accordingly , the historical financial statements presented and the discussion of financial condition and results of operations herein are those of inspiremd ltd. , retroactively restated for , and giving effect to , the number of shares received in the share exchange transactions , and do not include the historical financial results of our former business . the accumulated earnings of inspiremd ltd. were also carried forward after the share exchange transactions and earnings per share have been retroactively restated to give effect to the recapitalization for all periods presented . operations reported for periods prior to the share exchange transactions are those of inspiremd ltd. on june 1 , 2012 , our board of directors approved a change in our fiscal year-end from december 31 to june 30 , effective june 30 , 2012. we effectuated a one-for-four reverse stock split of our common stock on december 21 , 2012. recent events on april 16 , 2013 , we consummated an underwritten public offering pursuant to which we sold 12.5 million shares of common stock . the public offering price of our common stock in this offering was $ 2.00 per share , resulting in aggregate net proceeds to us of approximately $ 22.6 million , after the underwriters ' commissions and offering expenses . on april 11 , 2013 , following the pricing of the offering , our common stock commenced trading on the nyse mkt . critical accounting policies use of estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . actual results could differ from those estimates . as applicable to these consolidated financial statements , the most significant estimates and assumptions relate to inventory write-off , intangible assets , provisions for returns , legal contingencies , estimation of the fair value of share-based compensation and estimation of the fair value of warrants . functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . 45 in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash which are deposited in major financial institutions in the u.s. , germany and israel , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . story_separator_special_tag for the twelve months ended june 30 , 2013 , general and administrative expenses decreased 35.4 % , or approximately $ 4.9 million , to approximately $ 9.0 million from approximately $ 13.9 million during the same period in 2012. the decrease in general and administrative expenses resulted primarily from a decrease in share-based compensation of $ 6.1 million ( which predominantly pertained to director 's compensation paid in 2012 ) and a decrease of approximately $ 0.3 million in expenses related to consultants . this decrease was partially offset by an increase in salaries of approximately $ 0.6 million ( which predominately relates to the hiring of our new chief executive officer ) , an increase of approximately $ 0.5 million in legal expenses largely associated with our previous financing efforts , an increase of approximately $ 0.1 million in bad debt expense , an increase of approximately $ 0.1 million in audit fees , and an increase of approximately $ 0.2 million in miscellaneous expenses . general and administrative expenses as a percentage of revenue decreased to 184.1 % in the twelve months ended june 30 , 2013 from 259.5 % in the same period in 2012 . 48 financial expenses . for the twelve months ended june 30 , 2013 , financial expenses increased to approximately $ 14.1 million from approximately $ 38,000 during the same period in 2012. the increase in financial expenses resulted primarily from approximately $ 9.9 million in non-recurring , non-cash effects of the debt inducement related to the adjustment of the conversion ratio of our convertible debentures upon their retirement in april 2013 , $ 4.3 million of amortization expense pertaining to our convertible debentures and their related issuance costs ( of which approximately $ 3.6 million represented the non-recurring , non-cash amortization of the discount of the convertible debentures and their related issuance costs ) . in addition to these non-recurring , non-cash expenses , we also incurred approximately $ 1.5 million of expense pertaining to our obligation to issue shares of common stock without new consideration to the investors in our march 2011 private placement due to certain anti-dilution rights held by such stockholders . these expenses were partially offset by approximately $ 1.4 million of financial income pertaining to the revaluation of certain of our warrants due to our stock price decreasing to $ 2.21 on june 30 , 2013 , from $ 4.24 on june 30 , 2012 and approximately $ 0.1 million for the favorable impact of exchange rate differences for the twelve months ended june 30 , 2013. financial expense as a percentage of revenue increased from 0.7 % in the twelve months ended june 30 , 2012 , to 290.9 % in the same period in 2013. if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , financial expenses for the twelve months ended june 30 , 2013 would have totaled approximately $ 0.7 million , an increase of approximately $ 0.7 million from the same period in 2012. tax expenses . for the twelve months ended june 30 , 2013 , tax expenses decreased approximately $ 6,000 to approximately $ 8,000 for the twelve months ended june 30 , 2013 , from approximately $ 14,000 during the same period in 2012. net loss . our net loss increased by approximately $ 11.7 million , or 66.3 % , to approximately $ 29.3 million for the twelve months ended june 30 , 2013 from approximately $ 17.6 million during the same period in 2012. the increase in net loss resulted primarily from an increase of approximately $ 14.2 million in financial expenses , of which , approximately $ 13.5 million were non-recurring , non-cash ( see above for explanation ) , partially offset by a decrease of approximately $ 2.4 million in operating expenses ( see above for explanation ) and an increase