license revenue we currently derive a substantial majority of our revenue from cash collected on the sale of our content management and web building software licenses at workshop events held throughout the year , as well as principal collected on the sale of software licenses sold through extended payment term arrangements ( eptas ) . in the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a software as a service ( saas ) model . however , as we recognize revenue on our epta contracts as cash is collected , we will continue to derive software license revenue for the next two to three years as the original sale that derived the epta contract was a software license . 34 professional services revenue we generate professional services revenue primarily from website design and development , search engine optimization services , link building , paid search management services , and conversion rate optimization services . these services are typically billed on a fixed price basis or on a monthly recurring basis with an initial term of six to twelve months . subscription and hosting revenue during the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a saas model which provides access to our software for a monthly fee . we also derive revenue from monthly web hosting fees from our software license customers who utilize our hosting services . revenue is recognized ratably on a daily basis over the life of the contract for all subscription and hosting services . the typical contract is a recurring monthly contract , although terms range up to 12 months . as we progress in this transition from a software license model to a saas model , key metrics , such as net subscriber additions and monthly churn become increasingly important metrics in measuring fluctuations in revenue . product revenue we generate product revenue from the sale of dvd training courses covering a host of online marketing topics , including affiliate marketing , amazon® and ebay® training , comparison shopping engines , competitive reconnaissance , conversion rate optimization , keyword research , link building , localization and regionalization , paid search campaigns , permission marketing , search engine optimization , social media marketing , and google® analytics . these services are typically billed on a fixed price basis . commission revenue we generate commissions from contracted third-party companies who telemarket complementary products and services to our customer base . this commission is typically paid as a percentage of revenue generated by these third-party companies on products and services sold to our customer base . as we are currently reliant upon sales generated through our workshop channel , for both current revenue in the form of cash collected on the initial sale of the software license , dvd training courses , or professional services sold through our events , as well as future revenue in the form of principal cash collected on epta contracts , our revenue will fluctuate based upon the quantity of sales teams we have deployed at any point in time , quantity of events held , average cash percentage of buyers at events , average number of buying units at events , average purchase price , and average sales rate at each event . in addition to the metrics associated with our workshop events , our revenue will fluctuate with the dollar volume of collections on our receivables , as we recognize revenue upon receipt of cash from our customers and not at the time of sale . we have historically sold our products and services through an educational seminar model which has subjected us to claims by governmental agencies that we are required to register as a seller of business opportunities , as well as raised questions about the manner in which we sell the product . while we have successfully defended the claim of selling a business opportunity , except in the state of california which has a statute with different requirements than other jurisdictions , we have made changes to the manner in which we sell the product at our seminars in an effort to be more transparent . we do not believe our model constitutes a business opportunity , but we have the ability to adjust our model if there are changes in the law relative to selling business opportunities . our ability to effectively align our business model with the needs of our customers will impact our future growth opportunities . economic factors the tight credit markets in place over the past two years has adversely affected our business as consumers and businesses continued to be limited in their ability to obtain alternate sources of financing . since the tightening of the credit markets began , we have seen an increasing percentage of customers elect to utilize our financing option , which have terms of between two and three years . because we recognize revenue as cash is collected , and not at the time of sale , this increase in the percentage of customers utilizing our financing option has negatively impacted our current revenue , but will result in additional future revenue as customer payments are collected . 35 opportunities technological and product innovation has been the foundation of our long-term growth , and we intend to maintain our commitment to invest in product development , engineering excellence , and delivering high-quality products and services to customers . recognizing that one of our primary business objectives is to help entrepreneurs and small and medium businesses increase the effectiveness and visibility of their online presence , we organized crexendo web services . crexendo web services offers a wide range of services , including content management , saas , seo services , search engine management services , website and logo design services and conversion rate optimization services . story_separator_special_tag income tax provision during fiscal 2009 , we recorded an income tax provision of $ 5,681,000. this compares to an income tax provision of $ 3,039,000 during fiscal 2008. the income tax provision recorded in fiscal 2009 is higher than federal , state , and foreign statutory rates as a result of our settlement with the internal revenue service ( “ irs ” ) and the creation of a valuation allowance on certain deferred tax assets . in august 2009 , we reached a settlement with the irs resulting from its audit of our income tax returns for fiscal years 2007 , 2006 , and 2005. the settlement with the irs related to the following items : · the deductibility , under the provisions of internal revenue code section 274 ( “ section 274 ” ) , of 50 % of the cost of meals provided to attendees at our preview and workshop training sessions . the settlement reached with the irs appeals office allows us to deduct 100 % of all meals provided to attendees at both the preview and workshop training sessions . