we have an intellectual property portfolio of 125 patents related to the visual display of digital image data . we focus our research and development efforts on developing video enhancement solutions for our target markets that increase performance , video quality and device functionality while reducing power consumed . we seek to expand our technology portfolio through internal development and co-development with business partners , and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets . pixelworks was founded in 1997 and is incorporated under the laws of the state of oregon . historically , significant portions of our revenue have been generated by sales to a relatively small number of end customers and distributors . we sell our products worldwide through a direct sales force , distributors and manufacturers ' representatives . we sell to distributors in china , europe , japan , korea , southeast asia , taiwan and the u.s , and our manufacturers ' representatives support some of our korean and european sales . our distributors typically provide engineering support to our end customers and often have valuable and established relationships with our end customers . in certain countries in which we operate , it is customary to sell to distributors . while distributor payment to us is not dependent upon the distributor 's ability to resell the product or to collect from the end customer , the distributors may provide longer payment terms to end customers than those we would offer . significant portions of our products are sold overseas . sales outside the u.s. accounted for approximately 83 % of revenue in 2013 , 90 % of revenue in 2012 and 96 % of revenue in 2011 . our integrators , branded manufacturers and branded suppliers incorporate our products into systems that are sold worldwide . all of our revenue to date has been denominated in u.s. dollars . 35 results of operations year ended december 31 , 2013 compared with year ended december 31 , 2012 , and year ended december 31 , 2012 compared with year ended december 31 , 2011. revenue , net net revenue was as follows ( in thousands ) : replace_table_token_4_th 2013 v. 2012 net revenue decreased $ 11.6 million , or 19 % , from 2012 to 2013. revenue related to ic product sales was $ 40.0 million and $ 54.7 million for 2013 and 2012 , respectively . revenue related to license of intellectual property ( `` ip `` ) was $ 8.1 million and $ 5.0 million for 2013 and 2012 , respectively . the decrease related to ic product sales was primarily attributable to a 32 % decrease in units sold partially offset by a 7 % increase in average selling price ( `` asp `` ) . the decrease in units sold was primarily due to decreased sales into both the digital projector and advanced television markets , primarily due the continued impact of the macro-economic environment on end market demand . the increase in asp was primarily due to increased sales of our ultra high definition advanced television product , as a percentage of our overall units sold , which has a higher asp than our other advanced television products . during the third quarter of 2013 , we entered into an agreement with a third-party to provide a non-exclusive license for a package of our technologies and to provide certain services , under which we expect to receive a total of approximately $ 10.3 million . the license revenue recorded during 2013 was primarily due to achieving milestones under this agreement . we expect to record an additional $ 2.2 million in licensing revenue related to this agreement upon the achievement of additional milestones , most of which are expected to be achieved in the first half of 2014. licensing revenue recorded in 2012 related to licensing agreements that were entered into during 2011 and 2012 . 2012 v. 2011 net revenue decreased $ 4.9 million , or 8 % , from 2011 to 2012. revenue related to ic product sales was $ 54.7 million and $ 63.6 million for 2012 and 2011 , respectively . revenue related to the license of ip was $ 5.0 million and $ 1.0 million for 2012 and 2011 , respectively . the decrease in revenue related to ic product sales was primarily attributable to a 9 % decrease in asp and a 6 % decrease in units sold . the decrease in asp was primarily due to a greater proportion of unit sales of our latest generation motionengine® co-processor ics , which have lower price points than our other product lines . the decrease in asp was also attributable to reduced pricing on our earlier generation digital projector products . the decrease in units sold was primarily due to a decrease in sales of our earlier generation digital projector products due to competitive factors affecting customer transition to next generation digital projector solutions . 36 cost of revenue and gross profit cost of revenue and gross profit were as follows ( in thousands ) : replace_table_token_5_th 1 includes purchased materials , assembly , test , labor , employee benefits and royalties , all of which are related to sales of ic products . 2 includes direct labor costs and allocated overhead associated with licensing agreements . 3 includes charges to reduce inventory to lower of cost or market and a benefit for sales of previously written down inventory . 