current modeling suggests that the east and central yaxtché deposit could be mined by open pit methods and that the west yaxtché , which makes up approximately 75 % of the deposit , could be mined by underground bulk mining methods . results of operations in this form 10-k we include the historical financial statements of the predecessor . these financial statements have been updated to reclassify the activity of the predecessor 's san cristóbal mine and related subsidiaries to discontinued operations as the result of the sale of the san cristóbal mine effective march 24 , 2009. because of the significant differences between the business operations of the predecessor and successor companies , the historical operating performance of the predecessor does not compare to the operating results of the current company and may not be indicative of our future performance . for the results of continuing operations discussed below , we compare the results from continuing operations for the year ended december 31 , 2011 of the successor to ( i ) results of the continuing operations of the successor for the year ended december 31 , 2010 , ( ii ) results of the continuing operations of the successor for the period from march 25 , 2009 through december 31 , 2009 and ( iii ) the results of continuing operations of the predecessor for the 83-day period ended march 24 , 2009. the results of operations of the san cristóbal mine and related subsidiaries that were sold during the first quarter of 2009 are aggregated and presented as discontinued operations of the predecessor for the 83-day period ended march 24 , 2009. the successor has no discontinued operations to report . continuing operations revenue from the sale of metals . we recorded $ 1.8 million of revenue for the year ended december 31 , 2011 , all from the sale of dore metal produced at the velardeña operations . there were no revenues recorded for the years ended december 31 , 2010 or december 31 , 2009. management service fees . we recorded no management services fees for the year ended december 31 , 2011 compared to $ 11.2 million of management service fees for the year ended december 31 , 2010. the management service fees for the year ended december 31 , 2010 are comprised of $ 5.5 million of fees , a $ 4.3 million early termination payment , resulting from the early termination of the agreement effective june 30 , 2010 , and $ 1.4 million for reimbursed withholding taxes . for the year ended december 31 , 2009 we recorded $ 12.5 million of management service fee income ( $ 11.1 million and $ 1.4 million for the successor and predecessor , respectively ) . the $ 11.1 million of revenue is primarily related to the san cristóbal management services agreement and is comprised of $ 8.7 million of fees , including $ 1.1 million for a bonus earned for 2009 under the terms of the agreement , and $ 1.3 million for reimbursed withholding taxes . 42 costs of metals sold . we recorded $ 6.1 million of costs applicable to sales for the year ended december 31 , 2011 , all related to sales from the velardeña operations in mexico . included in costs of metals sold was $ 3.8 million for a write down of finished goods inventory to its estimated net realizable value . there were no costs of metals sold recorded for the years ended december 31 , 2010 or december 31 , 2009. costs of services . we recorded no costs of services for the year ended december 31 , 2011 compared to $ 2.6 million of costs of services for the year ended december 31 , 2010 and $ 3.8 million of costs of services ( all related to the successor ) for the year ended december 31 , 2009. the costs of services for the years ended december 31 , 2010 and 2009 are comprised of reimbursed direct administrative expenses incurred by us related to the management services agreement . exploration expense . our exploration expense , including property holding costs and allocated administrative expenses , totaled $ 17.8 million for the year ended december 31 , 2011 , as compared to $ 13.4 million for the year ended december 31 , 2010 and $ 16.1 million ( $ 12.6 million and $ 3.5 million for successor and predecessor , respectively ) for the year ended december 31 , 2009. exploration expense for 2011 was incurred primarily in mexico , peru , and argentina ( excluding amounts spent on the yaxtché deposit at the el quevar project ) and includes property holding costs and costs incurred by our local exploration offices . exploration expense for 2010 and 2009 was incurred primarily in argentina , mexico and peru . exploration expense during 2011 was higher than in previous years due to increased drilling activity at advanced stage exploration projects , primarily in mexico and peru . velardeña project expense . during the year ended december 31 , 2011 , following the transaction , we incurred $ 0.6 million of expenses related to the expansion project at our velardeña operations in mexico , primarily related to development of the san mateo drift and engineering work . in addition to amounts expensed during 2011 , we incurred capital expenditures of approximately $ 2.7 million for mining and other equipment and had outstanding approximately $ 1.3 million of advance payments to equipment manufacturers at december 31 , 2011. el quevar project expense . in the first quarter of 2010 