high rates of growth are not uncommon in the asian region , but on the back of a huge market size , china 's growth is particularly pronounced . also according to espicom , the medical device market in china is expected to reach $ 28 billion by 2014 , doubled compared with the total sales in 2006. chinese government programs are aimed at rebuilding and renovating urban health centers , and building hospitals and medical centers in rural areas . the government is setting up the goal of having one up-to-standard hospital in every county , one government-run medical center in every township and one clinic in every administrative village . major portion of the domestic large-scale medical equipment procurement is government centralized procurement . for example , china development bank launched the “ supporting health infrastructure in rural areas ” program with a $ 690 million budget in the three years from 2011 through 2013. fortune magazine predicted homecare medical equipment to be ranked first among the fastest-growing industries in the 21st century . in western countries with mature and large health care markets , home medical equipment accounts for 40 % of the entire medical device output . however , in china because of the limited coverage and level of treatment in the public health systems , residents tend to be more aware of their health and wellness and to seek treatment at home before resorting to public health systems . thus management expects that homecare medical equipment could become as ubiquitous as home appliances . in addition , the un estimates that the chinese population over the age of 60 will increase from 167 million in 2010 to 440 million in 2050 ; hence , the aging population and increasing incidence of respiratory disorders are expected to drive additional growth in respiratory homecare products in the chinese marketplace . in 2011 , the shanghai government launched its medical insurance program to subsidize its citizens on homecare oxygen tanks . we anticipate beijing and other cities will be pushing for similar legislation . accordingly , in 2011 we partnered with two other companies to provide homecare oxygen tank services in beijing . based on the data shown above , both from a market and a government perspective , we are leveraging our broad sales network in order to introduce additional products from leading international brands into the chinese market and participating in government healthcare projects . at the same time , we will also increase our investment in r & d , continue marketing penetration for our proprietary products , expand coverage for home oxygen therapy service and focus on broadening international markets . we believe that the favorable market conditions will support growth in sales and that our market expansion strategy will benefit our business growth in the future . growth strategy we will build our brand name domestically as both a distributor and a trusted partner by leveraging our relationships with healthcare professionals , agents and other downstream distributors , maintaining and expanding our customer base , and promoting business growth steadily . we will expand our product portfolio through continued investment in research and development and pursuing attractive opportunities to acquire complementary companies . we have had steady growth in our brand name homecare medical products . we will expand our distribution channels through tools such as e-commerce platforms . we plan to create more cross-selling opportunities for our homecare products , while providing oxygen delivery through the service platform . we will develop our home oxygen service business and expand the service platform to dominate the domestic market for this service in china and to implement value-added business based on this platform . eventually , we seek to provide customers with an all-in-one solution in the home healthcare field . we plan to leverage our existing network of consumer experience centers , or cecs , to showcase our home oxygen service business in those markets in which we offer home oxygen services . we will expand our distribution channels through tools such as e-commerce platforms . we plan to create more cross-selling opportunities for our homecare products , while providing oxygen delivery through the service platform . we will expand into overseas markets and establish a distribution network , through distribution agreements , oem partnerships , direct sales force and e-commerce platforms . we will build our brand name by actively participating in international trade shows and other marketing activities . to the extent we have adequate demand for our homecare medical products abroad , we will seek regulatory approval to sell these products in the united states and europe . ii- 3 revenues our total revenues are derived from our medical devices and our respiratory and oxygen homecare products and services . medical devices ( including related supporting products ) – our proprietary and distributed products we derive revenues in our medical devices product line from the sale of c-arm x-ray systems , anesthesia machines , medical ventilators , general hospital products and related supporting products . our medical device line is our largest product line and has the most extensive market penetration . we anticipate that we will continue to experience revenue growth in our medical devices line as we further develop our market through the introduction of new advanced product offerings and the participation in favorable government programs . in addition , we have begun to engage in state-level healthcare projects recently . we may procure high-end medical equipment for our clients , which may not necessarily be part of our existing distributed brands portfolio . we refer to these kinds of contracted projects as “ key account business . ” although this business may carry lower margins , the contract value for such business is typically larger and can contribute materially to our revenues . story_separator_special_tag treated as a pass-through entity under the internal revenue code , breathcare llc does not pay u.s. federal income tax at the entity level . critical accounting policies basis of consolidation the consolidated financial statements include the accounts of dehaier , and its majority-owned