4 includes stock-based compensation and additional amortization of a non-cancelable prepaid royalty . story_separator_special_tag as a result , we provide for these returns in our reserve for sales returns and allowances . at the end of each reporting period , we estimate the reserve for returns based on historical experience and knowledge of any applicable events or transactions . certain of our distributors have stock rotation provisions in their distributor agreements , which allow them to return a limited amount of their in-stock inventory in exchange for products of equal value . at the end of each reporting period , we estimate the reserve for stock rotations based on historical experience and knowledge of any applicable events or transactions . certain distributors also have price protection provisions in their distributor agreements with us . under the price protection provisions , we grant distributors credit if they purchased product for a specific end customer and we subsequently lower the price to the end customer such that the distributor can no longer earn its negotiated margin on in-stock inventory . at the end of each reporting period , we estimate a reserve for price protection credits based on historical experience and knowledge of any applicable events or transactions . product warranties . we warrant that our products will be free from defects in materials and workmanship for a period of twelve months from delivery . warranty repairs are guaranteed for the remainder of the original warranty period . our warranty is limited to repairing or replacing products , or refunding the purchase price . at the end of each reporting period , we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions . while we engage in extensive product quality programs and processes , which include actively monitoring and evaluating the quality of our suppliers , should actual product failure rates or product replacement costs differ from our estimates , revisions to the estimated warranty liability may be required . allowance for doubtful accounts . we offer credit to customers after careful examination of their creditworthiness . we maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments . at the end of each reporting period , we estimate the allowance for doubtful accounts based on our account-by-account risk analysis of outstanding receivable balances . the determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status . past due status is based on invoice date and terms specific to each customer . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . inventory valuation . we value inventory at the lower of cost or market . in addition , we write down any obsolete , unmarketable or otherwise impaired inventory to net realizable value . the determination of obsolete or excess inventory requires us to estimate the future demand for our products . the estimate of future demand is compared to inventory levels to determine the amount , if any , of obsolete or excess inventory . if actual market conditions are less favorable than those we projected at the time the inventory was written down , additional inventory write-downs may be required . inventory valuation is re-evaluated on a quarterly basis . amortization of non-cancelable prepaid royalty . as of december 31 , 2013 , we had a prepaid non-cancelable royalty of $ 0.3 million for the license of ip from a third party . we amortize the prepaid based on our estimated average unit cost , which is dependent upon forecasted shipments of our products that contain the licensed ip . if our actual shipments are less than forecasted , the estimated amortization rate will increase in the future . 42 useful lives and recoverability of equipment and other long-lived assets . we evaluate the remaining useful life and recoverability of equipment and other assets , including identifiable intangible assets with definite lives , whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . if there is an indicator of impairment , we prepare an estimate of future , undiscounted cash flows expected to result from the use of each asset and its eventual disposition . if these cash flows are less than the carrying value of the asset , we adjust the carrying amount of the asset to its estimated fair value . while we have concluded that the carrying value of our long-lived assets is recoverable as of december 31 , 2013 , our analysis is dependent upon our estimates of future cash flows and our actual results may vary . stock-based compensation . we estimate the fair value of stock options using the black-scholes option pricing model , which requires certain estimates , including an expected forfeiture rate and expected term of options granted . we also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model . the resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period , which is generally the vesting period . when there are changes to the assumptions used in the option-pricing model , including fluctuations in the market price of our common stock , there will be variations in the calculated fair value of our future stock option awards , which results in variation in the compensation cost recognized . additionally , any modification of an award that increases its fair value will require us to recognize additional expense . income taxes . we record deferred income taxes for temporary differences between the amount of assets and liabilities for financial and tax reporting purposes and we record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized . we also

cash and cash equivalents total cash and cash equivalents increased $ 7.4 million from $ 13.4 million at december 31 , 2012 to $ 20.8 million at december 31 , 2013 . the increase resulted primarily from approximately $ 9.6 million in net proceeds from our underwritten registered public offering of our common stock ( see `` equity offering '' ) , a $ 3.0 million non-formula advance on our short-term line of credit and $ 0.5 million in proceeds from the issuance of common stock under our employee equity incentive plans . these increases were partially offset by $ 1.2 million used in operating activities due primarily to the net loss we recorded for the year ended december 31 , 2013 and $ 4.5 million used for purchases of property and equipment and licensed technology and payments on other asset financing . total cash and marketable securities decreased $ 1.7 million from $ 15.1 million at december 31 , 2011 to $ 13.4 million at december 31 , 2012 . the decrease resulted primarily from $ 3.9 million used for purchases of property and equipment and payments on other asset financing , partially offset by $ 1.8 million provided by operating activities due primarily to changes in working capital . as of december 31 , 2013 , our cash and cash equivalents balance of $ 20.8 million consisted of $ 0.4 million in cash and $ 20.4 million in u.s. denominated money market funds .


 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.
