critical accounting policies and estimates revenue recognition  the company 's two primary business segments include photovoltaic installation , integration and sales , and cable , wire and mechanical assemblies . photovoltaic installation , integration and sales  in our photovoltaic systems installation , integration and sales segment , there are two revenue streams . revenue on product sales is recognized when there is evidence of an arrangement , title and risk of ownership have passed ( generally upon delivery ) , the price to the buyer is fixed or determinable and collectability is reasonably assured . customers do not have a general right of return on products shipped therefore we make no provisions for returns . revenue on photovoltaic system construction contracts is generally recognized using the percentage of completion method of accounting . at the end of each period , the company measures the cost incurred on each project and compares the result against its estimated total costs at completion . the percent of cost incurred determines the amount of revenue to be recognized . payment terms are generally defined by the contract and as a result may not match the timing of the costs incurred by the company and the related recognition of revenue . such differences are recorded as costs and estimated earnings in excess of billings on uncompleted contracts or billings in excess of costs and estimated earnings on uncompleted contracts . the company determines its customer 's credit worthiness at the time the order is accepted . sudden and unexpected changes in customer 's financial condition could put recoverability at risk . the percentage-of-completion method requires the use of various estimates including among others , the extent of progress towards completion , contract revenues and contract completion costs . contract revenues and contract costs to be recognized are dependent on the accuracy of estimates , including direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs , and depreciation costs . we have a history of making reasonable estimates of the extent of progress towards completion , contract revenues and contract completion costs . however , due to uncertainties inherent in the estimation process , it is possible that actual contract revenues and completion costs may vary from estimates . 21 for those projects where the company is considered to be the owner , the project is accounted for under the rules of real estate accounting . in the event of a sale , the method of revenue recognition is determined by considering the extent of the buyer 's initial and continuing investment and the nature and the extent of the company 's continuing involvement . generally , revenue is recognized at the time of title transfer if the buyers investment is sufficient to demonstrate a commitment to pay for the property and the company does not have a substantial continuing involvement with the property . when continuing involvement is substantial and not temporary , the company applies the financing method , whereby the asset remains on the balance sheet and the proceeds received are recorded as a financing obligation . when a sale is not recognized due to continuing involvement and the financing method is applied the company records revenue and expenses related to the underlying operations of the asset in the company 's consolidated financial statements . the asset , costs and estimated earnings in excess of billings on uncompleted contracts represents revenues recognized in excess of amounts billed . the liability , billings in excess of costs and estimated earnings on uncompleted contracts ,  represents billings in excess of revenues recognized . cable , wire and mechanical assemblies  in our cable , wire and mechanical assemblies business the company recognizes the sales of goods when there is evidence of an arrangement , title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectability is reasonably assured . there are no formal customer acceptance requirements or further obligations related to our assembly services once we ship our products . customers do not have a general right of return on products shipped therefore we make no provisions for returns . we make determination of our customer 's credit worthiness at the time we accept their order . product and performance warranties  the company offers the industry standard of 25 years for our solar modules and industry standard five ( 5 ) years on inverter and balance of system components . due to the warranty period , we bear the risk of extensive warranty claims long after we have shipped product and recognized revenue . in our cable , wire and mechanical assemblies business , historically our warranty claims have not been material . in our solar photovoltaic business , our greatest warranty exposure is in the form of product replacement . until the third quarter of 2007 , the company purchased its solar panels from third-party suppliers and since the third-party warranties are consistent with industry standards we considered our financial exposure to warranty claims immaterial . certain photovoltaic construction contracts entered into during the year ended december 31 , 2007 included provisions under which the company agreed to provide warranties to the buyer , and during the quarter ended september 30 , 2007 and continuing through the fourth quarter of 2010 , the company installed its own manufactured solar panels . as a