of approximately $ 0.1 million in gross profit ( see above for explanation ) . if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , our net loss would be approximately $ 15.8 million for the twelve months ended june 30 , 2013 , as compared to a net loss of approximately $ 17.6 million for the same period in 2012 , an improvement of approximately $ 1.8 million , or 10 % . story_separator_special_tag · amended the securities purchase agreement pursuant to which the convertible debentures were originally issued to prohibit us from issuing securities containing anti-dilution protective provisions ; and 50 · amended the warrants issued in connection with the convertible debentures to ( i ) eliminate the automatic incorporation of the terms of any securities that are superior to those of such warrants , except with respect to exercise price and warrant coverage and ( ii ) provide that upon a fundamental transaction , the holders of such warrants will have the right to cause us to repurchase the unexercised portion of such warrants at their black-scholes value on the date of such fundamental transaction , payable in shares of common stock , rather than in cash as was previously provided . off balance sheet arrangements we have no off-balance sheet transactions , arrangements , obligations ( including contingent obligations ) , or other relationships with unconsolidated entities or other persons that have , or may have , a material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in july 2012 , the financial accounting standards board issued accounting standard update 2012-02 , “ intangibles- goodwill and other ( topic 350 ) : testing indefinite intangibles assets for impairment , ” which amended the guidance in asc 350-30 on testing indefinite-lived intangible assets , other than goodwill , for impairment allowing an entity to perform a qualitative impairment assessment . if the entity determines that

liquidity and capital resources twelve months ended june 30 , 2013 compared to twelve months ended june 30 , 2012 due to the underwritten public offering of our common stock in april 2013 , pursuant to which we received net proceeds of approximately $ 22.6 million , and the exchange and amendment agreement pursuant to which , as described below , we fully satisfied our obligations under our senior secured convertible debentures due april 15 , 2014 in the prior principal amount of $ 11.7 million , we believe that we have sufficient cash to continue our operations into 2015. however , depending on the operating results in 2014 , we may need to raise additional funds in 2015 to continue financing our operations . general . at june 30 , 2013 , we had cash and cash equivalents of approximately $ 14.8 million , as compared to $ 10.3 million as of june 30 , 2012. we have historically met our cash needs through a combination of issuing new shares , borrowing activities and sales . our cash requirements are generally for clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . 49 cash used in our operating activities was approximately $ 10.3 million for the twelve months ended june 30 , 2013 and $ 8.6 million for the same period in 2012. the principal reasons for the usage of cash in our operating activities for the twelve months ended june 30 , 2013 include a net loss of approximately $ 29.3 million , offset by approximately $ 13.5 million in non-cash financial expenses , approximately $ 3.8 million in non-cash share-based compensation that was largely paid to our directors , approximately $ 0.9 million in a non-cash royalties buyout related to the restructuring of our royalty agreement for the mguard prime version of our mguard coronary stent , as discussed above , a decrease in working capital of approximately $ 0.4 million , approximately $ 0.2 million in depreciation and amortization expenses and approximately $ 0.2 million of miscellaneous 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.
     ```liquidity and capital resources twelve months ended june 30 , 2013 compared to twelve months ended june 30 , 2012 due to the underwritten public offering of our common stock in april 2013 , pursuant to which we received net proceeds of approximately $ 22.6 million , and the exchange and amendment agreement pursuant to which , as described below , we fully satisfied our obligations under our senior secured convertible debentures due april 15 , 2014 in the prior principal amount of $ 11.7 million , we believe that we have sufficient cash to continue our operations into 2015. however , depending on the operating results in 2014 , we may need to raise additional funds in 2015 to continue financing our operations . general . at june 30 , 2013 , we had cash and cash equivalents of approximately $ 14.8 million , as compared to $ 10.3 million as of june 30 , 2012. we have historically met our cash needs through a combination of issuing new shares , borrowing activities and sales . our cash requirements are generally for clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . 49 cash used in our operating activities was approximately $ 10.3 million for the twelve months ended june 30 , 2013 and $ 8.6 million for the same period in 2012. the principal reasons for the usage of cash in our operating activities for the twelve months ended june 30 , 2013 include a net loss of approximately $ 29.3 million , offset by approximately $ 13.5 million in non-cash financial expenses , approximately $ 3.8 million in non-cash share-based compensation that was largely paid to our directors , approximately $ 0.9 million in a non-cash royalties buyout related to the restructuring of our royalty agreement for the mguard prime version of our mguard coronary stent , as discussed above , a decrease in working capital of approximately $ 0.4 million , approximately $ 0.2 million in depreciation and amortization expenses and approximately $ 0.2 million of miscellaneous expenditures .
