at december 31 , 2012 , we had $ 15.9 million in cash and cash equivalents and $ 171.9 million in indebtedness , including current maturities and discontinued operations , of which $ 23.0 million is current debt ( including the company 's outstanding convertible promissory notes with a principal amount in the aggregate of $ 11.7 million which mature in october 2013 and approximately $ 3.7 million of mortgage notes included in liabilities of disposal group ) . our ability to achieve profitable operations is dependent on continued growth in revenue and controlling costs . we anticipate that scheduled debt service ( excluding outstanding convertible promissory notes but including principal , interest , collateral and capital improvement fund or other escrow deposits ) will total approximately $ 17.2 million and cash outlays for acquisition costs , maintenance capital expenditures , dividends on our series a preferred stock and income taxes will total approximately $ 4.7 million for the year ending december 31 , 2013. debt service requirements for the year ending december 31 , 2013 include approximately $ 1.9 million of bullet maturities that the company believes could be refinanced on a longer term basis . in recent periods , we have refinanced shorter term acquisition debt , including seller notes , with traditional longer term mortgage notes , some of which have been executed under government guaranteed lending programs . although , we anticipate the conversion to common stock of the company 's outstanding convertible promissory notes with a principal amount in the aggregate of $ 11.7 million which mature in october 2013 , we believe that our anticipated cash flow and committed funding sources would allow us to pay these notes in cash . these promissory notes are convertible into shares of common stock of the company at $ 3.73 per share . the closing price of the common stock exceeded $ 4.00 per share from january 1 , 2013 through july 5 , 2013 , except for the last three trading days in march 2013. as discussed further below , if we were required to pay these notes in cash , then the company may be required to restructure its outstanding indebtedness , implement further cost reduction initiatives , sell assets , or delay , modify , or abandon its expansion plans due to our limited liquidity in such an event . we estimate that cash flow from operations , including approximately $ 2.0 million cash outlay for costs with respect to the audit committee review and inquiry discussed in part ii , item 9a . `` controls and procedures , `` and other working capital changes will be approximately $ 17.8 million for the year ending december 31 , 2013. the company expanded its existing credit facility with gemino healthcare finance , llc ( `` gemino `` ) : ( i ) in may 2013 , to refinance and include one of the facilities the company acquired in december 2012 ; and ( ii ) in june 2013 , to refinance and include two additional facilities the company also acquired in december 2012. we routinely have ongoing discussions with existing and potential new lenders to refinance current debt on a longer term basis . we have been successful in recent years in raising new equity capital and believe , based on recent discussions that these markets will continue to be available to us for raising capital in 2013. based on existing cash balances , anticipated cash flows for the year ending december 31 , 2013 , and new sources of capital , we believe there will be sufficient funds for our operations , scheduled debt service , and capital expenditures at least through the next 12 months . on a longer term basis , we have approximately $ 80.4 million of debt payments and maturities due between 2014 and 2016 , excluding convertible promissory notes which are convertible into shares of common stock . we believe our long-term liquidity needs will be satisfied by these same sources , as well as borrowings as required to refinance indebtedness . in order to satisfy these capital needs , we intend to : ( i ) improve our operating results by increasing facility occupancy , optimizing our payor mix by increasing the proportion of sub-acute patients within our skilled nursing facilities , continuing our cost optimization and efficiency strategies and acquiring additional long-term care facilities with existing operating cash flow ; ( ii ) expand our borrowing 38 arrangements with certain existing lenders ; ( iii ) refinance current debt where possible to obtain more favorable terms ; and ( iv ) raise capital through the issuance of debt or equity securities . we anticipate that these actions , if successful , will provide the opportunity for us to maintain liquidity on a short and long term basis , thereby permitting us to meet our operating and financing obligations for the next 12 months and provide for the continuance of our acquisition strategy . however , there is no guarantee that such actions will be successful or that anticipated operating results will be achieved . we currently have limited borrowing availability under our existing revolving credit facilities . if the company is unable to improve operating results , expand existing borrowing agreements , refinance current debt , or raise capital through the issuance of securities , or the convertible promissory notes due october 2013 are not converted into common stock and are required to be repaid by us in cash , then the company may be required to restructure its outstanding indebtedness , implement further cost reduction initiatives , sell assets , or delay , modify , or abandon its expansion plans . acquisitions we have embarked on a strategy to grow our business through acquisitions and leases of senior care facilities and businesses providing services to those facilities . story_separator_special_tag business combinations the company follows asc topic 805 , business combinations ( `` asc 805 `` ) , which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the 44 identifiable assets acquired , the liabilities assumed , any non-controlling interest in the acquiree as well as the goodwill acquired or gain recognized in a bargain purchase . the guidance also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination . during 2012 , we expensed approximately $ 2.0 million in acquisition costs related to the transactions discussed in note 19 of the consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data . `` asc 805 requires that we make certain valuations to determine the fair value of assets acquired and the liabilities assumed . such valuations require us to make significant estimates , judgments and assumptions , including projections of future events and operating performance . stock-based compensation we recognize compensation cost for all share-based payments granted after january 1 , 2006 based on various vesting criteria over the requisite service period . we calculate the recognized and unrecognized stock-based compensation using the black-scholes-merton option valuation method , which requires us to use certain key assumptions to develop the fair value estimates . these key assumptions include expected volatility , risk-free interest rate , expected dividends and expected term . during the years ended december 31 , 2012 and 2011 , we recorded share-based compensation charges for various employee and non-employee services totaling approximately $ 1.0 million and $ 1.0 million , respectively . stock-based compensation expense is a non-cash expense and such amounts are included as a component of general and administrative expenses . income taxes as required by asc topic 740 , income taxes ( `` asc 740 `` ) , we determine deferred tax assets and liabilities based upon differences between financial reporting and tax bases of assets and liabilities and measure them using the enacted tax laws that will be in effect when the differences are expected to reverse . at december 31 , 2012 we maintain a valuation allowance of approximately $ 8.0 million to reduce the deferred tax assets by the amount we believe is more likely than not to not be utilized through the turnaround of existing temporary differences , future earnings , or a combination thereof . in future periods , we will continue to assess the need for and adequacy of the remaining valuation allowance . we follow the relevant asc 740 guidance when accounting for uncertainty in income taxes . the guidance provides information and procedures for financial statement recognition and measurement of tax positions taken , or expected to be taken , in tax returns . results of operations same and recently acquired facility patient care revenue analysis : total patient care revenues year ended december 31 , amounts in ( 000 's ) 2012 2011 same facilities $ 112,811 $ 111,682 recently acquired facilities 86,691 24,910 total $ 199,502 $ 136,592 45 continuing operations : replace_table_token_11_th patient care revenues total patient care revenues increased by $ 62.9 million , or 46.1 % from 2011 to 2012 , primarily as a result of the facilities acquired in 2012 , full year of operations in 2012 for facilities acquired in 2011 and the optimization of resident mix . management revenues management revenues ( net of eliminations ) increased by $ 0.5 million , or 33.1 % . in 2011 the management fee charged to the oklahoma owners was eliminated in the process of consolidating the oklahoma owners as a consolidated variable interest entity . upon deconsolidation of the oklahoma owners in 2012 , the management fee is recognized as a third party transaction . cost of services cost of services increased by $ 56.4 million , or 50.4 % , in 2012 as compared to 2011 primarily from the acquisitions in both years . cost of services as a percentage of patient care revenue increased slightly from 81.9 % in 2011 to 84.3 % in 2012. the increase in cost of services as a percentage of patient care revenue is primarily due to the effect in 2012 from the operations of certain 2012 acquired facilities prior to the company achieving completion of its cost reduction optimization strategy for acquired facilities . general and administrative general and administrative costs increased by $ 3.7 million to $ 17.0 million in 2012 from $ 13.3 million in 2011. we increased our corporate overhead structure throughout 2012 in response to the growth needs and opened an accounting service center located in roswell , georgia during the second quarter of 2011. as a percentage of revenue , general and administrative costs declined to 8.4 % in 2012 compared to 9.5 % in 2011 reflecting increased leverage of our fixed costs over the scale of expanding operations from acquisitions . 