in exchange for such equity interests , liqtech usa agreed to pay to such holders in the aggregate ( i ) $ 4,637,315 in cash , ( ii ) promissory notes in the principal amounts of dkk 19,500,000 ( which was equal to $ 3,765,351 based upon the currency exchange rate of $ 1.00 = dkk 5.1788 as of august 22 , 2011 ) and ( iii ) 9,308,333 shares of liqtech usa 's common stock . prior to completion of the merger , liqtech usa completed a private placement offering of 63 units at $ 100,000 per unit , each such unit consisting of 40 shares of liqtech usa 's common stock and 20 warrants to purchase liqtech usa common stock , and received $ 4,800,000 in cash and a promissory note for $ 1,500,000 payable on september 7 , 2011. thereafter , in august 2011 , liqtech usa closed the transactions contemplated by the liqtech acquisition agreements . as a result of the merger , blue moose changed its management and reconstituted its board of directors . as of the effective time of the merger , gordon tattarsall , the president , the chief financial officer and the sole director of blue moose , resigned as president and chief financial officer . as blue moose 's sole director , mr. tattersall appointed aldo petersen as a director of blue moose . the directors then appointed lasse andreassen and soren degn as the officers of blue moose , and lasse andreassen , paul burgon , john nemelka and michael sonneland as directors of blue moose . however , the other new directors did not take office until september 5 , 2011 , which is ten days after we filed an information statement pursuant to rule 14f-1 of the securities and exchange act of 1934 , as amended , and mailed that statement to our stockholders of record . in addition , mr. tattarsall resigned as a director of blue moose effective as of september 5 , 2011 . 22 2012 developments opening of singapore office on january 17 , 2012 , we announced the establishment of a representative office in singapore . the new singapore office will service the south east asian markets covering our entire product portfolio . march 2012 registered offering of common stock on march 2 , 2012 , we completed a registered public offering of our common stock . as part of the closing , we issued 2,511,500 shares of our common stock in a registered direct placement of our shares at a per share price of $ 3.25. the net proceeds to us from the closing were approximately $ 7.1 million . we have used the net proceeds from the offering for debt repayment , the development and marketing of our products , the engineering , development and testing of our membranes , and the opening of local sales offices in certain countries outside of the u.s. and denmark . we have invested the remaining proceeds in short-term , interest-bearing , investment-grade marketable securities or money market obligations . sunrise securities corp. acted as the exclusive placement agent for this transaction . as part of the compensation for the placement agent , we also issued to the placement agent and certain of its agents for $ 100 , warrants to purchase an aggregate of 125,575 shares of our common stock ( equal to 5 % of the shares of common stock sold by the placement agent and its agents in the offering ) . the warrants have an exercise price equal to $ 4.06 ( or 125 % of the offering price of the shares sold in the offering ) and may be exercised on a cashless basis . the warrants are exercisable for a period of five years commencing after february 13 , 2012 , which was the effective date of the registration statement related to the offering . the warrants were subject to a lock-up restriction for 180 days pursuant to finra rule 5110 ( g ) . the warrants are not redeemable by us . oem supply agreement on december 14 , 2012 , through our singapore subsidiary liqtech pte ltd. , we entered into a non-exclusive oem supply agreement for our sic membrane technology with shanghai denovo environment protection co. , ltd. , a company organized under the laws of china and one of the leading industrial waste water firms in china . the agreement includes progressive minimum order quantities for the years 2013 - 2016 for denovo to maintain the supply agreement . on march 20 , 2013 , liqtech denmark international entered into a joint development agreement with fmc technologies , inc. ( `` fmc `` ) pursuant to which the parties shall combine their respective expertise to develop a filtration system for processing flowback fluids in unconventional shale oil/gas applications ( i.e . , oil and gas resources which can not be explored , developed and produced by conventional processes ) . liqtech denmark international shall provide the company 's sic filters and fmc shall provide certain operational , field know-how , engineering , and fabricating technical resources in order to develop a robust filtration system . in connection with the development agreement , the parties also entered into a master supply agreement whereby liqtech denmark international shall supply sic filters to fmc , on an exclusive basis for unconventional shale oil/gas applications and on a non-exclusive basis for other gas/oil processing applications . story_separator_special_tag the company has established an allowance of $ 700,000 against the receivables due from this customer . long-lived assets we assess the impairment of long-lived assets when events or changes in circumstances indicate that the carrying value of the assets or the asset grouping may not be recoverable . factors that we consider in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations , significant negative industry or economic trends , and significant changes or planned changes in our use of the assets . we measure the recoverability of assets that will continue to be used in our operations by comparing the carrying value of the asset grouping to our estimate of the related