we began recording separately expenses related to the project evaluation work on the yaxtché deposit at our el quevar property in argentina . story_separator_special_tag the predecessor reported losses from discontinued operations related to the san cristóbal asset group , which was sold effective march 24 , 2009 , from discontinued operations for the year ended december 31 , 2009 of $ 4.2 million ( all related to the predecessor ) . see note 25 , `` discontinued operations , `` in our consolidated financial statements for detailed components of the losses from discontinued operations for each of the periods presented . story_separator_special_tag not established proven or probable reserves at any of our operating or exploration properties . mineral properties when and if we determine that a mineral property has proven and probable reserves , subsequent development costs are capitalized to mineral properties . when mineral properties are developed and operations commence , capitalized costs are charged to operations using the units-of-production method over proven and probable reserves . `` mineralized material `` as used in this annual report , although permissible under sec 's guide 7 , does not indicate `` reserves `` by sec standards . the company can not be certain that any part of the yaxtché deposit or the velardeña operations will ever be confirmed or converted into sec industry guide 7 compliant `` reserves . `` asset retirement obligations we record asset retirement obligations in accordance with asc 410 , `` asset retirement and environmental obligations `` ( `` asc 410 `` ) , which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs . according to asc 410 , the fair value of a liability for an asset retirement obligation ( `` aro `` ) is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made . an offsetting asset retirement cost is capitalized as part of the carrying value of the assets with which it is associated , and depreciated over the useful life of the asset . deferred taxes our deferred tax liability is primarily related to the ecu merger and was calculated by applying the mexico corporate income tax rate of 28 % to the difference between the fair value and the tax basis of the assets acquired and liabilities assumed . the ecu merger also resulted in the recognition of a deferred tax asset related to certain net operating loss carry forwards available in mexico . in accordance with asc 740 , the company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its consolidated balance sheets . goodwill goodwill is all related to the ecu merger and is primarily the result of the requirement to record a deferred tax liability for the difference between the fair value and the tax basis of the assets acquired and liabilities assumed at amounts that do not reflect fair value . the goodwill is not deductable for income tax purposes . business combinations we followed the acquisition method of accounting in accordance with asc 805 `` business combinations `` ( `` asc 805 `` ) related to the merger with ecu discussed above . mineral properties and the asset retirement obligation are recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company . the asset valuations were derived in accordance with the guidance of asc topic 820 `` fair value measurements and disclosures `` ( `` asc 820 `` ) using a combination of income , market and cost approach models depending on the asset . in applying the appropriate valuation model or models , the valuation consultants employed a variety of economic factors and market data , including discount rates , income tax rates , projections of future metals prices , and third party market surveys . 48 fresh start accounting due to our emergence from bankruptcy , effective march 25 , 2009 , we applied fresh start accounting in accordance with asc 805 `` business combinations `` ( `` asc 805 `` ) and asc 852 `` reorganizations `` ( `` asc 852 `` ) . asc 852 requires , among other things , the determination of the reorganization value of the successor upon emergence from bankruptcy . reorganization value approximates the fair value of the entity , before considering liabilities , and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring . the fair value of our assets was determined with the assistance of a third party valuation expert and a minerals engineering firm , which used available comparable market data and quotations , discounted cash flow analysis , and other methods in determining the appropriate asset fair values . table of contractual obligations the following table summarizes our contractual obligations at december 31 , 2011 : replace_table_token_11_th ( 1 ) the operating lease obligations are related primarily to our corporate headquarters office in golden , colorado , as well as other office leases associated with our exploration activities . the current corporate headquarters office lease expires in october , 2014. leases for the other offices expire at various times not exceeding four years . ( 2 ) we make annual maintenance payments of approximately $ 24,000 to the mexico federal government to maintain the velardeña operations concessions and $ 27,000 to the argentine federal government to maintain the el quevar project concessions . these payments include payments for both owned concessions and concessions under purchase option agreements . ( 3 ) in addition to the annual maintenance payments to the argentine and mexican federal governments , we make payments to the current concession owners for the properties under option agreements in order to retain title to the properties . amounts shown only include the concessions held for the velardeña operations . option payments associated with other concessions at the el quevar project are not included because the concessions do not involve areas that are vital to the project and the company has the

