related to our revenue recognition include the collectability of payment from the customer , the satisfaction of all elements of the arrangement having been delivered , and that no additional customer credits and discounts are needed . we evaluate a customer 's credit-worthiness prior to the shipment of the product . based on our assessment of the available credit information , we may determine the credit risk is higher than normally acceptable , and we will either decline the purchase or defer the revenue until payment is reasonably assured . future obligations required at the time of sale may also cause us to defer the revenue until the obligation is satisfied . although all sales are final , we accept returns of products in certain , limited circumstances and record a provision for sales returns based on historical experience concurrent with the recognition of revenue . the sales returns allowance is recorded as a reduction of accounts receivable and revenue . story_separator_special_tag in connection with our initiative to measure and improve customer satisfaction , the warranty for waterlase systems purchased after january 1 , 2014 was extended from one year to two years , which added $ 519,000 to the cost of revenue during fiscal 2014. in the third quarter of fiscal 2013 , we recorded a provision of $ 1.0 million for excess and obsolete inventory related to negative market trends for certain products and the decreased velocity of certain elements of our inventory at that time . as a result , cost of revenue as a percentage of net revenue , remained consistent between fiscal 2014 and fiscal 2013 despite the decline in sales . gross profit . gross profit for fiscal 2014 was $ 18.2 million , or 38 % of net revenue , a decrease of approximately $ 3.4 million , or 16 % , as compared with gross profit of $ 21.5 million , or 38 % of net revenue , for fiscal 2013. gross profit for fiscal 2014 , as a percentage of net revenue , was consistent with fiscal 2013. operating expenses . operating expenses for fiscal 2014 were $ 36.1 million , or 76 % of net revenue , an increase of approximately $ 3.6 million , or 11 % , as compared with $ 32.5 million , or 58 % of net revenue , for fiscal 2013. we expect that operating expenses as a percentage of net revenue will decrease for the year ending december 31 , 2015 ( “ fiscal 2015 ” ) . the year-over-year increase in expense is explained in the following expense categories : 45 sales and marketing expense . sales and marketing expenses for fiscal 2014 decreased by $ 2.3 million , or 12 % , to $ 16.4 million , or 34 % of net revenue , as compared with $ 18.7 million , or 33 % of net revenue , for fiscal 2013. the decrease was primarily a result of decreased convention related expenses of $ 1.3 million , decreased commission expenses of $ 938,000 , and decreased media and advertising expenses of $ 923,000 , partially offset by increased payroll and consulting related expenses of $ 699,000. the mid-year shareholder litigation brought distractions and disruptions within management and the marketplace in connection with such litigation , as well as a lack of sales management . due to the working capital required for legal expenditures and professional fees in connection with the shareholder litigation , management made the decision to reduce sales and marketing expenditures . beginning in the second half of 2014 , we appointed new key personnel to lead our sales and marketing department , including a new senior vice president of worldwide sales and account management as well as a new vice president and chief marketing officer . furthermore , in the fourth quarter of 2014 , we enhanced our sales force domestically and internationally . as we continue to transform and sustain growth , we expect sales and marketing expenses to increase in fiscal 2015. general and administrative expense . general and administrative expenses for fiscal 2014 increased by $ 5.5 million , or 58 % , to $ 14.9 million , or 31 % of net revenue , as compared with $ 9.4 million , or 17 % of net revenue , for fiscal 2013. the increase to general and administrative expenses was primarily due to increased legal expenses and professional fees of $ 4.2 million , increased payroll and consulting related expenses of $ 520,000 , and an increase to our provision for doubtful accounts of $ 1.0 million , partially offset by decreased patent and patent defense costs of $ 297,000. we incurred legal expenses and professional fees of approximately $ 4.3 million at the direction of our former chairman and ceo in the shareholder litigation brought by oracle to resolve the dispute over our corporate governance and the composition of our board , as well as the proxy contest and new litigation , brought by the former chairman and ceo in july 2014 , which litigation was subsequently dismissed . we believe that the legal expenses and professional fees we incurred in 2014 are atypical and expect these expenses to decrease in fiscal 2015. engineering and development expense . engineering and development expenses for fiscal 2014 increased by $ 548,000 , or 14 % , to $ 4.6 million , or 10 % of net revenue , as compared with $ 4.0 million , or 7 % of net revenue , for fiscal 2013. the increase was primarily related to increased payroll , consulting and temporary labor expenses of $ 524,000 resulting from our efforts to accelerate innovation of our products and technologies beginning in the third quarter of fiscal 2014. we expect to increase our investment in engineering and development as we continue our efforts in new product development in the future . excise tax expense . beginning in 2013 , the affordable care act imposed a 2.3 % medical device excise tax on certain product sales to customers located in the u.s. excise tax expenses for fiscal 2014 was $ 307,000 , or 1 % of net revenue , as compared with $ 438,000 , or 1 % of net revenue , for fiscal 2013. the decrease of $ 131,000 , or 30 % , was directly associated with our decreased sales in the u.s. non-operating income ( loss ) ( loss ) gain on foreign currency transactions . we recognized a $ 415,000 loss on foreign currency transactions for fiscal 2014 compared to a $ 50,000 loss for fiscal 2013 due to exchange rate fluctuations primarily between the u.s. dollar and the euro . during fiscal 2014 , the euro fell approximately 12 % in translation value against the u.s. dollar . interest expense , net . interest expense consists primarily of interest on our revolving credit facilities , amortization of debt issuance costs and

the general partner has established procedures to actively monitor market risk and minimize credit risk , although there can be no assurance that it will , in fact , succeed in story_separator_special_tag story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` width : 100 % ; font : 10pt times new roman , times , serif `` > may the fund finished 7.28 % lower this month with losses from energy products , foreign exchange , metals , equity indices and agricultural commodities offsetting profits from interest rate instruments . an abrupt sell-off in physical commodities early in the month sent energy and precious metals prices sharply lower . the most significant losses in these sectors came from long positions in light crude , brent crude , silver and aluminum . reports that greece was considering leaving the euro zone sparked a flight to safety that drove global indices lower and interest rate instruments and the u.s. dollar sharply higher . while the market moves were profitable for the fund 's long positions in interest rate instruments , they went against the fund 's long positions in global indices and several foreign currencies which generated losses . in agricultural commodities , losses were mostly in coffee , corn and sugar . june the fund finished 4.32 % lower this month with losses in equity indices , energies , agricultural commodities and metals offsetting profits from currencies . although the markets were relatively quiet during the month , concerns over greece 's debt and the end of the federal reserve 's quantitative easing program weighed heavily in the news . a modest flight to quality sent equity prices lower and interest rate instruments higher for a second month in a row . the fall in equity prices went against the fund 's long positions . over the past several weeks , the fund 's trading advisor has substantially reduced its long equity positions , reducing the impact . the most significant profits came from positions in foreign currencies , where the fund 's short positions benefited from price depreciation in the british pound relative to several other major currencies . in commodities , improved supply coupled with weaker confidence in the global economy sent prices lower . the decline in commodity prices was led by a substantial drop in energies prices and agricultural commodities , both of which went against the fund 's long positions . july the fund finished 4.00 % higher this month with profits in interest rate instruments , currencies , metals , agricultural commodities and energy products , offsetting losses from equity indices . the fund 's most significant gains came from its long positions in interest rate instruments . concerns over a weak u.s. economy and persistent debt issues in europe helped push global bond prices higher , benefiting the fund 's long positions . in metals , rising prices generated profits for the fund 's long gold positions , while a weaker dollar benefited some of the fund 's long positions in major foreign currencies , including the swiss franc , japanese yen and australian dollar . equity indices continued to move sideways without a strong trend , generating some losses . in the agricultural commodity sector , the fund 's long positions in sugar profited from its sustained upward price trend for that commodity . august the fund finished 6.36 % lower this month with losses in currencies , equity indices , energy products , agricultural commodities and metals offsetting profits in interest rate instruments . the fund 's gains for the month came from its positions in interest rate instruments . persistent concerns over weak european and u.s. economies coupled with lingering debt concerns in europe , pushed global bond prices higher , generating profits for the fund 's long positions . in currencies , the largest losses came from sharp price swings in the british pound that went against the fund 's positions . following a sharp sell-off in equity markets during the first week of august , the fund 's trading advisor exited their remaining long positions and went short . for the remainder of the month however , many equity markets bounced from their lows , moving against the fund 's new positions that generated losses in that sector . in metals , the fund generated significant profits from long positions in gold although those profits were offset by losses in industrial metals , especially copper . september the fund finished 3.36 % lower this month as profits from interest rate instruments , metals and energy products were offset by losses in agricultural commodities and currencies . both the equity and interest rate sectors were impacted by concerns about the global economy and sovereign debt issues that are playing out in europe and the u.s. by the end of the month , interest rates were lower , which generated profits for the fund 's long positions in interest rate instruments . in metals , profits from short positions in industrial metals offset losses from long positions in precious metals . in agricultural commodities , a sell-off in soybean and corn prices generated losses for the fund 's long positions . in currencies , sharp declines in the swiss franc , australian dollar , euro and british pound went against the funds positions , generating losses . 12 october the fund was down 5.22 % for the month . october proved to be difficult month for the fund in the face of a near sea change in market sentiment from a risk-averse to a risk-seeking mode . story_separator_special_tag in the energy sector , the fund 's short positions in natural gas profited from its sustained downward trend . the metals sector benefited from long positions in precious metals , including gold and platinum . 14 september the fund finished 2.13 % higher this month with profits in equity indices , agricultural commodities , metals and currencies offsetting losses in interest rate instruments and energy . the most significant gains came from long positions in equity indices . global equity prices continued to move higher in september which benefited the fund 's positions . both industrial and precious metals prices trended higher , generating profits for the fund 's long positions in gold , silver and copper . agricultural prices , especially cotton , soybeans and corn , continued to trend higher which added profits from the fund 's long positions . early in the month , interest rate instruments prices fell which generated early losses for the sector . however , prices rallied toward the end of the month after the fed 's comments on quantitative easing . the late rally in interest rate instruments benefited the fund 's long positions , but it was not enough to offset earlier losses . in the energy sector , the fund 's short positions in natural gas profited from a sustained downward trend , but a sharp rise in crude oil went against the fund 's short positions , resulting in a net loss for the sector . october the fund finished higher in october by 4.64 % with profits in four of the six major market sectors . the most significant gains came from long positions in global stock indices driven by upward trends in the dax , s & p 500 , russell 2000 and ftse 100. in currencies , the rise in the japanese yen , australian dollar , mexican peso and new zealand dollar were responsible for generating the most profits from that sector . the combination of rising chinese agricultural imports , lower inventories and a weaker u.s. dollar helped push agricultural commodity prices higher , which benefited the fund 's long positions . corn prices climbed to 2-year high , soybeans reached their highest price since july 2008 , and sugar prices hit a 30-year high . precious metals also trended higher , adding additional profits from that sector . november the fund finished lower in november by 4.19 % as losses from interest rate instruments , currencies and agriculturals offset gains in metals and equity indices . the most significant losses came from the fund 's long positions in interest rates , where price reversals caused by a rise in rates followed growing concerns over irish sovereign debt in europe and its threat to impact other eu nations including portugal and spain . in addition , there was a rise in short term u.s. interest rates that followed the federal reserve 's action of buying u.s. debt instruments in another round of quantitative easing . the net effect was that the fall in prices went against the fund 's widely held long positions . the irish debt crisis also pushed the euro lower relative to other foreign currencies , while the u.s. dollar reversed its downward direction . the sudden reversals in currencies went against the fund 's positions , generating additional losses for the fund . metals , including gold , silver and copper , continued higher this month , generating profits for the fund 's long positions . december fund finished higher in december by 5.91 % with most profits coming from the fund 's positions in foreign currencies . foreign currencies were profitable for the fund , driven by trends in international cross currencies resulting from a decline in the euro and british pound combined with rising australian dollar and japanese yen prices . strong upward trends in the metals markets also fueled profits for the fund 's long positions in copper , silver , gold and aluminum . in agricultural commodities rising prices in coffee , soybeans , corn and sugar each contributed additional profits . finally , there were some gains from the fund 's long positions in equity indices as equity prices continued to trend higher for the past two quarters . interest rate instrument prices went against the fund 's long positions which generated losses . off-balance sheet risk the term “ off-balance sheet risk ” refers to an unrecorded potential liability that , even though it does not appear on the balance sheet , may result in future obligation or loss . the fund trades in futures contracts and is therefore a party to financial instruments with elements of off-balance sheet market and credit risk . in entering into these contracts there exists a risk to the fund , market risk , that such contracts may be significantly influenced by market conditions , such as interest rate volatility , resulting in such contracts being less valuable . if the markets should move against all of the futures interests positions of the fund at the same time , and if the trading advisor was unable to offset futures interest positions of the fund , the fund could lose all of its assets and the limited partners would realize a 100 % loss . the general partner attempts to decrease market risk through maintenance of a margin-to-equity ratio that rarely exceeds 30 % . 15 in addition to subjecting the fund to market risk , upon entering into futures contracts there is a risk that the counterparty will not be able to meet its obligations to the fund . the counterparty for futures contracts traded in the u.s. and on most foreign exchanges is the clearinghouse associated with such exchange . in general , clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial burden resulting from the non-performance by one of their members and , as such , should

cash management effective april 2011 , the fund engaged j.p. morgan investment management , inc. and principal global investors , llc ( collectively , the “ cash managers ” ) to provide cash management services to the fund . the fund 's objective in retaining the cash managers is to enhance the return on its assets not required to be held by the fund 's brokers to support the fund 's trading . there is no guarantee that the cash managers will achieve returns for the fund , net of fees payable to the cash managers , in excess of the returns previously achieved through the general partner 's efforts and or available through the fund 's brokers , or that the cash managers will avoid a loss of principal on amounts placed under their management . liquidity at december 31 , 2011 , there are no known material trends , demands , commitments , events , or uncertainties at the present time that are reasonably likely to result in the fund 's liquidity increasing or decreasing in any material way . capital resources the fund intends to raise additional capital only through the sale of units , and does not intend to raise any capital through borrowing . due to the nature of the fund 's business , the fund does not contemplate making capital expenditures . the fund does not have , nor does it expect to have , any capital assets . redemptions , exchanges and sales of units in the future will affect the amount of funds available for investments in futures contracts , forward currency contracts and other financial instruments in subsequent periods . it is not possible to estimate the amount , and therefore the impact , of future capital inflows and outflows related to the sale and redemption of units . there are no known material trends , favorable or unfavorable , that would affect , nor any expected material changes to , the fund 's capital resource arrangements at the present time .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash management effective april 2011 , the fund engaged j.p. morgan investment management , inc. and principal global investors , llc ( collectively , the “ cash managers ” ) to provide cash management services to the fund . the fund 's objective in retaining the cash managers is to enhance the return on its assets not required to be held by the fund 's brokers to support the fund 's trading . there is no guarantee that the cash managers will achieve returns for the fund , net of fees payable to the cash managers , in excess of the returns previously achieved through the general partner 's efforts and or available through the fund 's brokers , or that the cash managers will avoid a loss of principal on amounts placed under their management . liquidity at december 31 , 2011 , there are no known material trends , demands , commitments , events , or uncertainties at the present time that are reasonably likely to result in the fund 's liquidity increasing or decreasing in any material way . capital resources the fund intends to raise additional capital only through the sale of units , and does not intend to raise any capital through borrowing . due to the nature of the fund 's business , the fund does not contemplate making capital expenditures . the fund does not have , nor does it expect to have , any capital assets . redemptions , exchanges and sales of units in the future will affect the amount of funds available for investments in futures contracts , forward currency contracts and other financial instruments in subsequent periods . it is not possible to estimate the amount , and therefore the impact , of future capital inflows and outflows related to the sale and redemption of units . there are no known material trends , favorable or unfavorable , that would affect , nor any expected material changes to , the fund 's capital resource arrangements at the present time . ``` Suspicious Activity Report : the general partner has established procedures to actively monitor market risk and minimize credit risk , although there can be no assurance that it will , in fact , succeed in story_separator_special_tag story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` width : 100 % ; font : 10pt times new roman , times , serif `` > may the fund finished 7.28 % lower this month with losses from energy products , foreign exchange , metals , equity indices and agricultural commodities offsetting profits from interest rate instruments . an abrupt sell-off in physical commodities early in the month sent energy and precious metals prices sharply lower . the most significant losses in these sectors came from long positions in light crude , brent crude , silver and aluminum . reports that greece was considering leaving the euro zone sparked a flight to safety that drove global indices lower and interest rate instruments and the u.s. dollar sharply higher . while the market moves were profitable for the fund 's long positions in interest rate instruments , they went against the fund 's long positions in global indices and several foreign currencies which generated losses . in agricultural commodities , losses were mostly in coffee , corn and sugar . june the fund finished 4.32 % lower this month with losses in equity indices , energies , agricultural commodities and metals offsetting profits from currencies . although the markets were relatively quiet during the month , concerns over greece 's debt and the end of the federal reserve 's quantitative easing program weighed heavily in the news . a modest flight to quality sent equity prices lower and interest rate instruments higher for a second month in a row . the fall in equity prices went against the fund 's long positions . over the past several weeks , the fund 's trading advisor has substantially reduced its long equity positions , reducing the impact . the most significant profits came from positions in foreign currencies , where the fund 's short positions benefited from price depreciation in the british pound relative to several other major currencies . in commodities , improved supply coupled with weaker confidence in the global economy sent prices lower . the decline in commodity prices was led by a substantial drop in energies prices and agricultural commodities , both of which went against the fund 's long positions . july the fund finished 4.00 % higher this month with profits in interest rate instruments , currencies , metals , agricultural commodities and energy products , offsetting losses from equity indices . the fund 's most significant gains came from its long positions in interest rate instruments . concerns over a weak u.s. economy and persistent debt issues in europe helped push global bond prices higher , benefiting the fund 's long positions . in metals , rising prices generated profits for the fund 's long gold positions , while a weaker dollar benefited some of the fund 's long positions in major foreign currencies , including the swiss franc , japanese yen and australian dollar . equity indices continued to move sideways without a strong trend , generating some losses . in the agricultural commodity sector , the fund 's long positions in sugar profited from its sustained upward price trend for that commodity . august the fund finished 6.36 % lower this month with losses in currencies , equity indices , energy products , agricultural commodities and metals offsetting profits in interest rate instruments . the fund 's gains for the month came from its positions in interest rate instruments . persistent concerns over weak european and u.s. economies coupled with lingering debt concerns in europe , pushed global bond prices higher , generating profits for the fund 's long positions . in currencies , the largest losses came from sharp price swings in the british pound that went against the fund 's positions . following a sharp sell-off in equity markets during the first week of august , the fund 's trading advisor exited their remaining long positions and went short . for the remainder of the month however , many equity markets bounced from their lows , moving against the fund 's new positions that generated losses in that sector . in metals , the fund generated significant profits from long positions in gold although those profits were offset by losses in industrial metals , especially copper . september the fund finished 3.36 % lower this month as profits from interest rate instruments , metals and energy products were offset by losses in agricultural commodities and currencies . both the equity and interest rate sectors were impacted by concerns about the global economy and sovereign debt issues that are playing out in europe and the u.s. by the end of the month , interest rates were lower , which generated profits for the fund 's long positions in interest rate instruments . in metals , profits from short positions in industrial metals offset losses from long positions in precious metals . in agricultural commodities , a sell-off in soybean and corn prices generated losses for the fund 's long positions . in currencies , sharp declines in the swiss franc , australian dollar , euro and british pound went against the funds positions , generating losses . 12 october the fund was down 5.22 % for the month . october proved to be difficult month for the fund in the face of a near sea change in market sentiment from a risk-averse to a risk-seeking mode . story_separator_special_tag in the energy sector , the fund 's short positions in natural gas profited from its sustained downward trend . the metals sector benefited from long positions in precious metals , including gold and platinum . 14 september the fund finished 2.13 % higher this month with profits in equity indices , agricultural commodities , metals and currencies offsetting losses in interest rate instruments and energy . the most significant gains came from long positions in equity indices . global equity prices continued to move higher in september which benefited the fund 's positions . both industrial and precious metals prices trended higher , generating profits for the fund 's long positions in gold , silver and copper . agricultural prices , especially cotton , soybeans and corn , continued to trend higher which added profits from the fund 's long positions . early in the month , interest rate instruments prices fell which generated early losses for the sector . however , prices rallied toward the end of the month after the fed 's comments on quantitative easing . the late rally in interest rate instruments benefited the fund 's long positions , but it was not enough to offset earlier losses . in the energy sector , the fund 's short positions in natural gas profited from a sustained downward trend , but a sharp rise in crude oil went against the fund 's short positions , resulting in a net loss for the sector . october the fund finished higher in october by 4.64 % with profits in four of the six major market sectors . the most significant gains came from long positions in global stock indices driven by upward trends in the dax , s & p 500 , russell 2000 and ftse 100. in currencies , the rise in the japanese yen , australian dollar , mexican peso and new zealand dollar were responsible for generating the most profits from that sector . the combination of rising chinese agricultural imports , lower inventories and a weaker u.s. dollar helped push agricultural commodity prices higher , which benefited the fund 's long positions . corn prices climbed to 2-year high , soybeans reached their highest price since july 2008 , and sugar prices hit a 30-year high . precious metals also trended higher , adding additional profits from that sector . november the fund finished lower in november by 4.19 % as losses from interest rate instruments , currencies and agriculturals offset gains in metals and equity indices . the most significant losses came from the fund 's long positions in interest rates , where price reversals caused by a rise in rates followed growing concerns over irish sovereign debt in europe and its threat to impact other eu nations including portugal and spain . in addition , there was a rise in short term u.s. interest rates that followed the federal reserve 's action of buying u.s. debt instruments in another round of quantitative easing . the net effect was that the fall in prices went against the fund 's widely held long positions . the irish debt crisis also pushed the euro lower relative to other foreign currencies , while the u.s. dollar reversed its downward direction . the sudden reversals in currencies went against the fund 's positions , generating additional losses for the fund . metals , including gold , silver and copper , continued higher this month , generating profits for the fund 's long positions . december fund finished higher in december by 5.91 % with most profits coming from the fund 's positions in foreign currencies . foreign currencies were profitable for the fund , driven by trends in international cross currencies resulting from a decline in the euro and british pound combined with rising australian dollar and japanese yen prices . strong upward trends in the metals markets also fueled profits for the fund 's long positions in copper , silver , gold and aluminum . in agricultural commodities rising prices in coffee , soybeans , corn and sugar each contributed additional profits . finally , there were some gains from the fund 's long positions in equity indices as equity prices continued to trend higher for the past two quarters . interest rate instrument prices went against the fund 's long positions which generated losses . off-balance sheet risk the term “ off-balance sheet risk ” refers to an unrecorded potential liability that , even though it does not appear on the balance sheet , may result in future obligation or loss . the fund trades in futures contracts and is therefore a party to financial instruments with elements of off-balance sheet market and credit risk . in entering into these contracts there exists a risk to the fund , market risk , that such contracts may be significantly influenced by market conditions , such as interest rate volatility , resulting in such contracts being less valuable . if the markets should move against all of the futures interests positions of the fund at the same time , and if the trading advisor was unable to offset futures interest positions of the fund , the fund could lose all of its assets and the limited partners would realize a 100 % loss . the general partner attempts to decrease market risk through maintenance of a margin-to-equity ratio that rarely exceeds 30 % . 15 in addition to subjecting the fund to market risk , upon entering into futures contracts there is a risk that the counterparty will not be able to meet its obligations to the fund . the counterparty for futures contracts traded in the u.s. and on most foreign exchanges is the clearinghouse associated with such exchange . in general , clearinghouses are backed by the corporate members of the clearinghouse who are required to share any financial burden resulting from the non-performance by one of their members and , as such , should

pivotal software , inc. ( “ pivotal ” , previously known as “ gopivotal , inc. ” ) during the year , we transferred certain assets and liabilities to pivotal in exchange for an ownership interest in pivotal of approximately 28 % as of december 31 , 2013 . in connection with this transaction , we transferred approximately 415 of our employees to pivotal during 2013. we also entered into an agreement with pivotal pursuant to which we are acting as the selling agent of the products and services we contributed to pivotal in exchange for a customary agency fee . we have also agreed to provide various transition services to pivotal , for which we are reimbursed for our costs . 42 beginning with the second quarter of 2013 , substantially all revenues and costs associated with our contribution to pivotal have been eliminated from our consolidated statements of income . while the contribution to pivotal has had a negative impact on our revenue growth rate compared to 2012 , our 2013 operating margin has been positively impacted due to the elimination of pivotal related costs from our consolidated statements of income . results of operations revenues our revenues in the years ended 2013 , 2012 and 2011 were as follows : replace_table_token_4_th license revenues license revenues in 2013 and 2012 were up 9 % and 13 % , respectively . our revenue growth rate for both periods was due to overall increased global sales volumes in all major geographies , slightly offset by the disposition of certain business lines under our realignment plan and the contribution to pivotal . during 2013 , we expanded the sales of product suites , such as our vcloud suite , that integrate advanced management and automation features with our vsphere cloud infrastructure platform and which are primarily sold through elas . our growth in ela volume across all geographies contributed to our overall increase in license revenues during 2013 compared to 2012. the growth in our ela business is also attributing , in part , to lower growth rates of our non-ela or transactional business . our revenue growth rate was negatively impacted by the contribution to pivotal and the disposition of other net assets under our realignment plan . license revenues related to pivotal and all dispositions under our realignment plan were $ 18 in 2013 and $ 56 in 2012. services revenues in 2013 and 2012 , software maintenance revenues benefited from strong renewals , multi-year software maintenance contracts sold in previous periods , and additional maintenance contracts sold in conjunction with new software license sales . in each year presented , customers bought , on average , more than 24 months of support and maintenance with each new license purchased , which we believe illustrates our customers ' commitment to vmware as a core element of their data center architecture and hybrid cloud strategy . in 2013 and 2012 , professional services revenues increased as growth in our license sales and installed-base led to additional demand for our professional services . our revenue growth rate was negatively impacted by the contribution to pivotal and the disposition of other net assets under our realignment plan . service revenues related to pivotal and all dispositions under our realignment plan were $ 37 in 2013 and $ 143 in 2012. foreign currency we invoice and collect in the euro , the british pound , the japanese yen , the australian dollar and chinese renminbi in their respective regions . as a result , our total revenues are affected by changes in the value of the u.s. dollar against these currencies . foreign currencies did not have a material impact when comparing license revenues in 2013 and 2012 to their respective prior years . 43 unearned revenues our unearned revenues as of december 31 , 2013 and december 31 , 2012 were as follows : replace_table_token_5_th unearned license revenues are generally recognized upon delivery of existing or future products or services , or will be recognized ratably over the term of the arrangement . future products include , in some cases , emerging products that are offered as part of product promotions where the purchaser of an existing product is entitled to receive a promotional product at no additional charge and to the extent promotional products have not been delivered and vendor-specific objective evidence ( “ vsoe ” ) of fair value can not be established , the revenue for the entire order is deferred until such time as all product delivery obligations have been fulfilled . increasingly , unearned license revenue may also be recognized ratably , which is generally due to a right to receive unspecified future products or a lack of vsoe of fair value on the software maintenance element of the arrangement . the amount of total unearned license revenues may vary over periods due to the type and level of promotions offered , the portion of license contracts sold with a ratable recognition element , and when promotional products are delivered upon general availability . unearned software maintenance revenues are attributable to our maintenance contracts and are generally recognized ratably , typically over terms from one to five years with a weighted-average remaining term at december 31 , 2013 of approximately 2.0 years . unearned professional services revenues result primarily from prepaid professional services , including training , and are generally recognized as the services are delivered . cost of license and services revenues , and operating expenses cost of license revenues our cost of license revenues principally consist of the cost of fulfillment of our software , royalty costs in connection with technology licensed from third-party providers and amortization of intangible assets and capitalized software . the cost of fulfillment of our software includes it development efforts , personnel costs and related overhead associated with the physical and electronic delivery of our software products . story_separator_special_tag during the year ended december 31 , 2013 , we provided transition services of $ 12 that are reimbursable by pivotal and which were recorded as a reduction to the costs we incurred . additionally , we purchased products and services for internal use from pivotal for $ 7 in the year ended december 31 , 2013 . as of december 31 , 2013 , our ownership interest in pivotal is 28 % as a result of investments made by a third-party strategic investor . the book value of all contributed assets and the liabilities assumed by pivotal , with the exception of intangible assets and goodwill , was based on the book values of those assets and liabilities specific to those particular products and services . for intangible assets and goodwill , the book value contributed was based on the relative fair value of the contributed assets applicable to pivotal . due to/from related parties , net as a result of the related-party transactions with emc and pivotal described above , amounts due to and from related parties , net as of december 31 , 2013 and 2012 consisted of the following : replace_table_token_13_th balances due to or from related parties , which are unrelated to tax obligations , are generally settled in cash within 60 days of each quarter-end . the timing of the tax payments due to and from emc is governed by the tax sharing agreement with emc . see note l to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k for further information . by nature of emc 's majority ownership of us , the amounts we recorded for our intercompany transactions with emc may not be considered arm 's length with an unrelated third party . therefore the financial statements included herein may not necessarily reflect our results of operations , financial position and cash flows had we engaged in such transactions with an unrelated third party during all periods presented . accordingly , our historical results should not be relied upon as an indicator of our future performance as a stand-alone company . on january 21 , 2014 , in connection with our agreement to acquire airwatch holding , the sole member and equity holder of airwatch , we and emc entered into a note exchange agreement providing for the issuance of three promissory notes in the aggregate principal amount of $ 1,500 . see note r to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k for further information . 49 liquidity and capital resources at december 31 , 2013 and 2012 , we held cash , cash equivalents and short-term investments as follows : replace_table_token_14_th as of december 31 , 2013 , we held a diversified portfolio of money market funds and fixed income securities totaling $ 5,692 . our fixed income securities are denominated in u.s. dollars and consisted of highly liquid debt instruments of the u.s. government and its agencies , u.s. municipal obligations , and u.s. and foreign corporate debt securities . we limit the amount of our domestic and international investments with any single issuer and any single financial institution , and also monitor the diversity of the portfolio , thereby diversifying the credit risk . as of december 31 , 2013 , our total cash , cash equivalents and short-term investments were $ 6,175 , of which $ 4,146 was held outside the u.s. if these overseas funds were needed for our operations in the u.s. , we would be required to accrue and pay u.s. taxes on related undistributed earnings to repatriate these funds . however , our intent is to indefinitely reinvest our non-u.s. earnings in our foreign operations and our current plans do not demonstrate a need to repatriate them to fund our u.s. operations . we expect that cash generated by operations will be used as our primary source of liquidity . we also believe that existing cash and cash equivalents , together with any cash generated from operations will be sufficient to meet normal operating requirements for at least the next twelve months . while we believe our existing cash and cash equivalents and cash to be generated by operations will be sufficient to meet our normal operating requirements , our overall level of cash needs may be impacted by the number and size of acquisitions and investments we consummate and the amount of stock we buy back in 2013. on january 21 , 2014 , in connection with our agreement to acquire a.w.s . holding , llc ( “ airwatch holding ” ) , the sole member and equity holder of airwatch llc ( “ airwatch ” ) , we and emc entered into a note exchange agreement providing for the issuance of three promissory notes in the aggregate principal amount of $ 1,500 . please see below for further details regarding these promissory notes . should we require additional liquidity , we may seek to arrange debt financing or enter into credit facilities . our cash flows for years ended 2013 , 2012 and 2011 were as follows : replace_table_token_15_th operating activities story_separator_special_tag months . critical accounting policies our consolidated financial statements are based upon the selection and application of accounting principles generally accepted in the united states of america that require us to make estimates and assumptions about future events that affect the amounts reported in our financial statements and the accompanying notes . future events and their effects can not be determined with certainty . therefore , the determination of estimates requires the exercise of judgment . actual results could differ from those estimates , and any such differences may be material to our financial statements . we believe that the critical accounting policies set forth below may involve a higher degree of judgment and complexity in their application than our other significant accounting policies and represent the critical accounting

cash provided by operating activities increased by $ 638 in 2013 from 2012 primarily as a result of increased profitability . the net effect of non-cash items was an increase of $ 197 primarily due to movements associated with excess tax benefits from stock-based compensation and deferred taxes , net . cash provided by operating activities decreased by $ 128 in 2012 from 2011 . the decrease was primarily driven by the timing of tax payments we received from emc under the tax sharing agreement . under the tax sharing agreement , emc is obligated to pay us an amount equal to the tax benefit generated by us and we are obligated to pay emc an amount equal to the tax expense generated by us that emc may recognize in a given year on its consolidated tax return . in 2012 , we received $ 19 from emc under the tax sharing agreement , but in 2011 we benefited from the net receipt of $ 302 , which included amounts primarily related to refunds received for both the 2011 and 2010 tax years . investing activities cash used in investing activities is generally attributable to the purchase of fixed income securities , business acquisitions , and capital expenditures . cash provided by investing activities is also impacted by the timing of purchases , sales and maturities of our available-for-sale securities . 50 cash used for business acquisitions during 2013 and 2011 compared to 2012 , was significantly lower as a result of our acquisition of nicira , inc. , which occurred in 2012. net cash used in investing activities during 2012 compared to 2011 was also impacted by a reduction in capitalized software development costs and purchase of leasehold interest . financing activities net cash used in financing activities during 2013 increased compared to 2012 primarily as a result of the decrease in excess tax benefits from stock-based compensation and a decrease in proceeds from issuance of common stock . during 2013 , excess tax benefits from stock-based compensation were $ 70 compared to $ 138 during 2012 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 by $ 638 in 2013 from 2012 primarily as a result of increased profitability . the net effect of non-cash items was an increase of $ 197 primarily due to movements associated with excess tax benefits from stock-based compensation and deferred taxes , net . cash provided by operating activities decreased by $ 128 in 2012 from 2011 . the decrease was primarily driven by the timing of tax payments we received from emc under the tax sharing agreement . under the tax sharing agreement , emc is obligated to pay us an amount equal to the tax benefit generated by us and we are obligated to pay emc an amount equal to the tax expense generated by us that emc may recognize in a given year on its consolidated tax return . in 2012 , we received $ 19 from emc under the tax sharing agreement , but in 2011 we benefited from the net receipt of $ 302 , which included amounts primarily related to refunds received for both the 2011 and 2010 tax years . investing activities cash used in investing activities is generally attributable to the purchase of fixed income securities , business acquisitions , and capital expenditures . cash provided by investing activities is also impacted by the timing of purchases , sales and maturities of our available-for-sale securities . 50 cash used for business acquisitions during 2013 and 2011 compared to 2012 , was significantly lower as a result of our acquisition of nicira , inc. , which occurred in 2012. net cash used in investing activities during 2012 compared to 2011 was also impacted by a reduction in capitalized software development costs and purchase of leasehold interest . financing activities net cash used in financing activities during 2013 increased compared to 2012 primarily as a result of the decrease in excess tax benefits from stock-based compensation and a decrease in proceeds from issuance of common stock . during 2013 , excess tax benefits from stock-based compensation were $ 70 compared to $ 138 during 2012 . ``` Suspicious Activity Report : pivotal software , inc. ( “ pivotal ” , previously known as “ gopivotal , inc. ” ) during the year , we transferred certain assets and liabilities to pivotal in exchange for an ownership interest in pivotal of approximately 28 % as of december 31 , 2013 . in connection with this transaction , we transferred approximately 415 of our employees to pivotal during 2013. we also entered into an agreement with pivotal pursuant to which we are acting as the selling agent of the products and services we contributed to pivotal in exchange for a customary agency fee . we have also agreed to provide various transition services to pivotal , for which we are reimbursed for our costs . 42 beginning with the second quarter of 2013 , substantially all revenues and costs associated with our contribution to pivotal have been eliminated from our consolidated statements of income . while the contribution to pivotal has had a negative impact on our revenue growth rate compared to 2012 , our 2013 operating margin has been positively impacted due to the elimination of pivotal related costs from our consolidated statements of income . results of operations revenues our revenues in the years ended 2013 , 2012 and 2011 were as follows : replace_table_token_4_th license revenues license revenues in 2013 and 2012 were up 9 % and 13 % , respectively . our revenue growth rate for both periods was due to overall increased global sales volumes in all major geographies , slightly offset by the disposition of certain business lines under our realignment plan and the contribution to pivotal . during 2013 , we expanded the sales of product suites , such as our vcloud suite , that integrate advanced management and automation features with our vsphere cloud infrastructure platform and which are primarily sold through elas . our growth in ela volume across all geographies contributed to our overall increase in license revenues during 2013 compared to 2012. the growth in our ela business is also attributing , in part , to lower growth rates of our non-ela or transactional business . our revenue growth rate was negatively impacted by the contribution to pivotal and the disposition of other net assets under our realignment plan . license revenues related to pivotal and all dispositions under our realignment plan were $ 18 in 2013 and $ 56 in 2012. services revenues in 2013 and 2012 , software maintenance revenues benefited from strong renewals , multi-year software maintenance contracts sold in previous periods , and additional maintenance contracts sold in conjunction with new software license sales . in each year presented , customers bought , on average , more than 24 months of support and maintenance with each new license purchased , which we believe illustrates our customers ' commitment to vmware as a core element of their data center architecture and hybrid cloud strategy . in 2013 and 2012 , professional services revenues increased as growth in our license sales and installed-base led to additional demand for our professional services . our revenue growth rate was negatively impacted by the contribution to pivotal and the disposition of other net assets under our realignment plan . service revenues related to pivotal and all dispositions under our realignment plan were $ 37 in 2013 and $ 143 in 2012. foreign currency we invoice and collect in the euro , the british pound , the japanese yen , the australian dollar and chinese renminbi in their respective regions . as a result , our total revenues are affected by changes in the value of the u.s. dollar against these currencies . foreign currencies did not have a material impact when comparing license revenues in 2013 and 2012 to their respective prior years . 43 unearned revenues our unearned revenues as of december 31 , 2013 and december 31 , 2012 were as follows : replace_table_token_5_th unearned license revenues are generally recognized upon delivery of existing or future products or services , or will be recognized ratably over the term of the arrangement . future products include , in some cases , emerging products that are offered as part of product promotions where the purchaser of an existing product is entitled to receive a promotional product at no additional charge and to the extent promotional products have not been delivered and vendor-specific objective evidence ( “ vsoe ” ) of fair value can not be established , the revenue for the entire order is deferred until such time as all product delivery obligations have been fulfilled . increasingly , unearned license revenue may also be recognized ratably , which is generally due to a right to receive unspecified future products or a lack of vsoe of fair value on the software maintenance element of the arrangement . the amount of total unearned license revenues may vary over periods due to the type and level of promotions offered , the portion of license contracts sold with a ratable recognition element , and when promotional products are delivered upon general availability . unearned software maintenance revenues are attributable to our maintenance contracts and are generally recognized ratably , typically over terms from one to five years with a weighted-average remaining term at december 31 , 2013 of approximately 2.0 years . unearned professional services revenues result primarily from prepaid professional services , including training , and are generally recognized as the services are delivered . cost of license and services revenues , and operating expenses cost of license revenues our cost of license revenues principally consist of the cost of fulfillment of our software , royalty costs in connection with technology licensed from third-party providers and amortization of intangible assets and capitalized software . the cost of fulfillment of our software includes it development efforts , personnel costs and related overhead associated with the physical and electronic delivery of our software products . story_separator_special_tag during the year ended december 31 , 2013 , we provided transition services of $ 12 that are reimbursable by pivotal and which were recorded as a reduction to the costs we incurred . additionally , we purchased products and services for internal use from pivotal for $ 7 in the year ended december 31 , 2013 . as of december 31 , 2013 , our ownership interest in pivotal is 28 % as a result of investments made by a third-party strategic investor . the book value of all contributed assets and the liabilities assumed by pivotal , with the exception of intangible assets and goodwill , was based on the book values of those assets and liabilities specific to those particular products and services . for intangible assets and goodwill , the book value contributed was based on the relative fair value of the contributed assets applicable to pivotal . due to/from related parties , net as a result of the related-party transactions with emc and pivotal described above , amounts due to and from related parties , net as of december 31 , 2013 and 2012 consisted of the following : replace_table_token_13_th balances due to or from related parties , which are unrelated to tax obligations , are generally settled in cash within 60 days of each quarter-end . the timing of the tax payments due to and from emc is governed by the tax sharing agreement with emc . see note l to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k for further information . by nature of emc 's majority ownership of us , the amounts we recorded for our intercompany transactions with emc may not be considered arm 's length with an unrelated third party . therefore the financial statements included herein may not necessarily reflect our results of operations , financial position and cash flows had we engaged in such transactions with an unrelated third party during all periods presented . accordingly , our historical results should not be relied upon as an indicator of our future performance as a stand-alone company . on january 21 , 2014 , in connection with our agreement to acquire airwatch holding , the sole member and equity holder of airwatch , we and emc entered into a note exchange agreement providing for the issuance of three promissory notes in the aggregate principal amount of $ 1,500 . see note r to the consolidated financial statements in part ii , item 8 of this annual report on form 10-k for further information . 49 liquidity and capital resources at december 31 , 2013 and 2012 , we held cash , cash equivalents and short-term investments as follows : replace_table_token_14_th as of december 31 , 2013 , we held a diversified portfolio of money market funds and fixed income securities totaling $ 5,692 . our fixed income securities are denominated in u.s. dollars and consisted of highly liquid debt instruments of the u.s. government and its agencies , u.s. municipal obligations , and u.s. and foreign corporate debt securities . we limit the amount of our domestic and international investments with any single issuer and any single financial institution , and also monitor the diversity of the portfolio , thereby diversifying the credit risk . as of december 31 , 2013 , our total cash , cash equivalents and short-term investments were $ 6,175 , of which $ 4,146 was held outside the u.s. if these overseas funds were needed for our operations in the u.s. , we would be required to accrue and pay u.s. taxes on related undistributed earnings to repatriate these funds . however , our intent is to indefinitely reinvest our non-u.s. earnings in our foreign operations and our current plans do not demonstrate a need to repatriate them to fund our u.s. operations . we expect that cash generated by operations will be used as our primary source of liquidity . we also believe that existing cash and cash equivalents , together with any cash generated from operations will be sufficient to meet normal operating requirements for at least the next twelve months . while we believe our existing cash and cash equivalents and cash to be generated by operations will be sufficient to meet our normal operating requirements , our overall level of cash needs may be impacted by the number and size of acquisitions and investments we consummate and the amount of stock we buy back in 2013. on january 21 , 2014 , in connection with our agreement to acquire a.w.s . holding , llc ( “ airwatch holding ” ) , the sole member and equity holder of airwatch llc ( “ airwatch ” ) , we and emc entered into a note exchange agreement providing for the issuance of three promissory notes in the aggregate principal amount of $ 1,500 . please see below for further details regarding these promissory notes . should we require additional liquidity , we may seek to arrange debt financing or enter into credit facilities . our cash flows for years ended 2013 , 2012 and 2011 were as follows : replace_table_token_15_th operating activities story_separator_special_tag months . critical accounting policies our consolidated financial statements are based upon the selection and application of accounting principles generally accepted in the united states of america that require us to make estimates and assumptions about future events that affect the amounts reported in our financial statements and the accompanying notes . future events and their effects can not be determined with certainty . therefore , the determination of estimates requires the exercise of judgment . actual results could differ from those estimates , and any such differences may be material to our financial statements . we believe that the critical accounting policies set forth below may involve a higher degree of judgment and complexity in their application than our other significant accounting policies and represent the critical accounting

we also monitor free cash flow , the dividend coverage ratio , financial leverage ( net debt divided by adjusted oibda plus integration and other encumbered theater payments ) , 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 . 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 prior year balances have been adjusted to reflect the adoption of a change in accounting principle in the first quarter of 2018. refer to note 1 to the audited consolidated financial statements for discussion of the nature and impact of the change on the results of operations data for years ended december 28 , 2017 and december 29 , 2016. our operating data —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 operating income . replace_table_token_7_th nm = not meaningful . ( 1 ) represents the total attendance within ncm llc 's advertising network , excluding screens and attendance associated with certain amc rave , amc carmike and cinemark rave theaters that are currently part of another cinema advertising network for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . our network —the net screens added to our network by the founding members and network affiliates during 2018 were as follows . 32 replace_table_token_8_th ( 1 ) represents six new affiliates added to our network during 2018. on december 31 , 2018 one of our affiliates did not renew their contract resulting in a reduction of 244 affiliate screens to our network . we believe that adding screens and attendees to our network will provide our advertising clients with a better marketing product with increased reach and improved geographic coverage . we also believe that the continued growth of our market coverage could strengthen our selling proposition and competitive positioning against other national , regional and local video advertising platforms , including television , online and mobile video platforms and other out of home video advertising platforms . 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 years 2016 , 2017 and 2018 contained 52 weeks . our 2019 fiscal year will contain 52 weeks . throughout this document , we refer to our fiscal years as set forth below : reference in fiscal year ended this document december 27 , 2018 2018 december 28 , 2017 2017 december 29 , 2016 2016 results of operations fiscal years 2018 and 2017 revenue . total revenue increased $ 15.3 million , or 3.6 % , from $ 426.1 million for 2017 to $ 441.4 million for 2018 . the following is a summary of revenue by category ( in millions ) : replace_table_token_9_th the following table shows data on revenue per attendee for 2018 and 2017 : 33 replace_table_token_10_th ( 1 ) represents the total attendance within ncm llc 's advertising network , excluding screens and attendance associated with certain amc rave , amc carmike and cinemark rave theaters for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . national advertising revenue . the $ 15.7 million , or 5.3 % , increase in national advertising revenue ( excluding beverage revenue from the founding members ) was due primarily to a 2.2 % increase in national advertising cpms ( excluding beverage ) and a 3.0 % increase in impressions sold . the increase in impressions sold was primarily related to a 7.5 % increase in network attendance , partially offset by a decrease in national inventory utilization , from 118.5 % in 2017 to 113.5 % in 2018. inventory utilization is calculated as utilized impressions divided by total advertising impressions , which is based on eleven 30-second salable national advertising units in our noovie pre-show , which can be expanded , should market demand dictate . the increase in national advertising cpms was due primarily to an increase in scatter market demand , which is inventory not included within an upfront or content partner commitment sold closer to the advertisement air date , typically at higher cpms . this increase was partially offset by a decrease in content partner revenue in 2018 , compared to 2017. local and regional advertising revenue . story_separator_special_tag in 2017. these decreases to administrative and other costs were partially offset by a $ 1.8 million early lease termination charge recorded in 2017 for our corporate headquarters ( the payment of which was reimbursed by the new landlord ) . depreciation and amortization . depreciation and amortization expense increased $ 1.8 million , or 5.0 % , from $ 35.8 million for 2016 to $ 37.6 million for 2017. the increase was due to an increase in depreciation expense primarily from more software being placed into service in 2017 , compared to 2016 and an acceleration in depreciation expense on the leasehold improvements of our corporate headquarters location following the early termination of our lease . non-operating ( income ) expenses . total non-operating expenses decreased $ 205.0 million , or 319.8 % , from $ 64.1 million in non-operating expense for 2016 to $ 140.9 million in non-operating income for 2017 . the following table shows the changes in non-operating ( income ) expense for 2017 and 2016 ( in millions ) : replace_table_token_16_th nm = not meaningful . 38 the decrease in non-operating expense was due primarily to an increase in the gain on the re-measurement of the payable to the founding members under the tra of $ 193.4 million in 2017 , the absence of a $ 10.4 million loss on the early retirement of debt recorded in 2016 for the redemption of the senior unsecured notes and a $ 1.2 million decrease in interest on borrowings primarily related to a one-month period in 2016 between the issuance and redemption of notes , whereby interest was paid on both notes . the gain on the re-measurement of the payable to the founding members was due primarily to the tax act and the resulting reduction of the u.s. federal corporate tax rate from 35 % to 21 % which resulted in the re-measurement of our payable to the founding members under the tra at the lower tax rate . income tax expense . income tax expense increased $ 165.9 million from $ 14.4 million in 2016 to $ 180.3 million in 2017. the increase in income tax expense was primarily due to the tax act and the resulting reduction of the u.s. federal corporate tax rate from 35 % to 21 % , which decreased our net deferred tax assets and increased the corresponding deferred tax expense by $ 164.8 million during 2017. net income . net income increased $ 25.4 million from $ 32.9 million for 2016 to $ 58.3 million for 2017. the increase in net income was due to a $ 205.0 million decrease in non-operating expense and a $ 5.4 million decrease in income attributable to noncontrolling interests , partially offset by a $ 165.9 million increase in income tax expense , as described above , and a $ 19.1 million decrease in operating income . known trends and uncertainties beverage revenue —under the esas , up to 90 seconds of the noovie pre-show program can be sold to the founding members to satisfy their on-screen advertising commitments under their beverage concessionaire agreements . for the years ended 2018 and 2017 , two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds to satisfy their obligations under their beverage concessionaire agreements . the founding members ' current long-term contracts with their beverage suppliers require the 30 or 60 seconds of beverage advertising , although such commitments could change in the future . per the esas , the time sold to the founding member beverage supplier is priced equal to the advertising cpm for the previous year charged by ncm llc to unaffiliated third parties during segment one ( closest to showtime ) of the noovie pre-show , limited to the highest advertising cpm being then-charged by ncm llc , which in 2018 increased 0.7 % . thus , the cpm on our beverage concessionaire revenue in 2019 will increase by 0.7 % compared to 2018. theater access fees —in consideration for ncm llc 's access to the founding members ' theater attendees for on-screen advertising and use of lobbies and other space within the founding members ' theaters for the len and lobby promotions , the founding members receive a monthly theater access fee under the esas . the theater access fee is composed of a fixed payment per patron and a fixed payment per digital screen ( connected to the dcn ) . the payment per theater patron increases by 8 % every five years , with the next increase occurring in fiscal year 2022. pursuant to the esas , the payment per digital screen increases annually by 5 % . the impact of the tax reform — on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act . the tax act made broad and complex changes to the u.s. tax code that affected our fiscal year ending december 27 , 2018 , including , but not limited to , ( 1 ) reducing the u.s. federal corporate tax rate , ( 2 ) creating full expensing of qualified property , ( 3 ) creating a new limitation on deductible interest expense ; ( 4 ) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 , and ( 5 ) limiting the amount of compensation that can be deducted for highly compensated officers by terminating the exclusion of performance-based compensation from the $ 1 million per employee , per year limitation . we expect the most significant impact of the tax act to be an annual reduction of the payments made to the founding members under the tra of approximately $ 8.0 to $ 10.0 million beginning with the payment for the year ending december 27 , 2018 which will be made in 2019. this estimate is

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 cinemark and regal , interest or principal payments on our term loan and the notes due 2022 and notes due 2026 , income tax payments , tra payments to the founding members and amount of quarterly dividends to ncm , inc. 's common stockholders . a summary of our financial liquidity is as follows ( in millions ) : 39 replace_table_token_17_th ( 1 ) included in cash and cash equivalents as of december 27 , 2018 , december 28 , 2017 and december 29 , 2016 there was $ 7.2 million , $ 4.6 million and $ 10.7 million , respectively , 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 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity our 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 cinemark and regal , interest or principal payments on our term loan and the notes due 2022 and notes due 2026 , income tax payments , tra payments to the founding members and amount of quarterly dividends to ncm , inc. 's common stockholders . a summary of our financial liquidity is as follows ( in millions ) : 39 replace_table_token_17_th ( 1 ) included in cash and cash equivalents as of december 27 , 2018 , december 28 , 2017 and december 29 , 2016 there was $ 7.2 million , $ 4.6 million and $ 10.7 million , respectively , 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 . ``` Suspicious Activity Report : we also monitor free cash flow , the dividend coverage ratio , financial leverage ( net debt divided by adjusted oibda plus integration and other encumbered theater payments ) , 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 . 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 prior year balances have been adjusted to reflect the adoption of a change in accounting principle in the first quarter of 2018. refer to note 1 to the audited consolidated financial statements for discussion of the nature and impact of the change on the results of operations data for years ended december 28 , 2017 and december 29 , 2016. our operating data —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 operating income . replace_table_token_7_th nm = not meaningful . ( 1 ) represents the total attendance within ncm llc 's advertising network , excluding screens and attendance associated with certain amc rave , amc carmike and cinemark rave theaters that are currently part of another cinema advertising network for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . our network —the net screens added to our network by the founding members and network affiliates during 2018 were as follows . 32 replace_table_token_8_th ( 1 ) represents six new affiliates added to our network during 2018. on december 31 , 2018 one of our affiliates did not renew their contract resulting in a reduction of 244 affiliate screens to our network . we believe that adding screens and attendees to our network will provide our advertising clients with a better marketing product with increased reach and improved geographic coverage . we also believe that the continued growth of our market coverage could strengthen our selling proposition and competitive positioning against other national , regional and local video advertising platforms , including television , online and mobile video platforms and other out of home video advertising platforms . 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 years 2016 , 2017 and 2018 contained 52 weeks . our 2019 fiscal year will contain 52 weeks . throughout this document , we refer to our fiscal years as set forth below : reference in fiscal year ended this document december 27 , 2018 2018 december 28 , 2017 2017 december 29 , 2016 2016 results of operations fiscal years 2018 and 2017 revenue . total revenue increased $ 15.3 million , or 3.6 % , from $ 426.1 million for 2017 to $ 441.4 million for 2018 . the following is a summary of revenue by category ( in millions ) : replace_table_token_9_th the following table shows data on revenue per attendee for 2018 and 2017 : 33 replace_table_token_10_th ( 1 ) represents the total attendance within ncm llc 's advertising network , excluding screens and attendance associated with certain amc rave , amc carmike and cinemark rave theaters for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . national advertising revenue . the $ 15.7 million , or 5.3 % , increase in national advertising revenue ( excluding beverage revenue from the founding members ) was due primarily to a 2.2 % increase in national advertising cpms ( excluding beverage ) and a 3.0 % increase in impressions sold . the increase in impressions sold was primarily related to a 7.5 % increase in network attendance , partially offset by a decrease in national inventory utilization , from 118.5 % in 2017 to 113.5 % in 2018. inventory utilization is calculated as utilized impressions divided by total advertising impressions , which is based on eleven 30-second salable national advertising units in our noovie pre-show , which can be expanded , should market demand dictate . the increase in national advertising cpms was due primarily to an increase in scatter market demand , which is inventory not included within an upfront or content partner commitment sold closer to the advertisement air date , typically at higher cpms . this increase was partially offset by a decrease in content partner revenue in 2018 , compared to 2017. local and regional advertising revenue . story_separator_special_tag in 2017. these decreases to administrative and other costs were partially offset by a $ 1.8 million early lease termination charge recorded in 2017 for our corporate headquarters ( the payment of which was reimbursed by the new landlord ) . depreciation and amortization . depreciation and amortization expense increased $ 1.8 million , or 5.0 % , from $ 35.8 million for 2016 to $ 37.6 million for 2017. the increase was due to an increase in depreciation expense primarily from more software being placed into service in 2017 , compared to 2016 and an acceleration in depreciation expense on the leasehold improvements of our corporate headquarters location following the early termination of our lease . non-operating ( income ) expenses . total non-operating expenses decreased $ 205.0 million , or 319.8 % , from $ 64.1 million in non-operating expense for 2016 to $ 140.9 million in non-operating income for 2017 . the following table shows the changes in non-operating ( income ) expense for 2017 and 2016 ( in millions ) : replace_table_token_16_th nm = not meaningful . 38 the decrease in non-operating expense was due primarily to an increase in the gain on the re-measurement of the payable to the founding members under the tra of $ 193.4 million in 2017 , the absence of a $ 10.4 million loss on the early retirement of debt recorded in 2016 for the redemption of the senior unsecured notes and a $ 1.2 million decrease in interest on borrowings primarily related to a one-month period in 2016 between the issuance and redemption of notes , whereby interest was paid on both notes . the gain on the re-measurement of the payable to the founding members was due primarily to the tax act and the resulting reduction of the u.s. federal corporate tax rate from 35 % to 21 % which resulted in the re-measurement of our payable to the founding members under the tra at the lower tax rate . income tax expense . income tax expense increased $ 165.9 million from $ 14.4 million in 2016 to $ 180.3 million in 2017. the increase in income tax expense was primarily due to the tax act and the resulting reduction of the u.s. federal corporate tax rate from 35 % to 21 % , which decreased our net deferred tax assets and increased the corresponding deferred tax expense by $ 164.8 million during 2017. net income . net income increased $ 25.4 million from $ 32.9 million for 2016 to $ 58.3 million for 2017. the increase in net income was due to a $ 205.0 million decrease in non-operating expense and a $ 5.4 million decrease in income attributable to noncontrolling interests , partially offset by a $ 165.9 million increase in income tax expense , as described above , and a $ 19.1 million decrease in operating income . known trends and uncertainties beverage revenue —under the esas , up to 90 seconds of the noovie pre-show program can be sold to the founding members to satisfy their on-screen advertising commitments under their beverage concessionaire agreements . for the years ended 2018 and 2017 , two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds to satisfy their obligations under their beverage concessionaire agreements . the founding members ' current long-term contracts with their beverage suppliers require the 30 or 60 seconds of beverage advertising , although such commitments could change in the future . per the esas , the time sold to the founding member beverage supplier is priced equal to the advertising cpm for the previous year charged by ncm llc to unaffiliated third parties during segment one ( closest to showtime ) of the noovie pre-show , limited to the highest advertising cpm being then-charged by ncm llc , which in 2018 increased 0.7 % . thus , the cpm on our beverage concessionaire revenue in 2019 will increase by 0.7 % compared to 2018. theater access fees —in consideration for ncm llc 's access to the founding members ' theater attendees for on-screen advertising and use of lobbies and other space within the founding members ' theaters for the len and lobby promotions , the founding members receive a monthly theater access fee under the esas . the theater access fee is composed of a fixed payment per patron and a fixed payment per digital screen ( connected to the dcn ) . the payment per theater patron increases by 8 % every five years , with the next increase occurring in fiscal year 2022. pursuant to the esas , the payment per digital screen increases annually by 5 % . the impact of the tax reform — on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act . the tax act made broad and complex changes to the u.s. tax code that affected our fiscal year ending december 27 , 2018 , including , but not limited to , ( 1 ) reducing the u.s. federal corporate tax rate , ( 2 ) creating full expensing of qualified property , ( 3 ) creating a new limitation on deductible interest expense ; ( 4 ) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 , and ( 5 ) limiting the amount of compensation that can be deducted for highly compensated officers by terminating the exclusion of performance-based compensation from the $ 1 million per employee , per year limitation . we expect the most significant impact of the tax act to be an annual reduction of the payments made to the founding members under the tra of approximately $ 8.0 to $ 10.0 million beginning with the payment for the year ending december 27 , 2018 which will be made in 2019. this estimate is

this change did not have any impact on the consolidated financial results for any period presented . we report our segment information in accordance with the provisions of fasb asc topic 280. the company is currently assessing potential changes to its reportable segments after the sale of the quality assurance business on october 27 , 2017 , and expects to complete this assessment in the first quarter of fiscal 2018 . 22 overview we are a global provider of staffing services ( traditional time and materials-based as well as project-based ) . our staffing services consist of workforce solutions that include providing contingent workers , personnel recruitment services , and managed staffing services programs supporting primarily administrative and light industrial ( “ commercial ” ) as well as technical , information technology and engineering ( “ professional ” ) positions . our managed service programs ( “ msp ” ) involves managing the procurement and on-boarding of contingent workers from multiple providers . our technology outsourcing services consisted primarily of customer care services and quality assurance services ; however only the call center services remain following the sale of the quality assurance business on october 27 , 2017. also , through the date of the sale of maintech , incorporated ( `` maintech `` ) in march 2017 , we provided information technology infrastructure services . our information technology infrastructure services provided server , storage , network and desktop it hardware maintenance , data center and network monitoring and operations . as of october 29 , 2017 , we employed approximately 21,300 people , including 19,800 contingent workers . contingent workers are on our payroll for the length of their assignment . we operate from 100 locations worldwide with approximately 87 % of our revenues generated in the united states . our principal international markets include europe , canada and several asia pacific locations . the industry is highly fragmented and very competitive in all of the markets we serve . recent developments financing program on january 8 , 2018 , the company executed a commitment letter on a new accounts receivable securitization arrangement and we expect to close on such securitization shortly which will improve our debt maturity profile , providing additional runway to execute our turnaround plan . on january 11 , 2018 , the company entered into amendment no . 10 to the pnc financing program , which gives us the option to extend the termination date of the program from january 31 , 2018 to march 2 , 2018 , and amends the financial covenant requiring the company to meet the minimum earnings before interest and taxes level for the fiscal quarter ended october 29 , 2017. all other material terms and conditions remain substantially unchanged , including interest rates . tax cuts and jobs act on december 22 , 2017 , the tax cuts and jobs act ( `` the act `` ) , was signed into law by president trump . the act includes a number of provisions , including the lowering of the u.s. corporate tax rate from 35 percent to 21 percent , effective january 1 , 2018 and the establishment of a territorial-style system for taxing foreign-source income of domestic multinational corporations . we are in the process of quantifying the tax impacts of the act . as a result of the act , we expect there will be one-time adjustments for the re-measurement of deferred tax assets ( liabilities ) and the deemed repatriation tax on the unremitted foreign earnings and profits . given our valuation allowance , we do not expect the adjustment to materially impact our income tax provision or balance sheet . the company is in the process of quantifying the impact of the act and will record any adjustments in accordance with the guidance provided in sab118 . 23 consolidated results of continuing operations and financial highlights ( fiscal 2017 vs. fiscal 2016 ) results of continuing operations by segment ( fiscal 2017 vs. fiscal 2016 ) replace_table_token_2_th replace_table_token_3_th ( 1 ) revenues are primarily derived from managed service programs and information technology infrastructure services through the date of sale of maintech in march 2017 . ( 2 ) the majority of intersegment sales results from north american staffing providing resources to technology outsourcing services and solutions . results of continuing operations by segments ( fiscal 2017 vs. fiscal 2016 ) net revenue net revenue in fiscal 2017 decreased $ 140.3 million , or 10.5 % , to $ 1,194.4 million from $ 1,334.7 million in fiscal 2016. the revenue decline was driven by decreases in our north american staffing segment of $ 75.0 million , a decrease from the sale of maintech of $ 47.8 million as well as a decrease in our international staffing segment of $ 11.7 million . the north american staffing segment revenue decline was primarily driven by lower demand from our customers in both our professional and commercial job families . declines in demand were most prevalent with our customers in the aerospace industry resulting from our customers experiencing decreased demand for their services and the completion of a large project . 24 our revenue was also impacted by other industries experiencing decreased demand for their services as well as changes in their staffing models . the international staffing segment revenue declined $ 11.7 million primarily driven by the impact of foreign exchange rate fluctuations of $ 7.9 million . on a constant currency basis and excluding the impact of countries in which we no longer have operations , international staffing declined $ 2.8 million , or 2.3 % , primarily due to lower demand in the united kingdom partially offset by increases in belgium and singapore . story_separator_special_tag entering fiscal 2018 , we have significant tax benefits including federal net operating loss carryforwards of $ 155.7 million and u.s. state nol carryforwards of $ 195.2 million , which are fully reserved with a valuation allowance as well as federal tax credits of $ 48.2 million , which we will be able to utilize against future profits resulting from our strategic initiatives . we also have capital loss carryforwards of $ 13.5 million , which we will be able to utilize against future capital gains that may arise in the near future . we remain committed to delivering superior client service at a reasonable cost . in an effort to reduce our future operating costs , we continue to invest in updates to our business processes , back-office financial suite and information technology tools that are critical to our success and offer more functionality at a lower cost . the first phase of the project was completed in march 2017 in which approximately $ 16.0 million in implementation costs were capitalized . these costs , along with the related license and recurring subscription fees will be amortized over either the estimated useful life of the asset or expensed ratably over the term of the contract based on the nature of the fees which has driven higher non-cash expenses into fiscal 2017. through our strategy of improving efficiency in all aspects of our operations , we believe we can realize organic growth opportunities , reduce costs and increase profitability . in fiscal 2016 , we implemented a cost reduction plan as part of our overall initiative to become more efficient , competitive and profitable . we incurred restructuring and severance costs of $ 5.8 million , excluding $ 1.1 million relating to maintech , primarily resulting from a reduction in workforce , facility consolidation and lease termination costs . these actions taken , in fiscal 2016 and fiscal 2017 , will result in net annualized labor savings of approximately $ 17.0 million . consistent with our ongoing strategic efforts , cost savings will be used to strengthen our operations . story_separator_special_tag $ 7.3 million as a result of the sale-leaseback of our orange , california facility and the net repayment of borrowings of $ 3.0 million fiscal year ended october 30 , 2016 compared to the fiscal year ended november 1 , 2015 cash flows – operating activities the net cash used in operating activities in fiscal 2016 was $ 7.6 million , a decrease of $ 50.9 million from fiscal 2015. this decrease resulted primarily from increased demands on working capital relating to the year over year change in accounts receivable that was not as substantial as in the prior fiscal year as well as the change in prepaid insurance and other assets as a substantial portion of our collateral relating to our casualty program was received in the prior fiscal year . in fiscal 2015 , the change from a casualty incurred loss program to a paid loss program returned cash collateral of approximately $ 22.0 million to us for the converted policy years . cash flows – investing activities the net cash provided by investing activities in fiscal 2016 was $ 18.8 million , principally from the sale of property ( our orange , ca and san diego , ca facilities ) and equipment of $ 36.6 million , partially offset by the purchases of property , equipment and software of $ 17.6 million primarily relating to our investment in updating our business processes , back-office financial suite and information technology tools . the net cash used in investing activities in fiscal 2015 was $ 7.4 million , principally from the purchase of property , equipment and software of $ 8.6 million partially offset by sale of investments of $ 1.3 million cash flows – financing activities the net cash used in financing activities in fiscal 2016 was $ 11.4 million principally from repayment of long-term debt of $ 7.3 million as a result of the sale-leaseback of our orange , california facility and the net repayment of borrowings of $ 3.0 million . the net cash used in financing activities in fiscal 2015 was $ 24.1 million principally from the net repayment of borrowings of $ 28.5 million and $ 4.3 million for the purchase of common stock , partially offset by the elimination of cash restricted as collateral for borrowings of $ 10.4 million . financing program in january 2017 , we amended our pnc financing program . key changes to the agreement were to : ( 1 ) extend the termination date to january 31 , 2018 ; ( 2 ) increase the minimum global liquidity to $ 25.0 million upon the sale of maintech in march 2017 ; ( 3 ) reduce the unbilled receivables eligibility from 15 % to 10 % of total eligible receivables , ( 4 ) permit a $ 5.0 million basket for supply chain finance receivables and ( 5 ) introduce a performance covenant requiring a minimum level of ebit , as defined , which is tested quarterly . with the sale of maintech in march 2017 , the minimum liquidity requirement increased from $ 20.0 million to $ 25.0 million , until subsequently amended . on august 25 , 2017 , the company amended the pnc financing program to lower the ebit minimum thresholds for the fiscal quarters ended july 30 , 2017 and october 29 , 2017 and to lower the required liquidity level threshold , as defined , to $ 5.0 million from $ 25.0 million . the liquidity level decrease was offset by the establishment of a minimum $ 10.0 million borrowing base block until the closing of the sale of the quality assurance business on october 27 , 2017 , subsequent to which the borrowing base block increased to $ 35.0 million . further , under the terms of the amendment , the company was required to pay down $ 25.0 million in

liquidity outlook and further considerations as previously noted , our primary sources of liquidity are cash flows from operations and proceeds from our bank financing programs . both operating cash flows and borrowing capacity under our financing arrangements are directly related to the levels of accounts receivable generated by our businesses . as accounts receivable increases based on sales growth , the level of borrowing capacity increases . however , our operating cash flow may initially decrease as we fund the revenue growth . as the business grows , we would need to borrow funds to ensure adequate amounts of liquidity to fund operational requirements . we are subject to certain covenants under our pnc financing program , including a minimum liquidity threshold and minimum earnings before interest and taxes ( ebit ) as defined . the minimum liquidity threshold test is performed weekly whereby we must maintain a minimum liquidity level comprised of the sum of availability under our pnc financing program and 30 unrestricted global cash . as of october 29 , 2017 , our minimum liquidity threshold was $ 5.0 million with a $ 35.0 million block on our borrowing base availability . our pnc financing program is subject to termination under certain events of default such as breach of covenants , including the aforementioned liquidity and ebit covenants .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity outlook and further considerations as previously noted , our primary sources of liquidity are cash flows from operations and proceeds from our bank financing programs . both operating cash flows and borrowing capacity under our financing arrangements are directly related to the levels of accounts receivable generated by our businesses . as accounts receivable increases based on sales growth , the level of borrowing capacity increases . however , our operating cash flow may initially decrease as we fund the revenue growth . as the business grows , we would need to borrow funds to ensure adequate amounts of liquidity to fund operational requirements . we are subject to certain covenants under our pnc financing program , including a minimum liquidity threshold and minimum earnings before interest and taxes ( ebit ) as defined . the minimum liquidity threshold test is performed weekly whereby we must maintain a minimum liquidity level comprised of the sum of availability under our pnc financing program and 30 unrestricted global cash . as of october 29 , 2017 , our minimum liquidity threshold was $ 5.0 million with a $ 35.0 million block on our borrowing base availability . our pnc financing program is subject to termination under certain events of default such as breach of covenants , including the aforementioned liquidity and ebit covenants . ``` Suspicious Activity Report : this change did not have any impact on the consolidated financial results for any period presented . we report our segment information in accordance with the provisions of fasb asc topic 280. the company is currently assessing potential changes to its reportable segments after the sale of the quality assurance business on october 27 , 2017 , and expects to complete this assessment in the first quarter of fiscal 2018 . 22 overview we are a global provider of staffing services ( traditional time and materials-based as well as project-based ) . our staffing services consist of workforce solutions that include providing contingent workers , personnel recruitment services , and managed staffing services programs supporting primarily administrative and light industrial ( “ commercial ” ) as well as technical , information technology and engineering ( “ professional ” ) positions . our managed service programs ( “ msp ” ) involves managing the procurement and on-boarding of contingent workers from multiple providers . our technology outsourcing services consisted primarily of customer care services and quality assurance services ; however only the call center services remain following the sale of the quality assurance business on october 27 , 2017. also , through the date of the sale of maintech , incorporated ( `` maintech `` ) in march 2017 , we provided information technology infrastructure services . our information technology infrastructure services provided server , storage , network and desktop it hardware maintenance , data center and network monitoring and operations . as of october 29 , 2017 , we employed approximately 21,300 people , including 19,800 contingent workers . contingent workers are on our payroll for the length of their assignment . we operate from 100 locations worldwide with approximately 87 % of our revenues generated in the united states . our principal international markets include europe , canada and several asia pacific locations . the industry is highly fragmented and very competitive in all of the markets we serve . recent developments financing program on january 8 , 2018 , the company executed a commitment letter on a new accounts receivable securitization arrangement and we expect to close on such securitization shortly which will improve our debt maturity profile , providing additional runway to execute our turnaround plan . on january 11 , 2018 , the company entered into amendment no . 10 to the pnc financing program , which gives us the option to extend the termination date of the program from january 31 , 2018 to march 2 , 2018 , and amends the financial covenant requiring the company to meet the minimum earnings before interest and taxes level for the fiscal quarter ended october 29 , 2017. all other material terms and conditions remain substantially unchanged , including interest rates . tax cuts and jobs act on december 22 , 2017 , the tax cuts and jobs act ( `` the act `` ) , was signed into law by president trump . the act includes a number of provisions , including the lowering of the u.s. corporate tax rate from 35 percent to 21 percent , effective january 1 , 2018 and the establishment of a territorial-style system for taxing foreign-source income of domestic multinational corporations . we are in the process of quantifying the tax impacts of the act . as a result of the act , we expect there will be one-time adjustments for the re-measurement of deferred tax assets ( liabilities ) and the deemed repatriation tax on the unremitted foreign earnings and profits . given our valuation allowance , we do not expect the adjustment to materially impact our income tax provision or balance sheet . the company is in the process of quantifying the impact of the act and will record any adjustments in accordance with the guidance provided in sab118 . 23 consolidated results of continuing operations and financial highlights ( fiscal 2017 vs. fiscal 2016 ) results of continuing operations by segment ( fiscal 2017 vs. fiscal 2016 ) replace_table_token_2_th replace_table_token_3_th ( 1 ) revenues are primarily derived from managed service programs and information technology infrastructure services through the date of sale of maintech in march 2017 . ( 2 ) the majority of intersegment sales results from north american staffing providing resources to technology outsourcing services and solutions . results of continuing operations by segments ( fiscal 2017 vs. fiscal 2016 ) net revenue net revenue in fiscal 2017 decreased $ 140.3 million , or 10.5 % , to $ 1,194.4 million from $ 1,334.7 million in fiscal 2016. the revenue decline was driven by decreases in our north american staffing segment of $ 75.0 million , a decrease from the sale of maintech of $ 47.8 million as well as a decrease in our international staffing segment of $ 11.7 million . the north american staffing segment revenue decline was primarily driven by lower demand from our customers in both our professional and commercial job families . declines in demand were most prevalent with our customers in the aerospace industry resulting from our customers experiencing decreased demand for their services and the completion of a large project . 24 our revenue was also impacted by other industries experiencing decreased demand for their services as well as changes in their staffing models . the international staffing segment revenue declined $ 11.7 million primarily driven by the impact of foreign exchange rate fluctuations of $ 7.9 million . on a constant currency basis and excluding the impact of countries in which we no longer have operations , international staffing declined $ 2.8 million , or 2.3 % , primarily due to lower demand in the united kingdom partially offset by increases in belgium and singapore . story_separator_special_tag entering fiscal 2018 , we have significant tax benefits including federal net operating loss carryforwards of $ 155.7 million and u.s. state nol carryforwards of $ 195.2 million , which are fully reserved with a valuation allowance as well as federal tax credits of $ 48.2 million , which we will be able to utilize against future profits resulting from our strategic initiatives . we also have capital loss carryforwards of $ 13.5 million , which we will be able to utilize against future capital gains that may arise in the near future . we remain committed to delivering superior client service at a reasonable cost . in an effort to reduce our future operating costs , we continue to invest in updates to our business processes , back-office financial suite and information technology tools that are critical to our success and offer more functionality at a lower cost . the first phase of the project was completed in march 2017 in which approximately $ 16.0 million in implementation costs were capitalized . these costs , along with the related license and recurring subscription fees will be amortized over either the estimated useful life of the asset or expensed ratably over the term of the contract based on the nature of the fees which has driven higher non-cash expenses into fiscal 2017. through our strategy of improving efficiency in all aspects of our operations , we believe we can realize organic growth opportunities , reduce costs and increase profitability . in fiscal 2016 , we implemented a cost reduction plan as part of our overall initiative to become more efficient , competitive and profitable . we incurred restructuring and severance costs of $ 5.8 million , excluding $ 1.1 million relating to maintech , primarily resulting from a reduction in workforce , facility consolidation and lease termination costs . these actions taken , in fiscal 2016 and fiscal 2017 , will result in net annualized labor savings of approximately $ 17.0 million . consistent with our ongoing strategic efforts , cost savings will be used to strengthen our operations . story_separator_special_tag $ 7.3 million as a result of the sale-leaseback of our orange , california facility and the net repayment of borrowings of $ 3.0 million fiscal year ended october 30 , 2016 compared to the fiscal year ended november 1 , 2015 cash flows – operating activities the net cash used in operating activities in fiscal 2016 was $ 7.6 million , a decrease of $ 50.9 million from fiscal 2015. this decrease resulted primarily from increased demands on working capital relating to the year over year change in accounts receivable that was not as substantial as in the prior fiscal year as well as the change in prepaid insurance and other assets as a substantial portion of our collateral relating to our casualty program was received in the prior fiscal year . in fiscal 2015 , the change from a casualty incurred loss program to a paid loss program returned cash collateral of approximately $ 22.0 million to us for the converted policy years . cash flows – investing activities the net cash provided by investing activities in fiscal 2016 was $ 18.8 million , principally from the sale of property ( our orange , ca and san diego , ca facilities ) and equipment of $ 36.6 million , partially offset by the purchases of property , equipment and software of $ 17.6 million primarily relating to our investment in updating our business processes , back-office financial suite and information technology tools . the net cash used in investing activities in fiscal 2015 was $ 7.4 million , principally from the purchase of property , equipment and software of $ 8.6 million partially offset by sale of investments of $ 1.3 million cash flows – financing activities the net cash used in financing activities in fiscal 2016 was $ 11.4 million principally from repayment of long-term debt of $ 7.3 million as a result of the sale-leaseback of our orange , california facility and the net repayment of borrowings of $ 3.0 million . the net cash used in financing activities in fiscal 2015 was $ 24.1 million principally from the net repayment of borrowings of $ 28.5 million and $ 4.3 million for the purchase of common stock , partially offset by the elimination of cash restricted as collateral for borrowings of $ 10.4 million . financing program in january 2017 , we amended our pnc financing program . key changes to the agreement were to : ( 1 ) extend the termination date to january 31 , 2018 ; ( 2 ) increase the minimum global liquidity to $ 25.0 million upon the sale of maintech in march 2017 ; ( 3 ) reduce the unbilled receivables eligibility from 15 % to 10 % of total eligible receivables , ( 4 ) permit a $ 5.0 million basket for supply chain finance receivables and ( 5 ) introduce a performance covenant requiring a minimum level of ebit , as defined , which is tested quarterly . with the sale of maintech in march 2017 , the minimum liquidity requirement increased from $ 20.0 million to $ 25.0 million , until subsequently amended . on august 25 , 2017 , the company amended the pnc financing program to lower the ebit minimum thresholds for the fiscal quarters ended july 30 , 2017 and october 29 , 2017 and to lower the required liquidity level threshold , as defined , to $ 5.0 million from $ 25.0 million . the liquidity level decrease was offset by the establishment of a minimum $ 10.0 million borrowing base block until the closing of the sale of the quality assurance business on october 27 , 2017 , subsequent to which the borrowing base block increased to $ 35.0 million . further , under the terms of the amendment , the company was required to pay down $ 25.0 million in

