the company is no longer limited in its ability to conduct business in the state of california . for the year ended june 30 , 2007 , sales in california represented approximately 12 % of our total revenue . for the years ended june 30 , 2009 and 2008 , we had an insignificant amount of sales in california . launch of crexendo business solutions division in march 2009 , we launched our crexendo business solutions division with a focus on providing customized website design , hosting , search engine optimization and search engine management services to the small , medium , and large enterprises . unlike our storesonline division , which utilizes a two-step training event go to market strategy , crexendo business solutions ' go-to market 21 strategy utilizes a network of value added resellers ( vars ) along with inside telephone sales reps to reach our target market . as of june 30 , 2009 , we have reseller agreements with 10 vars . no revenue was generated from our crexendo business solutions division for the year ended june 30 , 2009. launch of crexendo network services in february 2009 , we launched our crexendo network services division with a focus on providing hosted telecom solutions to the small , medium , and large enterprises . crexendo network services is in the development phase with an anticipated product launch in calendar 2010. crexendo network services will be marketed through both our crexendo business solutions and storesonline divisions . no revenue was generated from our crexendo network services division for the year ended june 30 , 2009. reduction in staff in december 2007 , we reduced the number of workshop teams from nine to six and reduced our total employee base by 20 % in an effort to streamline the launch of storesonline express , visit targeted markets less frequently to cultivate greater demand , and reduce overall company expenses . in january 2009 , we reduced the number of workshop teams from six to four and reduced our total employee base by 20 % in response to current market conditions and our increased focus on the small to medium enterprise market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and form the basis for the following discussion and analysis on critical accounting policies and estimates . the preparation of these financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on a regular basis we evaluate our estimates and assumptions . estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development , selection and disclosure of these estimates with the board of directors and its audit committee . a summary of our significant accounting policies is provided in note 2 to our consolidated financial statements . we believe the critical accounting policies and estimates described below reflect our more significant estimates and assumptions used in the preparation of our consolidated financial statements . the impact and any associated risks on our business that are related to these policies are also discussed throughout this management 's discussion and analysis of financial condition and results of operations where such policies affect reported and expected financial results . revenue recognition the company sells licenses to customers to use the company 's storesonline software ( sos ) . the sos is a web-based software product that enables customers to develop internet websites for commerce without requiring additional assistance from the company , if the customers desire . when customers purchase an sos license at one of the company 's internet preview seminars or workshops , they receive a license , site key , password , and instructions which allow immediate access to the company 's website and servers where all of the necessary software programs and tools are located to be downloaded or to complete the construction of their websites on the company 's servers . additionally , the company provides website setup services and customer support for incremental fees . when customers complete their websites , those websites can be hosted with the company or any other provider of such services at the customers ' option . if the customers choose to host with the company , the company will host the websites for an additional fee . customers have the option to create their websites completely on their own without access to the company website and the option to host their websites with another hosting service . the company also sells website design services , search engine optimization and search engine management services through the crexendo business solutions platform . revenue for these services is recognized , net of expected refunds , when persuasive evidence of an arrangement exists , work has been completed , the fee is fixed or determinable , and collectability is probable . product and other revenue cash sales of sos licenses are recognized as revenue , net of expected customer refunds , upon expiration of the customers ' rescission period , which typically occurs three days after the licenses and products are delivered or when the internet training workshop takes place , whichever occurs later . fees for sos licenses sold under extended payment term arrangements ( eptas ) are recognized as revenue upon receipt of cash from customers and not at the time of sale . story_separator_special_tag trends in cost of product and other revenue will not always be consistent with the trends in revenue due to the fact that cost of product and other revenue is typically recognized at the time of sale and no later than the expiration of the customers ' three-day cancellation period , but the related revenue is often deferred in accordance with sop 97-2. selling and marketing selling and marketing expenses consist of payroll and related expenses for sales and marketing activities , advertising , and promotional and public relations expenses . selling and marketing expenses for fiscal 2008 increased 18 % to $ 69,787,000 from $ 66,744,000 for fiscal 2007. the increase in selling and marketing expenses is primarily attributable to lower response rates to our selling and marketing activities due to negative economic conditions as well as negative media reports about the company . additionally , salaries and wages increased over fiscal 2007 despite a decrease in sales due to larger preview sales teams as a result of the implementation of storesonline express during the third quarter of fiscal 2008. increases in postage on the company 's direct mail materials also caused an increase in advertising expense . selling and marketing expenses were also negatively impacted by increased travel costs associated with higher fuel prices . trends in selling and marketing expenses will not always be consistent with the trends in revenues due to the fact that selling and marketing expenses are typically recognized when incurred , at the time of sale , and no later than the expiration of the customers ' three-day cancellation period , but the related revenues are often deferred in accordance with sop 97-2 . 