39 back to our 2012 and 2011 revenues were impacted by the 2010 ( and previous years ) pre-payment tuition plan , or the legacy tuition plan , which was discontinued on july 15 , 2011. the legacy tuition plan had students paying full-rate tuition for a degree program 's first 4 courses ( $ 675/course ) and a steeply discounted tuition rate for the program 's eight course balance ( $ 112.50/course ) . specifically , the plan produced immediate cash flow , but unsustainably low gross profit margins over the length of the degree program . as of december 31 , 2012 , 44 % of our full-time degree-seeking students are still enrolled under the legacy tuition plan . however , as the table below demonstrates , the contribution from legacy tuition plan students to overall aspen revenue and profits diminished steadily over the course of 2012 as the population of full-time degree-seeking students paying regular tuition rates increased by 188 % and the population of legacy tuition plan students fell by 36 % . accordingly , much as 2012 was affected negatively by the lingering impact of the legacy tuition plan , 2013 revenue should demonstrate a dramatically diminished effect from the legacy tuition plan and a much greater contribution from the growing number of regular rate students . in fact , aspen group expects legacy tuition plan students ' contribution to financial results to be immaterial for the full year 2013 , and on a quarterly basis to be immaterial no later than the second quarter of 2013. the following table represents certain metrics regarding aspen 's full-time degree seeking students . the revenue numbers are for tuition only and do not include fees . replace_table_token_2_th separately , aspen 's largest corporate customer was verizon , predominantly in the tri-state region ( ny , nj , ct ) , representing 29 % of our revenues in 2012 and 45 % in 2011. because of the payments we make to our third-party business development partner in connection with the referrals of corporate customers , our gross margins from corporate customer revenues are substantially less . deducting these payments , verizon accounted for only 6 % and 11 % of our net revenues for 2012 and 2011 , respectively . in 2012 , aspen 's verizon revenues were significantly affected in the second half of the year by the impact of hurricane sandy as verizon employees were wholly focused on reconstruction efforts to return damaged infrastructure to operation . verizon 's net revenue contribution in the second half of 2012 fell to 3 % as revenues contracted at a 70 % year/year rate versus a year/year growth rate of 9 % during the first half of 2012 when the net revenue contribution was 11 % . management expects verizon 's net revenue contribution to be immaterial in 2013. this is a planned , long-term strategic shift in which aspen has decided to de-emphasize third-party-sourced corporate employee certificate programs in favor of launching its own internal marketing efforts for such programs in 2013. the first certificate program planned to be launched in early-april through aspen 's internal marketing department is the certificate in internet marketing . 40 back to costs and expenses instructional costs and services instructional costs and services for the year ended december 31 , 2012 rose to $ 2,926,837 from $ 2,200,034 for the year ended december 31 , 2011 , an increase of 33 % . the increase is primarily attributable to higher charges associated with non-capitalizable courseware costs and payments to faculty due to the increase in class completions . as student enrollment levels increase , instructional costs and services should rise commensurately . however , as aspen increases its full-time degree-seeking student enrollments , the higher gross margins associated with such students should lead to the growth rate in instructional costs and services to lag that of overall revenues . revenues less instructional costs and services , a measure of the gross profit of aspen operations , for the year ended december 31 , 2012 declined to $ 2,090,376 from $ 2,277,897 for the year ended december 31 , 2011 , a decrease of 8 % . gross profit from aspen 's full-time degree-seeking students declined to $ 1,785,030 for the year ended december 31 , 2011 from $ 1,946,899 for the year ended december 31 , 2011 , a decrease of 8 % . the timing impact of the legacy tuition plan was experienced in the second half of 2012 as aspen 's gross profit from full-time degree-seeking students fell at a year/year rate of 14 % versus a 1 % decline during the first half of 2012. this is because the second half of 2011 was affected by a large number of legacy tuition plan students completing their initial four courses which contributed gross profits in contrast to later periods with a lower number of initial four courses taken by legacy tuition plan students . after the initial four courses , gross profit from the legacy tuition plan is immaterial . gross profit growth is expected in 2013 as new full-time degree-seeking student enrollments increase and legacy tuition plan students represent a shrinking portion of the total full-time degree-seeking student population . gross profit from aspen 's third-party corporate employee certificate programs and part-time degree programs declined to $ 305,346 for the year ended december 31 , 2012 from $ 330,998 for the year ended december 31 , 2011 , a decrease of 8 % . story_separator_special_tag therefore , at the end of each fiscal quarter , a portion of revenue from these programs is not yet earned and is therefore deferred . aspen also charges students annual fees for library , technology and other services , which are recognized over the related service period . deferred revenue represents the amount of tuition , fees , and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets . other revenues may be recognized as sales occur or services are