the project has received permits in accordance with the california environmental quality act ( `` ceqa `` ) which allow the capture and conservation of 2.5 million acre-feet of groundwater over 50 years under the terms of a groundwater management plan approved by san bernardino county , which is responsible for groundwater use at the project area . our 2017 working capital requirements relate largely to the final development activities associated with the water project and those activities consistent with the water project related to further development of our land and agricultural assets . while we continue to believe that the ultimate implementation of the water project will provide the primary source of our future cash flow , we also believe there is significant additional value in our underlying agricultural assets . demand for agricultural land with water rights is at an all-time high ; therefore , in addition to our water project proposal , we are engaged in agricultural joint ventures at the cadiz/fenner property that put some of the groundwater currently being lost to evaporation from the underlying aquifer system to immediate beneficial use . we have farmed portions of the cadiz/fenner property since the late 1980s relying on groundwater from the aquifer system for irrigation and have found the site is well suited for various permanent and seasonal crops . presently , the property has 2,100 acres leased to third parties for a variety of crops , including citrus , dried-on-the-vine raisins and seasonal vegetables . we also continue to explore additional uses of our land and water resource assets , including renewable energy development , the marketing of our approved desert tortoise land conservation bank , which is located on our properties outside the water project area , and other long-term legacy uses of our properties , such as habitat conservation and cultural development . w ater resource development the water project is designed to supply , capture and conserve billions of gallons of renewable native groundwater currently being lost annually to evaporation from the aquifer system underlying our cadiz/fenner property , and provide a new reliable water supply for approximately 400,000 people in southern california . the total quantity of groundwater to be recovered and conveyed to water project participants will not exceed a long-term annual average of 50,000 acre-feet per year for 50 years . the water project also offers participants the ability to carry-over their annual supply and store it in the groundwater basin from year to year . a second phase of the water project , phase ii , will offer up to one million acre-feet of storage capacity that can be used to hold imported water supplies at the water project area . 25 water project facilities required for phase i primarily include , among other things : · high-yield wells designed to efficiently recover available native groundwater from beneath the water project area ; · a water conveyance pipeline to deliver water from the well-field to the cra for further delivery to project participants ; and · an energy source to provide power to the well-field , pipeline and pumping facilities . if an imported water storage component of the project is ultimately implemented in phase ii , the following additional facilities would be required , among other things : · facilities to pump water through the conveyance pipeline from the cra to the water project well-field and or through the company 's pipeline from cadiz to barstow , ca ; and · spreading basins , which are shallow settling ponds that will be configured to efficiently percolate water from the ground surface down to the water table using subsurface storage capacity for the storage of water . in 2016 , the company focused on completing the remaining steps to implement the project , including clearance to use an existing railroad right-of-way for its conveyance pipeline and defending the water project 's ceqa permits in the california court of appeal . prior to construction , the water project must ( 1 ) complete efforts to secure its pipeline right-of-way , ( 2 ) finalize contracts with project participating agencies and secure transportation arrangements to deliver water into each participant 's service area , and ( 3 ) secure private construction financing . below is a discussion of present activities to advance these objectives . ( 1 ) water conveyance pipeline right-of-way pipeline from cadiz to cra in september 2008 , we secured a right-of-way for the water project 's water conveyance pipeline by entering into a lease agreement with the arizona & california railroad company ( `` arzc `` ) , which operated an active shortline railroad extending from cadiz to matthie , arizona . the agreement allows for the use of a portion of the railroad 's right-of-way to construct and operate a water conveyance pipeline for a period up to 99 years . the buried pipeline would be constructed parallel to the railroad tracks and be used to convey water between our cadiz valley property and the cra in freda , california . our lease agreement with the arzc also expressly requires that the project further several railroad purposes and , under the terms of the lease agreement , the arzc reserved water supplies from the project for its operational needs as well as access to project facilities , such as roads and power appurtenances , for the benefit of its railroad operation . in september 2013 , we also entered into a trackage rights agreement with the arzc that would enable the operation of steam-powered , passenger excursion trains on the line powered by water made available from the pipeline . story_separator_special_tag credits sold by the fenner bank will fund our permanent preservation of the land as well as research by outside entities , including san diego zoo global , into desert tortoise health and species protection . 31 other opportunities other opportunities in the water and agricultural or related infrastructure business complementary to our current objectives could provide new opportunities for our company . over the longer-term , we believe the population of southern california , nevada and arizona will continue to grow , and that , in time , the economics of commercial and residential development at our properties may become attractive . we remain committed to the sustainable use of our land and water assets , and will continue to explore all opportunities for environmentally responsible development of these assets . we can not predict with certainty which of these various opportunities will ultimately be utilized . results of operations ( a ) year ended december 31 , 2016 compared to year ended december 31 , 2015 we have not received significant revenues from our water resource and real estate development activity to date . our revenues have been limited to our agricultural operations . as a result , we have historically incurred a net loss from operations . we had revenues of $ 412 thousand for the year ended december 31 , 2016 , and $ 304 thousand for the year ended december 31 , 2015. the net loss totaled $ 26.3 million for the year ended december 31 , 2016 , compared with a net loss of $ 24.0 million for the year ended december 31 , 2015. the higher loss in 2016 was primarily related to a $ 2.25 million loss on extinguishment of debt . the higher 2016 loss was also related to higher interest expense on additional convertible debt issued and higher amortization expense , offset by a decrease in litigation costs related to the water project due to the timing of the appellate litigation . our primary expenses are our ongoing overhead costs associated with the development of the water project ( i.e . , general and administrative expense ) and our interest expense . we will continue to incur non-cash expense in connection with our management and director equity incentive compensation plans . revenues . revenue totaled $ 412 thousand during the year ended december 31 , 2016 , compared to $ 304 thousand during the year ended december 31 , 2015. the 2016 revenue is primarily related to rental income from the fvf lease ( see `` agricultural development `` , above ) . cost of sales . cost of sales were zero for the year ended december 31 , 2016 , compared with $ 334 thousand during the year ended december 31 , 2015 . 32 general and administrative expenses . general and administrative expenses during the year ended december 31 , 2016 , totaled $ 9.3 million compared with $ 13.7 million for the year ended december 31 , 2015. non-cash compensation costs related to stock and option awards are included in general and administrative expenses . general and administrative expenses , exclusive of stock-based compensation costs , totaled $ 8.0 million in the year ended december 31 , 2016 , compared with $ 12.6 million for the year ended december 31 , 2015. the decrease in general and administrative expense in 2016 was primarily due to lower litigation costs related to the water project due to the timing of the appellate litigation ( see item 1 . – `` business , ( a ) general development of business `` , above . ) compensation costs from stock and option awards for the year ended december 31 , 2016 , totaled $ 1.3 million compared with $ 1.1 million for the year ended december 31 , 2015. the higher 2016 expense was primarily due to higher stock-based non-cash compensation costs related to shares awarded to the brownstein law firm for certain legal and advisory services to the company . depreciation . depreciation expense totaled $ 292 thousand for the year ended december 31 , 2016 , and $ 270 thousand for the year ended december 31 , 2015. interest expense , net . net interest expense totaled $ 14.9 million during the year ended december 31 , 2016 , compared to $ 10.1 million during 2015. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_3_th the interest on outstanding debt increased from $ 8.2 million to $ 9.7 million due to the compounded interest on the debt facilities resulting in a higher principal balance . amortization of debt discount increased from $ 1.6 million to $ 5.0 million primarily due to the acceleration of unamortized debt discount related to the conversion of approximately $ 2.8 million in original principal amount of the 2020 notes that were issued in april 2016. see note 6 to the consolidated financial statements , `` long-term debt `` . story_separator_special_tag roman ' , times , serif ; font-variant : normal ; width : 9pt ; font-weight : bold ; font-style : italic ; display : inline-block `` > interest expense , net . net interest expense totaled $ 10.1 million during the year ended december 31 , 2015 , compared to $ 8.5 million during 2014. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_4_th the interest on outstanding debt increased from $ 7.7 million to $ 8.2 million due to the compounded interest on the debt facilities resulting in a higher principal balance . see note 6 to the consolidated financial statements , `` long-term debt `` . prior debt refinancings . in november 2015 , we entered into an agreement with our senior lenders which granted us the right to extend the maturity date of an original $ 30 million first tranche of our secured senior debt from march 2016

debt refinancings . in april 2016 , we entered into a note purchase agreement with new and existing investors ( the `` investors '' ) . pursuant to the agreement , we issued approximately $ 10.0 million of our 7.00 % convertible senior notes due 2020 ( `` 2020 notes ) in aggregate principal and accrued interest . the proceeds from the issuance of the 2020 notes ( such 2020 notes , the `` new notes '' ) , are used for general working capital purposes . the 2020 notes accrue interest at 7.00 % per year , with no principal or interest payments due prior to maturity on march 5 , 2020. the 2020 notes , including original principal and accrued interest , are convertible at any time into the company 's common stock at a price of $ 6.75 per share , pursuant to the terms of the indenture dated as of december 10 , 2015 , by and between the company and us bank national association ( the `` indenture '' ) , under which the new notes were issued . as a result of this transaction , we recorded a debt discount in the amount of $ 2.0 million which is the difference between the proceeds from this transaction and the principal and accrued interest of new notes on the day of the issuance . in addition , based on the conversion rate of $ 6.75 per share , the fair value of the shares receivable on conversion exceed the $ 8.0 million in net proceeds ; therefore , a beneficial conversion feature was recorded in the amount of $ 1.48 million . this amount was recorded as additional debt discount with a corresponding amount recorded as additional paid-in 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. ```debt refinancings . in april 2016 , we entered into a note purchase agreement with new and existing investors ( the `` investors '' ) . pursuant to the agreement , we issued approximately $ 10.0 million of our 7.00 % convertible senior notes due 2020 ( `` 2020 notes ) in aggregate principal and accrued interest . the proceeds from the issuance of the 2020 notes ( such 2020 notes , the `` new notes '' ) , are used for general working capital purposes . the 2020 notes accrue interest at 7.00 % per year , with no principal or interest payments due prior to maturity on march 5 , 2020. the 2020 notes , including original principal and accrued interest , are convertible at any time into the company 's common stock at a price of $ 6.75 per share , pursuant to the terms of the indenture dated as of december 10 , 2015 , by and between the company and us bank national association ( the `` indenture '' ) , under which the new notes were issued . as a result of this transaction , we recorded a debt discount in the amount of $ 2.0 million which is the difference between the proceeds from this transaction and the principal and accrued interest of new notes on the day of the issuance . in addition , based on the conversion rate of $ 6.75 per share , the fair value of the shares receivable on conversion exceed the $ 8.0 million in net proceeds ; therefore , a beneficial conversion feature was recorded in the amount of $ 1.48 million . this amount was recorded as additional debt discount with a corresponding amount recorded as additional paid-in capital . ``` Suspicious Activity Report : the project has received permits in accordance with the california environmental quality act ( `` ceqa `` ) which allow the capture and conservation of 2.5 million acre-feet of groundwater over 50 years under the terms of a groundwater management plan approved by san bernardino county , which is responsible for groundwater use at the project area . our 2017 working capital requirements relate largely to the final development activities associated with the water project and those activities consistent with the water project related to further development of our land and agricultural assets . while we continue to believe that the ultimate implementation of the water project will provide the primary source of our future cash flow , we also believe there is significant additional value in our underlying agricultural assets . demand for agricultural land with water rights is at an all-time high ; therefore , in addition to our water project proposal , we are engaged in agricultural joint ventures at the cadiz/fenner property that put some of the groundwater currently being lost to evaporation from the underlying aquifer system to immediate beneficial use . we have farmed portions of the cadiz/fenner property since the late 1980s relying on groundwater from the aquifer system for irrigation and have found the site is well suited for various permanent and seasonal crops . presently , the property has 2,100 acres leased to third parties for a variety of crops , including citrus , dried-on-the-vine raisins and seasonal vegetables . we also continue to explore additional uses of our land and water resource assets , including renewable energy development , the marketing of our approved desert tortoise land conservation bank , which is located on our properties outside the water project area , and other long-term legacy uses of our properties , such as habitat conservation and cultural development . w ater resource development the water project is designed to supply , capture and conserve billions of gallons of renewable native groundwater currently being lost annually to evaporation from the aquifer system underlying our cadiz/fenner property , and provide a new reliable water supply for approximately 400,000 people in southern california . the total quantity of groundwater to be recovered and conveyed to water project participants will not exceed a long-term annual average of 50,000 acre-feet per year for 50 years . the water project also offers participants the ability to carry-over their annual supply and store it in the groundwater basin from year to year . a second phase of the water project , phase ii , will offer up to one million acre-feet of storage capacity that can be used to hold imported water supplies at the water project area . 25 water project facilities required for phase i primarily include , among other things : · high-yield wells designed to efficiently recover available native groundwater from beneath the water project area ; · a water conveyance pipeline to deliver water from the well-field to the cra for further delivery to project participants ; and · an energy source to provide power to the well-field , pipeline and pumping facilities . if an imported water storage component of the project is ultimately implemented in phase ii , the following additional facilities would be required , among other things : · facilities to pump water through the conveyance pipeline from the cra to the water project well-field and or through the company 's pipeline from cadiz to barstow , ca ; and · spreading basins , which are shallow settling ponds that will be configured to efficiently percolate water from the ground surface down to the water table using subsurface storage capacity for the storage of water . in 2016 , the company focused on completing the remaining steps to implement the project , including clearance to use an existing railroad right-of-way for its conveyance pipeline and defending the water project 's ceqa permits in the california court of appeal . prior to construction , the water project must ( 1 ) complete efforts to secure its pipeline right-of-way , ( 2 ) finalize contracts with project participating agencies and secure transportation arrangements to deliver water into each participant 's service area , and ( 3 ) secure private construction financing . below is a discussion of present activities to advance these objectives . ( 1 ) water conveyance pipeline right-of-way pipeline from cadiz to cra in september 2008 , we secured a right-of-way for the water project 's water conveyance pipeline by entering into a lease agreement with the arizona & california railroad company ( `` arzc `` ) , which operated an active shortline railroad extending from cadiz to matthie , arizona . the agreement allows for the use of a portion of the railroad 's right-of-way to construct and operate a water conveyance pipeline for a period up to 99 years . the buried pipeline would be constructed parallel to the railroad tracks and be used to convey water between our cadiz valley property and the cra in freda , california . our lease agreement with the arzc also expressly requires that the project further several railroad purposes and , under the terms of the lease agreement , the arzc reserved water supplies from the project for its operational needs as well as access to project facilities , such as roads and power appurtenances , for the benefit of its railroad operation . in september 2013 , we also entered into a trackage rights agreement with the arzc that would enable the operation of steam-powered , passenger excursion trains on the line powered by water made available from the pipeline . story_separator_special_tag credits sold by the fenner bank will fund our permanent preservation of the land as well as research by outside entities , including san diego zoo global , into desert tortoise health and species protection . 31 other opportunities other opportunities in the water and agricultural or related infrastructure business complementary to our current objectives could provide new opportunities for our company . over the longer-term , we believe the population of southern california , nevada and arizona will continue to grow , and that , in time , the economics of commercial and residential development at our properties may become attractive . we remain committed to the sustainable use of our land and water assets , and will continue to explore all opportunities for environmentally responsible development of these assets . we can not predict with certainty which of these various opportunities will ultimately be utilized . results of operations ( a ) year ended december 31 , 2016 compared to year ended december 31 , 2015 we have not received significant revenues from our water resource and real estate development activity to date . our revenues have been limited to our agricultural operations . as a result , we have historically incurred a net loss from operations . we had revenues of $ 412 thousand for the year ended december 31 , 2016 , and $ 304 thousand for the year ended december 31 , 2015. the net loss totaled $ 26.3 million for the year ended december 31 , 2016 , compared with a net loss of $ 24.0 million for the year ended december 31 , 2015. the higher loss in 2016 was primarily related to a $ 2.25 million loss on extinguishment of debt . the higher 2016 loss was also related to higher interest expense on additional convertible debt issued and higher amortization expense , offset by a decrease in litigation costs related to the water project due to the timing of the appellate litigation . our primary expenses are our ongoing overhead costs associated with the development of the water project ( i.e . , general and administrative expense ) and our interest expense . we will continue to incur non-cash expense in connection with our management and director equity incentive compensation plans . revenues . revenue totaled $ 412 thousand during the year ended december 31 , 2016 , compared to $ 304 thousand during the year ended december 31 , 2015. the 2016 revenue is primarily related to rental income from the fvf lease ( see `` agricultural development `` , above ) . cost of sales . cost of sales were zero for the year ended december 31 , 2016 , compared with $ 334 thousand during the year ended december 31 , 2015 . 32 general and administrative expenses . general and administrative expenses during the year ended december 31 , 2016 , totaled $ 9.3 million compared with $ 13.7 million for the year ended december 31 , 2015. non-cash compensation costs related to stock and option awards are included in general and administrative expenses . general and administrative expenses , exclusive of stock-based compensation costs , totaled $ 8.0 million in the year ended december 31 , 2016 , compared with $ 12.6 million for the year ended december 31 , 2015. the decrease in general and administrative expense in 2016 was primarily due to lower litigation costs related to the water project due to the timing of the appellate litigation ( see item 1 . – `` business , ( a ) general development of business `` , above . ) compensation costs from stock and option awards for the year ended december 31 , 2016 , totaled $ 1.3 million compared with $ 1.1 million for the year ended december 31 , 2015. the higher 2016 expense was primarily due to higher stock-based non-cash compensation costs related to shares awarded to the brownstein law firm for certain legal and advisory services to the company . depreciation . depreciation expense totaled $ 292 thousand for the year ended december 31 , 2016 , and $ 270 thousand for the year ended december 31 , 2015. interest expense , net . net interest expense totaled $ 14.9 million during the year ended december 31 , 2016 , compared to $ 10.1 million during 2015. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_3_th the interest on outstanding debt increased from $ 8.2 million to $ 9.7 million due to the compounded interest on the debt facilities resulting in a higher principal balance . amortization of debt discount increased from $ 1.6 million to $ 5.0 million primarily due to the acceleration of unamortized debt discount related to the conversion of approximately $ 2.8 million in original principal amount of the 2020 notes that were issued in april 2016. see note 6 to the consolidated financial statements , `` long-term debt `` . story_separator_special_tag roman ' , times , serif ; font-variant : normal ; width : 9pt ; font-weight : bold ; font-style : italic ; display : inline-block `` > interest expense , net . net interest expense totaled $ 10.1 million during the year ended december 31 , 2015 , compared to $ 8.5 million during 2014. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_4_th the interest on outstanding debt increased from $ 7.7 million to $ 8.2 million due to the compounded interest on the debt facilities resulting in a higher principal balance . see note 6 to the consolidated financial statements , `` long-term debt `` . prior debt refinancings . in november 2015 , we entered into an agreement with our senior lenders which granted us the right to extend the maturity date of an original $ 30 million first tranche of our secured senior debt from march 2016

insurance products – we offer optional payment and collateral protection insurance to our direct loan customers . small and large installment loans are our core products and will be the drivers of our future growth . our primary sources of revenue are interest and fee income from our loan products , of which interest and fees relating to small and large installment loans are the largest component . in addition to interest and fee income from loans , we derive revenue from optional insurance products purchased by customers of our direct loan products . factors affecting our results of operations our business is driven by several factors affecting our revenues , costs , and results of operations , including the following : quarterly information and seasonality . our loan volume and contractual delinquency follow seasonal trends . demand for our small and large loans is typically highest during the second , third , and fourth quarters , which we believe is largely due to customers borrowing money for vacations , back-to-school , and holiday spending . with the exception of automobile and retail loans , loan demand has generally been the lowest during the first quarter , which we believe is largely due to the timing of income tax refunds . delinquencies generally reach their lowest point in the first quarter of the year and rise throughout the remainder of the fiscal year . consequently , we experience seasonal fluctuations in our operating results and cash needs . growth in loan portfolio . the revenue that we derive from interest and fees is largely driven by the balance of loans that we originate and purchase . average finance receivables grew 10.9 % from $ 477.4 million in 2013 to $ 529.5 million in 2014 , grew 8.2 % to $ 572.8 million in 2015 , and grew 14.8 % to $ 657.4 million in 2016. we source our loans through our branches and our direct mail program , as well as through automobile dealerships , retail partners , and our consumer website . our loans are made almost exclusively in geographic markets served by our network of branches . increasing the number of loans per branch and the number of branches we operate allows us to increase the number of loans that we are able to service . we opened 8 , 31 , and 36 net new branches in 2016 , 2015 , and 2014 , respectively . we believe we have the opportunity to add as many as 700 additional branches in states where it is currently favorable for us to conduct business , and we have plans to continue to grow our branch network . product mix . we charge different interest rates and fees and are exposed to different credit risks with respect to the various types of loans we offer . our product mix also varies to some extent by state , and we may further diversify our product mix in the future . asset quality and allowance for credit losses . our results of operations are highly dependent upon the quality of our loan portfolio . we recorded a $ 63.0 million provision for credit losses during 2016 ( or 9.6 % of average finance receivables ) and a $ 47.3 million provision for credit losses during 2015 ( or 8.3 % of average finance receivables ) . the quality of our loan portfolio is the result of our ability to enforce sound underwriting standards , maintain diligent servicing of the portfolio , and respond to changing economic conditions as we grow our loan portfolio . in late 2014 , we created a credit risk function and have been making changes to continue to improve our credit underwriting guidelines . we believe that these changes have impacted , and will continue to impact , our business and results of operations , and improved credit quality in our portfolio . we will continue to monitor how these changes impact our business and results of operations , and we will make further revisions to our credit underwriting guidelines when appropriate . the allowance for credit losses calculation uses the current delinquency profile and historical delinquency roll rates as key data points in estimating the allowance . we believe that the primary underlying factors driving the provision for credit losses for each loan type are our underwriting standards , the general economic conditions 53 in the areas in which we conduct business , portfolio growth , and the effectiveness of our collection efforts . in addition , the market for repossessed automobiles at auction is another underlying factor that we believe influences the provision for credit losses for automobile purchase loans and , to a lesser extent , large loans . we monitor these factors , and the amount and past due status of delinquencies for all loans one or more days past due , to identify trends that might require us to modify the allowance for credit losses . interest rates . our costs of funds are affected by changes in interest rates , and the interest rate that we pay on our senior revolving credit facility is a variable rate . we have purchased interest rate cap contracts with an aggregate notional principal amount of $ 200.0 million and 2.50 % strike rates against the one-month libor . $ 150.0 million of these contracts expire in april 2018 , with the remaining $ 50.0 million expiring in march 2019. when the one-month libor exceeds 2.50 % , the counterparty reimburses us for the excess over 2.50 % . no payment is required by us or the counterparty when the one-month libor is below 2.50 % . operating costs . our financial results are impacted by the costs of operations and home office functions . those costs are included in general and administrative expenses on our consolidated statements of income . story_separator_special_tag our general and administrative expenses , comprising expenses for personnel , occupancy , marketing , and other expenses , increased $ 3.0 million , or 2.6 % , to $ 118.6 million in 2016 from $ 115.6 million in 2015. our receivable efficiency ratio ( general and administrative expenses as a percentage of average finance receivables ) decreased to 18.0 % during 2016 from 20.2 % in 2015. despite adding 8 net branches and increasing finance receivables by $ 89.3 million , or 14.2 % , since december 31 , 2015 , our operations general and administrative expenses decreased $ 0.2 million in 2016 compared to 2015. this decrease in expense is primarily due to improved efficiencies , which has allowed operations headcount to decrease to 1,239 from 1,350 at december 31 , 2015. home office general and administrative expenses increased $ 3.5 million in 2016 compared to 2015 primarily due to an increase in incentive plan expenses , new loan management system implementation costs , increased headcount , and the costs related to the transition to a new ceo . marketing expenses decreased $ 0.2 million in 2016 compared to 2015. the increase in general and administrative expenses is explained in greater detail below . personnel . the largest component of general and administrative expenses is personnel expense , which decreased $ 0.3 million , or 0.4 % , to $ 69.0 million in 2016 from $ 69.2 million in 2015. we experienced several offsetting changes in personnel expense during 2016 compared to 2015. we incurred non-operating compensation-related costs during 2015 of $ 1.5 million related to a ceo restricted stock grant and $ 0.5 million related to the retirement agreement costs of our former vice chairman . operations personnel expense decreased 60 $ 2.8 million in 2016 primarily due to lower branch incentive plan payouts achieved , more cost effective collection activities and the related reduction in automobile allowance expense , and the reduction in branch overtime expense . home office salary expense increased $ 2.1 million in 2016 from added headcount during 2015 and 2016 primarily in our information technology and credit risk departments . incentive compensation expense increased $ 3.0 million primarily due to the 2016 annual grant of awards under our long-term incentive plan , which have three-year performance targets . we expect incentive plan expense to increase in future years due to annual grants under our long-term incentive plan . occupancy . occupancy expenses increased $ 2.7 million , or 15.9 % , to $ 20.1 million in 2016 from $ 17.3 million in 2015. the increase in occupancy expenses was the result of new branches opened in late 2015 and early 2016 , as well as expenses associated with a larger home office building . to accommodate our company 's growth , we signed an 11-year lease in may 2016 for a larger home office building that we began occupying in october 2016. the new lease will increase annual occupancy expense by approximately $ 0.6 million . additionally , we frequently experience increases in rent as we renew existing branch leases . marketing . marketing expenses decreased $ 0.2 million , or 2.6 % , to $ 6.8 million in 2016 from $ 7.0 million in 2015. the decrease was primarily due to an 11.0 % decrease in total direct mail marketing compared to 2015. the reduction in total mail quantity was the result of our efforts to fine-tune our processes to more efficiently target potential customers . other expenses . other expenses increased $ 0.7 million , or 3.3 % , to $ 22.8 million in 2016 from $ 22.0 million in 2015. the increase was primarily due to a $ 0.8 million increase in non-operating expenses related to the implementation of the nortridge loan management system and a $ 0.5 million increase in bank charges due to a higher branch count and increased fees for accepting debit card payments , partially offset by a decrease of $ 0.6 million in legal costs . in 2016 , we began using the nortridge loan management system in our north carolina , virginia , and new mexico branches , and we expect to convert to the nortridge loan management system in our remaining six states by the end of 2017. we expect technology costs to remain elevated in 2017 in connection with our efforts to transition to the nortridge loan management system . interest expense . interest expense on long-term debt increased $ 3.7 million , or 22.8 % , to $ 19.9 million in 2016 from $ 16.2 million in 2015. the increase was primarily due to stock repurchases of $ 25.0 million and loan growth , each of which contributed to an increase in the average balance of our senior revolving credit facility . the average cost of our long-term debt decreased 0.03 % to 4.52 % in 2016 from 4.55 % in 2015. income taxes . income taxes increased $ 0.1 million , or 1.0 % , to $ 14.9 million in 2016 from $ 14.8 million in 2015. the increase was primarily due to an increase in our net income before taxes . also , our effective tax rate decreased 0.4 % to 38.3 % in 2016 from 38.7 % in 2015. the decrease was primarily due to a lower amount of non-deductible compensation . comparison of december 31 , 2015 , versus december 31 , 2014 small loans ( £ $ 2,500 ) – small loans outstanding increased by $ 18.6 million , or 5.8 % , to $ 338.2 million at december 31 , 2015 , from $ 319.5 million at december 31 , 2014. the growth in receivables in branches opened in 2014 and 2015 contributed to the growth in overall small loans outstanding . large loans ( > $ 2,500 ) – large loans outstanding increased by $ 100.4 million , or 217.6 % , to $ 146.6 million at december 31 , 2015 from $

cash flow . operating activities . net cash provided by operating activities increased by $ 16.9 million , or 20.3 % , to $ 99.9 million in 2016 from $ 83.0 million in 2015. the increase was primarily due to higher net income , before provision for credit losses , resulting from growth in the business . investing activities . investing activities consist of finance receivables originated and purchased , net change in restricted cash , the purchase of intangible assets , and the purchase of property and equipment for new and existing branches . net cash used in investing activities for 2016 was $ 157.4 million compared to $ 146.5 million in 2015 , a net increase of $ 10.8 million . the increase was primarily due to higher net originations of finance receivables , higher purchases of intangible assets and property and equipment , offset by the net change in restricted cash . 66 financing activities . financing activities consist of borrowings and payments on our outstanding indebtedness , issuance of common stock , and repurchases of common stock . during 2016 , net cash provided by financing activities was $ 54.2 million , a change of $ 12.9 million compared to the $ 67.2 million net cash provided by financing activities in 2015. the decrease in net cash provided by financing activities was primarily a result of an increase in net advances on long-term debt of $ 10.9 million offset by stock repurchases of $ 25.0 million . financing arrangements . senior revolving credit facility . we entered into the fifth amended and restated senior revolving credit facility with a syndicate of banks in september 2015 , which we subsequently amended in may 2016 and august 2016. the senior revolving credit facility provides for up to $ 585.0 million in availability , with a borrowing base of up to a maximum of 85 % of eligible secured finance receivables and up to a maximum of 70 % of eligible unsecured finance receivables , in each case , subject to adjustment at certain credit quality levels ( 83 % and 68 % as of december 31 , 2016 , 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 flow . operating activities . net cash provided by operating activities increased by $ 16.9 million , or 20.3 % , to $ 99.9 million in 2016 from $ 83.0 million in 2015. the increase was primarily due to higher net income , before provision for credit losses , resulting from growth in the business . investing activities . investing activities consist of finance receivables originated and purchased , net change in restricted cash , the purchase of intangible assets , and the purchase of property and equipment for new and existing branches . net cash used in investing activities for 2016 was $ 157.4 million compared to $ 146.5 million in 2015 , a net increase of $ 10.8 million . the increase was primarily due to higher net originations of finance receivables , higher purchases of intangible assets and property and equipment , offset by the net change in restricted cash . 66 financing activities . financing activities consist of borrowings and payments on our outstanding indebtedness , issuance of common stock , and repurchases of common stock . during 2016 , net cash provided by financing activities was $ 54.2 million , a change of $ 12.9 million compared to the $ 67.2 million net cash provided by financing activities in 2015. the decrease in net cash provided by financing activities was primarily a result of an increase in net advances on long-term debt of $ 10.9 million offset by stock repurchases of $ 25.0 million . financing arrangements . senior revolving credit facility . we entered into the fifth amended and restated senior revolving credit facility with a syndicate of banks in september 2015 , which we subsequently amended in may 2016 and august 2016. the senior revolving credit facility provides for up to $ 585.0 million in availability , with a borrowing base of up to a maximum of 85 % of eligible secured finance receivables and up to a maximum of 70 % of eligible unsecured finance receivables , in each case , subject to adjustment at certain credit quality levels ( 83 % and 68 % as of december 31 , 2016 , respectively ) . ``` Suspicious Activity Report : insurance products – we offer optional payment and collateral protection insurance to our direct loan customers . small and large installment loans are our core products and will be the drivers of our future growth . our primary sources of revenue are interest and fee income from our loan products , of which interest and fees relating to small and large installment loans are the largest component . in addition to interest and fee income from loans , we derive revenue from optional insurance products purchased by customers of our direct loan products . factors affecting our results of operations our business is driven by several factors affecting our revenues , costs , and results of operations , including the following : quarterly information and seasonality . our loan volume and contractual delinquency follow seasonal trends . demand for our small and large loans is typically highest during the second , third , and fourth quarters , which we believe is largely due to customers borrowing money for vacations , back-to-school , and holiday spending . with the exception of automobile and retail loans , loan demand has generally been the lowest during the first quarter , which we believe is largely due to the timing of income tax refunds . delinquencies generally reach their lowest point in the first quarter of the year and rise throughout the remainder of the fiscal year . consequently , we experience seasonal fluctuations in our operating results and cash needs . growth in loan portfolio . the revenue that we derive from interest and fees is largely driven by the balance of loans that we originate and purchase . average finance receivables grew 10.9 % from $ 477.4 million in 2013 to $ 529.5 million in 2014 , grew 8.2 % to $ 572.8 million in 2015 , and grew 14.8 % to $ 657.4 million in 2016. we source our loans through our branches and our direct mail program , as well as through automobile dealerships , retail partners , and our consumer website . our loans are made almost exclusively in geographic markets served by our network of branches . increasing the number of loans per branch and the number of branches we operate allows us to increase the number of loans that we are able to service . we opened 8 , 31 , and 36 net new branches in 2016 , 2015 , and 2014 , respectively . we believe we have the opportunity to add as many as 700 additional branches in states where it is currently favorable for us to conduct business , and we have plans to continue to grow our branch network . product mix . we charge different interest rates and fees and are exposed to different credit risks with respect to the various types of loans we offer . our product mix also varies to some extent by state , and we may further diversify our product mix in the future . asset quality and allowance for credit losses . our results of operations are highly dependent upon the quality of our loan portfolio . we recorded a $ 63.0 million provision for credit losses during 2016 ( or 9.6 % of average finance receivables ) and a $ 47.3 million provision for credit losses during 2015 ( or 8.3 % of average finance receivables ) . the quality of our loan portfolio is the result of our ability to enforce sound underwriting standards , maintain diligent servicing of the portfolio , and respond to changing economic conditions as we grow our loan portfolio . in late 2014 , we created a credit risk function and have been making changes to continue to improve our credit underwriting guidelines . we believe that these changes have impacted , and will continue to impact , our business and results of operations , and improved credit quality in our portfolio . we will continue to monitor how these changes impact our business and results of operations , and we will make further revisions to our credit underwriting guidelines when appropriate . the allowance for credit losses calculation uses the current delinquency profile and historical delinquency roll rates as key data points in estimating the allowance . we believe that the primary underlying factors driving the provision for credit losses for each loan type are our underwriting standards , the general economic conditions 53 in the areas in which we conduct business , portfolio growth , and the effectiveness of our collection efforts . in addition , the market for repossessed automobiles at auction is another underlying factor that we believe influences the provision for credit losses for automobile purchase loans and , to a lesser extent , large loans . we monitor these factors , and the amount and past due status of delinquencies for all loans one or more days past due , to identify trends that might require us to modify the allowance for credit losses . interest rates . our costs of funds are affected by changes in interest rates , and the interest rate that we pay on our senior revolving credit facility is a variable rate . we have purchased interest rate cap contracts with an aggregate notional principal amount of $ 200.0 million and 2.50 % strike rates against the one-month libor . $ 150.0 million of these contracts expire in april 2018 , with the remaining $ 50.0 million expiring in march 2019. when the one-month libor exceeds 2.50 % , the counterparty reimburses us for the excess over 2.50 % . no payment is required by us or the counterparty when the one-month libor is below 2.50 % . operating costs . our financial results are impacted by the costs of operations and home office functions . those costs are included in general and administrative expenses on our consolidated statements of income . story_separator_special_tag our general and administrative expenses , comprising expenses for personnel , occupancy , marketing , and other expenses , increased $ 3.0 million , or 2.6 % , to $ 118.6 million in 2016 from $ 115.6 million in 2015. our receivable efficiency ratio ( general and administrative expenses as a percentage of average finance receivables ) decreased to 18.0 % during 2016 from 20.2 % in 2015. despite adding 8 net branches and increasing finance receivables by $ 89.3 million , or 14.2 % , since december 31 , 2015 , our operations general and administrative expenses decreased $ 0.2 million in 2016 compared to 2015. this decrease in expense is primarily due to improved efficiencies , which has allowed operations headcount to decrease to 1,239 from 1,350 at december 31 , 2015. home office general and administrative expenses increased $ 3.5 million in 2016 compared to 2015 primarily due to an increase in incentive plan expenses , new loan management system implementation costs , increased headcount , and the costs related to the transition to a new ceo . marketing expenses decreased $ 0.2 million in 2016 compared to 2015. the increase in general and administrative expenses is explained in greater detail below . personnel . the largest component of general and administrative expenses is personnel expense , which decreased $ 0.3 million , or 0.4 % , to $ 69.0 million in 2016 from $ 69.2 million in 2015. we experienced several offsetting changes in personnel expense during 2016 compared to 2015. we incurred non-operating compensation-related costs during 2015 of $ 1.5 million related to a ceo restricted stock grant and $ 0.5 million related to the retirement agreement costs of our former vice chairman . operations personnel expense decreased 60 $ 2.8 million in 2016 primarily due to lower branch incentive plan payouts achieved , more cost effective collection activities and the related reduction in automobile allowance expense , and the reduction in branch overtime expense . home office salary expense increased $ 2.1 million in 2016 from added headcount during 2015 and 2016 primarily in our information technology and credit risk departments . incentive compensation expense increased $ 3.0 million primarily due to the 2016 annual grant of awards under our long-term incentive plan , which have three-year performance targets . we expect incentive plan expense to increase in future years due to annual grants under our long-term incentive plan . occupancy . occupancy expenses increased $ 2.7 million , or 15.9 % , to $ 20.1 million in 2016 from $ 17.3 million in 2015. the increase in occupancy expenses was the result of new branches opened in late 2015 and early 2016 , as well as expenses associated with a larger home office building . to accommodate our company 's growth , we signed an 11-year lease in may 2016 for a larger home office building that we began occupying in october 2016. the new lease will increase annual occupancy expense by approximately $ 0.6 million . additionally , we frequently experience increases in rent as we renew existing branch leases . marketing . marketing expenses decreased $ 0.2 million , or 2.6 % , to $ 6.8 million in 2016 from $ 7.0 million in 2015. the decrease was primarily due to an 11.0 % decrease in total direct mail marketing compared to 2015. the reduction in total mail quantity was the result of our efforts to fine-tune our processes to more efficiently target potential customers . other expenses . other expenses increased $ 0.7 million , or 3.3 % , to $ 22.8 million in 2016 from $ 22.0 million in 2015. the increase was primarily due to a $ 0.8 million increase in non-operating expenses related to the implementation of the nortridge loan management system and a $ 0.5 million increase in bank charges due to a higher branch count and increased fees for accepting debit card payments , partially offset by a decrease of $ 0.6 million in legal costs . in 2016 , we began using the nortridge loan management system in our north carolina , virginia , and new mexico branches , and we expect to convert to the nortridge loan management system in our remaining six states by the end of 2017. we expect technology costs to remain elevated in 2017 in connection with our efforts to transition to the nortridge loan management system . interest expense . interest expense on long-term debt increased $ 3.7 million , or 22.8 % , to $ 19.9 million in 2016 from $ 16.2 million in 2015. the increase was primarily due to stock repurchases of $ 25.0 million and loan growth , each of which contributed to an increase in the average balance of our senior revolving credit facility . the average cost of our long-term debt decreased 0.03 % to 4.52 % in 2016 from 4.55 % in 2015. income taxes . income taxes increased $ 0.1 million , or 1.0 % , to $ 14.9 million in 2016 from $ 14.8 million in 2015. the increase was primarily due to an increase in our net income before taxes . also , our effective tax rate decreased 0.4 % to 38.3 % in 2016 from 38.7 % in 2015. the decrease was primarily due to a lower amount of non-deductible compensation . comparison of december 31 , 2015 , versus december 31 , 2014 small loans ( £ $ 2,500 ) – small loans outstanding increased by $ 18.6 million , or 5.8 % , to $ 338.2 million at december 31 , 2015 , from $ 319.5 million at december 31 , 2014. the growth in receivables in branches opened in 2014 and 2015 contributed to the growth in overall small loans outstanding . large loans ( > $ 2,500 ) – large loans outstanding increased by $ 100.4 million , or 217.6 % , to $ 146.6 million at december 31 , 2015 from $

we commenced a commercial launch of our free application in the united kingdom in late 2013 and commenced an initial soft launch of the full dario solution ( including the app and the dario blood glucose monitoring system ) in selected jurisdictions in march 2014 and continued to scale up launch during 2014 in the united kingdom , the netherlands and new zealand , and during 2015 in australia , israel and canada , with the goal of collecting customer feedback to refine our longer-term roll-out strategy . we are consistently adding new additional features and functionality in making dario the new standard of care in diabetes data management . through our israeli subsidiary , labstyle innovation ltd. , our plan of operations is to continue the development of our software and hardware offerings and related technology . during 2015 , we successfully launched the dario smart diabetes management solution according to plan and are currently expanding the launch to other jurisdictions . in 2016 , we established our direct to consumer model in the u.s. to achieve higher and faster penetration into the market during the launch phase . we have invested in a robust digital marketing department with in-house platforms , experienced personnel and robust infrastructures to support expected growth of users and online subscribers in this market . during the third quarter of 2016 we expanded these effort to include australia as well . in 2017 , we expanded our direct to consumer marketing efforts in the united kingdom in cooperation with our local distributor and launched similar marketing efforts in germany . in support of these goals , we intend to utilize our funds for the following activities : · ramp up of mass production , marketing and distribution and sales efforts related to the dario smart diabetes management solution and the dario engage platform ; . 52 · develop our customer support and telemarketing services in order to support the expect growth of our revenues and the increase of user , and service provider who will use our platform to better serve people with diabetes and improve their clinical outcome ; · continued product and software development , and related activities ( including costs associated with application development and data storage capabilities as well as any necessary design modifications to the various elements of the dario smart diabetes management solution , the dario engage platform and the dario intelligence tools and capabilities ) ; · continued work on registration of our patents worldwide ; · regulatory and quality assurance matters ; · professional fees associated with being a publicly reporting company ; and · general and administrative matters . readers are cautioned that , according to our management 's estimates , based on our budget and the initial launch of our commercial sales , we believe that we will have sufficient resources to continue our activity only into march 2019 without raising additional capital . this includes an amount of anticipated inflows from sales of dario through direct sales in the united states and through distribution partners . as such , we have a significant present need for capital . if we are unable to scale up our commercial launch of dario or meet our commercial sales targets ( or if we are unable to ramp up revenues ) , and if we are unable to obtain additional capital resources in the near term , we may be unable to continue activities , absent a material alternations in our business plans and our business might fail . critical accounting policies our consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the united states ( “ us gaap ” ) . our fiscal year ends december 31. this management 's discussion and analysis of financial condition and results of operations discuss our consolidated financial statements , which have been prepared in accordance with us gaap . the preparation of these consolidated financial statements requires making estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements , as well as the reported revenues and expenses for the reporting periods . on an ongoing basis , we evaluate such estimates and judgments . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ ( perhaps significantly ) from these estimates under different assumptions or conditions . while all the accounting policies impact the consolidated financial statements , certain policies may be viewed to be critical . our management believes that the accounting policies which involve more significant judgments and estimates used in the preparation of our consolidated financial statements , include revenue recognition , inventories , liability related to certain warrants , and accounting for production lines and its related useful life and impairment . revenue recognition we derive revenues from the sale of our device-specific disposables test strip cartridges , lancets and our dario blood glucose monitoring system through distributors or directly to end users . the dario smart diabetes management application is offered for a free download and we do not have a recurring hosting commitment with our end users relating specifically to the application . 53 revenues from product sales are recognized in accordance with asc 605-10 , “ revenue recognition ” , when delivery has occurred , persuasive evidence of an agreement exists , the vendor 's fee is fixed or determinable , no further obligation exists and collectability is probable . we generally do not grant a right of return . story_separator_special_tag story_separator_special_tag 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.5in `` > the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_10_th 58 net cash used in operating activities net cash used in operating activities was $ 10,619,000 for the year ended december 31 , 2017 compared to $ 8,379,000 used in operations for the same period in 2016. cash used in operations increased mainly due to increase in our research and development expenses and in our sales and marketing activities in promoting our product sales . net cash used in investing activities net cash used in investing activities was $ 219,000 for the year ended december 31 , 2016 compared to $ 947,000 for the year ended december 31 , 2016. cash used in investing activities decreased mainly due to lower investment in manufacturing facilities to support the increase in sales . net cash provided by financing activities net cash provided by financing activities was $ 13,463,000 for the year ended december 31 , 2017 compared to $ 7,748,000 for the year ended december 31 , 2016. during the year ended december 31 , 2017 , we raised net proceeds in an amount of approximately $ 13,463,000 , of which approximately $ 4,793,000 was raised through our august 2017 offering . contractual obligations set forth below is a summary of our current obligations as of december 31 , 2017 to make future payments due by the period indicated below , excluding payables and accruals . we expect to be able to meet our obligations in the ordinary course . operating lease obligations are for motor vehicle and real property leases which we use in our business . purchasing obligations consists of outstanding purchase orders for materials and services from our vendors . replace_table_token_11_th 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 under securities and exchange commission rules . contingencies we account for our contingent liabilities in accordance with asc 450 “ contingencies “ . a provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated . with respect to legal matters , provisions are reviewed and adjusted to reflect the impact of negotiations , estimated settlements , legal rulings , advice of legal counsel and other information and events pertaining to a particular matter . currently , we are not a party to any ligation that we believe could have a material adverse effect on our business , financial position , results of operations or cash flows . 59 recently issued and adopted accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standard update ( “ asu ” ) 2014-09 , “ revenue from contracts with customers ” topic 606 ) . this asu provides a five-step approach to account for revenue arising from contracts with customers . the asu requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this revenue standard will be effective for the company starting the first quarter of 2019. the new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment . we are currently in the process of determining the method of adoption and assessing the impact of asu on our consolidated financial position , results of operations and cash flows . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) , ” which is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . in order to meet that objective , the new standard requires recognition of the assets and liabilities that arise from leases . a lessee will be required to recognize on the balance sheet the assets and liabilities for leases with lease terms of more than 12 months . accounting by lessors will remain largely unchanged from current u.s. generally accepted accounting principles . the new standard is effective for public companies for fiscal years beginning after december 15 , 2018 , and interim periods within those years , with early adoption permitted . we are currently evaluating the effect that adopting this standard will have on the consolidated financial statements and related disclosures . in november 2016 , the fasb issued accounting standards update no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( asu 2016-18 ) , which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows . this guidance will be effective from the first quarter of 2019 and early adoption is permitted . we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements and related disclosures . in may 2017 , the fasb issued asu 2017-09 , “ compensation - stock compensation ( topic 718 ) , scope of modification accounting . ” this asu clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . entities will apply the modification accounting guidance if the value , vesting conditions or classification of the award changes . they will have to make all of the disclosures about modifications that are required today , in addition to disclosing that compensation expense

liquidity and capital resources as of december 31 , 2017 , we had approximately $ 3,718,000 in cash and cash equivalents compared to $ 1,093,000 at december 31 , 2016. we have experienced cumulative losses of $ 70,958,000 from inception ( august 11 , 2011 ) through december 31 , 2017 , and have a stockholders ' equity of $ 3,941,000 at december 31 , 2017. in addition , we have not completed our efforts to establish a stable recurring source of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future . there is no assurances that we will be able to obtain an adequate level of financing needed for our near term requirements or the long-term development and commercialization of our product . these conditions raise substantial doubt about our ability to continue as a “ going concern ” . since inception , we have financed our operations primarily through private placements and public offerings of our common stock and warrants to purchase shares of our common stock , receiving aggregate net proceeds totaling $ 52,263,000 as of december 31 , 2017. on january 9 , 2017 , we commenced a private placement offering of up to $ 5,100,000 consisting of up to 1,821,437 shares of common stock and warrants to purchase up to 1,821,437 shares of common stock . the warrants are exercisable after the six month anniversary of each respective closing and will expire on the 5 year anniversary of their issuance .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , 2017 , we had approximately $ 3,718,000 in cash and cash equivalents compared to $ 1,093,000 at december 31 , 2016. we have experienced cumulative losses of $ 70,958,000 from inception ( august 11 , 2011 ) through december 31 , 2017 , and have a stockholders ' equity of $ 3,941,000 at december 31 , 2017. in addition , we have not completed our efforts to establish a stable recurring source of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future . there is no assurances that we will be able to obtain an adequate level of financing needed for our near term requirements or the long-term development and commercialization of our product . these conditions raise substantial doubt about our ability to continue as a “ going concern ” . since inception , we have financed our operations primarily through private placements and public offerings of our common stock and warrants to purchase shares of our common stock , receiving aggregate net proceeds totaling $ 52,263,000 as of december 31 , 2017. on january 9 , 2017 , we commenced a private placement offering of up to $ 5,100,000 consisting of up to 1,821,437 shares of common stock and warrants to purchase up to 1,821,437 shares of common stock . the warrants are exercisable after the six month anniversary of each respective closing and will expire on the 5 year anniversary of their issuance . ``` Suspicious Activity Report : we commenced a commercial launch of our free application in the united kingdom in late 2013 and commenced an initial soft launch of the full dario solution ( including the app and the dario blood glucose monitoring system ) in selected jurisdictions in march 2014 and continued to scale up launch during 2014 in the united kingdom , the netherlands and new zealand , and during 2015 in australia , israel and canada , with the goal of collecting customer feedback to refine our longer-term roll-out strategy . we are consistently adding new additional features and functionality in making dario the new standard of care in diabetes data management . through our israeli subsidiary , labstyle innovation ltd. , our plan of operations is to continue the development of our software and hardware offerings and related technology . during 2015 , we successfully launched the dario smart diabetes management solution according to plan and are currently expanding the launch to other jurisdictions . in 2016 , we established our direct to consumer model in the u.s. to achieve higher and faster penetration into the market during the launch phase . we have invested in a robust digital marketing department with in-house platforms , experienced personnel and robust infrastructures to support expected growth of users and online subscribers in this market . during the third quarter of 2016 we expanded these effort to include australia as well . in 2017 , we expanded our direct to consumer marketing efforts in the united kingdom in cooperation with our local distributor and launched similar marketing efforts in germany . in support of these goals , we intend to utilize our funds for the following activities : · ramp up of mass production , marketing and distribution and sales efforts related to the dario smart diabetes management solution and the dario engage platform ; . 52 · develop our customer support and telemarketing services in order to support the expect growth of our revenues and the increase of user , and service provider who will use our platform to better serve people with diabetes and improve their clinical outcome ; · continued product and software development , and related activities ( including costs associated with application development and data storage capabilities as well as any necessary design modifications to the various elements of the dario smart diabetes management solution , the dario engage platform and the dario intelligence tools and capabilities ) ; · continued work on registration of our patents worldwide ; · regulatory and quality assurance matters ; · professional fees associated with being a publicly reporting company ; and · general and administrative matters . readers are cautioned that , according to our management 's estimates , based on our budget and the initial launch of our commercial sales , we believe that we will have sufficient resources to continue our activity only into march 2019 without raising additional capital . this includes an amount of anticipated inflows from sales of dario through direct sales in the united states and through distribution partners . as such , we have a significant present need for capital . if we are unable to scale up our commercial launch of dario or meet our commercial sales targets ( or if we are unable to ramp up revenues ) , and if we are unable to obtain additional capital resources in the near term , we may be unable to continue activities , absent a material alternations in our business plans and our business might fail . critical accounting policies our consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the united states ( “ us gaap ” ) . our fiscal year ends december 31. this management 's discussion and analysis of financial condition and results of operations discuss our consolidated financial statements , which have been prepared in accordance with us gaap . the preparation of these consolidated financial statements requires making estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements , as well as the reported revenues and expenses for the reporting periods . on an ongoing basis , we evaluate such estimates and judgments . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ ( perhaps significantly ) from these estimates under different assumptions or conditions . while all the accounting policies impact the consolidated financial statements , certain policies may be viewed to be critical . our management believes that the accounting policies which involve more significant judgments and estimates used in the preparation of our consolidated financial statements , include revenue recognition , inventories , liability related to certain warrants , and accounting for production lines and its related useful life and impairment . revenue recognition we derive revenues from the sale of our device-specific disposables test strip cartridges , lancets and our dario blood glucose monitoring system through distributors or directly to end users . the dario smart diabetes management application is offered for a free download and we do not have a recurring hosting commitment with our end users relating specifically to the application . 53 revenues from product sales are recognized in accordance with asc 605-10 , “ revenue recognition ” , when delivery has occurred , persuasive evidence of an agreement exists , the vendor 's fee is fixed or determinable , no further obligation exists and collectability is probable . we generally do not grant a right of return . story_separator_special_tag story_separator_special_tag 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.5in `` > the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_10_th 58 net cash used in operating activities net cash used in operating activities was $ 10,619,000 for the year ended december 31 , 2017 compared to $ 8,379,000 used in operations for the same period in 2016. cash used in operations increased mainly due to increase in our research and development expenses and in our sales and marketing activities in promoting our product sales . net cash used in investing activities net cash used in investing activities was $ 219,000 for the year ended december 31 , 2016 compared to $ 947,000 for the year ended december 31 , 2016. cash used in investing activities decreased mainly due to lower investment in manufacturing facilities to support the increase in sales . net cash provided by financing activities net cash provided by financing activities was $ 13,463,000 for the year ended december 31 , 2017 compared to $ 7,748,000 for the year ended december 31 , 2016. during the year ended december 31 , 2017 , we raised net proceeds in an amount of approximately $ 13,463,000 , of which approximately $ 4,793,000 was raised through our august 2017 offering . contractual obligations set forth below is a summary of our current obligations as of december 31 , 2017 to make future payments due by the period indicated below , excluding payables and accruals . we expect to be able to meet our obligations in the ordinary course . operating lease obligations are for motor vehicle and real property leases which we use in our business . purchasing obligations consists of outstanding purchase orders for materials and services from our vendors . replace_table_token_11_th 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 under securities and exchange commission rules . contingencies we account for our contingent liabilities in accordance with asc 450 “ contingencies “ . a provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated . with respect to legal matters , provisions are reviewed and adjusted to reflect the impact of negotiations , estimated settlements , legal rulings , advice of legal counsel and other information and events pertaining to a particular matter . currently , we are not a party to any ligation that we believe could have a material adverse effect on our business , financial position , results of operations or cash flows . 59 recently issued and adopted accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standard update ( “ asu ” ) 2014-09 , “ revenue from contracts with customers ” topic 606 ) . this asu provides a five-step approach to account for revenue arising from contracts with customers . the asu requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this revenue standard will be effective for the company starting the first quarter of 2019. the new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment . we are currently in the process of determining the method of adoption and assessing the impact of asu on our consolidated financial position , results of operations and cash flows . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) , ” which is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . in order to meet that objective , the new standard requires recognition of the assets and liabilities that arise from leases . a lessee will be required to recognize on the balance sheet the assets and liabilities for leases with lease terms of more than 12 months . accounting by lessors will remain largely unchanged from current u.s. generally accepted accounting principles . the new standard is effective for public companies for fiscal years beginning after december 15 , 2018 , and interim periods within those years , with early adoption permitted . we are currently evaluating the effect that adopting this standard will have on the consolidated financial statements and related disclosures . in november 2016 , the fasb issued accounting standards update no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( asu 2016-18 ) , which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows . this guidance will be effective from the first quarter of 2019 and early adoption is permitted . we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements and related disclosures . in may 2017 , the fasb issued asu 2017-09 , “ compensation - stock compensation ( topic 718 ) , scope of modification accounting . ” this asu clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . entities will apply the modification accounting guidance if the value , vesting conditions or classification of the award changes . they will have to make all of the disclosures about modifications that are required today , in addition to disclosing that compensation expense

more specifically , mattel plans to expand its innovation through ( i ) entrance into the active-play lifestyle category , ( ii ) the global roll-out of mattel 's latest franchise , ever after high , and ( iii ) new products , packaging , and 27 marketing campaigns for its existing key brands . mattel will focus on optimizing its marketing and promotional spend across its brands , customers , and regions to take advantage of its scale across its entire business . mattel also seeks to leverage the strength of its brands , countries , and customers , which include growing its girls portfolio , continuing to invest in emerging and developing markets , and improving execution in both its e-commerce and brick and mortar channels . results of operations 2013 compared to 2012 consolidated results net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . net income for 2013 was $ 903.9 million , or $ 2.58 per diluted share , as compared to net income of $ 776.5 million , or $ 2.22 per diluted share , in 2012. as compared to 2012 , net income for 2013 was positively impacted by lower other selling and administrative expenses due to a 2012 litigation charge of $ 137.8 million , arising out of the litigation between mattel and mga entertainment , inc. ( the “litigation charge” ) , and higher gross margins . in 2012 , the litigation charge reduced net income by $ 87.1 million , or $ 0.25 per share . the following table provides a summary of mattel 's consolidated results for 2013 and 2012 ( in millions , except percentage and basis point information ) : replace_table_token_6_th sales net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . 28 the following table provides a summary of mattel 's consolidated gross sales by brand for 2013 and 2012 : replace_table_token_7_th gross sales were $ 7.12 billion in 2013 , up $ 65.2 million or 1 % , as compared to $ 7.05 billion in 2012 , with no impact from changes in currency exchange rates . the increase in gross sales was due to higher sales of other girls products , partially offset by lower sales of core fisher-price products . of the 25 % increase in other girls gross sales , 20 % was due to higher sales of monster high products , and 5 % was due to the initial launch of the ever after high product line . the 9 % decrease in core fisher-price gross sales reflected product innovation not being strong enough to drive growth , along with lower effectiveness of in-store , commercial , and promotional activities . cost of sales cost of sales as a percentage of net sales was 46.4 % in 2013 , as compared to 46.9 % in 2012. cost of sales was flat at $ 3.01 billion in 2013 and 2012 , as compared to a 1 % increase in net sales . within cost of sales , product and other costs decreased by $ 16.8 million , or 1 % , from $ 2.44 billion in 2012 to $ 2.42 billion in 2013 ; royalty expenses increased $ 6.7 million , or 3 % , from $ 240.2 million in 2012 to $ 246.9 million in 2013 ; and freight and logistics expenses increased by $ 4.4 million , or 1 % , from $ 332.9 million in 2012 to $ 337.3 million in 2013. gross profit gross profit as a percentage of net sales increased to 53.6 % in 2013 from 53.1 % in 2012. the increase in gross profit as a percentage of net sales was primarily due to savings from operational excellence 3.0 programs , favorable product mix , and price increases offset by higher input costs , partially offset by unfavorable changes in foreign currency exchange rates . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers and 29 ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales increased to 11.6 % in 2013 from 11.2 % in 2012 , primarily as a result of lower than expected fourth quarter sales and higher non-media and generic advertising spending . other selling and administrative expenses other selling and administrative expenses were $ 1.56 billion in 2013 , or 24.1 % of net sales , as compared to $ 1.67 billion in 2012 , or 26.0 % of net sales . the decrease in other selling and administrative expenses was primarily due to the litigation charge of $ 137.8 million in 2012 and lower incentive compensation expense of approximately $ 43 million , partially offset by higher other employee-related expenses and investments in strategic initiatives of approximately $ 78 million and an asset impairment charge of approximately $ 14 million . non-operating items interest expense decreased by $ 10.3 million to $ 78.5 million in 2013 , as compared to $ 88.8 million in 2012 , primarily due to lower average interest rates related to long-term borrowings . story_separator_special_tag cost savings programs during 2011 , mattel initiated operational excellence 2.0 , which targeted cumulative cost savings of approximately $ 175 million by the end of 2012. mattel exceeded its operational excellence 2.0 goal by realizing approximately $ 187 million of cumulative gross cost savings throughout the program . the major initiatives within the operational excellence 2.0 program included : a reorganization which resulted in the north america division , additional procurement initiatives designed to fully leverage mattel 's global scale , sku efficiency , and packaging optimization . during 2011 , mattel realized gross cost savings before severance charges and investments of approximately $ 94 million ( or approximately $ 71 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 41 million of legal cost savings . of the gross cost savings realized in 2011 , approximately $ 67 million was reflected within other selling and administrative expenses , approximately $ 15 million within gross profit , and approximately $ 12 million within advertising and promotion expenses . during 2012 , mattel realized gross cost savings before severance charges and investments of approximately $ 93 million ( or approximately $ 77 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 40 million of legal cost savings . of the gross cost savings realized in 2012 , approximately $ 55 million was reflected within other selling and administrative expenses , approximately $ 27 million within gross profit , and approximately $ 11 million within advertising and promotion expenses . 37 beginning in 2013 , mattel initiated the next phase of its cost savings program , operational excellence 3.0 , which targets cumulative gross cost savings of approximately $ 175 million by the end of 2014. the cost savings program is designed to generate sustainable cost savings through the following primary initiatives : manufacturing efficiencies through automation , lean manufacturing principles , design for manufacturing , enterprise quality , and packaging optimization , indirect procurement , and operational efficiencies related to enhanced international clustering and realignment of north america operations . during 2013 , mattel realized gross cost savings before severance charges and investments of approximately $ 60 million ( or approximately $ 39 million in net cost savings ) . of the gross cost savings realized in 2013 , approximately $ 51 million was reflected within gross profit , approximately $ 8 million within other selling and administrative expenses , and approximately $ 1 million within advertising and promotion expenses . income taxes mattel 's effective tax rate on income before income taxes in both 2013 and 2012 was 17.8 % . the 2013 income tax provision included net tax benefits of $ 32.2 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2012 was 17.8 % , as compared to 20.8 % in 2011. the 2012 income tax provision included net tax benefits of $ 16.0 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2011 was 20.8 % , and the 2011 income tax provision included net tax benefits of $ 6.8 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . story_separator_special_tag to stockholders through dividends and share repurchases . 39 over the long term , assuming cash flows from operating activities remain strong , mattel plans to use its free cash flows to invest in strategic acquisitions and to return funds to stockholders through cash dividends and share repurchases . mattel 's share repurchase program has no expiration date and repurchases will take place from time to time , depending on market conditions . the ability to successfully implement the capital deployment plan is directly dependent on mattel 's ability to generate strong cash flows from operating activities . there is no assurance that mattel will continue to generate strong cash flows from operating activities or achieve its targeted goals for investing activities . operating activities cash flows from operating activities were $ 698.4 million during 2013 , as compared to $ 1.28 billion during 2012 and $ 664.7 million during 2011. the decrease in cash flows from operating activities in 2013 from 2012 was primarily due to higher working capital usage , including payment of the litigation charge of approximately $ 138 million , partially offset by higher net income . the increase in cash flows from operating activities in 2012 from 2011 was primarily due to reductions in working capital usage . investing activities cash flows used for investing activities were $ 242.1 million during 2013 , as compared to $ 900.2 million during 2012 and $ 174.5 million during 2011. the decrease in cash flows used for investing activities in 2013 from 2012 was primarily due to the acquisition of hit entertainment in 2012 , partially offset by higher purchases of tools , dies , and molds and other property , plant , and equipment . the increase in cash flows used for investing activities in 2012 from 2011 was primarily due to the acquisition of hit entertainment in 2012 and higher purchases of other property , plant , and equipment . financing activities cash flows used for financing activities were $ 740.0 million during 2013 , as compared to $ 410.9 million during 2012 and $ 397.3 million during 2011. the increase

liquidity and capital resources mattel 's primary sources of liquidity are its cash and equivalents balances , access to short-term borrowing facilities , including its $ 1.60 billion domestic unsecured committed revolving credit facility ( “credit facility” ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements , which include maintaining consolidated debt-to-earnings before interest , taxes , depreciation , and amortization ( “ebitda” ) and interest coverage ratios , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 1.04 billion in cash and equivalents as of december 31 , 2013 , approximately $ 895 million is held by foreign subsidiaries . mattel may need to accrue and pay additional income taxes if some or all of the undistributed earnings of foreign subsidiaries were repatriated . mattel does not intend nor foresee a need to repatriate undistributed earnings of foreign subsidiaries . mattel has several liquidity options to fund its domestic operations and obligations , including investing and financing activities such as dividends , share repurchases , and debt service .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 mattel 's primary sources of liquidity are its cash and equivalents balances , access to short-term borrowing facilities , including its $ 1.60 billion domestic unsecured committed revolving credit facility ( “credit facility” ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements , which include maintaining consolidated debt-to-earnings before interest , taxes , depreciation , and amortization ( “ebitda” ) and interest coverage ratios , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 1.04 billion in cash and equivalents as of december 31 , 2013 , approximately $ 895 million is held by foreign subsidiaries . mattel may need to accrue and pay additional income taxes if some or all of the undistributed earnings of foreign subsidiaries were repatriated . mattel does not intend nor foresee a need to repatriate undistributed earnings of foreign subsidiaries . mattel has several liquidity options to fund its domestic operations and obligations , including investing and financing activities such as dividends , share repurchases , and debt service . ``` Suspicious Activity Report : more specifically , mattel plans to expand its innovation through ( i ) entrance into the active-play lifestyle category , ( ii ) the global roll-out of mattel 's latest franchise , ever after high , and ( iii ) new products , packaging , and 27 marketing campaigns for its existing key brands . mattel will focus on optimizing its marketing and promotional spend across its brands , customers , and regions to take advantage of its scale across its entire business . mattel also seeks to leverage the strength of its brands , countries , and customers , which include growing its girls portfolio , continuing to invest in emerging and developing markets , and improving execution in both its e-commerce and brick and mortar channels . results of operations 2013 compared to 2012 consolidated results net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . net income for 2013 was $ 903.9 million , or $ 2.58 per diluted share , as compared to net income of $ 776.5 million , or $ 2.22 per diluted share , in 2012. as compared to 2012 , net income for 2013 was positively impacted by lower other selling and administrative expenses due to a 2012 litigation charge of $ 137.8 million , arising out of the litigation between mattel and mga entertainment , inc. ( the “litigation charge” ) , and higher gross margins . in 2012 , the litigation charge reduced net income by $ 87.1 million , or $ 0.25 per share . the following table provides a summary of mattel 's consolidated results for 2013 and 2012 ( in millions , except percentage and basis point information ) : replace_table_token_6_th sales net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . 28 the following table provides a summary of mattel 's consolidated gross sales by brand for 2013 and 2012 : replace_table_token_7_th gross sales were $ 7.12 billion in 2013 , up $ 65.2 million or 1 % , as compared to $ 7.05 billion in 2012 , with no impact from changes in currency exchange rates . the increase in gross sales was due to higher sales of other girls products , partially offset by lower sales of core fisher-price products . of the 25 % increase in other girls gross sales , 20 % was due to higher sales of monster high products , and 5 % was due to the initial launch of the ever after high product line . the 9 % decrease in core fisher-price gross sales reflected product innovation not being strong enough to drive growth , along with lower effectiveness of in-store , commercial , and promotional activities . cost of sales cost of sales as a percentage of net sales was 46.4 % in 2013 , as compared to 46.9 % in 2012. cost of sales was flat at $ 3.01 billion in 2013 and 2012 , as compared to a 1 % increase in net sales . within cost of sales , product and other costs decreased by $ 16.8 million , or 1 % , from $ 2.44 billion in 2012 to $ 2.42 billion in 2013 ; royalty expenses increased $ 6.7 million , or 3 % , from $ 240.2 million in 2012 to $ 246.9 million in 2013 ; and freight and logistics expenses increased by $ 4.4 million , or 1 % , from $ 332.9 million in 2012 to $ 337.3 million in 2013. gross profit gross profit as a percentage of net sales increased to 53.6 % in 2013 from 53.1 % in 2012. the increase in gross profit as a percentage of net sales was primarily due to savings from operational excellence 3.0 programs , favorable product mix , and price increases offset by higher input costs , partially offset by unfavorable changes in foreign currency exchange rates . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers and 29 ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales increased to 11.6 % in 2013 from 11.2 % in 2012 , primarily as a result of lower than expected fourth quarter sales and higher non-media and generic advertising spending . other selling and administrative expenses other selling and administrative expenses were $ 1.56 billion in 2013 , or 24.1 % of net sales , as compared to $ 1.67 billion in 2012 , or 26.0 % of net sales . the decrease in other selling and administrative expenses was primarily due to the litigation charge of $ 137.8 million in 2012 and lower incentive compensation expense of approximately $ 43 million , partially offset by higher other employee-related expenses and investments in strategic initiatives of approximately $ 78 million and an asset impairment charge of approximately $ 14 million . non-operating items interest expense decreased by $ 10.3 million to $ 78.5 million in 2013 , as compared to $ 88.8 million in 2012 , primarily due to lower average interest rates related to long-term borrowings . story_separator_special_tag cost savings programs during 2011 , mattel initiated operational excellence 2.0 , which targeted cumulative cost savings of approximately $ 175 million by the end of 2012. mattel exceeded its operational excellence 2.0 goal by realizing approximately $ 187 million of cumulative gross cost savings throughout the program . the major initiatives within the operational excellence 2.0 program included : a reorganization which resulted in the north america division , additional procurement initiatives designed to fully leverage mattel 's global scale , sku efficiency , and packaging optimization . during 2011 , mattel realized gross cost savings before severance charges and investments of approximately $ 94 million ( or approximately $ 71 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 41 million of legal cost savings . of the gross cost savings realized in 2011 , approximately $ 67 million was reflected within other selling and administrative expenses , approximately $ 15 million within gross profit , and approximately $ 12 million within advertising and promotion expenses . during 2012 , mattel realized gross cost savings before severance charges and investments of approximately $ 93 million ( or approximately $ 77 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 40 million of legal cost savings . of the gross cost savings realized in 2012 , approximately $ 55 million was reflected within other selling and administrative expenses , approximately $ 27 million within gross profit , and approximately $ 11 million within advertising and promotion expenses . 37 beginning in 2013 , mattel initiated the next phase of its cost savings program , operational excellence 3.0 , which targets cumulative gross cost savings of approximately $ 175 million by the end of 2014. the cost savings program is designed to generate sustainable cost savings through the following primary initiatives : manufacturing efficiencies through automation , lean manufacturing principles , design for manufacturing , enterprise quality , and packaging optimization , indirect procurement , and operational efficiencies related to enhanced international clustering and realignment of north america operations . during 2013 , mattel realized gross cost savings before severance charges and investments of approximately $ 60 million ( or approximately $ 39 million in net cost savings ) . of the gross cost savings realized in 2013 , approximately $ 51 million was reflected within gross profit , approximately $ 8 million within other selling and administrative expenses , and approximately $ 1 million within advertising and promotion expenses . income taxes mattel 's effective tax rate on income before income taxes in both 2013 and 2012 was 17.8 % . the 2013 income tax provision included net tax benefits of $ 32.2 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2012 was 17.8 % , as compared to 20.8 % in 2011. the 2012 income tax provision included net tax benefits of $ 16.0 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2011 was 20.8 % , and the 2011 income tax provision included net tax benefits of $ 6.8 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . story_separator_special_tag to stockholders through dividends and share repurchases . 39 over the long term , assuming cash flows from operating activities remain strong , mattel plans to use its free cash flows to invest in strategic acquisitions and to return funds to stockholders through cash dividends and share repurchases . mattel 's share repurchase program has no expiration date and repurchases will take place from time to time , depending on market conditions . the ability to successfully implement the capital deployment plan is directly dependent on mattel 's ability to generate strong cash flows from operating activities . there is no assurance that mattel will continue to generate strong cash flows from operating activities or achieve its targeted goals for investing activities . operating activities cash flows from operating activities were $ 698.4 million during 2013 , as compared to $ 1.28 billion during 2012 and $ 664.7 million during 2011. the decrease in cash flows from operating activities in 2013 from 2012 was primarily due to higher working capital usage , including payment of the litigation charge of approximately $ 138 million , partially offset by higher net income . the increase in cash flows from operating activities in 2012 from 2011 was primarily due to reductions in working capital usage . investing activities cash flows used for investing activities were $ 242.1 million during 2013 , as compared to $ 900.2 million during 2012 and $ 174.5 million during 2011. the decrease in cash flows used for investing activities in 2013 from 2012 was primarily due to the acquisition of hit entertainment in 2012 , partially offset by higher purchases of tools , dies , and molds and other property , plant , and equipment . the increase in cash flows used for investing activities in 2012 from 2011 was primarily due to the acquisition of hit entertainment in 2012 and higher purchases of other property , plant , and equipment . financing activities cash flows used for financing activities were $ 740.0 million during 2013 , as compared to $ 410.9 million during 2012 and $ 397.3 million during 2011. the increase

in many cases , the structure will include us holding title to or a priority or controlling position in the equipment or other asset . although the final composition of our portfolio can not be determined at this stage , we expect to invest in equipment and other assets that are considered essential use or core to a business or operation in the agricultural , energy , environmental , medical , manufacturing , technology , and transportation industries . our investment manager may identify other assets or industries that meet our investment objectives . we expect to invest in equipment , other assets and project financings located primarily within the united states of america and the european union but may also make investments in other parts of the world . we are currently in the liquidation period . the offering period concluded on april 2 , 2016 , which is three years from the date we were declared effective by the sec . during the operating period , we will invest most of the net proceeds from our offering in business-essential , revenue-producing ( or cost-saving ) equipment , other physical assets with substantial economic lives and , in many cases , associated revenue streams and project financings . the operating period began on the date of our initial closing , which occurred on may 29 , 2013 and concluded on may 29 , 2017. the liquidation period , which began on may 30 , 2017 , is the period in which we will sell our assets in the ordinary course of business and will last two years , unless it is extended , at the sole discretion of the general partner . our general partner , our investment manager and their affiliates , including securities in its capacity as our selling agent and certain non-affiliates ( namely , selling dealers ) received fees and compensation from the offering of our units , including the following , with any and all compensation paid to our general partner solely in cash . we paid an underwriting fee of 3 % of the gross proceeds of this offering ( excluding proceeds , if any , we received from the sale of our units to our general partner or its affiliates ) to our selling agent or selling agents . our general partner receives an organizational and offering expense allowance of up to 2 % of our offering proceeds to reimburse it for expenses incurred in preparing us for registration or qualification under federal and state securities laws and subsequently offering and selling our units . the organizational and offering expense allowance will be paid out of the proceeds of this offering . the organizational and offering expense allowance will not exceed the actual fees and expenses incurred by our general partner and its affiliates . because organizational and offering expenses will be paid as and to the extent they are incurred , organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing . during our operating period and our liquidation period , our investment manager receives a management fee in an amount equal to the greater of ( i ) 2.5 % per annum of the aggregate offering proceeds , or ( ii ) $ 125,000 , payable monthly , until such time as an amount equal to at least 15 % of our limited partners ' capital contributions has been returned to them , after which the monthly management fee will equal 100 % of the management fee as initially calculated above , less 1 % for each additional 1 % of our limited partners ' capital contributions returned to them , such amounts to be measured on the last day of each month . our general partner will initially receive 1 % of all distributed distributable cash . our general partner has a promotional interest in us equal to 20 % of all distributed distributable cash after we have provided a return to our limited partners of their respective capital contributions plus an 8 % per annum , compounded annually , cumulative return on their capital contributions . 19 current business environment and outlook we believe that 2018 will continue to present attractive opportunities for equipment lease and asset finance investments . the federal reserve board increased its benchmark interest rate several times in 2017 , and is expected to further increase rates in 2018 making our financing more cost competitive with banks . while we expect interest rates to increase further during 2018 , increases in interest rates generally result in increased returns on asset based investments . as lending institutions , such as banks , raise the interest rates they charge borrowers , the financing provided by us will become more cost competitive , and our market for potential investments will broaden . although increase in interest rates will increase the cost of leverage , we do not expect a significant net effect on our gross margins because we do not plan on utilizing significant leverage in our portfolio . our single investor leases and loans should benefit from any increase in interest rates over the long term . the competitive environment is firming up with a few large participants exiting the market , but with a growing number of well capitalized new participants prepared to absorb market share . as the market settles , we believe there is more opportunity than there has been in years to acquire seasoned portfolios of equipment leases and loans . we also believe that there may be opportunity for consolidation in the next year or two . overall we think that businesses have a positive outlook for growth in 2018 and we anticipate capital asset and equipment acquisition will be an essential part of that growth . story_separator_special_tag we received cash contributions of $ 72,504,327 and applied $ 2,460,737 which would have otherwise been paid as sales commission to the purchase of 2,460.74 additional units . for the years ended december 31 , 2017 and 2016 , we paid or accrued an underwriting fee to securities totaling $ 0 and $ 1,949,907 , respectively . our revenue for the years ended december 31 , 2017 and 2016 is summarized as follows : replace_table_token_1_th for the year ended december 31 , 2017 , we earned $ 1,594,436 in rental income primarily from two operating leases of aircraft rotable parts equipment . we also recognized $ 5,224,118 in interest income , the majority of which was generated by the equipment notes and collateralized loans receivable . we recognized $ 2,159,570 in finance income from various finance leases . we also recognized income of $ 15,416,243 from our equipment investment through spv . we also incurred a provision for lease , note , and loan losses of $ 3,001,573 as a result of an impairment loss on a finance lease , equipment notes receivables and an equity method investment during the year ended december 31 , 2017. the increase in total revenue in 2017 as compared to 2016 is primarily a result of the income from the subsidiary sqn helo , llc ( “ sqn helo ” ) which was not included in the consolidated financial statements in 2016. the increase in finance and interest income in 2017 as compared to 2016 is a result of the increase in finance leases and equipment notes and collateralized loans receivable in 2017 as compared to 2016 . 23 for the year ended december 31 , 2016 , we earned $ 329,931 in rental income primarily from two operating leases of aircraft rotable parts equipment . we also recognized $ 4,448,049 in interest income , the majority of which was generated by the equipment notes and collateralized loans receivable . we recognized $ 1,112,846 in finance income from various finance leases . we also recognized an investment loss of $ 932,193 from our equity method investments . we also recognized income of $ 16,422,922 from our equipment investment through spv . our expenses for the years ended december 31 , 2017 and 2016 are summarized as follows : replace_table_token_2_th for the year ended december 31 , 2017 , we incurred $ 30,948,233 in total expenses . there was no increase in management fees paid to our investment manager in 2017 as compared to 2016. we pay our investment manager a management fee during the liquidation period equal to the greater of , ( i ) 2.5 % per annum of the aggregate offering proceeds , or ( ii ) $ 125,000 , payable monthly , until such time as an amount equal to at least 15 % of our limited partners ' capital contributions have been returned to them , after which the monthly management fee will equal 100 % of the management fee as initially calculated above , less 1 % for each additional 1 % of the partnership 's limited partners ' capital contributions returned to them , such amounts to be measured on the last day of each month . we recognized $ 4,861,808 and $ 2,622,678 in interest expense and depreciation and amortization expense , respectively . the increase in interest expense and depreciation and amortization expense in 2017 as compared to 2016 is primarily a result of the subsidiary sqn helo , which was not included in the consolidated financial statements in 2016. we also incurred $ 545,417 in professional fees , which is primarily due to consolidation of sqn helo . we also incurred expenses of $ 21,246,550 from our equipment investment through spv . for the year ended december 31 , 2016 , we incurred $ 23,968,127 in total expenses . there was no increase in management fees paid to our investment manager in 2016 as compared to 2015. we recognized $ 418,968 in depreciation and amortization expense . we also incurred $ 220,883 in professional fees , which is consistent with prior year . in conjunction with the marine and the various juliet transactions , we assumed approximately $ 17,104,000 and $ 26,100,000 , respectively in loans payable with various third parties which resulted in $ 3,208,312 in interest expense during the year ended december 31 , 2016. we also incurred expenses of $ 18,235,637 from our equipment investment through spv . 24 net loss as a result of the factors discussed above , we reported a net loss for the year ended december 31 , 2017 of $ 8,947,762 , prior to the allocation for non-controlling interest , as compared to a net loss of $ 3,807,749 for the year ended december 31 , 2016. the non-controlling interest represents the 67.5 % investment by sqn pac in the alpha transaction and the 10 % investment by a third party in the cont feeder transaction . for the year ended december 31 , 2017 , the non-controlling interest recognized net income of $ 1,811 due to its interest in alpha and a net loss of $ 583,031 due to its interest in cont feeder . liquidity and capital resources sources and uses of cash replace_table_token_3_th story_separator_special_tag respectively ; and accrued $ 29,565 and $ 57,256 , respectively , for distributions due to the general partner which resulted in a distributions payable to general partner of $ 114,681 and $ 85,116 at december 31 , 2017 and 2016 , respectively . commitments and contingencies and off-balance sheet transactions commitment and contingencies our income , losses and distributions are allocated 99 % to our limited partners and 1 % to our general partner until the limited partners have received total distributions equal to each limited partners ' capital contribution plus an 8 % , compounded annually , cumulative return on each limited partners ' capital contribution . after such time , income , losses and distributions will be