result , the company recorded the provision for the estimated warranty exposure on these contracts within cost of sales . since the company does not have sufficient historical data to estimate its exposure , we have looked to our own historical data in combination with historical data reported by other solar system installers and manufacturers . story_separator_special_tag $ 983,000 of imputed interest on a real estate sales transaction accounted for under the financing method , $ 188,000 paid on the loan securing our power generating facility at aerojet , $ 29,000 paid on our installment loans and capital leases and $ 233,000 of finance charges on trade accounts payable . other income / expense  other expense , net was $ 469,000 and $ 1,138,000 for the years ended december 31 , 2011 and 2010 , respectively . the decrease was primarily related to large exchange losses due to decline in value of the euro in 2010 as it related to the collection of euro denominated accounts receivable . in 2010 , other income , net consisted primarily of income related to a government stimulus of $ 70,000 from the chinese government , other income of $ 6,000 and expenses of $ 1,000 related to the sub-lease of the company 's retail outlet , $ 142,000 of costs related to the preliminary design of a new factory facility and currency exchange losses of $ 1,071,000. income tax expense / benefit  the company provided income tax expense of $ 259,000 for the year ended december 31 , 2011 and an income tax benefit of $ 141,000 for the year ended december 31 , 2010. the company is currently in a net cumulative loss position and has significant net operating loss carry forwards . the income tax expense for the year ended december 31 , 2011 consisted of $ 150,000 for federal alternative minimum tax , not covered by the company 's deferred tax assets , $ 207,000 of state income tax for california and new jersey and $ 1,000 of tax expense related to our china support entity . there is a moratorium imposed by the state of california that prevents the use of operating losses to offset future tax liability until the state budget crisis is resolved resulting in income tax expense related to our california earnings . the income tax benefit for the year ended december 31 , 2010 was primarily due to a decrease in tax liability for one of our foreign subsidiaries . 26 story_separator_special_tag equivalents , $ 670,000 of restricted cash held in our name consisting of $ 400,000 as a reserve pursuant to our guarantees of solar tax partners 1 , llc with the bank providing the debt financing on the aerojet 1 solar generating facility ( see note 15 of the consolidated financial statements ) , $ 250,000 as a reserve pursuant to our loan agreement with the bank providing the debt financing for the solar generating facility owned by our subsidiary , solar tax partners 2 , llc and $ 20,000 held by our bank as collateral for our corporate credit card , net accounts receivable of $ 77,115,000 and costs and estimated earnings in excess of billings on uncompleted contracts of $ 9,245,000. our focus will be to continue development of large-scale photovoltaic solar energy facilities . 28 pricing of solar modules has significantly decreased over the last year primarily due to the overcapacity of chinese solar manufacturers . coupled with continuous solar incentives provided by the us , european and other countries , the adoption of solar systems worldwide has been on the rise . while it is still a challenging economic environment , we anticipate our sales pipeline to grow both domestically and internationally . while our sales pipeline of solar system construction projects continues to grow , such projects encumber associated working capital until project completion or earlier customer payment , and our revenues are highly dependent on third party financing for these projects . as a result , revenues remain difficult to predict and we can not assure shareholders and potential investors that we will be successful in generating positive cash from operations . knowing that revenues are unpredictable , our strategy has been to manage spending tightly , and to outsource the majority of our construction workforce . over the past three years we have sustained losses from operations and have relied on equity financing to provide working capital . we have been actively working with additional potential investors to ensure that we have additional equity available to us as needed . in addition , we are working on sources of project financing as well as asset backed credit facilities . the issues involved with receiving payment on two major projects ( aerojet 1 and aerojet 2 ) have severely hindered the company 's ability to create and leverage working capital . the impact of waiting for that working capital required the company to optimize cash on hand and negotiate extended terms with our suppliers resulting in increased accounts payable . the limits on available working capital caused by these events and inability to obtain additional credit from our suppliers impacted the company 's ability to start and complete projects per original schedules . the company received payment for the outstanding receivable due on aerojet 1 from stp in august 2010 , allowing the company to satisfy obligations to suppliers and enabling more effective management of working capital . the inability of our customer to complete its purchase of the aerojet 2 project , resulting in the company taking possession of the project and recording it as an asset held for sale , caused further constraints on our working capital . to mitigate future impact on working capital requirements the company is planning to finance future projects through construction financing or payment terms from the end customer . we have extended payment terms for one of our major customers up to 310 days and 364 days respectively for 40 % and 50 % of the receivable that amounted to $ 42 million as of december 31 , 2011. payments terms also include a 5 % interest rate per year from the date that is thirty days after the date that title passes from us to this customer until the date such amount is

