readers are urged to carefully review and consider the various disclosures made by us , which attempt to advise interested parties of the risks , uncertainties , and other factors that affect our business , set forth in detail in item 1a of part i , under the heading “ risk factors . ” the following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes to those statements contained elsewhere in this annual report on form 10-k. general overview we provide leading edge frozen shipping logistics solutions to the biotechnology and life science industries . since 2008 , through the combination of purpose-built proprietary hardware and software technologies and logistics knowhow known as “ total turnkey management ” we have provided total logistics management to the biotechnology and life sciences industries . our solutions are disruptive to “ old technologies ” and provide reliable , economic alternatives to currently existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells , cell lines , vaccines , diagnostic materials , semen and embryos for in-vitro fertilization , cord blood , bio-pharmaceuticals , infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures . in addition , our solutions can contribute to the reliability , efficiency , and effectiveness of clinical trials . cryoport express ® solutions include a cloud-based logistics management software branded as the cryoportal tm . the cryoportal supports the management of the entire shipment process through a single interface which includes initial order input , document preparation , customs clearance , courier management , shipment tracking , issue resolution , and delivery . cryoport 's total turnkey logistics solutions offer reliability , cost effectiveness , and convenience , while the use of recyclable and reusable components provides “ green ” , environmentally friendly solutions . the cryoportal provides an array of unique information dashboards and validation documentation for each and every shipment . integral to our logistics solutions are the cryoport liquid nitrogen dry vapor shippers ( cryoport express ® shippers ) which are cost-effective and reusable cryogenic transport containers ( patented vacuum flasks ) utilizing innovative liquid nitrogen ( ln2 ) “ dry vapor ” technology . cryoport express ® shippers are non-hazardous , iata ( international air transport association ) certified , and validated to maintain stable temperatures below minus 150° celsius for a 10-plus day dynamic shipment period . the company currently features two cryoport express ® shipper models , the standard dry shipper ( holding up to approximately 75-2.0 ml vials ) and the high volume dry shipper ( holding up to approximately 500-2.0 ml vials ) . cryoport express ® solutions include recording and retaining a fully documented “ chain-of-custody ” and , at the client 's option , “ chain-of-condition ” for every shipment , helping ensure that quality , safety , efficacy , and stability of shipped commodities are maintained . this recorded and archived information allows our customers to meet the exacting requirements necessary for scientific work and for regulatory purposes . cryoport express ® solutions can be used by customers , as a “ turnkey ” solution , through direct access to the cloud-based cryoportal , or by contacting cryoport client care for order entry tasks . cryoport provides 24/7/365 logistics services through its client care team and also provides complete training and process management services to support each client 's specific requirements . since 2010 , cryoport express ® solutions have been the company 's principal focus for development and commercialization . during fiscal year 2013 , the company approach to the market was adjusted to a solutions orientation and it expanded its service offering to address specific market needs in the biotechnology and life science industries . as a solutions provider , cryoport tailors frozen logistics solutions to client requirements . in addition to custom solutions , the company 's primary customer facing solutions offerings are as follows : cryoport express ® solution the fully outsourced turnkey logistics solution described herein . customer-staged solution cryoport ships an inventory of cryoport express ® shippers to the customer ( uncharged and in bulk ) enabling the customer to charge the shippers at their facility , process their orders through the cryoportal which permits cryoport client care to oversee the each shipment and the return the shippers to cryoport for cleaning , testing and refurbishing . cryoport client care provides the 24/7/365 logistics services utilizing its cryoportal logistics platform . 26 customer-managed solution cryoport ships a fully charged cryoport express ® shipper ( s ) to the customer enabling the customer to utilize its internal expertise to manage all or a portion of the logistics services . as with the above solutions , the shippers are returned to cryoport for cleaning , testing and refurbishing within a pre-determined time period . customer integrated logistics the cryoport logistics team provides a tailored and full range of logistics support solutions . in addition to tailoring a management solution , the robust , enterprise grade cryoportal is used to provide complete logistics services while enabling the customer to utilize their own packaging solutions or cryoport express ® shippers . cryoport can provide onsite logistics personnel allowing the customer to fully outsource their cold chain logistics needs to cryoport and focus on its core competencies . distribution partnerships “ powered by cryoport ” is an important partnership arrangements with integrators , freight forwarders and other logistics providers , enabling partners to expand their solutions offering by adding the total cryoport express ® shipper solution to their customer offering . story_separator_special_tag once established , write-downs are considered permanent adjustments to the cost basis of the obsolete or unmarketable inventories . our business plan focuses on per-use leasing of the shipping container and value-added services that will be used by us to provide an end-to-end and cost-optimized shipping solution . we provide shipping containers to our customers and charge a fee in exchange for the use of the container . our