if our arrangements include customer acceptance provisions , revenue is recognized upon obtaining the signed acceptance certificate from the customer , unless we can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance . in those instances where revenue is recognized prior to obtaining the signed acceptance certificate , we use successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement . we also consider historical acceptance experience with the customer , as well as the payment terms specified in the arrangement , when revenue is recognized prior to obtaining the signed acceptance certificate . when collectability is not reasonably assured , revenue is recognized when cash is collected . we make certain sales to product distributors . these customers are given certain privileges to return a portion of inventory . return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time . we recognize revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors , unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment . in those instances when revenue is recognized upon shipment to distributors , we use historical rates of return from the distributors to provide for estimated product returns . we accrue for warranty costs , sales returns and other allowances at the time of shipment based on historical experience and expected future costs . we derive revenue primarily from stand-alone sales of our products . in certain cases , our products are sold along with services , which include education , training , installation , and or extended warranty services . as such , some of our sales have multiple deliverables . our products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as our arrangements typically do not have any significant performance , cancellation , termination and refund type provisions . products are typically considered delivered upon shipment . revenue from services is recognized ratably over the period during which the services are to be performed . for multiple deliverable revenue arrangements , we allocate revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met . the selling price of a deliverable is based on a hierarchy and if we are unable to establish vendor-specific objective evidence of selling price ( vsoe ) we look to third-party evidence of selling price ( tpe ) and if no such data is available , we use a best estimated selling price ( bsp ) . in most instances , particularly as it relates to products , we are not able to establish vsoe for all deliverables in an arrangement with multiple elements . this may be due to infrequently selling each element separately , not pricing products within a narrow range , or only having a limited sales history . when vsoe can not be established , we attempt to establish the selling price of each element based on tpe . generally , our marketing strategy differs from that of our peers and our offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality can not be obtained . furthermore , we are unable to reliably determine what similar competitor products ' selling prices are on a stand-alone basis . therefore , we are typically not able to determine tpe for our products . when we are unable to establish selling price using vsoe or tpe , we use bsp . the objective of bsp is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis . the bsp of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors , including but not limited to our gross margin objectives and pricing practices plus customer and market specific considerations . we have established tpe for our training , education and installation services . these service arrangements are typically short term in nature and are largely completed shortly after delivery of the product . tpe is determined based on competitor prices for similar deliverables when sold separately . training and education services are based on a daily rate per person and vary according to the type of class offered . installation services are based on daily rate per person and vary according to the complexity of the products being installed . 25 extended warranty services are priced based on the type of product and are sold in one to five year durations . extended warranty services include the right to warranty coverage beyond the standard warranty period . in substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services , we have used and intend to continue using vsoe to determine the selling price for the services . we determine vsoe based on our normal pricing practices for these specific services when sold separately . allowances for sales returns and doubtful accounts we record an allowance for sales returns for estimated future product returns related to current period product revenue . the allowance for sales returns is recorded as a reduction of revenue and an allowance against our accounts receivable . we base our allowance for sales returns on periodic assessments of historical trends in product return rates and current approved returned products . if the actual future returns were to deviate from the historical data on which the reserve had been established , our future revenue could be adversely affected . story_separator_special_tag also , depreciation expense decreased $ 0.5 million as a result of the fixed asset impairment recorded in the fourth quarter of 2011. these decreases were partially offset by increases of $ 0.6 million in allocated facility costs and $ 0.5 million in bad debt expense . in addition , a tax dispute that was settled in 2011 resulted in the reversal of an accrual of $ 0.4 million in 2011. there was no similar transaction in 2012. impairment of fixed assets impairment of fixed assets was $ 0.1 million for 2012 compared to $ 4.2 million for 2011 , as discussed in note 3 of the consolidated financial statements . interest expense interest expense for 2012 increased to $ 0.1 million compared to an immaterial balance in 2011 , primarily due to a settlement of a tax dispute in 2011 , resulting in the reversal of an accrual which offset interest expense by $ 0.1 million in 2011. our outstanding debt balances remained constant and interest rates remained low during 2012. other income ( expense ) other income ( expense ) for 2012 decreased by $ 0.1 million to an immaterial balance compared to $ 0.1 million in 2011 due to a foreign exchange loss in the current period . income tax provision during the years ended december 31 , 2012 and 2011 , we recorded an income tax provision of $ 0.1 million related to foreign and state taxes . no material provision or benefit for