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

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


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