26 general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel ; legal , accounting and other professional fees , finance company service fees , and other general corporate expenses . general and administrative expenses in fiscal 2008 increased 18 % to $ 18,210,000 from $ 15,480,000 in fiscal 2007. the increase in general and administrative expenses during fiscal 2008 is primarily attributable to an increase in legal fees of $ 900,000 associated with various legal actions and an increase in financial servicing fees of $ 1,119,000 as a result of higher collections of accounts receivable . the balance of the increase in general and administrative expenses is the result of the general increase in costs for items such as insurance , rent , telephone , office supplies and other expenses . interest income interest income is primarily derived from the epta contracts , which generally carry an 18 % simple interest rate . interest income for fiscal 2008 increased 25 % to $ 8,858,000 compared to $ 7,079,000 for fiscal 2007. the increase is attributable to the increase in the collections of trade receivables . income tax provision during fiscal 2008 , we recorded an income tax provision of $ 3,039,000 compared to $ 2,686,000 during fiscal 2007. income taxes are based on the estimated annual effective federal , state and foreign income tax rates . the income tax provision recorded in fiscal 2008 is higher than federal , state , and foreign statutory rates as a result of changes in estimates of state net operating loss apportionments and as a result of stock-based compensation expense for incentive stock options which is not deductible for income tax purposes . in december 2005 , we determined that it was more-likely-than-not that $ 11,877,000 of our net deferred income tax assets would be realized . due to our increased taxable earnings projections and discrete event developments in the resolution of certain contingencies during fiscal 2007 , we determined that it was more-likely-than-not that our remaining deferred income tax assets of $ 7,746,000 would be realized . the benefit resulting from the removal of the corresponding valuation allowance was offset by an income tax provision of $ 10,432,000 , resulting in a net income tax provision of $ 2,686,000 during fiscal 2007. liquidity and capital resources as of june 30 , 2009 , we had working capital of $ 16,337,000 compared to working capital of $ 20,558,000 as of june 30 , 2008. as of june 30 , 2009 , we had working capital , excluding deferred revenue , of $ 39,964,000 compared to $ 53,417,000 as of june 30 , 2008. deferred revenue balances represent historical sales for which the company can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . story_separator_special_tag style= `` margin-top:7.8px ; margin-bottom:7.8px ; text-indent:48px `` > recent accounting pronouncements not yet adopted in february 2008 , fasb staff position 157-2 , effective date of fasb statement no . 157 , was issued which delays the effective date of sfas no . 157 to july 1 , 2009 for the company , for all nonfinancial assets and nonfinancial liabilities , except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis ( at least annually ) . the company believes the adoption of the delayed items of sfas no . 157 will not have a material impact on the consolidated financial statements . in december 2007 , sfas no . 141r , business combinations , was issued which replaces sfas no . 141. sfas no . 141r retains the purchase method of accounting for acquisitions , but requires a number of changes , including changes in the way assets and liabilities are recognized in the purchase accounting . it also changes the recognition of assets acquired and liabilities assumed arising from contingencies , requires the capitalization of in-process research and development at fair value , and requires the expensing of acquisition-related costs as incurred . sfas no

cash and cash equivalents as of june 30 , 2009 , we had $ 20,474,000 of cash and cash equivalents compared to $ 26,184,000 as of june 30 , 2008. during fiscal 2009 we used $ 6,985,000 in cash for operating activities . during fiscal 2008 and 2007 , we generated positive cash flows from operating activities of $ 10,361,000 , and $ 22,554,000 , respectively . available-for-sale securities as of june 30 , 2009 , we held no available-for-sale securities compared to $ 3,800,000 as of june 30 , 2008. available-for-sale securities consisted primarily of auction rate securities ( ars ) . these were long-term variable rate bonds tied to short-term interest rates that reset through a dutch auction process , historically occurring every 7 to 35 days , and other variable rate debt and equity securities , which were held by merrill lynch . in january 2009 , we liquidated all of our ars at par value . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 30,756,000 as of june 30 , 2009 , compared to $ 38,568,000 as of june 30 , 2008. long-term trade receivables , net of allowance for doubtful accounts , were $ 9,985,000 as of june 30 , 2009 compared to $ 9,845,000 as of june 30 , 2008. we offer our customers a 24-month installment contract as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . we have sold some of our domestic trade receivables in the past . in the future , we may evaluate agreements with third-party financing companies for the sale of our international and domestic trade receivables . accounts payable accounts payable as of june 30 , 2009 totaled $ 2,266,000 , compared to $ 4,760,000 as of june 30 , 2008. the aging of accounts payable as of june 30 , 2009 and 2008 was generally within our vendors ' terms of payment .