46 facility rent expense facility rent expenses increased by $ 0.5 million , or 6.9 % from 2011 to 2012. the increase in facility rent expense is due to annual increases in lease rates and the addition of one new leased facility in the fourth quarter of 2011. depreciation and amortization depreciation and amortization increased $ 3.4 million in 2012 compared to 2011. the depreciation increase is directly related to acquisition activity that was not included in the 2011 results and the impairment charges of $ 0.4 million to write down the carrying value of an office building located in rogers , arkansas and $ 0.1 million to reduce the net book value of the company 's former springfield , ohio office to net realizable value . in addition , the acquisitions resulted in intangibles that are being amortized during the period . salary retirement and continuation costs in 2011 , we incurred certain retirement and salary continuation costs of approximately $ 1.5 million related to separation agreements with prior officers of the

convertible debt subordinated convertible notes issued in 2010 on october 26 , 2010 , the company entered into a securities purchase agreement with certain accredited investors to sell and issue to the purchasers an aggregate of $ 11.1 million in principal amount of the company 's subordinated convertible notes , bearing 10 % interest per annum payable quarterly in cash in arrears beginning december 31 , 2010. on october 29 , 2010 , the company entered into an amendment and joinder agreement to effectuate the sale of an additional $ 0.8 million in principal amount of notes . the initial sale of $ 11.1 million in principal amount of notes occurred on october 26 , 2010 , and the subsequent sale of $ 0.8 million in principal amount of notes occurred on october 29 , 2010. the notes mature in october 2013. the notes are convertible at the option of the holder into shares of common stock of the company at a current conversion price of $ 3.73 ( adjusted for a 5 % stock dividends paid on october 14 , 2011 and october 22 , 2012 , as further discussed in note 10 to our consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data . `` , and subject to adjustment for stock dividends , stock splits , combination of shares , recapitalization and other similar events ) that is subject to future reductions if the company issues equity instruments at a lower price . since there is no minimum conversion price resulting in an indeterminate number of shares to be issued in the future , the company determined an embedded derivative existed that was required to be bifurcated from the notes and accounted for separately as a derivative liability recorded at fair value ( see note 15 to our consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data. '' ) . at the time of initial measurement , the derivative had an estimated fair value of $ 2.6 million resulting in a discount on the notes . the discount is being amortized over the term of the notes .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```convertible debt subordinated convertible notes issued in 2010 on october 26 , 2010 , the company entered into a securities purchase agreement with certain accredited investors to sell and issue to the purchasers an aggregate of $ 11.1 million in principal amount of the company 's subordinated convertible notes , bearing 10 % interest per annum payable quarterly in cash in arrears beginning december 31 , 2010. on october 29 , 2010 , the company entered into an amendment and joinder agreement to effectuate the sale of an additional $ 0.8 million in principal amount of notes . the initial sale of $ 11.1 million in principal amount of notes occurred on october 26 , 2010 , and the subsequent sale of $ 0.8 million in principal amount of notes occurred on october 29 , 2010. the notes mature in october 2013. the notes are convertible at the option of the holder into shares of common stock of the company at a current conversion price of $ 3.73 ( adjusted for a 5 % stock dividends paid on october 14 , 2011 and october 22 , 2012 , as further discussed in note 10 to our consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data . `` , and subject to adjustment for stock dividends , stock splits , combination of shares , recapitalization and other similar events ) that is subject to future reductions if the company issues equity instruments at a lower price . since there is no minimum conversion price resulting in an indeterminate number of shares to be issued in the future , the company determined an embedded derivative existed that was required to be bifurcated from the notes and accounted for separately as a derivative liability recorded at fair value ( see note 15 to our consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data. '' ) . at the time of initial measurement , the derivative had an estimated fair value of $ 2.6 million resulting in a discount on the notes . the discount is being amortized over the term of the notes .
