the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate estimates and judgments , including those described in greater detail below . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . as used in this `` management 's discussion and analysis of financial condition and results of operation , `` except where the context otherwise requires , the term `` we , `` `` us , `` `` our , `` `` tiger x , `` or `` cardo `` refers to the business of tiger x medical , inc. overview tiger x medical , inc. ( `` tiger x `` or the `` company `` ) , formerly known as cardo medical , inc. , previously operated as an orthopedic medical device company specializing in designing , developing and marketing high performance reconstructive joint devices and spinal surgical devices . as discussed below , in january 2011 we entered into an asset purchase agreement to sell substantially all of our assets in the reconstructive division to arthrex . we completed the sale of the reconstructive division assets during the second quarter of 2011. additionally , we completed the sale of substantially all of the assets in the spine division in april 2011. our continuing operations include the collection and management of our royalty income earned in connection with the asset purchase agreement with arthrex , as well as continuing to promote our former products sold to arthrex and seek a joint venture partner or buyer for the remaining intellectual property owned by the company . the company will also be evaluating future investment opportunities and uses for its cash . we are headquartered in los angeles , california . our common stock is quoted on the national association of securities dealers , inc. 's , over-the-counter bulletin board , or the otc bulletin board with a trading symbol of cdom.ob . critical accounting policies and estimates our significant accounting policies are more fully described in the notes to our consolidated financial statements . those material accounting estimates that we believe are the most critical to an investor 's understanding of our financial results and condition are discussed immediately below and are particularly important to the portrayal of our financial position and results of operations and require the application of significant judgment by our management to determine the appropriate assumptions to be used in the determination of certain estimates . use of estimates financial statements prepared in accordance with united states generally accepted accounting principles ( `` u.s. gaap `` ) require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . among other things , management makes estimates relating to allowances for doubtful accounts , net realizable value of assets , share- based payment , and deferred income tax assets . actual results could differ from those estimates . 11 discontinued operations on october 7 , 2010 , the company 's management and board of directors decided to put substantially all of its assets up for sale . the assets determined to be held for sale were inventories , intellectual properties , and property and equipment of its reconstructive products line ( the `` reconstructive division `` ) and spine products line ( the `` spine division `` ) . the company decided to put the assets of its reconstructive and spine divisions up for sale primarily because it did not have sufficient working capital , and was not able to procure such financial resources through equity or debt financing , in order to fully execute a profitable sales strategy . on january 24 , 2011 , the company entered into an asset purchase agreement with arthrex , inc. ( `` arthrex `` ) ( the agreement being the `` arthrex asset purchase agreement `` ) , pursuant to which the company agreed to sell the assets of the reconstructive division to arthrex . the arthrex asset purchase agreement also provides for the company to receive royalty payments equal to 5 % of net sales of the company 's products made by arthrex on a quarterly basis for a term up to and including the 20th anniversary of the closing date . during the years ended december 31 , 2012 and 2011 , the company received total royalty payments of $ 62,000 and $ 12,000 , respectively , from arthrex and reflected this payment as revenue on the accompanying condensed consolidated statements of operations . the company completed the sale of the reconstructive division on june 10 , 2011. the total cash consideration received by the company from arthrex amounted to $ 14,586,000 , which was comprised of $ 9,960,000 plus inventory with a value of $ 2,908,000 and property and equipment with a value of $ 1,718,000. from this amount , $ 1,159,000 was deposited with an escrow agent to be held for twelve months for any potential adjustments to the purchase price relating to future adjustments to the value of the inventory and property and equipment and other unassertedclaims . story_separator_special_tag the total gain on the sale of the reconstructive division assets as of december 31 , 2011 amounted to $ 10,356,000. on april 4 , 2011 , the company entered into and closed an asset purchase agreement with altus partners , llc , a delaware limited liability company ( `` altus `` ) , pursuant to which the company sold substantially all of the assets of the spine division in exchange for cash consideration of $ 3,000,000 ( the `` altus asset purchase agreement `` ) . pursuant to the terms of the altus asset purchase agreement , $ 2,700,000 of the purchase price was paid at the closing and $ 300,000 was deposited into escrow with an escrow agent for a period of 90 days from the closing date ( assuming there are no disputes ) to be used for any adjustments to the closing value of the company 's inventory and property and equipment . in september 2011 , $ 240,000 of the escrow amount was released to altus and $ 60,000 was released to the company to settle the adjustments relating to the closing value of the company 's inventory and property and equipment . the company recorded $ 240,000 as a reduction of the gain on sale during the year ended december 31 , 2011. the total gain on the sale of the spine division assets as of december 31 , 2011 amounted to $ 2,046,000. the total gain associated with the above sales of the assets of the reconstructive and spine divisions amounted to $ 11,846,000 , which is presented net of the income tax expense effect of $ 556,000. during the year ended december 31 , 2012 , the company filed its tax return and received an income tax refund of approximately $ 532,000 relating to the income tax paid on the gain on the sale of the discontinued divisions . as a result , the associated income tax benefit was recorded as a component of the gain on the sale of discontinued reconstructive and spine divisions on the accompanying condensed consolidated statements of operations during the year ended december 31 , 2012. pursuant to the sale transaction with arthrex , the total aggregate amount remaining in escrow accounts as of december 31 , 2011 was $ 900,000 , which is reflected as restricted cash on the accompanying condensed consolidated balance sheets . as of december 31 , 2012 , there were no amounts remaining in the escrow accounts relating to the sales transaction with arthrex or altus . 