total future undiscounted net cash flows . if an asset grouping 's carrying value is not recoverable through the related undiscounted cash flows , the asset grouping is considered to be impaired . the impairment is measured by comparing the difference between the asset grouping 's carrying value and its fair value . long-lived assets such as goodwill , intangible assets , and property , plant and equipment are considered non-financial assets , and are recorded at fair value only if an impairment charge is recognized . impairments of long-lived assets are determined for groups of assets related to the lowest level of identifiable independent cash flows . due to our asset usage model and the interchangeable nature of our ceramic filter manufacturing capacity , we must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings . in addition , as we make manufacturing process conversions and other factory planning decisions , we must make subjective judgments regarding the remaining useful lives of assets , primarily process-specific filter manufacturing tools and building improvements . if we determine that the useful lives of assets are shorter than we had originally estimated , we accelerate the rate of depreciation over the assets ' new , shorter useful lives . during the years ended december 31 , 2012 and 2011 , no impairment charge of long-lived assets has been recorded . 30 revenue recognition and sales incentives the company 's accounts for revenue recognition in accordance with the securities and exchange commission staff accounting bulletin no . 101 , “ revenue recognition in financial statements ” ( sab 101 ) , fasb asc 605 revenue recognition . the company recognizes revenue when rights and risk of ownership have passed to the customer , when there is persuasive evidence of an arrangement , product has been shipped or delivered to the customer , the price and terms are finalized , and collections of resulting receivable is reasonably assured . products are primarily shipped fob shipping point at which time title passes to the customer . in some instances the company uses common carriers for the delivery of products . in these arrangements , sales are recognized upon delivery to the customer . the company 's revenue arrangements with its customers often include early payment discounts and such sales incentives are recorded against sales . in denmark , value added tax ( “ vat ” ) of 25 % of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities . the vat collected is not revenue of the company ; instead , the amount is recorded as a liability on the balance sheet until such vat is paid to the authorities . income taxes we must make estimates and judgments in determining the provision for taxes for financial statement purposes . these estimates and judgments occur in the calculation of tax credits , benefits , and deductions , and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . significant changes in these estimates may result in an increase or decrease to our tax provision in a subsequent period . we must assess the likelihood that we will be able to recover our deferred tax assets . if recovery is not likely , we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . we believe that we will ultimately recover the deferred tax assets recorded on our consolidated balance sheets . however , should there be a change in our ability to recover our deferred tax assets , our tax provision would increase in the period in which we determined that the recovery was not likely . recovery of a portion of our deferred tax assets is impacted by management 's plans and methods of allocating research and development costs to the underlying reporting units . the calculation of our tax liabilities involves uncertainties in the application of complex tax regulations in denmark and the united states . when a tax position is determined uncertain , we recognize liabilities based on a two-step process . the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit , including resolution of related appeals or litigation processes , if any . if we determine that a tax position will more likely than not be sustained on audit , the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50 % likely to be realized upon ultimate settlement . it is inherently difficult and subjective to estimate such amounts , as we have to determine the probability of various possible outcomes . if uncertainties arise we re-evaluate the tax positions on a quarterly basis . this evaluation is based on factors such as changes in facts or circumstances , changes in tax law , new audit activity ,

cash flows year ended december 31 , 2012 compared to year ended december 31 , 2011 cash provided ( used ) by operating activities is net income ( losses ) adjusted for certain non-cash items and changes in assets and liabilities . cash used by operating activities for the year ended december 31 , 2012 was $ 478,077 , representing a decrease of $ 483,225 , compared to cash provided by operating activities of $ 5,148 for the year ended december 31 , 2011. the $ 483,225 in cash used by operating activities for the year ended december 31 , 2012 was mainly due to the net loss of $ 2,773,890 , the increases of $ 1,161,098 in inventory and the decrease of $ 2,405,123 in accounts receivable and a decrease of $ 737,729 in accounts payables . the increases in inventory was due to the increased in demand for water filters and kiln furniture and slower activity in diesel particulate filters caused by the delay in enforcing clean air mandates . accounts receivable and other receivable decreased due to lower sales , higher allowance for doubtful receivables and the receipt of approximately $ 730,000 in insurance proceeds included in other receivables at december 31 , 2011. accounts payable decreased due to greater liquidity and payment of obligations .