     ```cash and cash equivalents total cash and cash equivalents increased $ 7.4 million from $ 13.4 million at december 31 , 2012 to $ 20.8 million at december 31 , 2013 . the increase resulted primarily from approximately $ 9.6 million in net proceeds from our underwritten registered public offering of our common stock ( see `` equity offering '' ) , a $ 3.0 million non-formula advance on our short-term line of credit and $ 0.5 million in proceeds from the issuance of common stock under our employee equity incentive plans . these increases were partially offset by $ 1.2 million used in operating activities due primarily to the net loss we recorded for the year ended december 31 , 2013 and $ 4.5 million used for purchases of property and equipment and licensed technology and payments on other asset financing . total cash and marketable securities decreased $ 1.7 million from $ 15.1 million at december 31 , 2011 to $ 13.4 million at december 31 , 2012 . the decrease resulted primarily from $ 3.9 million used for purchases of property and equipment and payments on other asset financing , partially offset by $ 1.8 million provided by operating activities due primarily to changes in working capital . as of december 31 , 2013 , our cash and cash equivalents balance of $ 20.8 million consisted of $ 0.4 million in cash and $ 20.4 million in u.s. denominated money market funds .
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 Suspicious Activity Report : we have an intellectual property portfolio of 125 patents related to the visual display of digital image data . we focus our research and development efforts on developing video enhancement solutions for our target markets that increase performance , video quality and device functionality while reducing power consumed . we seek to expand our technology portfolio through internal development and co-development with business partners , and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets . pixelworks was founded in 1997 and is incorporated under the laws of the state of oregon . historically , significant portions of our revenue have been generated by sales to a relatively small number of end customers and distributors . we sell our products worldwide through a direct sales force , distributors and manufacturers ' representatives . we sell to distributors in china , europe , japan , korea , southeast asia , taiwan and the u.s , and our manufacturers ' representatives support some of our korean and european sales . our distributors typically provide engineering support to our end customers and often have valuable and established relationships with our end customers . in certain countries in which we operate , it is customary to sell to distributors . while distributor payment to us is not dependent upon the distributor 's ability to resell the product or to collect from the end customer , the distributors may provide longer payment terms to end customers than those we would offer . significant portions of our products are sold overseas . sales outside the u.s. accounted for approximately 83 % of revenue in 2013 , 90 % of revenue in 2012 and 96 % of revenue in 2011 . our integrators , branded manufacturers and branded suppliers incorporate our products into systems that are sold worldwide . all of our revenue to date has been denominated in u.s. dollars . 35 results of operations year ended december 31 , 2013 compared with year ended december 31 , 2012 , and year ended december 31 , 2012 compared with year ended december 31 , 2011. revenue , net net revenue was as follows ( in thousands ) : replace_table_token_4_th 2013 v. 2012 net revenue decreased $ 11.6 million , or 19 % , from 2012 to 2013. revenue related to ic product sales was $ 40.0 million and $ 54.7 million for 2013 and 2012 , respectively . revenue related to license of intellectual property ( `` ip `` ) was $ 8.1 million and $ 5.0 million for 2013 and 2012 , respectively . the decrease related to ic product sales was primarily attributable to a 32 % decrease in units sold partially offset by a 7 % increase in average selling price ( `` asp `` ) . the decrease in units sold was primarily due to decreased sales into both the digital projector and advanced television markets , primarily due the continued impact of the macro-economic environment on end market demand . the increase in asp was primarily due to increased sales of our ultra high definition advanced television product , as a percentage of our overall units sold , which has a higher asp than our other advanced television products . during the third quarter of 2013 , we entered into an agreement with a third-party to provide a non-exclusive license for a package of our technologies and to provide certain services , under which we expect to receive a total of approximately $ 10.3 million . the license revenue recorded during 2013 was primarily due to achieving milestones under this agreement . we expect to record an additional $ 2.2 million in licensing revenue related to this agreement upon the achievement of additional milestones , most of which are expected to be achieved in the first half of 2014. licensing revenue recorded in 2012 related to licensing agreements that were entered into during 2011 and 2012 . 2012 v. 2011 net revenue decreased $ 4.9 million , or 8 % , from 2011 to 2012. revenue related to ic product sales was $ 54.7 million and $ 63.6 million for 2012 and 2011 , respectively . revenue related to the license of ip was $ 5.0 million and $ 1.0 million for 2012 and 2011 , respectively . the decrease in revenue related to ic product sales was primarily attributable to a 9 % decrease in asp and a 6 % decrease in units sold . the decrease in asp was primarily due to a greater proportion of unit sales of our latest generation motionengine® co-processor ics , which have lower price points than our other product lines . the decrease in asp was also attributable to reduced pricing on our earlier generation digital projector products . the decrease in units sold was primarily due to a decrease in sales of our earlier generation digital projector products due to competitive factors affecting customer transition to next generation digital projector solutions . 