the company 's marketable securities and certificates of deposit are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income ( loss ) , a component of stockholders ' equity . realized gains or losses on mutual funds are determined using the average cost method , while realized gains or losses on government securities and bonds are determined using the specific-identification method . realized gains or losses on the company 's marketable securities are insignificant for the years ended december 31 , 2011 and 2010. the company evaluates its investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value had been below cost basis , the financial condition of the issuer and the company 's ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery of market value . the company would record an impairment charge to the extent that the cost of the available-for-sale securities or certificates of deposit exceeds the estimated fair value of the securities and the decline in value is determined to be other-than-temporary . during 2011 the company did not record an impairment charge regarding its investment in marketable securities or certificates of deposit because , based on management 's evaluation of the circumstances , management believes that the decline in fair value below the cost of certain of the company 's marketable securities is temporary . 14 revenue recognition the company recognizes revenue when products are shipped , title and risk of loss pass to customers , persuasive evidence of a sales arrangement exists , and collections are reasonably assured . any allowances for returns are taken as a reduction in sales within the same period the revenue is recognized . such allowances are based on historical experience as well as other factors that , in the company 's judgment , could reasonably be expected to cause sales returns or doubtful accounts to differ from historical experience . accounts receivable allowance the company performs ongoing credit evaluations of the company 's customers and adjusts credit limits , as determined by review of current credit information . the company continuously monitors collection and payments from customers and maintains an allowance for doubtful accounts based upon historical experience , the company 's anticipation of uncollectible accounts receivable and any specific customer collection issues that have been identified . while the company 's credit losses have historically been low and within expectations , the company may not continue to experience the same credit loss rates that have historically been attained . the receivables are highly concentrated in a relatively small number of customers . therefore , a significant change in the liquidity , financial position , or willingness to pay timely , or at all , of any one of the company 's significant customers would have a significant impact on the company 's results of operations and cash flows . inventory valuation allowance in conjunction with the company 's ongoing analysis of inventory valuation , management constantly monitors projected demand on a product-by-product basis . based on these projections , management evaluates the levels of write-downs required for inventory on hand and inventory on order from contract manufacturers . although the company believes that it has been reasonably successful in identifying write-downs in a timely manner , sudden changes in buying patterns from customers , either due to a shift in product interest and or a complete pull back from their expected order levels , may result in the recognition of larger than anticipated write-downs . 15 results of operations year ended december 31 , 2011 compared with the year ended december 31 , 2010 net sales net sales in 2011 increased by $ 615,438 ( 4.5 % ) compared with 2010. this increase was primarily attributable to the following : ( a ) personal care products : sales of the company 's personal care products , including cosmetic ingredients , increased by $ 845,548 ( 10.1 % ) for the year ended december 31 , 2011 when compared with 2010. the increase was attributable primarily to an increase in sales to asi , the company 's largest marketing partner . sales to the company 's marketing partner in the uk also increased in 2011. sales to the company 's three other marketing partners in europe and its marketing partner in south korea all experienced a decrease in 2011. the company believes that the increase in sales of its personal care products was the result of improving economic conditions in asia and north america , which resulted in new consumer product introductions utilizing its products . the overall