arrangements are similar to the accounting standard for leases since we convey the right to use the containers over a period of time . we retain title to the containers and provide our customers the use of the container for a specified shipping cycle . at the culmination of the customer 's shipping cycle , the container is returned to us . the company 's current inventory consists of accessories that are sold and shipped to customers along with loaned containers and not returned to the company with the containers at the culmination of the customer 's shipping cycle . property and equipment property and equipment are stated at cost , net of accumulated depreciation and amortization . depreciation and amortization of fixed assets are provided using the straight-line method over the following useful lives : cryoport express ® shippers 3 years furniture and fixtures 7 years machinery and equipment 5-7 years leasehold improvements lesser of lease term or estimated useful life betterments , renewals and extraordinary repairs that extend the lives of the assets are capitalized ; other repairs and maintenance charges are expensed as incurred . the cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts , and the gain or loss on disposition is recognized in current operations . intangible assets intangible assets comprise patents and trademarks and software development costs . the company capitalizes costs of obtaining patents and trademarks which are amortized , using the straight-line method over their estimated useful life of five years . the company capitalizes certain costs related to software developed for internal use . software development costs incurred during the preliminary or maintenance project stages are expensed as incurred , while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software , which is five years . capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants . 31 long-lived assets the company assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long-lived assets over their remaining lives can be recovered through projected undiscounted cash flows . the amount of long-lived asset impairment is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management . manufacturing fixed assets are subject to obsolescence potential as result of changes in customer demands , manufacturing process changes and changes in materials used . the company is not currently aware of any such changes that would cause impairment to the value of its manufacturing fixed assets . stock-based compensation we recognize compensation costs for all stock-based awards made to employees and directors . the fair value of stock-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period . we use the black-scholes option-pricing model to estimate the fair value of stock-based awards . the determination of fair value using the black-scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables , including expected stock price volatility , risk-free interest rate , expected dividends and projected employee stock option exercise behaviors . we estimate the expected term based on the contractual term of the awards and employees ' exercise and expected post-vesting termination behavior . derivative liabilities our issued and outstanding common stock purchase warrants previously treated as equity pursuant to the derivative treatment exemption were no longer afforded equity treatment , and the fair value of these common stock purchase warrants , some of which have exercise price reset features and some that were issued with convertible debt , was reclassified from equity to liability status as if these warrants were treated as a derivative liability since their date of issue . the common stock purchase warrants were not issued with the intent of effectively hedging any future cash flow , fair value of any asset , liability or any net investment in a foreign operation . the warrants do not qualify for hedge accounting , and as such , all future changes in the fair value of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire . these common stock purchase warrants do not trade in an active securities market , and as such , we estimate the fair value of these warrants using the black-scholes option pricing model . convertible debentures if a conversion feature of conventional convertible debt is not accounted for as a derivative instrument and provides for a rate of conversion that is below market value , this feature is characterized as a beneficial conversion feature ( “ bcf ” ) . a bcf is recorded by the company as a debt discount . in those circumstances , the convertible debt will be recorded net of the discount related to the bcf . the company amortizes the discount to interest expense over the life of the debt using the effective interest method . deferred financing costs deferred financing costs represent costs incurred in connection with the issuance of the convertible notes payable and private equity financing . deferred financing costs are being amortized over the term of the financing instrument on a straight-line basis , which approximates the effective interest method or netted against the gross proceeds received from equity financing . income taxes

liquidity and capital resources as of march 31 , 2013 , the company had cash and cash equivalents of $ 563,104 and negative working capital of $ 1,539,103. as of march 31 , 2012 , the company had cash and cash equivalents of $ 4,617,535 and working capital of $ 4,024,120. historically , we have financed our operations primarily through sales of our debt and equity securities . from march 2005 through march 2013 , we have received net proceeds of approximately $ 34.1 million from sales of our common stock and the issuance of promissory notes , warrants and debt . 29 for the year ended march 31 , 2013 , we used $ 4,785,144 of cash for operations primarily as a result of the net loss of $ 6,382,433 including non-cash expenses of $ 693,180 for the fair value of stock options and warrants . net operating losses decreased as a result of a decrease in headcount . offsetting the cash impact of our net operating loss ( excluding non-cash items ) was an increase in accounts payable and accrued expenses of $ 443,562. net cash used in operating activities also was offset by $ 2,525 for other working capital uses .


