of san jose del cabo , mexico , a $ 743,000 decrease in banking network installation and services resulting in reduced network construction revenues in 2008 and offset with an increase of $ 2,020,000 in recurring wireless broadband services with the increased growth attributed to recent wisp acquisitions . for the year ended december 31 , 2008 , the company had a gross profit margin of 39 % , compared to a gross profit margin of 26 % for the prior-year period ended december 31 , 2007. the $ 598,000 increased in gross profit margin percentage is primarily due to net increase sales volume which attributed to margins as follows ; ( i ) approximately $ 919,000 increase in gross margin attributable to the increased wireless customer base and strong margins as result of recent acquisitions ( ii ) offset by approximately $ 187,000 decreased in gross margin due to lower sales expectation in our wireless infrastructure construction , and ( iii ) by $ 134,000 decrease in gross margins for banking network services . the company incurred a net loss of $ 8,162,000 for the year ended december 31 , 2008. the company 's principal components of the net loss for the year ended december 31 , 2008 , included approximately $ 1,776,000 in depreciation and amortization expenses , $ 887,000 of interest expense , $ 306,000 of derivative income , $ 1,744,000 of other general and administrative expense , $ 4,735,000 in employment expenses and $ 1,868,000 in professional services . sales information set forth below is a table presenting summarized sales information for our business segments for the years ended december 31 , 2008 and 2007 : replace_table_token_3_th for the year ended december 31 , 2008 , net sales decreased to $ 5,155,000 from $ 5,569,000 for the year ended december 31 , 2007. the overall decrease of 7 % was primarily attributable to decrease sales in wms of $ 1,691,000 due to lower than expected sales in our wireless infrastructure construction , a decrease in sales of ens of $ 743,000 due to a slow down in banking installations and offset with an increase in sales of wbs of $ 2,020,000 due to increase recurring wireless broadband services growth through asset acquisitions . 23 cost of goods sold the following tables set forth summarized cost of goods sold information for the years ended december 31 , 2008 and 2007 : replace_table_token_4_th replace_table_token_5_th for the year ended december 31 , 2008 , cost of goods sold decrease by $ 1,012,000 , or 24 % , to $ 3,121,000 from $ 4,133,000 as compared to the year ended december 31 , 2007. the decrease of $ 1,012,000 in cost of goods sold is primarily attributable to a decrease of cost of goods sold $ 1,504,000 in wms due to lower than expected sales in wireless infrastructure construction , a decrease of cost of goods sold $ 610,000 in our ens due to slow down in banking installations and offset with an increase of $ 1,102,000 in cost of goods sold in the wbs due to increase recurring wireless broadband services growth through asset acquisitions . operations expenses the following table sets forth summarized operating expense information for the years ended december 31 , 2008 and 2007 : replace_table_token_6_th for the year ended december 31 , 2008 , operating expenses increased by 34 % to $ 9,653,000 , as compared to $ 7,209,000 for the year ended december 31 , 2007. the increases that occurred , as evidenced by the immediately preceding table , are discussed below : · a $ 1,278,000 increase in employment expense , primarily attributable to increased work force to 81 employees from 67 employees from a year ago primarily associated with our recent acquisitions . · a $ 152,000 decrease in professional services primarily related to a decrease in legal expenses ; · a $ 122,000 increase in rent and maintenance primarily attributable to growth of the company ; · a $ 25,000 increase in research and development expense primarily attributable to expense in improving efficiencies of voip data encryption ; · a $ 491,000 increase in depreciation and amortization primarily attributable to growth of the company through recent acquisitions ; and · a $ 680,000 increase in other general and administrative expense . 24 other ( income ) expense , net for the year ended december 31 , 2008 , the increase in other expense is primarily attributable to interest expense , net on debt obligations totaling $ 887,000 and offset with a net derivative income of $ 306,000 as compared to interest expense , net of $ 883,000 and derivative expense of $ 408,000 for the year ended december 31 , 2007. the derivative expense represents the net unrealized ( non-cash ) charge during the year ended december 31 , 2008 and 2007 , in the fair value of our derivative instrument liabilities related to warrants and embedded derivatives in our debt instruments that have been bifurcated and accounted for separately . net loss for the year ended december 31 , 2008 , our net loss was $ 8,162,000 compared to a loss of $ 7,067,000 for the year ended december 31 , 2007. the increase in the loss for the year ended december 31 , 2008 , as compared to the year ended december 31 , 2007 is primarily attributable to increase in employment , depreciation and amortization and general and administrative . story_separator_special_tag critical accounting policies and estimates property and equipment property and equipment are stated at cost less accumulated depreciation . major renewals and improvements are capitalized ; minor replacements , maintenance and repairs are charged to current operations . depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amount . no impairment losses have been recorded since inception . long-lived assets we review our