income taxes was recorded in 2012 and 2011 , due to our recurring operating losses and the significant uncertainty regarding the realization of our net deferred tax assets , against which we have continued to record a full valuation allowance . other performance measures in managing our business and assessing our financial performance , we supplement the information provided by our gaap results with adjusted earnings before stock-based compensation , interest , taxes , and depreciation , or adjusted ebitda , a non-gaap financial measure . we define adjusted ebitda as net income ( loss ) plus ( i ) interest expense , ( ii ) provision ( benefit ) for taxes , ( iii ) depreciation and amortization , ( iv ) non-cash equity-based compensation expense , and ( v ) material non-recurring non-cash transactions , such as a gain ( loss ) on sale of assets or impairment of fixed assets . we believe that the presentation of adjusted ebitda enhances the usefulness of our financial information by presenting a measure that management uses internally to monitor and evaluate our operating performance and to evaluate the effectiveness of our business strategies . we believe adjusted ebitda also assists investors and analysts in comparing our performance across reporting periods on a consistent basis because it excludes the impact of items that we do not believe reflect our core operating performance . adjusted ebitda has limitations as an analytical tool . some of these limitations are : adjusted ebitda does not reflect our cash expenditures , or future requirements for capital expenditures or contractual requirements ; adjusted ebitda does not reflect changes in , or cash requirements for , our working capital needs ; adjusted ebitda does not reflect the interest expense , or the cash requirements necessary to service interest or principal payments , on our debts ; although depreciation and amortization are non-cash charges , the assets being depreciated and amortized will often have to be replaced in the future , and adjusted ebitda does not reflect any cash requirements for such replacements ; non-cash compensation is and will remain a key element of our overall long-term incentive compensation package , although we exclude it as an expense when evaluating our ongoing operating performance for a particular period ; and 31 other companies in our industry may calculate adjusted ebitda and similar measures differently than we do , limiting its usefulness as a comparative measure . because of these limitations , adjusted ebitda should not be considered in isolation or as a substitute for net income ( loss ) or any other performance measures calculated in accordance with gaap or as a measure of liquidity . management understands these limitations and compensates for these limitations by relying primarily on our gaap results and using adjusted ebitda only supplementally . set forth below is a reconciliation of net income ( loss ) to adjusted ebitda , which we consider to be the most directly comparable gaap financial measure to adjusted ebitda : replace_table_token_9_th ( 1 ) the 2011 non-cash material non-recurring transaction represents the impairment of fixed assets recorded in the fourth quarter of 2011. story_separator_special_tag addition , we have $ 1.1 million of future minimum lease payments spread over the five-year lease term under the lease agreement we entered into with lba realty , llc ( lba realty ) in september 2010 with respect to our oakland , california campus following the sale of our campus to lba realty in a sale-leaseback transaction . from time to time , we may provide or commit to extend credit or credit support to our customers . this financing may include extending the terms for product payments to customers . any extension of financing to our customers will limit the capital that we have available for other uses . our accounts receivable , while not considered a primary source of liquidity , represent a concentration of credit risk because a significant portion of the accounts receivable balance at any point in time typically consists of a relatively small number of customer account balances . as of december 31 , 2013 , three customers accounted for 56 % of net accounts receivable . receivables from customers in countries other than the united states of america represented 82 % of net accounts receivable at december 31 , 2013. we do not currently have any material commitments for capital expenditures , or any other material commitments aside from operating leases for our facilities , inventory purchase

liquidity and capital resources our operations are financed through a combination of our existing cash , cash equivalents , available credit facilities , and sales of equity and debt instruments , based on our operating requirements and market conditions . at december 31 , 2013 , cash and cash equivalents were $ 15.7 million compared to $ 11.1 million at december 31 , 2012. the increase in cash and cash equivalents of $ 4.6 million was attributable to net cash provided by operating activities and financing activities of $ 4.2 million and $ 1.0 million , respectively , offset by cash used in investing activities of $ 0.5 million and a foreign currency translation adjustment of $ 0.1 million . operating activities for fiscal year 2013 , net cash provided by operating activities consisted of net income of $ 4.3 million , adjusted for non-cash charges totaling $ 0.6 million and an increase in operating assets totaling $ 0.5 million . the most significant components of the changes in net operating assets were an increase in accounts receivable of $ 6.1 million and an increase in accounts payable of $ 5.5 million , partially offset by decreases in inventories of $ 1.8 million and accrued and other liabilities of $ 1.0 million . the increase in accounts receivable was related to the timing of cash collections and increased sales . the increase in accounts payable was primarily due to timing of payments . the main driver for the decrease in accrued and other liabilities related to a non-cash decrease of $ 0.8 million due to the continued amortization of our deferred gain and leasehold improvement liabilities in connection with our oakland campus . lastly , the decrease in inventories was primarily due to better inventory management and a buildup of inventory in prior periods . for fiscal year 2012 , net cash used in operating activities consisted of a net loss of $ 9.0 million , adjusted for non-cash charges totaling $ 4.3 million and a decrease in operating assets totaling $ 2.8 million .


