functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash , which are deposited in major financial institutions in the u.s. , israel and germany , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . we regularly evaluate the carrying value of our inventories and when , in our opinion , factors indicate that impairment has occurred , we establish a reserve against the inventories ' carrying value . our determination that a valuation reserve might be required , in addition to the quantification of such reserve , requires us to utilize significant judgment . although we make every effort to ensure the accuracy of forecasts of future product demand , any significant unanticipated decreases in demand could have a material impact on the carrying value of our inventories and reported operating results . to date , inventory adjustments have not been material . with respect to inventory on consignment , see “ revenue recognition ” below . 39 revenue recognition revenue is recognized when delivery has occurred , evidence of an arrangement exists , title and risks and rewards for the products are transferred to the customer , collection is reasonably assured and when product returns can be reliably estimated . when product returns can be reliably estimated a provision is recorded , based on historical experience , and deducted from revenues . the provision for sales returns and related costs are included in “ accounts payable and accruals - other ” under “ current liabilities ” and “ inventory on consignment , ” respectively . when returns can not be reliably estimated , both related revenues and costs are deferred , and presented under `` deferred revenues `` and `` inventory on consignment , `` respectively . as of december 31 , 2011 , there is no deferred revenue in the balance sheet since , as of this date , the rate of returns can be reliably estimated . our revenue arrangements may contain delivery of free products upon the achievement of sales targets . each period , we estimate the amount of free products to which these distributors will be entitled based upon the expected achievement of sales targets and defer a portion of revenues accordingly . we recognize revenue net of value added tax . research and development costs research and development costs are charged to the statement of operations as incurred . share-based compensation employee option awards are classified as equity awards and accounted for using the grant-date fair value method . the fair value of share-based awards is estimated using the black-scholes valuation model , which is expensed over the requisite service period , net of estimated forfeitures . story_separator_special_tag for the twelve months ended december 31 , 2009 , net deferred revenue of approximately $ 0.1 million was comprised mainly of shipments made in 2009 but deferred and recognized in 2010 to our distributor in brazil in the amount of approximately $ 0.4 million , to our distributor in poland in the amount of $ 0.2 million and to our distributor in israel in the amount of $ 0.2 million , offset by shipments made in 2008 but deferred and recognized in revenue in 2009 from our distributor in italy in the amount of $ 0.5 million , and from our distributor in cyprus in the amount of $ 0.2 million . see “ twelve months ended december 31 , 2011 compared to twelve months ended december 31 , 2010 ” above for the reasons why such revenue was deferred and or recognized for each of the distributors listed above . 43 total gross revenue for the twelve months ended december 31 , 2010 remained relatively flat in comparison to the twelve months ended december 31 , 2009 , increasing by approximately $ 46,000. this increase was predominantly volume based , with increased volume accounting for approximately $ 263,000 , offset by price decreases in the amount of $ 217,000. the increase in volume was evenly distributed among our distributors . the decrease in prices were due to our penetration of newly opened markets , namely brazil , slovakia and cypress , in 2010 , which required reduced prices as compared to 2009. gross profit . for the twelve months ended december 31 , 2010 , gross profit ( revenue less cost of revenues ) increased 101.2 % , or approximately $ 1.1 million , to approximately $ 2.2 million from approximately $ 1.1 million during the same period in 2010. our gross margin percentage for the twelve months ended december 31 , 2010 increased to 45.5 % of revenues , compared to 32.8 % during the same period in 2009. in addition to an increase in sales , we were able to improve our gross profit because of reduced production cost per stent driven by reduction in price per unit from our subcontractor and economies of scale . for the twelve months ended december 31 , 2010 , our average selling price per stent recognized in revenue was $ 606 , and we recognized the sale of 8,171 stents , compared to an average price of $ 577 per stent and 5,910 stents recognized in revenue for the same period in 2009. our cost of goods sold per stent decreased from an average of $ 380 per stent recognized in revenue for the twelve months ended december 31 , 2009 to an average of $ 330 per stent for the same period in 2010. the higher price per stent for the twelve months ended december 31 , 2010 was affected by the price of stents sold in 2008 and 2009 to one of our europeans distributors in euros when the euro was much stronger than the u.s. dollar , at an average price of $ 997 when translated to u.s. dollars . research and development expense . for the twelve months ended december 31 , 2010 , research and development expense remained relatively flat at approximately $ 1.3 million as compared to the same period in 2009. research and development expense as a percentage of revenue decreased to 27.0 % in 2010 from 39.0 % in 2009. selling and marketing expense . for the twelve months ended december 31 , 2010 , selling and marketing expense increased approximately $ 0.2 million , or 18.8 % , to approximately $ 1.2 million from approximately $ 1.0 million during the same period in 2009. the increase in cost resulted primarily from an increase of approximately $ 0.2 million in advertising expenses . selling and marketing expense as a percentage of revenue decreased to 25.0 % in 2010 from 30.5 % in 2009. general and administrative expense . for the twelve months ended december 31 , 2010 , general and administrative expense increased approximately $ 1.4 million , or 97.5 % to approximately $ 2.9 million from approximately $ 1.5 million during the same period in 2009. the increase resulted primarily from an increase in share based compensation of approximately $ 0.7 million ( of which approximately $ 0.5 million related to employees and $ 0.2 million related to directors ) , an increase of approximately $ 0.2 million in audit fees ( as we prepared for the transition from israel gaap to u.s. gaap ) , an increase of $ 0.1 million in salary expenses , and an increase of approximately $ 0.4 million in other expenses ( due to our overall expansion ) . general and administrative expense as a percentage of revenue increased to 58.6 % in 2010 from 43.0 % in 2009. financial expenses ( income ) . for the twelve months ended december 31 , 2010 , financial expense increased to approximately $ 0.2 million from income of $ 4,000 for the same period in 2009. the increase in expense resulted primarily from a one time financial income recording of $ 0.3 million in 2009 pertaining to the cancellation of the conversion feature of a convertible loan that was repaid in the same year . financial expense as a percentage of revenue increased to 3.1 % in 2010 , compared to financial income as a percent of revenue of 1.2 % in 2009. tax expenses . tax expense remained flat at $ 47,000 for the twelve months ended december 31 , 2010 and 2009. our expenses for income taxes reflect primarily the tax liability due to potential tax exposure . net loss . our net loss increased by approximately $ 0.7 million , or 25.6 % , to approximately $ 3.4 million in 2010 from approximately $ 2.7 million during the same period in 2009. the increase in net loss resulted primarily from an increase in

liquidity and capital resources twelve months ended december 31 , 2011 compared to twelve months ended december 31 , 2010 general . at december 31 , 2011 , we had cash and cash equivalents of approximately $ 5.1 million , as compared to $ 0.6 million at december 31 , 2010. the increase is attributable primarily to the private placement conducted in conjunction with the share exchange transactions on march 31 , 2011 and other private equity issuances prior to and after the share exchange transactions . we have historically met our cash needs through a combination of issuance of new shares , borrowing activities and sales . our cash requirements are generally for product development , clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . cash used in our operating activities was approximately $ 6.0 million for the twelve months ended december 31 , 2011 , and approximately $ 2.7 million for the same period in 2010. the principal reasons for the usage of cash in our operating activities for the twelve months ended december 31 , 2011 included a net loss of approximately $ 14.7 million and a decrease in working capital of approximately $ 2.0 million , offset by approximately $ 9.6 million in non-cash share based compensation , an approximately $ 0.9 million in non-cash financial expenses related to the revaluation of a convertible loan and approximately $ 0.2 million of all other .


 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 twelve months ended december 31 , 2011 compared to twelve months ended december 31 , 2010 general . at december 31 , 2011 , we had cash and cash equivalents of approximately $ 5.1 million , as compared to $ 0.6 million at december 31 , 2010. the increase is attributable primarily to the private placement conducted in conjunction with the share exchange transactions on march 31 , 2011 and other private equity issuances prior to and after the share exchange transactions . we have historically met our cash needs through a combination of issuance of new shares , borrowing activities and sales . our cash requirements are generally for product development , clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . cash used in our operating activities was approximately $ 6.0 million for the twelve months ended december 31 , 2011 , and approximately $ 2.7 million for the same period in 2010. the principal reasons for the usage of cash in our operating activities for the twelve months ended december 31 , 2011 included a net loss of approximately $ 14.7 million and a decrease in working capital of approximately $ 2.0 million , offset by approximately $ 9.6 million in non-cash share based compensation , an approximately $ 0.9 million in non-cash financial expenses related to the revaluation of a convertible loan and approximately $ 0.2 million of all other .