long-lived assets , to include intangible assets subject to amortization , for recoverability whenever events or changes in circumstances indicate that the carrying amount of such long-lived asset or group of long-lived assets ( collectively referred to as `` the asset `` ) may not be recoverable . such circumstances include , but are not limited to : · a significant decrease in the market price of the asset ; · a significant change in the extent or manner in which the asset is being used ; · a significant change in the business climate that could affect the value of the asset ; · a current period loss combined with projection of continuing loss associated with use of the asset ; · a current expectation that , more likely than not , the asset will be sold or otherwise disposed of before the end of its previously estimated useful life ; we continually evaluate whether such events and circumstances have occurred . when such events or circumstances exist , the recoverability of the asset 's carrying value shall be determined by estimating the undiscounted future cash flows ( cash inflows less associated cash outflows ) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset . to date , no such impairment has occurred . to the extent such events or circumstances occur that could affect the recoverability of our long-lived assets , we may incur charges for impairment in the future . 29 derivative instruments in connection with the sale of debt or equity instruments , the company may sell options or warrants to purchase our common stock . in certain circumstances , these options or warrants may be classified as derivative liabilities , rather than as equity . additionally , the debt or equity instruments may contain embedded derivative instruments , such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability . the company 's derivative instrument liabilities are re-valued at the end of each reporting period , with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur . for options , warrants and bifurcated embedded derivative features that are accounted for as derivative instrument liabilities , the company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques . the valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return , our current common stock price and expected dividend yield , and the expected volatility of our common stock price over the life of the option . because of the limited trading history for our common stock , the company estimates the future volatility of its common stock price based on not only the history of its stock price but also the experience of other entities considered comparable to the company . recent accounting pronouncements in december 2007 , the fasb issued sfas no . 141r , business combinations . sfas 141r establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquiree . sfas no . 141r also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statement to evaluate the nature and financial effects of the business combination . sfas 141r is effective for financial statements issued for fiscal years beginning after december 15 , 2008. we expect sfas no . 141r will have an impact on our consolidated financial statements when effective , but the nature and magnitude of the specific effects will depend upon the nature , terms and size of the acquisitions we consummate after the effective date . we are still assessing the impact of this standard on our future consolidated financial statements . in july 2006 , the fasb issued fasb interpretation ( `` fin `` ) no . 48 accounting for uncertainly in income taxes - an interpretation of fasb statement no . 109. fin 48 prescribes detailed guidance for the financial statement recognition , measurement , and disclosure of uncertain tax positions recognized in an enterprise 's financial statements in accordance with sfas no . 109 , accounting for income taxes . tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of fin 48 and in subsequent periods . fin 48 will be effective for fiscal years beginning after december 15 , 2006 , and the provisions of fin 48 will be applied to all positions upon the adoption of the interpretation . the cumulative effect of this applying the provisions of this interpretation will be reported as an adjustment to the opening balance of retained earnings for that fiscal year . management is currently evaluating the impact of fin 48 on the financial statements but does not believe that its adoption will have a material effect on the companies ' financial position , results of

cash flows the company 's operating activities increased net cash used by operating activities to $ 4,048,000 in the year ended december 31 , 2008 , compared to net cash used of $ 2,739,000 in the year ended december 31 , 2007. the increase in net cash used by operating activities was primarily attributable to fund an increase in the company 's net operating loss $ 8,162,000 , net of $ 4,624,000 non-cash charges combined with derivative income $ 306,000 to equal net non-cash charge of $ 4,318,000 , combine together with $ 204,000 of cash used by fluctuations in working capital requirements consisting of the combination of accounts receivable , inventory , prepaid expenses , accounts payable , accrued expenses , cost and profit in excess of billings , deferred liability lease and deferred revenue . the company 's investing activities used net cash of $ 974,000 in the year ended december 31 , 2008 , compared to use of net cash of $ 729,000 in the year ended december 31 , 2007. the increase in investing activities is primarily growing as a result wireless capabilities through asset acquisition and expansion of our infrastructure in texas , new mexico and louisiana .