 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 our operations are financed through a combination of our existing cash , cash equivalents , available credit facilities , and sales of equity and debt instruments , based on our operating requirements and market conditions . at december 31 , 2013 , cash and cash equivalents were $ 15.7 million compared to $ 11.1 million at december 31 , 2012. the increase in cash and cash equivalents of $ 4.6 million was attributable to net cash provided by operating activities and financing activities of $ 4.2 million and $ 1.0 million , respectively , offset by cash used in investing activities of $ 0.5 million and a foreign currency translation adjustment of $ 0.1 million . operating activities for fiscal year 2013 , net cash provided by operating activities consisted of net income of $ 4.3 million , adjusted for non-cash charges totaling $ 0.6 million and an increase in operating assets totaling $ 0.5 million . the most significant components of the changes in net operating assets were an increase in accounts receivable of $ 6.1 million and an increase in accounts payable of $ 5.5 million , partially offset by decreases in inventories of $ 1.8 million and accrued and other liabilities of $ 1.0 million . the increase in accounts receivable was related to the timing of cash collections and increased sales . the increase in accounts payable was primarily due to timing of payments . the main driver for the decrease in accrued and other liabilities related to a non-cash decrease of $ 0.8 million due to the continued amortization of our deferred gain and leasehold improvement liabilities in connection with our oakland campus . lastly , the decrease in inventories was primarily due to better inventory management and a buildup of inventory in prior periods . for fiscal year 2012 , net cash used in operating activities consisted of a net loss of $ 9.0 million , adjusted for non-cash charges totaling $ 4.3 million and a decrease in operating assets totaling $ 2.8 million .
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 Suspicious Activity Report : if our arrangements include customer acceptance provisions , revenue is recognized upon obtaining the signed acceptance certificate from the customer , unless we can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance . in those instances where revenue is recognized prior to obtaining the signed acceptance certificate , we use successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement . we also consider historical acceptance experience with the customer , as well as the payment terms specified in the arrangement , when revenue is recognized prior to obtaining the signed acceptance certificate . when collectability is not reasonably assured , revenue is recognized when cash is collected . we make certain sales to product distributors . these customers are given certain privileges to return a portion of inventory . return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time . we recognize revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors , unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment . in those instances when revenue is recognized upon shipment to distributors , we use historical rates of return from the distributors to provide for estimated product returns . we accrue for warranty costs , sales returns and other allowances at the time of shipment based on historical experience and expected future costs . we derive revenue primarily from stand-alone sales of our products . in certain cases , our products are sold along with services , which include education , training , installation , and or extended warranty services . as such , some of our sales have multiple deliverables . our products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as our arrangements typically do not have any significant performance , cancellation , termination and refund type provisions . products are typically considered delivered upon shipment . revenue from services is recognized ratably over the period during which the services are to be performed . for multiple deliverable revenue arrangements , we allocate revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met . the selling price of a deliverable is based on a hierarchy and if we are unable to establish vendor-specific objective evidence of selling price ( vsoe ) we look to third-party evidence of selling price ( tpe ) and if no such data is available , we use a best estimated selling price ( bsp ) . in most instances , particularly as it relates to products , we are not able to establish vsoe for all deliverables in an arrangement with multiple elements . this may be due to infrequently selling each element separately , not pricing products within a narrow range , or only having a limited sales history . when vsoe can not be established , we attempt to establish the selling price of each element based on tpe . generally , our marketing strategy differs from that of our peers and our offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality can not be obtained . furthermore , we are unable to reliably determine what similar competitor products ' selling prices are on a stand-alone basis . therefore , we are typically not able to determine tpe for our products . when we are unable to establish selling price using vsoe or tpe , we use bsp . the objective of bsp is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis . the bsp of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors , including but not limited to our gross margin objectives and pricing practices plus customer and market specific considerations . we have established tpe for our training , education and installation services . these service arrangements are typically short term in nature and are largely completed shortly after delivery of the product . tpe is determined based on competitor prices for similar deliverables when sold separately . training and education services are based on a daily rate per person and vary according to the type of class offered . installation services are based on daily rate per person and vary according to the complexity of the products being installed . 