```    
 Suspicious Activity Report : accordingly , the historical financial statements presented and the discussion of financial condition and results of operations herein are those of inspiremd ltd. , retroactively restated for , and giving effect to , the number of shares received in the share exchange transactions , and do not include the historical financial results of our former business . the accumulated earnings of inspiremd ltd. were also carried forward after the share exchange transactions and earnings per share have been retroactively restated to give effect to the recapitalization for all periods presented . operations reported for periods prior to the share exchange transactions are those of inspiremd ltd. on june 1 , 2012 , our board of directors approved a change in our fiscal year-end from december 31 to june 30 , effective june 30 , 2012. we effectuated a one-for-four reverse stock split of our common stock on december 21 , 2012. recent events on april 16 , 2013 , we consummated an underwritten public offering pursuant to which we sold 12.5 million shares of common stock . the public offering price of our common stock in this offering was $ 2.00 per share , resulting in aggregate net proceeds to us of approximately $ 22.6 million , after the underwriters ' commissions and offering expenses . on april 11 , 2013 , following the pricing of the offering , our common stock commenced trading on the nyse mkt . critical accounting policies use of estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . actual results could differ from those estimates . as applicable to these consolidated financial statements , the most significant estimates and assumptions relate to inventory write-off , intangible assets , provisions for returns , legal contingencies , estimation of the fair value of share-based compensation and estimation of the fair value of warrants . functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . 45 in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash which are deposited in major financial institutions in the u.s. , germany and israel , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . story_separator_special_tag for the twelve months ended june 30 , 2013 , general and administrative expenses decreased 35.4 % , or approximately $ 4.9 million , to approximately $ 9.0 million from approximately $ 13.9 million during the same period in 2012. the decrease in general and administrative expenses resulted primarily from a decrease in share-based compensation of $ 6.1 million ( which predominantly pertained to director 's compensation paid in 2012 ) and a decrease of approximately $ 0.3 million in expenses related to consultants . this decrease was partially offset by an increase in salaries of approximately $ 0.6 million ( which predominately relates to the hiring of our new chief executive officer ) , an increase of approximately $ 0.5 million in legal expenses largely associated with our previous financing efforts , an increase of approximately $ 0.1 million in bad debt expense , an increase of approximately $ 0.1 million in audit fees , and an increase of approximately $ 0.2 million in miscellaneous expenses . general and administrative expenses as a percentage of revenue decreased to 184.1 % in the twelve months ended june 30 , 2013 from 259.5 % in the same period in 2012 . 48 financial expenses . for the twelve months ended june 30 , 2013 , financial expenses increased to approximately $ 14.1 million from approximately $ 38,000 during the same period in 2012. the increase in financial expenses resulted primarily from approximately $ 9.9 million in non-recurring , non-cash effects of the debt inducement related to the adjustment of the conversion ratio of our convertible debentures upon their retirement in april 2013 , $ 4.3 million of amortization expense pertaining to our convertible debentures and their related issuance costs ( of which approximately $ 3.6 million represented the non-recurring , non-cash amortization of the discount of the convertible debentures and their related issuance costs ) . in addition to these non-recurring , non-cash expenses , we also incurred approximately $ 1.5 million of expense pertaining to our obligation to issue shares of common stock without new consideration to the investors in our march 2011 private placement due to certain anti-dilution rights held by such stockholders . these expenses were partially offset by approximately $ 1.4 million of financial income pertaining to the revaluation of certain of our warrants due to our stock price decreasing to $ 2.21 on june 30 , 2013 , from $ 4.24 on june 30 , 2012 and approximately $ 0.1 million for the favorable impact of exchange rate differences for the twelve months ended june 30 , 2013. financial expense as a percentage of revenue increased from 0.7 % in the twelve months ended june 30 , 2012 , to 290.9 % in the same period in 2013. if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , financial expenses for the twelve months ended june 30 , 2013 would have totaled approximately $ 0.7 million , an increase of approximately $ 0.7 million from the same period in 2012. tax expenses . for the twelve months ended june 30 , 2013 , tax expenses decreased approximately $ 6,000 to approximately $ 8,000 for the twelve months ended june 30 , 2013 , from approximately $ 14,000 during the same period in 2012. net loss . our net loss increased by approximately $ 11.7 million , or 66.3 % , to approximately $ 29.3 million for the twelve months ended june 30 , 2013 from approximately $ 17.6 million during the same period in 2012. the increase in net loss resulted primarily from an increase of approximately $ 14.2 million in financial expenses , of which , approximately $ 13.5 million were non-recurring , non-cash ( see above for explanation ) , partially offset by a decrease of approximately $ 2.4 million in operating expenses ( see above for explanation ) and an increase of approximately $ 0.1 million in gross profit ( see above for explanation ) . if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , our net loss would be approximately $ 15.8 million for the twelve months ended june 30 , 2013 , as compared to a net loss of approximately $ 17.6 million for the same period in 2012 , an improvement of approximately $ 1.8 million , or 10 % . story_separator_special_tag · amended the securities purchase agreement pursuant to which the convertible debentures were originally issued to prohibit us from issuing securities containing anti-dilution protective provisions ; and 50 · amended the warrants issued in connection with the convertible debentures to ( i ) eliminate the automatic incorporation of the terms of any securities that are superior to those of such warrants , except with respect to exercise price and warrant coverage and ( ii ) provide that upon a fundamental transaction , the holders of such warrants will have the right to cause us to repurchase the unexercised portion of such warrants at their black-scholes value on the date of such fundamental transaction , payable in shares of common stock , rather than in cash as was previously provided . off balance sheet arrangements we have no off-balance sheet transactions , arrangements , obligations ( including contingent obligations ) , or other relationships with unconsolidated entities or other persons that have , or may have , a material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in july 2012 , the financial accounting standards board issued accounting standard update 2012-02 , “ intangibles- goodwill and other ( topic 350 ) : testing indefinite intangibles assets for impairment , ” which amended the guidance in asc 350-30 on testing indefinite-lived intangible assets , other than goodwill , for impairment allowing an entity to perform a qualitative impairment assessment . if the entity determines that