 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 as of march 31 , 2013 , the company had cash and cash equivalents of $ 563,104 and negative working capital of $ 1,539,103. as of march 31 , 2012 , the company had cash and cash equivalents of $ 4,617,535 and working capital of $ 4,024,120. historically , we have financed our operations primarily through sales of our debt and equity securities . from march 2005 through march 2013 , we have received net proceeds of approximately $ 34.1 million from sales of our common stock and the issuance of promissory notes , warrants and debt . 29 for the year ended march 31 , 2013 , we used $ 4,785,144 of cash for operations primarily as a result of the net loss of $ 6,382,433 including non-cash expenses of $ 693,180 for the fair value of stock options and warrants . net operating losses decreased as a result of a decrease in headcount . offsetting the cash impact of our net operating loss ( excluding non-cash items ) was an increase in accounts payable and accrued expenses of $ 443,562. net cash used in operating activities also was offset by $ 2,525 for other working capital uses .
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 Suspicious Activity Report : readers are urged to carefully review and consider the various disclosures made by us , which attempt to advise interested parties of the risks , uncertainties , and other factors that affect our business , set forth in detail in item 1a of part i , under the heading “ risk factors . ” the following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes to those statements contained elsewhere in this annual report on form 10-k. general overview we provide leading edge frozen shipping logistics solutions to the biotechnology and life science industries . since 2008 , through the combination of purpose-built proprietary hardware and software technologies and logistics knowhow known as “ total turnkey management ” we have provided total logistics management to the biotechnology and life sciences industries . our solutions are disruptive to “ old technologies ” and provide reliable , economic alternatives to currently existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells , cell lines , vaccines , diagnostic materials , semen and embryos for in-vitro fertilization , cord blood , bio-pharmaceuticals , infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures . in addition , our solutions can contribute to the reliability , efficiency , and effectiveness of clinical trials . cryoport express ® solutions include a cloud-based logistics management software branded as the cryoportal tm . the cryoportal supports the management of the entire shipment process through a single interface which includes initial order input , document preparation , customs clearance , courier management , shipment tracking , issue resolution , and delivery . cryoport 's total turnkey logistics solutions offer reliability , cost effectiveness , and convenience , while the use of recyclable and reusable components provides “ green ” , environmentally friendly solutions . the cryoportal provides an array of unique information dashboards and validation documentation for each and every shipment . integral to our logistics solutions are the cryoport liquid nitrogen dry vapor shippers ( cryoport express ® shippers ) which are cost-effective and reusable cryogenic transport containers ( patented vacuum flasks ) utilizing innovative liquid nitrogen ( ln2 ) “ dry vapor ” technology . cryoport express ® shippers are non-hazardous , iata ( international air transport association ) certified , and validated to maintain stable temperatures below minus 150° celsius for a 10-plus day dynamic shipment period . the company currently features two cryoport express ® shipper models , the standard dry shipper ( holding up to approximately 75-2.0 ml vials ) and the high volume dry shipper ( holding up to approximately 500-2.0 ml vials ) . cryoport express ® solutions include recording and retaining a fully documented “ chain-of-custody ” and , at the client 's option , “ chain-of-condition ” for every shipment , helping ensure that quality , safety , efficacy , and stability of shipped commodities are maintained . this recorded and archived information allows our customers to meet the exacting requirements necessary for scientific work and for regulatory purposes . cryoport express ® solutions can be used by customers , as a “ turnkey ” solution , through direct access to the cloud-based cryoportal , or by contacting cryoport client care for order entry tasks . cryoport provides 24/7/365 logistics services through its client care team and also provides complete training and process management services to support each client 's specific requirements . since 2010 , cryoport express ® solutions have been the company 's principal focus for development and commercialization . during fiscal year 2013 , the company approach to the market was adjusted to a solutions orientation and it expanded its service offering to address specific market needs in the biotechnology and life science industries . as a solutions provider , cryoport tailors frozen logistics solutions to client requirements . in addition to custom solutions , the company 's primary customer facing solutions offerings are as follows : cryoport express ® solution the fully outsourced turnkey logistics solution described herein . customer-staged solution cryoport ships an inventory of cryoport express ® shippers to the customer ( uncharged and in bulk ) enabling the customer to charge the shippers at their facility , process their orders through the cryoportal which permits cryoport client care to oversee the each shipment and the return the shippers to cryoport for cleaning , testing and refurbishing . cryoport client care provides the 24/7/365 logistics services utilizing its cryoportal logistics platform . 