increase in sales was almost entirely attributable to an increase in sales of the company 's extensive line of lubrajel® products . the company 's sales to asi increased by 21.5 % in 2011 compared with 2010 , which the company believes is partially due to normal fluctuations in asi 's buying patterns but is also attributable to new consumer product introductions and new customers for the company 's products . the company had combined sales decreases of $ 338,854 ( 15.6 % ) in 2011 compared with 2010 from its other five marketing partners ( four of whom are in western europe ) . the company attributes this decrease to a decline in the economic conditions in western europe in 2011 , which resulted in a decrease in demand for personal care and cosmetic ingredients . story_separator_special_tag overall , sales of the company 's lubrajel products for both personal care and medical uses increased by $ 1,042,529 ( 9.8 % ) in 2011 compared with 2010. the unit volume of all lubrajel products sold , both for personal care and medical uses , increased by approximately 8.7 % in 2011 compared with 2010 . ( b ) pharmaceuticals : sales of the company 's two pharmaceutical products , renacidin and clorpactin , decreased by $ 400,523 ( 14.8 % ) for the year ended december 31 , 2011 compared with 2010. renacidin accounted for approximately 13 % of the company 's sales in 2011 compared with 17 % in 2010. the decrease in sales of the company 's pharmaceutical products in 2011 was due to a decrease in sales of renacidin . this product has been manufactured for the company under a long-term contract with a major u.s. drug company that experienced regulatory problems in 2010 at its facility that manufactures renacidin , which were unrelated to the production of renacidin . the supplier 's problems resulted in a temporary suspension of renacidin production in august 2010. as a result , the company 's inventory of this product was significantly reduced , forcing the company to allocate its supply by reducing sales to the company 's customers from november 2010 until may 2011. this resulted in approximately a 60 % reduction in renacidin sales each month beginning in november 2010 until the company ran out of product completely in the beginning of february 2011. the company 's supplier resumed production of renacidin in the first quarter of 2011 , and sales of the product by the company resumed in may 2011. the reduction in sales of the company 's pharmaceutical products was partially offset by a price increase that went into effect in june 2011 . 16 ( c ) medical ( non-pharmaceutical ) products : sales of the company 's non-pharmaceutical medical products increased $ 285,610 ( 10.9 % ) when compared with 2010. the company believes that the increase was partially due to customer buying patterns , but was also attributable to new customers and an increase in volume to existing customers . ( d ) industrial and other products : sales of the company 's industrial products , as well as other miscellaneous products , decreased by $ 35,383 ( 20.9 % ) when compared with 2010. sales were negatively impacted by an increase of $ 95,964 ( 64.5 % ) in sales discounts and allowance reserves . the increase in sales discounts and allowances was mainly due to increases in the allowance for distribution fees . cost of sales cost of sales as a percentage of net sales in 2011 increased to 39.4 % from 38.3 % in the prior year . the increase was primarily the result of increases in raw material costs , particularly the company 's primary raw material , as well as an increase in direct labor costs . operating expenses operating expenses decreased by $ 14,605 ( 0.6 % ) in 2011 compared with the prior year . this decrease was due to a reduction in legal and accounting fees . portions of the company 's operating expenses are directly attributable to the research and development that the company performs . in 2011 and 2010 , the company incurred approximately $ 637,000 and $ 596,000 , respectively , in research and development expenses , which are included in operating expenses . the increase in r & d costs incurred in 2011 was primarily attributable to increases in payroll costs . no portion of the research and development expenses was directly paid by the company 's customers . pension plan termination on july 13 , 2010 , the company terminated its non-contributory defined benefit pension plan ( `` db plan `` ) . the termination resulted in the company recognizing in 2010 a one-time non-cash expense of $ 518,296 , offset by a $ 179,641 tax benefit associated with recognizing unamortized actuarial losses . in addition , in 2010 the