any interruptions to , or decline in , the amount or quality of our raw materials supply could materially disrupt our production and adversely affect our business and financial condition and financial prospects . the average price that we paid for chestnuts in 2013 and 2012 was approximately $ 1,507 metric ton and $ 1,433 per metric ton , respectively , excluding value added taxes . in the past few years , increasing inflation pressures weighed on the chinese economy which reflected on agricultural product prices . we do not have effective means and do not currently hedge against changes in our raw material prices . consequently , if the costs of our raw materials increase further and we are unable to offset these increases by raising the prices of our products , our profit margins and financial condition could be adversely affected . 26 uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 21.1 % and 24.4 % of our working capital requirements in 2013 and 2012 , respectively , from the proceeds of short-term loans from chinese banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2013 and 2012 were approximately $ 32.8 million and $ 34.4 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . in addition , we completed two private placement financings in september 2010 and october 2009 with net proceeds of $ 9.0 million and $ 10.9 million , respectively , the proceeds of which were primarily used as working capital . we also secured a $ 15 million loan from deutsche investitions- und entwicklungsgesellshaft ( deg ) in may 2010 , which we have fully drawn down in 2011. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . we anticipate that our existing capital resources , cash flows from operations and current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2014. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2013 we gradually shortened credit terms for many of our international and domestic customers from between 30 and 180 days to between 30 and 60 days . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . recent developments and events on march 13 , 2014 , we acquired 12,750 shares , or 51 % share capital , of athena from two existing shareholders of athena for an aggregate purchase price of 1,995,000 ( or approximately us $ 2,702,650 ) of which 500,000 ( or approximately us $ 677,350 ) ( deferred payment ) remains due and payable to intiraimi on february 7 , 2015 under the intiraimi purchase agreement if certain conditions are met . under the terms of the intiraimi purchase agreement , we agreed to pledge 12,750 shares , or 51 % share capital , of athena to intiraimi to guarantee the deferred payment . story_separator_special_tag b. cross-reference to other disclosures currently required under u.s. gaap for other reclassification items ( that are not required under u.s. gaap ) to be reclassified directly to net income in their entirety in the same reporting period . this would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account ( e.g . , inventory for pension-related amounts ) instead of directly to income or expense . the amendments are effective for reporting periods beginning after december 15 , 2012 , for public companies . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in february 2013 , the fasb issued asu no . 2013-03 , clarifying the scope and applicability of a particular disclosure to nonpublic entities ( asu 2013-03 ) . the amendment clarifies that the requirement to disclose the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety ( as level 1 , level 2 , or level 3 ) does not apply to private companies and nonpublic not-for-profits for items that are not measured at fair value in the statement of financial position , but for which fair value is disclosed . the amendments are effective upon issuance . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . 34 in march 2013 , the fasb issued asu no . 2013-04 , obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date ( asu 2013-04 ) . the update provides guidance for the recognition , measurement , and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this asu is fixed at the reporting date , except for obligations addressed within existing guidance in us gaap . the guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors . the guidance in this asu also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-05 , parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity ( asu 2013-05 ) . the asu clarifies that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business ( other than a sale of in substance real estate or conveyance of oil and gas mineral rights ) within a foreign entity , the parent is required to apply the guidance in accounting standards codification 830-30 to release any related cumulative translation adjustment into net income . the asu provides that the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided . the amendments take effect prospectively for public companies for fiscal years beginning after december 15 , 2013 , and interim reporting periods within those years . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-07 , liquidation basis of accounting ( asu 2013-07 ) . the asu requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent . liquidation would be considered imminent when the likelihood is remote that the reporting entity would return from liquidation and either : ( a ) a plan for liquidation has been approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or the entity will return from liquidation , or ( b ) a plan for liquidation is imposed by other forces , and the likelihood is remote that the entity will return from liquidation . if a plan for liquidation was specified in an entity 's governing documents at its inception ( for example , limited-life entities ) , then liquidation would be imminent only if the approved plan for liquidation differs from the plan specified at the entity 's inception . the amendments take effect for all entities reporting under u.s. gaap , except investment companies that are regulated under the investment company act of 1940. the standard is effective for annual reporting periods beginning after december 31 , 2013 , and interim reporting periods therein . early adoption is permitted . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in july 2013 , the fasb issued asu no . 2013-11 , income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists

provision for bad debts ( 83,618 ) social security ( 136,910 ) land use fees ( 83,450 ) government subsidy income government subsidy income increased from approximately $ 1.2 million in 2012 to $ 1.6 million in 2013 , representing grants received mostly from the junan county government and beijing government to assist us in our research and business development . income before taxation and minority interest income before taxation and minority interest decreased $ 6.2 million , or 21.1 % , to $ 23.3 million in 2013 from $ 29.5 million in 2012 as a result of lower revenues , partially offset by lower costs of revenues and operating expenses , for the reasons indicated above . income taxes income taxes decreased approximately $ 2.2 million , or 28.0 % , to $ 5.6 million in 2013 , as compared to $ 7.7 million in 2012. this decrease was attributable to the lower income earned in 2013 as compared to 2012. minority interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , which is reflected in the minority interest of $ 1.1 million in 2013 and $ 1.3 million in 2012. net income net income decreased $ 3.8 million , or 18.6 % , to $ 16.6 million in 2013 from $ 20.4 million in 2012 , as a result of the factors described above . liquidity and capital resources general our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in october 2009 and september 2010 , we obtained approximately $ 11 million and 9 million , respectively , from two private placement transactions .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```provision for bad debts ( 83,618 ) social security ( 136,910 ) land use fees ( 83,450 ) government subsidy income government subsidy income increased from approximately $ 1.2 million in 2012 to $ 1.6 million in 2013 , representing grants received mostly from the junan county government and beijing government to assist us in our research and business development . income before taxation and minority interest income before taxation and minority interest decreased $ 6.2 million , or 21.1 % , to $ 23.3 million in 2013 from $ 29.5 million in 2012 as a result of lower revenues , partially offset by lower costs of revenues and operating expenses , for the reasons indicated above . income taxes income taxes decreased approximately $ 2.2 million , or 28.0 % , to $ 5.6 million in 2013 , as compared to $ 7.7 million in 2012. this decrease was attributable to the lower income earned in 2013 as compared to 2012. minority interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , which is reflected in the minority interest of $ 1.1 million in 2013 and $ 1.3 million in 2012. net income net income decreased $ 3.8 million , or 18.6 % , to $ 16.6 million in 2013 from $ 20.4 million in 2012 , as a result of the factors described above . liquidity and capital resources general our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in october 2009 and september 2010 , we obtained approximately $ 11 million and 9 million , respectively , from two private placement transactions .