26 customer-managed solution cryoport ships a fully charged cryoport express ® shipper ( s ) to the customer enabling the customer to utilize its internal expertise to manage all or a portion of the logistics services . as with the above solutions , the shippers are returned to cryoport for cleaning , testing and refurbishing within a pre-determined time period . customer integrated logistics the cryoport logistics team provides a tailored and full range of logistics support solutions . in addition to tailoring a management solution , the robust , enterprise grade cryoportal is used to provide complete logistics services while enabling the customer to utilize their own packaging solutions or cryoport express ® shippers . cryoport can provide onsite logistics personnel allowing the customer to fully outsource their cold chain logistics needs to cryoport and focus on its core competencies . distribution partnerships “ powered by cryoport ” is an important partnership arrangements with integrators , freight forwarders and other logistics providers , enabling partners to expand their solutions offering by adding the total cryoport express ® shipper solution to their customer offering . story_separator_special_tag once established , write-downs are considered permanent adjustments to the cost basis of the obsolete or unmarketable inventories . our business plan focuses on per-use leasing of the shipping container and value-added services that will be used by us to provide an end-to-end and cost-optimized shipping solution . we provide shipping containers to our customers and charge a fee in exchange for the use of the container . our arrangements are similar to the accounting standard for leases since we convey the right to use the containers over a period of time . we retain title to the containers and provide our customers the use of the container for a specified shipping cycle . at the culmination of the customer 's shipping cycle , the container is returned to us . the company 's current inventory consists of accessories that are sold and shipped to customers along with loaned containers and not returned to the company with the containers at the culmination of the customer 's shipping cycle . property and equipment property and equipment are stated at cost , net of accumulated depreciation and amortization . depreciation and amortization of fixed assets are provided using the straight-line method over the following useful lives : cryoport express ® shippers 3 years furniture and fixtures 7 years machinery and equipment 5-7 years leasehold improvements lesser of lease term or estimated useful life betterments , renewals and extraordinary repairs that extend the lives of the assets are capitalized ; other repairs and maintenance charges are expensed as incurred . the cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts , and the gain or loss on disposition is recognized in current operations . intangible assets intangible assets comprise patents and trademarks and software development costs . the company capitalizes costs of obtaining patents and trademarks which are amortized , using the straight-line method over their estimated useful life of five years . the company capitalizes certain costs related to software developed for internal use . software development costs incurred during the preliminary or maintenance project stages are expensed as incurred , while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software , which is five years . capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants . 31 long-lived assets the company assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long-lived assets over their remaining lives can be recovered through projected undiscounted cash flows . the amount of long-lived asset impairment is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management . manufacturing fixed assets are subject to obsolescence potential as result of changes in customer demands , manufacturing process changes and changes in materials used . the company is not currently aware of any such changes that would cause impairment to the value of its manufacturing fixed assets . stock-based compensation we recognize compensation costs for all stock-based awards made to employees and directors . the fair value of stock-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period . we use the black-scholes option-pricing model to estimate the fair value of stock-based awards . the determination of fair value using the black-scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables , including expected stock price volatility , risk-free interest rate , expected dividends and projected employee stock option exercise behaviors . we estimate the expected term based on the contractual term of the awards and employees ' exercise and expected post-vesting termination behavior . derivative liabilities our issued and outstanding common stock purchase warrants previously treated as equity pursuant to the derivative treatment exemption were no longer afforded equity treatment , and the fair value of these common stock purchase warrants , some of which have exercise price reset features and some that were issued with convertible debt , was reclassified from equity to liability status as if these warrants were treated as a derivative liability since their date of issue . the common stock purchase warrants were not issued with the intent of effectively hedging any future cash flow , fair value of any asset , liability or any net investment in a foreign operation . the warrants do not qualify for hedge accounting , and as such , all future changes in the fair value of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire . these common stock purchase warrants do not trade in an active securities market , and as such , we estimate the fair value of these warrants using the black-scholes option pricing model . convertible debentures if a conversion feature of conventional convertible debt is not accounted for as a derivative instrument and provides for a rate of conversion that is below market value , this feature is characterized as a beneficial conversion feature ( “ bcf ” ) . a bcf is recorded by the company as a debt discount . in those circumstances , the convertible debt will be recorded net of the discount related to the bcf . the company amortizes the discount to interest expense over the life of the debt using the effective interest method . deferred financing costs deferred financing costs represent costs incurred in connection with the issuance of the convertible notes payable and private equity financing . deferred financing costs are being amortized over the term of the financing instrument on a straight-line basis , which approximates the effective interest method or netted against the gross proceeds received from equity financing . income taxes

