there are a variety of risks associated with our ability to achieve its strategic objectives , including the ability to acquire and profitably manage additional businesses and the intense competition in the industry for customers and for acquisition candidates . performance metrics our principal source of income is derived from freight forwarding services . as a freight forwarder , we arrange for the shipment of our customers ' freight from point of origin to point of destination . generally , we quote our customers a turnkey cost for the movement of their freight . our price quote will often depend upon the customer 's time-definite needs ( first day through fifth day delivery ) , special handling needs ( heavy equipment , delicate items , environmentally sensitive goods , electronic components , etc . ) , and the means of transport ( truck , air , ocean or rail ) . in turn , we assume the responsibility for arranging and paying for the underlying means of transportation . 18 our transportation revenue represents the total dollar value of services we sell to our customers . our cost of transportation includes direct costs of transportation , including motor carrier , air , ocean and rail services . we act principally as the service provider to add value in the execution and procurement of these services to our customers . our net transportation revenue ( gross transportation revenue less the direct cost of transportation ) is the primary indicator of our ability to source , add value and resell services provided by third parties , and is considered by management to be a key performance measure . in addition , management believes measuring its operating costs as a function of net transportation revenue provides a useful metric , as our ability to control costs as a function of net transportation revenue directly impacts operating earnings . our operating results will be affected as acquisitions occur . since all acquisitions are made using the purchase method of accounting for business combinations , our financial statements will only include the results of operations and cash flows of acquired companies for periods subsequent to the date of acquisition . our gaap-based net income will be affected by non-cash charges relating to the amortization of customer related intangible assets and other intangible assets arising from completed acquisitions . under applicable accounting standards , purchasers are required to allocate the total consideration in a business combination to the identified assets acquired and liabilities assumed based on their fair values at the time of acquisition . the excess of the consideration paid over the fair value of the identifiable net assets acquired is to be allocated to goodwill , which is tested at least annually for impairment . applicable accounting standards require that we separately account for and value certain identifiable intangible assets based on the unique facts and circumstances of each acquisition . as a result of our acquisition strategy , our net income will include material non-cash charges relating to the amortization of customer related intangible assets and other intangible assets acquired in our acquisitions . although these charges may increase as we complete more acquisitions , we believe we will actually be growing the value of our intangible assets ( e.g . , customer relationships ) . thus , we believe that earnings before interest , taxes , depreciation and amortization , or ebitda , is a useful financial measure for investors because it eliminates the effect of these non-cash costs and provides an important metric for our business . further , the financial covenants of our credit facility adjust ebitda to exclude costs related to share based compensation expense , extraordinary items and other non-cash charges . our compliance with the financial covenants of our credit facility is particularly important given the materiality of the credit facility to our day-to-day operations and overall acquisition strategy . our debt capacity , subject to the requisite collateral at an advance rate of 80 % of eligible domestic accounts receivable and up to 60 % of eligible foreign receivables , is limited to a multiple of 4.00 times our consolidated ebitda ( as adjusted ) as measured on a rolling four quarter basis . if we fail to comply with the covenants in our credit facility and are unable to secure a waiver or other relief , our financial condition would be materiality weakened and our ability to fund day-to-day operations would be materially and adversely affected . accordingly , we intend to employ ebitda and adjusted ebitda as management tools to measure our historical financial performance and as a benchmark for future financial flexibility . our operating results are also subject to seasonal trends when measured on a quarterly basis . the impact of seasonality on our business will depend on numerous factors , including the markets in which we operate , holiday seasons , consumer demand and economic conditions . since our revenue is largely derived from customers whose shipments are dependent upon consumer demand and just-in-time production schedules , the timing of our revenue is often beyond our control . factors such as shifting demand for retail goods and or manufacturing production delays could unexpectedly affect the timing of our revenue . as we increase the scale of our operations , seasonal trends in one area of our business may be offset to an extent by opposite trends in another area . we can not accurately predict the timing of these factors , nor can we accurately estimate the impact of any particular factor , and thus we can give no assurance any historical seasonal patterns will continue in future periods . 