sources of liquidity we are currently in the liquidation period . the liquidation period is the time-frame in which we sell equipment under lease in the normal course of business . during this time period we anticipate that a substantial portion of our cash outflows will be from operating activities and the majority of our cash inflows are expected to be from operating and investing activities . we believe that the cash inflows will be sufficient to finance our liquidity requirements for the foreseeable future , including semi-annual distributions to our limited partners , general and administrative expenses , and fees paid to our investment manager . operating activities cash used in operating activities for the year ended december 31 , 2017 was $ 826,865 and was primarily driven by the following factors ; ( i ) a net loss for the year ended december 31 , 2017 of $ 8,947,762 , ( ii ) a decline in finance income of $ 1,046,724 , ( iii ) an increase in foreign currency transactions of $ 1,840,424 , and ( iv ) a decline in other assets of $ 1,677,048. offsetting these fluctuations was an increase in minimum rents receivable of $ 2,186,878 , an increase in provision for lease , note and loan losses of $ 3,001,573 , an increase in depreciation and amortization of $ 2,203,710 , and an increase of $ 940,440 in accounts payable and accrued expenses .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```sources of liquidity we are currently in the liquidation period . the liquidation period is the time-frame in which we sell equipment under lease in the normal course of business . during this time period we anticipate that a substantial portion of our cash outflows will be from operating activities and the majority of our cash inflows are expected to be from operating and investing activities . we believe that the cash inflows will be sufficient to finance our liquidity requirements for the foreseeable future , including semi-annual distributions to our limited partners , general and administrative expenses , and fees paid to our investment manager . operating activities cash used in operating activities for the year ended december 31 , 2017 was $ 826,865 and was primarily driven by the following factors ; ( i ) a net loss for the year ended december 31 , 2017 of $ 8,947,762 , ( ii ) a decline in finance income of $ 1,046,724 , ( iii ) an increase in foreign currency transactions of $ 1,840,424 , and ( iv ) a decline in other assets of $ 1,677,048. offsetting these fluctuations was an increase in minimum rents receivable of $ 2,186,878 , an increase in provision for lease , note and loan losses of $ 3,001,573 , an increase in depreciation and amortization of $ 2,203,710 , and an increase of $ 940,440 in accounts payable and accrued expenses . ``` Suspicious Activity Report : in many cases , the structure will include us holding title to or a priority or controlling position in the equipment or other asset . although the final composition of our portfolio can not be determined at this stage , we expect to invest in equipment and other assets that are considered essential use or core to a business or operation in the agricultural , energy , environmental , medical , manufacturing , technology , and transportation industries . our investment manager may identify other assets or industries that meet our investment objectives . we expect to invest in equipment , other assets and project financings located primarily within the united states of america and the european union but may also make investments in other parts of the world . we are currently in the liquidation period . the offering period concluded on april 2 , 2016 , which is three years from the date we were declared effective by the sec . during the operating period , we will invest most of the net proceeds from our offering in business-essential , revenue-producing ( or cost-saving ) equipment , other physical assets with substantial economic lives and , in many cases , associated revenue streams and project financings . the operating period began on the date of our initial closing , which occurred on may 29 , 2013 and concluded on may 29 , 2017. the liquidation period , which began on may 30 , 2017 , is the period in which we will sell our assets in the ordinary course of business and will last two years , unless it is extended , at the sole discretion of the general partner . our general partner , our investment manager and their affiliates , including securities in its capacity as our selling agent and certain non-affiliates ( namely , selling dealers ) received fees and compensation from the offering of our units , including the following , with any and all compensation paid to our general partner solely in cash . we paid an underwriting fee of 3 % of the gross proceeds of this offering ( excluding proceeds , if any , we received from the sale of our units to our general partner or its affiliates ) to our selling agent or selling agents . our general partner receives an organizational and offering expense allowance of up to 2 % of our offering proceeds to reimburse it for expenses incurred in preparing us for registration or qualification under federal and state securities laws and subsequently offering and selling our units . the organizational and offering expense allowance will be paid out of the proceeds of this offering . the organizational and offering expense allowance will not exceed the actual fees and expenses incurred by our general partner and its affiliates . because organizational and offering expenses will be paid as and to the extent they are incurred , organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing . during our operating period and our liquidation period , our investment manager receives a management fee in an amount equal to the greater of ( i ) 2.5 % per annum of the aggregate offering proceeds , or ( ii ) $ 125,000 , payable monthly , until such time as an amount equal to at least 15 % of our limited partners ' capital contributions has been returned to them , after which the monthly management fee will equal 100 % of the management fee as initially calculated above , less 1 % for each additional 1 % of our limited partners ' capital contributions returned to them , such amounts to be measured on the last day of each month . our general partner will initially receive 1 % of all distributed distributable cash . our general partner has a promotional interest in us equal to 20 % of all distributed distributable cash after we have provided a return to our limited partners of their respective capital contributions plus an 8 % per annum , compounded annually , cumulative return on their capital contributions . 19 current business environment and outlook we believe that 2018 will continue to present attractive opportunities for equipment lease and asset finance investments . the federal reserve board increased its benchmark interest rate several times in 2017 , and is expected to further increase rates in 2018 making our financing more cost competitive with banks . while we expect interest rates to increase further during 2018 , increases in interest rates generally result in increased returns on asset based investments . as lending institutions , such as banks , raise the interest rates they charge borrowers , the financing provided by us will become more cost competitive , and our market for potential investments will broaden . although increase in interest rates will increase the cost of leverage , we do not expect a significant net effect on our gross margins because we do not plan on utilizing significant leverage in our portfolio . our single investor leases and loans should benefit from any increase in interest rates over the long term . the competitive environment is firming up with a few large participants exiting the market , but with a growing number of well capitalized new participants prepared to absorb market share . as the market settles , we believe there is more opportunity than there has been in years to acquire seasoned portfolios of equipment leases and loans . we also believe that there may be opportunity for consolidation in the next year or two . overall we think that businesses have a positive outlook for growth in 2018 and we anticipate capital asset and equipment acquisition will be an essential part of that growth . story_separator_special_tag we received cash contributions of $ 72,504,327 and applied $ 2,460,737 which would have otherwise been paid as sales commission to the purchase of 2,460.74 additional units . for the years ended december 31 , 2017 and 2016 , we paid or accrued an underwriting fee to securities totaling $ 0 and $ 1,949,907 , respectively . our revenue for the years ended december 31 , 2017 and 2016 is summarized as follows : replace_table_token_1_th for the year ended december 31 , 2017 , we earned $ 1,594,436 in rental income primarily from two operating leases of aircraft rotable parts equipment . we also recognized $ 5,224,118 in interest income , the majority of which was generated by the equipment notes and collateralized loans receivable . we recognized $ 2,159,570 in finance income from various finance leases . we also recognized income of $ 15,416,243 from our equipment investment through spv . we also incurred a provision for lease , note , and loan losses of $ 3,001,573 as a result of an impairment loss on a finance lease , equipment notes receivables and an equity method investment during the year ended december 31 , 2017. the increase in total revenue in 2017 as compared to 2016 is primarily a result of the income from the subsidiary sqn helo , llc ( “ sqn helo ” ) which was not included in the consolidated financial statements in 2016. the increase in finance and interest income in 2017 as compared to 2016 is a result of the increase in finance leases and equipment notes and collateralized loans receivable in 2017 as compared to 2016 . 23 for the year ended december 31 , 2016 , we earned $ 329,931 in rental income primarily from two operating leases of aircraft rotable parts equipment . we also recognized $ 4,448,049 in interest income , the majority of which was generated by the equipment notes and collateralized loans receivable . we recognized $ 1,112,846 in finance income from various finance leases . we also recognized an investment loss of $ 932,193 from our equity method investments . we also recognized income of $ 16,422,922 from our equipment investment through spv . our expenses for the years ended december 31 , 2017 and 2016 are summarized as follows : replace_table_token_2_th for the year ended december 31 , 2017 , we incurred $ 30,948,233 in total expenses . there was no increase in management fees paid to our investment manager in 2017 as compared to 2016. we pay our investment manager a management fee during the liquidation period equal to the greater of , ( i ) 2.5 % per annum of the aggregate offering proceeds , or ( ii ) $ 125,000 , payable monthly , until such time as an amount equal to at least 15 % of our limited partners ' capital contributions have been returned to them , after which the monthly management fee will equal 100 % of the management fee as initially calculated above , less 1 % for each additional 1 % of the partnership 's limited partners ' capital contributions returned to them , such amounts to be measured on the last day of each month . we recognized $ 4,861,808 and $ 2,622,678 in interest expense and depreciation and amortization expense , respectively . the increase in interest expense and depreciation and amortization expense in 2017 as compared to 2016 is primarily a result of the subsidiary sqn helo , which was not included in the consolidated financial statements in 2016. we also incurred $ 545,417 in professional fees , which is primarily due to consolidation of sqn helo . we also incurred expenses of $ 21,246,550 from our equipment investment through spv . for the year ended december 31 , 2016 , we incurred $ 23,968,127 in total expenses . there was no increase in management fees paid to our investment manager in 2016 as compared to 2015. we recognized $ 418,968 in depreciation and amortization expense . we also incurred $ 220,883 in professional fees , which is consistent with prior year . in conjunction with the marine and the various juliet transactions , we assumed approximately $ 17,104,000 and $ 26,100,000 , respectively in loans payable with various third parties which resulted in $ 3,208,312 in interest expense during the year ended december 31 , 2016. we also incurred expenses of $ 18,235,637 from our equipment investment through spv . 24 net loss as a result of the factors discussed above , we reported a net loss for the year ended december 31 , 2017 of $ 8,947,762 , prior to the allocation for non-controlling interest , as compared to a net loss of $ 3,807,749 for the year ended december 31 , 2016. the non-controlling interest represents the 67.5 % investment by sqn pac in the alpha transaction and the 10 % investment by a third party in the cont feeder transaction . for the year ended december 31 , 2017 , the non-controlling interest recognized net income of $ 1,811 due to its interest in alpha and a net loss of $ 583,031 due to its interest in cont feeder . liquidity and capital resources sources and uses of cash replace_table_token_3_th story_separator_special_tag respectively ; and accrued $ 29,565 and $ 57,256 , respectively , for distributions due to the general partner which resulted in a distributions payable to general partner of $ 114,681 and $ 85,116 at december 31 , 2017 and 2016 , respectively . commitments and contingencies and off-balance sheet transactions commitment and contingencies our income , losses and distributions are allocated 99 % to our limited partners and 1 % to our general partner until the limited partners have received total distributions equal to each limited partners ' capital contribution plus an 8 % , compounded annually , cumulative return on each limited partners ' capital contribution . after such time , income , losses and distributions will be

new intellectual property titles include the preschool property rainbow rangers , which debuted in november 2018 on nickelodeon and which was renewed for a second season and preschool property llama llama , which debuted on netflix in january 2018 and was renewed by netflix for a second season . our library titles include the award-winning baby genius , adventure comedy thomas edison 's secret lab ® and warren buffett 's secret millionaires club , created with and starring iconic investor warren buffett , which is distributed across our genius brands network on comcast 's xfinity on demand , appletv , roku , amazon fire , youtube , amazon prime , cox , dish , sling and zumo , as well as connected tv . we are also developing an all-new animated series , stan lee 's superhero kindergarten with stan lee 's pow ! entertainment , oak productions and alibaba . arnold schwarzenegger lends his voice as the lead and is also an executive producer on the series . the show will be broadcast in the united states on amazon prime and the company 's wholly owned distribution outlet , kartoon channel ! . in july 2020 , the company entered into a binding term sheet with pow , inc. ( “ pow ! ” ) in which we agreed to form an entity with pow ! to exploit certain rights in intellectual property created by stan lee , as well as the name and likeness of stan lee . the entity is called “ stan lee universe , llc ” and pow ! and the company are finalizing the details of the venture . through this agreement we are assuming the worldwide rights , in perpetuity , to the name , physical likeness , physical signature , live-action and animated motion picture , television , online , digital , publishing , comic book , merchandising and licensing rights to stan lee and over 100 original stan lee creations , from which genius brands plans to develop and license approximately multiple properties each year . 18 in addition , we act as licensing agent for penguin young readers , a division of penguin random house llc which owns or controls the underlying rights to llama llama , leveraging our existing licensing infrastructure to expand this brand into new product categories , new retailers , and new territories . recent developments on january 28 , 2021 , we entered into letter agreements ( the “ letter agreements ” ) with certain existing institutional and accredited investors to exercise certain outstanding warrants ( the “ existing warrants ” ) to purchase up to an aggregate of 39,740,500 shares of the company 's common stock at their original exercise price of $ 1.55 per share ( the “ exercise ” ) . the existing warrants ( the “ registered existing warrants ” ) and the shares of common stock underlying the registered existing warrants were previously registered pursuant to a registration statement on form s-3 ( file no . 333-248623 ) . in consideration for the exercise of the existing warrants for cash , the exercising holders will receive new unregistered warrants to purchase up to an aggregate of 39,740,500 shares of common stock ( the “ new warrants ” ) at an exercise price of $ 2.37 per share and with an exercise period of five years from the initial issuance date . the special equities group , a division of bradley woods & co. ltd. , acted as warrant solicitation agent and will receive a cash fee of approximately $ 4.3 million . the gross proceeds to the company from the exercise were approximately $ 61.6 million . the company intends to use the net proceeds from the exercise for acquisitions of children 's and family intellectual property , and or companies in the children 's and family entertainment space . on february 1 , 2021 , the company through gbi acquisition llc , a new jersey limited liability company , and 2811210 ontario inc. , a company organized under the laws of the province of ontario , two wholly owned subsidiaries of the company , closed its previously announced acquisition pursuant to a purchase and sale agreement ( the “ purchase agreement ” ) with ( i ) harold aaron chizick , ( ii ) jennifer mara chizick , ( iii ) wishing thumbelina inc. ( “ wishing thumbelina ” ) , and ( iv ) harold aaron chizick and jennifer mara chizick , the trustees of the chizsix ( 2019 ) family trust for and on behalf of harold aaron chizick , jennifer mara chizick and jay mark sonshine , trustees of the chizsix ( 2019 ) family trust , ( the “ trustees ” ) ( each a “ seller ” and , collectively , “ sellers ” ) , pursuant to which the company acquired from the sellers all of the issued and outstanding equity interests of chizcomm ltd. , a corporation organized in canada ( “ chizcomm canada ” ) , and chizcomm usa corp. , a new jersey corporation ( “ chizcomm usa ” and , together with chizcomm canada , “ chizcomm ” ) ( the “ acquisition ” ) . total consideration paid by the company in the transaction at closing consisted of $ 8.5 million in cash and 1,966,292 shares ( the “ closing shares ” ) of the company 's common stock , $ 0.001 par value per share ( the “ common stock ” ) with a value of approximately $ 3.5 million , both as subject to certain purchase price adjustments . of the closing shares , 674,157 shares of common stock , with a value of approximately $ 1.2 million , were deposited into an escrow account to cover potential post-closing indemnification obligations of sellers under the purchase agreement . story_separator_special_tag direct operating costs include costs of our product sales , unamortizable post-production costs , film and television cost amortization expense , and participation expense related to agreements with various animation studios , post-production studios , writers , directors , musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services . direct operating costs for the year ended december 31 , 2020 decreased $ 2,444,539 , or 54 % , compared to the year ended december 31 , 2019. during the year ended december 31 , 2020 , we recorded film and television cost amortization expense of $ 979,598 and participation expense of $ 1,043,214 , compared to the year ended december 31 , 2019 , where we recorded expenses of $ 2,230,024 and $ 1,690,936 , respectively . the decreases in direct operating costs in the year ended december 31 , 2020 compared to the prior year reflect decreases in film amortization expense , participation expense and dubbing costs related to the delivery of llama llama to netflix and the delivery of rainbow rangers to nickelodeon in 2019. general and administrative expenses consist primarily of salaries , employee benefits , share-based compensation related to stock options , insurances , rent , depreciation , and amortization as well as other professional fees related to finance , accounting , legal and investor relations . general and administrative costs for year ended december 31 , 2020 increased $ 10,307,243 , or 145 % , compared to the same period in 2019. this increase is primarily due to an increase of $ 8,745,186 in stock based compensation , $ 648,493 in professional fees , and $ 680,779 in increased salaries and wages . fluctuations in other general and administrative expenses comprise the balance of the variance . interest expense for the year ended december 31 , 2020 increased $ 372,652 , compared to the same period in 2019. the increase in interest expense was due to the costs associated with the senior convertible notes exceeding the face amount of the notes . the excess was recorded as interest expense . story_separator_special_tag have any material commitments for capital expenditures . critical accounting policies and estimates our accounting policies are described in the notes to the consolidated financial statements . below is a summary of the critical accounting policies , among others , that management believes involve significant judgments and estimates used in the preparation of its consolidated financial statements . goodwill and intangible assets goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method . in accordance with fasb asc 350 intangibles goodwill and other , goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized , but subject to an impairment test annually or more frequently if indicators of impairment arise . we complete the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year . in testing goodwill , we initially use a qualitative approach and analyze relevant factors to determine if events and circumstances have affected the value of the goodwill . if the result of this qualitative analysis indicates that the value has been impaired , we then apply a quantitative approach to calculate the difference between the goodwill 's recorded value and its fair value . an impairment loss is recognized to the extent that the recorded value exceeds its fair value . goodwill , in addition to being tested for impairment annually , is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired . for the year ended december 31 , 2020 , the company performed a qualitative analysis of the carrying value of goodwill . based on the results of our analysis , we concluded that there is no impairment to the goodwill balance and no adjustment is necessary at this time . other intangible assets have been acquired , either individually or with a group of other assets , and were initially recognized and measured based on fair value . in accordance with fasb asc 350 intangible assets , the costs of new product development and significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset . film and television costs we capitalize production costs for episodic series produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment . we expense all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes . we capitalize production costs for films produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film ( s ) delivered and recognized as revenue . we evaluate our capitalized production costs annually and limit recorded amounts by our ability to recover such costs through expected future sales . additionally , for both episodic series and films , from time to time , we develop additional content , improved animation and bonus songs/features for our existing content . after the initial release of the film or episodic series , the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . 26 debt and attached

liquidity and capital resources working capital as of december 31 , 2020 , we had current assets of $ 108,566,089 , including cash and cash equivalents of $ 100,456,324 , and current liabilities of $ 7,178,906 , resulting in working capital of $ 101,387,183 , compared to a negative working capital of $ 3,650,136 as of december 31 , 2019. increases in working capital were primarily the result of the increase in cash of $ 100,151,203 resulting from capital raises and warrant exercises and an increase in prepaid expenses of $ 6,608,554 resulting from the $ 500,000 cash payment , issuance of shares and warrants for prepayment of production and marketing services . decreases in working capital were primarily the result of the repayment of the secured convertible notes in the amount of $ 2,373,952 , an increase in the warrant derivative liability of $ 1,197,068 , an increase in participations payable . comparison of cash flows for the years ended december 31 , 2020 and 2019 our total cash and cash equivalents were $ 100,456,324 and $ 305,121 at december 31 , 2020 and 2019 , respectively . 24 replace_table_token_3_th during the year ended december 31 , 2020 , our primary sources of cash from financing activities included the $ 98,583,549 in net sales of common stock , $ 5,874,329 from warrant exercises , $ 6,098,000 in net proceeds from senior secured convertible notes and $ 3,600,000 from the collection of the investor notes .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources working capital as of december 31 , 2020 , we had current assets of $ 108,566,089 , including cash and cash equivalents of $ 100,456,324 , and current liabilities of $ 7,178,906 , resulting in working capital of $ 101,387,183 , compared to a negative working capital of $ 3,650,136 as of december 31 , 2019. increases in working capital were primarily the result of the increase in cash of $ 100,151,203 resulting from capital raises and warrant exercises and an increase in prepaid expenses of $ 6,608,554 resulting from the $ 500,000 cash payment , issuance of shares and warrants for prepayment of production and marketing services . decreases in working capital were primarily the result of the repayment of the secured convertible notes in the amount of $ 2,373,952 , an increase in the warrant derivative liability of $ 1,197,068 , an increase in participations payable . comparison of cash flows for the years ended december 31 , 2020 and 2019 our total cash and cash equivalents were $ 100,456,324 and $ 305,121 at december 31 , 2020 and 2019 , respectively . 24 replace_table_token_3_th during the year ended december 31 , 2020 , our primary sources of cash from financing activities included the $ 98,583,549 in net sales of common stock , $ 5,874,329 from warrant exercises , $ 6,098,000 in net proceeds from senior secured convertible notes and $ 3,600,000 from the collection of the investor notes . ``` Suspicious Activity Report : new intellectual property titles include the preschool property rainbow rangers , which debuted in november 2018 on nickelodeon and which was renewed for a second season and preschool property llama llama , which debuted on netflix in january 2018 and was renewed by netflix for a second season . our library titles include the award-winning baby genius , adventure comedy thomas edison 's secret lab ® and warren buffett 's secret millionaires club , created with and starring iconic investor warren buffett , which is distributed across our genius brands network on comcast 's xfinity on demand , appletv , roku , amazon fire , youtube , amazon prime , cox , dish , sling and zumo , as well as connected tv . we are also developing an all-new animated series , stan lee 's superhero kindergarten with stan lee 's pow ! entertainment , oak productions and alibaba . arnold schwarzenegger lends his voice as the lead and is also an executive producer on the series . the show will be broadcast in the united states on amazon prime and the company 's wholly owned distribution outlet , kartoon channel ! . in july 2020 , the company entered into a binding term sheet with pow , inc. ( “ pow ! ” ) in which we agreed to form an entity with pow ! to exploit certain rights in intellectual property created by stan lee , as well as the name and likeness of stan lee . the entity is called “ stan lee universe , llc ” and pow ! and the company are finalizing the details of the venture . through this agreement we are assuming the worldwide rights , in perpetuity , to the name , physical likeness , physical signature , live-action and animated motion picture , television , online , digital , publishing , comic book , merchandising and licensing rights to stan lee and over 100 original stan lee creations , from which genius brands plans to develop and license approximately multiple properties each year . 18 in addition , we act as licensing agent for penguin young readers , a division of penguin random house llc which owns or controls the underlying rights to llama llama , leveraging our existing licensing infrastructure to expand this brand into new product categories , new retailers , and new territories . recent developments on january 28 , 2021 , we entered into letter agreements ( the “ letter agreements ” ) with certain existing institutional and accredited investors to exercise certain outstanding warrants ( the “ existing warrants ” ) to purchase up to an aggregate of 39,740,500 shares of the company 's common stock at their original exercise price of $ 1.55 per share ( the “ exercise ” ) . the existing warrants ( the “ registered existing warrants ” ) and the shares of common stock underlying the registered existing warrants were previously registered pursuant to a registration statement on form s-3 ( file no . 333-248623 ) . in consideration for the exercise of the existing warrants for cash , the exercising holders will receive new unregistered warrants to purchase up to an aggregate of 39,740,500 shares of common stock ( the “ new warrants ” ) at an exercise price of $ 2.37 per share and with an exercise period of five years from the initial issuance date . the special equities group , a division of bradley woods & co. ltd. , acted as warrant solicitation agent and will receive a cash fee of approximately $ 4.3 million . the gross proceeds to the company from the exercise were approximately $ 61.6 million . the company intends to use the net proceeds from the exercise for acquisitions of children 's and family intellectual property , and or companies in the children 's and family entertainment space . on february 1 , 2021 , the company through gbi acquisition llc , a new jersey limited liability company , and 2811210 ontario inc. , a company organized under the laws of the province of ontario , two wholly owned subsidiaries of the company , closed its previously announced acquisition pursuant to a purchase and sale agreement ( the “ purchase agreement ” ) with ( i ) harold aaron chizick , ( ii ) jennifer mara chizick , ( iii ) wishing thumbelina inc. ( “ wishing thumbelina ” ) , and ( iv ) harold aaron chizick and jennifer mara chizick , the trustees of the chizsix ( 2019 ) family trust for and on behalf of harold aaron chizick , jennifer mara chizick and jay mark sonshine , trustees of the chizsix ( 2019 ) family trust , ( the “ trustees ” ) ( each a “ seller ” and , collectively , “ sellers ” ) , pursuant to which the company acquired from the sellers all of the issued and outstanding equity interests of chizcomm ltd. , a corporation organized in canada ( “ chizcomm canada ” ) , and chizcomm usa corp. , a new jersey corporation ( “ chizcomm usa ” and , together with chizcomm canada , “ chizcomm ” ) ( the “ acquisition ” ) . total consideration paid by the company in the transaction at closing consisted of $ 8.5 million in cash and 1,966,292 shares ( the “ closing shares ” ) of the company 's common stock , $ 0.001 par value per share ( the “ common stock ” ) with a value of approximately $ 3.5 million , both as subject to certain purchase price adjustments . of the closing shares , 674,157 shares of common stock , with a value of approximately $ 1.2 million , were deposited into an escrow account to cover potential post-closing indemnification obligations of sellers under the purchase agreement . story_separator_special_tag direct operating costs include costs of our product sales , unamortizable post-production costs , film and television cost amortization expense , and participation expense related to agreements with various animation studios , post-production studios , writers , directors , musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services . direct operating costs for the year ended december 31 , 2020 decreased $ 2,444,539 , or 54 % , compared to the year ended december 31 , 2019. during the year ended december 31 , 2020 , we recorded film and television cost amortization expense of $ 979,598 and participation expense of $ 1,043,214 , compared to the year ended december 31 , 2019 , where we recorded expenses of $ 2,230,024 and $ 1,690,936 , respectively . the decreases in direct operating costs in the year ended december 31 , 2020 compared to the prior year reflect decreases in film amortization expense , participation expense and dubbing costs related to the delivery of llama llama to netflix and the delivery of rainbow rangers to nickelodeon in 2019. general and administrative expenses consist primarily of salaries , employee benefits , share-based compensation related to stock options , insurances , rent , depreciation , and amortization as well as other professional fees related to finance , accounting , legal and investor relations . general and administrative costs for year ended december 31 , 2020 increased $ 10,307,243 , or 145 % , compared to the same period in 2019. this increase is primarily due to an increase of $ 8,745,186 in stock based compensation , $ 648,493 in professional fees , and $ 680,779 in increased salaries and wages . fluctuations in other general and administrative expenses comprise the balance of the variance . interest expense for the year ended december 31 , 2020 increased $ 372,652 , compared to the same period in 2019. the increase in interest expense was due to the costs associated with the senior convertible notes exceeding the face amount of the notes . the excess was recorded as interest expense . story_separator_special_tag have any material commitments for capital expenditures . critical accounting policies and estimates our accounting policies are described in the notes to the consolidated financial statements . below is a summary of the critical accounting policies , among others , that management believes involve significant judgments and estimates used in the preparation of its consolidated financial statements . goodwill and intangible assets goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method . in accordance with fasb asc 350 intangibles goodwill and other , goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized , but subject to an impairment test annually or more frequently if indicators of impairment arise . we complete the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year . in testing goodwill , we initially use a qualitative approach and analyze relevant factors to determine if events and circumstances have affected the value of the goodwill . if the result of this qualitative analysis indicates that the value has been impaired , we then apply a quantitative approach to calculate the difference between the goodwill 's recorded value and its fair value . an impairment loss is recognized to the extent that the recorded value exceeds its fair value . goodwill , in addition to being tested for impairment annually , is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired . for the year ended december 31 , 2020 , the company performed a qualitative analysis of the carrying value of goodwill . based on the results of our analysis , we concluded that there is no impairment to the goodwill balance and no adjustment is necessary at this time . other intangible assets have been acquired , either individually or with a group of other assets , and were initially recognized and measured based on fair value . in accordance with fasb asc 350 intangible assets , the costs of new product development and significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset . film and television costs we capitalize production costs for episodic series produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment . we expense all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes . we capitalize production costs for films produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film ( s ) delivered and recognized as revenue . we evaluate our capitalized production costs annually and limit recorded amounts by our ability to recover such costs through expected future sales . additionally , for both episodic series and films , from time to time , we develop additional content , improved animation and bonus songs/features for our existing content . after the initial release of the film or episodic series , the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . 26 debt and attached

covid-19 pandemic impacts and response a novel strain of coronavirus disease ( “ covid-19 ” ) was officially declared a pandemic by the world health organization ( “ who ” ) in march 2020. in efforts to slow and control the spread of covid-19 , governments around the world issued stay at home orders , travel restrictions as well as recommendations or mandates to avoid large gatherings or to self-quarantine . many governments also instituted restrictions on certain businesses and their activities , particularly those that were deemed non-essential . these various measures led to a sudden and significant decline in economic activity within a number of countries worldwide . although the global economy has shown signs of recovery , current economic data indicates that full recovery has stalled in some major economies . as further discussed below , disruptions resulting from the ongoing covid-19 pandemic unfavorably impacted our results of operations in fiscal year 2020. while certain of our organizational units realized positive benefits to revenues from the pandemic , total consolidated revenues in 2020 were unfavorably impacted by an estimated net $ 600 million . our financial position has remained strong and we continue to generate operating cash flows that are sufficient to meet our short-term liquidity needs . we also further secured our financial flexibility during the economic downturn by increasing the commitments available under our revolving credit facility by $ 381 million and issuing $ 3.0 billion of equity securities . our fiscal year 2020 debt and equity transactions are further discussed in notes 3 and 16 to the consolidated financial statements contained in item 8. financial statements and supplementary data . we believe that given our debt ratings and our capital allocation strategy , we would have access to additional short-term and long-term capital should the need arise . we have not observed any impairments of our assets due to the covid-19 pandemic and its adverse impact on global economic activity in 2020. as noted above , due to government restrictions and a shift in healthcare priorities , there was a significant decline in medical procedures that resulted in weakened demand for our products in our fiscal year 2020. a decline in procedure volumes across acute and non-acute settings led to a decline in demand for general medical devices . we also saw a deferral in elective procedures and delays in instrument placements relating to our medication management solutions , including pyxis . there was also a decrease in routine diagnostic testing and specimen collections , which was offset by demand for covid-19 testing . additionally , there was a decrease in research activity due to laboratory closures , delays in clinical trial enrollment and reduced clinical testing . during the last half of our fiscal year 2020 , we noted moderate recovery in the demand for certain products , including those products that are driven by the volume of elective procedures . however , demand for our products has not yet fully recovered and due to the continued , significant uncertainty that exists relative to the duration and overall impact of the covid-19 pandemic , our future operating performance , particularly in the short-term , will be subject to volatility . the ultimate impact of the covid-19 pandemic on our business , results of operations , financial condition and cash flows is dependent on future developments , which are uncertain at this time , including : the preparedness and effectiveness of countries around the world in preventing or responding to the ongoing spread of covid-19 , or in countries where the spread has been controlled , any resurgence of the virus ; the degree to which covid-19 testing solutions continue to be made available and are utilized by governments , healthcare providers and institutions , retail pharmacies and the general public ; 24 the pace at which hospitals and clinical laboratories fully resume patient care that is not related to the covid-19 pandemic ; the timing of when research performed by research laboratories and institutions will resume to normal operations ; and the timing and strength of any global economic recovery and the degree of pressure that the weaker macroeconomic environment will put on future healthcare utilization and the global demand for our products . as part of our overall response to the covid-19 pandemic , we have deployed our capabilities , expertise and scale to address critical health needs related to covid-19 as follows : our covid-19 antigen detection test that can provide results in 15 minutes using a simple nasal swab and our portable bd veritor tm plus system was approved for emergency use authorization by the u.s. food and drug administration ( “ fda ” ) and received the ce marking for use in the european union . in addition to this immunoassay test , bd 's portfolio of molecular solutions for covid-19 testing includes three other tests that have been registered for use with our bd max tm molecular system . we have leveraged our category leading position as a manufacturer of needles and syringes to enter into partnerships with governments around the world to help prepare for a future covid-19 vaccination campaign . additionally , we have been adhering to guidance provided by the who , as well as by health officials in various countries affected by the covid-19 pandemic , to protect the health and safety of bd employees while ensuring continued availability of bd 's critical medical devices and technologies at this unprecedented time . we have worked closely with governmental officials to keep our manufacturing facilities ( and those of our suppliers ) open due to the essential nature of our products . due to our enactment of business continuity plans , we have not experienced any significant disruption to our operations and supply chain to date . we also enacted certain cost containment measures to mitigate the unfavorable impact of the covid-19 pandemic on our results of operations . story_separator_special_tag selling and administrative expense as a percentage of revenues in 2019 was relatively flat compared with 2018. lower research and development expense as a percentage of revenues in 2020 as compared with 2019 primarily reflected the prior-period impact of a write-down recorded by the surgery unit . this write-down drove higher research and development expense as a percentage of revenues in 2019 as compared with 2018. the interventional segment 's lower income in 2020 additionally reflected the expiration in 2019 of a royalty income stream acquired in the bard transaction . geographic revenues bd 's worldwide revenues by geography were as follows : replace_table_token_10_th u.s. revenues in 2020 were relatively flat compared with 2019 as the life sciences segment 's integrated diagnostic solutions unit 's sales related to covid-19 diagnostic testing largely offset the declines noted above for the medical segment 's medication management solutions and medication delivery solutions units , as well as for the interventional segment 's surgery and peripheral intervention units . u.s. revenues in 2019 reflected growth in all three segments . u.s. revenues in 2019 were favorably impacted by the inclusion of revenues associated with bard 's products in results for the first quarter of fiscal year 2019 , as noted above . revenue growth in 2019 was also attributable to sales in the medical segment 's medication management solutions unit as well as to sales in the interventional segment 's urology and critical care and surgery units . u.s. revenue growth in 2019 was unfavorably impacted by results in the medical 30 segment 's diabetes care unit , the life sciences segment 's diagnostic systems unit and the interventional segment 's peripheral intervention unit , as previously noted in the discussions above . international revenues in 2020 were favorably impacted by sales in the medical segment 's pharmaceutical systems and medication management solutions units as well as by sales in the life sciences segment 's integrated diagnostic solutions unit , as discussed further above . international revenues in 2020 were unfavorably impacted by revenue declines in china and europe for the medical segment 's medication delivery solutions unit , as previously discussed . international revenue growth in 2019 reflected growth in all three segments . international revenues in 2019 were favorably impacted by the inclusion of revenues associated with bard 's products in results for the first quarter of fiscal year 2019 , as noted above . fiscal year 2019 international revenue growth was also driven by sales in the medical segment 's medication delivery solutions and pharmaceutical systems units as well as by sales in the life sciences segment 's diagnostic systems and preanalytical systems units . emerging market revenues were $ 2.42 billion , $ 2.71 billion and $ 2.53 billion in 2020 , 2019 and 2018 , respectively . foreign currency translation unfavorably impacted emerging market revenues in 2020 and 2019 by an estimated $ 100 million and $ 155 million , respectively . revenues in emerging markets in 2020 were unfavorably impacted by a decline in healthcare utilization as a result of the covid-19 pandemic . as previously discussed above , revenues in our medication delivery solutions unit were also unfavorably impacted by a new volume-based procurement process which has been adopted by several of china 's provinces . to date , the impact of these procurement initiatives to our revenues in china has been limited to our medication delivery solutions unit . emerging market revenue growth in 2019 was favorably impacted by the inclusion of revenues associated with bard 's products in our results for the first quarter of fiscal year 2019 , as noted above . underlying growth in 2019 was particularly driven by sales in china and ema . specified items reflected in the financial results for 2020 , 2019 and 2018 were the following specified items : replace_table_token_11_th ( a ) represents integration , restructuring and transaction costs , recorded in acquisitions and other restructurings , which are further discussed below . ( b ) represents financing impacts associated with the bard acquisition , which were recorded in interest income and interest expense . ( c ) includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt . bd 's amortization expense is primarily recorded in cost of products sold . the amount in 2018 also included fair value step-up adjustments of $ 478 million relating to bard 's inventory on the acquisition date . ( d ) includes amounts recorded to other operating expense , net to record product liability reserves , including related legal defense costs , as further discussed below . the amount in 2020 also includes net charges , which were recorded to cost of products sold and other income , net , related to the estimates of probable future product remediation costs . additional items recorded to other operating expense , net in 31 2019 included the estimated cumulative costs of a product recall , as well as the pre-tax gain related to bd 's sale of its advanced bioprocessing business . ( e ) the amounts in 2020 , 2019 and 2018 included total charges of $ 98 million , $ 30 million and $ 139 million , respectively , recorded in cost of products sold and research and development expense to write down the carrying value of certain assets , as previously noted in the segment operating income discussions above . the amount in 2019 also included an unrealized gain of $ 13 million recorded within other income , net relating to an investment . the amount in 2018 also included a net income amount of $ 303 million recorded to other income , net related to bd 's sale of its non-controlling interest in vyaire medical . ( f ) represents costs required to develop processes and systems to comply with emerging regulations such as the european union medical device regulation ( `` eumdr ``

net cash flows from investing activities capital expenditures our investments in capital expenditures are focused on projects that enhance our cost structure and manufacturing capabilities , and support our strategy of geographic expansion with select investments in growing markets . capital expenditures of $ 810 million , $ 957 million and $ 895 million in 2020 , 2019 and 2018 , respectively , primarily related to manufacturing capacity expansions . details of spending by segment are contained in note 7 to the consolidated financial statements contained in item 8. financial statements and supplementary data . acquisitions cash outflows for acquisitions in 2020 primarily reflected our acquisition of straub medical ag in the third quarter of 2020. cash outflows for acquisitions in 2018 primarily related to our acquisition of bard . for further discussion regarding the bard acquisition , refer to note 10 to the consolidated financial statements contained in item 8. financial statements and supplementary data . divestitures cash inflows relating to divestitures in 2019 and 2018 were $ 477 million and $ 534 million , respectively . for further discussion , refer to note 11 to the consolidated financial statements contained in item 8. financial statements and supplementary data . net cash flows from financing activities net cash from financing activities in 2020 , 2019 and 2018 included the following significant cash flows : replace_table_token_20_th additional disclosures regarding the equity and debt-related financing activities detailed above are provided in notes 3 and 16 to the consolidated financial statements contained in item 8. financial statements and supplementary data . debt-related activities certain measures relating to our total debt were as follows : replace_table_token_21_th ( a ) represents shareholders ' equity , net non-current deferred income tax liabilities , and debt .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash flows from investing activities capital expenditures our investments in capital expenditures are focused on projects that enhance our cost structure and manufacturing capabilities , and support our strategy of geographic expansion with select investments in growing markets . capital expenditures of $ 810 million , $ 957 million and $ 895 million in 2020 , 2019 and 2018 , respectively , primarily related to manufacturing capacity expansions . details of spending by segment are contained in note 7 to the consolidated financial statements contained in item 8. financial statements and supplementary data . acquisitions cash outflows for acquisitions in 2020 primarily reflected our acquisition of straub medical ag in the third quarter of 2020. cash outflows for acquisitions in 2018 primarily related to our acquisition of bard . for further discussion regarding the bard acquisition , refer to note 10 to the consolidated financial statements contained in item 8. financial statements and supplementary data . divestitures cash inflows relating to divestitures in 2019 and 2018 were $ 477 million and $ 534 million , respectively . for further discussion , refer to note 11 to the consolidated financial statements contained in item 8. financial statements and supplementary data . net cash flows from financing activities net cash from financing activities in 2020 , 2019 and 2018 included the following significant cash flows : replace_table_token_20_th additional disclosures regarding the equity and debt-related financing activities detailed above are provided in notes 3 and 16 to the consolidated financial statements contained in item 8. financial statements and supplementary data . debt-related activities certain measures relating to our total debt were as follows : replace_table_token_21_th ( a ) represents shareholders ' equity , net non-current deferred income tax liabilities , and debt . ``` Suspicious Activity Report : covid-19 pandemic impacts and response a novel strain of coronavirus disease ( “ covid-19 ” ) was officially declared a pandemic by the world health organization ( “ who ” ) in march 2020. in efforts to slow and control the spread of covid-19 , governments around the world issued stay at home orders , travel restrictions as well as recommendations or mandates to avoid large gatherings or to self-quarantine . many governments also instituted restrictions on certain businesses and their activities , particularly those that were deemed non-essential . these various measures led to a sudden and significant decline in economic activity within a number of countries worldwide . although the global economy has shown signs of recovery , current economic data indicates that full recovery has stalled in some major economies . as further discussed below , disruptions resulting from the ongoing covid-19 pandemic unfavorably impacted our results of operations in fiscal year 2020. while certain of our organizational units realized positive benefits to revenues from the pandemic , total consolidated revenues in 2020 were unfavorably impacted by an estimated net $ 600 million . our financial position has remained strong and we continue to generate operating cash flows that are sufficient to meet our short-term liquidity needs . we also further secured our financial flexibility during the economic downturn by increasing the commitments available under our revolving credit facility by $ 381 million and issuing $ 3.0 billion of equity securities . our fiscal year 2020 debt and equity transactions are further discussed in notes 3 and 16 to the consolidated financial statements contained in item 8. financial statements and supplementary data . we believe that given our debt ratings and our capital allocation strategy , we would have access to additional short-term and long-term capital should the need arise . we have not observed any impairments of our assets due to the covid-19 pandemic and its adverse impact on global economic activity in 2020. as noted above , due to government restrictions and a shift in healthcare priorities , there was a significant decline in medical procedures that resulted in weakened demand for our products in our fiscal year 2020. a decline in procedure volumes across acute and non-acute settings led to a decline in demand for general medical devices . we also saw a deferral in elective procedures and delays in instrument placements relating to our medication management solutions , including pyxis . there was also a decrease in routine diagnostic testing and specimen collections , which was offset by demand for covid-19 testing . additionally , there was a decrease in research activity due to laboratory closures , delays in clinical trial enrollment and reduced clinical testing . during the last half of our fiscal year 2020 , we noted moderate recovery in the demand for certain products , including those products that are driven by the volume of elective procedures . however , demand for our products has not yet fully recovered and due to the continued , significant uncertainty that exists relative to the duration and overall impact of the covid-19 pandemic , our future operating performance , particularly in the short-term , will be subject to volatility . the ultimate impact of the covid-19 pandemic on our business , results of operations , financial condition and cash flows is dependent on future developments , which are uncertain at this time , including : the preparedness and effectiveness of countries around the world in preventing or responding to the ongoing spread of covid-19 , or in countries where the spread has been controlled , any resurgence of the virus ; the degree to which covid-19 testing solutions continue to be made available and are utilized by governments , healthcare providers and institutions , retail pharmacies and the general public ; 24 the pace at which hospitals and clinical laboratories fully resume patient care that is not related to the covid-19 pandemic ; the timing of when research performed by research laboratories and institutions will resume to normal operations ; and the timing and strength of any global economic recovery and the degree of pressure that the weaker macroeconomic environment will put on future healthcare utilization and the global demand for our products . as part of our overall response to the covid-19 pandemic , we have deployed our capabilities , expertise and scale to address critical health needs related to covid-19 as follows : our covid-19 antigen detection test that can provide results in 15 minutes using a simple nasal swab and our portable bd veritor tm plus system was approved for emergency use authorization by the u.s. food and drug administration ( “ fda ” ) and received the ce marking for use in the european union . in addition to this immunoassay test , bd 's portfolio of molecular solutions for covid-19 testing includes three other tests that have been registered for use with our bd max tm molecular system . we have leveraged our category leading position as a manufacturer of needles and syringes to enter into partnerships with governments around the world to help prepare for a future covid-19 vaccination campaign . additionally , we have been adhering to guidance provided by the who , as well as by health officials in various countries affected by the covid-19 pandemic , to protect the health and safety of bd employees while ensuring continued availability of bd 's critical medical devices and technologies at this unprecedented time . we have worked closely with governmental officials to keep our manufacturing facilities ( and those of our suppliers ) open due to the essential nature of our products . due to our enactment of business continuity plans , we have not experienced any significant disruption to our operations and supply chain to date . we also enacted certain cost containment measures to mitigate the unfavorable impact of the covid-19 pandemic on our results of operations . story_separator_special_tag selling and administrative expense as a percentage of revenues in 2019 was relatively flat compared with 2018. lower research and development expense as a percentage of revenues in 2020 as compared with 2019 primarily reflected the prior-period impact of a write-down recorded by the surgery unit . this write-down drove higher research and development expense as a percentage of revenues in 2019 as compared with 2018. the interventional segment 's lower income in 2020 additionally reflected the expiration in 2019 of a royalty income stream acquired in the bard transaction . geographic revenues bd 's worldwide revenues by geography were as follows : replace_table_token_10_th u.s. revenues in 2020 were relatively flat compared with 2019 as the life sciences segment 's integrated diagnostic solutions unit 's sales related to covid-19 diagnostic testing largely offset the declines noted above for the medical segment 's medication management solutions and medication delivery solutions units , as well as for the interventional segment 's surgery and peripheral intervention units . u.s. revenues in 2019 reflected growth in all three segments . u.s. revenues in 2019 were favorably impacted by the inclusion of revenues associated with bard 's products in results for the first quarter of fiscal year 2019 , as noted above . revenue growth in 2019 was also attributable to sales in the medical segment 's medication management solutions unit as well as to sales in the interventional segment 's urology and critical care and surgery units . u.s. revenue growth in 2019 was unfavorably impacted by results in the medical 30 segment 's diabetes care unit , the life sciences segment 's diagnostic systems unit and the interventional segment 's peripheral intervention unit , as previously noted in the discussions above . international revenues in 2020 were favorably impacted by sales in the medical segment 's pharmaceutical systems and medication management solutions units as well as by sales in the life sciences segment 's integrated diagnostic solutions unit , as discussed further above . international revenues in 2020 were unfavorably impacted by revenue declines in china and europe for the medical segment 's medication delivery solutions unit , as previously discussed . international revenue growth in 2019 reflected growth in all three segments . international revenues in 2019 were favorably impacted by the inclusion of revenues associated with bard 's products in results for the first quarter of fiscal year 2019 , as noted above . fiscal year 2019 international revenue growth was also driven by sales in the medical segment 's medication delivery solutions and pharmaceutical systems units as well as by sales in the life sciences segment 's diagnostic systems and preanalytical systems units . emerging market revenues were $ 2.42 billion , $ 2.71 billion and $ 2.53 billion in 2020 , 2019 and 2018 , respectively . foreign currency translation unfavorably impacted emerging market revenues in 2020 and 2019 by an estimated $ 100 million and $ 155 million , respectively . revenues in emerging markets in 2020 were unfavorably impacted by a decline in healthcare utilization as a result of the covid-19 pandemic . as previously discussed above , revenues in our medication delivery solutions unit were also unfavorably impacted by a new volume-based procurement process which has been adopted by several of china 's provinces . to date , the impact of these procurement initiatives to our revenues in china has been limited to our medication delivery solutions unit . emerging market revenue growth in 2019 was favorably impacted by the inclusion of revenues associated with bard 's products in our results for the first quarter of fiscal year 2019 , as noted above . underlying growth in 2019 was particularly driven by sales in china and ema . specified items reflected in the financial results for 2020 , 2019 and 2018 were the following specified items : replace_table_token_11_th ( a ) represents integration , restructuring and transaction costs , recorded in acquisitions and other restructurings , which are further discussed below . ( b ) represents financing impacts associated with the bard acquisition , which were recorded in interest income and interest expense . ( c ) includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt . bd 's amortization expense is primarily recorded in cost of products sold . the amount in 2018 also included fair value step-up adjustments of $ 478 million relating to bard 's inventory on the acquisition date . ( d ) includes amounts recorded to other operating expense , net to record product liability reserves , including related legal defense costs , as further discussed below . the amount in 2020 also includes net charges , which were recorded to cost of products sold and other income , net , related to the estimates of probable future product remediation costs . additional items recorded to other operating expense , net in 31 2019 included the estimated cumulative costs of a product recall , as well as the pre-tax gain related to bd 's sale of its advanced bioprocessing business . ( e ) the amounts in 2020 , 2019 and 2018 included total charges of $ 98 million , $ 30 million and $ 139 million , respectively , recorded in cost of products sold and research and development expense to write down the carrying value of certain assets , as previously noted in the segment operating income discussions above . the amount in 2019 also included an unrealized gain of $ 13 million recorded within other income , net relating to an investment . the amount in 2018 also included a net income amount of $ 303 million recorded to other income , net related to bd 's sale of its non-controlling interest in vyaire medical . ( f ) represents costs required to develop processes and systems to comply with emerging regulations such as the european union medical device regulation ( `` eumdr ``

this transaction closed on august 1 , 2016. we account for our investment in borgata by applying the equity method and report its results as discontinued operations for all periods presented in this annual report on form 10-k. our midwest & south segment includes our wholly owned subsidiaries valley forge casino resort for the period following its september 17 , 2018 acquisition , and ameristar casino hotel kansas city , ameristar casino resort spa st. charles , belterra casino resort and belterra park ( together , the `` pinnacle properties `` ) for the period following their october 15 , 2018 acquisition . see note 2 , acquisitions and divestitures , to our consolidated financial statements presented in part ii , item 8. most of our gaming entertainment properties also include hotel , dining , retail and other amenities . our main business emphasis is on slot revenues , which are highly dependent upon the number of visits and spending levels of customers at our properties . our properties have historically generated significant operating cash flow , with the majority of our revenue being cash-based . while we do provide casino credit , subject to certain gaming regulations and jurisdictions , most of our customers wager with cash and pay for non-gaming services with cash or by credit card . our industry is capital intensive and we rely heavily on the ability of our properties to generate operating cash flow in order to fund maintenance capital expenditures , fund acquisitions , provide excess cash for future development , repay debt financing and associated interest costs , repurchase our debt or equity securities , and pay income taxes and dividends . our primary areas of focus are : ( i ) ensuring our existing operations are managed as efficiently as possible and remain positioned for growth ; ( ii ) improving our capital structure and strengthening our balance sheet , including paying down debt , increasing cash flow , improving operations and diversifying our asset base ; and ( iii ) successfully pursuing our growth strategy , which is built on identifying development opportunities and acquiring assets that are a good strategic fit and provide an appropriate return to our shareholders . our strategy our overriding strategy is to increase shareholder value by pursuing strategic initiatives that improve and grow our business . strengthening our balance sheet we are committed to finding opportunities to strengthen our balance sheet through diversifying and increasing our cash flows . we intend to take a balanced approach to our cash flows , with a current emphasis on debt repayment followed by investing in our business and returning capital to shareholders . operating efficiently we are committed to operating more efficiently . as we experience revenue growth in both our gaming and non-gaming operations , the efficiencies of our business position us to flow a substantial portion of the revenue growth directly to the bottom line . evaluating acquisition opportunities our evaluations of potential investments and growth opportunities are strategic , deliberate , and disciplined . our goal is to identify and pursue opportunities that grow our business and deliver a solid return for shareholders . these investments can take the form of expanding and enhancing offerings and amenities at existing properties , development of new properties , or acquisitions . currently , the company is primarily focused on enhancements to its existing properties . maintaining our brand the ability of our employees to deliver great customer service helps distinguish our company and our brands from our competitors . our employees are an important reason that our customers continue to choose our properties over the competition across the country . in addition , we have established a nationwide branding initiative and loyalty program . our players use their `` b connected `` cards to earn and redeem points at nearly all of our properties . the `` b connected `` club , among other benefits , rewards players for their loyalty by entitling them to qualify for promotions and earn rewards toward gaming and nongaming activities . 31 our key performance indicators we use several key performance measures to evaluate the operations of our properties . these key performance measures include the following : gaming revenue measures : slot handle , which means the dollar amount wagered in slot machines , and table game drop , which means the total amount of cash deposited in table games drop boxes , plus the sum of markers issued at all table games , are measures of volume and or market share . slot win and table game hold , which mean the difference between customer wagers and customer winnings on slot machines and table games , respectively , represent the amount of wagers retained by us and recorded as gaming revenues . slot win percentage and table game hold percentage , which are not fully controllable by us , represent the relationship between slot handle to slot win and table game drop to table game hold , respectively . food & beverage revenue measures : average guest check , which means the average amount spent per customer visit and is a measure of volume and product offerings ; number of guests served ( `` food covers `` ) , which is an indicator of volume ; and the cost per guest served , which is a measure of operating margin . room revenue measures : hotel occupancy rate , which measures the utilization of our available rooms ; and average daily rate ( `` adr `` ) , which is a price measure . story_separator_special_tag % , is primarily attributable to an increase in the weighted average long-term debt balance of $ 205.9 million from 2017 to 2018. the increase in the weighted average long-term debt balance for the year ended december 31 , 2018 over the prior year period is due to the issuance in june 2018 of the $ 700.0 million aggregate principal amount of 6.000 % senior notes due august 2026 issued in anticipation of the acquisitions . in addition , the weighted average interest rate increased by 1.0 percentage point over the prior year period , which is driven by an increase in the underlying eurodollar rate . loss on early extinguishments and modifications of debt the components of the loss on early extinguishments and modifications of debt , are as follows : replace_table_token_9_th income taxes the effective tax rate on income from continuing operations during 2019 , 2018 and 2017 was 21.8 % , 26.0 % and 1.8 % , respectively . our effective tax rate for 2019 was favorably impacted by benefits related to equity compensation and tax credits and unfavorably impacted by non-deductible expenses , including non-deductible compensation and employee benefits . additionally , our 2019 effective tax rate was favorably impacted by the revaluation of our state tax deferred liabilities as a result of corporate restructuring . in 2018 , our tax provision was unfavorably impacted by state taxes and certain nondeductible expenses which were partially offset by certain tax credits . in 2017 , our tax provision was favorably impacted by the change to the federal statutory tax rate on our net deferred tax liability . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the `` tax act `` ) . the tax act makes changes to the u.s. tax code , including , but not limited to , ( 1 ) reducing the u.s. federal corporate tax rate from a top marginal rate of 35 % to a flat rate of 21 % ; ( 2 ) eliminating the corporate alternative minimum tax ( amt ) ; ( 3 ) creating a new limitation on deductible interest expense ; ( 4 ) changing bonus depreciation that will allow for full expensing of qualified property ; ( 5 ) changing the limitations on executive compensation ( 6 ) altering the rules with respect to net operating losses generated after december 31 , 2017. these changes have various effective dates . as a result of the reduction of the federal corporate income tax rate , we revalued our net deferred tax liability as of december 31 , 2017. based on this revaluation , we recorded a discrete tax benefit of $ 60.1 million . 37 income from discontinued operations , net of tax income from discontinued operations , net of tax , reflects the results of our equity method investment in borgata , which we sold in august 2016. the 2018 results include cash received for our share of miscellaneous recoveries realized by borgata of $ 0.3 million . the results for the year ended december 31 , 2017 include property tax recovery proceeds of $ 21.4 million , net of tax , related to the final settlement of borgata 's property tax disputes with atlantic city . liquidity and capital resources financial position we generally operate with minimal or negative levels of working capital in order to minimize borrowings and related interest costs . our cash and cash equivalents balances were $ 250.0 million and $ 249.4 million at december 31 , 2019 and 2018 , respectively . in addition , we held restricted cash balances of $ 20.5 million and $ 23.8 million at december 31 , 2019 and 2018 , respectively . our working capital deficit at december 31 , 2019 and 2018 was $ 157.4 million and $ 70.0 million , respectively . our bank credit facility generally provides all necessary funds for the day-to-day operations , interest and tax payments , as well as capital expenditures . on a daily basis , we evaluate our cash position and adjust the balance outstanding under our bank credit facility , as necessary , by either borrowing or paying down debt with excess cash . we also plan the timing and the amounts of our capital expenditures . we believe that the borrowing capacity under the bank credit facility , subject to restrictive covenants , and cash flows from operating activities will be sufficient to meet our liquidity and capital resource needs for the next twelve months , including our projected operating and maintenance capital expenditures . the source of funds available to us for repayment of debt or to fund development projects is derived primarily from cash flows from operations and availability under our bank credit facility , to the extent availability exists after we meet working capital needs , and subject to restrictive covenants . see `` indebtedness `` , below , for further detail regarding funds available through our bank credit facility . we could also seek to secure additional working capital , repay current debt maturities , or fund development projects , in whole or in part , through incremental bank financing and additional debt or equity offerings . if availability does not exist under our credit facility , or we are not otherwise able to draw funds on our credit facility , additional financing may not be available to us , and if available , may not be on terms favorable us . 38 cash flows summary replace_table_token_10_th cash flows from operating activities during 2019 , 2018 and 2017 , we generated net operating cash flow of $ 549.0 million , $ 434.5 million and $ 422.6 million , respectively . generally , operating cash flows increased $ 114.5 million in 2019 compared to 2018 due to the flow through effect of higher revenues , including the impact of the acquisitions , and the

cash flows from discontinued operations discontinued operations activities in 2018 and 2017 represent borgata , which we sold in august 2016. the net cash inflow of $ 0.5 million in 2018 represents cash received for our share of miscellaneous recoveries realized by borgata . the net cash inflow of $ 35.7 million in 2017 includes property tax recovery proceeds related to the final settlement of borgata 's property tax disputes with atlantic city . indebtedness the outstanding principal balances of long-term debt , before unamortized discounts and fees , and the changes in those balances , are as follows : replace_table_token_11_th the amount of current maturities includes certain non-extending balances scheduled to be repaid within the next twelve months under the bank credit facilities . boyd gaming corporation debt bank credit facility credit agreement the outstanding principal amounts under the credit facility are comprised of the following : replace_table_token_12_th with a total revolving credit commitment of $ 945.5 million available under the bank credit facility , the remaining contractual availability was $ 656.6 million after consideration of $ 235.0 million borrowed on the revolving credit facility , $ 41.3 million borrowed on the swing loan and $ 12.6 million allocated to support various letters of credit . on august 2 , 2018 , we entered into a joinder agreement ( the `` joinder agreement '' ) to amendment no . 2 and refinancing amendment ( the `` credit agreement '' ) , among the company , certain financial institutions and bank of america , n.a. , as administrative agent .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from discontinued operations discontinued operations activities in 2018 and 2017 represent borgata , which we sold in august 2016. the net cash inflow of $ 0.5 million in 2018 represents cash received for our share of miscellaneous recoveries realized by borgata . the net cash inflow of $ 35.7 million in 2017 includes property tax recovery proceeds related to the final settlement of borgata 's property tax disputes with atlantic city . indebtedness the outstanding principal balances of long-term debt , before unamortized discounts and fees , and the changes in those balances , are as follows : replace_table_token_11_th the amount of current maturities includes certain non-extending balances scheduled to be repaid within the next twelve months under the bank credit facilities . boyd gaming corporation debt bank credit facility credit agreement the outstanding principal amounts under the credit facility are comprised of the following : replace_table_token_12_th with a total revolving credit commitment of $ 945.5 million available under the bank credit facility , the remaining contractual availability was $ 656.6 million after consideration of $ 235.0 million borrowed on the revolving credit facility , $ 41.3 million borrowed on the swing loan and $ 12.6 million allocated to support various letters of credit . on august 2 , 2018 , we entered into a joinder agreement ( the `` joinder agreement '' ) to amendment no . 2 and refinancing amendment ( the `` credit agreement '' ) , among the company , certain financial institutions and bank of america , n.a. , as administrative agent . ``` Suspicious Activity Report : this transaction closed on august 1 , 2016. we account for our investment in borgata by applying the equity method and report its results as discontinued operations for all periods presented in this annual report on form 10-k. our midwest & south segment includes our wholly owned subsidiaries valley forge casino resort for the period following its september 17 , 2018 acquisition , and ameristar casino hotel kansas city , ameristar casino resort spa st. charles , belterra casino resort and belterra park ( together , the `` pinnacle properties `` ) for the period following their october 15 , 2018 acquisition . see note 2 , acquisitions and divestitures , to our consolidated financial statements presented in part ii , item 8. most of our gaming entertainment properties also include hotel , dining , retail and other amenities . our main business emphasis is on slot revenues , which are highly dependent upon the number of visits and spending levels of customers at our properties . our properties have historically generated significant operating cash flow , with the majority of our revenue being cash-based . while we do provide casino credit , subject to certain gaming regulations and jurisdictions , most of our customers wager with cash and pay for non-gaming services with cash or by credit card . our industry is capital intensive and we rely heavily on the ability of our properties to generate operating cash flow in order to fund maintenance capital expenditures , fund acquisitions , provide excess cash for future development , repay debt financing and associated interest costs , repurchase our debt or equity securities , and pay income taxes and dividends . our primary areas of focus are : ( i ) ensuring our existing operations are managed as efficiently as possible and remain positioned for growth ; ( ii ) improving our capital structure and strengthening our balance sheet , including paying down debt , increasing cash flow , improving operations and diversifying our asset base ; and ( iii ) successfully pursuing our growth strategy , which is built on identifying development opportunities and acquiring assets that are a good strategic fit and provide an appropriate return to our shareholders . our strategy our overriding strategy is to increase shareholder value by pursuing strategic initiatives that improve and grow our business . strengthening our balance sheet we are committed to finding opportunities to strengthen our balance sheet through diversifying and increasing our cash flows . we intend to take a balanced approach to our cash flows , with a current emphasis on debt repayment followed by investing in our business and returning capital to shareholders . operating efficiently we are committed to operating more efficiently . as we experience revenue growth in both our gaming and non-gaming operations , the efficiencies of our business position us to flow a substantial portion of the revenue growth directly to the bottom line . evaluating acquisition opportunities our evaluations of potential investments and growth opportunities are strategic , deliberate , and disciplined . our goal is to identify and pursue opportunities that grow our business and deliver a solid return for shareholders . these investments can take the form of expanding and enhancing offerings and amenities at existing properties , development of new properties , or acquisitions . currently , the company is primarily focused on enhancements to its existing properties . maintaining our brand the ability of our employees to deliver great customer service helps distinguish our company and our brands from our competitors . our employees are an important reason that our customers continue to choose our properties over the competition across the country . in addition , we have established a nationwide branding initiative and loyalty program . our players use their `` b connected `` cards to earn and redeem points at nearly all of our properties . the `` b connected `` club , among other benefits , rewards players for their loyalty by entitling them to qualify for promotions and earn rewards toward gaming and nongaming activities . 31 our key performance indicators we use several key performance measures to evaluate the operations of our properties . these key performance measures include the following : gaming revenue measures : slot handle , which means the dollar amount wagered in slot machines , and table game drop , which means the total amount of cash deposited in table games drop boxes , plus the sum of markers issued at all table games , are measures of volume and or market share . slot win and table game hold , which mean the difference between customer wagers and customer winnings on slot machines and table games , respectively , represent the amount of wagers retained by us and recorded as gaming revenues . slot win percentage and table game hold percentage , which are not fully controllable by us , represent the relationship between slot handle to slot win and table game drop to table game hold , respectively . food & beverage revenue measures : average guest check , which means the average amount spent per customer visit and is a measure of volume and product offerings ; number of guests served ( `` food covers `` ) , which is an indicator of volume ; and the cost per guest served , which is a measure of operating margin . room revenue measures : hotel occupancy rate , which measures the utilization of our available rooms ; and average daily rate ( `` adr `` ) , which is a price measure . story_separator_special_tag % , is primarily attributable to an increase in the weighted average long-term debt balance of $ 205.9 million from 2017 to 2018. the increase in the weighted average long-term debt balance for the year ended december 31 , 2018 over the prior year period is due to the issuance in june 2018 of the $ 700.0 million aggregate principal amount of 6.000 % senior notes due august 2026 issued in anticipation of the acquisitions . in addition , the weighted average interest rate increased by 1.0 percentage point over the prior year period , which is driven by an increase in the underlying eurodollar rate . loss on early extinguishments and modifications of debt the components of the loss on early extinguishments and modifications of debt , are as follows : replace_table_token_9_th income taxes the effective tax rate on income from continuing operations during 2019 , 2018 and 2017 was 21.8 % , 26.0 % and 1.8 % , respectively . our effective tax rate for 2019 was favorably impacted by benefits related to equity compensation and tax credits and unfavorably impacted by non-deductible expenses , including non-deductible compensation and employee benefits . additionally , our 2019 effective tax rate was favorably impacted by the revaluation of our state tax deferred liabilities as a result of corporate restructuring . in 2018 , our tax provision was unfavorably impacted by state taxes and certain nondeductible expenses which were partially offset by certain tax credits . in 2017 , our tax provision was favorably impacted by the change to the federal statutory tax rate on our net deferred tax liability . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the `` tax act `` ) . the tax act makes changes to the u.s. tax code , including , but not limited to , ( 1 ) reducing the u.s. federal corporate tax rate from a top marginal rate of 35 % to a flat rate of 21 % ; ( 2 ) eliminating the corporate alternative minimum tax ( amt ) ; ( 3 ) creating a new limitation on deductible interest expense ; ( 4 ) changing bonus depreciation that will allow for full expensing of qualified property ; ( 5 ) changing the limitations on executive compensation ( 6 ) altering the rules with respect to net operating losses generated after december 31 , 2017. these changes have various effective dates . as a result of the reduction of the federal corporate income tax rate , we revalued our net deferred tax liability as of december 31 , 2017. based on this revaluation , we recorded a discrete tax benefit of $ 60.1 million . 37 income from discontinued operations , net of tax income from discontinued operations , net of tax , reflects the results of our equity method investment in borgata , which we sold in august 2016. the 2018 results include cash received for our share of miscellaneous recoveries realized by borgata of $ 0.3 million . the results for the year ended december 31 , 2017 include property tax recovery proceeds of $ 21.4 million , net of tax , related to the final settlement of borgata 's property tax disputes with atlantic city . liquidity and capital resources financial position we generally operate with minimal or negative levels of working capital in order to minimize borrowings and related interest costs . our cash and cash equivalents balances were $ 250.0 million and $ 249.4 million at december 31 , 2019 and 2018 , respectively . in addition , we held restricted cash balances of $ 20.5 million and $ 23.8 million at december 31 , 2019 and 2018 , respectively . our working capital deficit at december 31 , 2019 and 2018 was $ 157.4 million and $ 70.0 million , respectively . our bank credit facility generally provides all necessary funds for the day-to-day operations , interest and tax payments , as well as capital expenditures . on a daily basis , we evaluate our cash position and adjust the balance outstanding under our bank credit facility , as necessary , by either borrowing or paying down debt with excess cash . we also plan the timing and the amounts of our capital expenditures . we believe that the borrowing capacity under the bank credit facility , subject to restrictive covenants , and cash flows from operating activities will be sufficient to meet our liquidity and capital resource needs for the next twelve months , including our projected operating and maintenance capital expenditures . the source of funds available to us for repayment of debt or to fund development projects is derived primarily from cash flows from operations and availability under our bank credit facility , to the extent availability exists after we meet working capital needs , and subject to restrictive covenants . see `` indebtedness `` , below , for further detail regarding funds available through our bank credit facility . we could also seek to secure additional working capital , repay current debt maturities , or fund development projects , in whole or in part , through incremental bank financing and additional debt or equity offerings . if availability does not exist under our credit facility , or we are not otherwise able to draw funds on our credit facility , additional financing may not be available to us , and if available , may not be on terms favorable us . 38 cash flows summary replace_table_token_10_th cash flows from operating activities during 2019 , 2018 and 2017 , we generated net operating cash flow of $ 549.0 million , $ 434.5 million and $ 422.6 million , respectively . generally , operating cash flows increased $ 114.5 million in 2019 compared to 2018 due to the flow through effect of higher revenues , including the impact of the acquisitions , and the

the primary endpoint of the study will be based on the fix activity level achieved following the administration of etranacogene dezaparvovec , and the secondary endpoints will measure annualized fix replacement therapy usage , annualized bleed rates and safety . patients enrolled in the hope-b trial will be tested for the presence of pre-existing neutralizing antibodies to aav5 but will not be excluded from the trial based on their titers . in january 2019 , we dosed the first patient in our phase iii hope-b hemophilia b pivotal trial and in september 2019 , we completed the enrollment of approximately 60 patients in the lead-in phase of the trial . in august 2018 , we initiated a phase iib dose-confirmation study of etranacogene dezaparvovec . the phase iib study is an open-label , single-dose , single-arm , multi-center trial being conducted in the united states . the objective of the study was to evaluate the safety and tolerability of etranacogene dezaparvovec and confirm the dose based on fix activity at six weeks after administration . three patients with severe hemophilia were enrolled in this study and received a single intravenous infusion of 2x10 13 gc/kg . in february , may , july and december 2019 , we presented updated data from the phase iib dose-confirmation study of etranacogene dezaparvovec . data from the phase iib study of etranacogene dezaparvovec show that all three patients experienced increasing and sustained fix levels after a one-time administration of etranacogene dezaparvovec , with two of the three patients maintaining fix activity in the normal range . mean fix activity was 41 % of normal at 52 weeks of follow-up , exceeding threshold fix levels generally considered sufficient to significantly reduce the risk of bleeding events . the first patient achieved fix activity of 50 % of normal . fix activity in the second patient was 31 % of normal and in the third patient was 41 % of normal . the second and third patients previously screen-failed and were excluded from another gene therapy study due to pre-existing neutralizing antibodies to a different aav vector . based on the data obtained through october 24 , 2019 , no patient experienced a material loss of fix activity , reported any bleeding events or required any infusions of fix replacement therapy for bleeds . one patient underwent hip surgery due to a pre-existing condition and was treated perioperatively with short-acting factor replacement . this was reported by the investigator as a serious adverse event unrelated to etranacogene dezaparvovec . amt-060 in december 2019 , we also presented four-year follow-up data related to our first-generation hemophilia b program . amt-060 , which incorporated a wild-type fix gene . all 10 patients enrolled in the phase i/ii study continue to show long-term meaningful clinical impact , including sustained increases in fix activity and improvements in their disease state as measured by reduced usage of fix replacement therapy and decreased bleeding frequency . at up to four years of follow-up , amt-060 continues to be well-tolerated , with no new serious adverse events and no development of inhibitors since the last reported data . all five patients in the high dose cohort of 2x10 13 gc/kg continue to be free of routine fix replacement therapy at up to three and a half years after treatment . based on the last six months of data collected during the fourth year of follow-up , the mean annualized bleeding rate was zero compared to an average of four bleeds during the year prior to treatment , representing a 100 % reduction . steady state mean yearly fix activity at three and a half years was 7.5 % compared with 7.1 % in the first year , 8.4 % in the second and 7.9 % in the third year . 64 ​ huntington 's disease program ( amt-130 ) amt-130 is our novel gene therapy candidate for the treatment of huntington 's disease . amt-130 utilizes our miqure tm proprietary , gene-silencing platform and incorporates an aav vector carrying a mirna specifically designed to silence the huntingtin gene and the potentially highly toxic exon 1 protein fragment . amt-130 has received orphan drug and fast track designations from the fda and orphan medicinal product designation from the ema . in january 2019 , our ind application for amt-130 was cleared by the fda , thereby enabling us to initiate our planned phase i/ii clinical study . the phase i/ii protocol is a randomized , imitation surgery-controlled , double-blinded study conducted at three surgical sites , and multiple referring , non-surgical sites in the u.s. the primary objective of the study is to evaluate the safety , tolerability and efficacy of amt-130 at two doses . in the fourth quarter of 2019 , we initiated patient screening . additionally , cgmp clinical material has been manufactured at our lexington facility and has been released for shipment . in january 2019 , the u.s. patent and trademark office issued u.s. patent 10,174,321 and in may 2019 the european patent office issued ep 3237618 , both with granted claims that cover the rna constructs specifically designed to target exon1 and the embedding of these huntington 's disease rna sequences into the mir451 scaffold , which we exclusively license from cshl . the claims also cover certain expression cassettes comprising the rna constructs and the use of gene therapy vectors including aav vectors encompassing the described expression cassettes . in february 2019 , we presented new preclinical data at the 14th annual chdi huntington 's disease therapeutics conference that illustrated the therapeutic potential of amt-130 to restore the function of damaged brain cells in huntington 's disease and provide a sustained reduction of mutant huntingtin protein . story_separator_special_tag historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . ​ adoption of asc 842 leases on january 1 , 2019 ​ on january 1 , 2019 , we adopted asc 842 , “ leases ( topic 842 ) ” . we adopted the standard using the modified retrospective approach with an effective date as of the beginning of the fiscal year , january 1 , 2019 , to operating leases that existed on that date . prior year comparative financial information was not recast under the new standard and continues to be presented under asc 840. we elected to utilize the package of practical expedients available for expired or existing contracts which allowed us to carryforward historical assessments of ( 1 ) whether contracts are or contain leases , ( 2 ) lease classification , and ( 3 ) initial direct costs . we performed an assessment and identified the lease facilities as material leases to be accounted for under asc 842 as of january 1 , 2019. the impact of implementing asc 842 is summarized below : ​ - recognized a $ 19.0 million operating right-of-use asset and a $ 28.1 million operating lease liability in relation to the facilities leased at the amsterdam and lexington sites in the consolidated balance sheet as of january 1 , 2019 ; - presented deferred rent of $ 9.1 million as of december 31 , 2018 , as a reduction of the right-of-use asset as from january 1 , 2019 onwards in the consolidated balance sheet and as a change within operating cash flows within accrued expense , other liabilities and operating leases ; we measured the lease liability at the present value of the future lease payments as of january 1 , 2019. we used an incremental borrowing rate to discount the lease payments . we derived the discount rate , adjusted for differences such as in the term and payment patterns , from our hercules loan which was refinanced immediately prior to the january 1 , 2019 adoption date in december 2018. we valued the right-of-use asset at the amount of the lease liability reduced by the remaining december 31 , 2018 balance of lease incentives received . we subsequently measure the lease liability at the present value of the future lease payments as of the reporting date with a corresponding adjustment to the right-to-use asset . absent a lease modification we will continue to utilize the january 1 , 2019 , incremental borrowing rate . we will continue to recognize lease cost on a straight-line basis and will continue to present these costs as operating expenses within our consolidated statements of operations and comprehensive loss . we will continue to present lease payments and landlord incentive payments within cash flows from operations within our consolidated statements of cash flows . 69 ​ ​ adoption of asc 606 revenue recognition on january 1 , 2018 ​ on january 1 , 2018 we adopted new revenue recognition policies in accordance with asc 606. the new revenue recognition policies replace the existing policies in accordance with asc 605. we elected to implement asc 606 by applying it to active collaboration arrangements as of january 1 , 2018 and to record a cumulative adjustment of revenue previously recognized to our accumulated loss as of december 31 , 2017. the impact of implementing asc 606 is summarized below : - recognized $ 7.5 million of license revenue during the twelve months ended december 31 , 2018 , related to the collaboration with bms compared to $ 4.2 million that would have been recognized in accordance with the previous revenue recognition policies ; - continued to present revenue recognized during the twelve months ended december 31 , 2017 , in accordance with the previous revenue recognition policies ; - decreased the accumulated loss by $ 24.9 million as of january 1 , 2018 and decreased deferred revenue as of the same date by $ 24.9 million . in accordance with the previous revenue recognition policies we had concluded that the bms collaboration agreement consisted of three performance obligations , ( i ) technology ( license and target selections ) , know-how and manufacturing in the field of gene therapy and development and active contribution to the development through the joint steering committee participations , ( ii ) provision of employees , goods and services for research , and ( iii ) clinical and commercial manufacturing . we determined that these three performance obligations are substantially identical with the performance obligations in accordance with our new revenue recognition policies : ( i ) providing access to our technology and know-how in the field of gene therapy as well as actively contributing to the target selection , the collaboration as a whole , the development during the target selection , the pre-clinical and the clinical phase through participating in joint steering committee and other governing bodies ( “ license revenue ” ) ; ( ii ) providing pre-clinical research activities ( “ collaboration revenue ” ) ; and ( iii ) providing clinical and commercial manufacturing services for products ( “ manufacturing revenue ” ) . license revenue we generate license revenue from a $ 60.1 million upfront payment recorded on may 21 , 2015 , as well as $ 15.0 million received in relation to the designation of the second , third and fourth collaboration target in august 2015. we are also entitled to an aggregate $ 16.5 million in target designation payments upon the selection of the fifth to tenth collaboration target . we will also be eligible to receive research , development and regulatory milestone payments of up to $ 254.0 million for a lead candidate target ( which has been amt-126 ) and up to $ 217.0 million for each of the other selected targets , if milestones are achieved . we will include the variable consideration related to the

