we believe this non-gaap measure , as we have defined it , is helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations . this measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance . it provides an indicator for management to determine if adjustments to current spending decisions are needed . 14 ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance of and value companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-gaap financial measure as compared to gaap net income ( loss ) , include : the cash portion of dividends and interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expenditures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-gaap financial measures to supplement our gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with gaap . you should not rely on ebitda as a substitute for any such gaap financial measure . we strongly urge you to review the reconciliation of ebitda to gaap net income ( loss ) attributable to common stockholders , along with our condensed consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net income ( loss ) attributable to common stockholders to ebitda for the years ended december 31 , 2012 and 2011 ( dollars in thousands ) : replace_table_token_7_th foreign joint ventures : summary financial information of bomay , miefe and aag in u.s. dollars was as follows at december 31 , 2012 and 2011 ( in thousands ) : replace_table_token_8_th 15 replace_table_token_9_th * on december 31 , 2011 , the company exchanged an 8 % ownership in miefe to satisfy certain obligations to the general manager of miefe pursuant to a deferred compensation arrangement totaling approximately $ 190,000. the exchange decreased the company 's ownership interest in miefe from 49 % to 41 % . the company 's investment in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2012 and 2011 : replace_table_token_10_th * accumulated statutory reserves in equity method investments of $ 1.6 million and $ 1.3 million at december 31 , 2012 and 2011 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( prc ) , regulations on enterprises with foreign operations , an enterprise established in the prc with foreign operations is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . story_separator_special_tag although these estimates are based on management 's knowledge of current events and actions it may undertake in the future , they may ultimately differ from actual results . certain accounting policies involve significant estimates and assumptions by us that have a material impact on our consolidated financial condition or operating performance . management believes the following critical accounting policies reflect its most significant estimates and assumptions used in the preparation of our consolidated financial statements . we do not have off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as special purpose entities , nor do we have any variable interest entities . inventories  inventories are stated at the lower of cost or market , with material value determined using an average cost method . inventory costs for finished goods and work-in-process include direct material , direct labor , production overhead and outside services . tp & s and e & i indirect overhead is apportioned to work in process based on direct labor incurred . aat production overhead , including indirect labor , is allocated to finished goods and work-in-process based on material consumption , which is an estimate that could be subject to change in the near term as additional information is obtained and as our operating environment changes . allowance for obsolete and slow-moving inventory  the company regularly reviews the value of inventory on hand using specific aging categories , and records a provision for obsolete and slow-moving inventory based on historical usage and estimated future usage . as actual future demand or market conditions may vary from those projected , adjustments to our inventory reserve may be required . allowance for doubtful accounts  the company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments . the estimate is based on management 's assessment of the collectability of specific customer accounts and includes consideration for credit worthiness and financial condition of those specific customers . the company also reviews historical experience with the customer , the general economic environment and the aging of receivables . the company records an allowance to reduce receivables to the amount that is reasonably believed to be collectible . based on this assessment , management believes the allowance for doubtful accounts is adequate . revenue recognition  the company reports earnings from fixed-price and modified fixed-price long-term contracts on the percentage-of-completion method . earnings are accrued based on the ratio of costs incurred to total estimated costs . however , for tp & s , we have determined that labor incurred provides an improved measure of percentage-of-completion . costs include direct material , direct labor , and job related overhead . losses expected to be incurred on contracts are charged to operations in the period such losses are determined . a contract is considered complete when all costs , except insignificant items , have been incurred and the facility has been accepted by the customer . revenue from non-time and material jobs of a short-term nature ( typically less than one month ) is recognized on the completed-contract method after considering the attributes of such contracts . this method is used because these contracts are typically completed in a short period of time and the financial position and results of operations do not vary materially from those which would result from use of the percentage-of-completion method . the asset , work-in-process ,  which is included in inventories , represents the cost of labor , material , and overhead on jobs accounted for under the completed-contract method . for contracts accounted for under the percentage-of-completion method , the asset , costs and estimated earnings in excess of billings on uncompleted contracts ,  represents revenue recognized in excess of amounts billed and the liability , billings in excess of costs and estimated earnings on uncompleted contracts ,  represents billings in excess of revenue recognized . 22 foreign currency gains and losses  foreign currency translations are included as a separate component of comprehensive income . the company has determined the local currency of foreign joint ventures to be the functional currency . in accordance with asc 830 , the assets and liabilities of the foreign equity investees , denominated in foreign currency , are translated into united states dollars at exchange rates in effect at the consolidated balance sheet date and net sales and expenses are translated at the average exchange rate for the period . related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes  the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . contingencies  the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information this is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a

liquidity and capital resources replace_table_token_12_th *  consolidated net worth means the book value , as shown on its financial statements of all of borrower 's and its subsidiaries ' assets less consolidated total liabilities. aeti 's long-term debt as of december 31 , 2012 was $ 0.5 million on which payments are current . notes payable the company entered into a credit agreement with jp morgan chase bank , n.a . ( chase ) in october 2007. the credit agreement currently has a maturity on july 1 , 2014. at december 31 , 2012 and 2011 , there were $ 0.5 million and $ 5.0 million of borrowings outstanding and at december 31 , 2012 , there was additional borrowing capacity of $ 6.9 million . the revolving credit line is $ 10.0 million with a limit of up to $ 6.0 million of borrowing in the event that adjusted net income is less than $ 1.00 for any quarter ( line limit ) . adjusted net income is defined as domestic operating income plus depreciation and amortization . the agreement is collateralized by the company 's real estate in houston and beaumont , texas , trade accounts receivable , equipment , inventories , and work-in-process , and the company 's subsidiaries are guarantors of the borrowings . under the agreement , the company pays a commitment fee of 0.3 % of the unused portion of the credit limit each quarter . additionally , the terms of the agreement contain covenants which provide for customary restrictions and limitations , the maintenance of certain financial ratios , 19 including maintenance of a minimum current ratio , leverage ratio and tangible net worth and restriction from paying dividends without prior written consent of the bank .


 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 replace_table_token_12_th *  consolidated net worth means the book value , as shown on its financial statements of all of borrower 's and its subsidiaries ' assets less consolidated total liabilities. aeti 's long-term debt as of december 31 , 2012 was $ 0.5 million on which payments are current . notes payable the company entered into a credit agreement with jp morgan chase bank , n.a . ( chase ) in october 2007. the credit agreement currently has a maturity on july 1 , 2014. at december 31 , 2012 and 2011 , there were $ 0.5 million and $ 5.0 million of borrowings outstanding and at december 31 , 2012 , there was additional borrowing capacity of $ 6.9 million . the revolving credit line is $ 10.0 million with a limit of up to $ 6.0 million of borrowing in the event that adjusted net income is less than $ 1.00 for any quarter ( line limit ) . adjusted net income is defined as domestic operating income plus depreciation and amortization . the agreement is collateralized by the company 's real estate in houston and beaumont , texas , trade accounts receivable , equipment , inventories , and work-in-process , and the company 's subsidiaries are guarantors of the borrowings . under the agreement , the company pays a commitment fee of 0.3 % of the unused portion of the credit limit each quarter . additionally , the terms of the agreement contain covenants which provide for customary restrictions and limitations , the maintenance of certain financial ratios , 19 including maintenance of a minimum current ratio , leverage ratio and tangible net worth and restriction from paying dividends without prior written consent of the bank .