```    
 Suspicious Activity Report : functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash , which are deposited in major financial institutions in the u.s. , israel and germany , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . we regularly evaluate the carrying value of our inventories and when , in our opinion , factors indicate that impairment has occurred , we establish a reserve against the inventories ' carrying value . our determination that a valuation reserve might be required , in addition to the quantification of such reserve , requires us to utilize significant judgment . although we make every effort to ensure the accuracy of forecasts of future product demand , any significant unanticipated decreases in demand could have a material impact on the carrying value of our inventories and reported operating results . to date , inventory adjustments have not been material . with respect to inventory on consignment , see “ revenue recognition ” below . 39 revenue recognition revenue is recognized when delivery has occurred , evidence of an arrangement exists , title and risks and rewards for the products are transferred to the customer , collection is reasonably assured and when product returns can be reliably estimated . when product returns can be reliably estimated a provision is recorded , based on historical experience , and deducted from revenues . the provision for sales returns and related costs are included in “ accounts payable and accruals - other ” under “ current liabilities ” and “ inventory on consignment , ” respectively . when returns can not be reliably estimated , both related revenues and costs are deferred , and presented under `` deferred revenues `` and `` inventory on consignment , `` respectively . as of december 31 , 2011 , there is no deferred revenue in the balance sheet since , as of this date , the rate of returns can be reliably estimated . our revenue arrangements may contain delivery of free products upon the achievement of sales targets . each period , we estimate the amount of free products to which these distributors will be entitled based upon the expected achievement of sales targets and defer a portion of revenues accordingly . we recognize revenue net of value added tax . research and development costs research and development costs are charged to the statement of operations as incurred . share-based compensation employee option awards are classified as equity awards and accounted for using the grant-date fair value method . the fair value of share-based awards is estimated using the black-scholes valuation model , which is expensed over the requisite service period , net of estimated forfeitures . story_separator_special_tag for the twelve months ended december 31 , 2009 , net deferred revenue of approximately $ 0.1 million was comprised mainly of shipments made in 2009 but deferred and recognized in 2010 to our distributor in brazil in the amount of approximately $ 0.4 million , to our distributor in poland in the amount of $ 0.2 million and to our distributor in israel in the amount of $ 0.2 million , offset by shipments made in 2008 but deferred and recognized in revenue in 2009 from our distributor in italy in the amount of $ 0.5 million , and from our distributor in cyprus in the amount of $ 0.2 million . see “ twelve months ended december 31 , 2011 compared to twelve months ended december 31 , 2010 ” above for the reasons why such revenue was deferred and or recognized for each of the distributors listed above . 43 total gross revenue for the twelve months ended december 31 , 2010 remained relatively flat in comparison to the twelve months ended december 31 , 2009 , increasing by approximately $ 46,000. this increase was predominantly volume based , with increased volume accounting for approximately $ 263,000 , offset by price decreases in the amount of $ 217,000. the increase in volume was evenly distributed among our distributors . the decrease in prices were due to our penetration of newly opened markets , namely brazil , slovakia and cypress , in 2010 , which required reduced prices as compared to 2009. gross profit . for the twelve months ended december 31 , 2010 , gross profit ( revenue less cost of revenues ) increased 101.2 % , or approximately $ 1.1 million , to approximately $ 2.2 million from approximately $ 1.1 million during the same period in 2010. our gross margin percentage for the twelve months ended december 31 , 2010 increased to 45.5 % of revenues , compared to 32.8 % during the same period in 2009. in addition to an increase in sales , we were able to improve our gross profit because of reduced production cost per stent driven by reduction in price per unit from our subcontractor and economies of scale . for the twelve months ended december 31 , 2010 , our average selling price per stent recognized in revenue was $ 606 , and we recognized the sale of 8,171 stents , compared to an average price of $ 577 per stent and 5,910 stents recognized in revenue for the same period in 2009. our cost of goods sold per stent decreased from an average of $ 380 per stent recognized in revenue for the twelve months ended december 31 , 2009 to an average of $ 330 per stent for the same period in 2010. the higher price per stent for the twelve months ended december 31 , 2010 was affected by the price of stents sold in 2008 and 2009 to one of our europeans distributors in euros when the euro was much stronger than the u.s. dollar , at an average price of $ 997 when translated to u.s. dollars . research and development expense . for the twelve months ended december 31 , 2010 , research and development expense remained relatively flat at approximately $ 1.3 million as compared to the same period in 2009. research and development expense as a percentage of revenue decreased to 27.0 % in 2010 from 39.0 % in 2009. selling and marketing expense . for the twelve months ended december 31 , 2010 , selling and marketing expense increased approximately $ 0.2 million , or 18.8 % , to approximately $ 1.2 million from approximately $ 1.0 million during the same period in 2009. the increase in cost resulted primarily from an increase of approximately $ 0.2 million in advertising expenses . selling and marketing expense as a percentage of revenue decreased to 25.0 % in 2010 from 30.5 % in 2009. general and administrative expense . for the twelve months ended december 31 , 2010 , general and administrative expense increased approximately $ 1.4 million , or 97.5 % to approximately $ 2.9 million from approximately $ 1.5 million during the same period in 2009. the increase resulted primarily from an increase in share based compensation of approximately $ 0.7 million ( of which approximately $ 0.5 million related to employees and $ 0.2 million related to directors ) , an increase of approximately $ 0.2 million in audit fees ( as we prepared for the transition from israel gaap to u.s. gaap ) , an increase of $ 0.1 million in salary expenses , and an increase of approximately $ 0.4 million in other expenses ( due to our overall expansion ) . general and administrative expense as a percentage of revenue increased to 58.6 % in 2010 from 43.0 % in 2009. financial expenses ( income ) . for the twelve months ended december 31 , 2010 , financial expense increased to approximately $ 0.2 million from income of $ 4,000 for the same period in 2009. the increase in expense resulted primarily from a one time financial income recording of $ 0.3 million in 2009 pertaining to the cancellation of the conversion feature of a convertible loan that was repaid in the same year . financial expense as a percentage of revenue increased to 3.1 % in 2010 , compared to financial income as a percent of revenue of 1.2 % in 2009. tax expenses . tax expense remained flat at $ 47,000 for the twelve months ended december 31 , 2010 and 2009. our expenses for income taxes reflect primarily the tax liability due to potential tax exposure . net loss . our net loss increased by approximately $ 0.7 million , or 25.6 % , to approximately $ 3.4 million in 2010 from approximately $ 2.7 million during the same period in 2009. the increase in net loss resulted primarily from an increase in