 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 and cash equivalents as of june 30 , 2009 , we had $ 20,474,000 of cash and cash equivalents compared to $ 26,184,000 as of june 30 , 2008. during fiscal 2009 we used $ 6,985,000 in cash for operating activities . during fiscal 2008 and 2007 , we generated positive cash flows from operating activities of $ 10,361,000 , and $ 22,554,000 , respectively . available-for-sale securities as of june 30 , 2009 , we held no available-for-sale securities compared to $ 3,800,000 as of june 30 , 2008. available-for-sale securities consisted primarily of auction rate securities ( ars ) . these were long-term variable rate bonds tied to short-term interest rates that reset through a dutch auction process , historically occurring every 7 to 35 days , and other variable rate debt and equity securities , which were held by merrill lynch . in january 2009 , we liquidated all of our ars at par value . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 30,756,000 as of june 30 , 2009 , compared to $ 38,568,000 as of june 30 , 2008. long-term trade receivables , net of allowance for doubtful accounts , were $ 9,985,000 as of june 30 , 2009 compared to $ 9,845,000 as of june 30 , 2008. we offer our customers a 24-month installment contract as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . we have sold some of our domestic trade receivables in the past . in the future , we may evaluate agreements with third-party financing companies for the sale of our international and domestic trade receivables . accounts payable accounts payable as of june 30 , 2009 totaled $ 2,266,000 , compared to $ 4,760,000 as of june 30 , 2008. the aging of accounts payable as of june 30 , 2009 and 2008 was generally within our vendors ' terms of payment .
```    
 Suspicious Activity Report : the company is no longer limited in its ability to conduct business in the state of california . for the year ended june 30 , 2007 , sales in california represented approximately 12 % of our total revenue . for the years ended june 30 , 2009 and 2008 , we had an insignificant amount of sales in california . launch of crexendo business solutions division in march 2009 , we launched our crexendo business solutions division with a focus on providing customized website design , hosting , search engine optimization and search engine management services to the small , medium , and large enterprises . unlike our storesonline division , which utilizes a two-step training event go to market strategy , crexendo business solutions ' go-to market 21 strategy utilizes a network of value added resellers ( vars ) along with inside telephone sales reps to reach our target market . as of june 30 , 2009 , we have reseller agreements with 10 vars . no revenue was generated from our crexendo business solutions division for the year ended june 30 , 2009. launch of crexendo network services in february 2009 , we launched our crexendo network services division with a focus on providing hosted telecom solutions to the small , medium , and large enterprises . crexendo network services is in the development phase with an anticipated product launch in calendar 2010. crexendo network services will be marketed through both our crexendo business solutions and storesonline divisions . no revenue was generated from our crexendo network services division for the year ended june 30 , 2009. reduction in staff in december 2007 , we reduced the number of workshop teams from nine to six and reduced our total employee base by 20 % in an effort to streamline the launch of storesonline express , visit targeted markets less frequently to cultivate greater demand , and reduce overall company expenses . in january 2009 , we reduced the number of workshop teams from six to four and reduced our total employee base by 20 % in response to current market conditions and our increased focus on the small to medium enterprise market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and form the basis for the following discussion and analysis on critical accounting policies and estimates . the preparation of these financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on a regular basis we evaluate our estimates and assumptions . estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development , selection and disclosure of these estimates with the board of directors and its audit committee . a summary of our significant accounting policies is provided in note 2 to our consolidated financial statements . we believe the critical accounting policies and estimates described below reflect our more significant estimates and assumptions used in the preparation of our consolidated financial statements . the impact and any associated risks on our business that are related to these policies are also discussed throughout this management 's discussion and analysis of financial condition and results of operations where such policies affect reported and expected financial results . revenue recognition the company sells licenses to customers to use the company 's storesonline software ( sos ) . the sos is a web-based software product that enables customers to develop internet websites for commerce without requiring additional assistance from the company , if the customers desire . when customers purchase an sos license at one of the company 's internet preview seminars or workshops , they receive a license , site key , password , and instructions which allow immediate access to the company 's website and servers where all of the necessary software programs and tools are located to be downloaded or to complete the construction of their websites on the company 's servers . additionally , the company provides website setup services and customer support for incremental fees . when customers complete their websites , those websites can be hosted with the company or any other provider of such services at the customers ' option . if the customers choose to host with the company , the company will host the websites for an additional fee . customers have the option to create their websites completely on their own without access to the company website and the option to host their websites with another hosting service . the company also sells website design services , search engine optimization and search engine management services through the crexendo business