globaltrak on april 3 , 2013 , we completed the acquisition of substantially all of the assets of globaltrak , a division of system planning corporation ( spc ) . the consideration paid to acquire globaltrak was $ 3.0 million in cash , subject to a final working capital adjustment , of which $ 0.5 million was deposited into an escrow account with a third party escrow agent to fund any indemnification obligation of spc to us , primarily for breaches of representations and warranties made by spc . during the three months ended september 30 , 2013 , we reached an agreement with spc for a final working capital adjustment of $ 0.1 million which was paid to us . as of december 31 , 2013 , this amount was recorded as a decrease to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . as a result of the acquisition of globaltrak , we recognized $ 2.5 million of goodwill and $ 0.5 million of intangible assets , which consist of technology , trade names and trademarks and customer lists . the results of operations of globaltrak are included in our consolidated results for the period subsequent to the acquisition date of april 3 , 2013. the acquisition of globaltrak gives us access to a customer base that includes military , international , government and commercial customers as well as expanded reach in growing regions , such as the middle east , asia and south america . 54 mobilenet , inc. on april 1 , 2013 , we completed the acquisition of substantially all of the assets of mobilenet , inc. ( mobilenet ) . the consideration paid by us at closing consisted of $ 3.2 million in cash , subject to a final working capital adjustment specified in the acquisition agreement , and the issuance of 329,344 shares of our common stock ( valued at $ 4.96 per share , which reflected our closing price of common stock on april 1 , 2013 ) , of which 164,672 shares of common stock were placed into an escrow account for up to 15 months from closing to fund any indemnification obligations of mobilenet to us , primarily for breaches of representations and warranties made by mobilenet . during the three months ended september 30 , 2013 , we reached an agreement with mobilenet for a final working capital adjustment of less than $ 0.1 million which was paid to mobilenet . as of december 31 , 2013 , this amount was recorded as an increase to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . in addition to the consideration paid at closing , the acquisition agreement provides for contingent consideration payable by us to mobilenet if service revenues attributable to the mobilenet business for either of the two one year earn-out periods , may 1 , 2013 through april 30 , 2014 and may 1 , 2014 through april 30 , 2015 , are in excess of the specified baseline amount . in that event , we have agreed to pay to mobilenet an amount equal to ( i ) 50 % of the first $ 2.0 million of such excess amount for the applicable earn-out period and ( ii ) 35 % of any amount of such excess amount for the applicable earn-out period which is greater than $ 2.0 million . up to 50 % of any potential earn-out amounts can be paid in common stock at our option . any shares of common stock to be issued will be based on the 20-day average closing price of the common stock prior to the last trading day of the earn-out period . at the acquisition date , we recorded a liability of $ 1.5 million for the estimated value of the earn-out amounts . any change in the fair value of the earn-out amounts subsequent to the acquisition date , including changes from events after the acquisition date , will be recognized in earnings in the period the estimated fair value changes . for the year ended december 31 , 2013 , the fair value of the earn-out amounts was decreased by $ 0.6 million which is recorded as a reduction to selling , general and administrative expenses in our consolidated statements of operations . as a result of the acquisition of mobilenet , we recognized $ 2.9 million of goodwill and $ 3.5 million of intangible assets , which consist of technology , trademarks and customer lists . the results of operations of mobilenet are included in our consolidated results for the period subsequent to the acquisition date of april 1 , 2013. the acquisition of mobilenet will enable us to offer mobilenet 's complete fleet management solution directly to original equipment manufacturers , dealers and fleet owners . the acquired goodwill from the acquisitions of sens , globaltrak and mobilenet will not be amortized for financial reporting purposes . however the acquired goodwill is tax deductible , and therefore amortized over fifteen years for income tax purposes . as such , deferred income tax expense and a deferred tax liability arise as a result of the difference in tax deductibility of this amount for tax and financial reporting purposes . the resulting deferred tax liability , which is expected to continue to increase over time and will remain on our balance sheet indefinitely unless there is an impairment of the goodwill . see note 4 to the consolidated financial statements for further discussion on the acquisitions of sens , globaltrak and mobilenet . story_separator_special_tag however , due to an anomaly on one of the falcon 9 's first stage engines , the rocket did not comply with a pre-planned international space station safety gate to allow it to execute the second burn . for this reason , the next-generation prototype was deployed into a lower orbit as the result of a pre-imposed safety check required by nasa . as a result of the lower than intended orbit , the prototype satellite de-orbited on october 10 , 2012 despite all available efforts to raise the orbit using the satellite 's on-board propulsion system . as a result , we recognized during the fourth quarter of 2012 an impairment charge of $ 9.8 million . on december 7 , 2012 , we received $ 10.0 million from its insurer in connection with the