net cash used in operating activities ​ net cash used in operating activities was $ 98.7 million for the annual period ended december 31 , 2019 , and consisted of a net loss of $ 124.2 million adjusted for non-cash items , including depreciation and amortization expense of $ 6.7 million , share-based compensation expense of $ 17.5 million , fair value loss of derivative financial instruments of $ 2.5 million , unrealized foreign exchange loss of $ 0.9 million , and a decrease in unamortized deferred revenue of $ 5.0 million . net cash used in operating activities also included changes in operating assets and liabilities of $ 2.9 million . these changes primarily related to a net increase in accounts receivable and accrued income , prepaid expenses and other current assets of $ 4.8 million and a net increase in accounts payable , accrued expenses , other liabilities and operating leases of $ 7.7 million primarily related to our etranacogene dezaparvovec and amt-130 clinical trials . ​ net cash used in operating activities was $ 76.0 million for the annual period ended december 31 , 2018 , and consisted of a net loss of $ 83.3 million adjusted for non-cash items , including depreciation and amortization expense of $ 12.4 million , share-based compensation expense of $ 10.7 million , fair value gain of derivative financial instruments and contingent consideration of $ 4.1 million , unrealized foreign exchange gain of $ 5.5 million , deferred tax of $ 0.2 million , a decrease in lease incentives of$ 0.3 million , and a decrease in unamortized deferred revenue of $ 8.5 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. ```net cash used in operating activities ​ net cash used in operating activities was $ 98.7 million for the annual period ended december 31 , 2019 , and consisted of a net loss of $ 124.2 million adjusted for non-cash items , including depreciation and amortization expense of $ 6.7 million , share-based compensation expense of $ 17.5 million , fair value loss of derivative financial instruments of $ 2.5 million , unrealized foreign exchange loss of $ 0.9 million , and a decrease in unamortized deferred revenue of $ 5.0 million . net cash used in operating activities also included changes in operating assets and liabilities of $ 2.9 million . these changes primarily related to a net increase in accounts receivable and accrued income , prepaid expenses and other current assets of $ 4.8 million and a net increase in accounts payable , accrued expenses , other liabilities and operating leases of $ 7.7 million primarily related to our etranacogene dezaparvovec and amt-130 clinical trials . ​ net cash used in operating activities was $ 76.0 million for the annual period ended december 31 , 2018 , and consisted of a net loss of $ 83.3 million adjusted for non-cash items , including depreciation and amortization expense of $ 12.4 million , share-based compensation expense of $ 10.7 million , fair value gain of derivative financial instruments and contingent consideration of $ 4.1 million , unrealized foreign exchange gain of $ 5.5 million , deferred tax of $ 0.2 million , a decrease in lease incentives of$ 0.3 million , and a decrease in unamortized deferred revenue of $ 8.5 million . ``` Suspicious Activity Report : the primary endpoint of the study will be based on the fix activity level achieved following the administration of etranacogene dezaparvovec , and the secondary endpoints will measure annualized fix replacement therapy usage , annualized bleed rates and safety . patients enrolled in the hope-b trial will be tested for the presence of pre-existing neutralizing antibodies to aav5 but will not be excluded from the trial based on their titers . in january 2019 , we dosed the first patient in our phase iii hope-b hemophilia b pivotal trial and in september 2019 , we completed the enrollment of approximately 60 patients in the lead-in phase of the trial . in august 2018 , we initiated a phase iib dose-confirmation study of etranacogene dezaparvovec . the phase iib study is an open-label , single-dose , single-arm , multi-center trial being conducted in the united states . the objective of the study was to evaluate the safety and tolerability of etranacogene dezaparvovec and confirm the dose based on fix activity at six weeks after administration . three patients with severe hemophilia were enrolled in this study and received a single intravenous infusion of 2x10 13 gc/kg . in february , may , july and december 2019 , we presented updated data from the phase iib dose-confirmation study of etranacogene dezaparvovec . data from the phase iib study of etranacogene dezaparvovec show that all three patients experienced increasing and sustained fix levels after a one-time administration of etranacogene dezaparvovec , with two of the three patients maintaining fix activity in the normal range . mean fix activity was 41 % of normal at 52 weeks of follow-up , exceeding threshold fix levels generally considered sufficient to significantly reduce the risk of bleeding events . the first patient achieved fix activity of 50 % of normal . fix activity in the second patient was 31 % of normal and in the third patient was 41 % of normal . the second and third patients previously screen-failed and were excluded from another gene therapy study due to pre-existing neutralizing antibodies to a different aav vector . based on the data obtained through october 24 , 2019 , no patient experienced a material loss of fix activity , reported any bleeding events or required any infusions of fix replacement therapy for bleeds . one patient underwent hip surgery due to a pre-existing condition and was treated perioperatively with short-acting factor replacement . this was reported by the investigator as a serious adverse event unrelated to etranacogene dezaparvovec . amt-060 in december 2019 , we also presented four-year follow-up data related to our first-generation hemophilia b program . amt-060 , which incorporated a wild-type fix gene . all 10 patients enrolled in the phase i/ii study continue to show long-term meaningful clinical impact , including sustained increases in fix activity and improvements in their disease state as measured by reduced usage of fix replacement therapy and decreased bleeding frequency . at up to four years of follow-up , amt-060 continues to be well-tolerated , with no new serious adverse events and no development of inhibitors since the last reported data . all five patients in the high dose cohort of 2x10 13 gc/kg continue to be free of routine fix replacement therapy at up to three and a half years after treatment . based on the last six months of data collected during the fourth year of follow-up , the mean annualized bleeding rate was zero compared to an average of four bleeds during the year prior to treatment , representing a 100 % reduction . steady state mean yearly fix activity at three and a half years was 7.5 % compared with 7.1 % in the first year , 8.4 % in the second and 7.9 % in the third year . 64 ​ huntington 's disease program ( amt-130 ) amt-130 is our novel gene therapy candidate for the treatment of huntington 's disease . amt-130 utilizes our miqure tm proprietary , gene-silencing platform and incorporates an aav vector carrying a mirna specifically designed to silence the huntingtin gene and the potentially highly toxic exon 1 protein fragment . amt-130 has received orphan drug and fast track designations from the fda and orphan medicinal product designation from the ema . in january 2019 , our ind application for amt-130 was cleared by the fda , thereby enabling us to initiate our planned phase i/ii clinical study . the phase i/ii protocol is a randomized , imitation surgery-controlled , double-blinded study conducted at three surgical sites , and multiple referring , non-surgical sites in the u.s. the primary objective of the study is to evaluate the safety , tolerability and efficacy of amt-130 at two doses . in the fourth quarter of 2019 , we initiated patient screening . additionally , cgmp clinical material has been manufactured at our lexington facility and has been released for shipment . in january 2019 , the u.s. patent and trademark office issued u.s. patent 10,174,321 and in may 2019 the european patent office issued ep 3237618 , both with granted claims that cover the rna constructs specifically designed to target exon1 and the embedding of these huntington 's disease rna sequences into the mir451 scaffold , which we exclusively license from cshl . the claims also cover certain expression cassettes comprising the rna constructs and the use of gene therapy vectors including aav vectors encompassing the described expression cassettes . in february 2019 , we presented new preclinical data at the 14th annual chdi huntington 's disease therapeutics conference that illustrated the therapeutic potential of amt-130 to restore the function of damaged brain cells in huntington 's disease and provide a sustained reduction of mutant huntingtin protein . story_separator_special_tag historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . ​ adoption of asc 842 leases on january 1 , 2019 ​ on january 1 , 2019 , we adopted asc 842 , “ leases ( topic 842 ) ” . we adopted the standard using the modified retrospective approach with an effective date as of the beginning of the fiscal year , january 1 , 2019 , to operating leases that existed on that date . prior year comparative financial information was not recast under the new standard and continues to be presented under asc 840. we elected to utilize the package of practical expedients available for expired or existing contracts which allowed us to carryforward historical assessments of ( 1 ) whether contracts are or contain leases , ( 2 ) lease classification , and ( 3 ) initial direct costs . we performed an assessment and identified the lease facilities as material leases to be accounted for under asc 842 as of january 1 , 2019. the impact of implementing asc 842 is summarized below : ​ - recognized a $ 19.0 million operating right-of-use asset and a $ 28.1 million operating lease liability in relation to the facilities leased at the amsterdam and lexington sites in the consolidated balance sheet as of january 1 , 2019 ; - presented deferred rent of $ 9.1 million as of december 31 , 2018 , as a reduction of the right-of-use asset as from january 1 , 2019 onwards in the consolidated balance sheet and as a change within operating cash flows within accrued expense , other liabilities and operating leases ; we measured the lease liability at the present value of the future lease payments as of january 1 , 2019. we used an incremental borrowing rate to discount the lease payments . we derived the discount rate , adjusted for differences such as in the term and payment patterns , from our hercules loan which was refinanced immediately prior to the january 1 , 2019 adoption date in december 2018. we valued the right-of-use asset at the amount of the lease liability reduced by the remaining december 31 , 2018 balance of lease incentives received . we subsequently measure the lease liability at the present value of the future lease payments as of the reporting date with a corresponding adjustment to the right-to-use asset . absent a lease modification we will continue to utilize the january 1 , 2019 , incremental borrowing rate . we will continue to recognize lease cost on a straight-line basis and will continue to present these costs as operating expenses within our consolidated statements of operations and comprehensive loss . we will continue to present lease payments and landlord incentive payments within cash flows from operations within our consolidated statements of cash flows . 69 ​ ​ adoption of asc 606 revenue recognition on january 1 , 2018 ​ on january 1 , 2018 we adopted new revenue recognition policies in accordance with asc 606. the new revenue recognition policies replace the existing policies in accordance with asc 605. we elected to implement asc 606 by applying it to active collaboration arrangements as of january 1 , 2018 and to record a cumulative adjustment of revenue previously recognized to our accumulated loss as of december 31 , 2017. the impact of implementing asc 606 is summarized below : - recognized $ 7.5 million of license revenue during the twelve months ended december 31 , 2018 , related to the collaboration with bms compared to $ 4.2 million that would have been recognized in accordance with the previous revenue recognition policies ; - continued to present revenue recognized during the twelve months ended december 31 , 2017 , in accordance with the previous revenue recognition policies ; - decreased the accumulated loss by $ 24.9 million as of january 1 , 2018 and decreased deferred revenue as of the same date by $ 24.9 million . in accordance with the previous revenue recognition policies we had concluded that the bms collaboration agreement consisted of three performance obligations , ( i ) technology ( license and target selections ) , know-how and manufacturing in the field of gene therapy and development and active contribution to the development through the joint steering committee participations , ( ii ) provision of employees , goods and services for research , and ( iii ) clinical and commercial manufacturing . we determined that these three performance obligations are substantially identical with the performance obligations in accordance with our new revenue recognition policies : ( i ) providing access to our technology and know-how in the field of gene therapy as well as actively contributing to the target selection , the collaboration as a whole , the development during the target selection , the pre-clinical and the clinical phase through participating in joint steering committee and other governing bodies ( “ license revenue ” ) ; ( ii ) providing pre-clinical research activities ( “ collaboration revenue ” ) ; and ( iii ) providing clinical and commercial manufacturing services for products ( “ manufacturing revenue ” ) . license revenue we generate license revenue from a $ 60.1 million upfront payment recorded on may 21 , 2015 , as well as $ 15.0 million received in relation to the designation of the second , third and fourth collaboration target in august 2015. we are also entitled to an aggregate $ 16.5 million in target designation payments upon the selection of the fifth to tenth collaboration target . we will also be eligible to receive research , development and regulatory milestone payments of up to $ 254.0 million for a lead candidate target ( which has been amt-126 ) and up to $ 217.0 million for each of the other selected targets , if milestones are achieved . we will include the variable consideration related to the

customer retention during the pandemic is less predictable , and of greater immediate concern compared with our normal operations , however , our residential pest and termite control business has remained reasonably consistent with some growth over prior years . with many sheltering or working from home , we have experienced higher than normal demand for our residential services . our commercial pest control business has been more adversely impacted , as it crosses multiple industries such as healthcare , food processing , logistics , grocery , retail and hospitality . each of these industries is being impacted differently by the pandemic . many of our commercial customers continue to operate as “ essential ” businesses ; however , unfortunately there are a notable number of others that have closed , at least temporarily . we expect this impact will persist through much of 2021 until the majority of the population has been vaccinated against the virus . the company 's residential and termite revenues grew 13.4 % and 9.6 % , respectively , in 2020 compared to 2019 while our commercial pest control revenues fell by 0.5 % . 18 while we have a substantial amount of intangible assets on our balance sheet , based on our revenue growth this year , we do not anticipate any significant long-term loss in revenues or cash flows that would approach a level for impairment of intangible assets . all of our critical supply-chain vendors have remained operational , and we have engaged additional new sources to supplement our existing suppliers , especially for critical ppe and other covid-19 related items . fleet suppliers and support vendors continue to serve our needs . results of operations—2020 versus 2019 overview the company 's revenues increased to $ 2.161 billion in 2020 , a 7.2 % increase compared to 2019. gross margin increased to 51.5 % for 2020 from 50.7 % in 2019. sales , general and administrative expense were 30.4 % of revenues in 2020 compared to 30.9 % in 2019. the company 's depreciation and amortization expense as a percent of revenue increased 2.5 % to 4.1 % in 2020 compared to 4.0 % in 2019. rollins ' net income of $ 260.8 million in 2020 was an increase of $ 57.5 million , or 28.3 % , compared to $ 203.3 million in 2019. net profit margin improved to 12.1 % in 2020 from 10.1 % in 2019. rollins continued to expand our global brand recognition with acquisitions in the united states , canada , united kingdom , australia , and asia as well as expanded our orkin international franchise program in numerous countries around the globe . the company continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2020 were $ 2.161 billion , an increase of $ 145.7 million , or 7.2 % , from 2019 revenues of $ 2.015 billion . growth accounted for approximately 3.8 % of our increase , and our acquisitions contributed the remaining revenue growth . we experienced strong growth in residential pest control , increasing 13.4 % , while termite and ancillary revenues grew 9.6 % . year over year commercial revenues were down 0.5 % as commercial pest control was negatively impacted by the covid-19 virus due to various levels of government-driven shutdowns . the company 's revenue mix for the year ended december 31 , 2020 consisted primarily of 45 % residential pest control , 36 % commercial pest control and 19 % termite and ancillary revenues ( such as moisture control , insulation , deck and gutter work ) . during 2020 , the company chose to forgo the normal mid-year price increase , which historically contributes approximately 1.0 % to our annual revenue growth . approximately 80 % of the company 's pest control revenue was recurring in 2020 , as well as in 2019. the company 's foreign operations accounted for approximately 7 % and 8 % of total revenues for the years ended december 31 , 2020 and 2019 , respectively . the company established new franchises in several international countries around the globe in 2020 while closing or acquiring others , for a total of 94 orkin international franchises and nine australia franchises at december 31 , 2020 , compared to 97 orkin international franchises , one canadian critter control franchises and ten australia franchises at december 31 , 2019. the australia franchises operate under the murray pest control and scientific pest management names . revenue from franchising was up 5.6 % in 2020 compared to 2019 as the company continued to expand orkin 's international footprint and recognition of initial franchise fees . international and domestic franchising revenue was less than 1 % of the company 's revenues for 2020. orkin had 143 and 147 franchises ( domestic and international ) at december 31 , 2020 and 2019 , respectively . the company continued its strategy of buying back critter control franchises during 2020 , resulting in a drop in franchises to 79 at december 31 , 2020 , compared to 85 at december 31 , 2019. cost of services provided for the twelve months ended december 31 , 2020 , cost of services provided increased $ 55.0 million , or 5.5 % , compared to the twelve months ended december 31 , 2019. gross margin for the year increased to 51.5 % for 2020 from 50.7 % in 2019. margin improvements were driven primarily from lower service wage growth compared to revenue growth , and from fleet savings driven by improvements in our routing and scheduling efficiencies and lower fuel prices . story_separator_special_tag condition , results of operations and cash flows as of their respective balance sheet dates and for the periods then ended ; ( 15 ) our expectation that the adverse impact of the covid-19 pandemic , specifically , that a notable number of our commercial customers will continue to be forced to temporarily close their doors , will persist until the majority of the population has been vaccinated against the virus ; ( 16 ) our anticipation that we will not experience any significant long-term loss in revenues or cash flows , in connection with the covid-19 pandemic , that would approach a level for impairment of intangible assets ; ( 17 ) the belief that our current cash and cash equivalents balances , future cash flows expected to be generated from operating activities , available borrowings under our $ 175.0 million revolving credit facility and $ 136.0 million currently outstanding under our term loan facility will be sufficient to finance our current operations and obligations , and fund expansion of the business for the foreseeable future , ( 18 ) the belief that we have adequate liquid assets , funding sources and insurance accruals to satisfy any claims ; ( 19 ) our expectation to continue our payment of cash dividends , subject to the earnings and financial condition of the company and other relevant factors ; ( 20 ) plans regarding future acquisitions and franchise expansions , including our belief that acquisitions have been and may continue to be an important element of our business strategy ; ( 21 ) our belief that we maintain adequate liquidity and capital resources , without regard to its foreign deposits , to finance domestic operations and obligations and to fund expansion of our domestic business ; ( 22 ) plans to continue funding future defined benefit plan obligations with a possible reversion of any remaining pension assets to us in compliance with erisa regulations ; ( 23 ) our belief that the company will not make a contribution to its remaining pension plan during fiscal year 2021 ; ( 24 ) our belief that any potential additional pension plan contributions will not have a material effect on our financial position , results of operations or liquidity ; ( 25 ) our projected 2021 capital expenditures ; ( 26 ) the plans to grow the business in foreign markets through reinvestment of foreign deposits and future earnings and through acquisitions of unrelated companies with no expectation of repatriation of cash from our foreign subsidiaries ; ( 27 ) our ability to mitigate investment risks with respect to the waltham services , llc hourly employee pension plan by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness ; ( 28 ) our belief that we have adequate liquid assets , funding sources and insurance accruals to accommodate certain insurance claims ; ( 29 ) our expectation that we will maintain compliance with the covenants contained in our revolving credit agreement throughout 2021 ; ( 30 ) the expected impact and amount of our contractual obligations ; ( 31 ) our expectations regarding termite claims and factors that impact future costs from those claims ; ( 32 ) the expected cost of termite renewals ; ( 33 ) the expected collectability of accounts receivable ; ( 34 ) our belief that our tax positions are fully supportable ; ( 35 ) expectations and plans regarding any losses from franchisees ; ( 36 ) our beliefs about our accounting policies and the impact of recent accounting pronouncements ; ( 37 ) our belief that our exposure to market risks arising from changes in foreign exchange rates will not have a material impact upon our results of operations going forward ; ( 38 ) our ability to utilize all of our foreign net operating losses and the reasonable possibility that the company 's unrecognized tax benefits will decrease in the next 12 months ; ( 39 ) our reasonable certainty that we will exercise the renewal options on our operating leases ; ( 40 ) expectations regarding the recognition of compensation costs related to time-lapse restricted shares ; ( 41 ) our belief that maintaining and enhancing our brands increases our ability to enter new markets and launch new and innovative services that better serve the needs of our customers ; ( 42 ) our ability to be proactive in safety and risk management to develop and maintain ongoing programs to reduce claims ; and ( 43 ) our expected return on defined benefit pension plan assets ; ( 44 ) the potential limitation of our ability to take timely corrective actions to limit future costs if actual claims related to our defined benefit pension plan exceed our accruals and reserves ; ( 45 ) our potential suspension of future services for customers with past due balances ; and ( 46 ) management 's intention that our floating-to-fixed interest rate swap for an aggregate notional amount of $ 100.0 million will hedge a portion of the company 's floating rate indebtedness under the credit facility . 24 our actual results could differ materially from those indicated by the forward-looking statements because of various risks , timing and uncertainties including , without limitation , the failure to maintain and enhance our brands and develop a positive client reputation ; our ability to protect our intellectual property and other proprietary rights ; actions taken by our franchisees , subcontractors or vendors that may harm our business ; general economic conditions ; the impact of the extent and duration of economic contraction related to covid-19 on general economic activity for the remainder of 2021 and beyond ; the impact of future developments related to the covid-19 pandemic on the company 's business , results of operations , accounting assumptions and estimates and financial condition ; potential increases in labor costs ; our inability to

cash provided by operating activities the company 's operations generated cash of $ 435.8 million for the year ended december 31 , 2020 primarily from net income of $ 260.8 million , compared with cash provided by operating activities of $ 319.6 million in 2019 and $ 299.4 million in 2018. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities , available borrowings under its $ 175.0 million revolving credit facility and $ 250.0 million term loan facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company settled its obligations under the rollins , inc. pension plan in 2019 without making any additional contributions during the years ended december 31 , 2019 or 2018. the plan was fully funded with a prepaid balance . the plan assets exceeded the plan benefit obligations , and $ 31.8 million remained after settlement . the company sold illiquid benefit plan asset investments during 2020 and used $ 18.0 million and $ 11.0 million of the $ 31.8 million during the years ended december 31 , 2020 and 2019 , respectively , to fund its 401 ( k ) match obligations . as of december 31 , 2020 , the company had approximately $ 1.2 million remaining of benefit plan assets which will likely be reverted to the company per erisa regulations in 2021. the company has one remaining pension in one of its wholly-owned subsidiaries . an employer contribution of $ 0.1 million was made during the year ended december 31 , 2019. no contributions were made during 2020 or 2018. while the company 's management does not expect to make a contribution to its remaining pension plan during fiscal year 2021 , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash provided by operating activities the company 's operations generated cash of $ 435.8 million for the year ended december 31 , 2020 primarily from net income of $ 260.8 million , compared with cash provided by operating activities of $ 319.6 million in 2019 and $ 299.4 million in 2018. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities , available borrowings under its $ 175.0 million revolving credit facility and $ 250.0 million term loan facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company settled its obligations under the rollins , inc. pension plan in 2019 without making any additional contributions during the years ended december 31 , 2019 or 2018. the plan was fully funded with a prepaid balance . the plan assets exceeded the plan benefit obligations , and $ 31.8 million remained after settlement . the company sold illiquid benefit plan asset investments during 2020 and used $ 18.0 million and $ 11.0 million of the $ 31.8 million during the years ended december 31 , 2020 and 2019 , respectively , to fund its 401 ( k ) match obligations . as of december 31 , 2020 , the company had approximately $ 1.2 million remaining of benefit plan assets which will likely be reverted to the company per erisa regulations in 2021. the company has one remaining pension in one of its wholly-owned subsidiaries . an employer contribution of $ 0.1 million was made during the year ended december 31 , 2019. no contributions were made during 2020 or 2018. while the company 's management does not expect to make a contribution to its remaining pension plan during fiscal year 2021 , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity . ``` Suspicious Activity Report : customer retention during the pandemic is less predictable , and of greater immediate concern compared with our normal operations , however , our residential pest and termite control business has remained reasonably consistent with some growth over prior years . with many sheltering or working from home , we have experienced higher than normal demand for our residential services . our commercial pest control business has been more adversely impacted , as it crosses multiple industries such as healthcare , food processing , logistics , grocery , retail and hospitality . each of these industries is being impacted differently by the pandemic . many of our commercial customers continue to operate as “ essential ” businesses ; however , unfortunately there are a notable number of others that have closed , at least temporarily . we expect this impact will persist through much of 2021 until the majority of the population has been vaccinated against the virus . the company 's residential and termite revenues grew 13.4 % and 9.6 % , respectively , in 2020 compared to 2019 while our commercial pest control revenues fell by 0.5 % . 18 while we have a substantial amount of intangible assets on our balance sheet , based on our revenue growth this year , we do not anticipate any significant long-term loss in revenues or cash flows that would approach a level for impairment of intangible assets . all of our critical supply-chain vendors have remained operational , and we have engaged additional new sources to supplement our existing suppliers , especially for critical ppe and other covid-19 related items . fleet suppliers and support vendors continue to serve our needs . results of operations—2020 versus 2019 overview the company 's revenues increased to $ 2.161 billion in 2020 , a 7.2 % increase compared to 2019. gross margin increased to 51.5 % for 2020 from 50.7 % in 2019. sales , general and administrative expense were 30.4 % of revenues in 2020 compared to 30.9 % in 2019. the company 's depreciation and amortization expense as a percent of revenue increased 2.5 % to 4.1 % in 2020 compared to 4.0 % in 2019. rollins ' net income of $ 260.8 million in 2020 was an increase of $ 57.5 million , or 28.3 % , compared to $ 203.3 million in 2019. net profit margin improved to 12.1 % in 2020 from 10.1 % in 2019. rollins continued to expand our global brand recognition with acquisitions in the united states , canada , united kingdom , australia , and asia as well as expanded our orkin international franchise program in numerous countries around the globe . the company continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2020 were $ 2.161 billion , an increase of $ 145.7 million , or 7.2 % , from 2019 revenues of $ 2.015 billion . growth accounted for approximately 3.8 % of our increase , and our acquisitions contributed the remaining revenue growth . we experienced strong growth in residential pest control , increasing 13.4 % , while termite and ancillary revenues grew 9.6 % . year over year commercial revenues were down 0.5 % as commercial pest control was negatively impacted by the covid-19 virus due to various levels of government-driven shutdowns . the company 's revenue mix for the year ended december 31 , 2020 consisted primarily of 45 % residential pest control , 36 % commercial pest control and 19 % termite and ancillary revenues ( such as moisture control , insulation , deck and gutter work ) . during 2020 , the company chose to forgo the normal mid-year price increase , which historically contributes approximately 1.0 % to our annual revenue growth . approximately 80 % of the company 's pest control revenue was recurring in 2020 , as well as in 2019. the company 's foreign operations accounted for approximately 7 % and 8 % of total revenues for the years ended december 31 , 2020 and 2019 , respectively . the company established new franchises in several international countries around the globe in 2020 while closing or acquiring others , for a total of 94 orkin international franchises and nine australia franchises at december 31 , 2020 , compared to 97 orkin international franchises , one canadian critter control franchises and ten australia franchises at december 31 , 2019. the australia franchises operate under the murray pest control and scientific pest management names . revenue from franchising was up 5.6 % in 2020 compared to 2019 as the company continued to expand orkin 's international footprint and recognition of initial franchise fees . international and domestic franchising revenue was less than 1 % of the company 's revenues for 2020. orkin had 143 and 147 franchises ( domestic and international ) at december 31 , 2020 and 2019 , respectively . the company continued its strategy of buying back critter control franchises during 2020 , resulting in a drop in franchises to 79 at december 31 , 2020 , compared to 85 at december 31 , 2019. cost of services provided for the twelve months ended december 31 , 2020 , cost of services provided increased $ 55.0 million , or 5.5 % , compared to the twelve months ended december 31 , 2019. gross margin for the year increased to 51.5 % for 2020 from 50.7 % in 2019. margin improvements were driven primarily from lower service wage growth compared to revenue growth , and from fleet savings driven by improvements in our routing and scheduling efficiencies and lower fuel prices . story_separator_special_tag condition , results of operations and cash flows as of their respective balance sheet dates and for the periods then ended ; ( 15 ) our expectation that the adverse impact of the covid-19 pandemic , specifically , that a notable number of our commercial customers will continue to be forced to temporarily close their doors , will persist until the majority of the population has been vaccinated against the virus ; ( 16 ) our anticipation that we will not experience any significant long-term loss in revenues or cash flows , in connection with the covid-19 pandemic , that would approach a level for impairment of intangible assets ; ( 17 ) the belief that our current cash and cash equivalents balances , future cash flows expected to be generated from operating activities , available borrowings under our $ 175.0 million revolving credit facility and $ 136.0 million currently outstanding under our term loan facility will be sufficient to finance our current operations and obligations , and fund expansion of the business for the foreseeable future , ( 18 ) the belief that we have adequate liquid assets , funding sources and insurance accruals to satisfy any claims ; ( 19 ) our expectation to continue our payment of cash dividends , subject to the earnings and financial condition of the company and other relevant factors ; ( 20 ) plans regarding future acquisitions and franchise expansions , including our belief that acquisitions have been and may continue to be an important element of our business strategy ; ( 21 ) our belief that we maintain adequate liquidity and capital resources , without regard to its foreign deposits , to finance domestic operations and obligations and to fund expansion of our domestic business ; ( 22 ) plans to continue funding future defined benefit plan obligations with a possible reversion of any remaining pension assets to us in compliance with erisa regulations ; ( 23 ) our belief that the company will not make a contribution to its remaining pension plan during fiscal year 2021 ; ( 24 ) our belief that any potential additional pension plan contributions will not have a material effect on our financial position , results of operations or liquidity ; ( 25 ) our projected 2021 capital expenditures ; ( 26 ) the plans to grow the business in foreign markets through reinvestment of foreign deposits and future earnings and through acquisitions of unrelated companies with no expectation of repatriation of cash from our foreign subsidiaries ; ( 27 ) our ability to mitigate investment risks with respect to the waltham services , llc hourly employee pension plan by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness ; ( 28 ) our belief that we have adequate liquid assets , funding sources and insurance accruals to accommodate certain insurance claims ; ( 29 ) our expectation that we will maintain compliance with the covenants contained in our revolving credit agreement throughout 2021 ; ( 30 ) the expected impact and amount of our contractual obligations ; ( 31 ) our expectations regarding termite claims and factors that impact future costs from those claims ; ( 32 ) the expected cost of termite renewals ; ( 33 ) the expected collectability of accounts receivable ; ( 34 ) our belief that our tax positions are fully supportable ; ( 35 ) expectations and plans regarding any losses from franchisees ; ( 36 ) our beliefs about our accounting policies and the impact of recent accounting pronouncements ; ( 37 ) our belief that our exposure to market risks arising from changes in foreign exchange rates will not have a material impact upon our results of operations going forward ; ( 38 ) our ability to utilize all of our foreign net operating losses and the reasonable possibility that the company 's unrecognized tax benefits will decrease in the next 12 months ; ( 39 ) our reasonable certainty that we will exercise the renewal options on our operating leases ; ( 40 ) expectations regarding the recognition of compensation costs related to time-lapse restricted shares ; ( 41 ) our belief that maintaining and enhancing our brands increases our ability to enter new markets and launch new and innovative services that better serve the needs of our customers ; ( 42 ) our ability to be proactive in safety and risk management to develop and maintain ongoing programs to reduce claims ; and ( 43 ) our expected return on defined benefit pension plan assets ; ( 44 ) the potential limitation of our ability to take timely corrective actions to limit future costs if actual claims related to our defined benefit pension plan exceed our accruals and reserves ; ( 45 ) our potential suspension of future services for customers with past due balances ; and ( 46 ) management 's intention that our floating-to-fixed interest rate swap for an aggregate notional amount of $ 100.0 million will hedge a portion of the company 's floating rate indebtedness under the credit facility . 24 our actual results could differ materially from those indicated by the forward-looking statements because of various risks , timing and uncertainties including , without limitation , the failure to maintain and enhance our brands and develop a positive client reputation ; our ability to protect our intellectual property and other proprietary rights ; actions taken by our franchisees , subcontractors or vendors that may harm our business ; general economic conditions ; the impact of the extent and duration of economic contraction related to covid-19 on general economic activity for the remainder of 2021 and beyond ; the impact of future developments related to the covid-19 pandemic on the company 's business , results of operations , accounting assumptions and estimates and financial condition ; potential increases in labor costs ; our inability to

patient care as of december 31 , 2012 , we provided o & p patient care services through over 740 patient care clinics and over 1,300 clinicians in 45 states and the district of columbia . for the years ended december 31 , 2012 and 2011 , net sales attributable to our patient care services were $ 813.6 million and $ 753.4 million , respectively . patients are referred to our local patient care clinics directly by physicians as a result of our reputation or through our agreements with managed care providers . in our orthotics business , we design , fabricate , fit and maintain a wide range of standard and custom-made braces and other devices ( such as spinal , knee and sports-medicine braces ) that provide external support to patients suffering from musculoskeletal disorders , such as ailments of the back , extremities or joints and injuries from sports or other activities . in our prosthetics business , we design , fabricate , fit and maintain custom-made artificial limbs for patients who are without limbs as a result of traumatic injuries , vascular diseases , diabetes , 25 cancer or congenital disorders . o & p devices are increasingly technologically advanced and are custom-designed to add functionality and comfort to patients ' lives , shorten the rehabilitation process and lower the cost of rehabilitation . our clinicians are also responsible for managing and operating our patient care clinics and are compensated , in part , based on their success in managing costs and collecting accounts receivable . we provide centralized administrative , marketing and materials management services to take advantage of economies of scale and to increase the time clinicians have to provide patient care . in areas where we have multiple patient care clinics , we also utilize shared fabrication facilities where technicians fabricate devices for clinicians in that region . distribution we distribute o & p products , components , devices and supplies to our customers and to our own patient care clinics through our wholly-owned subsidiary , sps . we are also a leading fabricator and distributor of therapeutic footwear for diabetic patients in the podiatric market . for the year ended december 31 , 2012 , 35.9 % or approximately $ 107.3 million of sps distribution sales were to third-party o & p services providers , and the balance of approximately $ 191.2 million represented intercompany sales to hanger clinic 's patient care clinics . sps maintains in inventory approximately 33,000 individual skus manufactured by more than 390 different companies . sps maintains distribution facilities in california , florida , georgia , illinois , pennsylvania , and texas , which allows us to deliver products via ground shipment anywhere in the contiguous united states typically within two business days . our distribution business enables us to : centralize our purchasing and thus lower our material costs by negotiating purchasing discounts from manufacturers ; reduce our patient care clinic inventory levels and improve inventory turns ; perform inventory quality control ; encourage our patient care clinics to use clinically appropriate products that enhance our profit margins ; and coordinate new product development efforts with key vendor `` partners `` . marketing of our distribution services is conducted on a national basis through a dedicated sales force , print and e-commerce catalogues , and exhibits at industry and medical meetings and conventions . we direct specialized catalogues to segments of the healthcare industry , such as orthopedic surgeons , physical and occupational therapists , and podiatrists . therapeutic solutions we provide therapeutic solutions to the o & p market and post-acute rehabilitation market through our subsidiaries in , inc. and acp . acp is the nation 's leading provider of rehabilitation technologies and integrated clinical programs to rehabilitation providers . acp 's unique value proposition is to provide its customers with a full-service `` total solutions `` approach encompassing proven medical technology , evidence based clinical programs , and continuous onsite therapist education and training . acp 's services support increasingly advanced treatment options for a broader patient population and more medically complex conditions . acp has contracts to serve more than 4,550 skilled nursing facilities nationwide , including 21 of the 25 largest national providers . acp 's contracts contain negotiated pricing and service levels with terms ranging from one to five years . acp generally bills its customers monthly and revenue is recognized based upon the contractual terms of the agreements . 26 in , inc. specializes in product development and commercialization of emerging products . working with the inventors under licensing and consulting agreements , in , inc. commercializes the design , obtains regulatory approvals , develops clinical protocols for the technology , and then introduces the devices to the marketplace through a variety of distribution channels . in , inc. currently has two commercial products ; the walkaide system which benefits patients with a condition referred to as foot drop and the v-hold which is active suction technology used in lower extremity prosthetic devices . the walkaide system is currently reimbursable from medicare beneficiaries with foot drop due to incomplete spinal cord injuries . in , inc. is currently conducting randomized clinical trials in an effort to gain additional coverage for stroke patients with foot drop , which represents the largest potential patient population . in , inc. fully enrolled the clinical trial in the second quarter of 2012 and completed the active phase of the clinical trial in the fourth quarter of 2012. in , inc. is currently analyzing the data , which it expects to publish and later submit to cms in late 2013. in addition to reimbursement from medicare and medicaid , in , inc. has been working with commercial insurance companies and has had limited success in receiving coverage for the walkaide . the walkaide and v-hold are sold in the united states through our patient care clinics and sps . story_separator_special_tag in addition , an entity is required to present either on the face of the statement of operations or in the notes , significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period . for amounts not reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures 31 that provide additional detail about those amounts . this asu is effective prospectively for the company fiscal years , and interim periods within those years beginning after december 15 , 2012. the company will comply with the disclosure requirements of this asu for the quarter ending march 31 , 2013. the company does not expect the impact of adopting this asu to be material to the company 's financial position , results of operations or cash flows . results of operations the following table sets forth , for the periods indicated , certain items from our consolidated statements of income and comprehensive income as a percentage of our net sales : replace_table_token_12_th year ended december 31 , 2012 compared with the year ended december 31 , 2011 net sales . net sales for the year ended december 31 , 2012 increased by $ 67.1 million , or 7.3 % , to $ 985.6 million from $ 918.5 million last year . the sales increase was principally the result of a $ 30.1 million , or 4.0 % , increase in same center sales ; a $ 30.2 million increase from acquired entities ; and a $ 6.8 million , or 6.8 % , increase in sales of the distribution segment . material costs . material costs for the year ended december 31 , 2012 were $ 296.2 million , an increase of $ 26.0 million , or 9.6 % , over $ 270.2 million for the same period in the prior year . the increase was the result of the growth in sales and change of product mix . material costs as a percentage of net sales increased to 30.1 % in 2012 from 29.4 % in 2011. personnel costs . personnel costs for the year ended december 31 , 2012 increased by $ 13.8 million to $ 335.3 million from $ 321.5 million for the year ended december 31 , 2011. the increase from prior year was primarily due to $ 10.2 million of personnel costs associated with acquired patient care clinics , and other increases in salary expense , commissions and benefits . other operating expenses . other operating expenses , which are comprised primarily of professional , office , bad debt , incentive compensation and reimbursable employee expenses , increased $ 11.0 million in 2012 to $ 188.9 million from $ 177.9 million for the year ended december 31 , 2011. the increase was attributable to $ 4.2 million related to acquisitions , $ 3.3 million in incentive compensation and $ 2.2 million in professional fees , respectively . the remainder is attributable to other operating expenses . other operating expenses as a percentage of net sales decreased slightly to 19.2 % . 32 relocation expenses . during 2011 , we completed the relocation of our corporate office from bethesda , maryland to austin , texas , which began in 2010. during the year ended december 31 , 2012 , we incurred no relocation costs compared to $ 1.2 million incurred in 2011. acquisition expenses . during 2012 , we acquired eighteen companies , consisting of 59 patient care clinics , and incurred $ 1.2 million of non-recurring costs related to these acquisitions , an increase of $ 0.4 million compared to the $ 0.8 million of acquisition related costs we incurred in 2011 to acquire eight companies that consisted of 21 patient care clinics . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2012 was $ 34.7 million versus $ 31.0 million for the year ended december 31 , 2011. the increase was commensurate with the increase in capital expenditures in 2012. income from operations . income from operations increased $ 13.3 million to $ 129.3 million for the year ended december 31 , 2012 compared to $ 116.0 million in the year ended december 31 , 2011. the increase was primarily due to the patient care segment as fixed costs were leveraged over increased sales . the remaining increase was due to $ 5.9 million of additional operating income in the distribution segment resulting from an increase in sales prices , implementation of cost management strategies and changes in sales mix . as a percentage of sales , income from operations in 2012 increased 0.5 % from 12.6 % to 13.1 % . interest expense . interest expense for the year ended december 31 , 2012 decreased slightly to $ 31.2 million , compared to $ 31.8 million for the year ended december 31 , 2011 , primarily due to a lower average term loan balance resulting from scheduled repayments , offset by increases in seller notes resulting from the 2012 acquisitions . provision for income taxes . an income tax provision of $ 34.5 million was recognized for the year ended december 31 , 2012 , compared to $ 29.7 million for the same period of the prior year . the increase in the income tax provision was primarily due to higher pre-tax earnings . our effective tax rate was 35.1 % and 35.3 % for 2012 and 2011 , respectively . the 2012 effective tax rate benefited 2.3 % from prior period federal research and development credit claims filed in 2012 , certain deferred tax asset rate changes , the release of a portion of our valuation allowance , and other nonrecurring discrete items . the 2011 effective tax rate benefited 2.5 % from the realization of certain state tax benefits and other

cash flows our working capital at december 31 , 2012 was $ 251.5 million , compared to $ 240.6 million and $ 185.3 million for the years ended december 31 , 2011 and 2010 , respectively . the increase in working capital was primarily due to an increase in cash , inventory , and accounts receivable . days sales outstanding ( `` dso '' ) , which is the number of days between the billing for our o & p products and services and the date of our receipt of payment thereof , for the year ended december 31 , 2012 increased to 58 days , compared to 54 days in 2011 and 52 days in 2010 for the same period . the increase in dso was primarily due to the increase in fourth quarter sales and an increase in accounts receivable related to fourth quarter acquisitions . net cash provided by operating activities was $ 81.3 million for the year ended december 31 , 2012 , compared to $ 61.8 million in 2011 or $ 54.2 million in 2010. the increase in cash provided by operating activities in the current year resulted primarily from increased net income and a decrease in incentive compensation payments in 2012. net cash used in investing activities was $ 99.1 million , $ 46.9 million , and $ 186.0 million for the years ended december 31 , 2012 , 2011 , and 2010 respectively . in 2012 , 2011 , and 2010 , we invested $ 33.2 million , $ 28.7 million , and $ 30.6 million , respectively , in improvements to our patient care clinics , upgrades to our computer hardware and software , and purchases of equipment leased to third parties by our therapeutic solutions segment . in 2012 , we acquired eighteen o & p companies , operating a total of 59 patient care clinics , at an aggregate purchase price of $ 83.1 million . in 2011 , we acquired eight o & p companies , operating a total of 21 patient care clinics , at an aggregate purchase price of $ 24.9 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. ```cash flows our working capital at december 31 , 2012 was $ 251.5 million , compared to $ 240.6 million and $ 185.3 million for the years ended december 31 , 2011 and 2010 , respectively . the increase in working capital was primarily due to an increase in cash , inventory , and accounts receivable . days sales outstanding ( `` dso '' ) , which is the number of days between the billing for our o & p products and services and the date of our receipt of payment thereof , for the year ended december 31 , 2012 increased to 58 days , compared to 54 days in 2011 and 52 days in 2010 for the same period . the increase in dso was primarily due to the increase in fourth quarter sales and an increase in accounts receivable related to fourth quarter acquisitions . net cash provided by operating activities was $ 81.3 million for the year ended december 31 , 2012 , compared to $ 61.8 million in 2011 or $ 54.2 million in 2010. the increase in cash provided by operating activities in the current year resulted primarily from increased net income and a decrease in incentive compensation payments in 2012. net cash used in investing activities was $ 99.1 million , $ 46.9 million , and $ 186.0 million for the years ended december 31 , 2012 , 2011 , and 2010 respectively . in 2012 , 2011 , and 2010 , we invested $ 33.2 million , $ 28.7 million , and $ 30.6 million , respectively , in improvements to our patient care clinics , upgrades to our computer hardware and software , and purchases of equipment leased to third parties by our therapeutic solutions segment . in 2012 , we acquired eighteen o & p companies , operating a total of 59 patient care clinics , at an aggregate purchase price of $ 83.1 million . in 2011 , we acquired eight o & p companies , operating a total of 21 patient care clinics , at an aggregate purchase price of $ 24.9 million . ``` Suspicious Activity Report : patient care as of december 31 , 2012 , we provided o & p patient care services through over 740 patient care clinics and over 1,300 clinicians in 45 states and the district of columbia . for the years ended december 31 , 2012 and 2011 , net sales attributable to our patient care services were $ 813.6 million and $ 753.4 million , respectively . patients are referred to our local patient care clinics directly by physicians as a result of our reputation or through our agreements with managed care providers . in our orthotics business , we design , fabricate , fit and maintain a wide range of standard and custom-made braces and other devices ( such as spinal , knee and sports-medicine braces ) that provide external support to patients suffering from musculoskeletal disorders , such as ailments of the back , extremities or joints and injuries from sports or other activities . in our prosthetics business , we design , fabricate , fit and maintain custom-made artificial limbs for patients who are without limbs as a result of traumatic injuries , vascular diseases , diabetes , 25 cancer or congenital disorders . o & p devices are increasingly technologically advanced and are custom-designed to add functionality and comfort to patients ' lives , shorten the rehabilitation process and lower the cost of rehabilitation . our clinicians are also responsible for managing and operating our patient care clinics and are compensated , in part , based on their success in managing costs and collecting accounts receivable . we provide centralized administrative , marketing and materials management services to take advantage of economies of scale and to increase the time clinicians have to provide patient care . in areas where we have multiple patient care clinics , we also utilize shared fabrication facilities where technicians fabricate devices for clinicians in that region . distribution we distribute o & p products , components , devices and supplies to our customers and to our own patient care clinics through our wholly-owned subsidiary , sps . we are also a leading fabricator and distributor of therapeutic footwear for diabetic patients in the podiatric market . for the year ended december 31 , 2012 , 35.9 % or approximately $ 107.3 million of sps distribution sales were to third-party o & p services providers , and the balance of approximately $ 191.2 million represented intercompany sales to hanger clinic 's patient care clinics . sps maintains in inventory approximately 33,000 individual skus manufactured by more than 390 different companies . sps maintains distribution facilities in california , florida , georgia , illinois , pennsylvania , and texas , which allows us to deliver products via ground shipment anywhere in the contiguous united states typically within two business days . our distribution business enables us to : centralize our purchasing and thus lower our material costs by negotiating purchasing discounts from manufacturers ; reduce our patient care clinic inventory levels and improve inventory turns ; perform inventory quality control ; encourage our patient care clinics to use clinically appropriate products that enhance our profit margins ; and coordinate new product development efforts with key vendor `` partners `` . marketing of our distribution services is conducted on a national basis through a dedicated sales force , print and e-commerce catalogues , and exhibits at industry and medical meetings and conventions . we direct specialized catalogues to segments of the healthcare industry , such as orthopedic surgeons , physical and occupational therapists , and podiatrists . therapeutic solutions we provide therapeutic solutions to the o & p market and post-acute rehabilitation market through our subsidiaries in , inc. and acp . acp is the nation 's leading provider of rehabilitation technologies and integrated clinical programs to rehabilitation providers . acp 's unique value proposition is to provide its customers with a full-service `` total solutions `` approach encompassing proven medical technology , evidence based clinical programs , and continuous onsite therapist education and training . acp 's services support increasingly advanced treatment options for a broader patient population and more medically complex conditions . acp has contracts to serve more than 4,550 skilled nursing facilities nationwide , including 21 of the 25 largest national providers . acp 's contracts contain negotiated pricing and service levels with terms ranging from one to five years . acp generally bills its customers monthly and revenue is recognized based upon the contractual terms of the agreements . 26 in , inc. specializes in product development and commercialization of emerging products . working with the inventors under licensing and consulting agreements , in , inc. commercializes the design , obtains regulatory approvals , develops clinical protocols for the technology , and then introduces the devices to the marketplace through a variety of distribution channels . in , inc. currently has two commercial products ; the walkaide system which benefits patients with a condition referred to as foot drop and the v-hold which is active suction technology used in lower extremity prosthetic devices . the walkaide system is currently reimbursable from medicare beneficiaries with foot drop due to incomplete spinal cord injuries . in , inc. is currently conducting randomized clinical trials in an effort to gain additional coverage for stroke patients with foot drop , which represents the largest potential patient population . in , inc. fully enrolled the clinical trial in the second quarter of 2012 and completed the active phase of the clinical trial in the fourth quarter of 2012. in , inc. is currently analyzing the data , which it expects to publish and later submit to cms in late 2013. in addition to reimbursement from medicare and medicaid , in , inc. has been working with commercial insurance companies and has had limited success in receiving coverage for the walkaide . the walkaide and v-hold are sold in the united states through our patient care clinics and sps . story_separator_special_tag in addition , an entity is required to present either on the face of the statement of operations or in the notes , significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period . for amounts not reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures 31 that provide additional detail about those amounts . this asu is effective prospectively for the company fiscal years , and interim periods within those years beginning after december 15 , 2012. the company will comply with the disclosure requirements of this asu for the quarter ending march 31 , 2013. the company does not expect the impact of adopting this asu to be material to the company 's financial position , results of operations or cash flows . results of operations the following table sets forth , for the periods indicated , certain items from our consolidated statements of income and comprehensive income as a percentage of our net sales : replace_table_token_12_th year ended december 31 , 2012 compared with the year ended december 31 , 2011 net sales . net sales for the year ended december 31 , 2012 increased by $ 67.1 million , or 7.3 % , to $ 985.6 million from $ 918.5 million last year . the sales increase was principally the result of a $ 30.1 million , or 4.0 % , increase in same center sales ; a $ 30.2 million increase from acquired entities ; and a $ 6.8 million , or 6.8 % , increase in sales of the distribution segment . material costs . material costs for the year ended december 31 , 2012 were $ 296.2 million , an increase of $ 26.0 million , or 9.6 % , over $ 270.2 million for the same period in the prior year . the increase was the result of the growth in sales and change of product mix . material costs as a percentage of net sales increased to 30.1 % in 2012 from 29.4 % in 2011. personnel costs . personnel costs for the year ended december 31 , 2012 increased by $ 13.8 million to $ 335.3 million from $ 321.5 million for the year ended december 31 , 2011. the increase from prior year was primarily due to $ 10.2 million of personnel costs associated with acquired patient care clinics , and other increases in salary expense , commissions and benefits . other operating expenses . other operating expenses , which are comprised primarily of professional , office , bad debt , incentive compensation and reimbursable employee expenses , increased $ 11.0 million in 2012 to $ 188.9 million from $ 177.9 million for the year ended december 31 , 2011. the increase was attributable to $ 4.2 million related to acquisitions , $ 3.3 million in incentive compensation and $ 2.2 million in professional fees , respectively . the remainder is attributable to other operating expenses . other operating expenses as a percentage of net sales decreased slightly to 19.2 % . 32 relocation expenses . during 2011 , we completed the relocation of our corporate office from bethesda , maryland to austin , texas , which began in 2010. during the year ended december 31 , 2012 , we incurred no relocation costs compared to $ 1.2 million incurred in 2011. acquisition expenses . during 2012 , we acquired eighteen companies , consisting of 59 patient care clinics , and incurred $ 1.2 million of non-recurring costs related to these acquisitions , an increase of $ 0.4 million compared to the $ 0.8 million of acquisition related costs we incurred in 2011 to acquire eight companies that consisted of 21 patient care clinics . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2012 was $ 34.7 million versus $ 31.0 million for the year ended december 31 , 2011. the increase was commensurate with the increase in capital expenditures in 2012. income from operations . income from operations increased $ 13.3 million to $ 129.3 million for the year ended december 31 , 2012 compared to $ 116.0 million in the year ended december 31 , 2011. the increase was primarily due to the patient care segment as fixed costs were leveraged over increased sales . the remaining increase was due to $ 5.9 million of additional operating income in the distribution segment resulting from an increase in sales prices , implementation of cost management strategies and changes in sales mix . as a percentage of sales , income from operations in 2012 increased 0.5 % from 12.6 % to 13.1 % . interest expense . interest expense for the year ended december 31 , 2012 decreased slightly to $ 31.2 million , compared to $ 31.8 million for the year ended december 31 , 2011 , primarily due to a lower average term loan balance resulting from scheduled repayments , offset by increases in seller notes resulting from the 2012 acquisitions . provision for income taxes . an income tax provision of $ 34.5 million was recognized for the year ended december 31 , 2012 , compared to $ 29.7 million for the same period of the prior year . the increase in the income tax provision was primarily due to higher pre-tax earnings . our effective tax rate was 35.1 % and 35.3 % for 2012 and 2011 , respectively . the 2012 effective tax rate benefited 2.3 % from prior period federal research and development credit claims filed in 2012 , certain deferred tax asset rate changes , the release of a portion of our valuation allowance , and other nonrecurring discrete items . the 2011 effective tax rate benefited 2.5 % from the realization of certain state tax benefits and other

we believe that the visibility into our long-term supply allows us to efficiently manage inventory to meet predicted sales , reduce capital investments , minimize our exposure to the cyclicality of the real estate market and mitigate the risks of entering into new markets . 44 we sell our vacation ownership products under the hilton grand vacations brand primarily through our distribution network of both in-market and off-site sales centers . our products are currently marketed for sale throughout the united states and the asia-pacific region . we operate sales distribution centers in major markets and popular leisure destinations with year-round demand and a history of being a friendly environment for vacation ownership . we have sales distribution centers in las vegas , orlando , oahu , japan , new york , myrtle beach , waikoloa , washington d.c. , hilton head , park city , chicago , korea and carlsba d . our marketing and sales activities are based on targeted direct marketing and a highly personalized sales approach . we use targeted direct marketing to reach potential members who are identified as having the financial ability to pay for our products and have an affinity with hilton and are frequent leisure travelers . tour flow quality impacts key metrics such as close rate and vpg , defined in “ key business and financial metric s and terms used by management— real estate sales metrics . ” additionally , the quality of tour flow impacts sales revenue and the collectability of our timeshare financing receivables . for the year ended december 31 , 2019 , 54 percent of our contract sales were to our existing owners . we provide financing for members purchasing our developed and acquired inventory and generate interest income . our timeshare financing receivables are collateralized by the underlying vois and are generally structured as 10-year , fully-amortizing loans that bear a fixed interest rate typically ranging from 9 percent to 18 percent per annum . financing propensity was 66.2 percent and 65.8 percent for the year ended december 31 , 2019 and 2018 , respectively . we calculate financing propensity as contract sales volume of financed contracts originated in the period divided by contract sales volume of all contracts originated in the period . the interest rate on our loans is determined by , among other factors , the amount of the down payment , the borrower 's credit profile and the loan term . the weighted-average fico score for new loans to u.s. and canadian borrowers at the time of origination were as follows : replace_table_token_2_th prepayment is permitted without penalty . when a member defaults , we ultimately return their voi to inventory for resale and that member no longer participates in our club . historical default rates , which represent annual defaults as a percentage of each year 's beginning gross timeshare financing receivables balance , were as follows : replace_table_token_3_th ( 1 ) a loan is considered to be in default if it is equal to or greater than 121 days past due as of the prior month end . some of our timeshare financing receivables have been pledged as collateral in our securitization transactions , which have in the past and may in the future provide funding for our business activities . in these securitization transactions , special purpose entities are established to issue various classes of debt securities which are generally collateralized by a single pool of assets , consisting of timeshare financing receivables that we service and related cash deposits . for additional information see note 5 : timeshare financing receivables in our audited consolidated financial statements included in item 8 of this annual report on form 10-k. in addition , we earn fees from servicing the loans provided by third-party developers of our fee-for-service projects to purchasers of their vois and from our securitized timeshare financing receivables . 45 resort operations and club management we enter into management agreements with the hoas of the voi owners for timeshare resorts developed by us or a third party . each of the hoas is governed by a board of directors comprised of owner and developer representatives that are charged with ensuring the resorts are well-maintained and financially stable . our management services include day-to-day operations of the resorts , maintenance of the resorts , preparation of reports , budgets and projections and employee training and oversight . our hoa management agreements provide for a cost-plus management fee , which means we generally earn a fee equal to 10 percent to 15 percent of the costs to operate the applicable resort . the fees we earn are highly predictable due to the relatively fixed nature of resort operating expenses and our management fees are unaffected by changes in rental rate or occupancy . we are reimbursed for the costs incurred to perform our services , principally related to personnel providing on-site services . the initial term of our management agreements typically ranges from three to five years and the agreements are subject to periodic renewal for one to three year periods . many of these agreements renew automatically unless either party provides advance notice of termination before the expiration of the term . we also manage and operate the points-based hilton grand vacations club and hilton club exchange programs , which provide exclusive exchange , leisure travel and reservation services to our club members . when owners purchase a voi , they are generally enrolled in the club and given an annual allotment of points that allow the member to exchange their annual usage rights in the voi that they own for a number of vacation and travel options . in addition to an annual membership fee , club members pay incremental fees depending on exchanges they choose within the club system . we rent unsold voi inventory , third-party inventory and inventory made available due to ownership exchanges through our club programs . story_separator_special_tag ebitda and adjusted ebitda are not recognized terms under u.s. gaap and should not be considered as alternatives to net income ( loss ) or other measures of financial performance or liquidity derived in accordance with u.s. gaap . in addition , our definitions of ebitda and adjusted ebitda may not be comparable to similarly titled measures of other companies . we believe that ebitda and adjusted ebitda provide useful information to investors about us and our financial condition and results of operations for the following reasons : ( i ) ebitda and adjusted ebitda are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions ; and ( ii ) ebitda and adjusted ebitda are frequently used by securities analysts , investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry . ebitda and adjusted ebitda have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income ( loss ) , cash flow or other methods of analyzing our results as reported under u.s. gaap . some of these limitations are : ebitda and adjusted ebitda do not reflect changes in , or cash requirements for , our working capital needs ; ebitda and adjusted ebitda do not reflect our interest expense ( excluding interest expense on non-recourse debt ) , or the cash requirements necessary to service interest or principal payments on our indebtedness ; ebitda and adjusted ebitda do not reflect our tax expense or the cash requirements to pay our taxes ; ebitda and adjusted ebitda do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments ; ebitda and adjusted ebitda do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations ; 50 ebitda and adjusted ebitda do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized ; and ebitda and adjusted ebitda may be calculated differently from other companies in our industry limiting their usefulness as comparative measures . because of these limitations , ebitda and adjusted ebitda should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations . free cash flow and adjusted free cash flow free cash flow represents cash from operating activities less non-inventory capital spending . adjusted free cash flow represents free cash flow less non-recourse debt activities , net . we consider free cash flow and adjusted free cash flow to be liquidity measures not recognized under u.s. gaap that provides useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities , including strategic opportunities and debt service . we do not believe these non-gaap measures to be a representation of how we will use excess cash . results of operations year ended december 31 , 2019 compared with year ended december 31 , 2018 the following discussion and analysis of our financial condition and results of operations is for the year ended december 31 , 2019 compared with the year ended december 31 , 2018. for a discussion and analysis of our financial condition and results of operations for the year ended december 31 , 2018 compared to december 31 , 2017 , see part ii , item 7 , “ management 's discussion and analysis of financial condition and results of operations ” included in the 2018 annual report on form 10-k , filed with the securities and exchange commission on february 28 , 2019 , which is available on the sec website at www.sec.gov . segment results the following table presents our revenues by segment for the year ended december 31 2019 fiscal year compared the year ended december 31 , 2018. we do not include equity in earnings from unconsolidated affiliates in our measures of segment revenues . replace_table_token_4_th ( 1 ) refer to note 21 : business segments in our audited consolidated financial statements included in item 8 of this annual report on form 10-k for details on the intersegment eliminations . 51 we evaluate our business segment operating performance using segment adjusted ebitda , as described in note 21 : business segments in our audited consolidated financial statements included in item 8 of this annual report on form 10-k. for a discussion of our definition of ebitda and adjusted ebitda , how management uses them to manage our business and material limitations on their usefulness , refer to “ —key business and financial metrics and terms used by management—ebitda and adjusted ebitda . ” the following table reconciles net income , our most comparable u.s. gaap financial measure , to ebitda and adjusted ebitda : replace_table_token_5_th ( 1 ) fluctuation in terms of percentage change is not meaningful . ( 2 ) for the year ended december 31 , 2019 , this amount includes costs associated with restructuring and other non-cash and on-time charges . for the years ended december 31 , 2018 and 2017 , these amounts include costs associated with the spin-off of $ 11 million and $ 8 million , respectively . the following table reconciles our segment adjusted ebitda to adjusted ebitda . replace_table_token_6_th ( 1 ) includes intersegment transactions , share-based compensation , depreciation and other adjustments attributable to the segments . ( 2 ) adjusts for segment related share-based compensation , depreciation and other adjustment items , such as spin related costs and restructuring costs . 52 real estate sales and financing in accordance with accounting standards codification ( “ asc ” ) topic 606 , “ revenue from contracts with customers ” ( “ asc 606 ” ) , revenue and the related costs to fulfill

sources and uses of our cash the following table summarizes our net cash flows and key metrics related to our liquidity : replace_table_token_15_th operating activities cash flow ( used in ) provided by operating activities is primarily generated from ( i ) sales and financing of vois and ( ii ) net cash generated from managing our resorts , club operations and providing related ancillary services . cash flows used in operating activities primarily include spending for the acquisition of inventory , development of new phases of existing resorts and funding our working capital needs . our cash flows provided by operations generally vary due to the following factors related to the sale of our vois ; the degree to which our owners finance their purchase and our owners ' repayment of timeshare financing receivables ; the timing of management and sales and marketing services provided ; and cash outlays for real estate to be converted to inventory in the future . additionally , cash flow provided by operations will also vary depending upon our sales mix of vois ; over time , we generally receive more cash from the sale of an owned voi as compared to that from a fee-for-service sale . the change in net cash flows provided by ( used in ) operating activities for the year ended december 31 , 2019 compared to the same period in 2018 was primarily due to ( i ) a reduction in the purchase and development of real estate for future conversion to inventory and ( ii ) favorable cash tax payments primarily due to non-recurring 2018 payment of 2017 hurricane irma deferral combined with reduction in 2019 payments due to 2018 overpayment and a favorable 2019 irs ruling resulting in a reduction of taxes .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```sources and uses of our cash the following table summarizes our net cash flows and key metrics related to our liquidity : replace_table_token_15_th operating activities cash flow ( used in ) provided by operating activities is primarily generated from ( i ) sales and financing of vois and ( ii ) net cash generated from managing our resorts , club operations and providing related ancillary services . cash flows used in operating activities primarily include spending for the acquisition of inventory , development of new phases of existing resorts and funding our working capital needs . our cash flows provided by operations generally vary due to the following factors related to the sale of our vois ; the degree to which our owners finance their purchase and our owners ' repayment of timeshare financing receivables ; the timing of management and sales and marketing services provided ; and cash outlays for real estate to be converted to inventory in the future . additionally , cash flow provided by operations will also vary depending upon our sales mix of vois ; over time , we generally receive more cash from the sale of an owned voi as compared to that from a fee-for-service sale . the change in net cash flows provided by ( used in ) operating activities for the year ended december 31 , 2019 compared to the same period in 2018 was primarily due to ( i ) a reduction in the purchase and development of real estate for future conversion to inventory and ( ii ) favorable cash tax payments primarily due to non-recurring 2018 payment of 2017 hurricane irma deferral combined with reduction in 2019 payments due to 2018 overpayment and a favorable 2019 irs ruling resulting in a reduction of taxes . ``` Suspicious Activity Report : we believe that the visibility into our long-term supply allows us to efficiently manage inventory to meet predicted sales , reduce capital investments , minimize our exposure to the cyclicality of the real estate market and mitigate the risks of entering into new markets . 44 we sell our vacation ownership products under the hilton grand vacations brand primarily through our distribution network of both in-market and off-site sales centers . our products are currently marketed for sale throughout the united states and the asia-pacific region . we operate sales distribution centers in major markets and popular leisure destinations with year-round demand and a history of being a friendly environment for vacation ownership . we have sales distribution centers in las vegas , orlando , oahu , japan , new york , myrtle beach , waikoloa , washington d.c. , hilton head , park city , chicago , korea and carlsba d . our marketing and sales activities are based on targeted direct marketing and a highly personalized sales approach . we use targeted direct marketing to reach potential members who are identified as having the financial ability to pay for our products and have an affinity with hilton and are frequent leisure travelers . tour flow quality impacts key metrics such as close rate and vpg , defined in “ key business and financial metric s and terms used by management— real estate sales metrics . ” additionally , the quality of tour flow impacts sales revenue and the collectability of our timeshare financing receivables . for the year ended december 31 , 2019 , 54 percent of our contract sales were to our existing owners . we provide financing for members purchasing our developed and acquired inventory and generate interest income . our timeshare financing receivables are collateralized by the underlying vois and are generally structured as 10-year , fully-amortizing loans that bear a fixed interest rate typically ranging from 9 percent to 18 percent per annum . financing propensity was 66.2 percent and 65.8 percent for the year ended december 31 , 2019 and 2018 , respectively . we calculate financing propensity as contract sales volume of financed contracts originated in the period divided by contract sales volume of all contracts originated in the period . the interest rate on our loans is determined by , among other factors , the amount of the down payment , the borrower 's credit profile and the loan term . the weighted-average fico score for new loans to u.s. and canadian borrowers at the time of origination were as follows : replace_table_token_2_th prepayment is permitted without penalty . when a member defaults , we ultimately return their voi to inventory for resale and that member no longer participates in our club . historical default rates , which represent annual defaults as a percentage of each year 's beginning gross timeshare financing receivables balance , were as follows : replace_table_token_3_th ( 1 ) a loan is considered to be in default if it is equal to or greater than 121 days past due as of the prior month end . some of our timeshare financing receivables have been pledged as collateral in our securitization transactions , which have in the past and may in the future provide funding for our business activities . in these securitization transactions , special purpose entities are established to issue various classes of debt securities which are generally collateralized by a single pool of assets , consisting of timeshare financing receivables that we service and related cash deposits . for additional information see note 5 : timeshare financing receivables in our audited consolidated financial statements included in item 8 of this annual report on form 10-k. in addition , we earn fees from servicing the loans provided by third-party developers of our fee-for-service projects to purchasers of their vois and from our securitized timeshare financing receivables . 45 resort operations and club management we enter into management agreements with the hoas of the voi owners for timeshare resorts developed by us or a third party . each of the hoas is governed by a board of directors comprised of owner and developer representatives that are charged with ensuring the resorts are well-maintained and financially stable . our management services include day-to-day operations of the resorts , maintenance of the resorts , preparation of reports , budgets and projections and employee training and oversight . our hoa management agreements provide for a cost-plus management fee , which means we generally earn a fee equal to 10 percent to 15 percent of the costs to operate the applicable resort . the fees we earn are highly predictable due to the relatively fixed nature of resort operating expenses and our management fees are unaffected by changes in rental rate or occupancy . we are reimbursed for the costs incurred to perform our services , principally related to personnel providing on-site services . the initial term of our management agreements typically ranges from three to five years and the agreements are subject to periodic renewal for one to three year periods . many of these agreements renew automatically unless either party provides advance notice of termination before the expiration of the term . we also manage and operate the points-based hilton grand vacations club and hilton club exchange programs , which provide exclusive exchange , leisure travel and reservation services to our club members . when owners purchase a voi , they are generally enrolled in the club and given an annual allotment of points that allow the member to exchange their annual usage rights in the voi that they own for a number of vacation and travel options . in addition to an annual membership fee , club members pay incremental fees depending on exchanges they choose within the club system . we rent unsold voi inventory , third-party inventory and inventory made available due to ownership exchanges through our club programs . story_separator_special_tag ebitda and adjusted ebitda are not recognized terms under u.s. gaap and should not be considered as alternatives to net income ( loss ) or other measures of financial performance or liquidity derived in accordance with u.s. gaap . in addition , our definitions of ebitda and adjusted ebitda may not be comparable to similarly titled measures of other companies . we believe that ebitda and adjusted ebitda provide useful information to investors about us and our financial condition and results of operations for the following reasons : ( i ) ebitda and adjusted ebitda are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions ; and ( ii ) ebitda and adjusted ebitda are frequently used by securities analysts , investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry . ebitda and adjusted ebitda have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income ( loss ) , cash flow or other methods of analyzing our results as reported under u.s. gaap . some of these limitations are : ebitda and adjusted ebitda do not reflect changes in , or cash requirements for , our working capital needs ; ebitda and adjusted ebitda do not reflect our interest expense ( excluding interest expense on non-recourse debt ) , or the cash requirements necessary to service interest or principal payments on our indebtedness ; ebitda and adjusted ebitda do not reflect our tax expense or the cash requirements to pay our taxes ; ebitda and adjusted ebitda do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments ; ebitda and adjusted ebitda do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations ; 50 ebitda and adjusted ebitda do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized ; and ebitda and adjusted ebitda may be calculated differently from other companies in our industry limiting their usefulness as comparative measures . because of these limitations , ebitda and adjusted ebitda should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations . free cash flow and adjusted free cash flow free cash flow represents cash from operating activities less non-inventory capital spending . adjusted free cash flow represents free cash flow less non-recourse debt activities , net . we consider free cash flow and adjusted free cash flow to be liquidity measures not recognized under u.s. gaap that provides useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities , including strategic opportunities and debt service . we do not believe these non-gaap measures to be a representation of how we will use excess cash . results of operations year ended december 31 , 2019 compared with year ended december 31 , 2018 the following discussion and analysis of our financial condition and results of operations is for the year ended december 31 , 2019 compared with the year ended december 31 , 2018. for a discussion and analysis of our financial condition and results of operations for the year ended december 31 , 2018 compared to december 31 , 2017 , see part ii , item 7 , “ management 's discussion and analysis of financial condition and results of operations ” included in the 2018 annual report on form 10-k , filed with the securities and exchange commission on february 28 , 2019 , which is available on the sec website at www.sec.gov . segment results the following table presents our revenues by segment for the year ended december 31 2019 fiscal year compared the year ended december 31 , 2018. we do not include equity in earnings from unconsolidated affiliates in our measures of segment revenues . replace_table_token_4_th ( 1 ) refer to note 21 : business segments in our audited consolidated financial statements included in item 8 of this annual report on form 10-k for details on the intersegment eliminations . 51 we evaluate our business segment operating performance using segment adjusted ebitda , as described in note 21 : business segments in our audited consolidated financial statements included in item 8 of this annual report on form 10-k. for a discussion of our definition of ebitda and adjusted ebitda , how management uses them to manage our business and material limitations on their usefulness , refer to “ —key business and financial metrics and terms used by management—ebitda and adjusted ebitda . ” the following table reconciles net income , our most comparable u.s. gaap financial measure , to ebitda and adjusted ebitda : replace_table_token_5_th ( 1 ) fluctuation in terms of percentage change is not meaningful . ( 2 ) for the year ended december 31 , 2019 , this amount includes costs associated with restructuring and other non-cash and on-time charges . for the years ended december 31 , 2018 and 2017 , these amounts include costs associated with the spin-off of $ 11 million and $ 8 million , respectively . the following table reconciles our segment adjusted ebitda to adjusted ebitda . replace_table_token_6_th ( 1 ) includes intersegment transactions , share-based compensation , depreciation and other adjustments attributable to the segments . ( 2 ) adjusts for segment related share-based compensation , depreciation and other adjustment items , such as spin related costs and restructuring costs . 52 real estate sales and financing in accordance with accounting standards codification ( “ asc ” ) topic 606 , “ revenue from contracts with customers ” ( “ asc 606 ” ) , revenue and the related costs to fulfill

30 other highlights of our fiscal 2012 performance include : reducing our long-term debt by $ 332.6 million , which lowered our consolidated leverage ratio to 4.6:1 at december 31 , 2012 from 5.3:1 at december 31 , 2011. the reduction primarily came from a combination of after-tax cash proceeds and elimination of financing obligations from the refranchising of applebee 's company-operated restaurants and from our free cash flow ; increasing applebee 's domestic same-restaurant sales by 1.2 % during 2012 , the third consecutive year of same-restaurant sales growth . applebee 's same-restaurant sales have increased in nine of the last ten quarters ; opening 48 new restaurants worldwide by ihop franchisees and area licensees and 34 new restaurants by applebee 's franchisees . ihop 's international footprint was expanded with franchise openings in the middle east and the dominican republic ; remodeling over 560 restaurants system-wide during 2012. applebee 's and its franchisees remodeled 370 restaurants during 2012 , while ihop and its franchisees remodeled 191 restaurants . over the past two years , 51 % of applebee 's restaurants and approximately one-third of ihop restaurants have been remodeled ; executing a comprehensive restructuring of general and administrative functions that will reduce future costs . while the severance costs associated with headcount reductions exceeded savings in fiscal 2012 , we estimate these actions will save approximately $ 10 million to $ 12 million on a annualized basis in the future ; and establishing new centers of excellence to pool talent from across our organization to realize synergies , share best practices and eliminate duplication of effort . key performance indicators in evaluating and assessing the performance of our business , we consider our key performance indicators to be : ( i ) the percentage change in domestic system-wide same-restaurant sales ; ( ii ) net franchise restaurant development ; ( iii ) consolidated cash from operations ; and ( iv ) consolidated free cash flow . an overview of our 2012 performance in these metrics is as follows : replace_table_token_11_th ( 1 ) franchise and area license openings , net of closings and the refranchising of 154 applebee 's company-operated restaurants and two rehabilitated and refranchised ihop restaurants for the year ended december 31 , 2012 , our consolidated cash from operations was $ 52.9 million and our consolidated free cash flow was $ 48.2 million . we achieved mixed results on these metrics in 2012. applebee 's achieved an increase in domestic system-wide same-restaurant sales for the third consecutive year . applebee 's cumulative increase over those three years is 3.5 % , a significant achievement in light of the headwinds we faced as the country and our guests recovered from the 2008 economic crisis . ihop , on the other hand , had a decline in its domestic system-wide same-restaurant sales for the second consecutive year , although the decline in 2012 was less than in 2011. ihop franchisees and area licensees opened 48 new franchise restaurants in 2012 , with net openings ( openings less closings and refranchisings ) of 31 restaurants . over the past three years , ihop has achieved 125 net openings , an annual growth rate of nearly 3 % . applebee 's franchisees opened 34 new franchise restaurants in 2012 , with net openings of 15 restaurants . over the past three years , applebee 's net openings totaled 33 restaurants , an annual growth rate of under 1 % . both cash from operations and free cash flow decreased approximately 55 % from the prior year . the majority of the decline was the expected result of the refranchising of applebee 's company-operated restaurants in terms of both restaurant operating profit foregone and payment of taxes on gains from the sale of restaurant assets . while proceeds from asset sales are an investing cash inflow , all income taxes paid are an operating cash outflow . additional information on each of these metrics is presented under the captions `` restaurant data , `` `` company restaurant operations `` and `` liquidity and capital resources `` below . 31 key overall strategies dineequity 's key strategies with the completion of our refranchising initiative , dineequity is continuing with its efforts to drive shareholder and franchisee value . we have an ongoing program to leverage core competencies across the entire enterprise that is focused on three primary goals : optimize organization capability ; drive profitable organic growth ; and reduce costs for both ourselves and our franchisees . we have a fundamentally differentiated approach to brand management that centers on the powerful and strategic combination of marketing , menu , operations and remodel initiatives that creates a distinctive and relevant connection with our guests . additionally , our shared services operating platform allows our brands to focus on key factors that drive the business while leveraging the resources and expertise of our scalable , centralized support structure . we believe this is a competitive point of difference . together , this closely integrated approach is expected to result in strong brand performance that drives dineequity 's growth and delivers results for our shareholders . applebee 's key strategies we are revitalizing the applebee 's brand . applebee 's domestic system-wide same-restaurant sales increased 1.2 % in 2012. this was applebee 's third year of increased same-restaurant sales and we outpaced our group of competitors . we are growing by executing on the following key strategies : ( i ) drive profitable sales and traffic ; ( ii ) invest in process and product innovation ; ( iii ) transform the business ; and ( iv ) improve margins and restaurant level economics . story_separator_special_tag however , we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales , as well as , in some cases , rental payments under leases that are usually based on a percentage of their sales . management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations . replace_table_token_14_th replace_table_token_15_th 37 _ ( a ) `` effective restaurants `` are the number of restaurants in a given fiscal period adjusted to account for restaurants open for only a portion of the period . information is presented for all effective restaurants in the applebee 's and ihop systems , which includes restaurants owned by the company as well as those owned by franchisees and area licensees . ( b ) `` system-wide sales `` are retail sales of applebee 's and ihop restaurants operated by franchisees and ihop restaurants operated by area licensees as reported to the company , in addition to retail sales at company-operated restaurants . sales at restaurants that are owned by franchisees and area licensees are not attributable to the company . ( c ) `` sales percentage change `` reflects , for each category of restaurants , the percentage change in sales in any given fiscal year compared to the prior fiscal year for all restaurants in that category . ( d ) `` domestic same-restaurant sales percentage change `` reflects the percentage change in sales , in any given fiscal year compared to the prior fiscal year , for restaurants that have been operated throughout both fiscal periods that are being compared and have been open for at least 18 months . because of new unit openings and restaurant closures , the restaurants open throughout both fiscal periods being compared will be different from period to period . same-restaurant sales percentage change does not include data on ihop restaurants located in florida . ( e ) applebee 's domestic franchise restaurant sales , ihop franchise restaurant sales and ihop area license restaurant sales for the years ended december 31 , 2012 , 2011 and 2010 were as follows : replace_table_token_16_th ( f ) sales percentage changes and domestic same-restaurant sales percentage change for ihop company-operated restaurants are not meaningful ( “ n/m ” ) because there are few such restaurants , consisting of 10 restaurants in a single test market , along with a variable , small number of restaurants that are reacquired from franchisees from time-to-time and temporarily operated by the company . ( g ) the sales percentage change for applebee 's franchise and company-operated restaurants is impacted by the refranchising of 154 company-operated restaurants in 2012 , 132 company-operated restaurants during 2011 and 83 company-operated restaurants during 2010 . 38 the following tables summarize applebee 's and ihop restaurant development and franchising activity . replace_table_token_17_th replace_table_token_18_th 39 comparison of the fiscal years ended december 31 , 2012 and 2011 overview our 2012 financial results compared to 2011 were significantly impacted by ( i ) the successful refranchising of 154 applebee 's company-operated restaurants during 2012 that resulted in increased gains on the disposition of the restaurants partially offset by lower segment profit ; ( ii ) lower impairment and closure charges due to non-recurring costs related to the 2011 termination of the sublease of applebee 's restaurant support center ; and ( iii ) lower interest expense due to the ongoing early retirement of debt with both proceeds from the asset dispositions and excess cash flow . highlights of comparisons between the two periods included : revenues decreased $ 225.3 million to $ 849.9 million in 2012 from $ 1.1 billion in 2011 . the decline was primarily due to the net effect of refranchising 286 company-operated applebee 's restaurants in 2012 and 2011 , and a 1.6 % decrease in ihop domestic system-wide same-restaurant sales , partially offset by a 2.7 % increase in ihop effective franchise restaurants and a 1.2 % increase in applebee 's domestic system-wide same-restaurant sales . segment profit for 2012 decreased by $ 15.7 million , comprised as follows : replace_table_token_19_th the decrease in segment profit was primarily due to the net effect of refranchising 286 applebee 's company-operated restaurants in 2012 and 2011 , the decrease in ihop domestic system-wide same-restaurant sales and a write-off of deferred lease rental income associated with franchised restaurants whose lease agreements were prematurely terminated . these unfavorable factors were partially offset by the increase in ihop effective franchise restaurants and the increase in applebee 's same-restaurant sales . impairment and closure charges were $ 25.7 million lower in 2012 primarily due to $ 27.5 million of charges related to the 2011 termination of the sublease for applebee 's former restaurant support center in lenexa , kansas that did not recur . interest expense decreased $ 18.4 million due to the ongoing early retirement of debt with both proceeds from the asset dispositions and excess cash flow and the repricing of our bank debt in february 2011. general and administrative ( `` g & a `` ) expenses increased $ 7.4 million , primarily due to a $ 9.1 million charge for settling certain litigation that commenced prior to our 2007 acquisition of applebee 's . 40 franchise operations replace_table_token_20_th ( 1 ) percentages are calculated on actual amounts , not the rounded amounts presented above the increase in applebee 's franchise revenue was attributable to increased royalty revenue resulting from a 7.0 % increase in the number of effective franchise restaurants , a 1.3 % increase in domestic same-restaurant sales and an increase in fees associated with franchisee-to-franchisee sales of applebee 's franchises . applebee 's effective franchise restaurant count increased by 124 due to the refranchising of 154 applebee 's company-operated restaurants during 2012 and a net increase of 15 restaurants