solutions platform . revenue for these services is recognized , net of expected refunds , when persuasive evidence of an arrangement exists , work has been completed , the fee is fixed or determinable , and collectability is probable . product and other revenue cash sales of sos licenses are recognized as revenue , net of expected customer refunds , upon expiration of the customers ' rescission period , which typically occurs three days after the licenses and products are delivered or when the internet training workshop takes place , whichever occurs later . fees for sos licenses sold under extended payment term arrangements ( eptas ) are recognized as revenue upon receipt of cash from customers and not at the time of sale . story_separator_special_tag trends in cost of product and other revenue will not always be consistent with the trends in revenue due to the fact that cost of product and other revenue is typically recognized at the time of sale and no later than the expiration of the customers ' three-day cancellation period , but the related revenue is often deferred in accordance with sop 97-2. selling and marketing selling and marketing expenses consist of payroll and related expenses for sales and marketing activities , advertising , and promotional and public relations expenses . selling and marketing expenses for fiscal 2008 increased 18 % to $ 69,787,000 from $ 66,744,000 for fiscal 2007. the increase in selling and marketing expenses is primarily attributable to lower response rates to our selling and marketing activities due to negative economic conditions as well as negative media reports about the company . additionally , salaries and wages increased over fiscal 2007 despite a decrease in sales due to larger preview sales teams as a result of the implementation of storesonline express during the third quarter of fiscal 2008. increases in postage on the company 's direct mail materials also caused an increase in advertising expense . selling and marketing expenses were also negatively impacted by increased travel costs associated with higher fuel prices . trends in selling and marketing expenses will not always be consistent with the trends in revenues due to the fact that selling and marketing expenses are typically recognized when incurred , at the time of sale , and no later than the expiration of the customers ' three-day cancellation period , but the related revenues are often deferred in accordance with sop 97-2 . 26 general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel ; legal , accounting and other professional fees , finance company service fees , and other general corporate expenses . general and administrative expenses in fiscal 2008 increased 18 % to $ 18,210,000 from $ 15,480,000 in fiscal 2007. the increase in general and administrative expenses during fiscal 2008 is primarily attributable to an increase in legal fees of $ 900,000 associated with various legal actions and an increase in financial servicing fees of $ 1,119,000 as a result of higher collections of accounts receivable . the balance of the increase in general and administrative expenses is the result of the general increase in costs for items such as insurance , rent , telephone , office supplies and other expenses . interest income interest income is primarily derived from the epta contracts , which generally carry an 18 % simple interest rate . interest income for fiscal 2008 increased 25 % to $ 8,858,000 compared to $ 7,079,000 for fiscal 2007. the increase is attributable to the increase in the collections of trade receivables . income tax provision during fiscal 2008 , we recorded an income tax provision of $ 3,039,000 compared to $ 2,686,000 during fiscal 2007. income taxes are based on the estimated annual effective federal , state and foreign income tax rates . the income tax provision recorded in fiscal 2008 is higher than federal , state , and foreign statutory rates as a result of changes in estimates of state net operating loss apportionments and as a result of stock-based compensation expense for incentive stock options which is not deductible for income tax purposes . in december 2005 , we determined that it was more-likely-than-not that $ 11,877,000 of our net deferred income tax assets would be realized . due to our increased taxable earnings projections and discrete event developments in the resolution of certain contingencies during fiscal 2007 , we determined that it was more-likely-than-not that our remaining deferred income tax assets of $ 7,746,000 would be realized . the benefit resulting from the removal of the corresponding valuation allowance was offset by an income tax provision of $ 10,432,000 , resulting in a net income tax provision of $ 2,686,000 during fiscal 2007. liquidity and capital resources as of june 30 , 2009 , we had working capital of $ 16,337,000 compared to working capital of $ 20,558,000 as of june 30 , 2008. as of june 30 , 2009 , we had working capital , excluding deferred revenue , of $ 39,964,000 compared to $ 53,417,000 as of june 30 , 2008. deferred revenue balances represent historical sales for which the company can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . story_separator_special_tag style= `` margin-top:7.8px ; margin-bottom:7.8px ; text-indent:48px `` > recent accounting pronouncements not yet adopted in february 2008 , fasb staff position 157-2 , effective date of fasb statement no . 157 , was issued which delays the effective date of sfas no . 157 to july 1 , 2009 for the company , for all nonfinancial assets and nonfinancial liabilities , except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis ( at least annually ) . the company believes the adoption of the delayed items of sfas no . 157 will not have a material impact on the consolidated financial statements . in december 2007 , sfas no . 141r , business combinations , was issued which replaces sfas no . 141. sfas no . 141r retains the purchase method of accounting for acquisitions , but requires a number of changes , including changes in the way assets and liabilities are recognized in the purchase accounting . it also changes the recognition of assets acquired and liabilities assumed arising from contingencies , requires the capitalization of in-process research and development at fair value , and requires the expensing of acquisition-related costs as incurred . sfas no