 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 flows year ended december 31 , 2012 compared to year ended december 31 , 2011 cash provided ( used ) by operating activities is net income ( losses ) adjusted for certain non-cash items and changes in assets and liabilities . cash used by operating activities for the year ended december 31 , 2012 was $ 478,077 , representing a decrease of $ 483,225 , compared to cash provided by operating activities of $ 5,148 for the year ended december 31 , 2011. the $ 483,225 in cash used by operating activities for the year ended december 31 , 2012 was mainly due to the net loss of $ 2,773,890 , the increases of $ 1,161,098 in inventory and the decrease of $ 2,405,123 in accounts receivable and a decrease of $ 737,729 in accounts payables . the increases in inventory was due to the increased in demand for water filters and kiln furniture and slower activity in diesel particulate filters caused by the delay in enforcing clean air mandates . accounts receivable and other receivable decreased due to lower sales , higher allowance for doubtful receivables and the receipt of approximately $ 730,000 in insurance proceeds included in other receivables at december 31 , 2011. accounts payable decreased due to greater liquidity and payment of obligations .
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 Suspicious Activity Report : in exchange for such equity interests , liqtech usa agreed to pay to such holders in the aggregate ( i ) $ 4,637,315 in cash , ( ii ) promissory notes in the principal amounts of dkk 19,500,000 ( which was equal to $ 3,765,351 based upon the currency exchange rate of $ 1.00 = dkk 5.1788 as of august 22 , 2011 ) and ( iii ) 9,308,333 shares of liqtech usa 's common stock . prior to completion of the merger , liqtech usa completed a private placement offering of 63 units at $ 100,000 per unit , each such unit consisting of 40 shares of liqtech usa 's common stock and 20 warrants to purchase liqtech usa common stock , and received $ 4,800,000 in cash and a promissory note for $ 1,500,000 payable on september 7 , 2011. thereafter , in august 2011 , liqtech usa closed the transactions contemplated by the liqtech acquisition agreements . as a result of the merger , blue moose changed its management and reconstituted its board of directors . as of the effective time of the merger , gordon tattarsall , the president , the chief financial officer and the sole director of blue moose , resigned as president and chief financial officer . as blue moose 's sole director , mr. tattersall appointed aldo petersen as a director of blue moose . the directors then appointed lasse andreassen and soren degn as the officers of blue moose , and lasse andreassen , paul burgon , john nemelka and michael sonneland as directors of blue moose . however , the other new directors did not take office until september 5 , 2011 , which is ten days after we filed an information statement pursuant to rule 14f-1 of the securities and exchange act of 1934 , as amended , and mailed that statement to our stockholders of record . in addition , mr. tattarsall resigned as a director of blue moose effective as of september 5 , 2011 . 22 2012 developments opening of singapore office on january 17 , 2012 , we announced the establishment of a representative office in singapore . the new singapore office will service the south east asian markets covering our entire product portfolio . march 2012 registered offering of common stock on march 2 , 2012 , we completed a registered public offering of our common stock . as part of the closing , we issued 2,511,500 shares of our common stock in a registered direct placement of our shares at a per share price of $ 3.25. the net proceeds to us from the closing were approximately $ 7.1 million . we have used the net proceeds from the offering for debt repayment , the development and marketing of our products , the engineering , development and testing of our membranes , and the opening of local sales offices in certain countries outside of the u.s. and denmark . we have invested the remaining proceeds in short-term , interest-bearing , investment-grade marketable securities or money market obligations . sunrise securities corp. acted as the exclusive placement agent for this transaction . as part of the compensation for the placement agent , we also issued to the placement agent and certain of its agents for $ 100 , warrants to purchase an aggregate of 125,575 shares of our common stock ( equal to 5 % of the shares of common stock sold by the placement agent and its agents in the offering ) . the warrants have an exercise price equal to $ 4.06 ( or 125 % of the offering price of the shares sold in the offering ) and may be exercised on a cashless basis . the warrants are exercisable for a period of five years commencing after february 13 , 2012 , which was the effective date of the registration statement related to the offering . the warrants were subject to a lock-up restriction for 180 days pursuant to finra rule 5110 ( g ) . the warrants are not redeemable by us . oem supply agreement on december 14 , 2012 , through our singapore subsidiary liqtech pte ltd. , we entered into a non-exclusive oem supply agreement for our sic membrane technology with shanghai denovo environment protection co. , ltd. , a company organized under the laws of china and one of the leading industrial waste water firms in china . the agreement includes progressive minimum order quantities for the years 2013 - 2016 for denovo to maintain the supply agreement . on march 20 , 2013 , liqtech denmark international entered into a joint development agreement with fmc technologies , inc. ( `` fmc `` ) pursuant to which the parties shall combine their respective expertise to develop a filtration system for processing flowback fluids in unconventional shale oil/gas applications ( i.e . , oil and gas resources which can not be