performed . aspen enters into certain revenue sharing arrangements with consultants whereby the consultants will develop course content primarily for technology related courses , recommend , but not select , faculty , lease equipment on behalf of aspen for instructional purposes for the on-site laboratory portion of distance learning courses and make introductions to corporate and government sponsoring organizations who provide students for the courses . aspen has evaluated asc 605-45 `` principal agent considerations `` and determined that there are more indicators than not that aspen is the primary obligor in the arrangements since aspen establishes the tuition , interfaces with the student or sponsoring organization , selects the faculty , is responsible for delivering the course , is responsible for issuing any degrees or certificates , and is responsible for collecting the tuition and fees . the gross tuition and fees are included in revenues while the revenue sharing payments are included in instructional costs and services , an operating expense . 44 back to accounts receivable and allowance for doubtful accounts receivable all students are required to select both a primary and secondary payment option with respect to amounts due to aspen for tuition , fees and other expenses . the most common payment option for aspen 's students is personal funds or payment made on their behalf by an employer . in instances where a student selects financial aid as the primary payment option , he or she often selects personal cash as the secondary option . if a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that aspen 's institutional refund period has expired , the student will have incurred the obligation to pay the full cost of the course . if the withdrawal occurs before the date at which the student has earned 100 % of his or her financial aid , aspen will have to return all or a portion of the title iv funds to the doe and the student will owe aspen all amounts incurred that are in excess of the amount of financial aid that the student earned and that aspen is entitled to retain . in this case , aspen must collect the receivable using the student 's second payment option . for accounts receivable from students , aspen records an allowance for doubtful accounts for estimated losses resulting from the inability , failure or refusal of its students to make required payments , which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student 's cost of tuition and related fees . aspen determines the adequacy of its allowance for doubtful accounts using a general reserve method based on an analysis of its historical bad debt experience , current economic trends , and the aging of the accounts receivable and student status . aspen applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status . aspen writes off accounts receivable balances at the time the balances are deemed uncollectible . aspen continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection . for accounts receivable from primary payors other than students , aspen estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations , such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms . in these cases , aspen uses assumptions and judgment , based on the best available facts and circumstances , to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected . these specific allowances are re-evaluated and adjusted as additional information is received . the amounts calculated are analyzed to determine the total amount of the allowance . aspen may also record a general allowance as necessary . direct write-offs are taken in the period when aspen has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that aspen should abandon such efforts . related party transactions at december 31 , 2012 , we included as a long term asset an account receivable of $ 270,478 net of an allowance of $ 502,315 from our former chairman . although it is secured by stock pledges , there is a risk that we may not collect all or any of this sum . in march 2012 , we issued a $ 300,000 convertible note to mr. michael mathews , our chief executive officer , in consideration for a $ 300,000 loan . the note was originally due march 31 , 2013 , but was amended to extend the due date to august 31 , 2013. the note bears interest at 0.19 % per annum and is convertible at $ 1.00 per share . in august 2012 , we issued a $ 300,000 convertible note to mr. mathews in consideration for an additional $ 300,000 loan . the note was originally a demand note , but was amended to extend the due date to august 31 , 2014. the note bears interest at 5 % per annum and is convertible at $ 0.35 per

capital resources and liquidity net cash used in operating activities during the year ended december 31 , 2012 totaled ( $ 4,403,361 ) and resulted primarily from a net loss of ( $ 6,010,734 ) offset by non-cash items of $ 1,965,955 and a net change in operating assets and liabilities of ( $ 358,582 ) . net cash from operating activities include non-recurring expenses of $ 702,093 which comprised of professional fees . net cash used in investing activities during the year ended december 31 , 2012 totaled ( $ 619,801 ) and resulted primarily from capitalized technology expenditures of ( $ 505,146 ) and a net increase of restricted cash of ( $ 264,992 ) , offset by officer loan repayments received of $ 150,000 . 43 back to net cash provided by financing activities during the year ended december 31 , 2012 totaled $ 4,901,548 which resulted primarily from proceeds from the net issuance of debt and equity securities and warrants of $ 5,370,021 offset by issuance costs of ( $ 266,473 ) and the repurchase of treasury shares of ( $ 202,000 ) . in may 2011 , aspen had approximately $ 200,000 in cash when its new management team joined it in connection with the egc merger .


 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.