company provided for a cash contribution of $ 337,378 , offset by a $ 116,900 tax benefit , in order to fully fund the db plan . the recognition of the non-cash and cash contributions resulted in a before-tax charge of $ 847,744 , and an after-tax charge of $ 559,133 ( $ 0.12 per share ) for the year ended december 31 , 2010. since the non-cash expense had previously been provided for as a charge to other comprehensive income , the net effect of the termination on stockholders ' equity in 2010 was a decrease of $ 220,478. other income ( expense ) other income ( net ) increased $ 280,299 ( 61.5 % ) for the year ended december 31 , 2011 when compared with 2010. the increase was mainly attributable to $ 385,182 in income the company received from the settlement of a claim for damages between the company and one of its suppliers . the claim resulted from the temporary suspension of production of the company 's renacidin by its supplier at the end of 2010 due to regulatory issues at the supplier 's facility . production did not resume until may 2011. as a result , the company determined that it lost approximately $ 390,000 in gross profit that would have been generated from sales of the product if production had not been curtailed . the company and its supplier entered into a settlement agreement whereby the company would be reimbursed for these losses . the miscellaneous income of $ 385,182 represents the amount that was paid to the company by the supplier during the third quarter of 2011. the company expects to receive the remaining amount ( approximately $ 4,800 ) in the second quarter of 2012. further information on this matter can be found in footnote `` g `` and the company 's filing on form 10-k for 2010 . 17

liquidity and capital resources working capital increased from $ 11,765,995 at december 31 , 2010 to $ 12,895,448 at december 31 , 2011 , an increase of $ 1,129,453 ( 9.6 % ) . the current ratio increased to 13.0 to 1 at december 31 , 2011 from 12.5 to 1 at december 31 , 2010. the increases in working capital and the current ratio were primarily the result of increases in marketable securities , accounts receivable , and inventory . accounts receivable as of december 31 , 2011 increased by $ 562,729 ( net of allowance for doubtful accounts ) as compared with 2010. the average period of time that an account receivable was outstanding was approximately 35 days in 2011 and 33 days in 2010. the company has a bad debt reserve of $ 18,000 , and believes that the balance of its accounts receivable is fully collectable . the company does not maintain a line of credit with a financial institution because the company has no foreseeable need for a line of credit , and therefore management believes that the cost of maintaining a line of credit can not be justified , especially considering the strong financial condition of the company . the company generated cash from operations of $ 4,437,129 in 2011 compared with $ 4,093,318 in 2010. the increase in 2011 was primarily due to a $ 916,838 increase in net income , a $ 557,636 increase in accounts receivable , a $ 146,046 increase in inventory , and a $ 192,146 increase in accounts payable .


 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 working capital increased from $ 11,765,995 at december 31 , 2010 to $ 12,895,448 at december 31 , 2011 , an increase of $ 1,129,453 ( 9.6 % ) . the current ratio increased to 13.0 to 1 at december 31 , 2011 from 12.5 to 1 at december 31 , 2010. the increases in working capital and the current ratio were primarily the result of increases in marketable securities , accounts receivable , and inventory . accounts receivable as of december 31 , 2011 increased by $ 562,729 ( net of allowance for doubtful accounts ) as compared with 2010. the average period of time that an account receivable was outstanding was approximately 35 days in 2011 and 33 days in 2010. the company has a bad debt reserve of $ 18,000 , and believes that the balance of its accounts receivable is fully collectable . the company does not maintain a line of credit with a financial institution because the company has no foreseeable need for a line of credit , and therefore management believes that the cost of maintaining a line of credit can not be justified , especially considering the strong financial condition of the company . the company generated cash from operations of $ 4,437,129 in 2011 compared with $ 4,093,318 in 2010. the increase in 2011 was primarily due to a $ 916,838 increase in net income , a $ 557,636 increase in accounts receivable , a $ 146,046 increase in inventory , and a $ 192,146 increase in accounts payable .