and wholly-owned subsidiaries ( collectively , the “ company ” ) . all significant inter-company transactions and balances are eliminated in consolidation . ii- 9 a group of shareholders , including the chief executive officer , originally held more than 50 % of the voting ownership interest of dehaier , bdl and btl . btl is a variable interest entity ( “ vie ” ) , and bdl is the primary beneficiary . btl owns a building which is pledged as collateral for bdl 's bank loans . in exchange , bdl loans money to btl to finance its operations . btl 's primary operation is to provide repairs and transportation services to bdl 's customers . because of these arrangements , bdl is the primary beneficiary of btl , as the entity that is most closely associated with btl . dehaier has included btl in its consolidated financial statements through the consolidation with bdl since december 31 , 2006. dehaier , bdl and btl were under common control until october 31 , 2009 , when each share of preferred share was converted into a common share . because the chief executive officer held more than 50 % of the voting ownership interest of each of dehaier , bdl and btl at december 31 , 2006 , the company initially measured the assets , liabilities and non-controlling interest of the vie at the amounts at which they were carried in the accounts of the reporting entity that controls the vie . on october 31 , 2009 , bdl reconsidered whether it is the primary beneficiary of btl when dehaier 's preferred stock was converted into common shares . while such conversion dilutes the chief executive officer 's interest in bdl such that bdl and btl are not under common control after october 31 , 2009 , bdl still has the obligation to absorb the expected losses of btl . btl is still a vie because all of its activities either involve or are conducted on behalf of the reporting enterprise and its related parties . bdl is btl 's only customer referral source . on march 3 , 2010 , bdl entered into a loss absorption agreement memorializing the understanding that bdl would continue to loan money to btl as needed to fund its working capital such that bdl would absorb btl 's losses . management makes ongoing reassessments of whether bdl is the primary beneficiary of btl . use of estimates the preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods . estimates are adjusted to reflect actual experience when necessary . significant accounting estimates reflected in the company 's consolidated financial statements include revenue recognition , allowance for doubtful accounts , warranty obligation , warrants liability , stock-based compensation and useful lives of property and equipment . actual results could differ from those estimates . accounts receivable accounts receivable are recorded at net realizable value . accounts receivable terms typically are net 60-180 days from the end of the month in which the services were provided , or when goods were delivered . the company generally does not require collateral or other security to support accounts receivable . an allowance , if required , is based on a combination of historical experience , aging analysis , and an evaluation of the collectibility of specific accounts . prior to 2011 , receivables were considered past due after 3 years . in 2011 , after assessing the distributors ' economic factors and company 's historic experience , management decided that receivables over 1 year will be considered past due . fair value of financial instruments the carrying amounts reported in the consolidated financial statements for current assets and current liabilities approximate fair value due to the short-term nature of these financial instruments . the company adopted the provisions of asc topic 815 , “ derivatives and hedging . ” asc topic 815 provides a framework for determining whether an instrument is indexed to an entity 's own stock . asc topic 815 became effective for the company when warrants were issued in connection with the company 's initial public offering . such warrants are indexed to the company 's stock , which is traded in us dollars . since the company 's functional currency is the rmb , such warrants are considered liabilities . the fair value of the warrants liability is measured each reporting period with the resulting change in fair value recorded in the consolidated statement of income and comprehensive income . the accounting standards regarding fair value of financial instruments and related fair value measurements define fair value , establish a three-level valuation hierarchy for disclosures of fair value measurement , and enhance disclosure requirements for fair value measures . the three levels are defined as follows : level 1 inputs to the valuation methodology are quoted prices ( unadjusted ) for identical assets or liabilities in active markets . ii- 10 level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . warrants liabilities qualify as financial instruments , and are carried on the balance sheet at its fair value . financial assets and liabilities are classified in their entirety based

liquidity and capital resources cash flows and working capital in 2010 , we financed our operations primarily from proceeds of common stock issuances . in 2011 , we mainly used the cash proceeds from our ipo and from our operations . as of december 31 , 2011 , we had approximately $ 3.69 million in cash and cash equivalents . as a result of the total cash activities , net cash decreased from $ 5,923,386 at december 31 , 2010 to $ 3,694,486 at december 31 , 2011. we believe that our currently available working capital of $ 26,981,557 , including cash of $ 3,694,486 , should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months . to the extent we engage in acquisitions in the future , we will need to rely on a variety of sources of funding , including but not limited to operating cash and debt/equity financings . operating activities net cash used in operating activities was $ 3,161,752 for the year ended december 31 , 2011 as compared to $ 4,977,955 for the same period in 2010 . ( i ) cash flow due to decrease of $ 1,435,560 in net income . our net income decreased primarily because of the increase of operating costs and expenses in 2011 . ( ii ) cash outflow due to decrease of $ 2,196,262 in prepayment .