12 total sales associated with the discontinued reconstructive and spine divisions reported as discontinued operations for the year ended december 31 , 2012 and 2011 , were $ 0 and $ 746,000 , respectively . the total pretax gain ( loss ) associated with the discontinued reconstructive and spine divisions , including the discontinued corporate support for those activities , reported as discontinued operations for the years ended december 31 , 2012 and 2011 were $ 104,000 and ( $ 1,552,000 ) , respectively . the pretax gain associated with discontinued operations during the year ended december 31 , 2012 resulted from the relief of liabilities associated with the discontinued divisions , net of the write off of remaining accounts receivables believed to be uncollectible . the continuing operations reflected are expenses associated with business insurance , legal and accounting fees that the company will continue to incur . revenue recognition we recognize revenue when it is realizable and earned . management considers revenue to be realizable and earned when the following criteria are met : persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered , the seller 's price to the buyer is fixed or determinable , and collectability is reasonably assured . subsequent to the sale of the reconstructive division and the spine division , revenue consists of royalty revenue , which is recorded as the amount becomes known and collectability is reasonably assured . income taxes deferred income tax assets and liabilities are recognized to reflect the estimated future tax effects , calculated at currently effective tax rates , of future deductible or taxable amounts attributable to events that have been recognized on a cumulative basis in the financial statements . a valuation allowance related to a deferred income tax asset is recorded when it is more likely than not that some portion of the deferred income tax asset will not be realized . deferred income tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment . the company recognizes all material tax positions , including all significant uncertain tax positions , in which it is more likely than not that the position will be sustained based on its technical merits and if challenged by the relevant taxing authorities . at each balance sheet date , unresolved uncertain tax positions are reassessed to determine whether subsequent developments require a change in the amount of recognized tax benefit . recent accounting pronouncements there are no recently issued accounting pronouncements or standards updates that we have yet to adopt that are expected to have a material effect on our financial position , results of operations , or cash flows . 13 results of operations and financial condition for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 the following are the consolidated results of our operations for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. as discussed above , our reconstructive division and spine division were discontinued during 2010. replace_table_token_2_th revenues revenues from continuing operations amounted to $ 62,000 for the year ended december 31 , 2012 compared with $ 12,000 for 2011. revenues from continuing operations represented royalties received from arthrex in connection with the arthrex asset purchase agreement . the amounts increased during 2012 due to a full

liquidity and capital resources as discussed previously , during the quarter ended june 30 , 2011 , we sold substantially all of our assets relating to the spine and reconstructive divisions , which were discontinued during the fourth quarter of 2010. this resulted in net cash provided by investing activities for the year ended december 31 , 2011 of $ 16,138,000 , which included gross proceeds from the sale of the assets of $ 17,175,000 , less $ 900,000 of the funds placed in restricted cash escrow accounts , less purchases of equipment of $ 137,000. during 2012 , we had net cash provided from investing activities of $ 900,000 , which represented the restrictions being removed from the escrow account . net cash used in operating activities was $ 3,087,000 for the year ended december 31 , 2011 compared to $ 310,000 in 2012. our overall operating costs were higher in 2011 as we had a period of operations prior to the sale of the reconstructive and spine divisions during the second quarter of 2011. our overall operating costs were lower in 2012 due to our current operations being primarily collection and management of our royalty income earned in connection with the asset purchase agreement with arthrex , as well as continuingto promote our former products sold to arthrex and seek a joint venture partner or buyer for the remaining intellectual property owned by the company .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources as discussed previously , during the quarter ended june 30 , 2011 , we sold substantially all of our assets relating to the spine and reconstructive divisions , which were discontinued during the fourth quarter of 2010. this resulted in net cash provided by investing activities for the year ended december 31 , 2011 of $ 16,138,000 , which included gross proceeds from the sale of the assets of $ 17,175,000 , less $ 900,000 of the funds placed in restricted cash escrow accounts , less purchases of equipment of $ 137,000. during 2012 , we had net cash provided from investing activities of $ 900,000 , which represented the restrictions being removed from the escrow account . net cash used in operating activities was $ 3,087,000 for the year ended december 31 , 2011 compared to $ 310,000 in 2012. our overall operating costs were higher in 2011 as we had a period of operations prior to the sale of the reconstructive and spine divisions during the second quarter of 2011. our overall operating costs were lower in 2012 due to our current operations being primarily collection and management of our royalty income earned in connection with the asset purchase agreement with arthrex , as well as continuingto promote our former products sold to arthrex and seek a joint venture partner or buyer for the remaining intellectual property owned by the company .