```    
 Suspicious Activity Report : the company 's marketable securities and certificates of deposit are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income ( loss ) , a component of stockholders ' equity . realized gains or losses on mutual funds are determined using the average cost method , while realized gains or losses on government securities and bonds are determined using the specific-identification method . realized gains or losses on the company 's marketable securities are insignificant for the years ended december 31 , 2011 and 2010. the company evaluates its investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value had been below cost basis , the financial condition of the issuer and the company 's ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery of market value . the company would record an impairment charge to the extent that the cost of the available-for-sale securities or certificates of deposit exceeds the estimated fair value of the securities and the decline in value is determined to be other-than-temporary . during 2011 the company did not record an impairment charge regarding its investment in marketable securities or certificates of deposit because , based on management 's evaluation of the circumstances , management believes that the decline in fair value below the cost of certain of the company 's marketable securities is temporary . 14 revenue recognition the company recognizes revenue when products are shipped , title and risk of loss pass to customers , persuasive evidence of a sales arrangement exists , and collections are reasonably assured . any allowances for returns are taken as a reduction in sales within the same period the revenue is recognized . such allowances are based on historical experience as well as other factors that , in the company 's judgment , could reasonably be expected to cause sales returns or doubtful accounts to differ from historical experience . accounts receivable allowance the company performs ongoing credit evaluations of the company 's customers and adjusts credit limits , as determined by review of current credit information . the company continuously monitors collection and payments from customers and maintains an allowance for doubtful accounts based upon historical experience , the company 's anticipation of uncollectible accounts receivable and any specific customer collection issues that have been identified . while the company 's credit losses have historically been low and within expectations , the company may not continue to experience the same credit loss rates that have historically been attained . the receivables are highly concentrated in a relatively small number of customers . therefore , a significant change in the liquidity , financial position , or willingness to pay timely , or at all , of any one of the company 's significant customers would have a significant impact on the company 's results of operations and cash flows . inventory valuation allowance in conjunction with the company 's ongoing analysis of inventory valuation , management constantly monitors projected demand on a product-by-product basis . based on these projections , management evaluates the levels of write-downs required for inventory on hand and inventory on order from contract manufacturers . although the company believes that it has been reasonably successful in identifying write-downs in a timely manner , sudden changes in buying patterns from customers , either due to a shift in product interest and or a complete pull back from their expected order levels , may result in the recognition of larger than anticipated write-downs . 15 results of operations year ended december 31 , 2011 compared with the year ended december 31 , 2010 net sales net sales in 2011 increased by $ 615,438 ( 4.5 % ) compared with 2010. this increase was primarily attributable to the following : ( a ) personal care products : sales of the company 's personal care products , including cosmetic ingredients , increased by $ 845,548 ( 10.1 % ) for the year ended december 31 , 2011 when compared with 2010. the increase was attributable primarily to an increase in sales to asi , the company 's largest marketing partner . sales to the company 's marketing partner in the uk also increased in 2011. sales to the company 's three other marketing partners in europe and its marketing partner in south korea all experienced a decrease in 2011. the company believes that the increase in sales of its personal care products was the result of improving economic conditions in asia and north america , which resulted in new consumer product introductions utilizing its products . the overall increase in sales was almost entirely attributable to an increase in sales of the company 's extensive line of lubrajel® products . the company 's sales to asi increased by 21.5 % in 2011 compared with 2010 , which the company believes is partially due to normal fluctuations in asi 's buying patterns but is also attributable to new consumer product introductions and new customers for the company 's products . the company had combined sales decreases of $ 338,854 ( 15.6 % ) in 2011 compared with 2010 from its other five marketing partners ( four of whom are in western europe ) . the company attributes this decrease to a decline in the economic conditions in western europe in 2011 , which resulted in a decrease in demand for personal care and cosmetic ingredients . story_separator_special_tag overall , sales of the company 's lubrajel products