debt modification costs in 2011 , we incurred costs paid to third parties of $ 4.0 million in connection with an amendment to our credit agreement that were expensed in accordance with u.s. gaap guidance for debt modifications . there were no such costs in 2012 . income tax provision we recorded a tax provision of $ 67.2 million in 2012 as compared to a tax provision of $ 29.8 million in 2011 . the change was primarily due to the increase in our pretax book income . the 2012 effective tax rate of 34.5 % applied to pretax book income was lower than the statutory federal tax rate of 35 % primarily related to a reduction in state deferred taxes as a result of the refranchising and sale of applebee 's company-operated restaurants and compensation-related tax credits . comparison of the fiscal years ended december 31 , 2011 and 2010 overview our 2011 financial results compared to 2010 were significantly impacted by ( i ) the successful refranchising of 215 applebee 's company-operated restaurants since october 2010 ; ( ii ) a loss on extinguishment of debt and temporary equity of $ 107.0 million primarily related to the write off of deferred financing costs , prepayment penalties and tender premiums associated with our 2010 debt refinancing that did not recur ; ( iii ) lower interest expense due to our refinancing of long-term debt in october 2010 , the ongoing early retirement of debt with excess cash flow and the repricing of our bank debt in february 2011 ; and ( iv ) impairment and closure charges related to termination of the sublease of applebee 's restaurant support center in lenexa , kansas .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 modification costs in 2011 , we incurred costs paid to third parties of $ 4.0 million in connection with an amendment to our credit agreement that were expensed in accordance with u.s. gaap guidance for debt modifications . there were no such costs in 2012 . income tax provision we recorded a tax provision of $ 67.2 million in 2012 as compared to a tax provision of $ 29.8 million in 2011 . the change was primarily due to the increase in our pretax book income . the 2012 effective tax rate of 34.5 % applied to pretax book income was lower than the statutory federal tax rate of 35 % primarily related to a reduction in state deferred taxes as a result of the refranchising and sale of applebee 's company-operated restaurants and compensation-related tax credits . comparison of the fiscal years ended december 31 , 2011 and 2010 overview our 2011 financial results compared to 2010 were significantly impacted by ( i ) the successful refranchising of 215 applebee 's company-operated restaurants since october 2010 ; ( ii ) a loss on extinguishment of debt and temporary equity of $ 107.0 million primarily related to the write off of deferred financing costs , prepayment penalties and tender premiums associated with our 2010 debt refinancing that did not recur ; ( iii ) lower interest expense due to our refinancing of long-term debt in october 2010 , the ongoing early retirement of debt with excess cash flow and the repricing of our bank debt in february 2011 ; and ( iv ) impairment and closure charges related to termination of the sublease of applebee 's restaurant support center in lenexa , kansas . ``` Suspicious Activity Report : 30 other highlights of our fiscal 2012 performance include : reducing our long-term debt by $ 332.6 million , which lowered our consolidated leverage ratio to 4.6:1 at december 31 , 2012 from 5.3:1 at december 31 , 2011. the reduction primarily came from a combination of after-tax cash proceeds and elimination of financing obligations from the refranchising of applebee 's company-operated restaurants and from our free cash flow ; increasing applebee 's domestic same-restaurant sales by 1.2 % during 2012 , the third consecutive year of same-restaurant sales growth . applebee 's same-restaurant sales have increased in nine of the last ten quarters ; opening 48 new restaurants worldwide by ihop franchisees and area licensees and 34 new restaurants by applebee 's franchisees . ihop 's international footprint was expanded with franchise openings in the middle east and the dominican republic ; remodeling over 560 restaurants system-wide during 2012. applebee 's and its franchisees remodeled 370 restaurants during 2012 , while ihop and its franchisees remodeled 191 restaurants . over the past two years , 51 % of applebee 's restaurants and approximately one-third of ihop restaurants have been remodeled ; executing a comprehensive restructuring of general and administrative functions that will reduce future costs . while the severance costs associated with headcount reductions exceeded savings in fiscal 2012 , we estimate these actions will save approximately $ 10 million to $ 12 million on a annualized basis in the future ; and establishing new centers of excellence to pool talent from across our organization to realize synergies , share best practices and eliminate duplication of effort . key performance indicators in evaluating and assessing the performance of our business , we consider our key performance indicators to be : ( i ) the percentage change in domestic system-wide same-restaurant sales ; ( ii ) net franchise restaurant development ; ( iii ) consolidated cash from operations ; and ( iv ) consolidated free cash flow . an overview of our 2012 performance in these metrics is as follows : replace_table_token_11_th ( 1 ) franchise and area license openings , net of closings and the refranchising of 154 applebee 's company-operated restaurants and two rehabilitated and refranchised ihop restaurants for the year ended december 31 , 2012 , our consolidated cash from operations was $ 52.9 million and our consolidated free cash flow was $ 48.2 million . we achieved mixed results on these metrics in 2012. applebee 's achieved an increase in domestic system-wide same-restaurant sales for the third consecutive year . applebee 's cumulative increase over those three years is 3.5 % , a significant achievement in light of the headwinds we faced as the country and our guests recovered from the 2008 economic crisis . ihop , on the other hand , had a decline in its domestic system-wide same-restaurant sales for the second consecutive year , although the decline in 2012 was less than in 2011. ihop franchisees and area licensees opened 48 new franchise restaurants in 2012 , with net openings ( openings less closings and refranchisings ) of 31 restaurants . over the past three years , ihop has achieved 125 net openings , an annual growth rate of nearly 3 % . applebee 's franchisees opened 34 new franchise restaurants in 2012 , with net openings of 15 restaurants . over the past three years , applebee 's net openings totaled 33 restaurants , an annual growth rate of under 1 % . both cash from operations and free cash flow decreased approximately 55 % from the prior year . the majority of the decline was the expected result of the refranchising of applebee 's company-operated restaurants in terms of both restaurant operating profit foregone and payment of taxes on gains from the sale of restaurant assets . while proceeds from asset sales are an investing cash inflow , all income taxes paid are an operating cash outflow . additional information on each of these metrics is presented under the captions `` restaurant data , `` `` company restaurant operations `` and `` liquidity and capital resources `` below . 31 key overall strategies dineequity 's key strategies with the completion of our refranchising initiative , dineequity is continuing with its efforts to drive shareholder and franchisee value . we have an ongoing program to leverage core competencies across the entire enterprise that is focused on three primary goals : optimize organization capability ; drive profitable organic growth ; and reduce costs for both ourselves and our franchisees . we have a fundamentally differentiated approach to brand management that centers on the powerful and strategic combination of marketing , menu , operations and remodel initiatives that creates a distinctive and relevant connection with our guests . additionally , our shared services operating platform allows our brands to focus on key factors that drive the business while leveraging the resources and expertise of our scalable , centralized support structure . we believe this is a competitive point of difference . together , this closely integrated approach is expected to result in strong brand performance that drives dineequity 's growth and delivers results for our shareholders . applebee 's key strategies we are revitalizing the applebee 's brand . applebee 's domestic system-wide same-restaurant sales increased 1.2 % in 2012. this was applebee 's third year of increased same-restaurant sales and we outpaced our group of competitors . we are growing by executing on the following key strategies : ( i ) drive profitable sales and traffic ; ( ii ) invest in process and product innovation ; ( iii ) transform the business ; and ( iv ) improve margins and restaurant level economics . story_separator_special_tag however , we believe that presentation of this information is useful in analyzing our revenues because franchisees and area licensees pay us royalties and advertising fees that are generally based on a percentage of their sales , as well as , in some cases , rental payments under leases that are usually based on a percentage of their sales . management also uses this information to make decisions about future plans for the development of additional restaurants as well as evaluation of current operations . replace_table_token_14_th replace_table_token_15_th 37 _ ( a ) `` effective restaurants `` are the number of restaurants in a given fiscal period adjusted to account for restaurants open for only a portion of the period . information is presented for all effective restaurants in the applebee 's and ihop systems , which includes restaurants owned by the company as well as those owned by franchisees and area licensees . ( b ) `` system-wide sales `` are retail sales of applebee 's and ihop restaurants operated by franchisees and ihop restaurants operated by area licensees as reported to the company , in addition to retail sales at company-operated restaurants . sales at restaurants that are owned by franchisees and area licensees are not attributable to the company . ( c ) `` sales percentage change `` reflects , for each category of restaurants , the percentage change in sales in any given fiscal year compared to the prior fiscal year for all restaurants in that category . ( d ) `` domestic same-restaurant sales percentage change `` reflects the percentage change in sales , in any given fiscal year compared to the prior fiscal year , for restaurants that have been operated throughout both fiscal periods that are being compared and have been open for at least 18 months . because of new unit openings and restaurant closures , the restaurants open throughout both fiscal periods being compared will be different from period to period . same-restaurant sales percentage change does not include data on ihop restaurants located in florida . ( e ) applebee 's domestic franchise restaurant sales , ihop franchise restaurant sales and ihop area license restaurant sales for the years ended december 31 , 2012 , 2011 and 2010 were as follows : replace_table_token_16_th ( f ) sales percentage changes and domestic same-restaurant sales percentage change for ihop company-operated restaurants are not meaningful ( “ n/m ” ) because there are few such restaurants , consisting of 10 restaurants in a single test market , along with a variable , small number of restaurants that are reacquired from franchisees from time-to-time and temporarily operated by the company . ( g ) the sales percentage change for applebee 's franchise and company-operated restaurants is impacted by the refranchising of 154 company-operated restaurants in 2012 , 132 company-operated restaurants during 2011 and 83 company-operated restaurants during 2010 . 38 the following tables summarize applebee 's and ihop restaurant development and franchising activity . replace_table_token_17_th replace_table_token_18_th 39 comparison of the fiscal years ended december 31 , 2012 and 2011 overview our 2012 financial results compared to 2011 were significantly impacted by ( i ) the successful refranchising of 154 applebee 's company-operated restaurants during 2012 that resulted in increased gains on the disposition of the restaurants partially offset by lower segment profit ; ( ii ) lower impairment and closure charges due to non-recurring costs related to the 2011 termination of the sublease of applebee 's restaurant support center ; and ( iii ) lower interest expense due to the ongoing early retirement of debt with both proceeds from the asset dispositions and excess cash flow . highlights of comparisons between the two periods included : revenues decreased $ 225.3 million to $ 849.9 million in 2012 from $ 1.1 billion in 2011 . the decline was primarily due to the net effect of refranchising 286 company-operated applebee 's restaurants in 2012 and 2011 , and a 1.6 % decrease in ihop domestic system-wide same-restaurant sales , partially offset by a 2.7 % increase in ihop effective franchise restaurants and a 1.2 % increase in applebee 's domestic system-wide same-restaurant sales . segment profit for 2012 decreased by $ 15.7 million , comprised as follows : replace_table_token_19_th the decrease in segment profit was primarily due to the net effect of refranchising 286 applebee 's company-operated restaurants in 2012 and 2011 , the decrease in ihop domestic system-wide same-restaurant sales and a write-off of deferred lease rental income associated with franchised restaurants whose lease agreements were prematurely terminated . these unfavorable factors were partially offset by the increase in ihop effective franchise restaurants and the increase in applebee 's same-restaurant sales . impairment and closure charges were $ 25.7 million lower in 2012 primarily due to $ 27.5 million of charges related to the 2011 termination of the sublease for applebee 's former restaurant support center in lenexa , kansas that did not recur . interest expense decreased $ 18.4 million due to the ongoing early retirement of debt with both proceeds from the asset dispositions and excess cash flow and the repricing of our bank debt in february 2011. general and administrative ( `` g & a `` ) expenses increased $ 7.4 million , primarily due to a $ 9.1 million charge for settling certain litigation that commenced prior to our 2007 acquisition of applebee 's . 40 franchise operations replace_table_token_20_th ( 1 ) percentages are calculated on actual amounts , not the rounded amounts presented above the increase in applebee 's franchise revenue was attributable to increased royalty revenue resulting from a 7.0 % increase in the number of effective franchise restaurants , a 1.3 % increase in domestic same-restaurant sales and an increase in fees associated with franchisee-to-franchisee sales of applebee 's franchises . applebee 's effective franchise restaurant count increased by 124 due to the refranchising of 154 applebee 's company-operated restaurants during 2012 and a net increase of 15 restaurants

cb-839 inhibits glutaminase , an enzyme required by cancer cells to utilize glutamine effectively . we are currently conducting three phase 1 clinical trials of cb-839 in the united states in patients with solid tumors , leukemias , lymphomas and multiple myeloma . the purpose of these trials is to evaluate the safety of cb-839 both as a single agent and in combination with approved therapies and to seek preliminary evidence of efficacy . pending input from the fda on the results of our phase 1 trials and phase 2 trial protocols , we plan to initiate one or more phase 2 clinical trials of cb-839 in 2016. we currently hold all commercial rights to cb-839 . our second program in tumor metabolism is focused on the hexokinase ii enzyme . a defining characteristic of most cancer cells is their increased uptake of glucose . cancer cells use glucose in a different manner than normal cells , but an obligate first step in all glucose utilizing pathways is phosphorylation of glucose by the enzyme hexokinase . due to their higher glucose needs , cancer cells frequently increase the level of this critical enzyme , specifically the isoform hexokinase ii . we believe inhibitors of hexokinase ii will significantly impede the ability of cancer cells to survive and proliferate and may lead to new approaches in treating cancer . our new program in hexokinase ii inhibitors was in-licensed from transtech pharma and we seek to identify and advance a drug candidate into clinical development as quickly as possible . we will provide additional details on our development plans and timelines in the near future as we undertake pre-clinical studies to profile our portfolio of hexokinase ii inhibitors . the field of tumor immunology seeks to activate the body 's own immune system to attack and kill cancer cells . our preclinical program in tumor immunology is focused on developing selective inhibitors of the enzyme arginase . arginase depletes arginine , a nutrient that is critical for the activation , growth and survival of the body 's cancer-fighting immune cells . we believe that inhibitors of arginase can promote an anti-tumor immune response by restoring arginine levels , thereby allowing activation of the body 's cancer-fighting immune cells . we are currently optimizing arginase inhibitors with the aim of submitting an ind application to the fda in early 2016. since our inception in 2010 , we have devoted substantially all of our resources to identifying and developing cb-839 , advancing our preclinical programs , conducting clinical trials and providing general and administrative support for these operations . we have not recorded revenue from product sales , collaboration activities or any other source . we have funded our operations to date primarily from the issuance and sale of convertible preferred stock and the initial public offering , or ipo , of our common stock that occurred in october 2014. in connection with the ipo , we sold 8,000,000 shares of common stock for proceeds of $ 71.6 million net of underwriting discounts and commissions and offering expenses . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 21.7 million , $ 12.4 million and $ 8.0 million for 2014 , 2013 and 2012. as of december 31 , 2014 we had an accumulated deficit of $ 51.9 million . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . 49 we expect to continue to incur significant expenses and increasing operating losses over at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : · advance product candidates through clinical trials ; · pursue regulatory approval of product candidates ; · operate as a public company ; · continue our preclinical programs and clinical development efforts ; · continue research activities for the discovery of new product candidates ; and · manufacture supplies for our preclinical studies and clinical trials . critical accounting polices and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . accrued research and development costs we record accrued expenses for estimated costs of our research and development activities conducted by third-party service providers , which include the conduct of preclinical studies and clinical trials and contract manufacturing activities . we record the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced , and include these costs in accrued liabilities in the balance sheet and within research and development expense in the statement of operations and comprehensive loss . story_separator_special_tag research and development research and development expenses increased $ 3.3 million , or 51 % , from $ 6.6 million for 2012 to $ 9.9 million for 2013. the increase was due to an increase of $ 2.1 million in external costs related to cb-839 development activities and manufacturing to support our phase 1 clinical trials , an increase of $ 0.7 million in connection with start-up activities to support our cb-839 phase 1 clinical trials , an increase of $ 0.5 million in personnel-related costs as a result of increased headcount and an increase of $ 0.2 million in professional services costs . these increases were partially offset by a decrease of $ 0.4 million in laboratory supplies costs . general and administrative general and administrative expenses increased $ 1.1 million , or 75 % , from $ 1.4 million for 2012 , to $ 2.5 million for 2013. the increase was due to an increase of $ 0.9 million in professional consulting expenses in connection with our market evaluation of cb-839 , our evaluation of potential partnership opportunities and accounting services . in addition , facility-related costs increased by $ 0.1 million due to our office expansion in the second half of 2013. liquidity and capital resources as of december 31 , 2014 , we had cash and cash equivalents totaling $ 102.0 million . in connection with our ipo that closed in october 2014 , we received cash proceeds of $ 71.6 million , net of underwriters ' discounts and commissions and expenses paid by us . prior to the ipo , our operations have been financed primarily by net proceeds from the sale of shares of our preferred stock . 53 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 and cash equivalents as of december 31 , 2014 will be sufficient for us to meet our current operating plan for at least the next twelve months . 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 equity and or debt financing . we may also consider collaborations or selectively partnering for clinical development and commercialization . the sale of additional equity would result in additional dilution to our stockholders . the incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations . if we are not able to secure adequate additional funding we may be forced to make reductions in spending , extend payment terms with suppliers , liquidate assets where possible , and or suspend or curtail planned programs . any of these actions could harm our business , results of operations and future prospects . the following table summarizes our cash flows for the periods indicated : replace_table_token_7_th story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:4.54 % ; font-family : times new roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we are an “ emerging growth company , ” as defined in the jobs act . under the jobs act , emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the jobs act until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards , and , therefore , will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . 55 recent accounting pronouncements in june 2014 , the financial accounting standards board , or fasb issued asu 2014-10 , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to

cash flows from operating activities cash used in operating activities for the year ended december 31 , 2014 was $ 19.2 million , consisting of a net loss of $ 21.7 million , which was offset by non-cash charges $ 0.4 million for depreciation and amortization expense and $ 0.7 million for stock-based compensation . the change in our net operating assets and liabilities was primarily due to a $ 1.5 million increase in prepaid expenses and other current assets primarily related to our prepayment of clinical trial activities and directors and officers liability insurance , a $ 2.6 million increase in accounts payable and accrued liabilities related to an increase in our research and development activities , and a $ 0.4 million increase in deferred rent . cash used in operating activities for 2013 was $ 11.8 million , consisting of a net loss of $ 12.4 million , which was offset in part by non-cash charges of $ 0.3 million for depreciation and amortization expense and $ 70,000 for stock-based compensation . the change 54 in our net operating assets and liabilities was due to a $ 0.4 million increase in our accounts payable and accrued liabilities related to an increase in our research and development activities and an increase of $ 0.3 million in prepaid expenses and other current assets related to our prepayment for clinical trial 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 used in operating activities for the year ended december 31 , 2014 was $ 19.2 million , consisting of a net loss of $ 21.7 million , which was offset by non-cash charges $ 0.4 million for depreciation and amortization expense and $ 0.7 million for stock-based compensation . the change in our net operating assets and liabilities was primarily due to a $ 1.5 million increase in prepaid expenses and other current assets primarily related to our prepayment of clinical trial activities and directors and officers liability insurance , a $ 2.6 million increase in accounts payable and accrued liabilities related to an increase in our research and development activities , and a $ 0.4 million increase in deferred rent . cash used in operating activities for 2013 was $ 11.8 million , consisting of a net loss of $ 12.4 million , which was offset in part by non-cash charges of $ 0.3 million for depreciation and amortization expense and $ 70,000 for stock-based compensation . the change 54 in our net operating assets and liabilities was due to a $ 0.4 million increase in our accounts payable and accrued liabilities related to an increase in our research and development activities and an increase of $ 0.3 million in prepaid expenses and other current assets related to our prepayment for clinical trial activities . ``` Suspicious Activity Report : cb-839 inhibits glutaminase , an enzyme required by cancer cells to utilize glutamine effectively . we are currently conducting three phase 1 clinical trials of cb-839 in the united states in patients with solid tumors , leukemias , lymphomas and multiple myeloma . the purpose of these trials is to evaluate the safety of cb-839 both as a single agent and in combination with approved therapies and to seek preliminary evidence of efficacy . pending input from the fda on the results of our phase 1 trials and phase 2 trial protocols , we plan to initiate one or more phase 2 clinical trials of cb-839 in 2016. we currently hold all commercial rights to cb-839 . our second program in tumor metabolism is focused on the hexokinase ii enzyme . a defining characteristic of most cancer cells is their increased uptake of glucose . cancer cells use glucose in a different manner than normal cells , but an obligate first step in all glucose utilizing pathways is phosphorylation of glucose by the enzyme hexokinase . due to their higher glucose needs , cancer cells frequently increase the level of this critical enzyme , specifically the isoform hexokinase ii . we believe inhibitors of hexokinase ii will significantly impede the ability of cancer cells to survive and proliferate and may lead to new approaches in treating cancer . our new program in hexokinase ii inhibitors was in-licensed from transtech pharma and we seek to identify and advance a drug candidate into clinical development as quickly as possible . we will provide additional details on our development plans and timelines in the near future as we undertake pre-clinical studies to profile our portfolio of hexokinase ii inhibitors . the field of tumor immunology seeks to activate the body 's own immune system to attack and kill cancer cells . our preclinical program in tumor immunology is focused on developing selective inhibitors of the enzyme arginase . arginase depletes arginine , a nutrient that is critical for the activation , growth and survival of the body 's cancer-fighting immune cells . we believe that inhibitors of arginase can promote an anti-tumor immune response by restoring arginine levels , thereby allowing activation of the body 's cancer-fighting immune cells . we are currently optimizing arginase inhibitors with the aim of submitting an ind application to the fda in early 2016. since our inception in 2010 , we have devoted substantially all of our resources to identifying and developing cb-839 , advancing our preclinical programs , conducting clinical trials and providing general and administrative support for these operations . we have not recorded revenue from product sales , collaboration activities or any other source . we have funded our operations to date primarily from the issuance and sale of convertible preferred stock and the initial public offering , or ipo , of our common stock that occurred in october 2014. in connection with the ipo , we sold 8,000,000 shares of common stock for proceeds of $ 71.6 million net of underwriting discounts and commissions and offering expenses . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 21.7 million , $ 12.4 million and $ 8.0 million for 2014 , 2013 and 2012. as of december 31 , 2014 we had an accumulated deficit of $ 51.9 million . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . 49 we expect to continue to incur significant expenses and increasing operating losses over at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : · advance product candidates through clinical trials ; · pursue regulatory approval of product candidates ; · operate as a public company ; · continue our preclinical programs and clinical development efforts ; · continue research activities for the discovery of new product candidates ; and · manufacture supplies for our preclinical studies and clinical trials . critical accounting polices and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . accrued research and development costs we record accrued expenses for estimated costs of our research and development activities conducted by third-party service providers , which include the conduct of preclinical studies and clinical trials and contract manufacturing activities . we record the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced , and include these costs in accrued liabilities in the balance sheet and within research and development expense in the statement of operations and comprehensive loss . story_separator_special_tag research and development research and development expenses increased $ 3.3 million , or 51 % , from $ 6.6 million for 2012 to $ 9.9 million for 2013. the increase was due to an increase of $ 2.1 million in external costs related to cb-839 development activities and manufacturing to support our phase 1 clinical trials , an increase of $ 0.7 million in connection with start-up activities to support our cb-839 phase 1 clinical trials , an increase of $ 0.5 million in personnel-related costs as a result of increased headcount and an increase of $ 0.2 million in professional services costs . these increases were partially offset by a decrease of $ 0.4 million in laboratory supplies costs . general and administrative general and administrative expenses increased $ 1.1 million , or 75 % , from $ 1.4 million for 2012 , to $ 2.5 million for 2013. the increase was due to an increase of $ 0.9 million in professional consulting expenses in connection with our market evaluation of cb-839 , our evaluation of potential partnership opportunities and accounting services . in addition , facility-related costs increased by $ 0.1 million due to our office expansion in the second half of 2013. liquidity and capital resources as of december 31 , 2014 , we had cash and cash equivalents totaling $ 102.0 million . in connection with our ipo that closed in october 2014 , we received cash proceeds of $ 71.6 million , net of underwriters ' discounts and commissions and expenses paid by us . prior to the ipo , our operations have been financed primarily by net proceeds from the sale of shares of our preferred stock . 53 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 and cash equivalents as of december 31 , 2014 will be sufficient for us to meet our current operating plan for at least the next twelve months . 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 equity and or debt financing . we may also consider collaborations or selectively partnering for clinical development and commercialization . the sale of additional equity would result in additional dilution to our stockholders . the incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations . if we are not able to secure adequate additional funding we may be forced to make reductions in spending , extend payment terms with suppliers , liquidate assets where possible , and or suspend or curtail planned programs . any of these actions could harm our business , results of operations and future prospects . the following table summarizes our cash flows for the periods indicated : replace_table_token_7_th story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:4.54 % ; font-family : times new roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we are an “ emerging growth company , ” as defined in the jobs act . under the jobs act , emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the jobs act until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards , and , therefore , will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . 55 recent accounting pronouncements in june 2014 , the financial accounting standards board , or fasb issued asu 2014-10 , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to

due to the robust results at week 12 , we decided to amend the protocol to include an ad hoc visit at 20 weeks and called all subjects to come back in for a visit ; 97 patients returned . at week twenty , 50 % of patients in the kellgren-lawrence grades of 3 and 4 ( severe osteoarthritis ) had improvement of 40 % or more in the womac a pain scale compared to 25 % in the vehicle control group ( p=0.04 ) . patients were also classified as “responders” if they achieved 40 % or greater improvement in pain , womac a , and function , womac c , at and over 20 weeks after a single intra-articular injection into the knee . in these same grade 3 and 4 patients , there was a statistically significant improvement in pain , womac a , compared to the vehicle control both at week 20 ( p=0.02 ) and over the whole period of 20 weeks ( p=0.005 ) . also in these same grade 3 and 4 patients , there was a statistically significant improvement in function , womac c , compared to vehicle control both at week 20 ( p=0.05 ) and over the whole period of 20 weeks ( p=0.04 ) . step trial on january 13 , 2014 , we announced the first patient injection in the phase iii clinical trial of ampion™ for the treatment of osteoarthritis of the knee . the phase iii step study enrolled 538 patients and the primary endpoint was reduction in pain for patients treated with ampion™ compared to vehicle control at 12 weeks . step was a randomized , placebo-controlled , double-blind study in which patients with osteoarthritis knee pain were randomized to receive either a 4 ml single injection of ampion™ or saline control . the clinical effects of treatment on osteoarthritic pain were evaluated during clinic visits at 6 , 12 , and 20 weeks using womac osteoarthritis index and the patient global assessment . safety was assessed by recording adverse events , concomitant medications , physical examination , vital signs and clinical laboratory tests . despite significant efforts that were successfully implemented in other studies , there was a break down in temperature management during the distribution process of the step study . based upon this deviation , the product efficacy data for the bla will be drawn from the spring and multiple injection studies . ongoing clinical trials strut trial on june 30 , 2014 , we announced the beginning of a multiple injection study , the strut study , at a single site for patients with mostly severe or very severe osteoarthritis of the knee . the study is comprised of two phases ; phase i is an open-label , 7 patient , single center trial to analyze the safety of 4ml multiple injections ( baseline , week 2 and week 4 ) and phase ii is a randomized , 40 patient , single center trial to analyze the efficacy and safety of multiple injections ( baseline , week 2 and week 4 ) . phase ii of the strut study would only commence after safety review of the phase i trial results at 4 weeks . on august 5 , 2014 , we reported no serious drug related adverse events were reported in phase i of the strut study and a 65 % improvement in pain ( womac a pain subscore improved from 2.2 ( 0.55 ) to 0.8 ( 0.62 ) , mean difference 1.43 ( 0.406 ) p=0.001 ) was observed at one month post-injection . in addition , the function score of womac c improved by 74 % compared to baseline at 4 weeks . with these positive results , ampio proceeded with the randomized phase ii portion of the strut study . on october 16 , 2014 we announced that enrollment was complete for phase ii of the strut study . on december 1 , 2014 , we announced the results from the phase i open label portion of the study at 20 weeks . the primary endpoint , womac a pain score , improved by 91.2 % from baseline to 20 weeks in the phase i open label portion of the study . additionally , the womac a mean ( sd ) significantly improved from 2.27 ( 0.59 ) at baseline , to 0.20 ( 0.23 ) at week 20 , mean difference ( 95 % ci ) -2.03 ( -2.83 , -1.23 ) , p=0.001 . the secondary endpoint measurement of stiffness , also improved significantly by 87 % from baseline at week 20 from mean ( sd ) of 2.75 ( 0.82 ) to 0.36 ( 0.48 ) , mean difference ( 95 % ci ) –2.33 ( -3.51 , -1.15 ) p=0.004 . the secondary endpoint of a validated measure of simple daily physical functions improved by 91.3 % from baseline at week 20 .this improvement was statistically significant , going from 2.32 ( 0.60 ) at baseline to 0.20 ( 0.34 ) at week 20 ; mean ( 95 % ci ) improvement of –2.09 ( -2.96 , -1.21 ) , p=0.002 . the 20 week data collection point from the phase ii randomized portion of the strut study will be completed in the first quarter of 2015. stride trial on october 16 , 2014 , we announced treatment had begun in the randomized ( 1:1 ) , vehicle controlled , multiple injection ( 4ml at baseline , week 2 and week 4 ) , multi-center stride study with 320 patients . on november 12 , 2014 , we announced that 320 patients had been enrolled and received at least the first injection in the stride study . story_separator_special_tag non-controlling interest in consolidated financial statements non-controlling interest is calculated based upon the investment made in the subsidiary and the percentage of ownership that investment gives the parent . non-controlling interest is reflected under equity . newly issued accounting pronouncements in may 2014 , the financial accounting standards board ( “fasb” ) issued accounting standards update ( “asu” ) 2014-09 regarding accounting standards codification ( “asc” ) topic 606 , “revenue from contracts with customers” . the standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services . the guidance will be effective for our fiscal year beginning january 1 , 2017. early adoption is not permitted . we are currently evaluating the accounting , transition and disclosure requirements of the standard and can not currently estimate the financial statement impact of adoption . in june 2014 , the fasb issued asu 2014-10 , “development stage entities ( topic 915 ) ” . the guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from gaap for development stage entities , primarily presentation of inception to date financial statements . the provisions of the amendments are effective for ampio 's calendar year 2015 ; however , early adoption is permitted and , accordingly , we elected to implement the guidance for our 2014 financial statements . in august 2014 , the fasb issued asu 2014-15 , “presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern” ( “asu 2014-15” ) . asu 2014-15 is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to continue as a going concern and to provide related footnote disclosures . the amendments in this asu are effective for reporting periods beginning after december 15 , 2016 , with early adoption permitted . management is currently assessing the impact the adoption of asu 2014-15 will have on our financial statements . in january 2015 , the fasb issued asu 2015-01 , “extraordinary and unusual items ( subtopic 225-20 ) : simplifying income statement presentation by eliminating the concept of extraordinary items.” the purpose of this amendment is to eliminate the concept of extraordinary items . as a result , an entity will no longer be required to separately classify , present and disclose extraordinary events and transactions . the amendment is effective for annual reporting periods beginning after december 15 , 2015 and subsequent interim periods with early application permitted . management is currently assessing the impact the adoption of asu 2015-01 will have on our financial statements . error in classification patent costs were previously classified as research and development , however , it was determined that these costs were incorrectly classified and , therefore , have been reclassified as general and administrative expense for all periods presented . patent costs consist of legal and filing fees related to obtaining and maintaining patents and should have been excluded from research and development activities as set forth in the fasb 's accounting standards codification topic 730 , “research and development” . the impact of the correction of this error in classification decreased research and development expenses and correspondingly increased general and administrative expenses for the years ended december 31 , 2013 and 2012 by $ 1.7 million and $ 1.4 million , respectively . the correction of this error had no impact on our total operating expenses or our net loss for any periods presented . results of operations—year ended december 31 , 2014 , 2013 and 2012 see notes to consolidated financial statements results of operations for the years ended december 31 , 2014 , 2013 and 2012 reflected losses of $ 38.1 million , $ 24.0 million and $ 11.6 million , respectively . these losses include non-cash charges related to stock-based compensation , depreciation and amortization expense , amortization of prepaid research and development-related party , common stock issued for services , derivative expense ( income ) , and loss on disposal of fixed assets totaling $ 8.6 million , $ 4.2 million and $ 1.5 million in 2014 , 2013 and 2012 respectively . based upon the stock options that have been issued in 2014 and 2013 , we would expect to continue to be above $ 5.0 million for stock compensation in 2015. we would also expect to see depreciation and amortization or prepaid research and development to increase in 2015 compared to 2014 as more assets start to depreciate in 2015 from our build out of the manufacturing facility and the full year of amortization of prepaid research and development . revenue we have not generated material revenue in our operating history . the $ 77,000 , $ 50,000 and $ 50,000 license revenue recognized during 2014 , 2013 and 2012 , respectively , represents the amortization of the upfront payments received on our license agreements . from an agreement entered into in 2012 , the initial payment of $ 500,000 from the license agreement of zertane with a korean pharmaceutical company was deferred and is being recognized over 10 years . as well as from an agreement entered into in 2014 with a canadian-based supplier , the initial payment of $ 250,000 from the license agreement of zertane was deferred and is being recognized over seven years . 43 expenses research and development research and development costs consist of labor , stock-based compensation , clinical trials and sponsored research , consultants and sponsored research – related party . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended december 31 , 2014 and 2013 research and development expenses increased $ 10,327,000 , or 62 % , in 2014

net cash used in operating activities during 2014 , our operating activities used $ 30.7 million in cash . the use of cash was $ 8.3 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization . cash provided in operating activities also included a $ 1,020,000 increase in accounts payable and $ 721,000 increase in deferred rent which were offset by increased prepaid research and development related party of $ 1,340,000 and prepaid expense of $ 541,000. during 2013 , our operating activities used approximately $ 19.1 million in cash . the use of cash was $ 5.4 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization , derivative expense and non-cash deferred revenue . net cash provided in operating activities also included a $ 522,000 increase in accrued compensation and $ 699,000 increase in accounts payable . during 2012 our operating activities used approximately $ 9.7 million in cash . the use of cash was $ 1.9 million lower than the net loss due to non-cash charges for stock-based compensation , depreciation and amortization and also non-cash deferred revenue and derivative income . net cash used in operating activities also included a $ 122,000 increase in prepaid expenses and cash provided by a $ 571,000 increase in accounts payable . net cash used in investing activities during 2014 , cash was used to acquire fixed assets which consists of the purchase of machinery and build out related to the in process manufacturing facility/clean room . during 2013 , cash was used to acquire orp patents on behalf of luoxis – see note 3 – formation of subsidiaries . fixed assets reflect purchases of machinery related to the in process manufacturing facility/clean room , a new server , a lab scope and a luoxis orp manufacturing device . during 2012 , cash was used for the payment of a deposit for our prior facility lease .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash used in operating activities during 2014 , our operating activities used $ 30.7 million in cash . the use of cash was $ 8.3 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization . cash provided in operating activities also included a $ 1,020,000 increase in accounts payable and $ 721,000 increase in deferred rent which were offset by increased prepaid research and development related party of $ 1,340,000 and prepaid expense of $ 541,000. during 2013 , our operating activities used approximately $ 19.1 million in cash . the use of cash was $ 5.4 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization , derivative expense and non-cash deferred revenue . net cash provided in operating activities also included a $ 522,000 increase in accrued compensation and $ 699,000 increase in accounts payable . during 2012 our operating activities used approximately $ 9.7 million in cash . the use of cash was $ 1.9 million lower than the net loss due to non-cash charges for stock-based compensation , depreciation and amortization and also non-cash deferred revenue and derivative income . net cash used in operating activities also included a $ 122,000 increase in prepaid expenses and cash provided by a $ 571,000 increase in accounts payable . net cash used in investing activities during 2014 , cash was used to acquire fixed assets which consists of the purchase of machinery and build out related to the in process manufacturing facility/clean room . during 2013 , cash was used to acquire orp patents on behalf of luoxis – see note 3 – formation of subsidiaries . fixed assets reflect purchases of machinery related to the in process manufacturing facility/clean room , a new server , a lab scope and a luoxis orp manufacturing device . during 2012 , cash was used for the payment of a deposit for our prior facility lease . ``` Suspicious Activity Report : due to the robust results at week 12 , we decided to amend the protocol to include an ad hoc visit at 20 weeks and called all subjects to come back in for a visit ; 97 patients returned . at week twenty , 50 % of patients in the kellgren-lawrence grades of 3 and 4 ( severe osteoarthritis ) had improvement of 40 % or more in the womac a pain scale compared to 25 % in the vehicle control group ( p=0.04 ) . patients were also classified as “responders” if they achieved 40 % or greater improvement in pain , womac a , and function , womac c , at and over 20 weeks after a single intra-articular injection into the knee . in these same grade 3 and 4 patients , there was a statistically significant improvement in pain , womac a , compared to the vehicle control both at week 20 ( p=0.02 ) and over the whole period of 20 weeks ( p=0.005 ) . also in these same grade 3 and 4 patients , there was a statistically significant improvement in function , womac c , compared to vehicle control both at week 20 ( p=0.05 ) and over the whole period of 20 weeks ( p=0.04 ) . step trial on january 13 , 2014 , we announced the first patient injection in the phase iii clinical trial of ampion™ for the treatment of osteoarthritis of the knee . the phase iii step study enrolled 538 patients and the primary endpoint was reduction in pain for patients treated with ampion™ compared to vehicle control at 12 weeks . step was a randomized , placebo-controlled , double-blind study in which patients with osteoarthritis knee pain were randomized to receive either a 4 ml single injection of ampion™ or saline control . the clinical effects of treatment on osteoarthritic pain were evaluated during clinic visits at 6 , 12 , and 20 weeks using womac osteoarthritis index and the patient global assessment . safety was assessed by recording adverse events , concomitant medications , physical examination , vital signs and clinical laboratory tests . despite significant efforts that were successfully implemented in other studies , there was a break down in temperature management during the distribution process of the step study . based upon this deviation , the product efficacy data for the bla will be drawn from the spring and multiple injection studies . ongoing clinical trials strut trial on june 30 , 2014 , we announced the beginning of a multiple injection study , the strut study , at a single site for patients with mostly severe or very severe osteoarthritis of the knee . the study is comprised of two phases ; phase i is an open-label , 7 patient , single center trial to analyze the safety of 4ml multiple injections ( baseline , week 2 and week 4 ) and phase ii is a randomized , 40 patient , single center trial to analyze the efficacy and safety of multiple injections ( baseline , week 2 and week 4 ) . phase ii of the strut study would only commence after safety review of the phase i trial results at 4 weeks . on august 5 , 2014 , we reported no serious drug related adverse events were reported in phase i of the strut study and a 65 % improvement in pain ( womac a pain subscore improved from 2.2 ( 0.55 ) to 0.8 ( 0.62 ) , mean difference 1.43 ( 0.406 ) p=0.001 ) was observed at one month post-injection . in addition , the function score of womac c improved by 74 % compared to baseline at 4 weeks . with these positive results , ampio proceeded with the randomized phase ii portion of the strut study . on october 16 , 2014 we announced that enrollment was complete for phase ii of the strut study . on december 1 , 2014 , we announced the results from the phase i open label portion of the study at 20 weeks . the primary endpoint , womac a pain score , improved by 91.2 % from baseline to 20 weeks in the phase i open label portion of the study . additionally , the womac a mean ( sd ) significantly improved from 2.27 ( 0.59 ) at baseline , to 0.20 ( 0.23 ) at week 20 , mean difference ( 95 % ci ) -2.03 ( -2.83 , -1.23 ) , p=0.001 . the secondary endpoint measurement of stiffness , also improved significantly by 87 % from baseline at week 20 from mean ( sd ) of 2.75 ( 0.82 ) to 0.36 ( 0.48 ) , mean difference ( 95 % ci ) –2.33 ( -3.51 , -1.15 ) p=0.004 . the secondary endpoint of a validated measure of simple daily physical functions improved by 91.3 % from baseline at week 20 .this improvement was statistically significant , going from 2.32 ( 0.60 ) at baseline to 0.20 ( 0.34 ) at week 20 ; mean ( 95 % ci ) improvement of –2.09 ( -2.96 , -1.21 ) , p=0.002 . the 20 week data collection point from the phase ii randomized portion of the strut study will be completed in the first quarter of 2015. stride trial on october 16 , 2014 , we announced treatment had begun in the randomized ( 1:1 ) , vehicle controlled , multiple injection ( 4ml at baseline , week 2 and week 4 ) , multi-center stride study with 320 patients . on november 12 , 2014 , we announced that 320 patients had been enrolled and received at least the first injection in the stride study . story_separator_special_tag non-controlling interest in consolidated financial statements non-controlling interest is calculated based upon the investment made in the subsidiary and the percentage of ownership that investment gives the parent . non-controlling interest is reflected under equity . newly issued accounting pronouncements in may 2014 , the financial accounting standards board ( “fasb” ) issued accounting standards update ( “asu” ) 2014-09 regarding accounting standards codification ( “asc” ) topic 606 , “revenue from contracts with customers” . the standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services . the guidance will be effective for our fiscal year beginning january 1 , 2017. early adoption is not permitted . we are currently evaluating the accounting , transition and disclosure requirements of the standard and can not currently estimate the financial statement impact of adoption . in june 2014 , the fasb issued asu 2014-10 , “development stage entities ( topic 915 ) ” . the guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from gaap for development stage entities , primarily presentation of inception to date financial statements . the provisions of the amendments are effective for ampio 's calendar year 2015 ; however , early adoption is permitted and , accordingly , we elected to implement the guidance for our 2014 financial statements . in august 2014 , the fasb issued asu 2014-15 , “presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern” ( “asu 2014-15” ) . asu 2014-15 is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to continue as a going concern and to provide related footnote disclosures . the amendments in this asu are effective for reporting periods beginning after december 15 , 2016 , with early adoption permitted . management is currently assessing the impact the adoption of asu 2014-15 will have on our financial statements . in january 2015 , the fasb issued asu 2015-01 , “extraordinary and unusual items ( subtopic 225-20 ) : simplifying income statement presentation by eliminating the concept of extraordinary items.” the purpose of this amendment is to eliminate the concept of extraordinary items . as a result , an entity will no longer be required to separately classify , present and disclose extraordinary events and transactions . the amendment is effective for annual reporting periods beginning after december 15 , 2015 and subsequent interim periods with early application permitted . management is currently assessing the impact the adoption of asu 2015-01 will have on our financial statements . error in classification patent costs were previously classified as research and development , however , it was determined that these costs were incorrectly classified and , therefore , have been reclassified as general and administrative expense for all periods presented . patent costs consist of legal and filing fees related to obtaining and maintaining patents and should have been excluded from research and development activities as set forth in the fasb 's accounting standards codification topic 730 , “research and development” . the impact of the correction of this error in classification decreased research and development expenses and correspondingly increased general and administrative expenses for the years ended december 31 , 2013 and 2012 by $ 1.7 million and $ 1.4 million , respectively . the correction of this error had no impact on our total operating expenses or our net loss for any periods presented . results of operations—year ended december 31 , 2014 , 2013 and 2012 see notes to consolidated financial statements results of operations for the years ended december 31 , 2014 , 2013 and 2012 reflected losses of $ 38.1 million , $ 24.0 million and $ 11.6 million , respectively . these losses include non-cash charges related to stock-based compensation , depreciation and amortization expense , amortization of prepaid research and development-related party , common stock issued for services , derivative expense ( income ) , and loss on disposal of fixed assets totaling $ 8.6 million , $ 4.2 million and $ 1.5 million in 2014 , 2013 and 2012 respectively . based upon the stock options that have been issued in 2014 and 2013 , we would expect to continue to be above $ 5.0 million for stock compensation in 2015. we would also expect to see depreciation and amortization or prepaid research and development to increase in 2015 compared to 2014 as more assets start to depreciate in 2015 from our build out of the manufacturing facility and the full year of amortization of prepaid research and development . revenue we have not generated material revenue in our operating history . the $ 77,000 , $ 50,000 and $ 50,000 license revenue recognized during 2014 , 2013 and 2012 , respectively , represents the amortization of the upfront payments received on our license agreements . from an agreement entered into in 2012 , the initial payment of $ 500,000 from the license agreement of zertane with a korean pharmaceutical company was deferred and is being recognized over 10 years . as well as from an agreement entered into in 2014 with a canadian-based supplier , the initial payment of $ 250,000 from the license agreement of zertane was deferred and is being recognized over seven years . 43 expenses research and development research and development costs consist of labor , stock-based compensation , clinical trials and sponsored research , consultants and sponsored research – related party . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended december 31 , 2014 and 2013 research and development expenses increased $ 10,327,000 , or 62 % , in 2014

as a result of this specific allegation , the uprr has informed the company that they currently intend to remove approximately 115,000 ties from track , which are a subset of ties subject to the july 12 , 2011 claim . we are reviewing this claim and , while our review is not complete , we continue to believe that these ties do not have a material deviation from our contractual specifications . we expect that the testing required to address this product specification issue will be completed sometime during the latter part of the second quarter of 2012 ; however , we expect that we will continue to work collaboratively with the uprr to address their overall product claim for some time to come . on january 11 , 2012 , cxt received a subpoena from the united states department of transportation inspector general ( “ ig ” ) requesting records related to its manufacture of concrete railroad ties in grand island , nebraska . we believe that this subpoena relates to the same set of circumstances giving rise to the uprr product claim . cxt and the company intend to cooperate fully with the ig . we can not predict what impact , if any , this investigation will have on the uprr 's product claim . based on the non-specific nature of the uprr 's assertion and our current inability to verify the claims , we are unable to determine a range of reasonably possible outcomes regarding this potential exposure matter . as a result , no accruals were made as a result of this claim as the impact , if any , can not be reasonably estimated at this time . no assurances can be given regarding the ultimate outcome of this matter . the ultimate resolution of this matter could have a material , adverse impact on our financial statements , results of operations , liquidity and capital resources . portec acquisition included in our 2011 rail products segment are the results of operations for our portec subsidiary . we acquired portec on december 15 , 2010 for approximately $ 113.3 million in cash . portec reported net sales of $ 106.1 million , gross profit of $ 36.0 million , total expenses of $ 25.3 million and net income of $ 8.6 million for the year ended december 31 , 2011. the 2010 acquisition period consisted of approximately two weeks from the acquisition date through december 31 , 2010. therefore , the results of operations portion of management 's discussion and analysis of financial condition and results of operations will not include a substantive comparison of the portec results . portec contributed $ 4.8 million in net sales , $ 0.6 million in gross profit and a net loss of $ ( 0.2 ) million in the two week period from the acquisition date through december 31 , 2010. other matters we recorded incremental warranty charges of approximately $ 1.8 million during the 2011 fourth quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim dated july 12 , 2011. these charges were recorded within cost of goods sold and reported through our rail products segment . during 2011 , we provided the lessor of our houston , tx property with written notice of our termination of the lease in its entirety effective april 30 , 2012. as a result of this termination , we recognized $ 577,000 of previously deferred gain . at december 31 , 2011 , approximately $ 457,000 of unrecognized deferred gain is being amortized over the remaining life of the lease . general l.b . foster company is a leading manufacturer , fabricator and distributor of products and services for the rail , construction , energy and utility markets . the company is comprised of three business segments : rail products , construction products and tubular products . 22 rail products the rail products segment is composed of several manufacturing and distribution businesses that provide a variety of products for railroads , transit authorities , industrial companies and mining applications throughout north america and the united kingdom . rail products has sales offices throughout the united states , canada and the united kingdom and frequently bids on rail projects where it can offer products manufactured by the company or sourced from numerous suppliers . these products may be provided as a package to rail lines , transit authorities and construction contractors which reduces the customer 's procurement efforts and provides value added , just in time delivery . the rail products segment designs and manufactures bonded insulated rail joints , cuts and drills rail and manufactures concrete cross ties and turnout ties . the company has concrete tie manufacturing facilities in spokane , wa and tucson , az . the company also has two facilities that design , test and fabricate rail products in atlanta , ga and niles , oh . through our portec subsidiary , we engineer , manufacture and assemble friction management products , railway wayside data collection and management systems and engineer and sell securement systems and related products . the rail distribution business provides our customers with access to a variety of products including stick rail , continuous welded rail , specialty trackwork , power rail and various rail accessories . this is a highly competitive business that , once specifications are met , depends heavily on pricing . the company maintains relationships with several rail manufacturers but procures the majority of the rail it distributes from one supplier . rail accessories are sourced from a wide variety of suppliers . construction products the construction products segment is composed of the following business units : piling , fabricated products , and precast concrete buildings . story_separator_special_tag this similar adjustment for lifo reserve requirements had a positive impact for the prior year period . 28 the addition of portec resulted in increased selling and administrative expenses of approximately $ 4.9 million . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 0.2 million due mainly to approximately $ 1.4 million in testing expenses for material scientists and prestressed concrete experts related to the uprr product warranty claim . as a result of the acquisition of portec , amortization expense increased by approximately $ 0.4 million and we recognized increased transactional foreign exchange losses for the three months ended december 31 , 2011 primarily related to fluctuations in the exchange rates between the canadian dollar and the united states dollar . also , we recognized more previously deferred gains associated with the early termination of a lease for our threaded products facility in houston , tx . finally , having a positive impact in the 2010 fourth quarter was the recognition of a $ 1.4 million pre-tax gain associated with the remeasurement of our holding of portec equity securities prior to our december 15 , 2010 acquisition . the effective income tax rate in the fourth quarter of 2011 was 36.0 % compared to 41.2 % in the prior year quarter . the decrease was primarily due to lower statutory tax rates related to the foreign operations acquired in the portec business combination . results of operations – segment analysis rail products replace_table_token_10_th fourth quarter 2011 compared to fourth quarter 2010 exclusive of the impact of portec ( $ 23.1 million ) , our rail products segment 2011 sales decreased approximately $ 10.6 million from the 2010 fourth quarter . while our operational tie plants both experienced concrete tie volume increases in the current quarter , they did not overcome the loss of sales from the closure of our grand island , ne facility . additionally , our rail distribution business experienced a reduction in volumes sold , primarily from our decision to deemphasize the relay rail business . the 2010 quarter also included a large new rail project which was completed prior to the 2011 quarter . portec delivered approximately $ 10.2 million in gross profit increases , while foster rail gross profit decreased by $ 1.0 million . exclusive of the impact of portec , our rail products gross profit margin would have increased approximately 70 basis points as compared to the 2010 quarter . our transit products division drove this 2011 increase due mainly to product mix compared to the prior year quarter . additionally , while our rail distribution business had reduced volumes , offsetting this were price increases which delivered gross profit margin expansion over the prior year period . mitigating these favorable improvements were the adverse cost of sales charges recorded by cxt . mainly related to our now closed grand island , ne facility , this division recorded additional concrete tie warranty charges of approximately $ 1.8 million in the 2011 quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim described previously . 29 construction products replace_table_token_11_th fourth quarter 2011 compared to fourth quarter 2010 our construction products backlog has been approximately 30-35 % lower over the last few quarters . additionally , new orders in the 2011 fourth quarter have decreased approximately 26.2 % from the 2010 period . these cumulative effects have resulted in negative impacts on sales and gross profit in the current quarter . the 2011 fourth quarter sales were negatively impacted by lower piling volumes and , to a lesser extent , lower concrete buildings volumes . the loss of federal stimulus spending led to more normalized sales of concrete buildings , a decrease of approximately 48 % over the 2010 quarter . product mix within our piling division had an unfavorable impact on the prior year quarter , but drove the overall increase in gross profit margin for the segment in 2011. this margin increase , albeit over decreased volumes , fully offset margin declines in our concrete buildings division due to increased unfavorable manufacturing variances resulting from reduced sales volumes . tubular products replace_table_token_12_th fourth quarter 2011 compared to fourth quarter 2010 the improvement in the 2011 quarter was driven by our coated pipe division . increased sales volumes allowed us to leverage plant and other operating efficiencies in the 2011 quarter . our threaded products division sales and gross profit were flat with the prior year period , however gross profit margin was negatively impacted by expenses associated with moving the threading operation from houston , tx to magnolia , tx . 30 year-to-date results of operations replace_table_token_13_th the year 2011 compared to the year 2010 – company analysis diluted earnings per share for 2011 were $ 2.22 which compares favorably to diluted earnings per share of $ 1.98 for 2010. gross profit increased due to the inclusion of portec 's results for the full year in 2011 , partially offset by significantly reduced gross profits at our concrete buildings division and also to the charges taken related to our grand island concrete tie manufacturing facility . 31 approximately $ 22.1 million of the increase in selling and administrative expenses relates to portec . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 3.0 million due primarily to higher outside services expenses ( $ 2.0 million ) and higher salaries ( $ 1.0 million ) . we recognized approximately $ 1.4 million for testing expenses associated with the uprr product warranty claim , $ 1.5 million in portec integration costs and $ 0.5 million associated with other outside service providers in 2011. these increased expenses offset the elimination of the approximately $ 2.4 million

cash flow from investing activities the final cash payment of $ 9.0 million associated with our acquisition of portec was paid in january 2011. we incurred capital expenditures of $ 11.9 million in 2011 primarily for a new threading facility in magnolia , tx , a new facility for our kelsan friction management business in vancouver , british columbia , canada , plant and yard upgrades and information technology infrastructure . also , we contributed an additional $ 0.8 million to our joint venture under the amended agreement . we expect to generate cash flows from operations in 2012 in excess of capital expenditures , scheduled debt service payments , share repurchases and dividends . investing activities used $ 87.6 million during 2010 primarily from our acquisitions of portec and idsi , net of portec cash acquired . capital expenditures totaled $ 6.2 million . also , we contributed an additional $ 0.8 million to our joint venture . these uses were partially offset by the receipt of $ 10.2 million in proceeds related to the united states department of justice required divestiture of the portec rail joint business . investing activities used $ 5.4 million during 2009 primarily from capital expenditures totaling $ 6.1 million . also , our capital contributions to our newly formed corporate joint venture used $ 1.4 million in 2009. these uses were partially offset by $ 2.1 million in proceeds provided by the sale of a portion of our investment in marketable securities . capital spending during 2009 was primarily for the acquisition of land and construction of a building that will be leased to our joint venture .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 the final cash payment of $ 9.0 million associated with our acquisition of portec was paid in january 2011. we incurred capital expenditures of $ 11.9 million in 2011 primarily for a new threading facility in magnolia , tx , a new facility for our kelsan friction management business in vancouver , british columbia , canada , plant and yard upgrades and information technology infrastructure . also , we contributed an additional $ 0.8 million to our joint venture under the amended agreement . we expect to generate cash flows from operations in 2012 in excess of capital expenditures , scheduled debt service payments , share repurchases and dividends . investing activities used $ 87.6 million during 2010 primarily from our acquisitions of portec and idsi , net of portec cash acquired . capital expenditures totaled $ 6.2 million . also , we contributed an additional $ 0.8 million to our joint venture . these uses were partially offset by the receipt of $ 10.2 million in proceeds related to the united states department of justice required divestiture of the portec rail joint business . investing activities used $ 5.4 million during 2009 primarily from capital expenditures totaling $ 6.1 million . also , our capital contributions to our newly formed corporate joint venture used $ 1.4 million in 2009. these uses were partially offset by $ 2.1 million in proceeds provided by the sale of a portion of our investment in marketable securities . capital spending during 2009 was primarily for the acquisition of land and construction of a building that will be leased to our joint venture . ``` Suspicious Activity Report : as a result of this specific allegation , the uprr has informed the company that they currently intend to remove approximately 115,000 ties from track , which are a subset of ties subject to the july 12 , 2011 claim . we are reviewing this claim and , while our review is not complete , we continue to believe that these ties do not have a material deviation from our contractual specifications . we expect that the testing required to address this product specification issue will be completed sometime during the latter part of the second quarter of 2012 ; however , we expect that we will continue to work collaboratively with the uprr to address their overall product claim for some time to come . on january 11 , 2012 , cxt received a subpoena from the united states department of transportation inspector general ( “ ig ” ) requesting records related to its manufacture of concrete railroad ties in grand island , nebraska . we believe that this subpoena relates to the same set of circumstances giving rise to the uprr product claim . cxt and the company intend to cooperate fully with the ig . we can not predict what impact , if any , this investigation will have on the uprr 's product claim . based on the non-specific nature of the uprr 's assertion and our current inability to verify the claims , we are unable to determine a range of reasonably possible outcomes regarding this potential exposure matter . as a result , no accruals were made as a result of this claim as the impact , if any , can not be reasonably estimated at this time . no assurances can be given regarding the ultimate outcome of this matter . the ultimate resolution of this matter could have a material , adverse impact on our financial statements , results of operations , liquidity and capital resources . portec acquisition included in our 2011 rail products segment are the results of operations for our portec subsidiary . we acquired portec on december 15 , 2010 for approximately $ 113.3 million in cash . portec reported net sales of $ 106.1 million , gross profit of $ 36.0 million , total expenses of $ 25.3 million and net income of $ 8.6 million for the year ended december 31 , 2011. the 2010 acquisition period consisted of approximately two weeks from the acquisition date through december 31 , 2010. therefore , the results of operations portion of management 's discussion and analysis of financial condition and results of operations will not include a substantive comparison of the portec results . portec contributed $ 4.8 million in net sales , $ 0.6 million in gross profit and a net loss of $ ( 0.2 ) million in the two week period from the acquisition date through december 31 , 2010. other matters we recorded incremental warranty charges of approximately $ 1.8 million during the 2011 fourth quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim dated july 12 , 2011. these charges were recorded within cost of goods sold and reported through our rail products segment . during 2011 , we provided the lessor of our houston , tx property with written notice of our termination of the lease in its entirety effective april 30 , 2012. as a result of this termination , we recognized $ 577,000 of previously deferred gain . at december 31 , 2011 , approximately $ 457,000 of unrecognized deferred gain is being amortized over the remaining life of the lease . general l.b . foster company is a leading manufacturer , fabricator and distributor of products and services for the rail , construction , energy and utility markets . the company is comprised of three business segments : rail products , construction products and tubular products . 22 rail products the rail products segment is composed of several manufacturing and distribution businesses that provide a variety of products for railroads , transit authorities , industrial companies and mining applications throughout north america and the united kingdom . rail products has sales offices throughout the united states , canada and the united kingdom and frequently bids on rail projects where it can offer products manufactured by the company or sourced from numerous suppliers . these products may be provided as a package to rail lines , transit authorities and construction contractors which reduces the customer 's procurement efforts and provides value added , just in time delivery . the rail products segment designs and manufactures bonded insulated rail joints , cuts and drills rail and manufactures concrete cross ties and turnout ties . the company has concrete tie manufacturing facilities in spokane , wa and tucson , az . the company also has two facilities that design , test and fabricate rail products in atlanta , ga and niles , oh . through our portec subsidiary , we engineer , manufacture and assemble friction management products , railway wayside data collection and management systems and engineer and sell securement systems and related products . the rail distribution business provides our customers with access to a variety of products including stick rail , continuous welded rail , specialty trackwork , power rail and various rail accessories . this is a highly competitive business that , once specifications are met , depends heavily on pricing . the company maintains relationships with several rail manufacturers but procures the majority of the rail it distributes from one supplier . rail accessories are sourced from a wide variety of suppliers . construction products the construction products segment is composed of the following business units : piling , fabricated products , and precast concrete buildings . story_separator_special_tag this similar adjustment for lifo reserve requirements had a positive impact for the prior year period . 28 the addition of portec resulted in increased selling and administrative expenses of approximately $ 4.9 million . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 0.2 million due mainly to approximately $ 1.4 million in testing expenses for material scientists and prestressed concrete experts related to the uprr product warranty claim . as a result of the acquisition of portec , amortization expense increased by approximately $ 0.4 million and we recognized increased transactional foreign exchange losses for the three months ended december 31 , 2011 primarily related to fluctuations in the exchange rates between the canadian dollar and the united states dollar . also , we recognized more previously deferred gains associated with the early termination of a lease for our threaded products facility in houston , tx . finally , having a positive impact in the 2010 fourth quarter was the recognition of a $ 1.4 million pre-tax gain associated with the remeasurement of our holding of portec equity securities prior to our december 15 , 2010 acquisition . the effective income tax rate in the fourth quarter of 2011 was 36.0 % compared to 41.2 % in the prior year quarter . the decrease was primarily due to lower statutory tax rates related to the foreign operations acquired in the portec business combination . results of operations – segment analysis rail products replace_table_token_10_th fourth quarter 2011 compared to fourth quarter 2010 exclusive of the impact of portec ( $ 23.1 million ) , our rail products segment 2011 sales decreased approximately $ 10.6 million from the 2010 fourth quarter . while our operational tie plants both experienced concrete tie volume increases in the current quarter , they did not overcome the loss of sales from the closure of our grand island , ne facility . additionally , our rail distribution business experienced a reduction in volumes sold , primarily from our decision to deemphasize the relay rail business . the 2010 quarter also included a large new rail project which was completed prior to the 2011 quarter . portec delivered approximately $ 10.2 million in gross profit increases , while foster rail gross profit decreased by $ 1.0 million . exclusive of the impact of portec , our rail products gross profit margin would have increased approximately 70 basis points as compared to the 2010 quarter . our transit products division drove this 2011 increase due mainly to product mix compared to the prior year quarter . additionally , while our rail distribution business had reduced volumes , offsetting this were price increases which delivered gross profit margin expansion over the prior year period . mitigating these favorable improvements were the adverse cost of sales charges recorded by cxt . mainly related to our now closed grand island , ne facility , this division recorded additional concrete tie warranty charges of approximately $ 1.8 million in the 2011 quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim described previously . 29 construction products replace_table_token_11_th fourth quarter 2011 compared to fourth quarter 2010 our construction products backlog has been approximately 30-35 % lower over the last few quarters . additionally , new orders in the 2011 fourth quarter have decreased approximately 26.2 % from the 2010 period . these cumulative effects have resulted in negative impacts on sales and gross profit in the current quarter . the 2011 fourth quarter sales were negatively impacted by lower piling volumes and , to a lesser extent , lower concrete buildings volumes . the loss of federal stimulus spending led to more normalized sales of concrete buildings , a decrease of approximately 48 % over the 2010 quarter . product mix within our piling division had an unfavorable impact on the prior year quarter , but drove the overall increase in gross profit margin for the segment in 2011. this margin increase , albeit over decreased volumes , fully offset margin declines in our concrete buildings division due to increased unfavorable manufacturing variances resulting from reduced sales volumes . tubular products replace_table_token_12_th fourth quarter 2011 compared to fourth quarter 2010 the improvement in the 2011 quarter was driven by our coated pipe division . increased sales volumes allowed us to leverage plant and other operating efficiencies in the 2011 quarter . our threaded products division sales and gross profit were flat with the prior year period , however gross profit margin was negatively impacted by expenses associated with moving the threading operation from houston , tx to magnolia , tx . 30 year-to-date results of operations replace_table_token_13_th the year 2011 compared to the year 2010 – company analysis diluted earnings per share for 2011 were $ 2.22 which compares favorably to diluted earnings per share of $ 1.98 for 2010. gross profit increased due to the inclusion of portec 's results for the full year in 2011 , partially offset by significantly reduced gross profits at our concrete buildings division and also to the charges taken related to our grand island concrete tie manufacturing facility . 31 approximately $ 22.1 million of the increase in selling and administrative expenses relates to portec . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 3.0 million due primarily to higher outside services expenses ( $ 2.0 million ) and higher salaries ( $ 1.0 million ) . we recognized approximately $ 1.4 million for testing expenses associated with the uprr product warranty claim , $ 1.5 million in portec integration costs and $ 0.5 million associated with other outside service providers in 2011. these increased expenses offset the elimination of the approximately $ 2.4 million

ebitda and adjusted ebitda do not reflect our obligations for the payment of income taxes , interest expense or other obligations such as capital expenditures . accordingly , ebitda 24 index to financial statements and adjusted ebitda are only two of the measurements that management utilizes . other companies in our industry may calculate ebitda or adjusted ebitda differently than we do and ebitda and adjusted ebitda may not be comparable with similarly titled measures reported by other companies . ( 2 ) non-recurring contract settlement costs of approximately $ 2.1 million in 2016 include approximately $ 1.8 million of deferred cash payments and approximately $ 300,000 of stock based compensation . within our marine technology products segment , we design , manufacture and sell a variety of products used primarily in oceanographic , hydrographic , defense , seismic and maritime security industries . seamap 's primary products include the ( i ) gunlink and digishot seismic source acquisition and control systems , which provide marine operators more precise control of exploration tools ; and ( ii ) the buoylink rgps tracking system used to provide precise positioning of seismic sources and streamers ( marine recording channels that are towed behind a vessel ) . klein designs , manufactures and sells side scan sonar and water-side security systems to commercial , governmental and military customers throughout the world . sap sells equipment , consumable supplies , systems integration , engineering hardware and software maintenance support services to the seismic , hydrographic , oceanographic , environmental and defense industries throughout southeast asia and australia . in march 2018 , following the hydroscience acquisition , seamap introduced the sealink product line of marine sensor and solid streamer systems ( see note 20 - subsequent event to our consolidated financial statements ) . these towed streamer systems are primarily designed for three-dimensional , high-resolution marine surveys in hydrographic industry applications . in our equipment leasing segment , we lease seismic data acquisition equipment primarily to seismic data acquisition companies conducting land , transition zone and marine seismic surveys worldwide . we provide short-term leasing of seismic equipment to meet a customer 's requirements . all active leases at january 31 , 2018 were for a term of less than one year . seismic equipment held for lease is carried at cost , net of accumulated depreciation . we acquire some marine lease pool equipment from our marine technology products segment . these amounts are carried in our lease pool at the cost to our marine technology products segment , less accumulated depreciation . from time to time , we sell lease pool equipment . these sales are transacted when we have equipment for which we do not have near term needs in our leasing business or is otherwise considered excess . additionally , when equipment that has been leased to a customer is lost or destroyed , the customer is charged for such equipment at amounts specified in the underlying lease agreement . these charges are included in “ lease pool equipment sales ” in the accompanying financial statements . our results of operations can experience fluctuations in activity levels due to a number of factors outside of our control . these factors include budgetary or financial concerns , difficulties in obtaining licenses or permits , security issues , labor or political issues and weather issues . see item 1a- “ risk factors . ” business outlook prior to fiscal 2017 the majority of our revenues were generated by our equipment leasing segment . since fiscal 2017 we have seen a significant decline in revenues from leasing activity . this decline has been caused , we believe , by a number of factors including the following : a reduction in demand for seismic services brought about by reduced oil and gas exploration activities , which was in turn caused by lower prices for oil and gas and by excess inventories of those commodities . an excess of capacity in the seismic industry , specifically excess supplies of seismic equipment . technological advances which have reduced the cost of certain seismic equipment , therefore resulting in pressure on prices for the rental or sale of such equipment . increased competition among providers of seismic equipment . we believe that many of these factors will have a lasting effect on the seismic equipment industry . therefore , we believe that it unlikely that the results of our equipment leasing segment return to levels seen historically . accordingly , we have implemented a strategy to emphasize our marine technology products segment and to make certain changes in our equipment leasing segment . the vision statement for the company ( see “ item 1 - business ” ) was developed to serve as a guide for the new strategy . our strategy includes the following key points : increased emphasis on our marine technology products segment . we are expanding our product offerings with an emphasis on products and services that are not exclusively dependent upon oil and gas exploration activity . we expect new products and services to come from a combination of internally developed products and those acquired from third parties , such as the acquisition of klein in december 2015 and the new products introduced in march 2018 as discussed above . decrease capital deployed in lease pool . we expect our equipment leasing segment to remain an important component of our business ; however , we believe capital can in some cases be more efficiently deployed in other areas . we have in recent periods sold assets from the lease pool have used those proceeds to repay debt and invest in other operations . we also have limited investment in new lease pool assets in recent periods ; therefore , our investment in the lease pool has decreased significantly . we may , however , make additional lease pool investments in the future . story_separator_special_tag operating expenses selling , general and administrative expenses for fiscal 2018 amounted to approximately $ 19.7 million , compared to approximately $ 19.8 million and $ 18.0 million in fiscal 2017 and 2016 , respectively . in response to the continuing depressed environment in the seismic industry , particularly the land seismic industry , we have implemented a program to further reduce costs by scaling back or eliminating operations in certain areas . as a result of this we recorded a charge of approximately $ 400,000 in the fourth quarter of fiscal 2018 related to certain costs associated with this program . fiscal 2017 amounts reflect a full-year of activity related to klein , which we acquired effective december 31 , 2015. without this effect , general and administrative expenses would have declined approximately 2 % in fiscal 2017 as compared to fiscal 2016. the reductions in fiscal 2018 and 2017 , after taking into account the items discussed above , reflect various cost reduction activities implemented during that year in response to the general downturn in the company 's business . due to the decline in seismic exploration activity , we think it now more likely that certain of our customers will encounter financial difficulties and may be unable to fully satisfy their financial obligations to us . in fiscal 2018 we implemented a program to resolve certain long-outstanding accounts receivable by offering significant discounts in return for a cash settlement . therefore , in fiscal 2018 , 2017 and 2016 , we provided approximately $ 1.0 million , $ 750,000 and $ 2.2 million , respectively , for doubtful accounts . at january 31 , 2018 and 2017 , we had trade accounts and note receivables over 90 days past due of approximately $ 6.2 million and $ 11.7 million , respectively . in our industry , and in our experience , it is not unusual for accounts to become delinquent from time to time and this is not necessarily indicative of an account becoming uncollectable . as of january 31 , 2018 and 2017 , our allowance for doubtful accounts receivable amounted to approximately $ 6.2 million and $ 5.9 million , respectively . depreciation and amortization , other than lease pool depreciation , relates primarily to the depreciation of furniture , fixtures and office equipment and the amortization of intangible assets . the increase in depreciation and amortization expense in fiscal 2017 and 2016 relates to intangible assets acquired in december 2016 related to klein and may 2014 in connection with the ion product lines . we periodically evaluate the recoverability of our intangible assets , including goodwill . due to the shortfall in expected revenues from klein as discussed above and the inherent uncertainty in projections of future results , we determined to record an impairment charge of approximately $ 1.5 million , representing all goodwill related to klein . for 2017 , our evaluation did not give an indication of impairment . in fiscal 2016 , our evaluation did give an indication of impairment . as a result , we recorded an impairment charge of approximately $ 3.6 million in fiscal 2016. approximately $ 600,000 of this charge related to intangible assets associated with heli-picker assets acquired in fiscal 2011 and approximately $ 3.0 million related to goodwill associated with seamap . other income and expense interest income reflects amounts earned on invested funds and finance charges related to seismic equipment sold under financing arrangements . interest expense primarily reflects interest costs arising from borrowings under the credit agreement and the seamap credit facility ( both as defined below ) . interest expense decreased in fiscal 2018 and fiscal 2017 as compared to the prior fiscal years primarily due to lower average borrowings during those periods and the elimination of these obligations during fiscal 2018 . 29 index to financial statements other income and expense relates primarily to net foreign exchange losses and gains . these gains and losses resulted primarily from two situations . certain of our foreign operations have a functional currency of the u.s. dollar yet have cash , accounts receivable and accounts payable denominated in other currencies . these operations generally have net assets denominated in these other currencies . as the u.s. dollar strengthens against these other currencies , a foreign exchange loss arises and vice versa . in fiscal 2018 , 2017 and 2016 we recorded foreign exchange losses of approximately $ 844,000 and $ 72,000 and foreign exchange gains of approximately $ 1.3 million , respectively , related to these situations . in the second situation , certain of our foreign operations have a functional currency of the local currency yet have cash , accounts receivable and accounts payable denominated in the u.s. dollar . these operations generally have net liabilities denominated in u.s. dollars , including inter-company obligations . in fiscal 2018 we recognized approximately $ 169,000 of exchange gain of this type . in fiscal 2017 , we incurred approximately $ 339,000 of exchange gains of this type . in fiscal 2016 we incurred approximately $ 1.1 million of exchange losses of this type , primarily related to the strengthening of the u.s. dollar versus the russian ruble , australian dollar , british pound sterling and the canadian dollar . we believe gains and losses of this type are non-cash items and are considered in our calculation of adjusted ebitda . provision for income taxes our provision for income taxes in fiscal 2018 is approximately $ 910,000. this amount differs from that expected when applying the effective u.s. statutory rate of 32.9 % to our loss before income taxes due primarily to recording a valuation allowance against all of the fiscal 2018 increase in our deferred tax assets and the effect of foreign withholding and branch taxes . recently enacted changes to tax laws in the united states , including a reduction in the corporate tax rate and the manner in which earnings from foreign

liquidity and capital resources our principal source of liquidity and capital over the past three fiscal years has been cash flows provided by operating activities , proceeds from the issuance of preferred stock , the credit agreement and the seamap credit facility . the principal factor that has affected our cash flow from operating activities is the level of oil and gas exploration and development activities as discussed above . we believe that our liquidity needs for the next 12 months will be met from cash on hand , cash provided by operating activities , proceeds from the sale of lease pool equipment and from proceeds from the issuance of additional shares of preferred stock , taking into account the possible restrictions on funds from our foreign subsidiaries . on august 2 , 2013 , we entered into a syndicated $ 50 million , secured , three-year revolving credit agreement ( the “ credit agreement ” ) with hsbc bank usa , n.a as administrative agent , and on august 22 , 2014 , seamap singapore entered into a $ 15.0 million credit facility ( the “ seamap credit facility ” ) with the hongkong and shanghai banking corporation limited . in march 2017 , we repaid all outstanding obligations under the credit agreement and terminated that agreement . also , on april 5 , 2017 , we repaid all outstanding obligations under the seamap credit facility and cancelled that facility . we are engaged in discussions with other commercial banks regarding establishing a new revolving credit facility or facilities . there can be no assurance , however , that we will be successful in negotiating any such facilities . accordingly , we currently do not plan to rely upon proceeds from revolving credit facilities to meet our liquidity and capital needs . in june 2016 , we completed an offering of 9.00 % cumulative preferred stock ( the “ series a preferred 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 our principal source of liquidity and capital over the past three fiscal years has been cash flows provided by operating activities , proceeds from the issuance of preferred stock , the credit agreement and the seamap credit facility . the principal factor that has affected our cash flow from operating activities is the level of oil and gas exploration and development activities as discussed above . we believe that our liquidity needs for the next 12 months will be met from cash on hand , cash provided by operating activities , proceeds from the sale of lease pool equipment and from proceeds from the issuance of additional shares of preferred stock , taking into account the possible restrictions on funds from our foreign subsidiaries . on august 2 , 2013 , we entered into a syndicated $ 50 million , secured , three-year revolving credit agreement ( the “ credit agreement ” ) with hsbc bank usa , n.a as administrative agent , and on august 22 , 2014 , seamap singapore entered into a $ 15.0 million credit facility ( the “ seamap credit facility ” ) with the hongkong and shanghai banking corporation limited . in march 2017 , we repaid all outstanding obligations under the credit agreement and terminated that agreement . also , on april 5 , 2017 , we repaid all outstanding obligations under the seamap credit facility and cancelled that facility . we are engaged in discussions with other commercial banks regarding establishing a new revolving credit facility or facilities . there can be no assurance , however , that we will be successful in negotiating any such facilities . accordingly , we currently do not plan to rely upon proceeds from revolving credit facilities to meet our liquidity and capital needs . in june 2016 , we completed an offering of 9.00 % cumulative preferred stock ( the “ series a preferred stock ” ) . ``` Suspicious Activity Report : ebitda and adjusted ebitda do not reflect our obligations for the payment of income taxes , interest expense or other obligations such as capital expenditures . accordingly , ebitda 24 index to financial statements and adjusted ebitda are only two of the measurements that management utilizes . other companies in our industry may calculate ebitda or adjusted ebitda differently than we do and ebitda and adjusted ebitda may not be comparable with similarly titled measures reported by other companies . ( 2 ) non-recurring contract settlement costs of approximately $ 2.1 million in 2016 include approximately $ 1.8 million of deferred cash payments and approximately $ 300,000 of stock based compensation . within our marine technology products segment , we design , manufacture and sell a variety of products used primarily in oceanographic , hydrographic , defense , seismic and maritime security industries . seamap 's primary products include the ( i ) gunlink and digishot seismic source acquisition and control systems , which provide marine operators more precise control of exploration tools ; and ( ii ) the buoylink rgps tracking system used to provide precise positioning of seismic sources and streamers ( marine recording channels that are towed behind a vessel ) . klein designs , manufactures and sells side scan sonar and water-side security systems to commercial , governmental and military customers throughout the world . sap sells equipment , consumable supplies , systems integration , engineering hardware and software maintenance support services to the seismic , hydrographic , oceanographic , environmental and defense industries throughout southeast asia and australia . in march 2018 , following the hydroscience acquisition , seamap introduced the sealink product line of marine sensor and solid streamer systems ( see note 20 - subsequent event to our consolidated financial statements ) . these towed streamer systems are primarily designed for three-dimensional , high-resolution marine surveys in hydrographic industry applications . in our equipment leasing segment , we lease seismic data acquisition equipment primarily to seismic data acquisition companies conducting land , transition zone and marine seismic surveys worldwide . we provide short-term leasing of seismic equipment to meet a customer 's requirements . all active leases at january 31 , 2018 were for a term of less than one year . seismic equipment held for lease is carried at cost , net of accumulated depreciation . we acquire some marine lease pool equipment from our marine technology products segment . these amounts are carried in our lease pool at the cost to our marine technology products segment , less accumulated depreciation . from time to time , we sell lease pool equipment . these sales are transacted when we have equipment for which we do not have near term needs in our leasing business or is otherwise considered excess . additionally , when equipment that has been leased to a customer is lost or destroyed , the customer is charged for such equipment at amounts specified in the underlying lease agreement . these charges are included in “ lease pool equipment sales ” in the accompanying financial statements . our results of operations can experience fluctuations in activity levels due to a number of factors outside of our control . these factors include budgetary or financial concerns , difficulties in obtaining licenses or permits , security issues , labor or political issues and weather issues . see item 1a- “ risk factors . ” business outlook prior to fiscal 2017 the majority of our revenues were generated by our equipment leasing segment . since fiscal 2017 we have seen a significant decline in revenues from leasing activity . this decline has been caused , we believe , by a number of factors including the following : a reduction in demand for seismic services brought about by reduced oil and gas exploration activities , which was in turn caused by lower prices for oil and gas and by excess inventories of those commodities . an excess of capacity in the seismic industry , specifically excess supplies of seismic equipment . technological advances which have reduced the cost of certain seismic equipment , therefore resulting in pressure on prices for the rental or sale of such equipment . increased competition among providers of seismic equipment . we believe that many of these factors will have a lasting effect on the seismic equipment industry . therefore , we believe that it unlikely that the results of our equipment leasing segment return to levels seen historically . accordingly , we have implemented a strategy to emphasize our marine technology products segment and to make certain changes in our equipment leasing segment . the vision statement for the company ( see “ item 1 - business ” ) was developed to serve as a guide for the new strategy . our strategy includes the following key points : increased emphasis on our marine technology products segment . we are expanding our product offerings with an emphasis on products and services that are not exclusively dependent upon oil and gas exploration activity . we expect new products and services to come from a combination of internally developed products and those acquired from third parties , such as the acquisition of klein in december 2015 and the new products introduced in march 2018 as discussed above . decrease capital deployed in lease pool . we expect our equipment leasing segment to remain an important component of our business ; however , we believe capital can in some cases be more efficiently deployed in other areas . we have in recent periods sold assets from the lease pool have used those proceeds to repay debt and invest in other operations . we also have limited investment in new lease pool assets in recent periods ; therefore , our investment in the lease pool has decreased significantly . we may , however , make additional lease pool investments in the future . story_separator_special_tag operating expenses selling , general and administrative expenses for fiscal 2018 amounted to approximately $ 19.7 million , compared to approximately $ 19.8 million and $ 18.0 million in fiscal 2017 and 2016 , respectively . in response to the continuing depressed environment in the seismic industry , particularly the land seismic industry , we have implemented a program to further reduce costs by scaling back or eliminating operations in certain areas . as a result of this we recorded a charge of approximately $ 400,000 in the fourth quarter of fiscal 2018 related to certain costs associated with this program . fiscal 2017 amounts reflect a full-year of activity related to klein , which we acquired effective december 31 , 2015. without this effect , general and administrative expenses would have declined approximately 2 % in fiscal 2017 as compared to fiscal 2016. the reductions in fiscal 2018 and 2017 , after taking into account the items discussed above , reflect various cost reduction activities implemented during that year in response to the general downturn in the company 's business . due to the decline in seismic exploration activity , we think it now more likely that certain of our customers will encounter financial difficulties and may be unable to fully satisfy their financial obligations to us . in fiscal 2018 we implemented a program to resolve certain long-outstanding accounts receivable by offering significant discounts in return for a cash settlement . therefore , in fiscal 2018 , 2017 and 2016 , we provided approximately $ 1.0 million , $ 750,000 and $ 2.2 million , respectively , for doubtful accounts . at january 31 , 2018 and 2017 , we had trade accounts and note receivables over 90 days past due of approximately $ 6.2 million and $ 11.7 million , respectively . in our industry , and in our experience , it is not unusual for accounts to become delinquent from time to time and this is not necessarily indicative of an account becoming uncollectable . as of january 31 , 2018 and 2017 , our allowance for doubtful accounts receivable amounted to approximately $ 6.2 million and $ 5.9 million , respectively . depreciation and amortization , other than lease pool depreciation , relates primarily to the depreciation of furniture , fixtures and office equipment and the amortization of intangible assets . the increase in depreciation and amortization expense in fiscal 2017 and 2016 relates to intangible assets acquired in december 2016 related to klein and may 2014 in connection with the ion product lines . we periodically evaluate the recoverability of our intangible assets , including goodwill . due to the shortfall in expected revenues from klein as discussed above and the inherent uncertainty in projections of future results , we determined to record an impairment charge of approximately $ 1.5 million , representing all goodwill related to klein . for 2017 , our evaluation did not give an indication of impairment . in fiscal 2016 , our evaluation did give an indication of impairment . as a result , we recorded an impairment charge of approximately $ 3.6 million in fiscal 2016. approximately $ 600,000 of this charge related to intangible assets associated with heli-picker assets acquired in fiscal 2011 and approximately $ 3.0 million related to goodwill associated with seamap . other income and expense interest income reflects amounts earned on invested funds and finance charges related to seismic equipment sold under financing arrangements . interest expense primarily reflects interest costs arising from borrowings under the credit agreement and the seamap credit facility ( both as defined below ) . interest expense decreased in fiscal 2018 and fiscal 2017 as compared to the prior fiscal years primarily due to lower average borrowings during those periods and the elimination of these obligations during fiscal 2018 . 29 index to financial statements other income and expense relates primarily to net foreign exchange losses and gains . these gains and losses resulted primarily from two situations . certain of our foreign operations have a functional currency of the u.s. dollar yet have cash , accounts receivable and accounts payable denominated in other currencies . these operations generally have net assets denominated in these other currencies . as the u.s. dollar strengthens against these other currencies , a foreign exchange loss arises and vice versa . in fiscal 2018 , 2017 and 2016 we recorded foreign exchange losses of approximately $ 844,000 and $ 72,000 and foreign exchange gains of approximately $ 1.3 million , respectively , related to these situations . in the second situation , certain of our foreign operations have a functional currency of the local currency yet have cash , accounts receivable and accounts payable denominated in the u.s. dollar . these operations generally have net liabilities denominated in u.s. dollars , including inter-company obligations . in fiscal 2018 we recognized approximately $ 169,000 of exchange gain of this type . in fiscal 2017 , we incurred approximately $ 339,000 of exchange gains of this type . in fiscal 2016 we incurred approximately $ 1.1 million of exchange losses of this type , primarily related to the strengthening of the u.s. dollar versus the russian ruble , australian dollar , british pound sterling and the canadian dollar . we believe gains and losses of this type are non-cash items and are considered in our calculation of adjusted ebitda . provision for income taxes our provision for income taxes in fiscal 2018 is approximately $ 910,000. this amount differs from that expected when applying the effective u.s. statutory rate of 32.9 % to our loss before income taxes due primarily to recording a valuation allowance against all of the fiscal 2018 increase in our deferred tax assets and the effect of foreign withholding and branch taxes . recently enacted changes to tax laws in the united states , including a reduction in the corporate tax rate and the manner in which earnings from foreign