 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 cash flows and working capital in 2010 , we financed our operations primarily from proceeds of common stock issuances . in 2011 , we mainly used the cash proceeds from our ipo and from our operations . as of december 31 , 2011 , we had approximately $ 3.69 million in cash and cash equivalents . as a result of the total cash activities , net cash decreased from $ 5,923,386 at december 31 , 2010 to $ 3,694,486 at december 31 , 2011. we believe that our currently available working capital of $ 26,981,557 , including cash of $ 3,694,486 , should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months . to the extent we engage in acquisitions in the future , we will need to rely on a variety of sources of funding , including but not limited to operating cash and debt/equity financings . operating activities net cash used in operating activities was $ 3,161,752 for the year ended december 31 , 2011 as compared to $ 4,977,955 for the same period in 2010 . ( i ) cash flow due to decrease of $ 1,435,560 in net income . our net income decreased primarily because of the increase of operating costs and expenses in 2011 . ( ii ) cash outflow due to decrease of $ 2,196,262 in prepayment .
```    
 Suspicious Activity Report : high rates of growth are not uncommon in the asian region , but on the back of a huge market size , china 's growth is particularly pronounced . also according to espicom , the medical device market in china is expected to reach $ 28 billion by 2014 , doubled compared with the total sales in 2006. chinese government programs are aimed at rebuilding and renovating urban health centers , and building hospitals and medical centers in rural areas . the government is setting up the goal of having one up-to-standard hospital in every county , one government-run medical center in every township and one clinic in every administrative village . major portion of the domestic large-scale medical equipment procurement is government centralized procurement . for example , china development bank launched the “ supporting health infrastructure in rural areas ” program with a $ 690 million budget in the three years from 2011 through 2013. fortune magazine predicted homecare medical equipment to be ranked first among the fastest-growing industries in the 21st century . in western countries with mature and large health care markets , home medical equipment accounts for 40 % of the entire medical device output . however , in china because of the limited coverage and level of treatment in the public health systems , residents tend to be more aware of their health and wellness and to seek treatment at home before resorting to public health systems . thus management expects that homecare medical equipment could become as ubiquitous as home appliances . in addition , the un estimates that the chinese population over the age of 60 will increase from 167 million in 2010 to 440 million in 2050 ; hence , the aging population and increasing incidence of respiratory disorders are expected to drive additional growth in respiratory homecare products in the chinese marketplace . in 2011 , the shanghai government launched its medical insurance program to subsidize its citizens on homecare oxygen tanks . we anticipate beijing and other cities will be pushing for similar legislation . accordingly , in 2011 we partnered with two other companies to provide homecare oxygen tank services in beijing . based on the data shown above , both from a market and a government perspective , we are leveraging our broad sales network in order to introduce additional products from leading international brands into the chinese market and participating in government healthcare projects . at the same time , we will also increase our investment in r & d , continue marketing penetration for our proprietary products , expand coverage for home oxygen therapy service and focus on broadening international markets . we believe that the favorable market conditions will support growth in sales and that our market expansion strategy will benefit our business growth in the future . growth strategy we will build our brand name domestically as both a distributor and a trusted partner by leveraging our relationships with healthcare professionals , agents and other downstream distributors , maintaining and expanding our customer base , and promoting business growth steadily . we will expand our product portfolio through continued investment in research and development and pursuing attractive opportunities to acquire complementary companies . we have had steady growth in our brand name homecare medical products . we will expand our distribution channels through tools such as e-commerce platforms . we plan to create more cross-selling opportunities for our homecare products , while providing oxygen delivery through the service platform . we will develop our home oxygen service business and expand the service platform to dominate the domestic market for this service in china and to implement value-added business based on this platform . eventually , we seek to provide customers with an all-in-one solution in the home healthcare field . we plan to leverage our existing network of consumer experience centers , or cecs , to showcase our home oxygen service business in those markets in which we offer home oxygen services . we will expand our distribution channels through tools such as e-commerce platforms . we plan to create more cross-selling opportunities for our homecare products , while providing oxygen delivery through the service platform . we will expand into overseas markets and establish a distribution network , through distribution agreements , oem partnerships , direct sales force and e-commerce platforms . we will build our brand name by actively participating in international trade shows and other marketing activities . to the extent we have adequate demand for our homecare medical products abroad , we will seek regulatory approval to sell these products in the united states and europe . ii- 3 revenues our total revenues are derived from our medical devices and our respiratory and oxygen homecare products and services . medical devices ( including related supporting products ) – our proprietary and distributed products we derive revenues in our medical devices product