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . 40 · limitations imposed by internal revenue code section 382 ( “ section 382 ” ) . section 382 imposes limitations on a corporation 's ability to utilize its nols if it experiences an “ ownership change . ” in general terms , an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period . from the time of our formation through fiscal 2002 , we issued a significant number of shares , resulting in two changes of control , as defined by section 382. as a result of the most recent ownership change , utilization of our pre-ownership change nol carryovers are subject to an annual limitation under section 382. the annual limitation is determined by multiplying the value of our stock at the time of the ownership change by the applicable federal long-term tax-exempt rate . any unused annual limitation may be carried over to later years ( until those nols expire ) , and the amount of the limitation may , under certain circumstances , be increased by the “ recognized built-in gains ” that occur during the five-year period after the ownership change ( the “ recognition period ” ) . we had previously determined we had sufficient built-in gains to offset future income without limitation . as a result of the settlement reached with the irs , we conceded that the fiscal 2002 ownership change resulted in a section 382 limitation of $ 461,000 per year and that there were not sufficient built-in gains to offset future income . based on this settlement , we have determined that it is more likely than not that approximately $ 14,641,000 of our federal nol carry forwards will expire unutilized . we do not account for the forgone nol carryovers in our deferred tax assets and only account for the nol carryforwards that will not expire unutilized as a result of the restrictions of irc section 382 . · the irs argued to re-open our income tax returns for the fiscal years ended june 30 , 2004 and 2003 , both of which are closed from examination . the irs argued that under section 481 ( a ) there was a change in “ method of accounting ” with respect to our recognized built-in-gains described above . as part of the settlement , the irs appeals office found no merit to the assertion that section 481 ( a ) can be applied to the fiscal 2004 and 2003 tax returns . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . segment operating results the information below is organized in accordance with our three reportable segments . segment operating income ( loss ) is equal to segment net revenue less segment cost of revenue , sales and marketing , and general and administrative expenses . segment expenses do not include certain costs , such as corporate general and administrative expenses and share-based compensation expenses , which are not allocated to specific segments . operating results of our storesonline division ( in thousands ) replace_table_token_10_th year ended december 31 , 2010 compared to year ended december 31 , 2009 revenue revenue for the year ended december 31 , 2010 decreased 15 % to $ 64,471,000 from $ 75,880,000 for the year ended december 31 , 2009 . 41 revenue from our storesonline division is generated primarily through cash collected on the sale of storesonline software licenses at workshop events held throughout the year , as well as principal amounts collected on the sale of storesonline software licenses sold through eptas . fees for our storesonline software ( sos ) licenses sold under eptas are recognized as revenue as cash payments are received from the customer and not at the time of sale . revenue related to cash collected under epta agreements decreased to $ 18,028,000 for the year ended december 31 , 2010 , compared to $ 24,966,000 for the year ended december 31 , 2009. the decrease in cash collected under epta agreements was primarily due to a decrease in our accounts receivable balance , which for storesonline , generates revenue as cash is collected in future periods . our typical epta contract is for a period of two to three years . as such , increases in sales at our workshop events made through epta 's are initially recognized in our balance sheet , net of bad debt , through our deferred revenue balance , rather than through the income statement . as we have decreased the number of sales teams over the past two years from nine teams , to six teams , and finally to four teams , our principal collection

liquidity and capital resources we had working capital of $ 11,388,000 and $ 17,064,000 as of december 31 , 2010 and 2009 , respectively . we had working capital , excluding deferred revenue , of $ 25,145,000 and $ 33,431,000 as of december 31 , 2010 and 2009 , respectively . deferred revenue balances represent historical sales for which we can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . cash and cash equivalents we had cash and cash equivalents of $ 14,207,000 and $ 21,549,000 , respectively . for the year ended december 31 , 2010 , we generated positive cash flows from operating activities of $ 39,000 compared to a use of cash for operating activities of $ 1,676,000 ( unaudited ) for the year ended december 31 , 2009. for the six months ended december 31 , 2009 we generated positive cash flows from operating activities of $ 2,578,000 compared to a use of cash for operating activities of $ 6,083,000 ( unaudited ) for the six months ended december 31 , 2008. during the year ended june 30 , 2009 we used $ 6,985,000 of cash for operating activities . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 21,564,000 and $ 20,426,000 as of december 31 , 2010 and 2009 , respectively . long-term trade receivables , net of allowance for doubtful accounts , were $ 9,442,000 and $ 6,264,000 as of december 31 , 2010 and 2009 , 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.