for cautions about relying on such forward-looking statements , please refer to the section entitled “ forward-looking statements ” at the beginning of this annual report immediately prior to item 1. our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors , including but not limited to those discussed in item 1a . risk factors and elsewhere in this annual report .  executive overview  consolidated revenue for 2016 was $ 5.0 billion compared to $ 4.9 billion for 2015 . the modest improvement was attributable to higher volume in our building segment , driven by various building projects primarily in california .  consolidated revenue for 2015 was $ 4.9 billion compared to $ 4.5 bi llion for 2014. the growth was driven by increased volume in our building and civil segments , with various building projects in california and two large mass-transit projects in new york being the largest contributors .  income from construction operations for 2016 was $ 201.9 million compared to $ 105.4 million for 2015 . the strong increase was primarily due to significantly improved operating performance in all segments . the prior year included various unfavorable adjustments , as discussed in the next paragraph .  income from construction operations for 2015 was $ 105.4 million compared to $ 241.7 million for 2014 . the decrease was primarily due to significant project charges recorded for various five star electric projects in new york in the specialty contractors segment , decreased activity on certain higher-margin civil projects , unfavorable adjustments related to the estimate of costs to complete an office building project in new york and the adverse brightwater litigation-related charge for a legacy civil project .  the effective tax rate was 35.7 % , 38.7 % and 42.4 % for 2016 , 2015 and 2014 , respectively . the 2016 rate was favorably impacted by rate changes associated with a shift in revenue mix between states affecting state apportionment , as well as various return-to-provision and deferred tax adjustments related to depreciation . the 2015 rate was favorably impacted by the resolution of certain state tax matters . the 2014 rate was unfavorably impacted by increased activity in higher state tax jurisdiction s and higher non-deductible compensation expense .  earnings per diluted share was $ 1.92 , $ 0.91 and $ 2.20 in 2016 , 2015 and 2014 , respectively . the strong earnings growth in 2016 was due to significantly improved operating performance in all segments , as discussed above . the primary reasons for the earnings decline in 2015 were the various above-mentioned unfavorable adjustments that impacted income from construction operations during that year .  cash flow from operations was $ 113.3 million in 2016 compared to $ 14.1 million in 2015 , and compared to a use of cash from operations of $ 56.7 million in 2014. the strong improvement in operating cash generation in 2016 was due to significant progress achieved on the company 's initiative to focus on cash flow and the reduction of unbilled costs through more timely project billings and collections , and resolution and subsequent invoicing of unapproved change orders and claims . in 2016 , f or the first time in eight years , the company 's cash flow from operations exceeded its net income for the year .  consolidated new awards in 2016 were $ 3.7 billion compared to $ 4.6 billion in 2015 and $ 5.4 billion in 2014 . the civil and building segments were the major contributor s of new awards during 2016. the building segment was the major contributor of new awards during 2015. new awards in 2014 were generally balanced across all three segments , with the building segment contributing a modestly higher volume . consolidated backlog was $ 6.2 billion , $ 7.5 billion and $ 7.8 billion as of december 31 , 2016 , 2015 and 2014 , respectively . the backlog at the end of 2016 was the result of revenue burn during the year that outpaced new awards in the building and specialty contractors segments , an d closely tracked new awar ds in the civil segment . as of december 31 , 2016 , the mix of backlog by segment was approximately 43 % , 32 % and 25 % for the civil , building and specialty contractors segments , respectively . the company was awarded a $ 1.4 billion joint-venture mass-transit project in january 2017 that the company will consolidate in its financial results starting in the first quarter of 2017. the backlog at the end of 2015 was primarily due to significant new awards in the building segment , partially offset by revenue burn that outpaced new award s in the civi l and specialty contracto r s segments .  21 projects in the civil segment 's backlog typically convert to revenue over a period of three to five years , whereas projects for the building and specialty contractors segments typically convert to revenue over a period o f one to three years . we estimate that approximately $ 3.4 billion , or 54 % , of our backlog as of december 31 , 2016 will be recog nized as revenue in 2017 .  the following table presents the changes in backlog in 2016 :   replace_table_token_17_th ( a ) new award s consist of the original contract price of projects added to our backlog plus or minus subsequent changes to the estimated total contract price of existing contracts .  the outlook for our company 's growth over the next several years is the most favorable it has been in many years , particularly in the civil segment . story_separator_special_tag  cash and working capital  cash and cash equivalents were $ 146.1 million as of december 31 , 2016 compared to $ 75.5 million as of december 31 , 2015. these were comprised of cash held by us and available for general corporate purposes of $ 49.5 million and $ 18.5 million , respectively , and our proportionate share of cash held by joint ven tures , available only for joint- venture-related uses including distribu tions to joint ‑venture partners of $ 96.6 million and $ 57.0 million , respectively . in addition , our restricted cash , held primarily to secure insurance-related contingent obligations , was $ 50.5 million as of december 31 , 2016 , compared to $ 45.9 million as of december 31 , 2015 .  during the year ended december 31 , 2016 , net cash provided by operating activities was $ 113.3 million ( $ 108.8 million of which was generated in the third and fourth quarters ) , due primarily to favorable operating results , somewhat offset by changes in net investment in working capital . the change in working capital primarily reflects increases in accounts receivable ( both trade accounts receivable and retention ) related to billing activity , offset by a reduction of costs and estimated earnings in excess of billings , which management is continuing to resolve and collect . in 2016 , f or the first time in eight years , the company 's cash flow from operations exceeded its net income for the year . during the year ended december 31 , 2015 , $ 14.1 million in cash was provided from operating activities , primarily due to cash generated from earnings sources being mostly offset by increased net investment in working capital .  the $ 99.3 million improvement in cash flow from operations for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 is reflective of improved year-over-year profitability and lower net investment in working capital resulting from a significant reduction in costs and estimated earnings in excess of billings . the improvement in cash generation in 2016 compared to 25 2015 is even more pronounced when considering there were significant collections by the company in the first quarter of 2015 related to the settlements of past disputes over the citycenter project in las vegas , nevada and a hospital project in santa monica , california .  during 2016 , we used $ 18.5 million of cash from investing activities , due primarily to the acquisition of property and equipment , compared to the use of cash of $ 32.4 million for investing activities during 2015 , which was primarily related to the acquisition of property and equipment of $ 35.9 million , offset by $ 5.0 million in proceeds from the sale of property and equipment .  during 2016 , we utilized $ 24.2 million of cash from financing activities , primarily due to the net paydown of debt and the payment of $ 15.1 million in debt issuance costs associated with two amendments to the 2014 credit facility and the issuance of $ 200.0 million of convertible notes . the net proceeds from the convertible notes were used to prepay $ 125.0 million of the borrowings outstanding under our term loan , pay down $ 69.0 million of borrowings outstanding under our 2014 revolver and pay $ 6.0 million of fees related to the offering . net cash used in financing activities for 2015 was $ 41.8 million , which was primarily due to the pay down of debt under the 2014 credit facility .  as of december 31 , 2016 , we had working capital of $ 1.3 billion , a ratio of current assets to current liabilities of 1.87 and a ratio of debt to equity of 0.49 compared to worki ng capital of $ 1.2 billion , a ratio of current assets to current liabilities of 1 . 80 and a ratio of debt to equity of 0.58 at december 31 , 2015 .  story_separator_special_tag >     twelve months ended december 31 , 2016  actual required fixed charge coverage ratio 2.08 : 1.00 > or = 1.25 : 1.00 leverage ratio 2.79 : 1.00 < or = 3.25 : 1.00  as of the filing date of this form 10-k we are in compliance and expect to continue to be in compliance with the financial covenants under the 2014 credit facility .  2010 senior notes  in october 2010 , the company issued $ 300 million of 7.625 % senior notes due november 1 , 2018 , ( the “ 2010 notes ” ) in a private placement offering . interest on the 2010 notes is payable semi-annually on may 1 and november 1 of each year . the company may redeem the 2010 notes at par beginning on november 1 , 2016 , which was not ex ercised as of december 31 , 2016. at the date of any redemption , any accrued and unpaid interest would also be due .  convertible notes  on june 15 , 2016 , we completed an offering of $ 200 million of 2.875 % convertible senior notes due june 15 , 2021 ( the “ convertible notes ” ) . the convertible notes are senior unsecured obligations of the company . interest on the convertible notes is payable on june 15 and december 15 of each year , commencing on december 15 , 2016 , until the maturity date . we used the proceeds to prepay $ 125.0 million of our term loan , pay down $ 69.0 million of our 2014 revolver , and pay $ 6.0 million of fees related to the offering . for additional information regarding the terms of our convertible notes , refer to note 5 of the notes to consolidated financial statements . as of december 31 , 2016

debt  2014 credit facility  under our 2014 revolver , we had outstanding borro wings of $ 152.5 million as of december 31 , 2016 and $ 158.0 million as of december 31 , 2015. the 2014 revolver balances reported on the consolidated balance sheets as of december 31 , 2016 and 2015 include unamortized debt issuance cost of $ 4.5 million and $ 2.2 million , respectively . we utilized the 2014 revolver for letters of credit in the amount of $ 0.2 million as of december 31 , 2016 and 2015 , respectively .  on june 5 , 2014 , the company entered into a sixth amended and restated credit agreement ( the “ original facility , ” with subsequent amendments discussed herein , the “ 2014 credit facility ” ) , with bank of america , n.a . as administrative agent , swing line lender and l/c issuer and a syndicate of other lenders . the 2014 credit facility provides for a $ 300 million revolving credit facility ( the “ 2014 revolver ” ) , a $ 250 million term loan ( the “ term loan ” ) and a sublimit for the issuance of letters of credit up to the aggregate amount of $ 150 million , all maturing on may 1 , 2018. borrowings under both the 2014 revolver and the term loan bear interest based either on bank of america 's prime lending rate or the london interbank offered rate ( “ libor ” ) , each plus an applicable margin ranging from 1.25 % to 3.00 % contingent upon the lat est consolidated leverage ratio .  during the first half of 2016 , the company entered into two amendments to the original facility ( the “ amendments ” ) : waiver and amendment no . 1 , entered into on february 26 , 2016 ( “ amendment no . 1 ” ) , and consent and amendment no . 2 , entered into on june 8 , 2016 ( “ amendment no . 2 ” ) . in amendment no . 1 , the lenders waived the company 's violation of its consolidated leverage ratio covenant and consolidated fixed charge coverage ratio covenant .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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  2014 credit facility  under our 2014 revolver , we had outstanding borro wings of $ 152.5 million as of december 31 , 2016 and $ 158.0 million as of december 31 , 2015. the 2014 revolver balances reported on the consolidated balance sheets as of december 31 , 2016 and 2015 include unamortized debt issuance cost of $ 4.5 million and $ 2.2 million , respectively . we utilized the 2014 revolver for letters of credit in the amount of $ 0.2 million as of december 31 , 2016 and 2015 , respectively .  on june 5 , 2014 , the company entered into a sixth amended and restated credit agreement ( the “ original facility , ” with subsequent amendments discussed herein , the “ 2014 credit facility ” ) , with bank of america , n.a . as administrative agent , swing line lender and l/c issuer and a syndicate of other lenders . the 2014 credit facility provides for a $ 300 million revolving credit facility ( the “ 2014 revolver ” ) , a $ 250 million term loan ( the “ term loan ” ) and a sublimit for the issuance of letters of credit up to the aggregate amount of $ 150 million , all maturing on may 1 , 2018. borrowings under both the 2014 revolver and the term loan bear interest based either on bank of america 's prime lending rate or the london interbank offered rate ( “ libor ” ) , each plus an applicable margin ranging from 1.25 % to 3.00 % contingent upon the lat est consolidated leverage ratio .  during the first half of 2016 , the company entered into two amendments to the original facility ( the “ amendments ” ) : waiver and amendment no . 1 , entered into on february 26 , 2016 ( “ amendment no . 1 ” ) , and consent and amendment no . 2 , entered into on june 8 , 2016 ( “ amendment no . 2 ” ) . in amendment no . 1 , the lenders waived the company 's violation of its consolidated leverage ratio covenant and consolidated fixed charge coverage ratio covenant . ``` Suspicious Activity Report : for cautions about relying on such forward-looking statements , please refer to the section entitled “ forward-looking statements ” at the beginning of this annual report immediately prior to item 1. our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors , including but not limited to those discussed in item 1a . risk factors and elsewhere in this annual report .  executive overview  consolidated revenue for 2016 was $ 5.0 billion compared to $ 4.9 billion for 2015 . the modest improvement was attributable to higher volume in our building segment , driven by various building projects primarily in california .  consolidated revenue for 2015 was $ 4.9 billion compared to $ 4.5 bi llion for 2014. the growth was driven by increased volume in our building and civil segments , with various building projects in california and two large mass-transit projects in new york being the largest contributors .  income from construction operations for 2016 was $ 201.9 million compared to $ 105.4 million for 2015 . the strong increase was primarily due to significantly improved operating performance in all segments . the prior year included various unfavorable adjustments , as discussed in the next paragraph .  income from construction operations for 2015 was $ 105.4 million compared to $ 241.7 million for 2014 . the decrease was primarily due to significant project charges recorded for various five star electric projects in new york in the specialty contractors segment , decreased activity on certain higher-margin civil projects , unfavorable adjustments related to the estimate of costs to complete an office building project in new york and the adverse brightwater litigation-related charge for a legacy civil project .  the effective tax rate was 35.7 % , 38.7 % and 42.4 % for 2016 , 2015 and 2014 , respectively . the 2016 rate was favorably impacted by rate changes associated with a shift in revenue mix between states affecting state apportionment , as well as various return-to-provision and deferred tax adjustments related to depreciation . the 2015 rate was favorably impacted by the resolution of certain state tax matters . the 2014 rate was unfavorably impacted by increased activity in higher state tax jurisdiction s and higher non-deductible compensation expense .  earnings per diluted share was $ 1.92 , $ 0.91 and $ 2.20 in 2016 , 2015 and 2014 , respectively . the strong earnings growth in 2016 was due to significantly improved operating performance in all segments , as discussed above . the primary reasons for the earnings decline in 2015 were the various above-mentioned unfavorable adjustments that impacted income from construction operations during that year .  cash flow from operations was $ 113.3 million in 2016 compared to $ 14.1 million in 2015 , and compared to a use of cash from operations of $ 56.7 million in 2014. the strong improvement in operating cash generation in 2016 was due to significant progress achieved on the company 's initiative to focus on cash flow and the reduction of unbilled costs through more timely project billings and collections , and resolution and subsequent invoicing of unapproved change orders and claims . in 2016 , f or the first time in eight years , the company 's cash flow from operations exceeded its net income for the year .  consolidated new awards in 2016 were $ 3.7 billion compared to $ 4.6 billion in 2015 and $ 5.4 billion in 2014 . the civil and building segments were the major contributor s of new awards during 2016. the building segment was the major contributor of new awards during 2015. new awards in 2014 were generally balanced across all three segments , with the building segment contributing a modestly higher volume . consolidated backlog was $ 6.2 billion , $ 7.5 billion and $ 7.8 billion as of december 31 , 2016 , 2015 and 2014 , respectively . the backlog at the end of 2016 was the result of revenue burn during the year that outpaced new awards in the building and specialty contractors segments , an d closely tracked new awar ds in the civil segment . as of december 31 , 2016 , the mix of backlog by segment was approximately 43 % , 32 % and 25 % for the civil , building and specialty contractors segments , respectively . the company was awarded a $ 1.4 billion joint-venture mass-transit project in january 2017 that the company will consolidate in its financial results starting in the first quarter of 2017. the backlog at the end of 2015 was primarily due to significant new awards in the building segment , partially offset by revenue burn that outpaced new award s in the civi l and specialty contracto r s segments .  21 projects in the civil segment 's backlog typically convert to revenue over a period of three to five years , whereas projects for the building and specialty contractors segments typically convert to revenue over a period o f one to three years . we estimate that approximately $ 3.4 billion , or 54 % , of our backlog as of december 31 , 2016 will be recog nized as revenue in 2017 .  the following table presents the changes in backlog in 2016 :   replace_table_token_17_th ( a ) new award s consist of the original contract price of projects added to our backlog plus or minus subsequent changes to the estimated total contract price of existing contracts .  the outlook for our company 's growth over the next several years is the most favorable it has been in many years , particularly in the civil segment . story_separator_special_tag  cash and working capital  cash and cash equivalents were $ 146.1 million as of december 31 , 2016 compared to $ 75.5 million as of december 31 , 2015. these were comprised of cash held by us and available for general corporate purposes of $ 49.5 million and $ 18.5 million , respectively , and our proportionate share of cash held by joint ven tures , available only for joint- venture-related uses including distribu tions to joint ‑venture partners of $ 96.6 million and $ 57.0 million , respectively . in addition , our restricted cash , held primarily to secure insurance-related contingent obligations , was $ 50.5 million as of december 31 , 2016 , compared to $ 45.9 million as of december 31 , 2015 .  during the year ended december 31 , 2016 , net cash provided by operating activities was $ 113.3 million ( $ 108.8 million of which was generated in the third and fourth quarters ) , due primarily to favorable operating results , somewhat offset by changes in net investment in working capital . the change in working capital primarily reflects increases in accounts receivable ( both trade accounts receivable and retention ) related to billing activity , offset by a reduction of costs and estimated earnings in excess of billings , which management is continuing to resolve and collect . in 2016 , f or the first time in eight years , the company 's cash flow from operations exceeded its net income for the year . during the year ended december 31 , 2015 , $ 14.1 million in cash was provided from operating activities , primarily due to cash generated from earnings sources being mostly offset by increased net investment in working capital .  the $ 99.3 million improvement in cash flow from operations for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 is reflective of improved year-over-year profitability and lower net investment in working capital resulting from a significant reduction in costs and estimated earnings in excess of billings . the improvement in cash generation in 2016 compared to 25 2015 is even more pronounced when considering there were significant collections by the company in the first quarter of 2015 related to the settlements of past disputes over the citycenter project in las vegas , nevada and a hospital project in santa monica , california .  during 2016 , we used $ 18.5 million of cash from investing activities , due primarily to the acquisition of property and equipment , compared to the use of cash of $ 32.4 million for investing activities during 2015 , which was primarily related to the acquisition of property and equipment of $ 35.9 million , offset by $ 5.0 million in proceeds from the sale of property and equipment .  during 2016 , we utilized $ 24.2 million of cash from financing activities , primarily due to the net paydown of debt and the payment of $ 15.1 million in debt issuance costs associated with two amendments to the 2014 credit facility and the issuance of $ 200.0 million of convertible notes . the net proceeds from the convertible notes were used to prepay $ 125.0 million of the borrowings outstanding under our term loan , pay down $ 69.0 million of borrowings outstanding under our 2014 revolver and pay $ 6.0 million of fees related to the offering . net cash used in financing activities for 2015 was $ 41.8 million , which was primarily due to the pay down of debt under the 2014 credit facility .  as of december 31 , 2016 , we had working capital of $ 1.3 billion , a ratio of current assets to current liabilities of 1.87 and a ratio of debt to equity of 0.49 compared to worki ng capital of $ 1.2 billion , a ratio of current assets to current liabilities of 1 . 80 and a ratio of debt to equity of 0.58 at december 31 , 2015 .  story_separator_special_tag >     twelve months ended december 31 , 2016  actual required fixed charge coverage ratio 2.08 : 1.00 > or = 1.25 : 1.00 leverage ratio 2.79 : 1.00 < or = 3.25 : 1.00  as of the filing date of this form 10-k we are in compliance and expect to continue to be in compliance with the financial covenants under the 2014 credit facility .  2010 senior notes  in october 2010 , the company issued $ 300 million of 7.625 % senior notes due november 1 , 2018 , ( the “ 2010 notes ” ) in a private placement offering . interest on the 2010 notes is payable semi-annually on may 1 and november 1 of each year . the company may redeem the 2010 notes at par beginning on november 1 , 2016 , which was not ex ercised as of december 31 , 2016. at the date of any redemption , any accrued and unpaid interest would also be due .  convertible notes  on june 15 , 2016 , we completed an offering of $ 200 million of 2.875 % convertible senior notes due june 15 , 2021 ( the “ convertible notes ” ) . the convertible notes are senior unsecured obligations of the company . interest on the convertible notes is payable on june 15 and december 15 of each year , commencing on december 15 , 2016 , until the maturity date . we used the proceeds to prepay $ 125.0 million of our term loan , pay down $ 69.0 million of our 2014 revolver , and pay $ 6.0 million of fees related to the offering . for additional information regarding the terms of our convertible notes , refer to note 5 of the notes to consolidated financial statements . as of december 31 , 2016

gw dc . we produced 5.7 gw dc of series 4 and series 6 modules during 2019 , which represented a 111 % increase from 2018 . the increase in production was primarily driven by the incremental series 6 production capacity added at our manufacturing facilities as described above . we expect to produce approximately 5.7 gw dc of solar modules during 2020 , substantially all of which will be series 6 modules . in september 2019 , we announced our transition from an internal epc service model in the united states to an external model , in which we expect to leverage the capabilities of third-party epc services in providing power plant solutions to our systems segment customers . this transition is not expected to affect any projects currently under construction . the shift to an external epc service model in the united states aligns with our typical model in international markets and is facilitated , in part , by our series 6 module technology and its 50 improved bos compatibility . see note 21 . “ segment and geographical information ” to our consolidated financial statements for more information on our operating segments . following an evaluation of the long-term sustainable cost structure , competitiveness , and risk-adjusted returns of our u.s. project development business , we have determined it is in the best interest of our stockholders to explore options for this business line . this exploration may result in , among other possibilities , a partnership with a third party who possesses complimentary competencies or a sale of all or a portion of our u.s. project development business . this exploration of options for our u.s. project development business is not subject to any definitive timetable and there can be no assurances that this process will result in any transaction . in january 2020 , we entered into a memorandum of understanding ( “ mou ” ) to settle a class action lawsuit filed in 2012 in the united states district court for the district of arizona ( hereafter “ arizona district court ” ) against the company and certain of our current and former officers and directors . pursuant to the mou , we agreed to pay a total of $ 350 million to settle the claims brought on behalf of all persons who purchased or otherwise acquired the company 's shares during a specified period , in exchange for mutual releases and a dismissal with prejudice of the complaint upon court approval of the settlement . the proposed settlement contains no admission of liability , wrongdoing , or responsibility by any of the parties . market overview the solar industry continues to be characterized by intense pricing competition , both at the module and system levels . in particular , module average selling prices in many global markets have declined in recent years and are expected to continue to decline to some degree in the future . in the aggregate , we believe manufacturers of solar cells and modules have significant installed production capacity , relative to global demand , and the ability for additional capacity expansion . we believe the solar industry may from time to time experience periods of structural imbalance between supply and demand ( i.e . , where production capacity exceeds global demand ) , and that such periods will continue to put pressure on pricing . additionally , intense competition at the system level may result in an environment in which pricing falls rapidly , thereby further increasing demand for solar energy solutions but constraining the ability for project developers , and diversified module manufacturers to sustain meaningful and consistent profitability . in light of such market realities , we are focusing on our strategies and points of differentiation , which include our advanced module technology , our manufacturing process , our diversified capabilities , our financial viability , and the sustainability advantage of our modules and systems . global solar markets continue to expand and develop , in part aided by demand elasticity resulting from declining industry average selling prices , both at the module and system levels , which have promoted the widespread adoption of solar energy . as a result of such market opportunities , we are expanding our manufacturing capacity while also developing and operating multiple solar projects around the world as we execute on our advanced-stage utility-scale project pipeline . we also continue to develop our early-to-mid-stage project pipeline and evaluate acquisitions of projects to further expand both our early-to-mid-stage and advanced-stage pipelines . see the tables under “ management 's discussion and analysis of financial condition and results of operations – systems project pipeline ” for additional information about projects within our advanced-stage pipeline . although we expect a meaningful portion of our future consolidated net sales , operating income , and cash flows to be derived from such projects , we expect third-party module sales to have a more significant impact on our operating results as we continue to expand our manufacturing capacity and leverage the benefits of our series 6 module technology . lower industry module and system pricing is expected to continue to contribute to diversification in global electricity generation and further demand for solar energy solutions as such solutions compete economically with traditional forms of energy generation . over time , however , declining average selling prices may adversely affect our results of operations to the extent we have not already entered into contracts for future module or system sales . if competitors reduce pricing to levels below their costs ; bid aggressively low prices for module sale agreements or ppas ; or are able to operate at minimal or negative operating margins for sustained periods of time , our results of operations could be further adversely affected . story_separator_special_tag 56 systems business during 2019 , edp renewables , connectgen , and innergex renewable energy each accounted for more than 10 % of our systems business net sales , and the majority of our systems business net sales were in the united states and australia . substantially all of our systems business net sales during 2019 were denominated in u.s. dollars and australian dollars . we typically recognize revenue for sales of solar power systems using cost based input methods , which result in revenue being recognized as work is performed based on the relationship between actual costs incurred compared to the total estimated costs for a given contract . we may also recognize revenue for the sale of a development project , which excludes epc services , or for the sale of a completed system when we enter into the associated sales contract with the customer . the revenue recognition policies for our systems business are further described in note 2 . “ summary of significant accounting policies ” to our consolidated financial statements . the following table shows net sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_5_th net sales from our modules segment increased by $ 958.1 million in 2019 primarily due to a 180 % increase in the volume of watts sold and a 4 % increase in the average selling price per watt . net sales from our systems segment decreased by $ 139.0 million in 2019 primarily as a result of the sale of the mashiko and certain india projects in 2018 and the completion of substantially all construction activities at the california flats , willow springs , and various other projects in florida in late 2018 and early 2019 , partially offset by the sale of the sun streams , sunshine valley , and beryl projects and ongoing construction activities at the phoebe and ga solar 4 projects in 2019 . cost of sales modules business our modules business cost of sales includes the cost of raw materials and components for manufacturing solar modules , such as glass , transparent conductive coatings , cdte and other thin film semiconductors , laminate materials , connector assemblies , edge seal materials , and frames . in addition , our cost of sales includes direct labor for the manufacturing of solar modules and manufacturing overhead , such as engineering , equipment maintenance , quality and production control , and information technology . our cost of sales also includes depreciation of manufacturing plant and equipment , facility-related expenses , environmental health and safety costs , and costs associated with shipping , warranties , and solar module collection and recycling ( excluding accretion ) . systems business for our systems business , project-related costs include development costs ( legal , consulting , transmission upgrade , interconnection , permitting , and other similar costs ) , epc costs ( consisting primarily of solar modules , inverters , electrical and mounting hardware , project management and engineering , and construction labor ) , and site specific costs . the following table shows cost of sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_6_th 57 cost of sales increased $ 662.0 million , or 36 % , and decreased 0.4 percentage points as a percent of net sales when comparing 2019 with 2018 . the increase in cost of sales was driven by a $ 44.5 million increase in our systems segment cost of sales primarily due to the mix of lower gross profit projects sold or under construction during the period . the increase in cost of sales was also driven by a $ 617.6 million increase in our modules segment cost of sales primarily as a result of the following : higher costs of $ 817.5 million from an increase in the volume of modules sold ; and a reduction in our module collection and recycling liability of $ 25.4 million in 2018 due to higher by-product credits for glass , lower capital costs , and adjustments to certain valuation assumptions ; partially offset by a reduction to our product warranty liability of $ 80.0 million due to revised module return rates ; lower under-utilization and certain other charges associated with the initial ramp of certain series 6 manufacturing lines , which decreased cost of sales by $ 40.3 million ; and continued reductions in the cost per watt of our solar modules , which decreased cost of sales by $ 107.1 million . gross profit gross profit may be affected by numerous factors , including the selling prices of our modules and systems , our manufacturing costs , project development costs , bos costs , the capacity utilization of our manufacturing facilities , and foreign exchange rates . gross profit may also be affected by the mix of net sales from our modules and systems businesses . the following table shows gross profit for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_7_th gross profit increased 0.4 percentage points to 17.9 % during 2019 from 17.5 % during 2018 primarily as a result of higher gross profit on third-party module sales , improved utilization of our manufacturing facilities , and the reduction to our product warranty liability described above , partially offset by the mix of lower gross profit projects sold or under construction during the period , the settlement of a tax examination with the state of california in 2018 , which affected our estimates of sales and use taxes due for certain projects , and the reduction to our module collection and recycling liability in 2018 described above . selling , general and administrative selling , general and administrative expense consists primarily of salaries and other personnel-related costs , professional fees , insurance costs , and other business development and selling expenses . the following table shows selling , general and

cash flows the following table summarizes key cash flow activity for the years ended december 31 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_19_th operating activities the increase in net cash provided by operating activities during 2019 was primarily driven by higher cash proceeds from sales of systems projects , including the sunshine valley , sun streams , and california flats projects , and advance payments received for sales of solar modules prior to the step down in the u.s. investment tax credit as discussed above . these increases were partially offset by operating expenditures associated with initial ramp of certain series 6 manufacturing lines and expenditures for the construction of certain projects . investing activities the decrease in net cash used in investing activities during 2019 was primarily due to higher net sales of marketable securities and restricted investments , partially offset by proceeds associated with the sale of our interests in 8point3 and its subsidiaries in 2018 . financing activities the decrease in net cash provided by financing activities during 2019 was primarily the result of lower net proceeds from borrowings under project specific debt financings associated with the construction of certain projects in australia , japan , and india . 65 contractual obligations the following table presents the payments due by fiscal year for our outstanding contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_20_th ( 1 ) includes estimated cash interest to be paid over the remaining terms of the underlying debt . interest payments are based on fixed and floating rates as of december 31 , 2019 . ( 2 ) purchase obligations represent agreements to purchase goods or services , including open purchase orders and contracts with fixed volume commitments , that are noncancelable or cancelable with a significant penalty . purchase obligations for our long-term supply agreements for the purchase of substrate glass and cover glass represent specified termination penalties , which are up to $ 430 million in the aggregate under the agreements . our actual purchases under these supply agreements are expected to be approximately $ 2.4 billion of substrate glass and $ 500 million of cover glass .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 key cash flow activity for the years ended december 31 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_19_th operating activities the increase in net cash provided by operating activities during 2019 was primarily driven by higher cash proceeds from sales of systems projects , including the sunshine valley , sun streams , and california flats projects , and advance payments received for sales of solar modules prior to the step down in the u.s. investment tax credit as discussed above . these increases were partially offset by operating expenditures associated with initial ramp of certain series 6 manufacturing lines and expenditures for the construction of certain projects . investing activities the decrease in net cash used in investing activities during 2019 was primarily due to higher net sales of marketable securities and restricted investments , partially offset by proceeds associated with the sale of our interests in 8point3 and its subsidiaries in 2018 . financing activities the decrease in net cash provided by financing activities during 2019 was primarily the result of lower net proceeds from borrowings under project specific debt financings associated with the construction of certain projects in australia , japan , and india . 65 contractual obligations the following table presents the payments due by fiscal year for our outstanding contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_20_th ( 1 ) includes estimated cash interest to be paid over the remaining terms of the underlying debt . interest payments are based on fixed and floating rates as of december 31 , 2019 . ( 2 ) purchase obligations represent agreements to purchase goods or services , including open purchase orders and contracts with fixed volume commitments , that are noncancelable or cancelable with a significant penalty . purchase obligations for our long-term supply agreements for the purchase of substrate glass and cover glass represent specified termination penalties , which are up to $ 430 million in the aggregate under the agreements . our actual purchases under these supply agreements are expected to be approximately $ 2.4 billion of substrate glass and $ 500 million of cover glass . ``` Suspicious Activity Report : gw dc . we produced 5.7 gw dc of series 4 and series 6 modules during 2019 , which represented a 111 % increase from 2018 . the increase in production was primarily driven by the incremental series 6 production capacity added at our manufacturing facilities as described above . we expect to produce approximately 5.7 gw dc of solar modules during 2020 , substantially all of which will be series 6 modules . in september 2019 , we announced our transition from an internal epc service model in the united states to an external model , in which we expect to leverage the capabilities of third-party epc services in providing power plant solutions to our systems segment customers . this transition is not expected to affect any projects currently under construction . the shift to an external epc service model in the united states aligns with our typical model in international markets and is facilitated , in part , by our series 6 module technology and its 50 improved bos compatibility . see note 21 . “ segment and geographical information ” to our consolidated financial statements for more information on our operating segments . following an evaluation of the long-term sustainable cost structure , competitiveness , and risk-adjusted returns of our u.s. project development business , we have determined it is in the best interest of our stockholders to explore options for this business line . this exploration may result in , among other possibilities , a partnership with a third party who possesses complimentary competencies or a sale of all or a portion of our u.s. project development business . this exploration of options for our u.s. project development business is not subject to any definitive timetable and there can be no assurances that this process will result in any transaction . in january 2020 , we entered into a memorandum of understanding ( “ mou ” ) to settle a class action lawsuit filed in 2012 in the united states district court for the district of arizona ( hereafter “ arizona district court ” ) against the company and certain of our current and former officers and directors . pursuant to the mou , we agreed to pay a total of $ 350 million to settle the claims brought on behalf of all persons who purchased or otherwise acquired the company 's shares during a specified period , in exchange for mutual releases and a dismissal with prejudice of the complaint upon court approval of the settlement . the proposed settlement contains no admission of liability , wrongdoing , or responsibility by any of the parties . market overview the solar industry continues to be characterized by intense pricing competition , both at the module and system levels . in particular , module average selling prices in many global markets have declined in recent years and are expected to continue to decline to some degree in the future . in the aggregate , we believe manufacturers of solar cells and modules have significant installed production capacity , relative to global demand , and the ability for additional capacity expansion . we believe the solar industry may from time to time experience periods of structural imbalance between supply and demand ( i.e . , where production capacity exceeds global demand ) , and that such periods will continue to put pressure on pricing . additionally , intense competition at the system level may result in an environment in which pricing falls rapidly , thereby further increasing demand for solar energy solutions but constraining the ability for project developers , and diversified module manufacturers to sustain meaningful and consistent profitability . in light of such market realities , we are focusing on our strategies and points of differentiation , which include our advanced module technology , our manufacturing process , our diversified capabilities , our financial viability , and the sustainability advantage of our modules and systems . global solar markets continue to expand and develop , in part aided by demand elasticity resulting from declining industry average selling prices , both at the module and system levels , which have promoted the widespread adoption of solar energy . as a result of such market opportunities , we are expanding our manufacturing capacity while also developing and operating multiple solar projects around the world as we execute on our advanced-stage utility-scale project pipeline . we also continue to develop our early-to-mid-stage project pipeline and evaluate acquisitions of projects to further expand both our early-to-mid-stage and advanced-stage pipelines . see the tables under “ management 's discussion and analysis of financial condition and results of operations – systems project pipeline ” for additional information about projects within our advanced-stage pipeline . although we expect a meaningful portion of our future consolidated net sales , operating income , and cash flows to be derived from such projects , we expect third-party module sales to have a more significant impact on our operating results as we continue to expand our manufacturing capacity and leverage the benefits of our series 6 module technology . lower industry module and system pricing is expected to continue to contribute to diversification in global electricity generation and further demand for solar energy solutions as such solutions compete economically with traditional forms of energy generation . over time , however , declining average selling prices may adversely affect our results of operations to the extent we have not already entered into contracts for future module or system sales . if competitors reduce pricing to levels below their costs ; bid aggressively low prices for module sale agreements or ppas ; or are able to operate at minimal or negative operating margins for sustained periods of time , our results of operations could be further adversely affected . story_separator_special_tag 56 systems business during 2019 , edp renewables , connectgen , and innergex renewable energy each accounted for more than 10 % of our systems business net sales , and the majority of our systems business net sales were in the united states and australia . substantially all of our systems business net sales during 2019 were denominated in u.s. dollars and australian dollars . we typically recognize revenue for sales of solar power systems using cost based input methods , which result in revenue being recognized as work is performed based on the relationship between actual costs incurred compared to the total estimated costs for a given contract . we may also recognize revenue for the sale of a development project , which excludes epc services , or for the sale of a completed system when we enter into the associated sales contract with the customer . the revenue recognition policies for our systems business are further described in note 2 . “ summary of significant accounting policies ” to our consolidated financial statements . the following table shows net sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_5_th net sales from our modules segment increased by $ 958.1 million in 2019 primarily due to a 180 % increase in the volume of watts sold and a 4 % increase in the average selling price per watt . net sales from our systems segment decreased by $ 139.0 million in 2019 primarily as a result of the sale of the mashiko and certain india projects in 2018 and the completion of substantially all construction activities at the california flats , willow springs , and various other projects in florida in late 2018 and early 2019 , partially offset by the sale of the sun streams , sunshine valley , and beryl projects and ongoing construction activities at the phoebe and ga solar 4 projects in 2019 . cost of sales modules business our modules business cost of sales includes the cost of raw materials and components for manufacturing solar modules , such as glass , transparent conductive coatings , cdte and other thin film semiconductors , laminate materials , connector assemblies , edge seal materials , and frames . in addition , our cost of sales includes direct labor for the manufacturing of solar modules and manufacturing overhead , such as engineering , equipment maintenance , quality and production control , and information technology . our cost of sales also includes depreciation of manufacturing plant and equipment , facility-related expenses , environmental health and safety costs , and costs associated with shipping , warranties , and solar module collection and recycling ( excluding accretion ) . systems business for our systems business , project-related costs include development costs ( legal , consulting , transmission upgrade , interconnection , permitting , and other similar costs ) , epc costs ( consisting primarily of solar modules , inverters , electrical and mounting hardware , project management and engineering , and construction labor ) , and site specific costs . the following table shows cost of sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_6_th 57 cost of sales increased $ 662.0 million , or 36 % , and decreased 0.4 percentage points as a percent of net sales when comparing 2019 with 2018 . the increase in cost of sales was driven by a $ 44.5 million increase in our systems segment cost of sales primarily due to the mix of lower gross profit projects sold or under construction during the period . the increase in cost of sales was also driven by a $ 617.6 million increase in our modules segment cost of sales primarily as a result of the following : higher costs of $ 817.5 million from an increase in the volume of modules sold ; and a reduction in our module collection and recycling liability of $ 25.4 million in 2018 due to higher by-product credits for glass , lower capital costs , and adjustments to certain valuation assumptions ; partially offset by a reduction to our product warranty liability of $ 80.0 million due to revised module return rates ; lower under-utilization and certain other charges associated with the initial ramp of certain series 6 manufacturing lines , which decreased cost of sales by $ 40.3 million ; and continued reductions in the cost per watt of our solar modules , which decreased cost of sales by $ 107.1 million . gross profit gross profit may be affected by numerous factors , including the selling prices of our modules and systems , our manufacturing costs , project development costs , bos costs , the capacity utilization of our manufacturing facilities , and foreign exchange rates . gross profit may also be affected by the mix of net sales from our modules and systems businesses . the following table shows gross profit for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_7_th gross profit increased 0.4 percentage points to 17.9 % during 2019 from 17.5 % during 2018 primarily as a result of higher gross profit on third-party module sales , improved utilization of our manufacturing facilities , and the reduction to our product warranty liability described above , partially offset by the mix of lower gross profit projects sold or under construction during the period , the settlement of a tax examination with the state of california in 2018 , which affected our estimates of sales and use taxes due for certain projects , and the reduction to our module collection and recycling liability in 2018 described above . selling , general and administrative selling , general and administrative expense consists primarily of salaries and other personnel-related costs , professional fees , insurance costs , and other business development and selling expenses . the following table shows selling , general and

as a result , our total revenue has tended to experience quarterly variations and our total revenue for any particular quarter may not be indicative of future results . we use the term “ organic sales `` to refer to sales from existing operations excluding ( i ) sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to any divested businesses ( “ acquisition sales ” ) , and ( ii ) the impact of foreign currency translation . the impact of foreign currency translation is determined by translating the respective period 's sales ( excluding acquisition sales ) using the same currency exchange rates that were in effect during the prior year periods . we use the term “ organic sales growth ” to refer to the increase in our sales between periods that is attributable to organic sales . we use the term “ acquisition growth ” to refer to the increase in our sales between periods that is attributable to acquisition sales . 25 gross profit . our gross profit is impacted by our levels of net sales and cost of sales . our cost of sales consists of costs for , among other things ( i ) raw materials , including copper , steel and aluminum ; ( ii ) components such as castings , bars , tools , bearings and electronics ; ( iii ) wages and related personnel expenses for fabrication , assembly and logistics personnel ; ( iv ) manufacturing facilities , including depreciation on our manufacturing facilities and equipment , taxes , insurance and utilities ; and ( v ) shipping . the majority of our cost of sales consists of raw materials and components . the price we pay for commodities and components can be subject to commodity price fluctuations . we attempt to mitigate this through fixed-price agreements with suppliers and our hedging strategies . we are currently reducing the number of our suppliers we use in order to leverage the better prices and terms that can be obtained with higher volume orders . a large amount of our suppliers are in north america . as we expand production and our geographic footprint , we expect it may be advantageous to increase our use of foreign suppliers . when we experience commodity price increases , we have tended to announce price increases to our customers who purchase via purchase order , with such increases generally taking effect a period of time after the public announcements . for those sales we make under long-term arrangements , we tend to include material price formulas that specify quarterly or semi-annual price adjustments based on a variety of factors , including commodity prices . outside of general economic cyclicality , our different business units experience different levels of variation in gross profit from quarter to quarter based on factors specific to each division . for example , a portion of our climate solutions segment manufactures products that are used in air conditioning applications . as a result , our sales for that business tend to be lower in the first and fourth quarters and higher in the second and third quarters . in contrast , our commercial and industrial systems segment and our power transmission solutions segment have a broad customer base and a variety of applications , thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions . operating expenses . our operating expenses consist primarily of ( i ) general and administrative expenses ; ( ii ) sales and marketing expenses ; ( iii ) general engineering and research and development expenses ; and ( iv ) handling costs incurred in conjunction with distribution activities . personnel related costs are our largest operating expense . our general and administrative expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses related to our executive , finance , human resource , information technology , legal and operations functions ; ( ii ) occupancy expenses ; ( iii ) technology related costs ; ( iv ) depreciation and amortization ; and ( v ) corporate-related travel . the majority of our general and administrative costs are for salaries and related personnel expenses . these costs can vary by division given the location of our different manufacturing operations . our sales and marketing expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses related to our sales and marketing function ; ( ii ) internal and external sales commissions and bonuses ; ( iii ) travel , lodging and other out-of-pocket expenses associated with our selling efforts ; and ( iv ) other related overhead . our general engineering and research and development expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses ; ( ii ) the design and development of new energy efficiency products and enhancements ; ( iii ) quality assurance and testing ; and ( iv ) other related overhead . our research and development efforts tend to be targeted toward developing new products that would allow us to maintain or gain additional market share , whether in new or existing applications . while these costs make up an insignificant portion of our operating expenses in the power transmission solutions segment , they are more substantial in our commercial and industrial systems and climate solutions segments . in particular , a large driver of our research and development efforts in these two segments is energy efficiency , which generally means using less electrical power to produce more mechanical power . goodwill & other asset impairments . story_separator_special_tag we pay a non-use fee on the aggregate unused amount of the multicurrency revolving facility at a rate determined by reference to its consolidated funded debt to consolidated ebitda ratio . senior notes at december 30 , 2017 , we had $ 500.0 million of unsecured senior notes ( the “ notes ” ) outstanding . the notes consist of $ 500.0 million in senior notes ( the “ 2011 notes ” ) in a private placement which were issued in seven tranches with maturities from seven to twelve years and carry fixed interest rates . as of december 30 , 2017 , $ 400.0 million of the 2011 notes are included in long-term debt and $ 100.0 million of the 2011 notes are included in current maturities of long-term debt on the consolidated balance sheets . we repaid the remaining $ 100.0 million of the 2007 notes in august 2017. details on the notes at december 30 , 2017 were ( in millions ) : replace_table_token_9_th compliance with financial covenants the credit agreement and the notes require us to meet specified financial ratios and to satisfy certain financial condition tests . we were in compliance with all financial covenants contained in the notes and the credit agreement as of december 30 , 2017 . other notes payable 31 at december 30 , 2017 , other notes payable of $ 5.7 million were outstanding with a weighted average interest rate of 5.7 % . at december 31 , 2016 , other notes payable of $ 5.1 million were outstanding with a weighted average rate of 5.6 % . based on rates for instruments with comparable maturities and credit quality . the approximate fair value of our total debt was $ 1,165.4 million and $ 1,433.4 million as of december 30 , 2017 and december 31 , 2016 , respectively . litigation one of our subsidiaries that we acquired in 2007 is subject to numerous claims filed in various jurisdictions relating to certain sub-fractional motors that were primarily manufactured through 2004 and that were included as components of residential and commercial ventilation units manufactured and sold in high volumes by a third party . these ventilation units are subject to product safety requirements and other potential regulation of their performance by government agencies such as the us consumer product safety commission ( “ cpsc ” ) . the claims generally allege that the ventilation units were the cause of fires . we have recorded an estimated liability for incurred claims . based on the current facts , we can not assure that these claims , individually or in the aggregate , will not have a material adverse effect on its subsidiary 's financial condition . our subsidiary can not reasonably predict the outcome of these claims , the nature or extent of any cpsc or other remedial actions , if any , that our subsidiary may need to undertake with respect to motors that remain in the field , or the costs that may be incurred , some of which could be significant . we are from time to time , party to litigation and other legal or regulatory proceedings that arise in the normal course of our business operations and the outcomes of which are subject to significant uncertainty , including product warranty and liability claims , contract disputes and environmental , asbestos , intellectual property , employment and other litigation matters . our products are used in a variety of industrial , commercial and residential applications that subject us to claims that the use of our products is alleged to have resulted in injury or other damage . many of these matters will only be resolved when one or more future events occur or fail to occur . our management conducts regular reviews , including updates from legal counsel , to assess the need for accounting recognition or disclosure of these contingencies , and such assessment inherently involves an exercise in judgment . we accrue for exposures in amounts that we believe are adequate , and we do not believe that the outcome of any such lawsuit individually or collectively will have a material effect on our financial position , results of operations or cash flows . off-balance sheet arrangements , contractual obligations and commercial commitments the following is a summary of our contractual obligations and payments due by period as of december 30 , 2017 ( in millions ) : replace_table_token_10_th ( 1 ) the timing and future spot prices affect the settlement values of our hedge obligations related to commodities and currency exchange rates . accordingly , these obligations are not included above in the table of contractual obligations ( see also item 7a and note 13 of notes to the consolidated financial statements ) . the timing of settlement of our tax contingent liabilities can not be reasonably determined and they are not included above in the table of contractual obligations . the one-time mandatory transition tax on undistributed earnings of foreign affiliates , which is payable over eight years pursuant to the timeline outlined in the act , is a provisional estimate and therefore the related payments are not included in the above table of contractual obligations . future pension obligation payments after fiscal 2017 are subject to revaluation based on changes in the benefit population and or changes in the value of pension assets based on market conditions that are not determinable as of december 30 , 2017 . ( 2 ) variable rate debt based on december 30 , 2017 rates . see also note 7 of notes to the consolidated financial statements . we utilize blanket purchase orders ( “ blankets ” ) to communicate expected annual requirements to many of our suppliers . requirements under blankets generally do not become “ firm ” until a varying number of weeks before our scheduled production . the purchase obligations shown in the above table represent the value we consider “ firm . ”

liquidity and capital resources general our principal source of liquidity is cash flow provided by operating activities . in addition to operating income , other significant factors affecting our cash flows include working capital levels , capital expenditures , dividends , share repurchases , acquisitions , and divestitures , availability of debt financing , and the ability to attract long-term capital at acceptable terms . cash flow provided by operating activities was $ 291.9 million for fiscal 2017 , a $ 150.4 million decrease from fiscal 2016. the decrease was primarily the result of the higher investment in inventory in fiscal 2017. cash flow provided by operating activities was $ 442.3 million for fiscal 2016 , a $ 58.0 million increase from fiscal 2015. the increase was primarily the result of the lower investment in net working capital driven by the planned reduction in inventory during fiscal 2016. cash flow used in investing activities was $ 57.8 million for fiscal 2017 , compared to $ 19.6 million used in fiscal 2016. the change was driven primarily by the $ 24.6 million received for the sale of our mastergear business in 2016. the proceeds from the sale of mastergear were used to reduce debt obligations . capital expenditures were $ 65.2 million both in fiscal 2017 and in fiscal 2016. cash flow used in investing activities was $ 19.6 million for fiscal 2016 , compared to $ 1.5 billion used in fiscal 2015. the change was driven by the purchase of pts for $ 1.4 billion , net of cash acquired , in fiscal 2015 versus the $ 24.6 million received for the sale of our mastergear business in 2016. the proceeds from the sale of mastergear were used to reduce debt obligations . capital expenditures were $ 65.2

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources general our principal source of liquidity is cash flow provided by operating activities . in addition to operating income , other significant factors affecting our cash flows include working capital levels , capital expenditures , dividends , share repurchases , acquisitions , and divestitures , availability of debt financing , and the ability to attract long-term capital at acceptable terms . cash flow provided by operating activities was $ 291.9 million for fiscal 2017 , a $ 150.4 million decrease from fiscal 2016. the decrease was primarily the result of the higher investment in inventory in fiscal 2017. cash flow provided by operating activities was $ 442.3 million for fiscal 2016 , a $ 58.0 million increase from fiscal 2015. the increase was primarily the result of the lower investment in net working capital driven by the planned reduction in inventory during fiscal 2016. cash flow used in investing activities was $ 57.8 million for fiscal 2017 , compared to $ 19.6 million used in fiscal 2016. the change was driven primarily by the $ 24.6 million received for the sale of our mastergear business in 2016. the proceeds from the sale of mastergear were used to reduce debt obligations . capital expenditures were $ 65.2 million both in fiscal 2017 and in fiscal 2016. cash flow used in investing activities was $ 19.6 million for fiscal 2016 , compared to $ 1.5 billion used in fiscal 2015. the change was driven by the purchase of pts for $ 1.4 billion , net of cash acquired , in fiscal 2015 versus the $ 24.6 million received for the sale of our mastergear business in 2016. the proceeds from the sale of mastergear were used to reduce debt obligations . capital expenditures were $ 65.2 ``` Suspicious Activity Report : as a result , our total revenue has tended to experience quarterly variations and our total revenue for any particular quarter may not be indicative of future results . we use the term “ organic sales `` to refer to sales from existing operations excluding ( i ) sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to any divested businesses ( “ acquisition sales ” ) , and ( ii ) the impact of foreign currency translation . the impact of foreign currency translation is determined by translating the respective period 's sales ( excluding acquisition sales ) using the same currency exchange rates that were in effect during the prior year periods . we use the term “ organic sales growth ” to refer to the increase in our sales between periods that is attributable to organic sales . we use the term “ acquisition growth ” to refer to the increase in our sales between periods that is attributable to acquisition sales . 25 gross profit . our gross profit is impacted by our levels of net sales and cost of sales . our cost of sales consists of costs for , among other things ( i ) raw materials , including copper , steel and aluminum ; ( ii ) components such as castings , bars , tools , bearings and electronics ; ( iii ) wages and related personnel expenses for fabrication , assembly and logistics personnel ; ( iv ) manufacturing facilities , including depreciation on our manufacturing facilities and equipment , taxes , insurance and utilities ; and ( v ) shipping . the majority of our cost of sales consists of raw materials and components . the price we pay for commodities and components can be subject to commodity price fluctuations . we attempt to mitigate this through fixed-price agreements with suppliers and our hedging strategies . we are currently reducing the number of our suppliers we use in order to leverage the better prices and terms that can be obtained with higher volume orders . a large amount of our suppliers are in north america . as we expand production and our geographic footprint , we expect it may be advantageous to increase our use of foreign suppliers . when we experience commodity price increases , we have tended to announce price increases to our customers who purchase via purchase order , with such increases generally taking effect a period of time after the public announcements . for those sales we make under long-term arrangements , we tend to include material price formulas that specify quarterly or semi-annual price adjustments based on a variety of factors , including commodity prices . outside of general economic cyclicality , our different business units experience different levels of variation in gross profit from quarter to quarter based on factors specific to each division . for example , a portion of our climate solutions segment manufactures products that are used in air conditioning applications . as a result , our sales for that business tend to be lower in the first and fourth quarters and higher in the second and third quarters . in contrast , our commercial and industrial systems segment and our power transmission solutions segment have a broad customer base and a variety of applications , thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions . operating expenses . our operating expenses consist primarily of ( i ) general and administrative expenses ; ( ii ) sales and marketing expenses ; ( iii ) general engineering and research and development expenses ; and ( iv ) handling costs incurred in conjunction with distribution activities . personnel related costs are our largest operating expense . our general and administrative expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses related to our executive , finance , human resource , information technology , legal and operations functions ; ( ii ) occupancy expenses ; ( iii ) technology related costs ; ( iv ) depreciation and amortization ; and ( v ) corporate-related travel . the majority of our general and administrative costs are for salaries and related personnel expenses . these costs can vary by division given the location of our different manufacturing operations . our sales and marketing expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses related to our sales and marketing function ; ( ii ) internal and external sales commissions and bonuses ; ( iii ) travel , lodging and other out-of-pocket expenses associated with our selling efforts ; and ( iv ) other related overhead . our general engineering and research and development expenses consist primarily of costs for ( i ) salaries , benefits and other personnel expenses ; ( ii ) the design and development of new energy efficiency products and enhancements ; ( iii ) quality assurance and testing ; and ( iv ) other related overhead . our research and development efforts tend to be targeted toward developing new products that would allow us to maintain or gain additional market share , whether in new or existing applications . while these costs make up an insignificant portion of our operating expenses in the power transmission solutions segment , they are more substantial in our commercial and industrial systems and climate solutions segments . in particular , a large driver of our research and development efforts in these two segments is energy efficiency , which generally means using less electrical power to produce more mechanical power . goodwill & other asset impairments . story_separator_special_tag we pay a non-use fee on the aggregate unused amount of the multicurrency revolving facility at a rate determined by reference to its consolidated funded debt to consolidated ebitda ratio . senior notes at december 30 , 2017 , we had $ 500.0 million of unsecured senior notes ( the “ notes ” ) outstanding . the notes consist of $ 500.0 million in senior notes ( the “ 2011 notes ” ) in a private placement which were issued in seven tranches with maturities from seven to twelve years and carry fixed interest rates . as of december 30 , 2017 , $ 400.0 million of the 2011 notes are included in long-term debt and $ 100.0 million of the 2011 notes are included in current maturities of long-term debt on the consolidated balance sheets . we repaid the remaining $ 100.0 million of the 2007 notes in august 2017. details on the notes at december 30 , 2017 were ( in millions ) : replace_table_token_9_th compliance with financial covenants the credit agreement and the notes require us to meet specified financial ratios and to satisfy certain financial condition tests . we were in compliance with all financial covenants contained in the notes and the credit agreement as of december 30 , 2017 . other notes payable 31 at december 30 , 2017 , other notes payable of $ 5.7 million were outstanding with a weighted average interest rate of 5.7 % . at december 31 , 2016 , other notes payable of $ 5.1 million were outstanding with a weighted average rate of 5.6 % . based on rates for instruments with comparable maturities and credit quality . the approximate fair value of our total debt was $ 1,165.4 million and $ 1,433.4 million as of december 30 , 2017 and december 31 , 2016 , respectively . litigation one of our subsidiaries that we acquired in 2007 is subject to numerous claims filed in various jurisdictions relating to certain sub-fractional motors that were primarily manufactured through 2004 and that were included as components of residential and commercial ventilation units manufactured and sold in high volumes by a third party . these ventilation units are subject to product safety requirements and other potential regulation of their performance by government agencies such as the us consumer product safety commission ( “ cpsc ” ) . the claims generally allege that the ventilation units were the cause of fires . we have recorded an estimated liability for incurred claims . based on the current facts , we can not assure that these claims , individually or in the aggregate , will not have a material adverse effect on its subsidiary 's financial condition . our subsidiary can not reasonably predict the outcome of these claims , the nature or extent of any cpsc or other remedial actions , if any , that our subsidiary may need to undertake with respect to motors that remain in the field , or the costs that may be incurred , some of which could be significant . we are from time to time , party to litigation and other legal or regulatory proceedings that arise in the normal course of our business operations and the outcomes of which are subject to significant uncertainty , including product warranty and liability claims , contract disputes and environmental , asbestos , intellectual property , employment and other litigation matters . our products are used in a variety of industrial , commercial and residential applications that subject us to claims that the use of our products is alleged to have resulted in injury or other damage . many of these matters will only be resolved when one or more future events occur or fail to occur . our management conducts regular reviews , including updates from legal counsel , to assess the need for accounting recognition or disclosure of these contingencies , and such assessment inherently involves an exercise in judgment . we accrue for exposures in amounts that we believe are adequate , and we do not believe that the outcome of any such lawsuit individually or collectively will have a material effect on our financial position , results of operations or cash flows . off-balance sheet arrangements , contractual obligations and commercial commitments the following is a summary of our contractual obligations and payments due by period as of december 30 , 2017 ( in millions ) : replace_table_token_10_th ( 1 ) the timing and future spot prices affect the settlement values of our hedge obligations related to commodities and currency exchange rates . accordingly , these obligations are not included above in the table of contractual obligations ( see also item 7a and note 13 of notes to the consolidated financial statements ) . the timing of settlement of our tax contingent liabilities can not be reasonably determined and they are not included above in the table of contractual obligations . the one-time mandatory transition tax on undistributed earnings of foreign affiliates , which is payable over eight years pursuant to the timeline outlined in the act , is a provisional estimate and therefore the related payments are not included in the above table of contractual obligations . future pension obligation payments after fiscal 2017 are subject to revaluation based on changes in the benefit population and or changes in the value of pension assets based on market conditions that are not determinable as of december 30 , 2017 . ( 2 ) variable rate debt based on december 30 , 2017 rates . see also note 7 of notes to the consolidated financial statements . we utilize blanket purchase orders ( “ blankets ” ) to communicate expected annual requirements to many of our suppliers . requirements under blankets generally do not become “ firm ” until a varying number of weeks before our scheduled production . the purchase obligations shown in the above table represent the value we consider “ firm . ”

acquisition of mineral sands business because we believe that becoming vertically integrated would benefit us by assuring our access to critical supply , retaining cash and margin in the company and enabling general operating flexibility , we acquired a global producer of mineral sands with production facilities and sales and marketing presence strategically positioned throughout the world . specifically , we acquired 74 % of exxaro resources ltd 's ( “exxaro” ) south african mineral sands operations , including its namakwa and kzn sands mines , separation and slag furnaces , along with its 50 % share of the tiwest joint venture in western australia ( together the “mineral sands business” ) ( the “transaction” ) . on june 15 , 2012 , the date of the transaction ( the “transaction date” ) , the existing business of tronox incorporated was combined with the mineral sands business under tronox limited . the transaction was effectuated in two primary steps . in the first step , tronox incorporated became a subsidiary of tronox limited , with tronox incorporated shareholders receiving one class a ordinary share ( “class a shares” ) and $ 12.50 in cash ( “merger consideration” ) for each share of tronox incorporated . in the second step , tronox limited issued 9,950,856 class b ordinary shares ( “class b shares” ) to exxaro and one of its subsidiaries in consideration for the mineral sands business . upon completion of the 47 transaction , former tronox incorporated shareholders held 15,413,083 class a shares and exxaro held 9,950,856 class b shares , representing approximately 60.8 % and 39.2 % , respectively , of the voting power in tronox limited . exxaro retained a 26 % ownership interest in the south african operations that are part of the mineral sands business in order to comply with the black economic empowerment ( “bee” ) legislation of south africa . prior to the transaction date , tronox incorporated operated the tiwest joint venture with exxaro australia sands pty ltd. , a subsidiary of exxaro , which operated a chloride process tio 2 plant located in kwinana , western australia , a mining operation in cooljarloo , western australia , and a mineral separation plant and a synthetic rutile processing facility , both in chandala , western australia . as noted above , in the second step , we acquired the mineral sands business , which was comprised of ( i ) 74 % of exxaro sands and exxaro tsa sands in south africa , and ( ii ) exxaro 's 50 % interest in the tiwest joint venture . as such , as of the transaction date , we own 100 % of the operations formerly operated by the tiwest joint venture . we accounted for the transaction using the acquisition method of accounting guidance for business combinations included in accounting standards codification ( “asc” ) 805 , business combinations ( “asc 805” ) , which required recording assets and liabilities at fair value . the acquisition resulted in a bargain purchase gain of $ 1,055 million . see note 5 of notes to consolidated financial statements . emergence from chapter 11 on january 12 , 2009 ( the “petition date” ) , tronox incorporated and certain of its subsidiaries ( collectively , the “debtors” ) filed voluntary petitions in the united states bankruptcy court for the southern district of new york ( the “bankruptcy court” ) seeking reorganization relief under the provisions of chapter 11 of title 11 of the united states code ( the “bankruptcy code” ) . on november 30 , 2010 ( the “confirmation date” ) , the bankruptcy court confirmed ( the “confirmation order” ) the debtors ' first amended joint plan of reorganization pursuant to chapter 11 of the bankruptcy code , dated november 5 , 2010 ( as amended and confirmed , the “plan” ) . material conditions to the plan were resolved during the period from the confirmation date until january 26 , 2011. subsequently , on february 14 , 2011 ( the “effective date” ) , tronox incorporated emerged from bankruptcy and continued operations as reorganized tronox incorporated . the consummation of the plan resulted in a substantial realignment of the interests in tronox incorporated between existing prepetition creditors and shareholders . as a result , tronox incorporated was required to adopt fresh-start accounting . having resolved the material contingencies related to implementing the plan on january 26 , 2011 and due to the proximity to the end of month accounting period , which closed on january 31 , 2011 , tronox incorporated applied fresh-start accounting as of january 31 , 2011. tronox incorporated evaluated the activity between january 26 , 2011 and january 31 , 2011 and , based upon the immateriality of such activity , concluded that the use of january 31 , 2011 to reflect the fresh-start accounting adjustments was appropriate for financial reporting purposes . the use of the january 31 , 2011 date is for financial reporting purposes only and does not affect the effective date of the plan . accordingly , the financial information set forth in this report , unless otherwise expressly set forth or as the context otherwise indicates , reflects the consolidated results of operations and financial condition of tronox incorporated and its subsidiaries on a fresh-start basis for the period following january 31 , 2011 ( “successor” ) , and of tronox incorporated and its subsidiaries on a historical basis for the periods through january 31 , 2011 ( “predecessor” ) . story_separator_special_tag 52 combined twelve month period ended december 31 , 2011 compared to the year ended december 31 , 2010 replace_table_token_11_th references to 2011 refer to the combined twelve month period ended december 31 , 2011 , which include the successor period and the predecessor period , unless otherwise indicated . an analysis of net sales for each business unit is included in the “operations review of segment revenue and profit” section below . we reported net sales of $ 1,651 million , an increase of $ 433 million or 36 % . during 2011 and 2010 , 86 % and 83 % , respectively of our net sales were generated from the sale of tio 2 . market conditions in 2011 led to strong global demand for tio 2 products throughout the first three quarters of 2011. although demand softened in the fourth quarter , due to customer destocking and slower economic activity globally , our sales price and sales volumes of tio 2 and mineral products were higher than in 2010. cost of goods sold increased 19 % during 2011 as compared to 2010. the increase to cost of goods sold resulted from higher sales volumes , increases in production costs for raw materials , chemicals , energy , employee related costs and unfavorable foreign currency effects . cost of goods sold in 2011 includes $ 36 million of non-cash fresh-start inventory step-up amortization . gross margin increased 109 % or $ 242 million to $ 439 million in 2011 as compared to 2010. gross margin percentage of net sales was 28 % as compared to 18 % in 2010. the improvement was primarily due to the increased selling prices and sales volumes , discussed above , partially offset by higher costs and unfavorable exchange rate changes . selling , general and administrative expenses increased $ 98 million to $ 157 million in 2011 as compared to 2010. the increase was primarily due to the following : amortization of intangible assets subsequent to fresh-start accounting of $ 22 million ; employee variable compensation and benefit costs of approximately $ 50 million , including $ 14 million related to amortization of restricted shares during 2011 compared to $ 1 million during 2010 ; costs associated with the acquisition of the mineral sands business , including banker fees , legal and professional fees and the registration rights penalty of approximately $ 28 million during 2011 compared to costs incurred for outside services used during the bankruptcy and during the emergence from bankruptcy , including attorneys , contract labor and other of $ 17 million during 2010 ; audit and professional fees incurred related to fresh-start accounting and the three year audit of our financial statements of approximately $ 16 million ; and marketing costs incurred of $ 15 million during 2011 compared to $ 11 million during 2010. on december 21 , 2011 , we entered into a separation agreement with dennis wanlass , our former ceo . under the terms of the agreement , we recorded a cash severance payment of $ 3 million and $ 3 million related to accelerated vesting of restricted shares granted under the management equity incentive plan , which are included in selling , general and administrative expense . 53 the board hired thomas casey , the chairman of the board , as our chief executive officer as we prepared to assimilate our announced acquisition of the mineral sands business . mr. casey was paid a $ 2 million sign-on bonus , which was included in selling , general and administrative expenses . the litigation/arbitration settlement income of $ 10 million was due to the settlement with rti hamilton , inc. the settlement agreement reflects the compromise and settlement of disputed claims in complete accord and satisfaction thereof . of the total payment of $ 11 million , $ 1 million constitutes payment for capital costs we incurred in relation to the agreement , plus interest . provision for environmental remediation and restoration was income of $ 5 million during 2011 as compared to income of $ 47 million in 2010. the 2011 activity is a result of additional reimbursements received under the predecessor 's environmental insurance policy related to its remediation efforts at the henderson , nevada site . during 2010 , we recorded receivables from our insurance carrier related to environmental clean-up obligations at the henderson facility . due to the accounting for the legacy environmental liabilities , the obligation for the clean-up work had been recorded in prior years , but the insurance coverage was confirmed in 2010 and 2011. interest and debt expense decreased $ 17 million , or 34 % during 2011 as compared to 2010. the $ 33 million during 2011 is comprised of $ 29 million of interest expense on the exit financing facility and the wells revolver , $ 4 million of other interest expense and $ 1 million of amortization of deferred debt issuance costs , offset by $ 1 million of capitalized interest . during the one month ended january 31 , 2011 , interest expense excludes $ 3 million , which would have been payable under the terms of the $ 350 million 9.5 % senior unsecured notes , which was not accrued while we were in bankruptcy . the $ 50 million during 2010 is comprised of $ 40 million of interest expense on the debtor-in-possession facility , $ 9 million of amortization of deferred debt issuance costs and $ 1 million of other costs . during 2010 , interest expense excluded $ 33 million , which would have been payable under the terms of the $ 350 million 9.5 % senior unsecured notes , which was not accrued while we were in bankruptcy . other expense of $ 8 million in 2012 decreased less than $ 1 million for 2010. the change was primarily due to foreign currency losses of $ 6 million during 2011 compared to foreign currency losses of $

cash flows the following table presents cash flow for the periods indicated : replace_table_token_16_th cash flows from operating activities - cash flows from operating activities for 2012 were a source of funds of $ 118 million compared to a use of funds of $ 20 million for the combined twelve month period ended december 31 , 2011. the source of funds during 2012 was primarily attributable to positive operating results and the collection of accounts receivable , partially offset by increased inventories . inventories increased due to a slowdown in demand and higher input prices . the source of funds in the eleven month period ended december 31 , 2011 reflects the strong operating performance during 2011 as pricing increased throughout the year , while the use of funds during the one month ended january , 31 , 2011 , reflects our emergence from bankruptcy , including the funding of the environmental and tort trusts , the payment of claims and professional fees in cash , and clearance of our liabilities subject to compromise . cash flows from investing activities - net cash provided by investing activities during 2012 primarily reflects $ 115 million of cash received in the transaction , offset by $ 166 million of capital expenditures . capital expenditures for 2013 are expected to be in the range of $ 220 million to $ 280 million . 59 cash flows from financing activities— net cash provided by financing activities was $ 490 million compared $ 173 million in the twelve months ended december 31 , 2011. cash inflows were comprised of the following : issuance of $ 900 million aggregate principal bonds ; refinancing of the exit facility with a $ 700 million term facility , less a $ 7 million discount , resulting in a cash inflow of $ 693 million ; and draw down of $ 30 million on the wells revolver , $ 30 million on the ubs revolver and $ 54 million on the absa revolver .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following table presents cash flow for the periods indicated : replace_table_token_16_th cash flows from operating activities - cash flows from operating activities for 2012 were a source of funds of $ 118 million compared to a use of funds of $ 20 million for the combined twelve month period ended december 31 , 2011. the source of funds during 2012 was primarily attributable to positive operating results and the collection of accounts receivable , partially offset by increased inventories . inventories increased due to a slowdown in demand and higher input prices . the source of funds in the eleven month period ended december 31 , 2011 reflects the strong operating performance during 2011 as pricing increased throughout the year , while the use of funds during the one month ended january , 31 , 2011 , reflects our emergence from bankruptcy , including the funding of the environmental and tort trusts , the payment of claims and professional fees in cash , and clearance of our liabilities subject to compromise . cash flows from investing activities - net cash provided by investing activities during 2012 primarily reflects $ 115 million of cash received in the transaction , offset by $ 166 million of capital expenditures . capital expenditures for 2013 are expected to be in the range of $ 220 million to $ 280 million . 59 cash flows from financing activities— net cash provided by financing activities was $ 490 million compared $ 173 million in the twelve months ended december 31 , 2011. cash inflows were comprised of the following : issuance of $ 900 million aggregate principal bonds ; refinancing of the exit facility with a $ 700 million term facility , less a $ 7 million discount , resulting in a cash inflow of $ 693 million ; and draw down of $ 30 million on the wells revolver , $ 30 million on the ubs revolver and $ 54 million on the absa revolver . ``` Suspicious Activity Report : acquisition of mineral sands business because we believe that becoming vertically integrated would benefit us by assuring our access to critical supply , retaining cash and margin in the company and enabling general operating flexibility , we acquired a global producer of mineral sands with production facilities and sales and marketing presence strategically positioned throughout the world . specifically , we acquired 74 % of exxaro resources ltd 's ( “exxaro” ) south african mineral sands operations , including its namakwa and kzn sands mines , separation and slag furnaces , along with its 50 % share of the tiwest joint venture in western australia ( together the “mineral sands business” ) ( the “transaction” ) . on june 15 , 2012 , the date of the transaction ( the “transaction date” ) , the existing business of tronox incorporated was combined with the mineral sands business under tronox limited . the transaction was effectuated in two primary steps . in the first step , tronox incorporated became a subsidiary of tronox limited , with tronox incorporated shareholders receiving one class a ordinary share ( “class a shares” ) and $ 12.50 in cash ( “merger consideration” ) for each share of tronox incorporated . in the second step , tronox limited issued 9,950,856 class b ordinary shares ( “class b shares” ) to exxaro and one of its subsidiaries in consideration for the mineral sands business . upon completion of the 47 transaction , former tronox incorporated shareholders held 15,413,083 class a shares and exxaro held 9,950,856 class b shares , representing approximately 60.8 % and 39.2 % , respectively , of the voting power in tronox limited . exxaro retained a 26 % ownership interest in the south african operations that are part of the mineral sands business in order to comply with the black economic empowerment ( “bee” ) legislation of south africa . prior to the transaction date , tronox incorporated operated the tiwest joint venture with exxaro australia sands pty ltd. , a subsidiary of exxaro , which operated a chloride process tio 2 plant located in kwinana , western australia , a mining operation in cooljarloo , western australia , and a mineral separation plant and a synthetic rutile processing facility , both in chandala , western australia . as noted above , in the second step , we acquired the mineral sands business , which was comprised of ( i ) 74 % of exxaro sands and exxaro tsa sands in south africa , and ( ii ) exxaro 's 50 % interest in the tiwest joint venture . as such , as of the transaction date , we own 100 % of the operations formerly operated by the tiwest joint venture . we accounted for the transaction using the acquisition method of accounting guidance for business combinations included in accounting standards codification ( “asc” ) 805 , business combinations ( “asc 805” ) , which required recording assets and liabilities at fair value . the acquisition resulted in a bargain purchase gain of $ 1,055 million . see note 5 of notes to consolidated financial statements . emergence from chapter 11 on january 12 , 2009 ( the “petition date” ) , tronox incorporated and certain of its subsidiaries ( collectively , the “debtors” ) filed voluntary petitions in the united states bankruptcy court for the southern district of new york ( the “bankruptcy court” ) seeking reorganization relief under the provisions of chapter 11 of title 11 of the united states code ( the “bankruptcy code” ) . on november 30 , 2010 ( the “confirmation date” ) , the bankruptcy court confirmed ( the “confirmation order” ) the debtors ' first amended joint plan of reorganization pursuant to chapter 11 of the bankruptcy code , dated november 5 , 2010 ( as amended and confirmed , the “plan” ) . material conditions to the plan were resolved during the period from the confirmation date until january 26 , 2011. subsequently , on february 14 , 2011 ( the “effective date” ) , tronox incorporated emerged from bankruptcy and continued operations as reorganized tronox incorporated . the consummation of the plan resulted in a substantial realignment of the interests in tronox incorporated between existing prepetition creditors and shareholders . as a result , tronox incorporated was required to adopt fresh-start accounting . having resolved the material contingencies related to implementing the plan on january 26 , 2011 and due to the proximity to the end of month accounting period , which closed on january 31 , 2011 , tronox incorporated applied fresh-start accounting as of january 31 , 2011. tronox incorporated evaluated the activity between january 26 , 2011 and january 31 , 2011 and , based upon the immateriality of such activity , concluded that the use of january 31 , 2011 to reflect the fresh-start accounting adjustments was appropriate for financial reporting purposes . the use of the january 31 , 2011 date is for financial reporting purposes only and does not affect the effective date of the plan . accordingly , the financial information set forth in this report , unless otherwise expressly set forth or as the context otherwise indicates , reflects the consolidated results of operations and financial condition of tronox incorporated and its subsidiaries on a fresh-start basis for the period following january 31 , 2011 ( “successor” ) , and of tronox incorporated and its subsidiaries on a historical basis for the periods through january 31 , 2011 ( “predecessor” ) . story_separator_special_tag 52 combined twelve month period ended december 31 , 2011 compared to the year ended december 31 , 2010 replace_table_token_11_th references to 2011 refer to the combined twelve month period ended december 31 , 2011 , which include the successor period and the predecessor period , unless otherwise indicated . an analysis of net sales for each business unit is included in the “operations review of segment revenue and profit” section below . we reported net sales of $ 1,651 million , an increase of $ 433 million or 36 % . during 2011 and 2010 , 86 % and 83 % , respectively of our net sales were generated from the sale of tio 2 . market conditions in 2011 led to strong global demand for tio 2 products throughout the first three quarters of 2011. although demand softened in the fourth quarter , due to customer destocking and slower economic activity globally , our sales price and sales volumes of tio 2 and mineral products were higher than in 2010. cost of goods sold increased 19 % during 2011 as compared to 2010. the increase to cost of goods sold resulted from higher sales volumes , increases in production costs for raw materials , chemicals , energy , employee related costs and unfavorable foreign currency effects . cost of goods sold in 2011 includes $ 36 million of non-cash fresh-start inventory step-up amortization . gross margin increased 109 % or $ 242 million to $ 439 million in 2011 as compared to 2010. gross margin percentage of net sales was 28 % as compared to 18 % in 2010. the improvement was primarily due to the increased selling prices and sales volumes , discussed above , partially offset by higher costs and unfavorable exchange rate changes . selling , general and administrative expenses increased $ 98 million to $ 157 million in 2011 as compared to 2010. the increase was primarily due to the following : amortization of intangible assets subsequent to fresh-start accounting of $ 22 million ; employee variable compensation and benefit costs of approximately $ 50 million , including $ 14 million related to amortization of restricted shares during 2011 compared to $ 1 million during 2010 ; costs associated with the acquisition of the mineral sands business , including banker fees , legal and professional fees and the registration rights penalty of approximately $ 28 million during 2011 compared to costs incurred for outside services used during the bankruptcy and during the emergence from bankruptcy , including attorneys , contract labor and other of $ 17 million during 2010 ; audit and professional fees incurred related to fresh-start accounting and the three year audit of our financial statements of approximately $ 16 million ; and marketing costs incurred of $ 15 million during 2011 compared to $ 11 million during 2010. on december 21 , 2011 , we entered into a separation agreement with dennis wanlass , our former ceo . under the terms of the agreement , we recorded a cash severance payment of $ 3 million and $ 3 million related to accelerated vesting of restricted shares granted under the management equity incentive plan , which are included in selling , general and administrative expense . 53 the board hired thomas casey , the chairman of the board , as our chief executive officer as we prepared to assimilate our announced acquisition of the mineral sands business . mr. casey was paid a $ 2 million sign-on bonus , which was included in selling , general and administrative expenses . the litigation/arbitration settlement income of $ 10 million was due to the settlement with rti hamilton , inc. the settlement agreement reflects the compromise and settlement of disputed claims in complete accord and satisfaction thereof . of the total payment of $ 11 million , $ 1 million constitutes payment for capital costs we incurred in relation to the agreement , plus interest . provision for environmental remediation and restoration was income of $ 5 million during 2011 as compared to income of $ 47 million in 2010. the 2011 activity is a result of additional reimbursements received under the predecessor 's environmental insurance policy related to its remediation efforts at the henderson , nevada site . during 2010 , we recorded receivables from our insurance carrier related to environmental clean-up obligations at the henderson facility . due to the accounting for the legacy environmental liabilities , the obligation for the clean-up work had been recorded in prior years , but the insurance coverage was confirmed in 2010 and 2011. interest and debt expense decreased $ 17 million , or 34 % during 2011 as compared to 2010. the $ 33 million during 2011 is comprised of $ 29 million of interest expense on the exit financing facility and the wells revolver , $ 4 million of other interest expense and $ 1 million of amortization of deferred debt issuance costs , offset by $ 1 million of capitalized interest . during the one month ended january 31 , 2011 , interest expense excludes $ 3 million , which would have been payable under the terms of the $ 350 million 9.5 % senior unsecured notes , which was not accrued while we were in bankruptcy . the $ 50 million during 2010 is comprised of $ 40 million of interest expense on the debtor-in-possession facility , $ 9 million of amortization of deferred debt issuance costs and $ 1 million of other costs . during 2010 , interest expense excluded $ 33 million , which would have been payable under the terms of the $ 350 million 9.5 % senior unsecured notes , which was not accrued while we were in bankruptcy . other expense of $ 8 million in 2012 decreased less than $ 1 million for 2010. the change was primarily due to foreign currency losses of $ 6 million during 2011 compared to foreign currency losses of $