```    
 Suspicious Activity Report : the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate estimates and judgments , including those described in greater detail below . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . as used in this `` management 's discussion and analysis of financial condition and results of operation , `` except where the context otherwise requires , the term `` we , `` `` us , `` `` our , `` `` tiger x , `` or `` cardo `` refers to the business of tiger x medical , inc. overview tiger x medical , inc. ( `` tiger x `` or the `` company `` ) , formerly known as cardo medical , inc. , previously operated as an orthopedic medical device company specializing in designing , developing and marketing high performance reconstructive joint devices and spinal surgical devices . as discussed below , in january 2011 we entered into an asset purchase agreement to sell substantially all of our assets in the reconstructive division to arthrex . we completed the sale of the reconstructive division assets during the second quarter of 2011. additionally , we completed the sale of substantially all of the assets in the spine division in april 2011. our continuing operations include the collection and management of our royalty income earned in connection with the asset purchase agreement with arthrex , as well as continuing to promote our former products sold to arthrex and seek a joint venture partner or buyer for the remaining intellectual property owned by the company . the company will also be evaluating future investment opportunities and uses for its cash . we are headquartered in los angeles , california . our common stock is quoted on the national association of securities dealers , inc. 's , over-the-counter bulletin board , or the otc bulletin board with a trading symbol of cdom.ob . critical accounting policies and estimates our significant accounting policies are more fully described in the notes to our consolidated financial statements . those material accounting estimates that we believe are the most critical to an investor 's understanding of our financial results and condition are discussed immediately below and are particularly important to the portrayal of our financial position and results of operations and require the application of significant judgment by our management to determine the appropriate assumptions to be used in the determination of certain estimates . use of estimates financial statements prepared in accordance with united states generally accepted accounting principles ( `` u.s. gaap `` ) require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . among other things , management makes estimates relating to allowances for doubtful accounts , net realizable value of assets , share- based payment , and deferred income tax assets . actual results could differ from those estimates . 11 discontinued operations on october 7 , 2010 , the company 's management and board of directors decided to put substantially all of its assets up for sale . the assets determined to be held for sale were inventories , intellectual properties , and property and equipment of its reconstructive products line ( the `` reconstructive division `` ) and spine products line ( the `` spine division `` ) . the company decided to put the assets of its reconstructive and spine divisions up for sale primarily because it did not have sufficient working capital , and was not able to procure such financial resources through equity or debt financing , in order to fully execute a profitable sales strategy . on january 24 , 2011 , the company entered into an asset purchase agreement with arthrex , inc. ( `` arthrex `` ) ( the agreement being the `` arthrex asset purchase agreement `` ) , pursuant to which the company agreed to sell the assets of the reconstructive division to arthrex . the arthrex asset purchase agreement also provides for the company to receive royalty payments equal to 5 % of net sales of the company 's products made by arthrex on a quarterly basis for a term up to and including the 20th anniversary of the closing date . during the years ended december 31 , 2012 and 2011 , the company received total royalty payments of $ 62,000 and $ 12,000 , respectively , from arthrex and reflected this payment as revenue on the accompanying condensed consolidated statements of operations . the company completed the sale of the reconstructive division on june 10 , 2011. the total cash consideration received by the company from arthrex amounted to $ 14,586,000 , which was comprised of $ 9,960,000 plus inventory with a value of $ 2,908,000 and property and equipment with a value of $ 1,718,000. from this amount , $ 1,159,000 was deposited with an escrow agent to be held for twelve months for any potential adjustments to the purchase price relating to future adjustments to the value of the inventory and property and equipment and other unassertedclaims . story_separator_special_tag the total gain on the sale of the reconstructive division assets as of december 31 , 2011 amounted to $ 10,356,000. on april 4 , 2011 , the company entered into and closed an asset purchase agreement with altus partners , llc , a delaware limited liability company ( `` altus `` ) , pursuant to which the company sold substantially all of the assets of the spine division in exchange