25 extended warranty services are priced based on the type of product and are sold in one to five year durations . extended warranty services include the right to warranty coverage beyond the standard warranty period . in substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services , we have used and intend to continue using vsoe to determine the selling price for the services . we determine vsoe based on our normal pricing practices for these specific services when sold separately . allowances for sales returns and doubtful accounts we record an allowance for sales returns for estimated future product returns related to current period product revenue . the allowance for sales returns is recorded as a reduction of revenue and an allowance against our accounts receivable . we base our allowance for sales returns on periodic assessments of historical trends in product return rates and current approved returned products . if the actual future returns were to deviate from the historical data on which the reserve had been established , our future revenue could be adversely affected . story_separator_special_tag also , depreciation expense decreased $ 0.5 million as a result of the fixed asset impairment recorded in the fourth quarter of 2011. these decreases were partially offset by increases of $ 0.6 million in allocated facility costs and $ 0.5 million in bad debt expense . in addition , a tax dispute that was settled in 2011 resulted in the reversal of an accrual of $ 0.4 million in 2011. there was no similar transaction in 2012. impairment of fixed assets impairment of fixed assets was $ 0.1 million for 2012 compared to $ 4.2 million for 2011 , as discussed in note 3 of the consolidated financial statements . interest expense interest expense for 2012 increased to $ 0.1 million compared to an immaterial balance in 2011 , primarily due to a settlement of a tax dispute in 2011 , resulting in the reversal of an accrual which offset interest expense by $ 0.1 million in 2011. our outstanding debt balances remained constant and interest rates remained low during 2012. other income ( expense ) other income ( expense ) for 2012 decreased by $ 0.1 million to an immaterial balance compared to $ 0.1 million in 2011 due to a foreign exchange loss in the current period . income tax provision during the years ended december 31 , 2012 and 2011 , we recorded an income tax provision of $ 0.1 million related to foreign and state taxes . no material provision or benefit for income taxes was recorded in 2012 and 2011 , due to our recurring operating losses and the significant uncertainty regarding the realization of our net deferred tax assets , against which we have continued to record a full valuation allowance . other performance measures in managing our business and assessing our financial performance , we supplement the information provided by our gaap results with adjusted earnings before stock-based compensation , interest , taxes , and depreciation , or adjusted ebitda , a non-gaap financial measure . we define adjusted ebitda as net income ( loss ) plus ( i ) interest expense , ( ii ) provision ( benefit ) for taxes , ( iii ) depreciation and amortization , ( iv ) non-cash equity-based compensation expense , and ( v ) material non-recurring non-cash transactions , such as a gain ( loss ) on sale of assets or impairment of fixed assets . we believe that the presentation of adjusted ebitda enhances the usefulness of our financial information by presenting a measure that management uses internally to monitor and evaluate our operating performance and to evaluate the effectiveness of our business strategies . we believe adjusted ebitda also assists investors and analysts in comparing our performance across reporting periods on a consistent basis because it excludes the impact of items that we do not believe reflect our core operating performance . adjusted ebitda has limitations as an analytical tool . some of these limitations are : adjusted ebitda does not reflect our cash expenditures , or future requirements for capital expenditures or contractual requirements ; adjusted ebitda does not reflect changes in , or cash requirements for , our working capital needs ; adjusted ebitda does not reflect the interest expense , or the cash requirements necessary to service interest or principal payments , on our debts ; although depreciation and amortization are non-cash charges , the assets being depreciated and amortized will often have to be replaced in the future , and adjusted ebitda does not reflect any cash requirements for such replacements ; non-cash compensation is and will remain a key element of our overall long-term incentive compensation package , although we exclude it as an expense when evaluating our ongoing operating performance for a particular period ; and 31 other companies in our industry may calculate adjusted ebitda and similar measures differently than we do , limiting its usefulness as a comparative measure . because of these limitations , adjusted ebitda should not be considered in isolation or as a substitute for net income ( loss ) or any other performance measures calculated in accordance with gaap or as a measure of liquidity . management understands these limitations and compensates for these limitations by relying primarily on our gaap results and using adjusted ebitda only supplementally . set forth below is a reconciliation of net income ( loss ) to adjusted ebitda , which we consider to be the most directly comparable gaap financial measure to adjusted ebitda : replace_table_token_9_th ( 1 ) the 2011 non-cash material non-recurring transaction represents the impairment of fixed assets recorded in the fourth quarter of 2011. story_separator_special_tag addition , we have $ 1.1 million of future minimum lease payments spread over the five-year lease term under the lease agreement we entered into with lba realty , llc ( lba realty ) in september 2010 with respect to our oakland , california campus following the sale of our campus to lba realty in a sale-leaseback transaction . from time to time , we may provide or commit to extend credit or credit support to our customers . this financing may include extending the terms for product payments to customers . any extension of financing to our customers will limit the capital that we have available for other uses . our accounts receivable , while not considered a primary source of liquidity , represent a concentration of credit risk because a significant portion of the accounts receivable balance at any point in time typically consists of a relatively small number of customer account balances . as of december 31 , 2013 , three customers accounted for 56 % of net accounts receivable . receivables from customers in countries other than the united states of america represented 82 % of net accounts receivable at december 31 , 2013. we do not currently have any material commitments for capital expenditures , or any other material commitments aside from operating leases for our facilities , inventory purchase