line from the sale of c-arm x-ray systems , anesthesia machines , medical ventilators , general hospital products and related supporting products . our medical device line is our largest product line and has the most extensive market penetration . we anticipate that we will continue to experience revenue growth in our medical devices line as we further develop our market through the introduction of new advanced product offerings and the participation in favorable government programs . in addition , we have begun to engage in state-level healthcare projects recently . we may procure high-end medical equipment for our clients , which may not necessarily be part of our existing distributed brands portfolio . we refer to these kinds of contracted projects as “ key account business . ” although this business may carry lower margins , the contract value for such business is typically larger and can contribute materially to our revenues . story_separator_special_tag treated as a pass-through entity under the internal revenue code , breathcare llc does not pay u.s. federal income tax at the entity level . critical accounting policies basis of consolidation the consolidated financial statements include the accounts of dehaier , and its majority-owned and wholly-owned subsidiaries ( collectively , the “ company ” ) . all significant inter-company transactions and balances are eliminated in consolidation . ii- 9 a group of shareholders , including the chief executive officer , originally held more than 50 % of the voting ownership interest of dehaier , bdl and btl . btl is a variable interest entity ( “ vie ” ) , and bdl is the primary beneficiary . btl owns a building which is pledged as collateral for bdl 's bank loans . in exchange , bdl loans money to btl to finance its operations . btl 's primary operation is to provide repairs and transportation services to bdl 's customers . because of these arrangements , bdl is the primary beneficiary of btl , as the entity that is most closely associated with btl . dehaier has included btl in its consolidated financial statements through the consolidation with bdl since december 31 , 2006. dehaier , bdl and btl were under common control until october 31 , 2009 , when each share of preferred share was converted into a common share . because the chief executive officer held more than 50 % of the voting ownership interest of each of dehaier , bdl and btl at december 31 , 2006 , the company initially measured the assets , liabilities and non-controlling interest of the vie at the amounts at which they were carried in the accounts of the reporting entity that controls the vie . on october 31 , 2009 , bdl reconsidered whether it is the primary beneficiary of btl when dehaier 's preferred stock was converted into common shares . while such conversion dilutes the chief executive officer 's interest in bdl such that bdl and btl are not under common control after october 31 , 2009 , bdl still has the obligation to absorb the expected losses of btl . btl is still a vie because all of its activities either involve or are conducted on behalf of the reporting enterprise and its related parties . bdl is btl 's only customer referral source . on march 3 , 2010 , bdl entered into a loss absorption agreement memorializing the understanding that bdl would continue to loan money to btl as needed to fund its working capital such that bdl would absorb btl 's losses . management makes ongoing reassessments of whether bdl is the primary beneficiary of btl . use of estimates the preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods . estimates are adjusted to reflect actual experience when necessary . significant accounting estimates reflected in the company 's consolidated financial statements include revenue recognition , allowance for doubtful accounts , warranty obligation , warrants liability , stock-based compensation and useful lives of property and equipment . actual results could differ from those estimates . accounts receivable accounts receivable are recorded at net realizable value . accounts receivable terms typically are net 60-180 days from the end of the month in which the services were provided , or when goods were delivered . the company generally does not require collateral or other security to support accounts receivable . an allowance , if required , is based on a combination of historical experience , aging analysis , and an evaluation of the collectibility of specific accounts . prior to 2011 , receivables were considered past due after 3 years . in 2011 , after assessing the distributors ' economic factors and company 's historic experience , management decided that receivables over 1 year will be considered past due . fair value of financial instruments the carrying amounts reported in the consolidated financial statements for current assets and current liabilities approximate fair value due to the short-term nature of these financial instruments . the company adopted the provisions of asc topic 815 , “ derivatives and hedging . ” asc topic 815 provides a framework for determining whether an instrument is indexed to an entity 's own stock . asc topic 815 became effective for the company when warrants were issued in connection with the company 's initial public offering . such warrants are indexed to the company 's stock , which is traded in us dollars . since the company 's functional currency is the rmb , such warrants are considered liabilities . the fair value of the warrants liability is measured each reporting period with the resulting change in fair value recorded in the consolidated statement of income and comprehensive income . the accounting standards regarding fair value of financial instruments and related fair value measurements define fair value , establish a three-level valuation hierarchy for disclosures of fair value measurement , and enhance disclosure requirements for fair value measures . the three levels are defined as follows : level 1 inputs to the valuation methodology are quoted prices ( unadjusted ) for identical assets or liabilities in active markets . ii- 10 level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . warrants liabilities qualify as financial instruments , and are carried on the balance sheet at its fair value . financial assets and liabilities are classified in their entirety based