 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 the company 's operating activities increased net cash used by operating activities to $ 4,048,000 in the year ended december 31 , 2008 , compared to net cash used of $ 2,739,000 in the year ended december 31 , 2007. the increase in net cash used by operating activities was primarily attributable to fund an increase in the company 's net operating loss $ 8,162,000 , net of $ 4,624,000 non-cash charges combined with derivative income $ 306,000 to equal net non-cash charge of $ 4,318,000 , combine together with $ 204,000 of cash used by fluctuations in working capital requirements consisting of the combination of accounts receivable , inventory , prepaid expenses , accounts payable , accrued expenses , cost and profit in excess of billings , deferred liability lease and deferred revenue . the company 's investing activities used net cash of $ 974,000 in the year ended december 31 , 2008 , compared to use of net cash of $ 729,000 in the year ended december 31 , 2007. the increase in investing activities is primarily growing as a result wireless capabilities through asset acquisition and expansion of our infrastructure in texas , new mexico and louisiana .
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 Suspicious Activity Report : of san jose del cabo , mexico , a $ 743,000 decrease in banking network installation and services resulting in reduced network construction revenues in 2008 and offset with an increase of $ 2,020,000 in recurring wireless broadband services with the increased growth attributed to recent wisp acquisitions . for the year ended december 31 , 2008 , the company had a gross profit margin of 39 % , compared to a gross profit margin of 26 % for the prior-year period ended december 31 , 2007. the $ 598,000 increased in gross profit margin percentage is primarily due to net increase sales volume which attributed to margins as follows ; ( i ) approximately $ 919,000 increase in gross margin attributable to the increased wireless customer base and strong margins as result of recent acquisitions ( ii ) offset by approximately $ 187,000 decreased in gross margin due to lower sales expectation in our wireless infrastructure construction , and ( iii ) by $ 134,000 decrease in gross margins for banking network services . the company incurred a net loss of $ 8,162,000 for the year ended december 31 , 2008. the company 's principal components of the net loss for the year ended december 31 , 2008 , included approximately $ 1,776,000 in depreciation and amortization expenses , $ 887,000 of interest expense , $ 306,000 of derivative income , $ 1,744,000 of other general and administrative expense , $ 4,735,000 in employment expenses and $ 1,868,000 in professional services . sales information set forth below is a table presenting summarized sales information for our business segments for the years ended december 31 , 2008 and 2007 : replace_table_token_3_th for the year ended december 31 , 2008 , net sales decreased to $ 5,155,000 from $ 5,569,000 for the year ended december 31 , 2007. the overall decrease of 7 % was primarily attributable to decrease sales in wms of $ 1,691,000 due to lower than expected sales in our wireless infrastructure construction , a decrease in sales of ens of $ 743,000 due to a slow down in banking installations and offset with an increase in sales of wbs of $ 2,020,000 due to increase recurring wireless broadband services growth through asset acquisitions . 23 cost of goods sold the following tables set forth summarized cost of goods sold information for the years ended december 31 , 2008 and 2007 : replace_table_token_4_th replace_table_token_5_th for the year ended december 31 , 2008 , cost of goods sold decrease by $ 1,012,000 , or 24 % , to $ 3,121,000 from $ 4,133,000 as compared to the year ended december 31 , 2007. the decrease of $ 1,012,000 in cost of goods sold is primarily attributable to a decrease of cost of goods sold $ 1,504,000 in wms due to lower than expected sales in wireless infrastructure construction , a decrease of cost of goods sold $ 610,000 in our ens due to slow down in banking installations and offset with an increase of $ 1,102,000 in cost of goods sold in the wbs due to increase recurring wireless broadband services growth through asset acquisitions . operations expenses the following table sets forth summarized operating expense information for the years ended december 31 , 2008 and 2007 : replace_table_token_6_th for the year ended december 31 , 2008 , operating expenses increased by 34 % to $ 9,653,000 , as compared to $ 7,209,000 for the year ended december 31 , 2007. the increases that occurred , as evidenced by the immediately preceding table , are discussed below : · a $ 1,278,000 increase in employment expense , primarily attributable to increased work force to 81 employees from 67 employees from a year ago primarily associated with our recent acquisitions . · a $ 152,000 decrease in professional services primarily related to a decrease in legal expenses ; · a $ 122,000 increase in rent and maintenance primarily attributable to growth of the company ; · a $ 25,000 increase in research and development expense primarily attributable to expense in improving efficiencies of voip data encryption ; · a $ 491,000 increase in depreciation and amortization primarily attributable to growth of the company through recent acquisitions ; and · a $ 680,000 increase in other general and administrative expense . 