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 Suspicious Activity Report : any interruptions to , or decline in , the amount or quality of our raw materials supply could materially disrupt our production and adversely affect our business and financial condition and financial prospects . the average price that we paid for chestnuts in 2013 and 2012 was approximately $ 1,507 metric ton and $ 1,433 per metric ton , respectively , excluding value added taxes . in the past few years , increasing inflation pressures weighed on the chinese economy which reflected on agricultural product prices . we do not have effective means and do not currently hedge against changes in our raw material prices . consequently , if the costs of our raw materials increase further and we are unable to offset these increases by raising the prices of our products , our profit margins and financial condition could be adversely affected . 26 uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 21.1 % and 24.4 % of our working capital requirements in 2013 and 2012 , respectively , from the proceeds of short-term loans from chinese banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2013 and 2012 were approximately $ 32.8 million and $ 34.4 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . in addition , we completed two private placement financings in september 2010 and october 2009 with net proceeds of $ 9.0 million and $ 10.9 million , respectively , the proceeds of which were primarily used as working capital . we also secured a $ 15 million loan from deutsche investitions- und entwicklungsgesellshaft ( deg ) in may 2010 , which we have fully drawn down in 2011. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . we anticipate that our existing capital resources , cash flows from operations and current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2014. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2013 we gradually shortened credit terms for many of our international and domestic customers from between 30 and 180 days to between 30 and 60 days . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . recent developments and events on march 13 , 2014 , we acquired 12,750 shares , or 51 % share capital , of athena from two existing shareholders of athena for an aggregate purchase price of 1,995,000 ( or approximately us $ 2,702,650 ) of which 500,000 ( or approximately us $ 677,350 ) ( deferred payment ) remains due and payable to intiraimi on february 7 , 2015 under the intiraimi purchase agreement if certain conditions are met . under the terms of the intiraimi purchase agreement , we agreed to pledge 12,750 shares , or 51 % share capital , of athena to intiraimi to guarantee the deferred payment . story_separator_special_tag b. cross-reference to other disclosures currently required under u.s. gaap for other reclassification items ( that are not required under u.s. gaap ) to be reclassified directly to net income in their entirety in the same reporting period . this would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account ( e.g . , inventory for pension-related amounts ) instead of directly to income or expense . the amendments are effective for reporting periods beginning after december 15 , 2012 , for public companies . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in february 2013 , the fasb issued asu no . 2013-03 , clarifying the scope and applicability of a particular disclosure to nonpublic entities ( asu 2013-03 ) . the amendment clarifies that the requirement to disclose the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety ( as level 1 , level 2 , or level 3 ) does not apply to private companies and nonpublic not-for-profits for items that are not measured at fair value in the statement of financial position , but for which fair value is disclosed . the amendments are effective upon issuance . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . 34 in march 2013 , the fasb issued asu no . 2013-04 , obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date ( asu 2013-04 ) . the update provides guidance for the recognition , measurement , and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this asu is fixed at the reporting date , except for obligations addressed within existing guidance in us gaap . the guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors . the guidance in this asu also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-05 , parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity ( asu 2013-05 ) . the asu clarifies that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business ( other than a sale of in substance real estate or conveyance of oil and gas mineral rights ) within a foreign entity , the parent is required to apply the guidance in accounting standards codification 830-30 to release any related cumulative translation adjustment into net income . the asu provides that the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided . the amendments take effect prospectively for public companies for fiscal years beginning after december 15 , 2013 , and interim reporting periods within those years . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-07 , liquidation basis of accounting ( asu 2013-07 ) . the asu requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent . liquidation would be considered imminent when the likelihood is remote that the reporting entity would return from liquidation and either : ( a ) a plan for liquidation has been approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or the entity will return from liquidation , or ( b ) a plan for liquidation is imposed by other forces , and the likelihood is remote that the entity will return from liquidation . if a plan for liquidation was specified in an entity 's governing documents at its inception ( for example , limited-life entities ) , then liquidation would be imminent only if the approved plan for liquidation differs from the plan specified at the entity 's inception . the amendments take effect for all entities reporting under u.s. gaap , except investment companies that are regulated under the investment company act of 1940. the standard is effective for annual reporting periods beginning after december 31 , 2013 , and interim reporting periods therein . early adoption is permitted . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in july 2013 , the fasb issued asu no . 2013-11 , income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists