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 Suspicious Activity Report : we believe this non-gaap measure , as we have defined it , is helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations . this measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance . it provides an indicator for management to determine if adjustments to current spending decisions are needed . 14 ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance of and value companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-gaap financial measure as compared to gaap net income ( loss ) , include : the cash portion of dividends and interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expenditures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-gaap financial measures to supplement our gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with gaap . you should not rely on ebitda as a substitute for any such gaap financial measure . we strongly urge you to review the reconciliation of ebitda to gaap net income ( loss ) attributable to common stockholders , along with our condensed consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net income ( loss ) attributable to common stockholders to ebitda for the years ended december 31 , 2012 and 2011 ( dollars in thousands ) : replace_table_token_7_th foreign joint ventures : summary financial information of bomay , miefe and aag in u.s. dollars was as follows at december 31 , 2012 and 2011 ( in thousands ) : replace_table_token_8_th 15 replace_table_token_9_th * on december 31 , 2011 , the company exchanged an 8 % ownership in miefe to satisfy certain obligations to the general manager of miefe pursuant to a deferred compensation arrangement totaling approximately $ 190,000. the exchange decreased the company 's ownership interest in miefe from 49 % to 41 % . the company 's investment in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2012 and 2011 : replace_table_token_10_th * accumulated statutory reserves in equity method investments of $ 1.6 million and $ 1.3 million at december 31 , 2012 and 2011 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( prc ) , regulations on enterprises with foreign operations , an enterprise established in the prc with foreign operations is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . story_separator_special_tag although these estimates are based on management 's knowledge of current events and actions it may undertake in the future , they may ultimately differ from actual results . certain accounting policies involve significant estimates and assumptions by us that have a material impact on our consolidated financial condition or operating performance . management believes the following critical accounting policies reflect its most significant estimates and assumptions used in the preparation of our consolidated financial statements . we do not have off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as special purpose entities , nor do we have any variable interest entities . inventories  inventories are stated at the lower of cost or market , with material value determined using an average cost method . inventory costs for finished goods and work-in-process include direct material , direct labor , production overhead and outside services . tp & s and e & i indirect overhead is apportioned to work in process based on direct labor incurred . aat production overhead , including indirect labor , is allocated to finished goods and work-in-process based on material consumption , which is an estimate that could be subject to change in the near term as additional information is obtained and as our operating environment changes . allowance for obsolete and slow-moving inventory  the company regularly reviews the value of inventory on hand using specific aging categories , and records a provision for obsolete and slow-moving inventory based on historical usage and estimated future usage . as actual future demand or market conditions may vary from those projected , adjustments to our inventory reserve may be required . allowance for doubtful accounts  the company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments . the estimate is based on management 's assessment of the collectability of specific customer accounts and includes consideration for credit worthiness and financial condition of those specific customers . the company also reviews historical experience with the customer , the general economic environment and the aging of receivables . the company records an allowance to reduce receivables to the amount that is reasonably believed to be collectible . based on this assessment , management believes the allowance for doubtful accounts is adequate . revenue recognition  the company reports earnings from fixed-price and modified fixed-price long-term contracts on the percentage-of-completion method . earnings are accrued based on the ratio of costs incurred to total estimated costs . however , for tp & s , we have determined that labor incurred provides an improved measure of percentage-of-completion . costs include direct material , direct labor , and job related overhead . losses expected to be incurred on contracts are charged to operations in the period such losses are determined . a contract is considered complete when all costs , except insignificant items , have been incurred and the facility has been accepted by the customer . revenue from non-time and material jobs of a short-term nature ( typically less than one month ) is recognized on the completed-contract method after considering the attributes of such contracts . this method is used because these contracts are typically completed in a short period of time and the financial position and results of operations do not vary materially from those which would result from use of the percentage-of-completion method . the asset , work-in-process ,  which is included in inventories , represents the cost of labor , material , and overhead on jobs accounted for under the completed-contract method . for contracts accounted for under the percentage-of-completion method , the asset , costs and estimated earnings in excess of billings on uncompleted contracts ,  represents revenue recognized in excess of amounts billed and the liability , billings in excess of costs and estimated earnings on uncompleted contracts ,  represents billings in excess of revenue recognized . 22 foreign currency gains and losses  foreign currency translations are included as a separate component of comprehensive income . the company has determined the local currency of foreign joint ventures to be the functional currency . in accordance with asc 830 , the assets and liabilities of the foreign equity investees , denominated in foreign currency , are translated into united states dollars at exchange rates in effect at the consolidated balance sheet date and net sales and expenses are translated at the average exchange rate for the period . related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes  the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . contingencies  the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information this is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a