liquidity a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_3_th as of december 31 , 2011 , we had $ 23,855,000 in cash and cash equivalents and as of december 31 , 2010 , we had $ 1,441,000 in cash and cash equivalents . this change in cash and cash equivalents is primarily attributable to cash generated from financing activities offset by cash used in operating activities . operating activities  net cash used in operating activities of $ 30,439,000 for the year ended december 31 , 2011 was a result of a net loss of $ 461,000 , offset by non-cash items included in net loss , consisting of depreciation of $ 999,000 , amortization of loan fees of $ ( 14,000 ) , impairment charge of $ 400,000 , stock-based compensation expense and stock issued for services of $ 517,000 , bad debt expense of $ 819,000 , provision for obsolete inventory of $ 253,000 , operating income from solar system subject to financing obligation of $ ( 749,000 ) , and loss on disposal of fixed assets of $ 4,000. cash used in operations also included an increase in accounts and related notes receivable of $ 77,980,000 primarily related to a number of large scale development projects where milestones have been met and invoices issued , including $ 18,201,000 due from our parent company ldk relating to two epc contracts between spi and ldk ; an increase in costs and estimated earnings in excess of billings on uncompleted projects of $ 7,020,000 related to the construction projects , of which $ 360,000 is related to two epc contracts entered into between the company and ldk ; increases in inventories of $ 3,044,000 primarily due to increases in raw material and finished goods inventory ; decreases in prepaid expenses and other current assets of $ 135,000 due to decreased supplier deposits at our manufacturing facility in the people 's republic of china ( prc ) ; an increase in accounts payable of $ 47,806,000 of which $ 46,125,000 is to ldk for solar panel purchases ; increases in


 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 a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_3_th as of december 31 , 2011 , we had $ 23,855,000 in cash and cash equivalents and as of december 31 , 2010 , we had $ 1,441,000 in cash and cash equivalents . this change in cash and cash equivalents is primarily attributable to cash generated from financing activities offset by cash used in operating activities . operating activities  net cash used in operating activities of $ 30,439,000 for the year ended december 31 , 2011 was a result of a net loss of $ 461,000 , offset by non-cash items included in net loss , consisting of depreciation of $ 999,000 , amortization of loan fees of $ ( 14,000 ) , impairment charge of $ 400,000 , stock-based compensation expense and stock issued for services of $ 517,000 , bad debt expense of $ 819,000 , provision for obsolete inventory of $ 253,000 , operating income from solar system subject to financing obligation of $ ( 749,000 ) , and loss on disposal of fixed assets of $ 4,000. cash used in operations also included an increase in accounts and related notes receivable of $ 77,980,000 primarily related to a number of large scale development projects where milestones have been met and invoices issued , including $ 18,201,000 due from our parent company ldk relating to two epc contracts between spi and ldk ; an increase in costs and estimated earnings in excess of billings on uncompleted projects of $ 7,020,000 related to the construction projects , of which $ 360,000 is related to two epc contracts entered into between the company and ldk ; increases in inventories of $ 3,044,000 primarily due to increases in raw material and finished goods inventory ; decreases in prepaid expenses and other current assets of $ 135,000 due to decreased supplier deposits at our manufacturing facility in the people 's republic of china ( prc ) ; an increase in accounts payable of $ 47,806,000 of which $ 46,125,000 is to ldk for solar panel purchases ; increases in