sales of our cloud-based credential provisioning and management services , while still a small component of our total revenue , are beginning to make an increasing contribution following the receipt of our first significant long-term contracts in 2013. gross profit margin was 44 % in 2013 , compared with 44 % in 2012 , primarily reflecting lower sales of our higher-margin physical access control solutions , partially offset by higher sales and stronger margins from rfid and nfc products . sales in the americas . sales in the americas were $ 44.6 million in 2013 , accounting for 59 % of total revenue and up 7 % compared with $ 41.7 million i n 2012. sales of smart card readers and physical access control solutions for security programs within various u.s. government agencies comprise a significant proportion of our revenues in the americas region , which also includes canada and latin america . sales of our physical access control solutions in the americas decreased by 27 % in 2013 compared with the previous year , primarily due to delays and deferrals of new orders and existing projects by our federal and state agency customers as a result of the u.s. government budget sequester implemented in march 2013. by the third quarter of 2013 , our u.s. government customers had begun to adapt to their reduced budgets and prioritize spending for security programs , and many increased their spending in anticipation of the october fiscal year-end . however , the government shutdown in the first half of october 2013 reversed these positive effects and our federal and state agency customers have been slow to return to their normal levels of activity . as a general trend , u.s. federal agencies continue to be subject to security improvement mandates under programs such as homeland security presidential directive-12 ( hspd-12 ) and reiterated in memoranda from the office of management and budget ( omb m-11-11 ) . we believe th at our physical access control solutions remain among the most attractive offerings in the market to help agencies move towards compliance with federal directives and mandates . to expand our sales opportunities beyond the u.s. government market , in recent months we have released new products and added sales resources to target customers within the healthcare , education and other commercial markets . americas sales of rfid and nfc inlays and tags in 2013 rose more than 200 % over the prior year , primarily due to high-volume orders for electronic game toy pieces , transit ticketing , and phone-based applications including mobile payment and loyalty . sales of smart card readers , tokens and related products in the americas increased 3 % in 2013 and reflected stable demand to support information security at u.s. government agencies , despite the sequester . sales of our cloud-based credential provisioning and management services , while still a small component of overall sales , grew 375 % in 2013 , reflecting initial revenues related to our first major contracts . sales in europe and the middle east . sales in europe and the middle east ( emea ) were $ 19.4 million in 2013 , accounting for 26 % of total revenue and up 17 % from $ 16.5 million in 2012. european sales of rfid and nfc products grew 28 % in 2013 compared with the prior year and included large orders for nfc inlays and tags to support transit ticketing programs and phone-based applications including mobile payment and other consumer applications . sales of smart card readers and related products grew 10 % in 2013 compared with the prior year , primarily due to increased demand to support id security programs in the enterprise and government markets . sales in asia/pacific . sales in the asia/pacific region were $ 11.6 million in 2013 , accounting for 15 % of total revenue and down 18 % from $ 14.1 million in 2012. sales of smart card reader products fell 19 % in 2013 compared with the previous year as we migrated to a newer reader chip platform within our distribution channel during the second and third quarters of 2013 ; this was partially offset by growing demand for readers to support logical access and egovernment applications in japan throughout 2013. rfid and nfc product sales to asia/pacific customers fell 20 % in 2013 as a result of variability in the volume and timing of large orders . 26 seasonality and other factors . in our business overall , we may experience significant variations in demand for our offerings from quarter to quarter , and overall we typically experience a stronger d emand cycle in the second half of our fiscal year . sales of our physical access control solutions to u.s. government agencies are subject to annual government budget cycles and generally are highest in the third quarter of each year ; however the impact on this seasonal trend of overall budget reductions from actions such as government shutdowns and the sequester is uncertain . sales of our smart card readers and reader chips , many of which are sold to government agencies worldwide , are impacted by testing and compliance schedules of government bodies as well as roll-out schedules for application deployments , both of which contribute to variability in demand from quarter to quarter . further , this business is typically subject to seasonality based on commercial and government budget cycles , with lowest sales in the first half , and in particular the first quarter of the year , and highest sales in the second half of each year . story_separator_special_tag rfid and nfc products accounted for approximately one-third of total sales in 2013. smart card reader and token sales also increased 10 % in 2013 compared to the prior year , as a result of continued strong shipments to the u.s. government market despite the federal budget sequester and higher demand from the enterprise market in europe and the egovernment market in japan . reader products accounted for approximately one-third of total sales in 2013. fiscal 2012 revenue compared with fiscal 2011 revenue total revenue in 2012 was $ 72.4 million , down 7 % compared with $ 77.6 million in 2011 , primarily as a result of decreased sales in our id products segment , while sales in our identity management segment remained relatively unchanged . sales within our identity management segment accounted for 44 % of total revenue in 2012 as compared to 40 % in 2011 and sales within our id products segment accounted for 56 % of total revenue in 2012 as compared to 60 % in 2011. revenue in our identity management segment was $ 31.9 million in 2012 , up 2 % from $ 31.4 million in 2011 , reflecting an 8 % increase in sales of our physical access control solutions , partially offset by lower sales of identity solutions in australia due to the completion of a large customer program deployment during 2011. physical access control solutions accounted for nearly 40 % of total sales in 2012. sales in our id products segment were $ 40.5 million in 2012 , down 13 % from sales of $ 46.2 million in 2011 , primarily due to lower sales of our smart card reader products . reader sales fell 16 % in 2012 as a result of decreased demand for smart card readers used in european e-government and national id programs , partially offset by increased reader sales to the u.s. government sector . reader products accounted for approximately one-third of total sales in 2012. sales of rfid and nfc products also declined by 8 % in 2012 , primarily as a result of order deferrals related to large mobile device and transportation customer projects during the first three quarters of 2012. the resumption of these projects and new orders resulted in a significant increase in rfid product sales in the fourth quarter of 2012. rfid and nfc products accounted for approximately one-quarter of total sales in 2012 . 30 gross profit the following table sets forth our gross profit and year-to-year change in gross profit by product segment for the fiscal years ended december 31 , 2013 , 2012 and 2011. replace_table_token_6_th gross profit for 2013 was $ 33.6 million , or 44 % of revenue . in our identity management segment , gross profit margin was 61 % of revenue and primarily reflected sales of physical access control solutions , as well as a small but positive gross profit contribution from the first significant sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 37 % of revenue and reflected a significant increase in sales of our rfid and nfc products and associated improved manufacturing overhead recoveries . gross profit for 2012 was $ 32.0 million , or 44 % of revenue . in our identity management segment , gross profit margin was 59 % of revenue and primarily reflected sales of physical access control solutions , as well as a small , negative margin contribution from pilot sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 33 % of revenue and reflected weak sales of rfid and nfc products for the first three quarters of the year , which resulted in lower absorption of overhead costs in our manufacturing facilities . gross profit for 2011 was $ 35 .3 million , or 45 % of revenue . in our identity management segment , gross profit margin was 57 % of revenue and primarily reflected sales of our physical access control solutions , as well as a small , negative margin contribution from pilot sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 37 % million and reflected favorable product mix both for smart card reader products and rfid inlays and tags , as well as increasing sales of higher value nfc products within our rfid product portfolio . we expect there will be some variation in our gross profit from period to period , as our gross profit has been and will continue to be affected by a variety of factors , including , without limitation , competition , product pricing , the volume of sales in any given quarter , manufacturing volumes , product configuration and mix , the availability of new products , product enhancements , software and services , risk of inventory write-downs and the cost and availability of components . operating expenses information about our operating expenses for the fiscal years ended december 31 , 2013 , 2012 and 2011 is set forth below . research and development replace_table_token_7_th 31 research and development expenses consist primarily of employee compensation and fees for the development of hardware , software and firmware products . we focus the bulk of our research and development activities on the continued development of existing products and the development of new offerings for emerging market opportunities . research and development expenses were $ 6.3 million in 2013 , comprising 8 % of revenue , and down 10 % from $ 7.0 million , or 10 % of revenue in 2012. lower research and development expenses in 2013 resulted from a research and development tax credit of $ 0.4 million in the fourth quarter of 2013 , the completion of some project activities and the timing of others , and the movement of some activities to lower cost regions . key investment areas

liquidity and capital resources for the twelve months ended december 31 , 2013 , our working capital , which we have defined as current assets less current liabilities , was $ 8 .5 million , an increase of $ 8.6 million compared to ( $ 0.1 ) million as of december 31 , 2012. the increase in working capital reflects a $ 14.9 million decrease in current liabilities of discontinued operations resulting from the sale of non-core entities , a 0.5 million net decrease in liability to related party and accounts payable as well as a $ 1.5 million net increase in inventories , offset by a $ 4.0 million decrease in current assets of discontinued operations resulting from the sale of non-core entities , as well as a $ 1.9 million net decrease of cash and cash equivalents , accounts receivable and prepaid expenses and other current assets , and a net increase of $ 2.4 million in accrued compensation and related benefits , financial liabilities , deferred revenue , and other accrued expenses . for the twelve months ended december 31 , 2012 , our working capital , which we have defined as current assets less current liabilities , was ( $ 0.1 ) million , a decrease of $ 16.8 million compared to $ 16.7 million as of december 31 , 2011. the decrease in working capital reflects a $ 10.2 million net decrease in cash and cash equivalents and inventory , as well as a $ 11.9 million net increase in accounts payable , liability to related party , liability for consumer cards , financial liabili ties , deferred revenue , and other accrued expenses , offset by a $ 4.9 million increase in accounts receivable and prepaid expenses and other current assets , and a $ 0.4 million decrease in accrued compensation and related benefits .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources for the twelve months ended december 31 , 2013 , our working capital , which we have defined as current assets less current liabilities , was $ 8 .5 million , an increase of $ 8.6 million compared to ( $ 0.1 ) million as of december 31 , 2012. the increase in working capital reflects a $ 14.9 million decrease in current liabilities of discontinued operations resulting from the sale of non-core entities , a 0.5 million net decrease in liability to related party and accounts payable as well as a $ 1.5 million net increase in inventories , offset by a $ 4.0 million decrease in current assets of discontinued operations resulting from the sale of non-core entities , as well as a $ 1.9 million net decrease of cash and cash equivalents , accounts receivable and prepaid expenses and other current assets , and a net increase of $ 2.4 million in accrued compensation and related benefits , financial liabilities , deferred revenue , and other accrued expenses . for the twelve months ended december 31 , 2012 , our working capital , which we have defined as current assets less current liabilities , was ( $ 0.1 ) million , a decrease of $ 16.8 million compared to $ 16.7 million as of december 31 , 2011. the decrease in working capital reflects a $ 10.2 million net decrease in cash and cash equivalents and inventory , as well as a $ 11.9 million net increase in accounts payable , liability to related party , liability for consumer cards , financial liabili ties , deferred revenue , and other accrued expenses , offset by a $ 4.9 million increase in accounts receivable and prepaid expenses and other current assets , and a $ 0.4 million decrease in accrued compensation and related benefits . ``` Suspicious Activity Report : sales of our cloud-based credential provisioning and management services , while still a small component of our total revenue , are beginning to make an increasing contribution following the receipt of our first significant long-term contracts in 2013. gross profit margin was 44 % in 2013 , compared with 44 % in 2012 , primarily reflecting lower sales of our higher-margin physical access control solutions , partially offset by higher sales and stronger margins from rfid and nfc products . sales in the americas . sales in the americas were $ 44.6 million in 2013 , accounting for 59 % of total revenue and up 7 % compared with $ 41.7 million i n 2012. sales of smart card readers and physical access control solutions for security programs within various u.s. government agencies comprise a significant proportion of our revenues in the americas region , which also includes canada and latin america . sales of our physical access control solutions in the americas decreased by 27 % in 2013 compared with the previous year , primarily due to delays and deferrals of new orders and existing projects by our federal and state agency customers as a result of the u.s. government budget sequester implemented in march 2013. by the third quarter of 2013 , our u.s. government customers had begun to adapt to their reduced budgets and prioritize spending for security programs , and many increased their spending in anticipation of the october fiscal year-end . however , the government shutdown in the first half of october 2013 reversed these positive effects and our federal and state agency customers have been slow to return to their normal levels of activity . as a general trend , u.s. federal agencies continue to be subject to security improvement mandates under programs such as homeland security presidential directive-12 ( hspd-12 ) and reiterated in memoranda from the office of management and budget ( omb m-11-11 ) . we believe th at our physical access control solutions remain among the most attractive offerings in the market to help agencies move towards compliance with federal directives and mandates . to expand our sales opportunities beyond the u.s. government market , in recent months we have released new products and added sales resources to target customers within the healthcare , education and other commercial markets . americas sales of rfid and nfc inlays and tags in 2013 rose more than 200 % over the prior year , primarily due to high-volume orders for electronic game toy pieces , transit ticketing , and phone-based applications including mobile payment and loyalty . sales of smart card readers , tokens and related products in the americas increased 3 % in 2013 and reflected stable demand to support information security at u.s. government agencies , despite the sequester . sales of our cloud-based credential provisioning and management services , while still a small component of overall sales , grew 375 % in 2013 , reflecting initial revenues related to our first major contracts . sales in europe and the middle east . sales in europe and the middle east ( emea ) were $ 19.4 million in 2013 , accounting for 26 % of total revenue and up 17 % from $ 16.5 million in 2012. european sales of rfid and nfc products grew 28 % in 2013 compared with the prior year and included large orders for nfc inlays and tags to support transit ticketing programs and phone-based applications including mobile payment and other consumer applications . sales of smart card readers and related products grew 10 % in 2013 compared with the prior year , primarily due to increased demand to support id security programs in the enterprise and government markets . sales in asia/pacific . sales in the asia/pacific region were $ 11.6 million in 2013 , accounting for 15 % of total revenue and down 18 % from $ 14.1 million in 2012. sales of smart card reader products fell 19 % in 2013 compared with the previous year as we migrated to a newer reader chip platform within our distribution channel during the second and third quarters of 2013 ; this was partially offset by growing demand for readers to support logical access and egovernment applications in japan throughout 2013. rfid and nfc product sales to asia/pacific customers fell 20 % in 2013 as a result of variability in the volume and timing of large orders . 26 seasonality and other factors . in our business overall , we may experience significant variations in demand for our offerings from quarter to quarter , and overall we typically experience a stronger d emand cycle in the second half of our fiscal year . sales of our physical access control solutions to u.s. government agencies are subject to annual government budget cycles and generally are highest in the third quarter of each year ; however the impact on this seasonal trend of overall budget reductions from actions such as government shutdowns and the sequester is uncertain . sales of our smart card readers and reader chips , many of which are sold to government agencies worldwide , are impacted by testing and compliance schedules of government bodies as well as roll-out schedules for application deployments , both of which contribute to variability in demand from quarter to quarter . further , this business is typically subject to seasonality based on commercial and government budget cycles , with lowest sales in the first half , and in particular the first quarter of the year , and highest sales in the second half of each year . story_separator_special_tag rfid and nfc products accounted for approximately one-third of total sales in 2013. smart card reader and token sales also increased 10 % in 2013 compared to the prior year , as a result of continued strong shipments to the u.s. government market despite the federal budget sequester and higher demand from the enterprise market in europe and the egovernment market in japan . reader products accounted for approximately one-third of total sales in 2013. fiscal 2012 revenue compared with fiscal 2011 revenue total revenue in 2012 was $ 72.4 million , down 7 % compared with $ 77.6 million in 2011 , primarily as a result of decreased sales in our id products segment , while sales in our identity management segment remained relatively unchanged . sales within our identity management segment accounted for 44 % of total revenue in 2012 as compared to 40 % in 2011 and sales within our id products segment accounted for 56 % of total revenue in 2012 as compared to 60 % in 2011. revenue in our identity management segment was $ 31.9 million in 2012 , up 2 % from $ 31.4 million in 2011 , reflecting an 8 % increase in sales of our physical access control solutions , partially offset by lower sales of identity solutions in australia due to the completion of a large customer program deployment during 2011. physical access control solutions accounted for nearly 40 % of total sales in 2012. sales in our id products segment were $ 40.5 million in 2012 , down 13 % from sales of $ 46.2 million in 2011 , primarily due to lower sales of our smart card reader products . reader sales fell 16 % in 2012 as a result of decreased demand for smart card readers used in european e-government and national id programs , partially offset by increased reader sales to the u.s. government sector . reader products accounted for approximately one-third of total sales in 2012. sales of rfid and nfc products also declined by 8 % in 2012 , primarily as a result of order deferrals related to large mobile device and transportation customer projects during the first three quarters of 2012. the resumption of these projects and new orders resulted in a significant increase in rfid product sales in the fourth quarter of 2012. rfid and nfc products accounted for approximately one-quarter of total sales in 2012 . 30 gross profit the following table sets forth our gross profit and year-to-year change in gross profit by product segment for the fiscal years ended december 31 , 2013 , 2012 and 2011. replace_table_token_6_th gross profit for 2013 was $ 33.6 million , or 44 % of revenue . in our identity management segment , gross profit margin was 61 % of revenue and primarily reflected sales of physical access control solutions , as well as a small but positive gross profit contribution from the first significant sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 37 % of revenue and reflected a significant increase in sales of our rfid and nfc products and associated improved manufacturing overhead recoveries . gross profit for 2012 was $ 32.0 million , or 44 % of revenue . in our identity management segment , gross profit margin was 59 % of revenue and primarily reflected sales of physical access control solutions , as well as a small , negative margin contribution from pilot sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 33 % of revenue and reflected weak sales of rfid and nfc products for the first three quarters of the year , which resulted in lower absorption of overhead costs in our manufacturing facilities . gross profit for 2011 was $ 35 .3 million , or 45 % of revenue . in our identity management segment , gross profit margin was 57 % of revenue and primarily reflected sales of our physical access control solutions , as well as a small , negative margin contribution from pilot sales of our cloud-based credential provisioning and management services . in our id products segment , gross profit margin was 37 % million and reflected favorable product mix both for smart card reader products and rfid inlays and tags , as well as increasing sales of higher value nfc products within our rfid product portfolio . we expect there will be some variation in our gross profit from period to period , as our gross profit has been and will continue to be affected by a variety of factors , including , without limitation , competition , product pricing , the volume of sales in any given quarter , manufacturing volumes , product configuration and mix , the availability of new products , product enhancements , software and services , risk of inventory write-downs and the cost and availability of components . operating expenses information about our operating expenses for the fiscal years ended december 31 , 2013 , 2012 and 2011 is set forth below . research and development replace_table_token_7_th 31 research and development expenses consist primarily of employee compensation and fees for the development of hardware , software and firmware products . we focus the bulk of our research and development activities on the continued development of existing products and the development of new offerings for emerging market opportunities . research and development expenses were $ 6.3 million in 2013 , comprising 8 % of revenue , and down 10 % from $ 7.0 million , or 10 % of revenue in 2012. lower research and development expenses in 2013 resulted from a research and development tax credit of $ 0.4 million in the fourth quarter of 2013 , the completion of some project activities and the timing of others , and the movement of some activities to lower cost regions . key investment areas

the shares were sold at a public offering price of $ 160.00 per share for net proceeds to the company of approximately $ 37.4 million , after deducting underwriting discounts and commissions of $ 1.5 million and issuance costs of approximately $ 1.1 million payable by us . total secondary offering costs paid in 2019 were approximately $ 2.2 million , of which approximately $ 1.1 million was capitalized to reflect the costs associated with the issuance of new shares and offset against proceeds from the secondary offering . we did not receive any proceeds from the sale of common stock by the selling stockholders in the secondary offering . we continue to experience strong sales growth over prior periods . net revenues increased to $ 297.9 million in 2019 from $ 87.9 million in 2018 and $ 32.6 million in 2017 , representing a 202 % compound annual growth rate . the beyond burger accounted for approximately 64 % , 70 % and 48 % of our gross revenues in 2019 , 2018 and 2017 , respectively . we believe that sales of the beyond burger will continue to constitute a significant portion of our revenues , income and cash flow for the foreseeable future . we have generated losses from inception . net loss in 2019 , 2018 , and 2017 was $ 12.4 million , $ 29.9 million , and $ 30.4 million , respectively , as we invested in innovation and growth of our business . we operate on a fiscal calendar year , and each interim quarter is comprised of one 5-week period and two 4-week periods , with each week ending on a saturday . our fiscal year always begins on january 1 and ends on 51 december 31. as a result , our first and fourth fiscal quarters may have more or fewer days included than a traditional 91-day fiscal quarter . components of our results of operations and trends and other factors affecting our business net revenues we generate net revenues primarily from sales of our products to our customers across mainstream grocery , mass merchandiser , club and convenience store , and natural retailer channels , direct to consumer , and various food-away-from-home channels , including restaurants , foodservice outlets and schools , mainly in the united states . we continue to experience strong sales growth over prior periods . the following factors and trends in our business have driven net revenue growth over prior periods and are expected to be key drivers of our net revenue growth for the foreseeable future : increased penetration across our restaurant and foodservice channel , including increased desire by restaurant and foodservice establishments , including large fsr and or global qsr customers , to add plant-based products to their menus and to highlight these offerings , and our retail channel , including mainstream grocery , mass merchandiser , club and convenience store , and natural retailer customers ; distribution expansion and increased velocity of our fresh product sales across our channels , by which we mean that the volume of our products sold per outlet has generally increased period-over-period due to greater adoption of and demand for our products ; increased international sales of our products across geographies , markets and channels as we continue to grow our numbers of international customers ; our continued innovation , including enhancing existing products and introducing new products across our plant-based beef , pork and poultry platforms that appeal to a broad range of consumers , including those who typically eat animal-based meat ; enhanced marketing efforts as we continue to build our brand and drive consumer adoption of our products , including scaling our go beyond marketing campaign launched in february 2019 , which seeks to mobilize our ambassadors to help raise brand awareness , define the category and remain its leader ; overall market trends , including growing consumer awareness and demand for nutritious , convenient and high protein plant-based foods ; and increased production levels as we scale production to meet demand for our products across our distribution channels both domestically and internationally . in addition to the factors and trends above , we expect the following to positively impact net revenues going forward : expansion of our own internal production facilities domestically and abroad to produce our woven proteins , blends of flavor systems and binding systems , and potentially convert our woven proteins into packaged products , while forming additional strategic relationships with co-manufacturers ; and localized production to increase the availability and speed with which we can get our products to customers internationally . net revenues from sales in our retail channel increased by 185.2 % in 2019 to $ 144.8 million from $ 50.8 million in 2018 , and by 99.2 % in 2018 from $ 25.5 million in 2017. net revenues from sales in our restaurant and foodservice channel increased by 312.0 % in 2019 to $ 153.1 million from $ 37.1 million in 2018 , and by 424.0 % in 2018 from $ 7.1 million in 2017. we expect further growth in both channels as we increase our production capacity in response to demand , scale internationally , add new customers and increase sales velocities at existing customers . 52 we distribute our products internationally , using distributors in more than 65 countries worldwide as of december 31 , 2019. in 2019 , we commenced co-manufacturing in canada and also expanded our partnership with one of our distributors to co-manufacture our innovative plant-based meats at a new co-manufacturing facility built by our distributor in the netherlands , construction of which was completed in the first quarter of 2020. our international net revenues ( which exclude revenues from canada ) are included in our retail and restaurant and foodservice channels and were approximately 16 % , 8 % and 1 % , respectively , of our net revenues in 2019 , 2018 and 2017. substantially all of our long-lived story_separator_special_tag we continue to incur legal fees in connection with our ongoing efforts to resolve this dispute . see note 3 , restructuring , to the notes to financial statements , and part i , item 3 , legal proceedings , included elsewhere in this report . total other expense , net total other expense , net primarily includes interest expense on the company 's debt balances and expense associated with the remeasurement of our preferred stock warrant liability and common stock warrant liability , partially offset by interest income . on may 6 , 2019 , in connection with the ipo , our then outstanding warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for common stock . we remeasured and reclassified the common stock warrant liability to additional-paid-in-capital in connection with the ipo and recorded $ 12.5 million in expense associated with the remeasurement of warrant liability in 2019 . interest income in 2019 increased due to interest income from invested proceeds from the ipo and secondary offering . subsequent to the closing of the ipo , all outstanding warrants to purchase shares of common stock were cashless exercised . no warrants were outstanding as of december 31 , 2019 . other , net was $ 3.6 million in 2019 as compared to $ 0.4 million in 2018 primarily due to increased interest income resulting from investment of proceeds from the ipo and secondary offering . loss from operations loss from operations in 2019 was $ 0.5 million compared to loss from operations of $ 28.0 million in the prior year . this improvement was driven entirely by the year-over-year increase in gross profit , partially offset by higher operating expenses to support our expanded manufacturing and supply chain operations , higher share-based compensation expense , higher administrative costs associated with being a public company , higher restructuring expenses , and continued investment in innovation and marketing capabilities . 58 income tax expense for 2019 and 2018 , we recorded income tax expense of $ 9,000 and $ 1,000 , respectively . these amounts primarily consist of income taxes for state jurisdictions which have minimum tax requirements . no tax benefit was provided for losses incurred because those losses were offset by a full valuation allowance . net loss net loss was $ 12.4 million in 2019 compared to a net loss of $ 29.9 million in the prior year . the decrease in net loss was primarily the result of the higher gross profit in 2019 and interest income , partially offset by higher operating expenses , higher share-based compensation expense , expenses associated with the remeasurement of our preferred stock warrant liability and common stock warrant liability in connection with the ipo , and higher interest expense . year ended december 31 , 2018 compared to year ended december 31 , 2017 net revenues replace_table_token_9_th replace_table_token_10_th net revenues increased by $ 55.4 million , or 169.9 % , in 2018 as compared to 2017 primarily due to strong growth in sales volumes of products in our fresh platform across both our retail and our restaurant and foodservice channels , partially offset by a decrease in net revenues from the frozen platform . gross revenues from sales of products in our fresh platform increased $ 63.6 million , or 351.1 % , primarily due to increases in sales of the beyond burger and beyond sausage . net revenues from retail sales increased $ 25.3 million , or 99.2 % , primarily due to increase in sales of the beyond burger . net revenues from sales through our restaurant and foodservice channel increased $ 30.1 million , or 424.0 % , primarily due to increased sales of the beyond burger , which was being served in approximately 11,000 restaurant and foodservice outlets at the end of 2018 , and due to increased sales of beyond sausage in 2018. the following tables present volume of our products sold in pounds : replace_table_token_11_th 59 replace_table_token_12_th cost of goods sold year ended december 31 , change ( in thousands ) 2018 2017 amount percentage cost of goods sold $ 70,360 $ 34,772 $ 35,588 102.3 % cost of goods sold increased by $ 35.6 million , or 102.3 % , in 2018 as compared to the prior year , primarily due to the increase in the sales volume of our products and from a 103 % increase in manufacturing-related headcount to handle increased demand for our products . cost of goods sold in 2017 includes $ 2.4 million in write-off of unrecoverable inventory related to the termination of an exclusive agreement with our co-manufacturer at the time . see note 3 , restructuring , to the notes to financial statements , and part i , item 3 , legal proceedings , included elsewhere in this report . gross profit ( loss ) and gross margin replace_table_token_13_th gross profit in 2018 was $ 17.6 million compared to gross loss of $ 2.2 million in 2017 , an improvement of $ 19.8 million . the improvement in gross profit and gross margin was primarily due to an increase in the amount of products sold , resulting in the ability to leverage our fixed costs across a greater amount of revenue . the greater proportion of product revenues from our fresh platform also contributed to the improvement in margin , due to a higher net selling price per pound of products in our fresh versus frozen platform . as disclosed in note 2 , summary of significant accounting policies—shipping and handling costs , in the notes to financial statements included elsewhere in this report , we include outbound shipping and handling costs within selling , general and administrative expense . as a result , our gross profit and gross margin may not be comparable to other entities that present all shipping and handling costs as a component of cost of goods sold . research and development expenses year ended december 31 ,

net cash provided by financing activities for the year ended december 31 , 2019 , net cash provided by financing activities was $ 294.9 million primarily as a result of $ 254.9 million in net proceeds from our ipo , net of issuance costs , $ 37.4 million in net proceeds to us from the secondary offering , net of issuance costs , and $ 2.7 million in proceeds from stock option exercises , partially offset by $ 55,000 in payments of capital lease obligations . for the year ended december 31 , 2018 , net cash provided by financing activities was $ 76.2 million primarily as a result of $ 51.3 million in proceeds from the issuance of our series g and series h preferred stock , net of issuance costs , $ 20.0 million in borrowings under our 2018 term loan facility , $ 6.0 million in borrowings under our 2018 revolving credit facility , $ 5.0 million in borrowings under an equipment loan facility , and $ 1.4 million in proceeds from stock option exercises , partially offset by cash outflows for repayment of a note with the missouri department of economic development , and borrowings under our 2016 revolving credit facility and 2016 term loan facility . the proceeds from the borrowings were used to finance our operations . for the year ended december 31 , 2017 , financing activities provided $ 55.4 million in cash as a result of $ 43.3 million of proceeds from the issuance of our series f and g preferred stock , net of issuance costs , $ 10.0 million in proceeds from the issuance of convertible notes that were eventually converted into series g preferred stock , $ 2.5 million in revolving credit facility borrowings and $ 0.4 million in proceeds from stock option exercises , partially offset by payments towards our revolving credit facility borrowings and capital lease obligations . the proceeds from the borrowings were used to finance our operations . as of december 31 , 2019 , we had borrowed the entire availability of $ 20.0 million under the 2018 term loan facility and $ 6.0 million under the 2018 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. ```net cash provided by financing activities for the year ended december 31 , 2019 , net cash provided by financing activities was $ 294.9 million primarily as a result of $ 254.9 million in net proceeds from our ipo , net of issuance costs , $ 37.4 million in net proceeds to us from the secondary offering , net of issuance costs , and $ 2.7 million in proceeds from stock option exercises , partially offset by $ 55,000 in payments of capital lease obligations . for the year ended december 31 , 2018 , net cash provided by financing activities was $ 76.2 million primarily as a result of $ 51.3 million in proceeds from the issuance of our series g and series h preferred stock , net of issuance costs , $ 20.0 million in borrowings under our 2018 term loan facility , $ 6.0 million in borrowings under our 2018 revolving credit facility , $ 5.0 million in borrowings under an equipment loan facility , and $ 1.4 million in proceeds from stock option exercises , partially offset by cash outflows for repayment of a note with the missouri department of economic development , and borrowings under our 2016 revolving credit facility and 2016 term loan facility . the proceeds from the borrowings were used to finance our operations . for the year ended december 31 , 2017 , financing activities provided $ 55.4 million in cash as a result of $ 43.3 million of proceeds from the issuance of our series f and g preferred stock , net of issuance costs , $ 10.0 million in proceeds from the issuance of convertible notes that were eventually converted into series g preferred stock , $ 2.5 million in revolving credit facility borrowings and $ 0.4 million in proceeds from stock option exercises , partially offset by payments towards our revolving credit facility borrowings and capital lease obligations . the proceeds from the borrowings were used to finance our operations . as of december 31 , 2019 , we had borrowed the entire availability of $ 20.0 million under the 2018 term loan facility and $ 6.0 million under the 2018 revolving credit facility . ``` Suspicious Activity Report : the shares were sold at a public offering price of $ 160.00 per share for net proceeds to the company of approximately $ 37.4 million , after deducting underwriting discounts and commissions of $ 1.5 million and issuance costs of approximately $ 1.1 million payable by us . total secondary offering costs paid in 2019 were approximately $ 2.2 million , of which approximately $ 1.1 million was capitalized to reflect the costs associated with the issuance of new shares and offset against proceeds from the secondary offering . we did not receive any proceeds from the sale of common stock by the selling stockholders in the secondary offering . we continue to experience strong sales growth over prior periods . net revenues increased to $ 297.9 million in 2019 from $ 87.9 million in 2018 and $ 32.6 million in 2017 , representing a 202 % compound annual growth rate . the beyond burger accounted for approximately 64 % , 70 % and 48 % of our gross revenues in 2019 , 2018 and 2017 , respectively . we believe that sales of the beyond burger will continue to constitute a significant portion of our revenues , income and cash flow for the foreseeable future . we have generated losses from inception . net loss in 2019 , 2018 , and 2017 was $ 12.4 million , $ 29.9 million , and $ 30.4 million , respectively , as we invested in innovation and growth of our business . we operate on a fiscal calendar year , and each interim quarter is comprised of one 5-week period and two 4-week periods , with each week ending on a saturday . our fiscal year always begins on january 1 and ends on 51 december 31. as a result , our first and fourth fiscal quarters may have more or fewer days included than a traditional 91-day fiscal quarter . components of our results of operations and trends and other factors affecting our business net revenues we generate net revenues primarily from sales of our products to our customers across mainstream grocery , mass merchandiser , club and convenience store , and natural retailer channels , direct to consumer , and various food-away-from-home channels , including restaurants , foodservice outlets and schools , mainly in the united states . we continue to experience strong sales growth over prior periods . the following factors and trends in our business have driven net revenue growth over prior periods and are expected to be key drivers of our net revenue growth for the foreseeable future : increased penetration across our restaurant and foodservice channel , including increased desire by restaurant and foodservice establishments , including large fsr and or global qsr customers , to add plant-based products to their menus and to highlight these offerings , and our retail channel , including mainstream grocery , mass merchandiser , club and convenience store , and natural retailer customers ; distribution expansion and increased velocity of our fresh product sales across our channels , by which we mean that the volume of our products sold per outlet has generally increased period-over-period due to greater adoption of and demand for our products ; increased international sales of our products across geographies , markets and channels as we continue to grow our numbers of international customers ; our continued innovation , including enhancing existing products and introducing new products across our plant-based beef , pork and poultry platforms that appeal to a broad range of consumers , including those who typically eat animal-based meat ; enhanced marketing efforts as we continue to build our brand and drive consumer adoption of our products , including scaling our go beyond marketing campaign launched in february 2019 , which seeks to mobilize our ambassadors to help raise brand awareness , define the category and remain its leader ; overall market trends , including growing consumer awareness and demand for nutritious , convenient and high protein plant-based foods ; and increased production levels as we scale production to meet demand for our products across our distribution channels both domestically and internationally . in addition to the factors and trends above , we expect the following to positively impact net revenues going forward : expansion of our own internal production facilities domestically and abroad to produce our woven proteins , blends of flavor systems and binding systems , and potentially convert our woven proteins into packaged products , while forming additional strategic relationships with co-manufacturers ; and localized production to increase the availability and speed with which we can get our products to customers internationally . net revenues from sales in our retail channel increased by 185.2 % in 2019 to $ 144.8 million from $ 50.8 million in 2018 , and by 99.2 % in 2018 from $ 25.5 million in 2017. net revenues from sales in our restaurant and foodservice channel increased by 312.0 % in 2019 to $ 153.1 million from $ 37.1 million in 2018 , and by 424.0 % in 2018 from $ 7.1 million in 2017. we expect further growth in both channels as we increase our production capacity in response to demand , scale internationally , add new customers and increase sales velocities at existing customers . 52 we distribute our products internationally , using distributors in more than 65 countries worldwide as of december 31 , 2019. in 2019 , we commenced co-manufacturing in canada and also expanded our partnership with one of our distributors to co-manufacture our innovative plant-based meats at a new co-manufacturing facility built by our distributor in the netherlands , construction of which was completed in the first quarter of 2020. our international net revenues ( which exclude revenues from canada ) are included in our retail and restaurant and foodservice channels and were approximately 16 % , 8 % and 1 % , respectively , of our net revenues in 2019 , 2018 and 2017. substantially all of our long-lived story_separator_special_tag we continue to incur legal fees in connection with our ongoing efforts to resolve this dispute . see note 3 , restructuring , to the notes to financial statements , and part i , item 3 , legal proceedings , included elsewhere in this report . total other expense , net total other expense , net primarily includes interest expense on the company 's debt balances and expense associated with the remeasurement of our preferred stock warrant liability and common stock warrant liability , partially offset by interest income . on may 6 , 2019 , in connection with the ipo , our then outstanding warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for common stock . we remeasured and reclassified the common stock warrant liability to additional-paid-in-capital in connection with the ipo and recorded $ 12.5 million in expense associated with the remeasurement of warrant liability in 2019 . interest income in 2019 increased due to interest income from invested proceeds from the ipo and secondary offering . subsequent to the closing of the ipo , all outstanding warrants to purchase shares of common stock were cashless exercised . no warrants were outstanding as of december 31 , 2019 . other , net was $ 3.6 million in 2019 as compared to $ 0.4 million in 2018 primarily due to increased interest income resulting from investment of proceeds from the ipo and secondary offering . loss from operations loss from operations in 2019 was $ 0.5 million compared to loss from operations of $ 28.0 million in the prior year . this improvement was driven entirely by the year-over-year increase in gross profit , partially offset by higher operating expenses to support our expanded manufacturing and supply chain operations , higher share-based compensation expense , higher administrative costs associated with being a public company , higher restructuring expenses , and continued investment in innovation and marketing capabilities . 58 income tax expense for 2019 and 2018 , we recorded income tax expense of $ 9,000 and $ 1,000 , respectively . these amounts primarily consist of income taxes for state jurisdictions which have minimum tax requirements . no tax benefit was provided for losses incurred because those losses were offset by a full valuation allowance . net loss net loss was $ 12.4 million in 2019 compared to a net loss of $ 29.9 million in the prior year . the decrease in net loss was primarily the result of the higher gross profit in 2019 and interest income , partially offset by higher operating expenses , higher share-based compensation expense , expenses associated with the remeasurement of our preferred stock warrant liability and common stock warrant liability in connection with the ipo , and higher interest expense . year ended december 31 , 2018 compared to year ended december 31 , 2017 net revenues replace_table_token_9_th replace_table_token_10_th net revenues increased by $ 55.4 million , or 169.9 % , in 2018 as compared to 2017 primarily due to strong growth in sales volumes of products in our fresh platform across both our retail and our restaurant and foodservice channels , partially offset by a decrease in net revenues from the frozen platform . gross revenues from sales of products in our fresh platform increased $ 63.6 million , or 351.1 % , primarily due to increases in sales of the beyond burger and beyond sausage . net revenues from retail sales increased $ 25.3 million , or 99.2 % , primarily due to increase in sales of the beyond burger . net revenues from sales through our restaurant and foodservice channel increased $ 30.1 million , or 424.0 % , primarily due to increased sales of the beyond burger , which was being served in approximately 11,000 restaurant and foodservice outlets at the end of 2018 , and due to increased sales of beyond sausage in 2018. the following tables present volume of our products sold in pounds : replace_table_token_11_th 59 replace_table_token_12_th cost of goods sold year ended december 31 , change ( in thousands ) 2018 2017 amount percentage cost of goods sold $ 70,360 $ 34,772 $ 35,588 102.3 % cost of goods sold increased by $ 35.6 million , or 102.3 % , in 2018 as compared to the prior year , primarily due to the increase in the sales volume of our products and from a 103 % increase in manufacturing-related headcount to handle increased demand for our products . cost of goods sold in 2017 includes $ 2.4 million in write-off of unrecoverable inventory related to the termination of an exclusive agreement with our co-manufacturer at the time . see note 3 , restructuring , to the notes to financial statements , and part i , item 3 , legal proceedings , included elsewhere in this report . gross profit ( loss ) and gross margin replace_table_token_13_th gross profit in 2018 was $ 17.6 million compared to gross loss of $ 2.2 million in 2017 , an improvement of $ 19.8 million . the improvement in gross profit and gross margin was primarily due to an increase in the amount of products sold , resulting in the ability to leverage our fixed costs across a greater amount of revenue . the greater proportion of product revenues from our fresh platform also contributed to the improvement in margin , due to a higher net selling price per pound of products in our fresh versus frozen platform . as disclosed in note 2 , summary of significant accounting policies—shipping and handling costs , in the notes to financial statements included elsewhere in this report , we include outbound shipping and handling costs within selling , general and administrative expense . as a result , our gross profit and gross margin may not be comparable to other entities that present all shipping and handling costs as a component of cost of goods sold . research and development expenses year ended december 31 ,

as a result , of the $ 48 million in loan downgrades during the three months ended september 30 , 2016 , $ 13.7 million in principal payments were received and $ 2.2 million in loan upgrades were made during the fourth quarter of 2016. this represents a 33 % reduction and improvement from september 30 , 2016 to december 31 , 2016 , leaving $ 32 million in loan downgrades taken in the third quarter of 2016 that we continue to manage and currently anticipate being paid down or upgraded by the middle of 2017. during the year ended december 31 , 2016 , the company recorded income tax expense of $ 16.8 million to reflect a full valuation allowance established against its deferred tax asset . see “ results of operations—provision for income tax ” below in this item 7 for additional information . while we believe the company will generate taxable income in future periods that will eventually enable the company to release all or a portion of the valuation allowance , we are not able to assert as to the timing of that event . until such time as we are able to release the valuation allowance on our deferred tax asset , there is a material impact to future periods in that management expects this to result in minimal income tax expense . as a result of the net loss we incurred during the year ended december 31 , 2016 , our regulatory capital ratios declined during the year . notwithstanding this , the company and the bank remain well capitalized under applicable regulatory standards . see “ capital resources—regulatory capital requirements applicable to banking institutions ” below in this item 7 for further information . 31 results of operations discontinued operations in connection with our exit from the mortgage banking business in 2013 , the revenues and expenses of our mortgage banking division have been classified as discontinued operations for all periods presented . as a result , all comparisons below reflect results from continuing operations . income from discontinued operations was zero for the year s ended december 31 , 2016 and 2015 , while our income from discontinued operations was $ 1.2 million for the year ended december 31 , 2014 . we had no income from discontinued operations during the years ended december 31 , 2016 and 2015 as a result of the final wind down of the mortgage banking division during 2014. during the year ended december 31 , 2014 , we recorded a gain in the amount of $ 558 thousand on the sale of the mortgage servicing rights that we sold in april 2014 , which is included in income from discontinued operations in the consolidated statements of operations . operating results for the years ended december 31 , 2016 , 2015 , and 2014 our operating results for the year ended december 31 , 2016 , compared to december 31 , 2015 , and for the year ended december 31 , 2015 , compared to december 31 , 2014 , were as follows : replace_table_token_9_th interest income 2016 vs. 2015 . total interest income increased 5.7 % to $ 41.0 million for the year ended december 31 , 2016 from $ 38.8 million for the year ended december 31 , 2015 . this increase is primarily due to an increase in interest income on loans during the year ended december 31 , 2016 compared to the prior year due to an increase in average loan balances , as well as an increase in the average yield on loans . during the year ended december 31 , 2016 and 2015 , interest income on loans was $ 38.6 million and $ 36.7 million , respectively , yielding 4.50 % and 4.43 % on average loan balances of $ 857.7 million and $ 827.9 million , respectively . the increase in the average loan balances is attributable to an increase in loan demand . the increase in loan yield is primarily attributable to the actions of the board of governors of the federal reserve system ( “ federal reserve board ” ) to raise short-term interest rates by 25 basis points in the fourth quarter of 2016. the average yield on interest-earning assets was 3.81 % for the year ended december 31 , 2016 compared to 3.76 % for the year ended december 31 , 2015 . during the year ended december 31 , 2016 and 2015 , interest income from our securities available-for-sale and stock , was $ 1.6 million and $ 1.7 million , yielding 2.76 % and 2.63 % on average balances of $ 57.1 million and $ 65.0 million , respectively . the average securities balances decreased as a result of maturities of , and payments on , securities which we did not fully replace due to liquidity needs . interest income from our short-term investments , including our federal funds sold and interest-bearing deposits , was $ 842 thousand and $ 370 thousand for the year ended december 31 , 2016 and 2015 , respectively , yielding 0.52 % and 0.27 % on average balances of $ 162.6 million and $ 139.3 million , respectively . the increase in the average yield is attributable to the federal reserve board raising interest rates by 25 basis points in the fourth quarter of 2016. as a result , total interest income on investments increased for the year ended december 31 , 2016 . 2015 vs. 2014 . total interest income increased 1.3 % to $ 38.8 million for the year ended december 31 , 2015 from $ 38.3 million for the year ended december 31 , 2014 . this increase is primarily due to an increase in interest income on loans during the year ended december 31 , 2015 compared to the prior year due to an increase in average loan balances , partially offset by a decline in the 32 average yield on loans . story_separator_special_tag positive evidence included projected taxable income utilizing objective assumptions based on 2015 actual results , tax planning strategies , improvement in economic conditions and at least 17 years remaining on the life of our $ 8.3 million deferred tax asset generated from our net operating loss carryforward . additionally , the company has generated positive core earnings for the trailing six quarters which demonstrates the ability to be profitable in what is considered to be the company 's core business . while the decision to exit the mortgage business in 2013 did not necessarily ensure that the company would become profitable , the results provide positive evidence that the decision to exit the unprofitable business is sufficient to overcome the losses incurred in recent years . negative evidence we considered in making this determination included our three-year cumulative loss deficit and our accumulated deficit . management determined that the expectation of future taxable income supported by our recent history of positive core earnings after adjusting for aberrational items that caused our cumulative loss condition , including discontinued operations , provided enough positive evidence to outweigh the negative evidence . therefore , we concluded that it is more-likely-than-not that the existing $ 17.6 million net deferred tax asset will be realized , resulting in the reversal of the entire valuation allowance against the company 's deferred tax asset . although we do not expect to be required to pay income tax to the appropriate taxing authorities of any sizeable amount until we have depleted our net operating loss carryforwards , we expect to recognize income tax expense in our financial statements beginning in 2016 at a combined rate of approximately 41 % on our pretax income . during the year ended december 31 , 2014 , we recorded an income tax benefit of $ 608 thousand . per financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) 740-20-45-7 all sources of pre-tax income must be considered in determining the tax benefit that results from a loss from continuing operations and that shall be allocated to continuing operations . this benefit is the result of an intraperiod tax allocation where the benefit of the income tax provision that is recorded in discontinued operations and other comprehensive income created a tax benefit in continuing operations . on a net basis we recorded no income tax provision . based on the analysis performed , and the positive and negative evidence considered , management chose not to release any portion of the $ 12.1 million valuation allowance as of december 31 , 2014. positive evidence included improvement in our asset quality , tax planning strategies , projected taxable income , and improvement in economic conditions . negative evidence included historical operating losses . management determined the negative evidence was significant enough that until such time as we are in continuous periods of pre-tax income we would not make any reversals of our valuation allowance ; however , we did conclude that it is more-likely-than-not that the existing $ 5.9 million net deferred tax asset will be realized . see `` – critical accounting policies - utilization and valuation of deferred income tax benefits ” below for additional information regarding our deferred tax asset . financial condition assets our total consolidated assets increased by $ 78 million at december 31 , 2016 from $ 1.1 billion at december 31 , 2015 . the following table sets forth the composition of our interest earning assets at : 38 replace_table_token_14_th ( 1 ) includes interest-earning balances maintained at the federal reserve bank of san francisco ( “ frbsf ” ) . securities available for sale securities available for sale . securities that we intend to hold for an indefinite period of time , but which may be sold in response to changes in liquidity needs , interest rates , or prepayment risks or other similar factors , are classified as “ securities available for sale ” . such securities are recorded on our balance sheet at their respective fair values and increases or decreases in those values are recorded as unrealized gains or losses , respectively , and are reported as other comprehensive income ( loss ) on our accompanying consolidated balance sheet , rather than included in or deducted from our earnings . the following is a summary of the major components of securities available for sale and a comparison of the amortized cost , estimated fair values and the gross unrealized gains and losses attributable to those securities , as of december 31 , 2016 , 2015 and 2014 : replace_table_token_15_th at december 31 , 2016 , 2015 and 2014 , u.s. agency mortgage backed securities and collateralized mortgage obligations with an aggregate fair market value of $ 21.1 million , $ 2.9 million and $ 3.6 million , respectively , were pledged to secure fhlb borrowings , repurchase agreements , local agency deposits and treasury , tax and loan accounts . the amortized cost of securities available for sale at december 31 , 2016 is shown in the table below by contractual maturities taking into consideration historical prepayments based on the prior twelve months of principal payments . expected maturities will differ from contractual maturities and historical prepayments , particularly with respect to collateralized mortgage 39 obligations , primarily because prepayment rates are affected by changes in conditions in the interest rate market and , therefore , future prepayment rates may differ from historical prepayment rates . december 31 , 2016 maturing in one year or less over one year through five years over five years through ten years over ten years total ( dollars in thousands ) amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield securities available for sale : residential mortgage backed securities issued by u.s. agencies $ 7,584 1.37 % $ 19,014 1.43 % $ 9,933

cash flow used in investing activities . in 2016 , investing activities used net cash of $ 92.3 million , primarily attributable to $ 101.3 million used to fund an increase in loans , partially offset by $ 8.2 million of cash from maturities of and principal payments on securities available for sale , a $ 996 thousand decrease in our interest bearing time deposits with financial institutions and $ 757 thousand of proceeds from sales of oreo . in 2015 , investing activities used net cash of $ 14.4 million , primarily attributable to $ 25.2 million used to fund an increase in loans , partially offset by $ 8.4 million of cash from maturities of and principal payments on securities available for sale , $ 2.1 million of cash from principal payments on other investments and $ 1.2 million of proceeds from sales of oreo . cash flow provided by ( used in ) financing activities . in 2016 , financing activities provided net cash of $ 112.9 million , consisting primarily of a $ 82.9 million net increase in noninterest bearing deposits and a $ 24.6 million net increase in interest bearing deposits , which resulted from a decision to increase our core deposit base , and a $ 5.0 million net increase in borrowings . in 2015 , financing activities used net cash of $ 50.8 million , consisting primarily of a $ 34.7 million net decrease in interest bearing deposits , which resulted from a decision to increase our core deposit base , which included the transition of a portion of our certificates of deposit customers to savings account customers , and a $ 29.5 million decrease in borrowings , partially offset by an increase in noninterest bearing deposits of $ 12.2 million . ratio of loans to deposits . the relationship between gross loans and total deposits can provide a useful measure of a bank 's liquidity . since repayment of loans tends to be less predictable than the maturity of investments and other liquid resources , the higher the loan-to-deposit ratio the less liquid are our 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 flow used in investing activities . in 2016 , investing activities used net cash of $ 92.3 million , primarily attributable to $ 101.3 million used to fund an increase in loans , partially offset by $ 8.2 million of cash from maturities of and principal payments on securities available for sale , a $ 996 thousand decrease in our interest bearing time deposits with financial institutions and $ 757 thousand of proceeds from sales of oreo . in 2015 , investing activities used net cash of $ 14.4 million , primarily attributable to $ 25.2 million used to fund an increase in loans , partially offset by $ 8.4 million of cash from maturities of and principal payments on securities available for sale , $ 2.1 million of cash from principal payments on other investments and $ 1.2 million of proceeds from sales of oreo . cash flow provided by ( used in ) financing activities . in 2016 , financing activities provided net cash of $ 112.9 million , consisting primarily of a $ 82.9 million net increase in noninterest bearing deposits and a $ 24.6 million net increase in interest bearing deposits , which resulted from a decision to increase our core deposit base , and a $ 5.0 million net increase in borrowings . in 2015 , financing activities used net cash of $ 50.8 million , consisting primarily of a $ 34.7 million net decrease in interest bearing deposits , which resulted from a decision to increase our core deposit base , which included the transition of a portion of our certificates of deposit customers to savings account customers , and a $ 29.5 million decrease in borrowings , partially offset by an increase in noninterest bearing deposits of $ 12.2 million . ratio of loans to deposits . the relationship between gross loans and total deposits can provide a useful measure of a bank 's liquidity . since repayment of loans tends to be less predictable than the maturity of investments and other liquid resources , the higher the loan-to-deposit ratio the less liquid are our assets . ``` Suspicious Activity Report : as a result , of the $ 48 million in loan downgrades during the three months ended september 30 , 2016 , $ 13.7 million in principal payments were received and $ 2.2 million in loan upgrades were made during the fourth quarter of 2016. this represents a 33 % reduction and improvement from september 30 , 2016 to december 31 , 2016 , leaving $ 32 million in loan downgrades taken in the third quarter of 2016 that we continue to manage and currently anticipate being paid down or upgraded by the middle of 2017. during the year ended december 31 , 2016 , the company recorded income tax expense of $ 16.8 million to reflect a full valuation allowance established against its deferred tax asset . see “ results of operations—provision for income tax ” below in this item 7 for additional information . while we believe the company will generate taxable income in future periods that will eventually enable the company to release all or a portion of the valuation allowance , we are not able to assert as to the timing of that event . until such time as we are able to release the valuation allowance on our deferred tax asset , there is a material impact to future periods in that management expects this to result in minimal income tax expense . as a result of the net loss we incurred during the year ended december 31 , 2016 , our regulatory capital ratios declined during the year . notwithstanding this , the company and the bank remain well capitalized under applicable regulatory standards . see “ capital resources—regulatory capital requirements applicable to banking institutions ” below in this item 7 for further information . 31 results of operations discontinued operations in connection with our exit from the mortgage banking business in 2013 , the revenues and expenses of our mortgage banking division have been classified as discontinued operations for all periods presented . as a result , all comparisons below reflect results from continuing operations . income from discontinued operations was zero for the year s ended december 31 , 2016 and 2015 , while our income from discontinued operations was $ 1.2 million for the year ended december 31 , 2014 . we had no income from discontinued operations during the years ended december 31 , 2016 and 2015 as a result of the final wind down of the mortgage banking division during 2014. during the year ended december 31 , 2014 , we recorded a gain in the amount of $ 558 thousand on the sale of the mortgage servicing rights that we sold in april 2014 , which is included in income from discontinued operations in the consolidated statements of operations . operating results for the years ended december 31 , 2016 , 2015 , and 2014 our operating results for the year ended december 31 , 2016 , compared to december 31 , 2015 , and for the year ended december 31 , 2015 , compared to december 31 , 2014 , were as follows : replace_table_token_9_th interest income 2016 vs. 2015 . total interest income increased 5.7 % to $ 41.0 million for the year ended december 31 , 2016 from $ 38.8 million for the year ended december 31 , 2015 . this increase is primarily due to an increase in interest income on loans during the year ended december 31 , 2016 compared to the prior year due to an increase in average loan balances , as well as an increase in the average yield on loans . during the year ended december 31 , 2016 and 2015 , interest income on loans was $ 38.6 million and $ 36.7 million , respectively , yielding 4.50 % and 4.43 % on average loan balances of $ 857.7 million and $ 827.9 million , respectively . the increase in the average loan balances is attributable to an increase in loan demand . the increase in loan yield is primarily attributable to the actions of the board of governors of the federal reserve system ( “ federal reserve board ” ) to raise short-term interest rates by 25 basis points in the fourth quarter of 2016. the average yield on interest-earning assets was 3.81 % for the year ended december 31 , 2016 compared to 3.76 % for the year ended december 31 , 2015 . during the year ended december 31 , 2016 and 2015 , interest income from our securities available-for-sale and stock , was $ 1.6 million and $ 1.7 million , yielding 2.76 % and 2.63 % on average balances of $ 57.1 million and $ 65.0 million , respectively . the average securities balances decreased as a result of maturities of , and payments on , securities which we did not fully replace due to liquidity needs . interest income from our short-term investments , including our federal funds sold and interest-bearing deposits , was $ 842 thousand and $ 370 thousand for the year ended december 31 , 2016 and 2015 , respectively , yielding 0.52 % and 0.27 % on average balances of $ 162.6 million and $ 139.3 million , respectively . the increase in the average yield is attributable to the federal reserve board raising interest rates by 25 basis points in the fourth quarter of 2016. as a result , total interest income on investments increased for the year ended december 31 , 2016 . 2015 vs. 2014 . total interest income increased 1.3 % to $ 38.8 million for the year ended december 31 , 2015 from $ 38.3 million for the year ended december 31 , 2014 . this increase is primarily due to an increase in interest income on loans during the year ended december 31 , 2015 compared to the prior year due to an increase in average loan balances , partially offset by a decline in the 32 average yield on loans . story_separator_special_tag positive evidence included projected taxable income utilizing objective assumptions based on 2015 actual results , tax planning strategies , improvement in economic conditions and at least 17 years remaining on the life of our $ 8.3 million deferred tax asset generated from our net operating loss carryforward . additionally , the company has generated positive core earnings for the trailing six quarters which demonstrates the ability to be profitable in what is considered to be the company 's core business . while the decision to exit the mortgage business in 2013 did not necessarily ensure that the company would become profitable , the results provide positive evidence that the decision to exit the unprofitable business is sufficient to overcome the losses incurred in recent years . negative evidence we considered in making this determination included our three-year cumulative loss deficit and our accumulated deficit . management determined that the expectation of future taxable income supported by our recent history of positive core earnings after adjusting for aberrational items that caused our cumulative loss condition , including discontinued operations , provided enough positive evidence to outweigh the negative evidence . therefore , we concluded that it is more-likely-than-not that the existing $ 17.6 million net deferred tax asset will be realized , resulting in the reversal of the entire valuation allowance against the company 's deferred tax asset . although we do not expect to be required to pay income tax to the appropriate taxing authorities of any sizeable amount until we have depleted our net operating loss carryforwards , we expect to recognize income tax expense in our financial statements beginning in 2016 at a combined rate of approximately 41 % on our pretax income . during the year ended december 31 , 2014 , we recorded an income tax benefit of $ 608 thousand . per financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) 740-20-45-7 all sources of pre-tax income must be considered in determining the tax benefit that results from a loss from continuing operations and that shall be allocated to continuing operations . this benefit is the result of an intraperiod tax allocation where the benefit of the income tax provision that is recorded in discontinued operations and other comprehensive income created a tax benefit in continuing operations . on a net basis we recorded no income tax provision . based on the analysis performed , and the positive and negative evidence considered , management chose not to release any portion of the $ 12.1 million valuation allowance as of december 31 , 2014. positive evidence included improvement in our asset quality , tax planning strategies , projected taxable income , and improvement in economic conditions . negative evidence included historical operating losses . management determined the negative evidence was significant enough that until such time as we are in continuous periods of pre-tax income we would not make any reversals of our valuation allowance ; however , we did conclude that it is more-likely-than-not that the existing $ 5.9 million net deferred tax asset will be realized . see `` – critical accounting policies - utilization and valuation of deferred income tax benefits ” below for additional information regarding our deferred tax asset . financial condition assets our total consolidated assets increased by $ 78 million at december 31 , 2016 from $ 1.1 billion at december 31 , 2015 . the following table sets forth the composition of our interest earning assets at : 38 replace_table_token_14_th ( 1 ) includes interest-earning balances maintained at the federal reserve bank of san francisco ( “ frbsf ” ) . securities available for sale securities available for sale . securities that we intend to hold for an indefinite period of time , but which may be sold in response to changes in liquidity needs , interest rates , or prepayment risks or other similar factors , are classified as “ securities available for sale ” . such securities are recorded on our balance sheet at their respective fair values and increases or decreases in those values are recorded as unrealized gains or losses , respectively , and are reported as other comprehensive income ( loss ) on our accompanying consolidated balance sheet , rather than included in or deducted from our earnings . the following is a summary of the major components of securities available for sale and a comparison of the amortized cost , estimated fair values and the gross unrealized gains and losses attributable to those securities , as of december 31 , 2016 , 2015 and 2014 : replace_table_token_15_th at december 31 , 2016 , 2015 and 2014 , u.s. agency mortgage backed securities and collateralized mortgage obligations with an aggregate fair market value of $ 21.1 million , $ 2.9 million and $ 3.6 million , respectively , were pledged to secure fhlb borrowings , repurchase agreements , local agency deposits and treasury , tax and loan accounts . the amortized cost of securities available for sale at december 31 , 2016 is shown in the table below by contractual maturities taking into consideration historical prepayments based on the prior twelve months of principal payments . expected maturities will differ from contractual maturities and historical prepayments , particularly with respect to collateralized mortgage 39 obligations , primarily because prepayment rates are affected by changes in conditions in the interest rate market and , therefore , future prepayment rates may differ from historical prepayment rates . december 31 , 2016 maturing in one year or less over one year through five years over five years through ten years over ten years total ( dollars in thousands ) amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield amortized cost weighted average yield securities available for sale : residential mortgage backed securities issued by u.s. agencies $ 7,584 1.37 % $ 19,014 1.43 % $ 9,933

while we have historically generated the substantial majority of our revenues from companies in the life science industry , we have also grown our base of technology customers and intend to continue to focus on increasing the revenues from customers in the technology industry . our most significant customers in any given period generally vary from period to period due to the timing of implementation and related revenue recognition over those periods of larger projects . during the fiscal year ended september 30 , 2013 , two customers , merck & co. , inc. and johnson & johnson health services , inc. , accounted for approximately 12 % each of our total revenues . during the fiscal year ended september 30 , 2012 , two customers accounted for approximately 14 % and 10 % of our total revenues , respectively . during the fiscal year ended september 30 , 2011 , two customers accounted for 15 % and 12 % of our total revenues , respectively . for the fiscal year ended september 30 , 2013 , approximately 14 % of our revenues were derived from customers located outside the united states . for the fiscal years ended september 30 , 2011 , 2012 and 2013 , our revenues were $ 65.2 million , $ 84.3 million and $ 101.9 million , respectively , representing year-over-year growth of approximately 21 % from 2012 to 2013 and year-over-year growth of approximately 29 % from 2011 to 2012. as announced in september 2013 , we recently experienced challenges in sales execution and do not anticipate maintaining this growth rate throughout our 2014 fiscal year . on september 30 , 2013 , the company commenced a plan to align its workforce with the company 's strategic initiatives . the company recorded a workforce reduction restructuring charge of $ 1.2 million in connection with the alignment . 42 key business metrics in addition to the measures of financial performance presented in our consolidated financial statements , we use certain key metrics to evaluate and manage our business , including four-quarter revenues from current customers and adjusted ebitda . we use these key metrics internally to manage the business , and we believe they are useful for investors to compare key financial data from various periods . four-quarter revenues from existing customers we derive a large majority of revenues from existing customers , which we define as customers from which we have generated revenues in each of the preceding four quarters , which would exclude historical customers of leapfrogrx . we measure four-quarter revenues from our existing license and subscription customers by calculating the sum of revenues recognized during the last four quarters from any customer that has contributed revenue in each of the preceding four quarters . we believe four-quarter revenues from existing customers provide us and investors with a metric to measure the historical revenue visibility in our business . we also use this metric internally to understand the proportion of revenues being generated in any period from existing customers as compared to entirely new customers or customers with whom we have not been recently engaged . this measure helps us guide our sales activities and establish budgets and operational goals for our sales function . our four-quarter revenues from existing customers for the periods presented were as follows : replace_table_token_6_th non-gaap financial measure adjusted ebitda adjusted ebitda is a financial measure that is not calculated in accordance with generally accepted accounting principles in the united states ( u.s. gaap ) . we define adjusted ebitda as net loss before leapfrogrx compensation charges , as discussed below , stock-based compensation , depreciation and amortization , interest expense , net , other income ( expenses ) , net , and provision for income taxes . we believe adjusted ebitda provides investors with consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our operating results and our competitors ' operating results . we also use this measure internally to establish budgets and operational goals to manage our business and evaluate our performance . we understand that , although adjusted ebitda is frequently used by investors and securities analysts in their evaluations of companies , adjusted ebitda has limitations as an analytical tool , and it should not be considered in isolation or as a substitute for analysis of our results of operations as reported under u.s. gaap . these limitations include : adjusted ebitda does not include the effect of the leapfrogrx compensation charges , which are a cash expense ; adjusted ebitda does not reflect stock-based compensation expense ; depreciation and amortization are non-cash charges , and the assets being depreciated or amortized will often have to be replaced in the future ; adjusted ebitda does not reflect any cash requirements for these replacements ; 43 adjusted ebitda does not reflect restructuring expense ; adjusted ebitda does not reflect cash requirements for income taxes and the cash impact of other income or expense ; and other companies in our industry may calculate adjusted ebitda differently than we do , limiting its usefulness as a comparative measure . replace_table_token_7_th adjusted ebitda was $ 9.6 million , $ 5.0 million and $ 4.4 million for the fiscal years ended september 30 , 2013 , 2012 and 2011 , respectively . our adjusted ebitda for the fiscal years ended september 30 , 2013 and 2012 increased primarily due to increases in total revenues , which were partially offset by increased expenses . the increase in expenses was primarily due to increases in personnel costs arising principally from headcount and salary increases and increased use of third-party contractors . key components of results of operations revenues revenues are comprised of license and implementation revenues and saas and maintenance revenues . story_separator_special_tag sales and marketing sales and marketing expenses increased by $ 5.7 million , or 41 % , to $ 19.6 million during the fiscal year ended september 30 , 2012 as compared to $ 13.9 million for the fiscal year ended september 30 , 2011. the increase was primarily the result of an increase of $ 5.1 million in personnel costs due primarily to increased headcount , including personnel from leapfrogrx , an increase of $ 0.3 million in expenses related to direct marketing events and an increase of $ 0.3 million in travel-related expenses . the increase in personnel costs includes $ 1.1 million of leapfrogrx compensation charges and an increase of $ 1.0 million in stock-based compensation expense . general and administrative general and administrative expenses increased $ 2.7 million , or 35 % , to $ 10.6 million during the fiscal year ended september 30 , 2012 as compared to $ 7.9 million for the fiscal year ended september 30 , 2011. this increase was primarily due to an increase in personnel costs due to increased headcount , including personnel from leapfrogrx . the increase in personnel costs includes $ 0.7 million of leapfrogrx compensation charges . 52 interest and other expense , net replace_table_token_19_th interest expense , net primarily relates to financing costs related to our term loan and capital leases . other expense , net increased primarily due to an increase of $ 0.3 million in changes in the fair value of a convertible preferred stock warrant during the fiscal year ended september 30 , 2012 as compared to the fiscal year ended september 30 , 2011. provision for income taxes replace_table_token_20_th provision for income taxes increased $ 0.1 million to $ 0.3 million for the fiscal year ended september 30 , 2012 as compared to $ 0.2 million for the fiscal year ended september 30 , 2011. this change was primarily the result of an increase in the income tax provision in foreign jurisdictions due to an increase in income from our foreign operations . for the fiscal year ended september 30 , 2012 , the tax expense computed using the statutory federal tax rate would have been a benefit of $ 1.8 million as compared to the income tax provision of $ 0.3 million . the difference was primarily due to the valuation allowance , partially offset by research and development tax credits and state taxes net of federal benefit . for the fiscal year ended september 30 , 2011 , the tax expense computed using the statutory federal tax rate would have been an expense of $ 0.6 million as compared to the income tax provision of $ 0.2 million . the difference was primarily due to the valuation allowance and research and development tax credits , partially offset by permanent differences for expenses not deductible for tax purposes and a change in the state effective rate . quarterly results of operations ( unaudited ) the following table sets forth our unaudited quarterly statements of operations data for the last eight fiscal quarters . the information for each of these quarters has been prepared on the same basis as the audited annual financial statements included elsewhere in this annual report and , in the opinion of management , includes all adjustments , which includes only 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 53 statements and related notes included elsewhere in this annual report . these quarterly operating results are not necessarily indicative of our operating results for any future period . replace_table_token_21_th 54 replace_table_token_22_th liquidity and capital resources as of september 30 , 2013 , we had cash and cash equivalents of $ 103.4 million . since inception , we have financed our operations primarily through proceeds from the issuance of capital stock and since 2006 through cash flows from operations . we expended cash flows in operating activities in the fiscal year ended september 30 , 2013 of $ 0.4 million and generated cash flows from operating activities in the fiscal years ended september 30 , 2012 and 2011 of $ 5.7 million and $ 3.1 million , respectively . we believe our current cash and cash equivalents are sufficient to meet our cash needs for at least the next twelve months . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , and the timing and extent of spending to support research and development efforts and expansion of our business and capital expenditures for the purchase of computer hardware and software . to the extent that existing cash and cash equivalents and cash from operations are insufficient to fund our future activities , we may elect to raise additional capital through the sale of additional equity or debt securities , obtain a credit facility or sell certain assets . if additional funds are raised through the issuance of debt securities , these securities could have rights , preferences and privileges senior to holders of common stock , and terms of any debt could impose restrictions on our operations . the sale of additional equity or convertible debt securities could result in additional dilution to our stockholders and additional financing may not be available in amounts or on terms acceptable to us . we may also seek to invest in or acquire complementary businesses or technologies , any of which could also require us to seek additional equity or debt financing . additional funds may not be available on terms favorable to us or at all . 55 story_separator_special_tag margin-bottom:0pt ; font-size:10pt ; font-family : times new roman `` > contractual obligations the following summarizes our contractual obligations as of september 30 , 2013 : replace_table_token_24_th ( 1 ) operating lease obligations represent our obligations to make payments under the lease agreements

cash flows replace_table_token_23_th initial public offering on march 25 , 2013 , we closed our ipo whereby 7,751,000 shares of common stock were sold to the public ( inclusive of 1,011,000 shares of common stock pursuant to the full exercise of an overallotment option granted to the underwriters ) . the aggregate net proceeds received by us from the ipo were $ 101.1 million , net of underwriting discounts and commissions . cash flows from operating activities net cash used in operating activities was $ 0.4 million for the fiscal year ended september 30 , 2013. net cash provided by operating activities was $ 5.7 million for the fiscal year ended september 30 , 2012 , compared to $ 3.1 million for the fiscal year ended september 30 , 2011. net cash of $ 0.4 million used in operating activities during the fiscal year ended september 30 , 2013 was principally the result of our net loss of $ 0.9 million and a net change of $ 7.4 million in operating assets and liabilities , partially offset by non-cash adjustments such as stock-based compensation , depreciation and amortization , changes in fair value of preferred stock warrant liability etc . aggregating to $ 7.9 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. ```cash flows replace_table_token_23_th initial public offering on march 25 , 2013 , we closed our ipo whereby 7,751,000 shares of common stock were sold to the public ( inclusive of 1,011,000 shares of common stock pursuant to the full exercise of an overallotment option granted to the underwriters ) . the aggregate net proceeds received by us from the ipo were $ 101.1 million , net of underwriting discounts and commissions . cash flows from operating activities net cash used in operating activities was $ 0.4 million for the fiscal year ended september 30 , 2013. net cash provided by operating activities was $ 5.7 million for the fiscal year ended september 30 , 2012 , compared to $ 3.1 million for the fiscal year ended september 30 , 2011. net cash of $ 0.4 million used in operating activities during the fiscal year ended september 30 , 2013 was principally the result of our net loss of $ 0.9 million and a net change of $ 7.4 million in operating assets and liabilities , partially offset by non-cash adjustments such as stock-based compensation , depreciation and amortization , changes in fair value of preferred stock warrant liability etc . aggregating to $ 7.9 million . ``` Suspicious Activity Report : while we have historically generated the substantial majority of our revenues from companies in the life science industry , we have also grown our base of technology customers and intend to continue to focus on increasing the revenues from customers in the technology industry . our most significant customers in any given period generally vary from period to period due to the timing of implementation and related revenue recognition over those periods of larger projects . during the fiscal year ended september 30 , 2013 , two customers , merck & co. , inc. and johnson & johnson health services , inc. , accounted for approximately 12 % each of our total revenues . during the fiscal year ended september 30 , 2012 , two customers accounted for approximately 14 % and 10 % of our total revenues , respectively . during the fiscal year ended september 30 , 2011 , two customers accounted for 15 % and 12 % of our total revenues , respectively . for the fiscal year ended september 30 , 2013 , approximately 14 % of our revenues were derived from customers located outside the united states . for the fiscal years ended september 30 , 2011 , 2012 and 2013 , our revenues were $ 65.2 million , $ 84.3 million and $ 101.9 million , respectively , representing year-over-year growth of approximately 21 % from 2012 to 2013 and year-over-year growth of approximately 29 % from 2011 to 2012. as announced in september 2013 , we recently experienced challenges in sales execution and do not anticipate maintaining this growth rate throughout our 2014 fiscal year . on september 30 , 2013 , the company commenced a plan to align its workforce with the company 's strategic initiatives . the company recorded a workforce reduction restructuring charge of $ 1.2 million in connection with the alignment . 42 key business metrics in addition to the measures of financial performance presented in our consolidated financial statements , we use certain key metrics to evaluate and manage our business , including four-quarter revenues from current customers and adjusted ebitda . we use these key metrics internally to manage the business , and we believe they are useful for investors to compare key financial data from various periods . four-quarter revenues from existing customers we derive a large majority of revenues from existing customers , which we define as customers from which we have generated revenues in each of the preceding four quarters , which would exclude historical customers of leapfrogrx . we measure four-quarter revenues from our existing license and subscription customers by calculating the sum of revenues recognized during the last four quarters from any customer that has contributed revenue in each of the preceding four quarters . we believe four-quarter revenues from existing customers provide us and investors with a metric to measure the historical revenue visibility in our business . we also use this metric internally to understand the proportion of revenues being generated in any period from existing customers as compared to entirely new customers or customers with whom we have not been recently engaged . this measure helps us guide our sales activities and establish budgets and operational goals for our sales function . our four-quarter revenues from existing customers for the periods presented were as follows : replace_table_token_6_th non-gaap financial measure adjusted ebitda adjusted ebitda is a financial measure that is not calculated in accordance with generally accepted accounting principles in the united states ( u.s. gaap ) . we define adjusted ebitda as net loss before leapfrogrx compensation charges , as discussed below , stock-based compensation , depreciation and amortization , interest expense , net , other income ( expenses ) , net , and provision for income taxes . we believe adjusted ebitda provides investors with consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our operating results and our competitors ' operating results . we also use this measure internally to establish budgets and operational goals to manage our business and evaluate our performance . we understand that , although adjusted ebitda is frequently used by investors and securities analysts in their evaluations of companies , adjusted ebitda has limitations as an analytical tool , and it should not be considered in isolation or as a substitute for analysis of our results of operations as reported under u.s. gaap . these limitations include : adjusted ebitda does not include the effect of the leapfrogrx compensation charges , which are a cash expense ; adjusted ebitda does not reflect stock-based compensation expense ; depreciation and amortization are non-cash charges , and the assets being depreciated or amortized will often have to be replaced in the future ; adjusted ebitda does not reflect any cash requirements for these replacements ; 43 adjusted ebitda does not reflect restructuring expense ; adjusted ebitda does not reflect cash requirements for income taxes and the cash impact of other income or expense ; and other companies in our industry may calculate adjusted ebitda differently than we do , limiting its usefulness as a comparative measure . replace_table_token_7_th adjusted ebitda was $ 9.6 million , $ 5.0 million and $ 4.4 million for the fiscal years ended september 30 , 2013 , 2012 and 2011 , respectively . our adjusted ebitda for the fiscal years ended september 30 , 2013 and 2012 increased primarily due to increases in total revenues , which were partially offset by increased expenses . the increase in expenses was primarily due to increases in personnel costs arising principally from headcount and salary increases and increased use of third-party contractors . key components of results of operations revenues revenues are comprised of license and implementation revenues and saas and maintenance revenues . story_separator_special_tag sales and marketing sales and marketing expenses increased by $ 5.7 million , or 41 % , to $ 19.6 million during the fiscal year ended september 30 , 2012 as compared to $ 13.9 million for the fiscal year ended september 30 , 2011. the increase was primarily the result of an increase of $ 5.1 million in personnel costs due primarily to increased headcount , including personnel from leapfrogrx , an increase of $ 0.3 million in expenses related to direct marketing events and an increase of $ 0.3 million in travel-related expenses . the increase in personnel costs includes $ 1.1 million of leapfrogrx compensation charges and an increase of $ 1.0 million in stock-based compensation expense . general and administrative general and administrative expenses increased $ 2.7 million , or 35 % , to $ 10.6 million during the fiscal year ended september 30 , 2012 as compared to $ 7.9 million for the fiscal year ended september 30 , 2011. this increase was primarily due to an increase in personnel costs due to increased headcount , including personnel from leapfrogrx . the increase in personnel costs includes $ 0.7 million of leapfrogrx compensation charges . 52 interest and other expense , net replace_table_token_19_th interest expense , net primarily relates to financing costs related to our term loan and capital leases . other expense , net increased primarily due to an increase of $ 0.3 million in changes in the fair value of a convertible preferred stock warrant during the fiscal year ended september 30 , 2012 as compared to the fiscal year ended september 30 , 2011. provision for income taxes replace_table_token_20_th provision for income taxes increased $ 0.1 million to $ 0.3 million for the fiscal year ended september 30 , 2012 as compared to $ 0.2 million for the fiscal year ended september 30 , 2011. this change was primarily the result of an increase in the income tax provision in foreign jurisdictions due to an increase in income from our foreign operations . for the fiscal year ended september 30 , 2012 , the tax expense computed using the statutory federal tax rate would have been a benefit of $ 1.8 million as compared to the income tax provision of $ 0.3 million . the difference was primarily due to the valuation allowance , partially offset by research and development tax credits and state taxes net of federal benefit . for the fiscal year ended september 30 , 2011 , the tax expense computed using the statutory federal tax rate would have been an expense of $ 0.6 million as compared to the income tax provision of $ 0.2 million . the difference was primarily due to the valuation allowance and research and development tax credits , partially offset by permanent differences for expenses not deductible for tax purposes and a change in the state effective rate . quarterly results of operations ( unaudited ) the following table sets forth our unaudited quarterly statements of operations data for the last eight fiscal quarters . the information for each of these quarters has been prepared on the same basis as the audited annual financial statements included elsewhere in this annual report and , in the opinion of management , includes all adjustments , which includes only 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 53 statements and related notes included elsewhere in this annual report . these quarterly operating results are not necessarily indicative of our operating results for any future period . replace_table_token_21_th 54 replace_table_token_22_th liquidity and capital resources as of september 30 , 2013 , we had cash and cash equivalents of $ 103.4 million . since inception , we have financed our operations primarily through proceeds from the issuance of capital stock and since 2006 through cash flows from operations . we expended cash flows in operating activities in the fiscal year ended september 30 , 2013 of $ 0.4 million and generated cash flows from operating activities in the fiscal years ended september 30 , 2012 and 2011 of $ 5.7 million and $ 3.1 million , respectively . we believe our current cash and cash equivalents are sufficient to meet our cash needs for at least the next twelve months . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , and the timing and extent of spending to support research and development efforts and expansion of our business and capital expenditures for the purchase of computer hardware and software . to the extent that existing cash and cash equivalents and cash from operations are insufficient to fund our future activities , we may elect to raise additional capital through the sale of additional equity or debt securities , obtain a credit facility or sell certain assets . if additional funds are raised through the issuance of debt securities , these securities could have rights , preferences and privileges senior to holders of common stock , and terms of any debt could impose restrictions on our operations . the sale of additional equity or convertible debt securities could result in additional dilution to our stockholders and additional financing may not be available in amounts or on terms acceptable to us . we may also seek to invest in or acquire complementary businesses or technologies , any of which could also require us to seek additional equity or debt financing . additional funds may not be available on terms favorable to us or at all . 55 story_separator_special_tag margin-bottom:0pt ; font-size:10pt ; font-family : times new roman `` > contractual obligations the following summarizes our contractual obligations as of september 30 , 2013 : replace_table_token_24_th ( 1 ) operating lease obligations represent our obligations to make payments under the lease agreements