     ```capital resources and liquidity net cash used in operating activities during the year ended december 31 , 2012 totaled ( $ 4,403,361 ) and resulted primarily from a net loss of ( $ 6,010,734 ) offset by non-cash items of $ 1,965,955 and a net change in operating assets and liabilities of ( $ 358,582 ) . net cash from operating activities include non-recurring expenses of $ 702,093 which comprised of professional fees . net cash used in investing activities during the year ended december 31 , 2012 totaled ( $ 619,801 ) and resulted primarily from capitalized technology expenditures of ( $ 505,146 ) and a net increase of restricted cash of ( $ 264,992 ) , offset by officer loan repayments received of $ 150,000 . 43 back to net cash provided by financing activities during the year ended december 31 , 2012 totaled $ 4,901,548 which resulted primarily from proceeds from the net issuance of debt and equity securities and warrants of $ 5,370,021 offset by issuance costs of ( $ 266,473 ) and the repurchase of treasury shares of ( $ 202,000 ) . in may 2011 , aspen had approximately $ 200,000 in cash when its new management team joined it in connection with the egc merger .
```    
 Suspicious Activity Report : 39 back to our 2012 and 2011 revenues were impacted by the 2010 ( and previous years ) pre-payment tuition plan , or the legacy tuition plan , which was discontinued on july 15 , 2011. the legacy tuition plan had students paying full-rate tuition for a degree program 's first 4 courses ( $ 675/course ) and a steeply discounted tuition rate for the program 's eight course balance ( $ 112.50/course ) . specifically , the plan produced immediate cash flow , but unsustainably low gross profit margins over the length of the degree program . as of december 31 , 2012 , 44 % of our full-time degree-seeking students are still enrolled under the legacy tuition plan . however , as the table below demonstrates , the contribution from legacy tuition plan students to overall aspen revenue and profits diminished steadily over the course of 2012 as the population of full-time degree-seeking students paying regular tuition rates increased by 188 % and the population of legacy tuition plan students fell by 36 % . accordingly , much as 2012 was affected negatively by the lingering impact of the legacy tuition plan , 2013 revenue should demonstrate a dramatically diminished effect from the legacy tuition plan and a much greater contribution from the growing number of regular rate students . in fact , aspen group expects legacy tuition plan students ' contribution to financial results to be immaterial for the full year 2013 , and on a quarterly basis to be immaterial no later than the second quarter of 2013. the following table represents certain metrics regarding aspen 's full-time degree seeking students . the revenue numbers are for tuition only and do not include fees . replace_table_token_2_th separately , aspen 's largest corporate customer was verizon , predominantly in the tri-state region ( ny , nj , ct ) , representing 29 % of our revenues in 2012 and 45 % in 2011. because of the payments we make to our third-party business development partner in connection with the referrals of corporate customers , our gross margins from corporate customer revenues are substantially less . deducting these payments , verizon accounted for only 6 % and 11 % of our net revenues for 2012 and 2011 , respectively . in 2012 , aspen 's verizon revenues were significantly affected in the second half of the year by the impact of hurricane sandy as verizon employees were wholly focused on reconstruction efforts to return damaged infrastructure to operation . verizon 's net revenue contribution in the second half of 2012 fell to 3 % as revenues contracted at a 70 % year/year rate versus a year/year growth rate of 9 % during the first half of 2012 when the net revenue contribution was 11 % . management expects verizon 's net revenue contribution to be immaterial in 2013. this is a planned , long-term strategic shift in which aspen has decided to de-emphasize third-party-sourced corporate employee certificate programs in favor of launching its own internal marketing efforts for such programs in 2013. the first certificate program planned to be launched in early-april through aspen 's internal marketing department is the certificate in internet marketing . 40 back to costs and expenses instructional costs and services instructional costs and services for the year ended december 31 , 2012 rose to $ 2,926,837 from $ 2,200,034 for the year ended december 31 , 2011 , an increase of 33 % . the increase is primarily attributable to higher charges associated with non-capitalizable courseware costs and payments to faculty due to the increase in class completions . as student enrollment levels increase , instructional costs and services should rise commensurately . however , as aspen increases its full-time degree-seeking student enrollments , the higher gross margins associated with such students should lead to the growth rate in instructional costs and services to lag that of overall revenues . revenues less instructional costs and services , a measure of the gross profit of aspen operations , for the year ended december 31 , 2012 declined to $ 2,090,376 from $ 2,277,897 for the year ended december 31 , 2011 , a decrease of 8 % . gross profit from aspen 's full-time degree-seeking students declined to $ 1,785,030 for the year ended december 31 , 2011 from $ 1,946,899 for the year ended december 31 , 2011 , a decrease of 8 % . the timing impact of the legacy tuition plan was experienced in the second half of 2012 as aspen 's gross profit from full-time degree-seeking students fell at a year/year rate of 14 % versus a 1 % decline during the first half of 2012. this is because the second half of 2011 was affected by a large number of legacy tuition plan students