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 Suspicious Activity Report : critical accounting policies and estimates revenue recognition  the company 's two primary business segments include photovoltaic installation , integration and sales , and cable , wire and mechanical assemblies . photovoltaic installation , integration and sales  in our photovoltaic systems installation , integration and sales segment , there are two revenue streams . revenue on product sales is recognized when there is evidence of an arrangement , title and risk of ownership have passed ( generally upon delivery ) , the price to the buyer is fixed or determinable and collectability is reasonably assured . customers do not have a general right of return on products shipped therefore we make no provisions for returns . revenue on photovoltaic system construction contracts is generally recognized using the percentage of completion method of accounting . at the end of each period , the company measures the cost incurred on each project and compares the result against its estimated total costs at completion . the percent of cost incurred determines the amount of revenue to be recognized . payment terms are generally defined by the contract and as a result may not match the timing of the costs incurred by the company and the related recognition of revenue . such differences are recorded as costs and estimated earnings in excess of billings on uncompleted contracts or billings in excess of costs and estimated earnings on uncompleted contracts . the company determines its customer 's credit worthiness at the time the order is accepted . sudden and unexpected changes in customer 's financial condition could put recoverability at risk . the percentage-of-completion method requires the use of various estimates including among others , the extent of progress towards completion , contract revenues and contract completion costs . contract revenues and contract costs to be recognized are dependent on the accuracy of estimates , including direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs , and depreciation costs . we have a history of making reasonable estimates of the extent of progress towards completion , contract revenues and contract completion costs . however , due to uncertainties inherent in the estimation process , it is possible that actual contract revenues and completion costs may vary from estimates . 21 for those projects where the company is considered to be the owner , the project is accounted for under the rules of real estate accounting . in the event of a sale , the method of revenue recognition is determined by considering the extent of the buyer 's initial and continuing investment and the nature and the extent of the company 's continuing involvement . generally , revenue is recognized at the time of title transfer if the buyers investment is sufficient to demonstrate a commitment to pay for the property and the company does not have a substantial continuing involvement with the property . when continuing involvement is substantial and not temporary , the company applies the financing method , whereby the asset remains on the balance sheet and the proceeds received are recorded as a financing obligation . when a sale is not recognized due to continuing involvement and the financing method is applied the company records revenue and expenses related to the underlying operations of the asset in the company 's consolidated financial statements . the asset , costs and estimated earnings in excess of billings on uncompleted contracts represents revenues recognized in excess of amounts billed . the liability , billings in excess of costs and estimated earnings on uncompleted contracts ,  represents billings in excess of revenues recognized . cable , wire and mechanical assemblies  in our cable , wire and mechanical assemblies business the company recognizes the sales of goods when there is evidence of an arrangement , title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectability is reasonably assured . there are no formal customer acceptance requirements or further obligations related to our assembly services once we ship our products . customers do not have a general right of return on products shipped therefore we make no provisions for returns . we make determination of our customer 's credit worthiness at the time we accept their order . product and performance warranties  the company offers the industry standard of 25 years for our solar modules and industry standard five ( 5 ) years on inverter and balance of system components . due to the warranty period , we bear the risk of extensive warranty claims long after we have shipped product and recognized revenue . in our cable , wire and mechanical assemblies business , historically our warranty claims have not been material . in our solar photovoltaic business , our greatest warranty exposure is in the form of product replacement . until the third quarter of 2007 , the company purchased its solar panels from third-party suppliers and since the third-party warranties are consistent with industry standards we considered our financial exposure to warranty claims immaterial . certain photovoltaic construction contracts entered into during the year ended december 31 , 2007 included provisions under which the company agreed to provide warranties to the buyer , and during the quarter ended september 30 , 2007 and continuing through the fourth quarter of 2010 , the company installed its own manufactured solar panels . as a result , the company recorded the provision for the estimated warranty exposure on these contracts within cost of sales . since the company does not have sufficient historical data to estimate its exposure , we have looked to our own historical data in combination with historical data reported by other solar system installers and manufacturers . story_separator_special_tag $ 983,000 of imputed interest on a real estate sales transaction accounted for under the financing method , $ 188,000 paid on the loan securing our power generating facility at aerojet , $ 29,000 paid on our installment loans and capital leases and $ 233,000 of finance charges on trade accounts payable . other income / expense  other expense , net was $ 469,000 and $ 1,138,000 for the years ended december 31 , 2011 and 2010 , respectively . the decrease was primarily related to large exchange losses due to decline in value of the euro in 2010 as it related to the collection of euro denominated accounts receivable . in 2010 , other income , net consisted primarily of income related to a government stimulus of $ 70,000 from the chinese government , other income of $ 6,000 and expenses of $ 1,000 related to the sub-lease of the company 's retail outlet , $ 142,000 of costs related to the preliminary design of a new factory facility and currency exchange losses of $ 1,071,000. income tax expense / benefit  the company provided income tax expense of $ 259,000 for the year ended december 31 , 2011 and an income tax benefit of $ 141,000 for the year ended december 31 , 2010. the company is currently in a net cumulative loss position and has significant net operating loss carry forwards . the income tax expense for the year ended december 31 , 2011 consisted of $ 150,000 for federal alternative minimum tax , not covered by the company 's deferred tax assets , $ 207,000 of state income tax for california and new jersey and $ 1,000 of tax expense related to our china support entity . there is a moratorium imposed by the state of california that prevents the use of operating losses to offset future tax liability until the state budget crisis is resolved resulting in income tax expense related to our california earnings . the income tax benefit for the year ended december 31 , 2010 was primarily due to a decrease in tax liability for one of our foreign subsidiaries . 26 story_separator_special_tag equivalents , $ 670,000 of restricted cash held in our name consisting of $ 400,000 as a reserve pursuant to our guarantees of solar tax partners 1 , llc with the bank providing the debt financing on the aerojet 1 solar generating facility ( see note 15 of the consolidated financial statements ) , $ 250,000 as a reserve pursuant to our loan agreement with the bank providing the debt financing for the solar generating facility owned by our subsidiary , solar tax partners 2 , llc and $ 20,000 held by our bank as collateral for our corporate credit card , net accounts receivable of $ 77,115,000 and costs and estimated earnings in excess of billings on uncompleted contracts of $ 9,245,000. our focus will be to continue development of large-scale photovoltaic solar energy facilities . 28 pricing of solar modules has significantly decreased over the last year primarily due to the overcapacity of chinese solar manufacturers . coupled with continuous solar incentives provided by the us , european and other countries , the adoption of solar systems worldwide has been on the rise . while it is still a challenging economic environment , we anticipate our sales pipeline to grow both domestically and internationally . while our sales pipeline of solar system construction projects continues to grow , such projects encumber associated working capital until project completion or earlier customer payment , and our revenues are highly dependent on third party financing for these projects . as a result , revenues remain difficult to predict and we can not assure shareholders and potential investors that we will be successful in generating positive cash from operations . knowing that revenues are unpredictable , our strategy has been to manage spending tightly , and to outsource the majority of our construction workforce . over the past three years we have sustained losses from operations and have relied on equity financing to provide working capital . we have been actively working with additional potential investors to ensure that we have additional equity available to us as needed . in addition , we are working on sources of project financing as well as asset backed credit facilities . the issues involved with receiving payment on two major projects ( aerojet 1 and aerojet 2 ) have severely hindered the company 's ability to create and leverage working capital . the impact of waiting for that working capital required the company to optimize cash on hand and negotiate extended terms with our suppliers resulting in increased accounts payable . the limits on available working capital caused by these events and inability to obtain additional credit from our suppliers impacted the company 's ability to start and complete projects per original schedules . the company received payment for the outstanding receivable due on aerojet 1 from stp in august 2010 , allowing the company to satisfy obligations to suppliers and enabling more effective management of working capital . the inability of our customer to complete its purchase of the aerojet 2 project , resulting in the company taking possession of the project and recording it as an asset held for sale , caused further constraints on our working capital . to mitigate future impact on working capital requirements the company is planning to finance future projects through construction financing or payment terms from the end customer . we have extended payment terms for one of our major customers up to 310 days and 364 days respectively for 40 % and 50 % of the receivable that amounted to $ 42 million as of december 31 , 2011. payments terms also include a 5 % interest rate per year from the date that is thirty days after the date that title passes from us to this customer until the date such amount is