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 Suspicious Activity Report : at december 31 , 2012 , we had $ 15.9 million in cash and cash equivalents and $ 171.9 million in indebtedness , including current maturities and discontinued operations , of which $ 23.0 million is current debt ( including the company 's outstanding convertible promissory notes with a principal amount in the aggregate of $ 11.7 million which mature in october 2013 and approximately $ 3.7 million of mortgage notes included in liabilities of disposal group ) . our ability to achieve profitable operations is dependent on continued growth in revenue and controlling costs . we anticipate that scheduled debt service ( excluding outstanding convertible promissory notes but including principal , interest , collateral and capital improvement fund or other escrow deposits ) will total approximately $ 17.2 million and cash outlays for acquisition costs , maintenance capital expenditures , dividends on our series a preferred stock and income taxes will total approximately $ 4.7 million for the year ending december 31 , 2013. debt service requirements for the year ending december 31 , 2013 include approximately $ 1.9 million of bullet maturities that the company believes could be refinanced on a longer term basis . in recent periods , we have refinanced shorter term acquisition debt , including seller notes , with traditional longer term mortgage notes , some of which have been executed under government guaranteed lending programs . although , we anticipate the conversion to common stock of the company 's outstanding convertible promissory notes with a principal amount in the aggregate of $ 11.7 million which mature in october 2013 , we believe that our anticipated cash flow and committed funding sources would allow us to pay these notes in cash . these promissory notes are convertible into shares of common stock of the company at $ 3.73 per share . the closing price of the common stock exceeded $ 4.00 per share from january 1 , 2013 through july 5 , 2013 , except for the last three trading days in march 2013. as discussed further below , if we were required to pay these notes in cash , then the company may be required to restructure its outstanding indebtedness , implement further cost reduction initiatives , sell assets , or delay , modify , or abandon its expansion plans due to our limited liquidity in such an event . we estimate that cash flow from operations , including approximately $ 2.0 million cash outlay for costs with respect to the audit committee review and inquiry discussed in part ii , item 9a . `` controls and procedures , `` and other working capital changes will be approximately $ 17.8 million for the year ending december 31 , 2013. the company expanded its existing credit facility with gemino healthcare finance , llc ( `` gemino `` ) : ( i ) in may 2013 , to refinance and include one of the facilities the company acquired in december 2012 ; and ( ii ) in june 2013 , to refinance and include two additional facilities the company also acquired in december 2012. we routinely have ongoing discussions with existing and potential new lenders to refinance current debt on a longer term basis . we have been successful in recent years in raising new equity capital and believe , based on recent discussions that these markets will continue to be available to us for raising capital in 2013. based on existing cash balances , anticipated cash flows for the year ending december 31 , 2013 , and new sources of capital , we believe there will be sufficient funds for our operations , scheduled debt service , and capital expenditures at least through the next 12 months . on a longer term basis , we have approximately $ 80.4 million of debt payments and maturities due between 2014 and 2016 , excluding convertible promissory notes which are convertible into shares of common stock . we believe our long-term liquidity needs will be satisfied by these same sources , as well as borrowings as required to refinance indebtedness . in order to satisfy these capital needs , we intend to : ( i ) improve our operating results by increasing facility occupancy , optimizing our payor mix by increasing the proportion of sub-acute patients within our skilled nursing facilities , continuing our cost optimization and efficiency strategies and acquiring additional long-term care facilities with existing operating cash flow ; ( ii ) expand our borrowing 38 arrangements with certain existing lenders ; ( iii ) refinance current debt where possible to obtain more favorable terms ; and ( iv ) raise capital through the issuance of debt or equity securities . we anticipate that these actions , if successful , will provide the opportunity for us to maintain liquidity on a short and long term basis , thereby permitting us to meet our operating and financing obligations for the next 12 months and provide for the continuance of our acquisition strategy . however , there is no guarantee that such actions will be successful or that anticipated operating results will be achieved . we currently have limited borrowing availability under our existing revolving credit facilities . if the company is unable to improve operating results , expand existing borrowing agreements , refinance current debt , or raise capital through the issuance of securities , or the convertible promissory notes due october 2013 are not converted into common stock and are required to be repaid by us in cash , then the company may be required to restructure its outstanding indebtedness , implement further cost reduction initiatives , sell assets , or delay , modify , or abandon its expansion plans . acquisitions we have embarked on a strategy to grow our business through acquisitions and leases of senior care facilities and businesses providing services to those facilities . story_separator_special_tag business combinations the