for cash consideration of $ 3,000,000 ( the `` altus asset purchase agreement `` ) . pursuant to the terms of the altus asset purchase agreement , $ 2,700,000 of the purchase price was paid at the closing and $ 300,000 was deposited into escrow with an escrow agent for a period of 90 days from the closing date ( assuming there are no disputes ) to be used for any adjustments to the closing value of the company 's inventory and property and equipment . in september 2011 , $ 240,000 of the escrow amount was released to altus and $ 60,000 was released to the company to settle the adjustments relating to the closing value of the company 's inventory and property and equipment . the company recorded $ 240,000 as a reduction of the gain on sale during the year ended december 31 , 2011. the total gain on the sale of the spine division assets as of december 31 , 2011 amounted to $ 2,046,000. the total gain associated with the above sales of the assets of the reconstructive and spine divisions amounted to $ 11,846,000 , which is presented net of the income tax expense effect of $ 556,000. during the year ended december 31 , 2012 , the company filed its tax return and received an income tax refund of approximately $ 532,000 relating to the income tax paid on the gain on the sale of the discontinued divisions . as a result , the associated income tax benefit was recorded as a component of the gain on the sale of discontinued reconstructive and spine divisions on the accompanying condensed consolidated statements of operations during the year ended december 31 , 2012. pursuant to the sale transaction with arthrex , the total aggregate amount remaining in escrow accounts as of december 31 , 2011 was $ 900,000 , which is reflected as restricted cash on the accompanying condensed consolidated balance sheets . as of december 31 , 2012 , there were no amounts remaining in the escrow accounts relating to the sales transaction with arthrex or altus . 12 total sales associated with the discontinued reconstructive and spine divisions reported as discontinued operations for the year ended december 31 , 2012 and 2011 , were $ 0 and $ 746,000 , respectively . the total pretax gain ( loss ) associated with the discontinued reconstructive and spine divisions , including the discontinued corporate support for those activities , reported as discontinued operations for the years ended december 31 , 2012 and 2011 were $ 104,000 and ( $ 1,552,000 ) , respectively . the pretax gain associated with discontinued operations during the year ended december 31 , 2012 resulted from the relief of liabilities associated with the discontinued divisions , net of the write off of remaining accounts receivables believed to be uncollectible . the continuing operations reflected are expenses associated with business insurance , legal and accounting fees that the company will continue to incur . revenue recognition we recognize revenue when it is realizable and earned . management considers revenue to be realizable and earned when the following criteria are met : persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered , the seller 's price to the buyer is fixed or determinable , and collectability is reasonably assured . subsequent to the sale of the reconstructive division and the spine division , revenue consists of royalty revenue , which is recorded as the amount becomes known and collectability is reasonably assured . income taxes deferred income tax assets and liabilities are recognized to reflect the estimated future tax effects , calculated at currently effective tax rates , of future deductible or taxable amounts attributable to events that have been recognized on a cumulative basis in the financial statements . a valuation allowance related to a deferred income tax asset is recorded when it is more likely than not that some portion of the deferred income tax asset will not be realized . deferred income tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment . the company recognizes all material tax positions , including all significant uncertain tax positions , in which it is more likely than not that the position will be sustained based on its technical merits and if challenged by the relevant taxing authorities . at each balance sheet date , unresolved uncertain tax positions are reassessed to determine whether subsequent developments require a change in the amount of recognized tax benefit . recent accounting pronouncements there are no recently issued accounting pronouncements or standards updates that we have yet to adopt that are expected to have a material effect on our financial position , results of operations , or cash flows . 13 results of operations and financial condition for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 the following are the consolidated results of our operations for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. as discussed above , our reconstructive division and spine division were discontinued during 2010. replace_table_token_2_th revenues revenues from continuing operations amounted to $ 62,000 for the year ended december 31 , 2012 compared with $ 12,000 for 2011. revenues from continuing operations represented royalties received from arthrex in connection with the arthrex asset purchase agreement . the amounts increased during 2012 due to a full