24 other ( income ) expense , net for the year ended december 31 , 2008 , the increase in other expense is primarily attributable to interest expense , net on debt obligations totaling $ 887,000 and offset with a net derivative income of $ 306,000 as compared to interest expense , net of $ 883,000 and derivative expense of $ 408,000 for the year ended december 31 , 2007. the derivative expense represents the net unrealized ( non-cash ) charge during the year ended december 31 , 2008 and 2007 , in the fair value of our derivative instrument liabilities related to warrants and embedded derivatives in our debt instruments that have been bifurcated and accounted for separately . net loss for the year ended december 31 , 2008 , our net loss was $ 8,162,000 compared to a loss of $ 7,067,000 for the year ended december 31 , 2007. the increase in the loss for the year ended december 31 , 2008 , as compared to the year ended december 31 , 2007 is primarily attributable to increase in employment , depreciation and amortization and general and administrative . story_separator_special_tag critical accounting policies and estimates property and equipment property and equipment are stated at cost less accumulated depreciation . major renewals and improvements are capitalized ; minor replacements , maintenance and repairs are charged to current operations . depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amount . no impairment losses have been recorded since inception . long-lived assets we review our long-lived assets , to include intangible assets subject to amortization , for recoverability whenever events or changes in circumstances indicate that the carrying amount of such long-lived asset or group of long-lived assets ( collectively referred to as `` the asset `` ) may not be recoverable . such circumstances include , but are not limited to : · a significant decrease in the market price of the asset ; · a significant change in the extent or manner in which the asset is being used ; · a significant change in the business climate that could affect the value of the asset ; · a current period loss combined with projection of continuing loss associated with use of the asset ; · a current expectation that , more likely than not , the asset will be sold or otherwise disposed of before the end of its previously estimated useful life ; we continually evaluate whether such events and circumstances have occurred . when such events or circumstances exist , the recoverability of the asset 's carrying value shall be determined by estimating the undiscounted future cash flows ( cash inflows less associated cash outflows ) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset . to date , no such impairment has occurred . to the extent such events or circumstances occur that could affect the recoverability of our long-lived assets , we may incur charges for impairment in the future . 29 derivative instruments in connection with the sale of debt or equity instruments , the company may sell options or warrants to purchase our common stock . in certain circumstances , these options or warrants may be classified as derivative liabilities , rather than as equity . additionally , the debt or equity instruments may contain embedded derivative instruments , such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability . the company 's derivative instrument liabilities are re-valued at the end of each reporting period , with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur . for options , warrants and bifurcated embedded derivative features that are accounted for as derivative instrument liabilities , the company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques . the valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return , our current common stock price and expected dividend yield , and the expected volatility of our common stock price over the life of the option . because of the limited trading history for our common stock , the company estimates the future volatility of its common stock price based on not only the history of its stock price but also the experience of other entities considered comparable to the company . recent accounting pronouncements in december 2007 , the fasb issued sfas no . 141r , business combinations . sfas 141r establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquiree . sfas no . 141r also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statement to evaluate the nature and financial effects of the business combination . sfas 141r is effective for financial statements issued for fiscal years beginning after december 15 , 2008. we expect sfas no . 141r will have an impact on our consolidated financial statements when effective , but the nature and magnitude of the specific effects will depend upon the nature , terms and size of the acquisitions we consummate after the effective date . we are still assessing the impact of this standard on our future consolidated financial statements . in july 2006 , the fasb issued fasb interpretation ( `` fin `` ) no . 48 accounting for uncertainly in income taxes - an interpretation of fasb statement no . 109. fin 48 prescribes detailed guidance for the financial statement recognition , measurement , and disclosure of uncertain tax positions recognized in an enterprise 's financial statements in accordance with sfas no . 109 , accounting for income taxes . tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of fin 48 and in subsequent periods . fin 48 will be effective for fiscal years beginning after december 15 , 2006 , and the provisions of fin 48 will be applied to all positions upon the adoption of the interpretation . the cumulative effect of this applying the provisions of this interpretation will be reported as an adjustment to the opening balance of retained earnings for that fiscal year . management is currently evaluating the impact of fin 48 on the financial statements but does not believe that its adoption will have a material effect on the companies ' financial position , results of