19 critical accounting policies accounting policies , methods and estimates are an integral part of the consolidated financial statements prepared by management and are based upon management 's current judgments . story_separator_special_tag million for the acquisition of dba ( less cash acquired of $ 2.0 million ) , an additional $ 0.4 million for furniture and equipment , and $ 1.6 million paid to the former shareholders of subsidiaries . use of cash in 2010 consisted of $ 1.4 million paid to former shareholders of subsidiaries and $ 0.5 million for furniture and equipment purchases . 25 net cash provided by financing activities for the year ended june 30 , 2011 was $ 2.2 million compared to net cash used for financing activities of $ 1.1 million for year ended june 30 , 2010. cash from financing activities in 2011 consisted of proceeds from our credit facility of $ 2.6 million and proceeds from sales of company stock to dba stations of $ 0.2 million , which amounts were offset by $ 0.5 million used to purchase shares of our common stock and $ 0.1 million in non-controlling interest distributions . use of cash for 2010 consisted of $ 0.8 million used to purchase shares of our common stock , $ 0.2 million in payments to reduce our credit facility , and $ 0.1 million in non-controlling interest distributions . recent acquisitions below are descriptions of recent material acquisitions including a breakdown of consideration paid at closing and future potential earn-out payments . we define `` material acquisitions `` as those with aggregate potential consideration of $ 1.0 million or more . effective september 1 , 2008 , we acquired all of the outstanding stock of adcom express , inc. the transaction was valued at up to $ 11.05 million , consisting of : ( i ) $ 4.75 million in cash paid at the closing ; ( ii ) $ 0.25 million in cash payable shortly after the closing , subject to adjustment , based upon the working capital of adcom as of august 31 , 2008 ; ( iii ) up to $ 2.8 million in four `` tier-1 earn-out payments `` of up to $ 0.7 million each , covering the four year earn-out period through 2012 , based upon adcom achieving certain levels of `` gross profit contribution `` ( as defined in the agreement ) , payable 50 % in cash and 50 % in shares of our common stock ( valued at delivery date ) ; ( iv ) a `` tier-2 earn-out payment `` of up to a maximum of $ 2.0 million , equal to 20 % of the amount by which the adcom cumulative gross profit contribution exceeds $ 16.56 million during the four year earn-out period ; and ( v ) an `` integration payment `` of $ 1.25 million payable on the earlier of the date certain integration targets are achieved or 18 months after the closing , payable 50 % in cash and 50 % in our shares of our common stock ( valued at delivery date ) . through june 30 , 2011 , the former adcom shareholders earned a total of $ 1,454,141 in base earn-out payments . of this amount , $ 578,536 was paid in cash and $ 258,510 was settled in stock through the year ended june 30 , 2011. the remaining amount of $ 617,095 is included in the amount due to former shareholders of subsidiaries as of june 30 , 2011. assuming minimum targeted earnings levels are achieved , the following table summarizes our contingent base earn-out payments related to the acquisition of adcom , for the fiscal years indicated based on results of the prior year ( in thousands ) : estimated payment anticipated for fiscal year ( 1 ) : 2013 earn-out period : 7/1/2011 – 6/30/2012 earn-out payments : story_separator_special_tag oman `` > our estimate of future revenues and profits is based on the assumption that the cumulative historical financial results of operations of the company for the most recent 12 months ended june 30 , 2011 are indicative of the future financial performance and excludes the impact of further acquisitions , new agent stations or further improvement in the economic climate . a reconciliation of estimated annual adjusted ebitda for the fiscal year ended june 30 , 2011 amounts to net income , the most directly comparable gaap measure , is as follows : ( amounts in 000 's ) replace_table_token_7_th 28 off balance sheet arrangements as of june 30 , 2011 , we did not have any relationships with unconsolidated entities or financial partners , such as entities often referred to as structured finance or special purpose entities , which had been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . as such , we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in such relationships . recent accounting pronouncements in january 2010 , the financial accounting standards board ( `` fasb `` ) issued accounting standards update ( `` asu `` ) no . 2010-06 , improving disclosures about fair value measurements . the guidance in asu 2010-06 provides amendments to literature on fair value measurements and disclosures currently within the asc by clarifying certain existing disclosures and requiring new disclosures for the various classes of fair value measurements . asu 2010-06 is effective for interim and annual periods beginning after december 15 , 2009 , except for the disclosures about purchases , sales , issuances , and settlements in the roll forward of activity in level 3 fair value measurements , which are effective for fiscal years beginning after december 15 , 2010 , and for interim periods within those fiscal years . the adoption of this guidance is not expected to have a material impact on the company 's financial position or results of operations . in december 2010 , the fasb issued asu no . 2010-29 , business combinations ( topic 805 ) : disclosure of supplementary pro forma information for business combinations

cash $ 350 equity 350 total potential earn-out payments $ 700 total gross margin targets $ 4,320 ( 1 ) earn-out payments are paid october 1 following each fiscal year end in a combination of cash and company common stock . on april 6 , 2011 , we closed on an agreement and plan of merger ( the `` agreement '' ) pursuant to which we acquired all of the outstanding stock of dba distribution services , inc. ( `` dba '' ) , a privately-held new jersey corporation . for financial accounting purposes , the transaction was deemed to be effective as of april 1 , 2011. dba operates under the trade name `` distribution by air '' and provides a full range of domestic and international transportation and logistics services across north america . the shares of dba were acquired by us via a merger transaction pursuant to which dba was merged into a newly-formed subsidiary of the company . the $ 12.0 million transaction consisted of cash of $ 5.4 million paid at closing , the delivery of $ 4.8 million in seller notes payable over the next three years , and $ 1.8 million in connection with the achievement of certain integration milestones to be paid within 180 days after the milestones have been achieved ; however , no later than the 18th month anniversary of the closing . in may 2011 , we elected to satisfy $ 2.4 million of the seller notes through the issuance of shares of the company 's common stock . the seller notes may be subject to acceleration upon occurrence of a “ corporate transaction ” ( as defined in the form of note ) , which includes a future sale of dba or radiant , or certain changes in corporate control . the cash component of the transaction was financed through a combination of our existing funds and funds available under an existing revolving credit facility provided by bank of america , n.a . 26 founded in 1981 , dba services a diversified account base including manufacturers , distributors and retailers through a combination of company-owned logistics centers located in somerset , new jersey and los angeles , california and twenty-three agency offices across north america .


 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.
     ```cash $ 350 equity 350 total potential earn-out payments $ 700 total gross margin targets $ 4,320 ( 1 ) earn-out payments are paid october 1 following each fiscal year end in a combination of cash and company common stock . on april 6 , 2011 , we closed on an agreement and plan of merger ( the `` agreement '' ) pursuant to which we acquired all of the outstanding stock of dba distribution services , inc. ( `` dba '' ) , a privately-held new jersey corporation . for financial accounting purposes , the transaction was deemed to be effective as of april 1 , 2011. dba operates under the trade name `` distribution by air '' and provides a full range of domestic and international transportation and logistics services across north america . the shares of dba were acquired by us via a merger transaction pursuant to which dba was merged into a newly-formed subsidiary of the company . the $ 12.0 million transaction consisted of cash of $ 5.4 million paid at closing , the delivery of $ 4.8 million in seller notes payable over the next three years , and $ 1.8 million in connection with the achievement of certain integration milestones to be paid within 180 days after the milestones have been achieved ; however , no later than the 18th month anniversary of the closing . in may 2011 , we elected to satisfy $ 2.4 million of the seller notes through the issuance of shares of the company 's common stock . the seller notes may be subject to acceleration upon occurrence of a “ corporate transaction ” ( as defined in the form of note ) , which includes a future sale of dba or radiant , or certain changes in corporate control . the cash component of the transaction was financed through a combination of our existing funds and funds available under an existing revolving credit facility provided by bank of america , n.a . 26 founded in 1981 , dba services a diversified account base including manufacturers , distributors and retailers through a combination of company-owned logistics centers located in somerset , new jersey and los angeles , california and twenty-three agency offices across north america .