     ```liquidity and capital resources we had working capital of $ 11,388,000 and $ 17,064,000 as of december 31 , 2010 and 2009 , respectively . we had working capital , excluding deferred revenue , of $ 25,145,000 and $ 33,431,000 as of december 31 , 2010 and 2009 , respectively . deferred revenue balances represent historical sales for which we can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . cash and cash equivalents we had cash and cash equivalents of $ 14,207,000 and $ 21,549,000 , respectively . for the year ended december 31 , 2010 , we generated positive cash flows from operating activities of $ 39,000 compared to a use of cash for operating activities of $ 1,676,000 ( unaudited ) for the year ended december 31 , 2009. for the six months ended december 31 , 2009 we generated positive cash flows from operating activities of $ 2,578,000 compared to a use of cash for operating activities of $ 6,083,000 ( unaudited ) for the six months ended december 31 , 2008. during the year ended june 30 , 2009 we used $ 6,985,000 of cash for operating activities . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 21,564,000 and $ 20,426,000 as of december 31 , 2010 and 2009 , respectively . long-term trade receivables , net of allowance for doubtful accounts , were $ 9,442,000 and $ 6,264,000 as of december 31 , 2010 and 2009 , respectively .
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 Suspicious Activity Report : license revenue we currently derive a substantial majority of our revenue from cash collected on the sale of our content management and web building software licenses at workshop events held throughout the year , as well as principal collected on the sale of software licenses sold through extended payment term arrangements ( eptas ) . in the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a software as a service ( saas ) model . however , as we recognize revenue on our epta contracts as cash is collected , we will continue to derive software license revenue for the next two to three years as the original sale that derived the epta contract was a software license . 34 professional services revenue we generate professional services revenue primarily from website design and development , search engine optimization services , link building , paid search management services , and conversion rate optimization services . these services are typically billed on a fixed price basis or on a monthly recurring basis with an initial term of six to twelve months . subscription and hosting revenue during the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a saas model which provides access to our software for a monthly fee . we also derive revenue from monthly web hosting fees from our software license customers who utilize our hosting services . revenue is recognized ratably on a daily basis over the life of the contract for all subscription and hosting services . the typical contract is a recurring monthly contract , although terms range up to 12 months . as we progress in this transition from a software license model to a saas model , key metrics , such as net subscriber additions and monthly churn become increasingly important metrics in measuring fluctuations in revenue . product revenue we generate product revenue from the sale of dvd training courses covering a host of online marketing topics , including affiliate marketing , amazon® and ebay® training , comparison shopping engines , competitive reconnaissance , conversion rate optimization , keyword research , link building , localization and regionalization , paid search campaigns , permission marketing , search engine optimization , social media marketing , and google® analytics . these services are typically billed on a fixed price basis . commission revenue we generate commissions from contracted third-party companies who telemarket complementary products and services to our customer base . this commission is typically paid as a percentage of revenue generated by these third-party companies on products and services sold to our customer base . as we are currently reliant upon sales generated through our workshop channel , for both current revenue in the form of cash collected on the initial sale of the software license , dvd training courses , or professional services sold through our events , as well as future revenue in the form of principal cash collected on epta contracts , our revenue will fluctuate based upon the quantity of sales teams we have deployed at any point in time , quantity of events held , average cash percentage of buyers at events , average number of buying units at events , average purchase price , and average sales rate at each event . in addition to the metrics associated with our workshop events , our revenue will fluctuate with the dollar volume of collections on our receivables , as we recognize revenue upon receipt of cash from our customers and not at the time of sale . we have historically sold our products and services through an educational seminar model which has subjected us to claims by governmental agencies that we are required to register as a seller of business opportunities , as well as raised questions about the manner in which we sell the product . while we have successfully defended the claim of selling a business opportunity , except in the state of california which has a statute with different requirements than other jurisdictions , we have made changes to the manner in which we sell the product at our seminars in an effort to be more transparent . we do not believe our model constitutes a business opportunity , but we have the ability to adjust our model if there are changes in the law relative to selling business opportunities . our ability to effectively align our business model with the needs of our customers will impact our future growth opportunities . economic factors the tight credit markets in place over the past two years has adversely affected our business as consumers and businesses continued to be limited in their ability to obtain alternate sources of financing . since the tightening of the credit markets began , we have seen an increasing percentage of customers elect to utilize our financing option , which have terms of between two and three years . because we recognize revenue as cash is collected , and not at the time of sale , this increase in the percentage of customers utilizing our financing option has negatively impacted our current revenue , but will result in additional future revenue as customer payments are collected . 