36 cost of revenue and gross profit cost of revenue and gross profit were as follows ( in thousands ) : replace_table_token_5_th 1 includes purchased materials , assembly , test , labor , employee benefits and royalties , all of which are related to sales of ic products . 2 includes direct labor costs and allocated overhead associated with licensing agreements . 3 includes charges to reduce inventory to lower of cost or market and a benefit for sales of previously written down inventory . 4 includes stock-based compensation and additional amortization of a non-cancelable prepaid royalty . story_separator_special_tag as a result , we provide for these returns in our reserve for sales returns and allowances . at the end of each reporting period , we estimate the reserve for returns based on historical experience and knowledge of any applicable events or transactions . certain of our distributors have stock rotation provisions in their distributor agreements , which allow them to return a limited amount of their in-stock inventory in exchange for products of equal value . at the end of each reporting period , we estimate the reserve for stock rotations based on historical experience and knowledge of any applicable events or transactions . certain distributors also have price protection provisions in their distributor agreements with us . under the price protection provisions , we grant distributors credit if they purchased product for a specific end customer and we subsequently lower the price to the end customer such that the distributor can no longer earn its negotiated margin on in-stock inventory . at the end of each reporting period , we estimate a reserve for price protection credits based on historical experience and knowledge of any applicable events or transactions . product warranties . we warrant that our products will be free from defects in materials and workmanship for a period of twelve months from delivery . warranty repairs are guaranteed for the remainder of the original warranty period . our warranty is limited to repairing or replacing products , or refunding the purchase price . at the end of each reporting period , we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions . while we engage in extensive product quality programs and processes , which include actively monitoring and evaluating the quality of our suppliers , should actual product failure rates or product replacement costs differ from our estimates , revisions to the estimated warranty liability may be required . allowance for doubtful accounts . we offer credit to customers after careful examination of their creditworthiness . we maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments . at the end of each reporting period , we estimate the allowance for doubtful accounts based on our account-by-account risk analysis of outstanding receivable balances . the determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status . past due status is based on invoice date and terms specific to each customer . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . inventory valuation . we value inventory at the lower of cost or market . in addition , we write down any obsolete , unmarketable or otherwise impaired inventory to net realizable value . the determination of obsolete or excess inventory requires us to estimate the future demand for our products . the estimate of future demand is compared to inventory levels to determine the amount , if any , of obsolete or excess inventory . if actual market conditions are less favorable than those we projected at the time the inventory was written down , additional inventory write-downs may be required . inventory valuation is re-evaluated on a quarterly basis . amortization of non-cancelable prepaid royalty . as of december 31 , 2013 , we had a prepaid non-cancelable royalty of $ 0.3 million for the license of ip from a third party . we amortize the prepaid based on our estimated average unit cost , which is dependent upon forecasted shipments of our products that contain the licensed ip . if our actual shipments are less than forecasted , the estimated amortization rate will increase in the future . 42 useful lives and recoverability of equipment and other long-lived assets . we evaluate the remaining useful life and recoverability of equipment and other assets , including identifiable intangible assets with definite lives , whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . if there is an indicator of impairment , we prepare an estimate of future , undiscounted cash flows expected to result from the use of each asset and its eventual disposition . if these cash flows are less than the carrying value of the asset , we adjust the carrying amount of the asset to its estimated fair value . while we have concluded that the carrying value of our long-lived assets is recoverable as of december 31 , 2013 , our analysis is dependent upon our estimates of future cash flows and our actual results may vary . stock-based compensation . we estimate the fair value of stock options using the black-scholes option pricing model , which requires certain estimates , including an expected forfeiture rate and expected term of options granted . we also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model . the resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period , which is generally the vesting period . when there are changes to the assumptions used in the option-pricing model , including fluctuations in the market price of our common stock , there will be variations in the calculated fair value of our future stock option awards , which results in variation in the compensation cost recognized . additionally , any modification of an award that increases its fair value will require us to recognize additional expense . income taxes . we record deferred income taxes for temporary differences between the amount of assets and liabilities for financial and tax reporting purposes and we record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized . we also