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 Suspicious Activity Report : there are a variety of risks associated with our ability to achieve its strategic objectives , including the ability to acquire and profitably manage additional businesses and the intense competition in the industry for customers and for acquisition candidates . performance metrics our principal source of income is derived from freight forwarding services . as a freight forwarder , we arrange for the shipment of our customers ' freight from point of origin to point of destination . generally , we quote our customers a turnkey cost for the movement of their freight . our price quote will often depend upon the customer 's time-definite needs ( first day through fifth day delivery ) , special handling needs ( heavy equipment , delicate items , environmentally sensitive goods , electronic components , etc . ) , and the means of transport ( truck , air , ocean or rail ) . in turn , we assume the responsibility for arranging and paying for the underlying means of transportation . 18 our transportation revenue represents the total dollar value of services we sell to our customers . our cost of transportation includes direct costs of transportation , including motor carrier , air , ocean and rail services . we act principally as the service provider to add value in the execution and procurement of these services to our customers . our net transportation revenue ( gross transportation revenue less the direct cost of transportation ) is the primary indicator of our ability to source , add value and resell services provided by third parties , and is considered by management to be a key performance measure . in addition , management believes measuring its operating costs as a function of net transportation revenue provides a useful metric , as our ability to control costs as a function of net transportation revenue directly impacts operating earnings . our operating results will be affected as acquisitions occur . since all acquisitions are made using the purchase method of accounting for business combinations , our financial statements will only include the results of operations and cash flows of acquired companies for periods subsequent to the date of acquisition . our gaap-based net income will be affected by non-cash charges relating to the amortization of customer related intangible assets and other intangible assets arising from completed acquisitions . under applicable accounting standards , purchasers are required to allocate the total consideration in a business combination to the identified assets acquired and liabilities assumed based on their fair values at the time of acquisition . the excess of the consideration paid over the fair value of the identifiable net assets acquired is to be allocated to goodwill , which is tested at least annually for impairment . applicable accounting standards require that we separately account for and value certain identifiable intangible assets based on the unique facts and circumstances of each acquisition . as a result of our acquisition strategy , our net income will include material non-cash charges relating to the amortization of customer related intangible assets and other intangible assets acquired in our acquisitions . although these charges may increase as we complete more acquisitions , we believe we will actually be growing the value of our intangible assets ( e.g . , customer relationships ) . thus , we believe that earnings before interest , taxes , depreciation and amortization , or ebitda , is a useful financial measure for investors because it eliminates the effect of these non-cash costs and provides an important metric for our business . further , the financial covenants of our credit facility adjust ebitda to exclude costs related to share based compensation expense , extraordinary items and other non-cash charges . our compliance with the financial covenants of our credit facility is particularly important given the materiality of the credit facility to our day-to-day operations and overall acquisition strategy . our debt capacity , subject to the requisite collateral at an advance rate of 80 % of eligible domestic accounts receivable and up to 60 % of eligible foreign receivables , is limited to a multiple of 4.00 times our consolidated ebitda ( as adjusted ) as measured on a rolling four quarter basis . if we fail to comply with the covenants in our credit facility and are unable to secure a waiver or other relief , our financial condition would be materiality weakened and our ability to fund day-to-day operations would be materially and adversely affected . accordingly , we intend to employ ebitda and adjusted ebitda as management tools to measure our historical financial performance and as a benchmark for future financial flexibility . our operating results are also subject to seasonal trends when measured on a quarterly basis . the impact of seasonality on our business will depend on numerous factors , including the markets in which we operate , holiday seasons , consumer demand and economic conditions . since our revenue is largely derived from customers whose shipments are dependent upon consumer demand and just-in-time production schedules , the timing of our revenue is often beyond our control . factors such as shifting demand for retail goods and or manufacturing production delays could unexpectedly affect the timing of our revenue . as we increase the scale of our operations , seasonal trends in one area of our business may be offset to an extent by opposite trends in another area . we can not accurately predict the timing of these factors , nor can we accurately estimate the impact of any particular factor , and thus we can give no assurance any historical seasonal patterns will continue in future periods . 