liquidity and capital resources at december 31 , 2011 our aggregate cash and short-term investments totaled $ 48.6 million , which were comprised entirely of cash and cash equivalents . our cash and short-term investment balance at december 31 , 2011 is lower than the $ 121.6 million in similar assets held at december 31 , 2010 due primarily to expenditures during the year of approximately $ 33.0 million on the el quevar project ; $ 20.9 million related to debt service ( including interest ) and the payoff of debt and sales advances from customers related to the ecu transaction ; $ 17.8 million on exploration ; $ 15.7 million on interim financing of ecu pending completion of the transaction to fund ongoing operating expenses , exploration and capital equipment at the velardeña operations and ecu corporate overhead and debt service ; $ 8.7 million on general and administrative activities , $ 7.2 million on transaction costs related to the ecu transaction , and $ 7.5 million on the velardeña operations following completion of the transaction . these expenditures were offset partially by $ 30.6 million of net proceeds received from the private placement to sentient , $ 11.3 million of net proceeds from the settlement of an arbitration claim , and the receipt of approximately $ 1.0 million from royalties and other income , including the sale of apogee common shares relating to the sale of the subsidiary holding the paca pulacayo exploration property . on october 7 , 2011 , the company completed a private placement ( the `` private placement '' ) to certain investment funds managed by the sentient group ( `` sentient '' ) of 4,118,150 shares of the company 's common stock at a price of $ 7.44 per share , resulting in net proceeds to the company of approximately $ 30.6 million after costs related to the transaction of less than $ 0.1 million . on december 5 , 2011 we repaid in full our term loan obligation assumed in the transaction to two investment funds managed by iig capital , llc . the repayment totaled approximately $ 15.0


 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 at december 31 , 2011 our aggregate cash and short-term investments totaled $ 48.6 million , which were comprised entirely of cash and cash equivalents . our cash and short-term investment balance at december 31 , 2011 is lower than the $ 121.6 million in similar assets held at december 31 , 2010 due primarily to expenditures during the year of approximately $ 33.0 million on the el quevar project ; $ 20.9 million related to debt service ( including interest ) and the payoff of debt and sales advances from customers related to the ecu transaction ; $ 17.8 million on exploration ; $ 15.7 million on interim financing of ecu pending completion of the transaction to fund ongoing operating expenses , exploration and capital equipment at the velardeña operations and ecu corporate overhead and debt service ; $ 8.7 million on general and administrative activities , $ 7.2 million on transaction costs related to the ecu transaction , and $ 7.5 million on the velardeña operations following completion of the transaction . these expenditures were offset partially by $ 30.6 million of net proceeds received from the private placement to sentient , $ 11.3 million of net proceeds from the settlement of an arbitration claim , and the receipt of approximately $ 1.0 million from royalties and other income , including the sale of apogee common shares relating to the sale of the subsidiary holding the paca pulacayo exploration property . on october 7 , 2011 , the company completed a private placement ( the `` private placement '' ) to certain investment funds managed by the sentient group ( `` sentient '' ) of 4,118,150 shares of the company 's common stock at a price of $ 7.44 per share , resulting in net proceeds to the company of approximately $ 30.6 million after costs related to the transaction of less than $ 0.1 million . on december 5 , 2011 we repaid in full our term loan obligation assumed in the transaction to two investment funds managed by iig capital , llc . the repayment totaled approximately $ 15.0