for both personal care and medical uses increased by $ 1,042,529 ( 9.8 % ) in 2011 compared with 2010. the unit volume of all lubrajel products sold , both for personal care and medical uses , increased by approximately 8.7 % in 2011 compared with 2010 . ( b ) pharmaceuticals : sales of the company 's two pharmaceutical products , renacidin and clorpactin , decreased by $ 400,523 ( 14.8 % ) for the year ended december 31 , 2011 compared with 2010. renacidin accounted for approximately 13 % of the company 's sales in 2011 compared with 17 % in 2010. the decrease in sales of the company 's pharmaceutical products in 2011 was due to a decrease in sales of renacidin . this product has been manufactured for the company under a long-term contract with a major u.s. drug company that experienced regulatory problems in 2010 at its facility that manufactures renacidin , which were unrelated to the production of renacidin . the supplier 's problems resulted in a temporary suspension of renacidin production in august 2010. as a result , the company 's inventory of this product was significantly reduced , forcing the company to allocate its supply by reducing sales to the company 's customers from november 2010 until may 2011. this resulted in approximately a 60 % reduction in renacidin sales each month beginning in november 2010 until the company ran out of product completely in the beginning of february 2011. the company 's supplier resumed production of renacidin in the first quarter of 2011 , and sales of the product by the company resumed in may 2011. the reduction in sales of the company 's pharmaceutical products was partially offset by a price increase that went into effect in june 2011 . 16 ( c ) medical ( non-pharmaceutical ) products : sales of the company 's non-pharmaceutical medical products increased $ 285,610 ( 10.9 % ) when compared with 2010. the company believes that the increase was partially due to customer buying patterns , but was also attributable to new customers and an increase in volume to existing customers . ( d ) industrial and other products : sales of the company 's industrial products , as well as other miscellaneous products , decreased by $ 35,383 ( 20.9 % ) when compared with 2010. sales were negatively impacted by an increase of $ 95,964 ( 64.5 % ) in sales discounts and allowance reserves . the increase in sales discounts and allowances was mainly due to increases in the allowance for distribution fees . cost of sales cost of sales as a percentage of net sales in 2011 increased to 39.4 % from 38.3 % in the prior year . the increase was primarily the result of increases in raw material costs , particularly the company 's primary raw material , as well as an increase in direct labor costs . operating expenses operating expenses decreased by $ 14,605 ( 0.6 % ) in 2011 compared with the prior year . this decrease was due to a reduction in legal and accounting fees . portions of the company 's operating expenses are directly attributable to the research and development that the company performs . in 2011 and 2010 , the company incurred approximately $ 637,000 and $ 596,000 , respectively , in research and development expenses , which are included in operating expenses . the increase in r & d costs incurred in 2011 was primarily attributable to increases in payroll costs . no portion of the research and development expenses was directly paid by the company 's customers . pension plan termination on july 13 , 2010 , the company terminated its non-contributory defined benefit pension plan ( `` db plan `` ) . the termination resulted in the company recognizing in 2010 a one-time non-cash expense of $ 518,296 , offset by a $ 179,641 tax benefit associated with recognizing unamortized actuarial losses . in addition , in 2010 the company provided for a cash contribution of $ 337,378 , offset by a $ 116,900 tax benefit , in order to fully fund the db plan . the recognition of the non-cash and cash contributions resulted in a before-tax charge of $ 847,744 , and an after-tax charge of $ 559,133 ( $ 0.12 per share ) for the year ended december 31 , 2010. since the non-cash expense had previously been provided for as a charge to other comprehensive income , the net effect of the termination on stockholders ' equity in 2010 was a decrease of $ 220,478. other income ( expense ) other income ( net ) increased $ 280,299 ( 61.5 % ) for the year ended december 31 , 2011 when compared with 2010. the increase was mainly attributable to $ 385,182 in income the company received from the settlement of a claim for damages between the company and one of its suppliers . the claim resulted from the temporary suspension of production of the company 's renacidin by its supplier at the end of 2010 due to regulatory issues at the supplier 's facility . production did not resume until may 2011. as a result , the company determined that it lost approximately $ 390,000 in gross profit that would have been generated from sales of the product if production had not been curtailed . the company and its supplier entered into a settlement agreement whereby the company would be reimbursed for these losses . the miscellaneous income of $ 385,182 represents the amount that was paid to the company by the supplier during the third quarter of 2011. the company expects to receive the remaining amount ( approximately $ 4,800 ) in the second quarter of 2012. further information on this matter can be found in footnote `` g `` and the company 's filing on form 10-k for 2010 . 17