in addition , we have agreed to indemnify rsi and rsg , respectively , and their respective affiliates and officers , employees and directors against all losses arising out of , due to or in connection with the receipt of services under the applicable services agreement , subject to certain limitations set forth in the applicable services agreement . such indemnification obligations will not exceed the payments made by us under the applicable services agreement for the specific service that allegedly caused or was related to the losses during the period in which such alleged losses were incurred . the term of each of the services agreements will continue until terminated upon 90 days ' written notice by any party with respect to the services such party provides or receives thereunder . for the years ended march 31 , 2019 and 2018 , we incurred expenses of $ 5.1 million and $ 8.5 million , respectively , under the services agreements , inclusive of the mark-up , which includes a portion of the expenses incurred by rsi and rsl on behalf of us that have been treated as capital contributions . we have recorded these charges as research and development expense and general and administrative expense in our consolidated statements of operations . 81 financial operations overview revenue we have not generated any revenue from the sale of any products , and we do not expect to generate any revenue unless and until we obtain regulatory approval of and begin to commercialize one of our gene therapy product candidates in development . research and development expense since our inception , our operations have primarily been focused on organizing and staffing our company , raising capital , and acquiring , preparing for and advancing our product candidates into clinical development . our research and development expenses include program-specific costs as well as unallocated internal costs . program-specific costs include : direct third-party costs , which include expenses incurred under agreements with cros and contract manufacturing organizations , the cost of consultants who assist with the development of our product candidates on a program-specific basis , investigator grants , sponsored research , manufacturing costs in connection with producing materials for use in conducting nonclinical and clinical studies , and any other third-party expenses directly attributable to the development of our product candidates ; and upfront payments for the purchase of in-process research and development , which include costs incurred under our agreements with oxford biomedica and umms , as well as costs incurred for our discontinued axo-aav-opmd , intepirdine and nelotanserin programs . unallocated internal costs include : share-based compensation expense for research and development personnel , including expense related to rsl common share awards and rsl options issued by rsl to rsi and rsg employees ; personnel-related expenses , which include employee-related expenses , such as salaries , benefits and travel expenses , for research and development personnel ; costs allocated to us under our services agreements with rsi and rsg ; and other expenses , which includes the cost of consultants who assist with our research and development but are not allocated to a specific program . research and development activities will continue to be central to our business model . we expect our research and development expense to increase as we advance our current gene therapy product candidate programs and additional product candidates we may in-license or acquire as we pursue our updated business plan . for the year ended march 31 , 2019 , the majority of our research and development expenses have been associated with our gene therapy product candidates . for the year ended march 31 , 2018 , the majority of our research and development expenses were associated with advancing intepirdine . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . the duration , costs and timing of clinical trials of our products in development and any other product candidates will depend on a variety of factors that include , but are not limited to , the following : the number of trials required for approval ; the per patient trial costs ; the number of patients who 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 dose that patients receive ; 82 the drop-out or discontinuation rates of patients ; the potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; the timing and receipt of regulatory approvals ; and the efficacy and safety profile of the product candidates . in addition , the probability of success of our gene therapy products in development and any other product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval of our gene therapy product candidates for any indication in any country . as a result of the uncertainties discussed above , we are unable to determine in advance the duration and completion costs of any clinical trial we conduct , or when and to what extent we will generate revenue from the commercialization and sale of our products in development or other product candidates , if at all . general and administrative expense general and administrative expenses consist primarily of share-based compensation , legal and accounting fees , consulting services , services received under the services agreements with rsi and rsg and employee-related expenses , such as salaries , benefits and travel expenses , for general and administrative personnel . story_separator_special_tag upon the occurrence of an event of default , a default interest rate of an additional 5.0 % may be applied to the outstanding principal balance , and hercules may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreement . in addition , for so long as the term loan remains outstanding , we are required to use commercially reasonable efforts to afford hercules the opportunity to participate in future underwritten equity offerings of our common shares up to a total of $ 3.0 million . in connection with the entry into the loan agreement , we issued a warrant to hercules which was exercisable for an aggregate of 34,260 of our common shares at an exercise price of $ 96.32 per share . in august 2017 , hercules exercised the warrant on a cashless basis and received a net issuance of 16,228 of our common shares . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:8px ; text-align : left ; font-size:10pt ; `` > milestone and royalty payments in addition to the amounts shown in the above table , we are contractually obligated to make up to $ 55.0 million in payments to oxford biomedica upon the achievement of specified development milestones and $ 757.5 million upon the achievement of specified regulatory and sales milestones for axo-lenti-pd , as well as a tiered royalty from 7 % to 10 % of the yearly aggregate net sales of the underlying gene therapy products . we could also be obligated to make payments to umms totaling up to $ 24.5 million upon the achievement of specified development and regulatory milestones and $ 39.8 million upon the achievement of specified commercial milestones for axo-aav-gm1 and axo-aav-gm2 . we are also obligated to pay umms tiered mid-single digit royalties based on yearly net sales of the licensed products , subject to a specified annual minimum amount . additionally , we will pay umms a percent of any revenues we receive from any third-party sublicenses to licensed products at rates ranging in the mid-single digits to mid-teens . on june 5 , 2019 , we , through our wholly owned subsidiary , asg , notified benitec of our intention to terminate the license and collaboration agreement with benitec in its entirety , which will be effective on september 3 , 2019 , and therefore we will not be obligated to make milestone or royalty payments under this agreement . these payments are contingent upon the occurrence of certain future events and , given the nature of those events , it is unclear when , if ever , we may be required to make sure payments , and with respect to royalty payments , what the total amount of such payments will be . further , the timing of any of the foregoing future payments is not reasonably estimable . for those reasons , these contingent payments have not been included in the table above . 88 debt obligations debt obligations reflect our obligations to pay interest on the outstanding principal amount of $ 45.3 million as of march 31 , 2019 under the loan agreement with hercules and to make periodic principal repayments . our debt obligation under the hercules loan agreement bears interest at a variable per annum rate calculated for any day as the greater of either ( i ) the prime rate plus 6.80 % , and ( ii ) 10.55 % . the related interest on the aggregate principal amounts outstanding to hercules included in the above table was estimated using the interest rate in effect as of march 31 , 2019. see note 6 , “ long-term debt , ” in the accompanying consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of the loan agreement with hercules . real property leases in june 2017 , we entered into a lease with a third-party for approximately 19,554 square feet of office space in new york , new york . this license agreement was originally set to expire in january 2019 and was extended to january 2021 in august 2018. asa leases 955 square feet of office space in princeton , new jersey under a lease agreement expiring in august 2020. for the year ended march 31 , 2019 , we incurred $ 1.7 million in rent expense under these agreements . during the year ended march 31 , 2016 , we entered into two subleases with rsi for office space in new york , new york . under the terms of the subleases , rsi paid rent obligations directly pursuant to a master lease , and then invoiced us based on our proportionate share of the space and overhead expenses , calculated based upon the relative numbers of full-time equivalent employees located on the premises . as a result , our rent obligations were not fixed . we ceased incurring rent expense under this arrangement with rsi after entering into the lease for office space in new york , new york in june 2017. for the year ended march 31 , 2018 , we incurred $ 0.9 million in rent expense under this arrangement with rsi . recent accounting pronouncements for detailed information regarding recently issued accounting pronouncements and the expected impact on our financial statements , refer to note 2 `` summary of significant accounting policies , `` in the accompanying notes to our audited consolidated financial statements included elsewhere in this annual report on form 10-k. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) . the preparation of these consolidated financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure

cash flows the following table sets forth a summary of our cash flows for each of the periods shown ( in thousands ) : replace_table_token_3_th operating activities cash flows from operating activities consist of net loss adjusted for non-cash items , including depreciation and share-based compensation expense , as well as the effect of changes in working capital and other activities . for the year ended march 31 , 2019 , net cash used in operating activities was $ 134.2 million and was primarily attributable to a net loss of $ 129.1 million , which includes costs incurred for research and development activities , including upfront license fees , cro fees , manufacturing , regulatory and other clinical trial costs and our general and administrative expenses , a decrease of $ 11.2 million in accrued expenses , a realized noncash gain of $ 5.9 million associated with an investment in convertible preferred stock and an increase of $ 3.7 million in prepaid assets and other current assets , partially offset by $ 16.4 million of non-cash share-based compensation expense . for the year ended march 31 , 2018 , net cash used in operating activities was $ 190.3 million and was primarily attributable to a net loss of $ 221.6 million , partially offset by $ 31.9 million of non-cash share-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. ```cash flows the following table sets forth a summary of our cash flows for each of the periods shown ( in thousands ) : replace_table_token_3_th operating activities cash flows from operating activities consist of net loss adjusted for non-cash items , including depreciation and share-based compensation expense , as well as the effect of changes in working capital and other activities . for the year ended march 31 , 2019 , net cash used in operating activities was $ 134.2 million and was primarily attributable to a net loss of $ 129.1 million , which includes costs incurred for research and development activities , including upfront license fees , cro fees , manufacturing , regulatory and other clinical trial costs and our general and administrative expenses , a decrease of $ 11.2 million in accrued expenses , a realized noncash gain of $ 5.9 million associated with an investment in convertible preferred stock and an increase of $ 3.7 million in prepaid assets and other current assets , partially offset by $ 16.4 million of non-cash share-based compensation expense . for the year ended march 31 , 2018 , net cash used in operating activities was $ 190.3 million and was primarily attributable to a net loss of $ 221.6 million , partially offset by $ 31.9 million of non-cash share-based compensation expense . ``` Suspicious Activity Report : in addition , we have agreed to indemnify rsi and rsg , respectively , and their respective affiliates and officers , employees and directors against all losses arising out of , due to or in connection with the receipt of services under the applicable services agreement , subject to certain limitations set forth in the applicable services agreement . such indemnification obligations will not exceed the payments made by us under the applicable services agreement for the specific service that allegedly caused or was related to the losses during the period in which such alleged losses were incurred . the term of each of the services agreements will continue until terminated upon 90 days ' written notice by any party with respect to the services such party provides or receives thereunder . for the years ended march 31 , 2019 and 2018 , we incurred expenses of $ 5.1 million and $ 8.5 million , respectively , under the services agreements , inclusive of the mark-up , which includes a portion of the expenses incurred by rsi and rsl on behalf of us that have been treated as capital contributions . we have recorded these charges as research and development expense and general and administrative expense in our consolidated statements of operations . 81 financial operations overview revenue we have not generated any revenue from the sale of any products , and we do not expect to generate any revenue unless and until we obtain regulatory approval of and begin to commercialize one of our gene therapy product candidates in development . research and development expense since our inception , our operations have primarily been focused on organizing and staffing our company , raising capital , and acquiring , preparing for and advancing our product candidates into clinical development . our research and development expenses include program-specific costs as well as unallocated internal costs . program-specific costs include : direct third-party costs , which include expenses incurred under agreements with cros and contract manufacturing organizations , the cost of consultants who assist with the development of our product candidates on a program-specific basis , investigator grants , sponsored research , manufacturing costs in connection with producing materials for use in conducting nonclinical and clinical studies , and any other third-party expenses directly attributable to the development of our product candidates ; and upfront payments for the purchase of in-process research and development , which include costs incurred under our agreements with oxford biomedica and umms , as well as costs incurred for our discontinued axo-aav-opmd , intepirdine and nelotanserin programs . unallocated internal costs include : share-based compensation expense for research and development personnel , including expense related to rsl common share awards and rsl options issued by rsl to rsi and rsg employees ; personnel-related expenses , which include employee-related expenses , such as salaries , benefits and travel expenses , for research and development personnel ; costs allocated to us under our services agreements with rsi and rsg ; and other expenses , which includes the cost of consultants who assist with our research and development but are not allocated to a specific program . research and development activities will continue to be central to our business model . we expect our research and development expense to increase as we advance our current gene therapy product candidate programs and additional product candidates we may in-license or acquire as we pursue our updated business plan . for the year ended march 31 , 2019 , the majority of our research and development expenses have been associated with our gene therapy product candidates . for the year ended march 31 , 2018 , the majority of our research and development expenses were associated with advancing intepirdine . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . the duration , costs and timing of clinical trials of our products in development and any other product candidates will depend on a variety of factors that include , but are not limited to , the following : the number of trials required for approval ; the per patient trial costs ; the number of patients who 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 dose that patients receive ; 82 the drop-out or discontinuation rates of patients ; the potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; the timing and receipt of regulatory approvals ; and the efficacy and safety profile of the product candidates . in addition , the probability of success of our gene therapy products in development and any other product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval of our gene therapy product candidates for any indication in any country . as a result of the uncertainties discussed above , we are unable to determine in advance the duration and completion costs of any clinical trial we conduct , or when and to what extent we will generate revenue from the commercialization and sale of our products in development or other product candidates , if at all . general and administrative expense general and administrative expenses consist primarily of share-based compensation , legal and accounting fees , consulting services , services received under the services agreements with rsi and rsg and employee-related expenses , such as salaries , benefits and travel expenses , for general and administrative personnel . story_separator_special_tag upon the occurrence of an event of default , a default interest rate of an additional 5.0 % may be applied to the outstanding principal balance , and hercules may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreement . in addition , for so long as the term loan remains outstanding , we are required to use commercially reasonable efforts to afford hercules the opportunity to participate in future underwritten equity offerings of our common shares up to a total of $ 3.0 million . in connection with the entry into the loan agreement , we issued a warrant to hercules which was exercisable for an aggregate of 34,260 of our common shares at an exercise price of $ 96.32 per share . in august 2017 , hercules exercised the warrant on a cashless basis and received a net issuance of 16,228 of our common shares . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:8px ; text-align : left ; font-size:10pt ; `` > milestone and royalty payments in addition to the amounts shown in the above table , we are contractually obligated to make up to $ 55.0 million in payments to oxford biomedica upon the achievement of specified development milestones and $ 757.5 million upon the achievement of specified regulatory and sales milestones for axo-lenti-pd , as well as a tiered royalty from 7 % to 10 % of the yearly aggregate net sales of the underlying gene therapy products . we could also be obligated to make payments to umms totaling up to $ 24.5 million upon the achievement of specified development and regulatory milestones and $ 39.8 million upon the achievement of specified commercial milestones for axo-aav-gm1 and axo-aav-gm2 . we are also obligated to pay umms tiered mid-single digit royalties based on yearly net sales of the licensed products , subject to a specified annual minimum amount . additionally , we will pay umms a percent of any revenues we receive from any third-party sublicenses to licensed products at rates ranging in the mid-single digits to mid-teens . on june 5 , 2019 , we , through our wholly owned subsidiary , asg , notified benitec of our intention to terminate the license and collaboration agreement with benitec in its entirety , which will be effective on september 3 , 2019 , and therefore we will not be obligated to make milestone or royalty payments under this agreement . these payments are contingent upon the occurrence of certain future events and , given the nature of those events , it is unclear when , if ever , we may be required to make sure payments , and with respect to royalty payments , what the total amount of such payments will be . further , the timing of any of the foregoing future payments is not reasonably estimable . for those reasons , these contingent payments have not been included in the table above . 88 debt obligations debt obligations reflect our obligations to pay interest on the outstanding principal amount of $ 45.3 million as of march 31 , 2019 under the loan agreement with hercules and to make periodic principal repayments . our debt obligation under the hercules loan agreement bears interest at a variable per annum rate calculated for any day as the greater of either ( i ) the prime rate plus 6.80 % , and ( ii ) 10.55 % . the related interest on the aggregate principal amounts outstanding to hercules included in the above table was estimated using the interest rate in effect as of march 31 , 2019. see note 6 , “ long-term debt , ” in the accompanying consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of the loan agreement with hercules . real property leases in june 2017 , we entered into a lease with a third-party for approximately 19,554 square feet of office space in new york , new york . this license agreement was originally set to expire in january 2019 and was extended to january 2021 in august 2018. asa leases 955 square feet of office space in princeton , new jersey under a lease agreement expiring in august 2020. for the year ended march 31 , 2019 , we incurred $ 1.7 million in rent expense under these agreements . during the year ended march 31 , 2016 , we entered into two subleases with rsi for office space in new york , new york . under the terms of the subleases , rsi paid rent obligations directly pursuant to a master lease , and then invoiced us based on our proportionate share of the space and overhead expenses , calculated based upon the relative numbers of full-time equivalent employees located on the premises . as a result , our rent obligations were not fixed . we ceased incurring rent expense under this arrangement with rsi after entering into the lease for office space in new york , new york in june 2017. for the year ended march 31 , 2018 , we incurred $ 0.9 million in rent expense under this arrangement with rsi . recent accounting pronouncements for detailed information regarding recently issued accounting pronouncements and the expected impact on our financial statements , refer to note 2 `` summary of significant accounting policies , `` in the accompanying notes to our audited consolidated financial statements included elsewhere in this annual report on form 10-k. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) . the preparation of these consolidated financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure

we remain committed to serving the customer launching over 100 new brands in 2020. we have made investments over several years to integrate the digital and physical channels creating a seamless shopping experience for our customer and one channel expense structure which we believe was a critical asset in 2020 as more demand shifted to the digital channels in response to store closures . we are continuing to deliver almost all of our online orders in north america from our stores , which has provided significant improvements in the speed of delivery to our customers . internationally we continue to see deeper penetration of localized fulfillment and are in various stages of roll-out in different countries . in-store fulfillment is a key part of strategy that we believe will drive long term market share by leveraging the strengths of our store sales team , providing better and faster service to customers , improving product margins , maximizing the productivity of inventory , providing additional selling opportunities , and utilizing one cost structure to serve the customer . 26 the following table shows net sales , operating profit , operating margin and diluted earnings per share for fiscal 2020 compared to fiscal 2019 : replace_table_token_5_th ( 1 ) the decrease in net sales was primarily due to widespread short-term store closures globally throughout the fiscal year due to the covid-19 pandemic , partially offset by a 13.6 % comparable sales increase and the net addition of 3 stores ( 12 new stores offset by 9 store closures ) . the increase in comparable sales was driven by an increase in transactions and an increase in dollars per transaction . dollars per transaction increased due to an increase in units per transaction and average unit retail . fiscal 2021—a look at the upcoming year we are entering fiscal 2021 having just come off an incredibly challenging year that resulted in our sales decreasing 4.2 % , while still recording the strongest earnings in the history of our company . we are currently planning 2021 with the expectation that we will continue to experience many of the challenges that impacted us in 2020 , but with fewer store closures and restrictions as we move through the year . given the cadence of 2020 , we are expecting the first quarter to be significantly stronger than 2020 while the second quarter and various elements of the back half of the year will be more challenging based on the increased competition for discretionary dollars and timing of normalized operational costs , including store payroll , travel , marketing events , and training , as overall covid restrictions are reduced . in fiscal 2021 , our focus remains on serving the customer with strategic investments largely focused on enhancing the customer experience while increasing market share and creating operational efficiencies to drive operating margin expansion . given our significant cash position , we have the security to manage through potential difficulties while also investing strategically in important long-term initiatives . as we are within our targeted store count range in north america , we expect that store count will be roughly flat in the region . in europe and australia , however , we continue to believe we have growth opportunities and we are planning 22 new stores during fiscal 2021 , up from 9 in 2020. in fiscal 2021 , considering our anticipated growth rate inclusive of the recapture of lost sales from store closures in 2020 , we expect that we will be able to grow operating margins for the full year compared to fiscal 2020. it is important to note that we will also be looking to reintroduce costs that were cut in 2020 due to their importance to our long-term strategy , culture , and brand . these costs will include many training and marketing related events that we were unable to execute in 2020 due to travel and other restrictions , department travel to connect our people and increased store hours as malls around the world move back to normal operations . our year-end fiscal 2020 inventory was down 0.5 % from year-end fiscal 2019. in fiscal 2021 , we anticipate inventory levels per square foot will grow slower than sales on the year as we apply learnings from 2020 to further increase inventory turns . excluding any potential share buy-backs under the currently authorized program , we expect cash , short-term investments and working capital to increase , and do not anticipate any new long-term 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 based on our historical redemption rate in proportion to the pattern of rights exercised by the customer . 27 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 . story_separator_special_tag in fiscal 2021 , we expect to spend approximately $ 20 million to $ 22 million on capital expenditures , a majority of which will relate to leasehold improvements and fixtures for the approximately 22 new stores we plan to open in fiscal 2021 and remodels or relocations of existing stores . there can be no assurance that the number of stores that we actually open in fiscal 2021 will not be different from the number of stores we plan to open , or that actual fiscal 2021 capital expenditures will not differ from this expected amount . critical accounting estimates our consolidated financial statements are prepared in accordance with u.s. gaap . in connection with the preparation of our consolidated financial statements , we are required to make assumptions and estimates about future events , and apply judgments that affect the reported amounts of assets , liabilities , revenue , expenses and the related disclosures . we base our assumptions , estimates and judgments on historical experience , current trends and other factors that we believe to be relevant at the time our consolidated financial statements are prepared . on a regular basis , we review the accounting policies , assumptions , estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with u.s. gaap . however , because future events and their effects can not be determined with certainty , actual results could differ from our assumptions and estimates , and such differences could be material . our significant accounting policies are discussed in note 2 , “ summary of significant accounting policies , ” in the notes to consolidated financial statements found in part iv item 15 of this form 10-k. we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . 34 description judgments and uncertainties effect if actual results differ from assumptions valuation of merchandise inventories we value our inventory at the lower of average cost or net realizable value through the establishment of write-down and inventory loss reserves . our write-down reserve represents the excess of the carrying value over the amount we expect to realize from the ultimate sales or other disposal of the inventory . write-downs establish a new cost basis for our inventory . subsequent changes in facts or circumstances do not result in the restoration of previously recorded write-downs or an increase in that newly established cost basis . our inventory loss reserve represents anticipated physical inventory losses ( “ shrinkage reserve ” ) that have occurred since the last physical inventory . our write-down reserve contains uncertainties because the calculation requires management to make assumptions based on the current rate of sales , the age and profitability of inventory and other factors . our shrinkage reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors , including historical percentages that can be affected by changes in merchandise mix and changes in actual shrinkage trends . we have not made any material changes in the accounting methodology used to calculate our write-down and shrinkage reserves 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 we use to calculate our inventory reserves . however , if actual results are not consistent with our estimates , we may be exposed to losses or gains that could be material . a 10 % decrease in the sales price of our inventory at january 30 , 2021 would have decreased net income by less than $ 0.1 million in fiscal 2020. a 10 % increase in actual physical inventory shrinkage rate at january 30 , 2021 would have decreased net income by $ 0.1 million in fiscal 2020. valuation of long-lived assets we review the carrying value of our long-lived assets , including fixed assets and operating lease right-of-use assets , for impairment whenever events or changes in circumstances indicate that the carrying value of such asset or asset group may not be recoverable . recoverability of assets to be held and used is determined by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if such assets are considered impaired , the impairment recognized is measured by comparing the fair value of the asset to the asset carrying value . the fair value of the asset is based on the future discounted cash flow of current market rents that we could receive as sublease income . events that may result in an impairment include the decision to close a store or facility or a significant decrease in the operating performance of a long-lived asset group . our impairment calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting future sales , gross profit , operating expenses , or sub-lease income . in addition to historical results , current trends and initiatives , and long-term macro-economic and industry factors are qualitatively considered . additionally , management seeks input from store operations related to local economic conditions , including the impact of closures of selected co-tenants who occupy the mall . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . declines in projected cash flow of the assets could result in impairment . 35 description judgments and

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 . 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 , 2021 and february 1 , 2020 , cash , cash equivalents and current marketable securities were $ 375.5 million and $ 251.2 million . working capital , the excess of current assets over current liabilities , was $ 339.8 million at the end of fiscal 2020 , an increase of 34.4 % from $ 252.9 million at the end of fiscal 2019. the increase in cash , cash equivalents and current marketable securities in fiscal 2020 was due primarily to cash provided by operating activities of $ 138.4 million , partially offset by $ 9.1 million of capital expenditures primarily related to the opening of 12 new stores and 3 remodels and relocations .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 . 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 , 2021 and february 1 , 2020 , cash , cash equivalents and current marketable securities were $ 375.5 million and $ 251.2 million . working capital , the excess of current assets over current liabilities , was $ 339.8 million at the end of fiscal 2020 , an increase of 34.4 % from $ 252.9 million at the end of fiscal 2019. the increase in cash , cash equivalents and current marketable securities in fiscal 2020 was due primarily to cash provided by operating activities of $ 138.4 million , partially offset by $ 9.1 million of capital expenditures primarily related to the opening of 12 new stores and 3 remodels and relocations . ``` Suspicious Activity Report : we remain committed to serving the customer launching over 100 new brands in 2020. we have made investments over several years to integrate the digital and physical channels creating a seamless shopping experience for our customer and one channel expense structure which we believe was a critical asset in 2020 as more demand shifted to the digital channels in response to store closures . we are continuing to deliver almost all of our online orders in north america from our stores , which has provided significant improvements in the speed of delivery to our customers . internationally we continue to see deeper penetration of localized fulfillment and are in various stages of roll-out in different countries . in-store fulfillment is a key part of strategy that we believe will drive long term market share by leveraging the strengths of our store sales team , providing better and faster service to customers , improving product margins , maximizing the productivity of inventory , providing additional selling opportunities , and utilizing one cost structure to serve the customer . 26 the following table shows net sales , operating profit , operating margin and diluted earnings per share for fiscal 2020 compared to fiscal 2019 : replace_table_token_5_th ( 1 ) the decrease in net sales was primarily due to widespread short-term store closures globally throughout the fiscal year due to the covid-19 pandemic , partially offset by a 13.6 % comparable sales increase and the net addition of 3 stores ( 12 new stores offset by 9 store closures ) . the increase in comparable sales was driven by an increase in transactions and an increase in dollars per transaction . dollars per transaction increased due to an increase in units per transaction and average unit retail . fiscal 2021—a look at the upcoming year we are entering fiscal 2021 having just come off an incredibly challenging year that resulted in our sales decreasing 4.2 % , while still recording the strongest earnings in the history of our company . we are currently planning 2021 with the expectation that we will continue to experience many of the challenges that impacted us in 2020 , but with fewer store closures and restrictions as we move through the year . given the cadence of 2020 , we are expecting the first quarter to be significantly stronger than 2020 while the second quarter and various elements of the back half of the year will be more challenging based on the increased competition for discretionary dollars and timing of normalized operational costs , including store payroll , travel , marketing events , and training , as overall covid restrictions are reduced . in fiscal 2021 , our focus remains on serving the customer with strategic investments largely focused on enhancing the customer experience while increasing market share and creating operational efficiencies to drive operating margin expansion . given our significant cash position , we have the security to manage through potential difficulties while also investing strategically in important long-term initiatives . as we are within our targeted store count range in north america , we expect that store count will be roughly flat in the region . in europe and australia , however , we continue to believe we have growth opportunities and we are planning 22 new stores during fiscal 2021 , up from 9 in 2020. in fiscal 2021 , considering our anticipated growth rate inclusive of the recapture of lost sales from store closures in 2020 , we expect that we will be able to grow operating margins for the full year compared to fiscal 2020. it is important to note that we will also be looking to reintroduce costs that were cut in 2020 due to their importance to our long-term strategy , culture , and brand . these costs will include many training and marketing related events that we were unable to execute in 2020 due to travel and other restrictions , department travel to connect our people and increased store hours as malls around the world move back to normal operations . our year-end fiscal 2020 inventory was down 0.5 % from year-end fiscal 2019. in fiscal 2021 , we anticipate inventory levels per square foot will grow slower than sales on the year as we apply learnings from 2020 to further increase inventory turns . excluding any potential share buy-backs under the currently authorized program , we expect cash , short-term investments and working capital to increase , and do not anticipate any new long-term 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 based on our historical redemption rate in proportion to the pattern of rights exercised by the customer . 27 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 . story_separator_special_tag in fiscal 2021 , we expect to spend approximately $ 20 million to $ 22 million on capital expenditures , a majority of which will relate to leasehold improvements and fixtures for the approximately 22 new stores we plan to open in fiscal 2021 and remodels or relocations of existing stores . there can be no assurance that the number of stores that we actually open in fiscal 2021 will not be different from the number of stores we plan to open , or that actual fiscal 2021 capital expenditures will not differ from this expected amount . critical accounting estimates our consolidated financial statements are prepared in accordance with u.s. gaap . in connection with the preparation of our consolidated financial statements , we are required to make assumptions and estimates about future events , and apply judgments that affect the reported amounts of assets , liabilities , revenue , expenses and the related disclosures . we base our assumptions , estimates and judgments on historical experience , current trends and other factors that we believe to be relevant at the time our consolidated financial statements are prepared . on a regular basis , we review the accounting policies , assumptions , estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with u.s. gaap . however , because future events and their effects can not be determined with certainty , actual results could differ from our assumptions and estimates , and such differences could be material . our significant accounting policies are discussed in note 2 , “ summary of significant accounting policies , ” in the notes to consolidated financial statements found in part iv item 15 of this form 10-k. we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . 34 description judgments and uncertainties effect if actual results differ from assumptions valuation of merchandise inventories we value our inventory at the lower of average cost or net realizable value through the establishment of write-down and inventory loss reserves . our write-down reserve represents the excess of the carrying value over the amount we expect to realize from the ultimate sales or other disposal of the inventory . write-downs establish a new cost basis for our inventory . subsequent changes in facts or circumstances do not result in the restoration of previously recorded write-downs or an increase in that newly established cost basis . our inventory loss reserve represents anticipated physical inventory losses ( “ shrinkage reserve ” ) that have occurred since the last physical inventory . our write-down reserve contains uncertainties because the calculation requires management to make assumptions based on the current rate of sales , the age and profitability of inventory and other factors . our shrinkage reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors , including historical percentages that can be affected by changes in merchandise mix and changes in actual shrinkage trends . we have not made any material changes in the accounting methodology used to calculate our write-down and shrinkage reserves 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 we use to calculate our inventory reserves . however , if actual results are not consistent with our estimates , we may be exposed to losses or gains that could be material . a 10 % decrease in the sales price of our inventory at january 30 , 2021 would have decreased net income by less than $ 0.1 million in fiscal 2020. a 10 % increase in actual physical inventory shrinkage rate at january 30 , 2021 would have decreased net income by $ 0.1 million in fiscal 2020. valuation of long-lived assets we review the carrying value of our long-lived assets , including fixed assets and operating lease right-of-use assets , for impairment whenever events or changes in circumstances indicate that the carrying value of such asset or asset group may not be recoverable . recoverability of assets to be held and used is determined by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if such assets are considered impaired , the impairment recognized is measured by comparing the fair value of the asset to the asset carrying value . the fair value of the asset is based on the future discounted cash flow of current market rents that we could receive as sublease income . events that may result in an impairment include the decision to close a store or facility or a significant decrease in the operating performance of a long-lived asset group . our impairment calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting future sales , gross profit , operating expenses , or sub-lease income . in addition to historical results , current trends and initiatives , and long-term macro-economic and industry factors are qualitatively considered . additionally , management seeks input from store operations related to local economic conditions , including the impact of closures of selected co-tenants who occupy the mall . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . declines in projected cash flow of the assets could result in impairment . 35 description judgments and

critical accounting policies and estimates revenue recognition — the company 's two primary business segments include photovoltaic installation , integration and sales , and cable , wire and mechanical assemblies . photovoltaic installation , integration and sales — in our photovoltaic systems installation , integration and sales segment , there are two revenue streams . revenue on product sales is recognized when there is evidence of an arrangement , title and risk of ownership have passed ( generally upon delivery ) , the price to the buyer is fixed or determinable and collectability is reasonably assured . customers do not have a general right of return on products shipped therefore we make no provisions for returns . revenue on photovoltaic system construction contracts is generally recognized using the percentage of completion method of accounting . at the end of each period , the company measures the cost incurred on each project and compares the result against its estimated total costs at completion . the percent of cost incurred determines the amount of revenue to be recognized . payment terms are generally defined by the contract and as a result may not match the timing of the costs incurred by the company and the related recognition of revenue . such differences are recorded as costs and estimated earnings in excess of billings on uncompleted contracts or billings in excess of costs and estimated earnings on uncompleted contracts . the company determines its customer 's credit worthiness at the time the order is accepted . sudden and unexpected changes in customer 's financial condition could put recoverability at risk . the percentage-of-completion method requires the use of various estimates including among others , the extent of progress towards completion , contract revenues and contract completion costs . contract revenues and contract costs to be recognized are dependent on the accuracy of estimates , including direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs , and depreciation costs . we have a history of making reasonable estimates of the extent of progress towards completion , contract revenues and contract completion costs . however , due to uncertainties inherent in the estimation process , it is possible that actual contract revenues and completion costs may vary from estimates . 21 for those projects where the company is considered to be the owner , the project is accounted for under the rules of real estate accounting . in the event of a sale , the method of revenue recognition is determined by considering the extent of the buyer 's initial and continuing investment and the nature and the extent of the company 's continuing involvement . generally , revenue is recognized at the time of title transfer if the buyers investment is sufficient to demonstrate a commitment to pay for the property and the company does not have a substantial continuing involvement with the property . when continuing involvement is substantial and not temporary , the company applies the financing method , whereby the asset remains on the balance sheet and the proceeds received are recorded as a financing obligation . when a sale is not recognized due to continuing involvement and the financing method is applied the company records revenue and expenses related to the underlying operations of the asset in the company 's consolidated financial statements . the asset , “costs and estimated earnings in excess of billings on uncompleted contracts” represents revenues recognized in excess of amounts billed . the liability , “billings in excess of costs and estimated earnings on uncompleted contracts , ” represents billings in excess of revenues recognized . cable , wire and mechanical assemblies — in our cable , wire and mechanical assemblies business the company recognizes the sales of goods when there is evidence of an arrangement , title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectability is reasonably assured . there are no formal customer acceptance requirements or further obligations related to our assembly services once we ship our products . customers do not have a general right of return on products shipped therefore we make no provisions for returns . we make determination of our customer 's credit worthiness at the time we accept their order . product and performance warranties — the company offers the industry standard of 25 years for our solar modules and industry standard five ( 5 ) years on inverter and balance of system components . due to the warranty period , we bear the risk of extensive warranty claims long after we have shipped product and recognized revenue . in our cable , wire and mechanical assemblies business , historically our warranty claims have not been material . in our solar photovoltaic business , our greatest warranty exposure is in the form of product replacement . until the third quarter of 2007 , the company purchased its solar panels from third-party suppliers and since the third-party warranties are consistent with industry standards we considered our financial exposure to warranty claims immaterial . certain photovoltaic construction contracts entered into during the year ended december 31 , 2007 included provisions under which the company agreed to provide warranties to the buyer , and during the quarter ended september 30 , 2007 and continuing through the fourth quarter of 2010 , the company installed its own manufactured solar panels . as a result , the company recorded the provision for the estimated warranty exposure on these contracts within cost of sales . since the company does not have sufficient historical data to estimate its exposure , we have looked to our own historical data in combination with historical data reported by other solar system installers and manufacturers . story_separator_special_tag $ 983,000 of imputed interest on a real estate sales transaction accounted for under the financing method , $ 188,000 paid on the loan securing our power generating facility at aerojet , $ 29,000 paid on our installment loans and capital leases and $ 233,000 of finance charges on trade accounts payable . other income / expense — other expense , net was $ 469,000 and $ 1,138,000 for the years ended december 31 , 2011 and 2010 , respectively . the decrease was primarily related to large exchange losses due to decline in value of the euro in 2010 as it related to the collection of euro denominated accounts receivable . in 2010 , other income , net consisted primarily of income related to a government stimulus of $ 70,000 from the chinese government , other income of $ 6,000 and expenses of $ 1,000 related to the sub-lease of the company 's retail outlet , $ 142,000 of costs related to the preliminary design of a new factory facility and currency exchange losses of $ 1,071,000. income tax expense / benefit — the company provided income tax expense of $ 259,000 for the year ended december 31 , 2011 and an income tax benefit of $ 141,000 for the year ended december 31 , 2010. the company is currently in a net cumulative loss position and has significant net operating loss carry forwards . the income tax expense for the year ended december 31 , 2011 consisted of $ 150,000 for federal alternative minimum tax , not covered by the company 's deferred tax assets , $ 207,000 of state income tax for california and new jersey and $ 1,000 of tax expense related to our china support entity . there is a moratorium imposed by the state of california that prevents the use of operating losses to offset future tax liability until the state budget crisis is resolved resulting in income tax expense related to our california earnings . the income tax benefit for the year ended december 31 , 2010 was primarily due to a decrease in tax liability for one of our foreign subsidiaries . 26 story_separator_special_tag equivalents , $ 670,000 of restricted cash held in our name consisting of $ 400,000 as a reserve pursuant to our guarantees of solar tax partners 1 , llc with the bank providing the debt financing on the aerojet 1 solar generating facility ( see note 15 of the consolidated financial statements ) , $ 250,000 as a reserve pursuant to our loan agreement with the bank providing the debt financing for the solar generating facility owned by our subsidiary , solar tax partners 2 , llc and $ 20,000 held by our bank as collateral for our corporate credit card , net accounts receivable of $ 77,115,000 and costs and estimated earnings in excess of billings on uncompleted contracts of $ 9,245,000. our focus will be to continue development of large-scale photovoltaic solar energy facilities . 28 pricing of solar modules has significantly decreased over the last year primarily due to the overcapacity of chinese solar manufacturers . coupled with continuous solar incentives provided by the us , european and other countries , the adoption of solar systems worldwide has been on the rise . while it is still a challenging economic environment , we anticipate our sales pipeline to grow both domestically and internationally . while our sales pipeline of solar system construction projects continues to grow , such projects encumber associated working capital until project completion or earlier customer payment , and our revenues are highly dependent on third party financing for these projects . as a result , revenues remain difficult to predict and we can not assure shareholders and potential investors that we will be successful in generating positive cash from operations . knowing that revenues are unpredictable , our strategy has been to manage spending tightly , and to outsource the majority of our construction workforce . over the past three years we have sustained losses from operations and have relied on equity financing to provide working capital . we have been actively working with additional potential investors to ensure that we have additional equity available to us as needed . in addition , we are working on sources of project financing as well as asset backed credit facilities . the issues involved with receiving payment on two major projects ( aerojet 1 and aerojet 2 ) have severely hindered the company 's ability to create and leverage working capital . the impact of waiting for that working capital required the company to optimize cash on hand and negotiate extended terms with our suppliers resulting in increased accounts payable . the limits on available working capital caused by these events and inability to obtain additional credit from our suppliers impacted the company 's ability to start and complete projects per original schedules . the company received payment for the outstanding receivable due on aerojet 1 from stp in august 2010 , allowing the company to satisfy obligations to suppliers and enabling more effective management of working capital . the inability of our customer to complete its purchase of the aerojet 2 project , resulting in the company taking possession of the project and recording it as an asset held for sale , caused further constraints on our working capital . to mitigate future impact on working capital requirements the company is planning to finance future projects through construction financing or payment terms from the end customer . we have extended payment terms for one of our major customers up to 310 days and 364 days respectively for 40 % and 50 % of the receivable that amounted to $ 42 million as of december 31 , 2011. payments terms also include a 5 % interest rate per year from the date that is thirty days after the date that title passes from us to this customer until the date such amount is

liquidity a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_3_th as of december 31 , 2011 , we had $ 23,855,000 in cash and cash equivalents and as of december 31 , 2010 , we had $ 1,441,000 in cash and cash equivalents . this change in cash and cash equivalents is primarily attributable to cash generated from financing activities offset by cash used in operating activities . operating activities – net cash used in operating activities of $ 30,439,000 for the year ended december 31 , 2011 was a result of a net loss of $ 461,000 , offset by non-cash items included in net loss , consisting of depreciation of $ 999,000 , amortization of loan fees of $ ( 14,000 ) , impairment charge of $ 400,000 , stock-based compensation expense and stock issued for services of $ 517,000 , bad debt expense of $ 819,000 , provision for obsolete inventory of $ 253,000 , operating income from solar system subject to financing obligation of $ ( 749,000 ) , and loss on disposal of fixed assets of $ 4,000. cash used in operations also included an increase in accounts and related notes receivable of $ 77,980,000 primarily related to a number of large scale development projects where milestones have been met and invoices issued , including $ 18,201,000 due from our parent company ldk relating to two epc contracts between spi and ldk ; an increase in costs and estimated earnings in excess of billings on uncompleted projects of $ 7,020,000 related to the construction projects , of which $ 360,000 is related to two epc contracts entered into between the company and ldk ; increases in inventories of $ 3,044,000 primarily due to increases in raw material and finished goods inventory ; decreases in prepaid expenses and other current assets of $ 135,000 due to decreased supplier deposits at our manufacturing facility in the people 's republic of china ( “prc” ) ; an increase in accounts payable of $ 47,806,000 of which $ 46,125,000 is to ldk for solar panel purchases ; increases in

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_3_th as of december 31 , 2011 , we had $ 23,855,000 in cash and cash equivalents and as of december 31 , 2010 , we had $ 1,441,000 in cash and cash equivalents . this change in cash and cash equivalents is primarily attributable to cash generated from financing activities offset by cash used in operating activities . operating activities – net cash used in operating activities of $ 30,439,000 for the year ended december 31 , 2011 was a result of a net loss of $ 461,000 , offset by non-cash items included in net loss , consisting of depreciation of $ 999,000 , amortization of loan fees of $ ( 14,000 ) , impairment charge of $ 400,000 , stock-based compensation expense and stock issued for services of $ 517,000 , bad debt expense of $ 819,000 , provision for obsolete inventory of $ 253,000 , operating income from solar system subject to financing obligation of $ ( 749,000 ) , and loss on disposal of fixed assets of $ 4,000. cash used in operations also included an increase in accounts and related notes receivable of $ 77,980,000 primarily related to a number of large scale development projects where milestones have been met and invoices issued , including $ 18,201,000 due from our parent company ldk relating to two epc contracts between spi and ldk ; an increase in costs and estimated earnings in excess of billings on uncompleted projects of $ 7,020,000 related to the construction projects , of which $ 360,000 is related to two epc contracts entered into between the company and ldk ; increases in inventories of $ 3,044,000 primarily due to increases in raw material and finished goods inventory ; decreases in prepaid expenses and other current assets of $ 135,000 due to decreased supplier deposits at our manufacturing facility in the people 's republic of china ( “prc” ) ; an increase in accounts payable of $ 47,806,000 of which $ 46,125,000 is to ldk for solar panel purchases ; increases in ``` Suspicious Activity Report : critical accounting policies and estimates revenue recognition — the company 's two primary business segments include photovoltaic installation , integration and sales , and cable , wire and mechanical assemblies . photovoltaic installation , integration and sales — in our photovoltaic systems installation , integration and sales segment , there are two revenue streams . revenue on product sales is recognized when there is evidence of an arrangement , title and risk of ownership have passed ( generally upon delivery ) , the price to the buyer is fixed or determinable and collectability is reasonably assured . customers do not have a general right of return on products shipped therefore we make no provisions for returns . revenue on photovoltaic system construction contracts is generally recognized using the percentage of completion method of accounting . at the end of each period , the company measures the cost incurred on each project and compares the result against its estimated total costs at completion . the percent of cost incurred determines the amount of revenue to be recognized . payment terms are generally defined by the contract and as a result may not match the timing of the costs incurred by the company and the related recognition of revenue . such differences are recorded as costs and estimated earnings in excess of billings on uncompleted contracts or billings in excess of costs and estimated earnings on uncompleted contracts . the company determines its customer 's credit worthiness at the time the order is accepted . sudden and unexpected changes in customer 's financial condition could put recoverability at risk . the percentage-of-completion method requires the use of various estimates including among others , the extent of progress towards completion , contract revenues and contract completion costs . contract revenues and contract costs to be recognized are dependent on the accuracy of estimates , including direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs , and depreciation costs . we have a history of making reasonable estimates of the extent of progress towards completion , contract revenues and contract completion costs . however , due to uncertainties inherent in the estimation process , it is possible that actual contract revenues and completion costs may vary from estimates . 21 for those projects where the company is considered to be the owner , the project is accounted for under the rules of real estate accounting . in the event of a sale , the method of revenue recognition is determined by considering the extent of the buyer 's initial and continuing investment and the nature and the extent of the company 's continuing involvement . generally , revenue is recognized at the time of title transfer if the buyers investment is sufficient to demonstrate a commitment to pay for the property and the company does not have a substantial continuing involvement with the property . when continuing involvement is substantial and not temporary , the company applies the financing method , whereby the asset remains on the balance sheet and the proceeds received are recorded as a financing obligation . when a sale is not recognized due to continuing involvement and the financing method is applied the company records revenue and expenses related to the underlying operations of the asset in the company 's consolidated financial statements . the asset , “costs and estimated earnings in excess of billings on uncompleted contracts” represents revenues recognized in excess of amounts billed . the liability , “billings in excess of costs and estimated earnings on uncompleted contracts , ” represents billings in excess of revenues recognized . cable , wire and mechanical assemblies — in our cable , wire and mechanical assemblies business the company recognizes the sales of goods when there is evidence of an arrangement , title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectability is reasonably assured . there are no formal customer acceptance requirements or further obligations related to our assembly services once we ship our products . customers do not have a general right of return on products shipped therefore we make no provisions for returns . we make determination of our customer 's credit worthiness at the time we accept their order . product and performance warranties — the company offers the industry standard of 25 years for our solar modules and industry standard five ( 5 ) years on inverter and balance of system components . due to the warranty period , we bear the risk of extensive warranty claims long after we have shipped product and recognized revenue . in our cable , wire and mechanical assemblies business , historically our warranty claims have not been material . in our solar photovoltaic business , our greatest warranty exposure is in the form of product replacement . until the third quarter of 2007 , the company purchased its solar panels from third-party suppliers and since the third-party warranties are consistent with industry standards we considered our financial exposure to warranty claims immaterial . certain photovoltaic construction contracts entered into during the year ended december 31 , 2007 included provisions under which the company agreed to provide warranties to the buyer , and during the quarter ended september 30 , 2007 and continuing through the fourth quarter of 2010 , the company installed its own manufactured solar panels . as a result , the company recorded the provision for the estimated warranty exposure on these contracts within cost of sales . since the company does not have sufficient historical data to estimate its exposure , we have looked to our own historical data in combination with historical data reported by other solar system installers and manufacturers . story_separator_special_tag $ 983,000 of imputed interest on a real estate sales transaction accounted for under the financing method , $ 188,000 paid on the loan securing our power generating facility at aerojet , $ 29,000 paid on our installment loans and capital leases and $ 233,000 of finance charges on trade accounts payable . other income / expense — other expense , net was $ 469,000 and $ 1,138,000 for the years ended december 31 , 2011 and 2010 , respectively . the decrease was primarily related to large exchange losses due to decline in value of the euro in 2010 as it related to the collection of euro denominated accounts receivable . in 2010 , other income , net consisted primarily of income related to a government stimulus of $ 70,000 from the chinese government , other income of $ 6,000 and expenses of $ 1,000 related to the sub-lease of the company 's retail outlet , $ 142,000 of costs related to the preliminary design of a new factory facility and currency exchange losses of $ 1,071,000. income tax expense / benefit — the company provided income tax expense of $ 259,000 for the year ended december 31 , 2011 and an income tax benefit of $ 141,000 for the year ended december 31 , 2010. the company is currently in a net cumulative loss position and has significant net operating loss carry forwards . the income tax expense for the year ended december 31 , 2011 consisted of $ 150,000 for federal alternative minimum tax , not covered by the company 's deferred tax assets , $ 207,000 of state income tax for california and new jersey and $ 1,000 of tax expense related to our china support entity . there is a moratorium imposed by the state of california that prevents the use of operating losses to offset future tax liability until the state budget crisis is resolved resulting in income tax expense related to our california earnings . the income tax benefit for the year ended december 31 , 2010 was primarily due to a decrease in tax liability for one of our foreign subsidiaries . 26 story_separator_special_tag equivalents , $ 670,000 of restricted cash held in our name consisting of $ 400,000 as a reserve pursuant to our guarantees of solar tax partners 1 , llc with the bank providing the debt financing on the aerojet 1 solar generating facility ( see note 15 of the consolidated financial statements ) , $ 250,000 as a reserve pursuant to our loan agreement with the bank providing the debt financing for the solar generating facility owned by our subsidiary , solar tax partners 2 , llc and $ 20,000 held by our bank as collateral for our corporate credit card , net accounts receivable of $ 77,115,000 and costs and estimated earnings in excess of billings on uncompleted contracts of $ 9,245,000. our focus will be to continue development of large-scale photovoltaic solar energy facilities . 28 pricing of solar modules has significantly decreased over the last year primarily due to the overcapacity of chinese solar manufacturers . coupled with continuous solar incentives provided by the us , european and other countries , the adoption of solar systems worldwide has been on the rise . while it is still a challenging economic environment , we anticipate our sales pipeline to grow both domestically and internationally . while our sales pipeline of solar system construction projects continues to grow , such projects encumber associated working capital until project completion or earlier customer payment , and our revenues are highly dependent on third party financing for these projects . as a result , revenues remain difficult to predict and we can not assure shareholders and potential investors that we will be successful in generating positive cash from operations . knowing that revenues are unpredictable , our strategy has been to manage spending tightly , and to outsource the majority of our construction workforce . over the past three years we have sustained losses from operations and have relied on equity financing to provide working capital . we have been actively working with additional potential investors to ensure that we have additional equity available to us as needed . in addition , we are working on sources of project financing as well as asset backed credit facilities . the issues involved with receiving payment on two major projects ( aerojet 1 and aerojet 2 ) have severely hindered the company 's ability to create and leverage working capital . the impact of waiting for that working capital required the company to optimize cash on hand and negotiate extended terms with our suppliers resulting in increased accounts payable . the limits on available working capital caused by these events and inability to obtain additional credit from our suppliers impacted the company 's ability to start and complete projects per original schedules . the company received payment for the outstanding receivable due on aerojet 1 from stp in august 2010 , allowing the company to satisfy obligations to suppliers and enabling more effective management of working capital . the inability of our customer to complete its purchase of the aerojet 2 project , resulting in the company taking possession of the project and recording it as an asset held for sale , caused further constraints on our working capital . to mitigate future impact on working capital requirements the company is planning to finance future projects through construction financing or payment terms from the end customer . we have extended payment terms for one of our major customers up to 310 days and 364 days respectively for 40 % and 50 % of the receivable that amounted to $ 42 million as of december 31 , 2011. payments terms also include a 5 % interest rate per year from the date that is thirty days after the date that title passes from us to this customer until the date such amount is

trading partner analytics . our trading partner analytics solution consists of data analytics applications which allow our customers to improve their visibility across , and analysis of , their supply chains . through interactive data analysis , our retailer customers improve their visibility into supplier performance and their understanding of product sell-through . our revenues for this solution primarily consist of a monthly subscription fee . other trading partner solutions . the remainder of our revenues are derived from solutions that allow our customers to perform tasks such as barcode labeling or picking-and-packaging information tracking as well as purchases of miscellaneous supplies . these revenues are primarily transaction-based . 34 cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers , and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2015 , we had approximately 23,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with generally accepted accounting principles in the united states of america . these 35 non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . investors should review the reconciliations of non-gaap financial measures to the comparable gaap financial measures that are included in this “management 's discussion and analysis of financial condition and results of operations.” critical accounting policies and estimates the discussion of our financial condition and results of operations is based upon our financial statements , which are prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of these financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . we base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our financial statements , the following accounting policies involve a greater degree of judgment , complexity and effect on materiality . story_separator_special_tag 41 sales and marketing expenses . sales and marketing expenses for 2014 increased $ 7.4 million , or 19 % , to $ 47.0 million from $ 39.6 million for 2013. this increase was primarily due to increased headcount in 2014 , which resulted in higher personnel-related costs of $ 3.3 million , commissions earned by sales personnel from new business of $ 2.3 million , occupancy costs of $ 569,000 and stock based compensation expense of $ 452,000. we also had increased promotional costs of $ 305,000 and depreciation expense of $ 299,000 in 2014 as compared to 2013. as a percentage of revenues , sales and marketing expenses were 37 % for 2014 compared to 38 % for 2013. as we expand our business , we will continue to add resources to our sales and marketing efforts over time , and we expect that these expenses will continue to increase in absolute dollars . research and development expenses . research and development expenses for 2014 increased $ 2.6 million , or 24 % , to $ 13.5 million from $ 10.9 million for 2013. this increase was primarily due to increased headcount in 2014 which resulted in higher personnel-related costs of $ 2.0 million , occupancy costs of $ 226,000 and stock based compensation expense of $ 173,000. we also incurred higher expenses for software and cloud based subscriptions of approximately $ 180,000 in 2014 as compared to 2013. as a percentage of revenues , research and development expenses were 11 % for 2014 , compared to 10 % for 2013. as we enhance and expand our solutions and applications , we expect that research and development expenses will continue to increase in absolute dollars . general and administrative expenses . general and administrative expenses for 2014 increased $ 3.0 million , or 18 % , to $ 20.2 million from $ 17.2 million for 2013. this increase was primarily due to increased headcount in 2014 which resulted in higher personnel-related costs of $ 707,000 , occupancy costs of $ 188,000 and stock based compensation expense of $ 423,000. the increase was also due to increased legal costs , including costs related to the leadtec acquisition of $ 692,000 and computer software and hardware maintenance of $ 358,000 in 2014 as compared to 2013. as a percentage of revenues , general and administrative expenses were 16 % for 2014 , compared to 17 % for 2013. going forward , we expect that general and administrative expenses will continue to increase in absolute dollars as we expand our business . amortization of intangible assets . amortization of intangible assets for 2014 decreased $ 302,000 from 2013. amortization expense for 2013 included $ 290,000 for the impairment of a certain non-competition agreement . other expense . other expense for 2014 included $ 338,000 for a one-time australian stamp duty tax related to the leadtec acquisition in october 2014. income tax expense . our 2014 provision for income taxes was $ 1.4 million and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . our 2013 provision for income taxes was $ 686,000 and included current state and foreign income taxes as well as deferred federal and state income taxes . it also included a one-time tax benefit for the retroactive benefit of the 2012 federal r & d credit . if this one-time tax benefit were excluded , our 2013 provision for income taxes would have been $ 803,000. see note k to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . 42 adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of a one-time australian stamp duty tax related to the leadtec acquisition in 2014 , as well as the impact of use tax refunds in 2014 and 2013 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_13_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_14_th story_separator_special_tag style= `` margin-top:12px ; margin-bottom:0px ; text-indent:4 % `` > during the last three years , inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future . off-balance sheet arrangements we do not have any off-balance sheet arrangements , investments in special purpose entities or undisclosed borrowings or debt . additionally , we are not a party to any derivative contracts or synthetic leases . contractual and commercial commitment summary our contractual obligations and commercial commitments as of december 31 , 2015 are summarized below : replace_table_token_15_th seasonality the size and breadth of our customer base mitigates the seasonality of any particular retailer . as a result , our results of operations are not materially affected by seasonality . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers accounting requirements for the recognition of revenue from contracts with customers

liquidity and capital resources at december 31 , 2015 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 144.0 million and accounts receivable , net of allowance for doubtful accounts of $ 17.6 million compared to cash and cash equivalents of $ 130.8 million and accounts receivable , net of allowance for doubtful accounts of $ 15.4 million at december 31 , 2014. marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . 43 net cash flows from operating activities net cash provided by operating activities was $ 14.4 million for 2015 compared to $ 16.8 million for 2014. the decrease in operating cash flows as compared to 2014 was driven by the decrease in accounts payable and accrued expenses due to the timing of payments and the leadtec acquisition in the fourth quarter of 2014 along with the decrease in other current and non-current assets also due to the timing of payments , which is somewhat offset by higher net income and the increase in non-cash expenses .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources at december 31 , 2015 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 144.0 million and accounts receivable , net of allowance for doubtful accounts of $ 17.6 million compared to cash and cash equivalents of $ 130.8 million and accounts receivable , net of allowance for doubtful accounts of $ 15.4 million at december 31 , 2014. marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . 43 net cash flows from operating activities net cash provided by operating activities was $ 14.4 million for 2015 compared to $ 16.8 million for 2014. the decrease in operating cash flows as compared to 2014 was driven by the decrease in accounts payable and accrued expenses due to the timing of payments and the leadtec acquisition in the fourth quarter of 2014 along with the decrease in other current and non-current assets also due to the timing of payments , which is somewhat offset by higher net income and the increase in non-cash expenses . ``` Suspicious Activity Report : trading partner analytics . our trading partner analytics solution consists of data analytics applications which allow our customers to improve their visibility across , and analysis of , their supply chains . through interactive data analysis , our retailer customers improve their visibility into supplier performance and their understanding of product sell-through . our revenues for this solution primarily consist of a monthly subscription fee . other trading partner solutions . the remainder of our revenues are derived from solutions that allow our customers to perform tasks such as barcode labeling or picking-and-packaging information tracking as well as purchases of miscellaneous supplies . these revenues are primarily transaction-based . 34 cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers , and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2015 , we had approximately 23,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with generally accepted accounting principles in the united states of america . these 35 non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . investors should review the reconciliations of non-gaap financial measures to the comparable gaap financial measures that are included in this “management 's discussion and analysis of financial condition and results of operations.” critical accounting policies and estimates the discussion of our financial condition and results of operations is based upon our financial statements , which are prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of these financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . we base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our financial statements , the following accounting policies involve a greater degree of judgment , complexity and effect on materiality . story_separator_special_tag 41 sales and marketing expenses . sales and marketing expenses for 2014 increased $ 7.4 million , or 19 % , to $ 47.0 million from $ 39.6 million for 2013. this increase was primarily due to increased headcount in 2014 , which resulted in higher personnel-related costs of $ 3.3 million , commissions earned by sales personnel from new business of $ 2.3 million , occupancy costs of $ 569,000 and stock based compensation expense of $ 452,000. we also had increased promotional costs of $ 305,000 and depreciation expense of $ 299,000 in 2014 as compared to 2013. as a percentage of revenues , sales and marketing expenses were 37 % for 2014 compared to 38 % for 2013. as we expand our business , we will continue to add resources to our sales and marketing efforts over time , and we expect that these expenses will continue to increase in absolute dollars . research and development expenses . research and development expenses for 2014 increased $ 2.6 million , or 24 % , to $ 13.5 million from $ 10.9 million for 2013. this increase was primarily due to increased headcount in 2014 which resulted in higher personnel-related costs of $ 2.0 million , occupancy costs of $ 226,000 and stock based compensation expense of $ 173,000. we also incurred higher expenses for software and cloud based subscriptions of approximately $ 180,000 in 2014 as compared to 2013. as a percentage of revenues , research and development expenses were 11 % for 2014 , compared to 10 % for 2013. as we enhance and expand our solutions and applications , we expect that research and development expenses will continue to increase in absolute dollars . general and administrative expenses . general and administrative expenses for 2014 increased $ 3.0 million , or 18 % , to $ 20.2 million from $ 17.2 million for 2013. this increase was primarily due to increased headcount in 2014 which resulted in higher personnel-related costs of $ 707,000 , occupancy costs of $ 188,000 and stock based compensation expense of $ 423,000. the increase was also due to increased legal costs , including costs related to the leadtec acquisition of $ 692,000 and computer software and hardware maintenance of $ 358,000 in 2014 as compared to 2013. as a percentage of revenues , general and administrative expenses were 16 % for 2014 , compared to 17 % for 2013. going forward , we expect that general and administrative expenses will continue to increase in absolute dollars as we expand our business . amortization of intangible assets . amortization of intangible assets for 2014 decreased $ 302,000 from 2013. amortization expense for 2013 included $ 290,000 for the impairment of a certain non-competition agreement . other expense . other expense for 2014 included $ 338,000 for a one-time australian stamp duty tax related to the leadtec acquisition in october 2014. income tax expense . our 2014 provision for income taxes was $ 1.4 million and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . our 2013 provision for income taxes was $ 686,000 and included current state and foreign income taxes as well as deferred federal and state income taxes . it also included a one-time tax benefit for the retroactive benefit of the 2012 federal r & d credit . if this one-time tax benefit were excluded , our 2013 provision for income taxes would have been $ 803,000. see note k to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . 42 adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of a one-time australian stamp duty tax related to the leadtec acquisition in 2014 , as well as the impact of use tax refunds in 2014 and 2013 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_13_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_14_th story_separator_special_tag style= `` margin-top:12px ; margin-bottom:0px ; text-indent:4 % `` > during the last three years , inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future . off-balance sheet arrangements we do not have any off-balance sheet arrangements , investments in special purpose entities or undisclosed borrowings or debt . additionally , we are not a party to any derivative contracts or synthetic leases . contractual and commercial commitment summary our contractual obligations and commercial commitments as of december 31 , 2015 are summarized below : replace_table_token_15_th seasonality the size and breadth of our customer base mitigates the seasonality of any particular retailer . as a result , our results of operations are not materially affected by seasonality . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers accounting requirements for the recognition of revenue from contracts with customers

on february 13 , 2020 , we repaid in full our outstanding aggregate principal amount of senior secured notes ( senior notes ) pursuant to a note purchase agreement dated march 12 , 2015 ( note purchase agreement ) and all subsequent amendments to the note purchase agreement . as a result , for the year ended december 31 , 2020 , we recognized a loss on debt extinguishment of the senior notes of $ 8.2 million composed of the $ 4.9 million prepayment fee and $ 3.3 million of unamortized debt discount and debt issuance costs . on february 19 , 2020 , we entered into separate , privately negotiated agreements with a limited number of holders of the 2021 notes and 2024 notes to repurchase approximately $ 188.0 million aggregate principal amount of the outstanding 2021 notes and 2024 notes . on april 8 , 2020 , we announced the completion of its cash tender offers , initiated on march 11 , 2020 , in which we settled approximately $ 76.7 million aggregate principal amount of the remaining $ 77.0 million of combined outstanding 2021 notes and 2024 notes . as a result of both transactions , for the year ended december 31 , 2020 , we recognized a $ 47.9 million loss on debt extinguishment of the convertible notes , which represented the difference between the carrying value and the fair value of the convertible notes just prior to the repurchase plus transaction costs . we also recognized reacquisition of $ 19.6 million in additional paid-in capital related to the equity component of the convertible notes based on the excess of the fair value of total considerations provided against the fair value of the convertible notes just prior to the repurchase . in may 2020 , we sold our collegium warrants investment for an aggregate purchase price of $ 6.0 million to armistice capital mater fund , ltd. as a result , we derecognized the remaining carrying value of $ 6.5 million of the financial asset and recognized a net loss of approximately $ 0.5 million , recorded within other gain ( loss ) on the condensed consolidated statement of comprehensive income , for the year ended december 31 , 2020. on may 20 , 2020 , we completed a merger ( the zyla merger ) with zyla life sciences ( zyla ) pursuant to an agreement and plan of merger ( merger agreement ) , dated as of march 16 , 2020. upon consummation of the zyla merger , each issued and outstanding share of zyla common stock converted into 2.5 shares of assertio holding 's common stock ( the exchange ratio ) , and each outstanding option or warrant to purchase zyla common stock converted into the right to purchase shares of assertio 's common stock . pursuant to the zyla merger , we acquired indocin products , sprix , and oxaydo , as well as zorvolex® and vivlodex® ( which are collectively known as the solumatrix products ) . subsequent to the zyla merger in may 2020 , we began implementing reorganization plans of our workforce and other restructuring activities to realize the synergies of the zyla merger and to re-align resources to strategic areas and drive growth . the reorganization plan primarily focused on reduction of staff at our headquarters offices ( zyla merger reorganization ) . as a result , $ 5.6 million of severance and benefits costs , which included $ 1.0 million of stock-based compensation expense associated with equity modifications for certain executives , and $ 0.2 million of other exit costs were recognized as restructuring charges , related to the zyla merger , during the year ended december 31 , 2020. we do not expect to incur significant costs related to the zyla merger reorganization beyond 2020. in september 2020 , we terminated our second amended and restated nano-reformulated compound license agreement ( the “ iceutica license ” ) , with iceutica inc. and iceutica pty ltd. ( collectively , “ iceutica ” ) . the iceutica license allowed us to utilize certain technology and intellectual property related to iceutica 's solumatrix technology and certain other rights of iceutica . the intellectual property related to solumatrix technology will no longer be used by us and we will no longer manufacture products using solumatrix technology . on december 15 , 2020 , we announced a restructuring plan designed to substantially reduce our operating footprint through the reduction of our workforce ( the december 2020 plan ) . we believe the december 2020 plan will allow us to adapt to the current market environment by reducing costs and better positioning us to continue to provide our differentiated products to patients and maximize shareholder value . the reorganization plan included a reduction of staff at our headquarters office and remote sales force . as a result , $ 9.6 million of severance and benefits costs and $ 1.6 million of other exit costs for the write off of fixed assets no longer in use and the early termination of fleet leases , were recognized as restructuring charges , related to the december 2020 plan , during the year ended december 31 , 2020. we expect to substantially complete the workforce reduction by the end of the first quarter of 2021. on february 9 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 22,600,000 shares of our common stock at a purchase price of $ 0.62 per share . the gross proceeds from the 43 offering were approximately $ 14.0 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 13.1 million . on february 12 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 35,000,000 shares of our common stock at a purchase price of $ 0.98 per share . story_separator_special_tag goodwill under the purchase method of accounting pursuant to asc 805 , goodwill is calculated as the excess of the purchase price over the fair value of the assets acquired and liabilities assumed . goodwill is recognized within other long-term assets , and is not amortized but subject to an annual review for impairment . goodwill is tested for impairment at the reporting unit level at least annually or when a triggering event occurs that could indicate a potential impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of net assets are below their carrying amounts . a reporting unit is the same as , or one level below , an operating segment . our operations are currently comprised of a single reporting unit . as of december 31 , 2020 , we determined , due to declining revenues and a decrease in our market capitalization , that it is more likely than not that the fair value of net assets are below their carrying amounts and , therefore , we performed the required goodwill impairment test under asc 350 , intangibles - goodwill and other . first , we estimated the fair value of the reporting unit to which goodwill is assigned using a combination of the income and market approach . we then compared the carrying amount of the reporting unit , including goodwill , to its fair value . since the fair value was less than the reporting unit 's carrying amount , we calculated the goodwill impairment as the difference between the reporting unit 's fair value and the carrying amount , not to exceed the carrying amount of goodwill . accordingly , we recorded an impairment charge of $ 17.4 million , recognized within total costs and expenses in the consolidated statement of comprehensive income , to impair the carrying amount of goodwill as of december 31 , 2020. income taxes we record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in our accompanying consolidated balance sheets , as well as operating loss and tax credit carryforwards . we follow the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the consolidated balance sheet and provide any necessary allowances as required . determining necessary allowances requires us to make assessments about the timing of future events , including the probability of expected future taxable income and available tax planning opportunities . when we determine that it is more likely than not that some portion or all of the deferred tax assets will not be realized in the future , the deferred tax assets are reduced by a valuation allowance . the valuation allowance is sufficient to reduce the deferred tax assets to the amount that we determine is more likely than not to be realized . at this time , we have recorded a full valuation allowance against the net deferred tax assets . we are subject to examination of our income tax returns by various tax authorities on a periodic basis . we regularly assess the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of our provision for income taxes . we have applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes , which requires application of a more‑likely‑than‑not threshold to the recognition and de‑recognition of uncertain tax positions . if the recognition threshold is met , the applicable accounting guidance permits us to recognize a tax benefit measured at the largest amount of tax benefit that , in our judgment , is more than 50 percent likely to be realized upon settlement . it further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change . we recognize tax liabilities in accordance with asc topic 740 , tax provisions and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available . due to the complexity of some of these uncertainties , the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities . these differences will be reflected as increases or decreases to income tax expense in the period in which they are determined . 47 results of operations the following table reflects our results of operations for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th 48 revenues the following table reflects total revenues for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_3_th ( 1 ) products acquired in connection with zyla merger represent product sales , net for the period may 20 , 2020 through december 31 , 2020 . ( 2 ) includes product sales for gralise , which was divested in january 2020 ; product sales adjustments for previously divested products nucynta and lazanda ; and , product sales for non-promoted products oxaydo and solumatrix , which were acquired from zyla in may 2020. product sales , net for the year ended december 31 , 2020 , product sales primarily consisted of sales from indocin products , cambia , zipsor and sprix . we began shipping and recognizing product sales for indocin products , sprix , and non-promoted products , oxaydo and solumatrix , upon the zyla merger on may 20 , 2020. cambia net product sales for the year ended december 31 , 2020 decreased $ 4.1 million as compared to the same period in 2019 primarily due to lower volume and unfavorable payor mix . zipsor net product sales for the year ended december 31 , 2020 increased $ 0.8 million as compared to the same period in 2019 primarily due to the effect of prior

liquidity and capital resources historically and through december 31 , 2020 , we have financed our operations and business development efforts primarily from product sales , private and public sales of equity securities , including convertible debt securities , the proceeds of secured borrowings , the sale of rights to future royalties and milestones , upfront license , milestone and fees from collaborative and license partners . on february 9 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 22,600,000 shares of our common stock at a purchase price of $ 0.62 per share . the gross proceeds from the offering were approximately $ 14.0 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 13.1 million . on february 12 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 35,000,000 shares of our common stock at a purchase price of $ 0.98 per share . the gross proceeds from the offering were approximately $ 34.3 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 32.2 million . we intend to use proceeds from both offerings for general corporate purposes , including general working capital . 53 on july 31 , 2020 , we voluntarily redeemed $ 10.0 million of aggregate principal plus accrued interest on our secured notes due 2024 , which was assumed as part of the zyla merger . additionally upon the close of the zyla merger , we assumed and immediately paid off a $ 3.0 million promissory note and a $ 10.0 million 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 historically and through december 31 , 2020 , we have financed our operations and business development efforts primarily from product sales , private and public sales of equity securities , including convertible debt securities , the proceeds of secured borrowings , the sale of rights to future royalties and milestones , upfront license , milestone and fees from collaborative and license partners . on february 9 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 22,600,000 shares of our common stock at a purchase price of $ 0.62 per share . the gross proceeds from the offering were approximately $ 14.0 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 13.1 million . on february 12 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 35,000,000 shares of our common stock at a purchase price of $ 0.98 per share . the gross proceeds from the offering were approximately $ 34.3 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 32.2 million . we intend to use proceeds from both offerings for general corporate purposes , including general working capital . 53 on july 31 , 2020 , we voluntarily redeemed $ 10.0 million of aggregate principal plus accrued interest on our secured notes due 2024 , which was assumed as part of the zyla merger . additionally upon the close of the zyla merger , we assumed and immediately paid off a $ 3.0 million promissory note and a $ 10.0 million credit agreement . ``` Suspicious Activity Report : on february 13 , 2020 , we repaid in full our outstanding aggregate principal amount of senior secured notes ( senior notes ) pursuant to a note purchase agreement dated march 12 , 2015 ( note purchase agreement ) and all subsequent amendments to the note purchase agreement . as a result , for the year ended december 31 , 2020 , we recognized a loss on debt extinguishment of the senior notes of $ 8.2 million composed of the $ 4.9 million prepayment fee and $ 3.3 million of unamortized debt discount and debt issuance costs . on february 19 , 2020 , we entered into separate , privately negotiated agreements with a limited number of holders of the 2021 notes and 2024 notes to repurchase approximately $ 188.0 million aggregate principal amount of the outstanding 2021 notes and 2024 notes . on april 8 , 2020 , we announced the completion of its cash tender offers , initiated on march 11 , 2020 , in which we settled approximately $ 76.7 million aggregate principal amount of the remaining $ 77.0 million of combined outstanding 2021 notes and 2024 notes . as a result of both transactions , for the year ended december 31 , 2020 , we recognized a $ 47.9 million loss on debt extinguishment of the convertible notes , which represented the difference between the carrying value and the fair value of the convertible notes just prior to the repurchase plus transaction costs . we also recognized reacquisition of $ 19.6 million in additional paid-in capital related to the equity component of the convertible notes based on the excess of the fair value of total considerations provided against the fair value of the convertible notes just prior to the repurchase . in may 2020 , we sold our collegium warrants investment for an aggregate purchase price of $ 6.0 million to armistice capital mater fund , ltd. as a result , we derecognized the remaining carrying value of $ 6.5 million of the financial asset and recognized a net loss of approximately $ 0.5 million , recorded within other gain ( loss ) on the condensed consolidated statement of comprehensive income , for the year ended december 31 , 2020. on may 20 , 2020 , we completed a merger ( the zyla merger ) with zyla life sciences ( zyla ) pursuant to an agreement and plan of merger ( merger agreement ) , dated as of march 16 , 2020. upon consummation of the zyla merger , each issued and outstanding share of zyla common stock converted into 2.5 shares of assertio holding 's common stock ( the exchange ratio ) , and each outstanding option or warrant to purchase zyla common stock converted into the right to purchase shares of assertio 's common stock . pursuant to the zyla merger , we acquired indocin products , sprix , and oxaydo , as well as zorvolex® and vivlodex® ( which are collectively known as the solumatrix products ) . subsequent to the zyla merger in may 2020 , we began implementing reorganization plans of our workforce and other restructuring activities to realize the synergies of the zyla merger and to re-align resources to strategic areas and drive growth . the reorganization plan primarily focused on reduction of staff at our headquarters offices ( zyla merger reorganization ) . as a result , $ 5.6 million of severance and benefits costs , which included $ 1.0 million of stock-based compensation expense associated with equity modifications for certain executives , and $ 0.2 million of other exit costs were recognized as restructuring charges , related to the zyla merger , during the year ended december 31 , 2020. we do not expect to incur significant costs related to the zyla merger reorganization beyond 2020. in september 2020 , we terminated our second amended and restated nano-reformulated compound license agreement ( the “ iceutica license ” ) , with iceutica inc. and iceutica pty ltd. ( collectively , “ iceutica ” ) . the iceutica license allowed us to utilize certain technology and intellectual property related to iceutica 's solumatrix technology and certain other rights of iceutica . the intellectual property related to solumatrix technology will no longer be used by us and we will no longer manufacture products using solumatrix technology . on december 15 , 2020 , we announced a restructuring plan designed to substantially reduce our operating footprint through the reduction of our workforce ( the december 2020 plan ) . we believe the december 2020 plan will allow us to adapt to the current market environment by reducing costs and better positioning us to continue to provide our differentiated products to patients and maximize shareholder value . the reorganization plan included a reduction of staff at our headquarters office and remote sales force . as a result , $ 9.6 million of severance and benefits costs and $ 1.6 million of other exit costs for the write off of fixed assets no longer in use and the early termination of fleet leases , were recognized as restructuring charges , related to the december 2020 plan , during the year ended december 31 , 2020. we expect to substantially complete the workforce reduction by the end of the first quarter of 2021. on february 9 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 22,600,000 shares of our common stock at a purchase price of $ 0.62 per share . the gross proceeds from the 43 offering were approximately $ 14.0 million . after placement agent fees and other offering expenses payable by us , we received net proceeds of approximately $ 13.1 million . on february 12 , 2021 , we completed a registered direct offering with certain institutional investors and accredited investors to sell 35,000,000 shares of our common stock at a purchase price of $ 0.98 per share . story_separator_special_tag goodwill under the purchase method of accounting pursuant to asc 805 , goodwill is calculated as the excess of the purchase price over the fair value of the assets acquired and liabilities assumed . goodwill is recognized within other long-term assets , and is not amortized but subject to an annual review for impairment . goodwill is tested for impairment at the reporting unit level at least annually or when a triggering event occurs that could indicate a potential impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of net assets are below their carrying amounts . a reporting unit is the same as , or one level below , an operating segment . our operations are currently comprised of a single reporting unit . as of december 31 , 2020 , we determined , due to declining revenues and a decrease in our market capitalization , that it is more likely than not that the fair value of net assets are below their carrying amounts and , therefore , we performed the required goodwill impairment test under asc 350 , intangibles - goodwill and other . first , we estimated the fair value of the reporting unit to which goodwill is assigned using a combination of the income and market approach . we then compared the carrying amount of the reporting unit , including goodwill , to its fair value . since the fair value was less than the reporting unit 's carrying amount , we calculated the goodwill impairment as the difference between the reporting unit 's fair value and the carrying amount , not to exceed the carrying amount of goodwill . accordingly , we recorded an impairment charge of $ 17.4 million , recognized within total costs and expenses in the consolidated statement of comprehensive income , to impair the carrying amount of goodwill as of december 31 , 2020. income taxes we record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in our accompanying consolidated balance sheets , as well as operating loss and tax credit carryforwards . we follow the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the consolidated balance sheet and provide any necessary allowances as required . determining necessary allowances requires us to make assessments about the timing of future events , including the probability of expected future taxable income and available tax planning opportunities . when we determine that it is more likely than not that some portion or all of the deferred tax assets will not be realized in the future , the deferred tax assets are reduced by a valuation allowance . the valuation allowance is sufficient to reduce the deferred tax assets to the amount that we determine is more likely than not to be realized . at this time , we have recorded a full valuation allowance against the net deferred tax assets . we are subject to examination of our income tax returns by various tax authorities on a periodic basis . we regularly assess the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of our provision for income taxes . we have applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes , which requires application of a more‑likely‑than‑not threshold to the recognition and de‑recognition of uncertain tax positions . if the recognition threshold is met , the applicable accounting guidance permits us to recognize a tax benefit measured at the largest amount of tax benefit that , in our judgment , is more than 50 percent likely to be realized upon settlement . it further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change . we recognize tax liabilities in accordance with asc topic 740 , tax provisions and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available . due to the complexity of some of these uncertainties , the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities . these differences will be reflected as increases or decreases to income tax expense in the period in which they are determined . 47 results of operations the following table reflects our results of operations for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th 48 revenues the following table reflects total revenues for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_3_th ( 1 ) products acquired in connection with zyla merger represent product sales , net for the period may 20 , 2020 through december 31 , 2020 . ( 2 ) includes product sales for gralise , which was divested in january 2020 ; product sales adjustments for previously divested products nucynta and lazanda ; and , product sales for non-promoted products oxaydo and solumatrix , which were acquired from zyla in may 2020. product sales , net for the year ended december 31 , 2020 , product sales primarily consisted of sales from indocin products , cambia , zipsor and sprix . we began shipping and recognizing product sales for indocin products , sprix , and non-promoted products , oxaydo and solumatrix , upon the zyla merger on may 20 , 2020. cambia net product sales for the year ended december 31 , 2020 decreased $ 4.1 million as compared to the same period in 2019 primarily due to lower volume and unfavorable payor mix . zipsor net product sales for the year ended december 31 , 2020 increased $ 0.8 million as compared to the same period in 2019 primarily due to the effect of prior