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 Suspicious Activity Report : current modeling suggests that the east and central yaxtché deposit could be mined by open pit methods and that the west yaxtché , which makes up approximately 75 % of the deposit , could be mined by underground bulk mining methods . results of operations in this form 10-k we include the historical financial statements of the predecessor . these financial statements have been updated to reclassify the activity of the predecessor 's san cristóbal mine and related subsidiaries to discontinued operations as the result of the sale of the san cristóbal mine effective march 24 , 2009. because of the significant differences between the business operations of the predecessor and successor companies , the historical operating performance of the predecessor does not compare to the operating results of the current company and may not be indicative of our future performance . for the results of continuing operations discussed below , we compare the results from continuing operations for the year ended december 31 , 2011 of the successor to ( i ) results of the continuing operations of the successor for the year ended december 31 , 2010 , ( ii ) results of the continuing operations of the successor for the period from march 25 , 2009 through december 31 , 2009 and ( iii ) the results of continuing operations of the predecessor for the 83-day period ended march 24 , 2009. the results of operations of the san cristóbal mine and related subsidiaries that were sold during the first quarter of 2009 are aggregated and presented as discontinued operations of the predecessor for the 83-day period ended march 24 , 2009. the successor has no discontinued operations to report . continuing operations revenue from the sale of metals . we recorded $ 1.8 million of revenue for the year ended december 31 , 2011 , all from the sale of dore metal produced at the velardeña operations . there were no revenues recorded for the years ended december 31 , 2010 or december 31 , 2009. management service fees . we recorded no management services fees for the year ended december 31 , 2011 compared to $ 11.2 million of management service fees for the year ended december 31 , 2010. the management service fees for the year ended december 31 , 2010 are comprised of $ 5.5 million of fees , a $ 4.3 million early termination payment , resulting from the early termination of the agreement effective june 30 , 2010 , and $ 1.4 million for reimbursed withholding taxes . for the year ended december 31 , 2009 we recorded $ 12.5 million of management service fee income ( $ 11.1 million and $ 1.4 million for the successor and predecessor , respectively ) . the $ 11.1 million of revenue is primarily related to the san cristóbal management services agreement and is comprised of $ 8.7 million of fees , including $ 1.1 million for a bonus earned for 2009 under the terms of the agreement , and $ 1.3 million for reimbursed withholding taxes . 42 costs of metals sold . we recorded $ 6.1 million of costs applicable to sales for the year ended december 31 , 2011 , all related to sales from the velardeña operations in mexico . included in costs of metals sold was $ 3.8 million for a write down of finished goods inventory to its estimated net realizable value . there were no costs of metals sold recorded for the years ended december 31 , 2010 or december 31 , 2009. costs of services . we recorded no costs of services for the year ended december 31 , 2011 compared to $ 2.6 million of costs of services for the year ended december 31 , 2010 and $ 3.8 million of costs of services ( all related to the successor ) for the year ended december 31 , 2009. the costs of services for the years ended december 31 , 2010 and 2009 are comprised of reimbursed direct administrative expenses incurred by us related to the management services agreement . exploration expense . our exploration expense , including property holding costs and allocated administrative expenses , totaled $ 17.8 million for the year ended december 31 , 2011 , as compared to $ 13.4 million for the year ended december 31 , 2010 and $ 16.1 million ( $ 12.6 million and $ 3.5 million for successor and predecessor , respectively ) for the year ended december 31 , 2009. exploration expense for 2011 was incurred primarily in mexico , peru , and argentina ( excluding amounts spent on the yaxtché deposit at the el quevar project ) and includes property holding costs and costs incurred by our local exploration offices . exploration expense for 2010 and 2009 was incurred primarily in argentina , mexico and peru . exploration expense during 2011 was higher than in previous years due to increased drilling activity at advanced stage exploration projects , primarily in mexico and peru . velardeña project expense . during the year ended december 31 , 2011 , following the transaction , we incurred $ 0.6 million of expenses related to the expansion project at our velardeña operations in mexico , primarily related to development of the san mateo drift and engineering work . in addition to amounts expensed during 2011 , we incurred capital expenditures of approximately $ 2.7 million for mining and other equipment and had outstanding approximately $ 1.3 million of advance payments to equipment manufacturers at december 31 , 2011. el quevar project expense . in the first quarter of 2010 we began recording separately expenses related to the project evaluation work on the yaxtché deposit at our el quevar property in argentina . story_separator_special_tag the predecessor reported losses from discontinued operations related to the san cristóbal asset group , which was sold effective march 24 , 2009 , from discontinued operations for the year ended december 31 , 2009 of $ 4.2 million ( all related to the predecessor ) . see note 25 , `` discontinued operations , `` in our consolidated financial statements for detailed components of the losses