explored , developed and produced by conventional processes ) . liqtech denmark international shall provide the company 's sic filters and fmc shall provide certain operational , field know-how , engineering , and fabricating technical resources in order to develop a robust filtration system . in connection with the development agreement , the parties also entered into a master supply agreement whereby liqtech denmark international shall supply sic filters to fmc , on an exclusive basis for unconventional shale oil/gas applications and on a non-exclusive basis for other gas/oil processing applications . story_separator_special_tag the company has established an allowance of $ 700,000 against the receivables due from this customer . long-lived assets we assess the impairment of long-lived assets when events or changes in circumstances indicate that the carrying value of the assets or the asset grouping may not be recoverable . factors that we consider in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations , significant negative industry or economic trends , and significant changes or planned changes in our use of the assets . we measure the recoverability of assets that will continue to be used in our operations by comparing the carrying value of the asset grouping to our estimate of the related total future undiscounted net cash flows . if an asset grouping 's carrying value is not recoverable through the related undiscounted cash flows , the asset grouping is considered to be impaired . the impairment is measured by comparing the difference between the asset grouping 's carrying value and its fair value . long-lived assets such as goodwill , intangible assets , and property , plant and equipment are considered non-financial assets , and are recorded at fair value only if an impairment charge is recognized . impairments of long-lived assets are determined for groups of assets related to the lowest level of identifiable independent cash flows . due to our asset usage model and the interchangeable nature of our ceramic filter manufacturing capacity , we must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings . in addition , as we make manufacturing process conversions and other factory planning decisions , we must make subjective judgments regarding the remaining useful lives of assets , primarily process-specific filter manufacturing tools and building improvements . if we determine that the useful lives of assets are shorter than we had originally estimated , we accelerate the rate of depreciation over the assets ' new , shorter useful lives . during the years ended december 31 , 2012 and 2011 , no impairment charge of long-lived assets has been recorded . 30 revenue recognition and sales incentives the company 's accounts for revenue recognition in accordance with the securities and exchange commission staff accounting bulletin no . 101 , “ revenue recognition in financial statements ” ( sab 101 ) , fasb asc 605 revenue recognition . the company recognizes revenue when rights and risk of ownership have passed to the customer , when there is persuasive evidence of an arrangement , product has been shipped or delivered to the customer , the price and terms are finalized , and collections of resulting receivable is reasonably assured . products are primarily shipped fob shipping point at which time title passes to the customer . in some instances the company uses common carriers for the delivery of products . in these arrangements , sales are recognized upon delivery to the customer . the company 's revenue arrangements with its customers often include early payment discounts and such sales incentives are recorded against sales . in denmark , value added tax ( “ vat ” ) of 25 % of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities . the vat collected is not revenue of the company ; instead , the amount is recorded as a liability on the balance sheet until such vat is paid to the authorities . income taxes we must make estimates and judgments in determining the provision for taxes for financial statement purposes . these estimates and judgments occur in the calculation of tax credits , benefits , and deductions , and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . significant changes in these estimates may result in an increase or decrease to our tax provision in a subsequent period . we must assess the likelihood that we will be able to recover our deferred tax assets . if recovery is not likely , we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . we believe that we will ultimately recover the deferred tax assets recorded on our consolidated balance sheets . however , should there be a change in our ability to recover our deferred tax assets , our tax provision would increase in the period in which we determined that the recovery was not likely . recovery of a portion of our deferred tax assets is impacted by management 's plans and methods of allocating research and development costs to the underlying reporting units . the calculation of our tax liabilities involves uncertainties in the application of complex tax regulations in denmark and the united states . when a tax position is determined uncertain , we recognize liabilities based on a two-step process . the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit , including resolution of related appeals or litigation processes , if any . if we determine that a tax position will more likely than not be sustained on audit , the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50 % likely to be realized upon ultimate settlement . it is inherently difficult and subjective to estimate such amounts , as we have to determine the probability of various possible outcomes . if uncertainties arise we re-evaluate the tax positions on a quarterly basis . this evaluation is based on factors such as changes in facts or circumstances , changes in tax law , new audit activity ,