19 critical accounting policies accounting policies , methods and estimates are an integral part of the consolidated financial statements prepared by management and are based upon management 's current judgments . story_separator_special_tag million for the acquisition of dba ( less cash acquired of $ 2.0 million ) , an additional $ 0.4 million for furniture and equipment , and $ 1.6 million paid to the former shareholders of subsidiaries . use of cash in 2010 consisted of $ 1.4 million paid to former shareholders of subsidiaries and $ 0.5 million for furniture and equipment purchases . 25 net cash provided by financing activities for the year ended june 30 , 2011 was $ 2.2 million compared to net cash used for financing activities of $ 1.1 million for year ended june 30 , 2010. cash from financing activities in 2011 consisted of proceeds from our credit facility of $ 2.6 million and proceeds from sales of company stock to dba stations of $ 0.2 million , which amounts were offset by $ 0.5 million used to purchase shares of our common stock and $ 0.1 million in non-controlling interest distributions . use of cash for 2010 consisted of $ 0.8 million used to purchase shares of our common stock , $ 0.2 million in payments to reduce our credit facility , and $ 0.1 million in non-controlling interest distributions . recent acquisitions below are descriptions of recent material acquisitions including a breakdown of consideration paid at closing and future potential earn-out payments . we define `` material acquisitions `` as those with aggregate potential consideration of $ 1.0 million or more . effective september 1 , 2008 , we acquired all of the outstanding stock of adcom express , inc. the transaction was valued at up to $ 11.05 million , consisting of : ( i ) $ 4.75 million in cash paid at the closing ; ( ii ) $ 0.25 million in cash payable shortly after the closing , subject to adjustment , based upon the working capital of adcom as of august 31 , 2008 ; ( iii ) up to $ 2.8 million in four `` tier-1 earn-out payments `` of up to $ 0.7 million each , covering the four year earn-out period through 2012 , based upon adcom achieving certain levels of `` gross profit contribution `` ( as defined in the agreement ) , payable 50 % in cash and 50 % in shares of our common stock ( valued at delivery date ) ; ( iv ) a `` tier-2 earn-out payment `` of up to a maximum of $ 2.0 million , equal to 20 % of the amount by which the adcom cumulative gross profit contribution exceeds $ 16.56 million during the four year earn-out period ; and ( v ) an `` integration payment `` of $ 1.25 million payable on the earlier of the date certain integration targets are achieved or 18 months after the closing , payable 50 % in cash and 50 % in our shares of our common stock ( valued at delivery date ) . through june 30 , 2011 , the former adcom shareholders earned a total of $ 1,454,141 in base earn-out payments . of this amount , $ 578,536 was paid in cash and $ 258,510 was settled in stock through the year ended june 30 , 2011. the remaining amount of $ 617,095 is included in the amount due to former shareholders of subsidiaries as of june 30 , 2011. assuming minimum targeted earnings levels are achieved , the following table summarizes our contingent base earn-out payments related to the acquisition of adcom , for the fiscal years indicated based on results of the prior year ( in thousands ) : estimated payment anticipated for fiscal year ( 1 ) : 2013 earn-out period : 7/1/2011 – 6/30/2012 earn-out payments : story_separator_special_tag oman `` > our estimate of future revenues and profits is based on the assumption that the cumulative historical financial results of operations of the company for the most recent 12 months ended june 30 , 2011 are indicative of the future financial performance and excludes the impact of further acquisitions , new agent stations or further improvement in the economic climate . a reconciliation of estimated annual adjusted ebitda for the fiscal year ended june 30 , 2011 amounts to net income , the most directly comparable gaap measure , is as follows : ( amounts in 000 's ) replace_table_token_7_th 28 off balance sheet arrangements as of june 30 , 2011 , we did not have any relationships with unconsolidated entities or financial partners , such as entities often referred to as structured finance or special purpose entities , which had been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . as such , we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in such relationships . recent accounting pronouncements in january 2010 , the financial accounting standards board ( `` fasb `` ) issued accounting standards update ( `` asu `` ) no . 2010-06 , improving disclosures about fair value measurements . the guidance in asu 2010-06 provides amendments to literature on fair value measurements and disclosures currently within the asc by clarifying certain existing disclosures and requiring new disclosures for the various classes of fair value measurements . asu 2010-06 is effective for interim and annual periods beginning after december 15 , 2009 , except for the disclosures about purchases , sales , issuances , and settlements in the roll forward of activity in level 3 fair value measurements , which are effective for fiscal years beginning after december 15 , 2010 , and for interim periods within those fiscal years . the adoption of this guidance is not expected to have a material impact on the company 's financial position or results of operations . in december 2010 , the fasb issued asu no . 2010-29 , business combinations ( topic 805 ) : disclosure of supplementary pro forma information for business combinations