completing their initial four courses which contributed gross profits in contrast to later periods with a lower number of initial four courses taken by legacy tuition plan students . after the initial four courses , gross profit from the legacy tuition plan is immaterial . gross profit growth is expected in 2013 as new full-time degree-seeking student enrollments increase and legacy tuition plan students represent a shrinking portion of the total full-time degree-seeking student population . gross profit from aspen 's third-party corporate employee certificate programs and part-time degree programs declined to $ 305,346 for the year ended december 31 , 2012 from $ 330,998 for the year ended december 31 , 2011 , a decrease of 8 % . story_separator_special_tag therefore , at the end of each fiscal quarter , a portion of revenue from these programs is not yet earned and is therefore deferred . aspen also charges students annual fees for library , technology and other services , which are recognized over the related service period . deferred revenue represents the amount of tuition , fees , and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets . other revenues may be recognized as sales occur or services are performed . aspen enters into certain revenue sharing arrangements with consultants whereby the consultants will develop course content primarily for technology related courses , recommend , but not select , faculty , lease equipment on behalf of aspen for instructional purposes for the on-site laboratory portion of distance learning courses and make introductions to corporate and government sponsoring organizations who provide students for the courses . aspen has evaluated asc 605-45 `` principal agent considerations `` and determined that there are more indicators than not that aspen is the primary obligor in the arrangements since aspen establishes the tuition , interfaces with the student or sponsoring organization , selects the faculty , is responsible for delivering the course , is responsible for issuing any degrees or certificates , and is responsible for collecting the tuition and fees . the gross tuition and fees are included in revenues while the revenue sharing payments are included in instructional costs and services , an operating expense . 44 back to accounts receivable and allowance for doubtful accounts receivable all students are required to select both a primary and secondary payment option with respect to amounts due to aspen for tuition , fees and other expenses . the most common payment option for aspen 's students is personal funds or payment made on their behalf by an employer . in instances where a student selects financial aid as the primary payment option , he or she often selects personal cash as the secondary option . if a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that aspen 's institutional refund period has expired , the student will have incurred the obligation to pay the full cost of the course . if the withdrawal occurs before the date at which the student has earned 100 % of his or her financial aid , aspen will have to return all or a portion of the title iv funds to the doe and the student will owe aspen all amounts incurred that are in excess of the amount of financial aid that the student earned and that aspen is entitled to retain . in this case , aspen must collect the receivable using the student 's second payment option . for accounts receivable from students , aspen records an allowance for doubtful accounts for estimated losses resulting from the inability , failure or refusal of its students to make required payments , which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student 's cost of tuition and related fees . aspen determines the adequacy of its allowance for doubtful accounts using a general reserve method based on an analysis of its historical bad debt experience , current economic trends , and the aging of the accounts receivable and student status . aspen applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status . aspen writes off accounts receivable balances at the time the balances are deemed uncollectible . aspen continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection . for accounts receivable from primary payors other than students , aspen estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations , such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms . in these cases , aspen uses assumptions and judgment , based on the best available facts and circumstances , to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected . these specific allowances are re-evaluated and adjusted as additional information is received . the amounts calculated are analyzed to determine the total amount of the allowance . aspen may also record a general allowance as necessary . direct write-offs are taken in the period when aspen has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that aspen should abandon such efforts . related party transactions at december 31 , 2012 , we included as a long term asset an account receivable of $ 270,478 net of an allowance of $ 502,315 from our former chairman . although it is secured by stock pledges , there is a risk that we may not collect all or any of this sum . in march 2012 , we issued a $ 300,000 convertible note to mr. michael mathews , our chief executive officer , in consideration for a $ 300,000 loan . the note was originally due march 31 , 2013 , but was amended to extend the due date to august 31 , 2013. the note bears interest at 0.19 % per annum and is convertible at $ 1.00 per share . in august 2012 , we issued a $ 300,000 convertible note to mr. mathews in consideration for an additional $ 300,000 loan . the note was originally a demand note , but was amended to extend the due date to august 31 , 2014. the note bears interest at 5 % per annum and is convertible at $ 0.35 per