from discontinued operations for each of the periods presented . story_separator_special_tag not established proven or probable reserves at any of our operating or exploration properties . mineral properties when and if we determine that a mineral property has proven and probable reserves , subsequent development costs are capitalized to mineral properties . when mineral properties are developed and operations commence , capitalized costs are charged to operations using the units-of-production method over proven and probable reserves . `` mineralized material `` as used in this annual report , although permissible under sec 's guide 7 , does not indicate `` reserves `` by sec standards . the company can not be certain that any part of the yaxtché deposit or the velardeña operations will ever be confirmed or converted into sec industry guide 7 compliant `` reserves . `` asset retirement obligations we record asset retirement obligations in accordance with asc 410 , `` asset retirement and environmental obligations `` ( `` asc 410 `` ) , which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs . according to asc 410 , the fair value of a liability for an asset retirement obligation ( `` aro `` ) is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made . an offsetting asset retirement cost is capitalized as part of the carrying value of the assets with which it is associated , and depreciated over the useful life of the asset . deferred taxes our deferred tax liability is primarily related to the ecu merger and was calculated by applying the mexico corporate income tax rate of 28 % to the difference between the fair value and the tax basis of the assets acquired and liabilities assumed . the ecu merger also resulted in the recognition of a deferred tax asset related to certain net operating loss carry forwards available in mexico . in accordance with asc 740 , the company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its consolidated balance sheets . goodwill goodwill is all related to the ecu merger and is primarily the result of the requirement to record a deferred tax liability for the difference between the fair value and the tax basis of the assets acquired and liabilities assumed at amounts that do not reflect fair value . the goodwill is not deductable for income tax purposes . business combinations we followed the acquisition method of accounting in accordance with asc 805 `` business combinations `` ( `` asc 805 `` ) related to the merger with ecu discussed above . mineral properties and the asset retirement obligation are recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company . the asset valuations were derived in accordance with the guidance of asc topic 820 `` fair value measurements and disclosures `` ( `` asc 820 `` ) using a combination of income , market and cost approach models depending on the asset . in applying the appropriate valuation model or models , the valuation consultants employed a variety of economic factors and market data , including discount rates , income tax rates , projections of future metals prices , and third party market surveys . 48 fresh start accounting due to our emergence from bankruptcy , effective march 25 , 2009 , we applied fresh start accounting in accordance with asc 805 `` business combinations `` ( `` asc 805 `` ) and asc 852 `` reorganizations `` ( `` asc 852 `` ) . asc 852 requires , among other things , the determination of the reorganization value of the successor upon emergence from bankruptcy . reorganization value approximates the fair value of the entity , before considering liabilities , and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring . the fair value of our assets was determined with the assistance of a third party valuation expert and a minerals engineering firm , which used available comparable market data and quotations , discounted cash flow analysis , and other methods in determining the appropriate asset fair values . table of contractual obligations the following table summarizes our contractual obligations at december 31 , 2011 : replace_table_token_11_th ( 1 ) the operating lease obligations are related primarily to our corporate headquarters office in golden , colorado , as well as other office leases associated with our exploration activities . the current corporate headquarters office lease expires in october , 2014. leases for the other offices expire at various times not exceeding four years . ( 2 ) we make annual maintenance payments of approximately $ 24,000 to the mexico federal government to maintain the velardeña operations concessions and $ 27,000 to the argentine federal government to maintain the el quevar project concessions . these payments include payments for both owned concessions and concessions under purchase option agreements . ( 3 ) in addition to the annual maintenance payments to the argentine and mexican federal governments , we make payments to the current concession owners for the properties under option agreements in order to retain title to the properties . amounts shown only include the concessions held for the velardeña operations . option payments associated with other concessions at the el quevar project are not included because the concessions do not involve areas that are vital to the project and the company has the