company follows asc topic 805 , business combinations ( `` asc 805 `` ) , which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the 44 identifiable assets acquired , the liabilities assumed , any non-controlling interest in the acquiree as well as the goodwill acquired or gain recognized in a bargain purchase . the guidance also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination . during 2012 , we expensed approximately $ 2.0 million in acquisition costs related to the transactions discussed in note 19 of the consolidated financial statements included in part ii , item 8. , `` financial statements and supplementary data . `` asc 805 requires that we make certain valuations to determine the fair value of assets acquired and the liabilities assumed . such valuations require us to make significant estimates , judgments and assumptions , including projections of future events and operating performance . stock-based compensation we recognize compensation cost for all share-based payments granted after january 1 , 2006 based on various vesting criteria over the requisite service period . we calculate the recognized and unrecognized stock-based compensation using the black-scholes-merton option valuation method , which requires us to use certain key assumptions to develop the fair value estimates . these key assumptions include expected volatility , risk-free interest rate , expected dividends and expected term . during the years ended december 31 , 2012 and 2011 , we recorded share-based compensation charges for various employee and non-employee services totaling approximately $ 1.0 million and $ 1.0 million , respectively . stock-based compensation expense is a non-cash expense and such amounts are included as a component of general and administrative expenses . income taxes as required by asc topic 740 , income taxes ( `` asc 740 `` ) , we determine deferred tax assets and liabilities based upon differences between financial reporting and tax bases of assets and liabilities and measure them using the enacted tax laws that will be in effect when the differences are expected to reverse . at december 31 , 2012 we maintain a valuation allowance of approximately $ 8.0 million to reduce the deferred tax assets by the amount we believe is more likely than not to not be utilized through the turnaround of existing temporary differences , future earnings , or a combination thereof . in future periods , we will continue to assess the need for and adequacy of the remaining valuation allowance . we follow the relevant asc 740 guidance when accounting for uncertainty in income taxes . the guidance provides information and procedures for financial statement recognition and measurement of tax positions taken , or expected to be taken , in tax returns . results of operations same and recently acquired facility patient care revenue analysis : total patient care revenues year ended december 31 , amounts in ( 000 's ) 2012 2011 same facilities $ 112,811 $ 111,682 recently acquired facilities 86,691 24,910 total $ 199,502 $ 136,592 45 continuing operations : replace_table_token_11_th patient care revenues total patient care revenues increased by $ 62.9 million , or 46.1 % from 2011 to 2012 , primarily as a result of the facilities acquired in 2012 , full year of operations in 2012 for facilities acquired in 2011 and the optimization of resident mix . management revenues management revenues ( net of eliminations ) increased by $ 0.5 million , or 33.1 % . in 2011 the management fee charged to the oklahoma owners was eliminated in the process of consolidating the oklahoma owners as a consolidated variable interest entity . upon deconsolidation of the oklahoma owners in 2012 , the management fee is recognized as a third party transaction . cost of services cost of services increased by $ 56.4 million , or 50.4 % , in 2012 as compared to 2011 primarily from the acquisitions in both years . cost of services as a percentage of patient care revenue increased slightly from 81.9 % in 2011 to 84.3 % in 2012. the increase in cost of services as a percentage of patient care revenue is primarily due to the effect in 2012 from the operations of certain 2012 acquired facilities prior to the company achieving completion of its cost reduction optimization strategy for acquired facilities . general and administrative general and administrative costs increased by $ 3.7 million to $ 17.0 million in 2012 from $ 13.3 million in 2011. we increased our corporate overhead structure throughout 2012 in response to the growth needs and opened an accounting service center located in roswell , georgia during the second quarter of 2011. as a percentage of revenue , general and administrative costs declined to 8.4 % in 2012 compared to 9.5 % in 2011 reflecting increased leverage of our fixed costs over the scale of expanding operations from acquisitions . 46 facility rent expense facility rent expenses increased by $ 0.5 million , or 6.9 % from 2011 to 2012. the increase in facility rent expense is due to annual increases in lease rates and the addition of one new leased facility in the fourth quarter of 2011. depreciation and amortization depreciation and amortization increased $ 3.4 million in 2012 compared to 2011. the depreciation increase is directly related to acquisition activity that was not included in the 2011 results and the impairment charges of $ 0.4 million to write down the carrying value of an office building located in rogers , arkansas and $ 0.1 million to reduce the net book value of the company 's former springfield , ohio office to net realizable value . in addition , the acquisitions resulted in intangibles that are being amortized during the period . salary retirement and continuation costs in 2011 , we incurred certain retirement and salary continuation costs of approximately $ 1.5 million related to separation agreements with prior officers of the