35 opportunities technological and product innovation has been the foundation of our long-term growth , and we intend to maintain our commitment to invest in product development , engineering excellence , and delivering high-quality products and services to customers . recognizing that one of our primary business objectives is to help entrepreneurs and small and medium businesses increase the effectiveness and visibility of their online presence , we organized crexendo web services . crexendo web services offers a wide range of services , including content management , saas , seo services , search engine management services , website and logo design services and conversion rate optimization services . story_separator_special_tag income tax provision during fiscal 2009 , we recorded an income tax provision of $ 5,681,000. this compares to an income tax provision of $ 3,039,000 during fiscal 2008. the income tax provision recorded in fiscal 2009 is higher than federal , state , and foreign statutory rates as a result of our settlement with the internal revenue service ( “ irs ” ) and the creation of a valuation allowance on certain deferred tax assets . in august 2009 , we reached a settlement with the irs resulting from its audit of our income tax returns for fiscal years 2007 , 2006 , and 2005. the settlement with the irs related to the following items : · the deductibility , under the provisions of internal revenue code section 274 ( “ section 274 ” ) , of 50 % of the cost of meals provided to attendees at our preview and workshop training sessions . the settlement reached with the irs appeals office allows us to deduct 100 % of all meals provided to attendees at both the preview and workshop training sessions . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . 40 · limitations imposed by internal revenue code section 382 ( “ section 382 ” ) . section 382 imposes limitations on a corporation 's ability to utilize its nols if it experiences an “ ownership change . ” in general terms , an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period . from the time of our formation through fiscal 2002 , we issued a significant number of shares , resulting in two changes of control , as defined by section 382. as a result of the most recent ownership change , utilization of our pre-ownership change nol carryovers are subject to an annual limitation under section 382. the annual limitation is determined by multiplying the value of our stock at the time of the ownership change by the applicable federal long-term tax-exempt rate . any unused annual limitation may be carried over to later years ( until those nols expire ) , and the amount of the limitation may , under certain circumstances , be increased by the “ recognized built-in gains ” that occur during the five-year period after the ownership change ( the “ recognition period ” ) . we had previously determined we had sufficient built-in gains to offset future income without limitation . as a result of the settlement reached with the irs , we conceded that the fiscal 2002 ownership change resulted in a section 382 limitation of $ 461,000 per year and that there were not sufficient built-in gains to offset future income . based on this settlement , we have determined that it is more likely than not that approximately $ 14,641,000 of our federal nol carry forwards will expire unutilized . we do not account for the forgone nol carryovers in our deferred tax assets and only account for the nol carryforwards that will not expire unutilized as a result of the restrictions of irc section 382 . · the irs argued to re-open our income tax returns for the fiscal years ended june 30 , 2004 and 2003 , both of which are closed from examination . the irs argued that under section 481 ( a ) there was a change in “ method of accounting ” with respect to our recognized built-in-gains described above . as part of the settlement , the irs appeals office found no merit to the assertion that section 481 ( a ) can be applied to the fiscal 2004 and 2003 tax returns . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . segment operating results the information below is organized in accordance with our three reportable segments . segment operating income ( loss ) is equal to segment net revenue less segment cost of revenue , sales and marketing , and general and administrative expenses . segment expenses do not include certain costs , such as corporate general and administrative expenses and share-based compensation expenses , which are not allocated to specific segments . operating results of our storesonline division ( in thousands ) replace_table_token_10_th year ended december 31 , 2010 compared to year ended december 31 , 2009 revenue revenue for the year ended december 31 , 2010 decreased 15 % to $ 64,471,000 from $ 75,880,000 for the year ended december 31 , 2009 . 41 revenue from our storesonline division is generated primarily through cash collected on the sale of storesonline software licenses at workshop events held throughout the year , as well as principal amounts collected on the sale of storesonline software licenses sold through eptas . fees for our storesonline software ( sos ) licenses sold under eptas are recognized as revenue as cash payments are received from the customer and not at the time of sale . revenue related to cash collected under epta agreements decreased to $ 18,028,000 for the year ended december 31 , 2010 , compared to $ 24,966,000 for the year ended december 31 , 2009. the decrease in cash collected under epta agreements was primarily due to a decrease in our accounts receivable balance , which for storesonline , generates revenue as cash is collected in future periods . our typical epta contract is for a period of two to three years . as such , increases in sales at our workshop events made through epta 's are initially recognized in our balance sheet , net of bad debt , through our deferred revenue balance , rather than through the income statement . as we have decreased the number of sales teams over the past two years from nine teams , to six teams , and finally to four teams , our principal collection