settlement of an insurance claim arising from the loss of the prototype satellite , which represented the full amount recoverable under the insurance policy . as a result , we recorded during the fourth quarter of 2012 an insurance recovery-satellite network of $ 10 million in our consolidated statements of operations . acquisition costs and loss on other investment acquisition-related costs directly relate to our acquisitions . these costs include professional services expenses . for the years ended december 31 , 2013 , 2012 and 2011 acquisition-related costs were $ 1.7 million , $ 0.7 million and $ 1.6 million , respectively . in connection with the acquisition of startrak , we recognized a loss of $ 0.3 million on the disposition of our investment in alanco for the difference between the fair value and the carrying value . the amount of the loss was recorded in other income ( expense ) in our consolidated statements of operations for year ended december 31 , 2011. operating expenses we incur engineering expenses associated with the operation of our communications system and the development and support of new applications , as well as sales , marketing and administrative expenses related to the operation of our business . as of december 31 , 2013 , we have 186 employees . critical accounting policies and estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally 60 accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , accounts receivable , accounting for business combinations , goodwill , satellite network and other equipment , long-lived assets , capitalized development costs , income taxes , warranty costs , loss contingencies and the value of securities underlying stock-based compensation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . revenue recognition we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable and collectibility is reasonably assured . our revenue recognition policy requires us to make significant judgments regarding the probability of collection of the resulting accounts receivable balance based on prior history and the creditworthiness of our customers . in instances where collection is not reasonably assured , revenue is recognized when we receive cash from the customer . revenues from the activation of subscriber communicators and sims are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreement with the customer , generally four years which is the estimated customer relationship period . revenues generated from monthly usage and administrative fees and engineering services are recognized when the services are rendered . revenues generated from extended warranty service agreements extending beyond the initial warranty period of one year are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreements generally two to five years . revenues generated from royalties under our subscriber communicator manufacturing agreements are recognized when we issue to a third party manufacturer upon request a unique serial number to be assigned to each unit manufactured by such third party manufacturer . revenues generated from the sale of satellite subscriber communicators , sims and other products are either recognized when the products are shipped or when customers accept the products , depending on the specific contractual terms . sales of subscriber communicators and sims and other items are not subject to return and title and risk of loss pass to the customer at the time of shipment . in arrangements that include multiple deliverables , we make significant estimates and judgments with the determination of revenue to be recognized . these significant estimates and judgments include identifying the various elements in an arrangement , determining if the delivered items have stand-alone value and the relative selling prices . accounts receivable accounts receivable are due in accordance with payment terms included in our negotiated contracts . amounts due are stated net of an allowance for doubtful accounts . accounts that are outstanding longer than the contractual payment terms are considered past due . we make ongoing assumptions and judgments

liquidity and capital resources overview our liquidity requirements arise from our working capital needs and to fund capital expenditures to support our current operations , and facilitate growth and expansion . we have financed our operations and expansion mostly from sales of our common stock through public offerings and private placements of debt , convertible redeemable preferred stock and common stock . we had net income in 2013 and 2012 , however we have incurred losses through 2011 and at december 31 , 2013 we have an accumulated deficit of $ 63.4 million . as of december 31 , 2013 , our primary source of liquidity consisted of cash and cash equivalents and restricted cash totaling $ 70.5 million . operating activities cash provided by our operating activities in 2013 was $ 8.8 million resulting from net income of $ 4.8 million , supplemented by non-cash items including $ 6.0 million for depreciation and amortization and $ 3.0 million for stock-based compensation , offset by a decrease of $ 1.0 million in the fair values of acquisitions-related contingent consideration . working capital activities primarily consisted of a net uses of cash of $ 2.7 million for an increase in accounts receivable primarily due to the increase in revenues , $ 1.4 million from a decrease in accounts payable and accrued expenses primarily related to timing for payments for professional fees , and $ 1.0 million from a decrease in deferred revenue primarily related to recognizing prepaid product revenues on the acquisition date of globaltrak into revenues upon customer acceptance . 69 cash provided by our operating activities in 2012 was $ 13.9 million resulting from net income of $ 8.9 million , supplemented by non-cash items including $ 4.8 million for depreciation and amortization and $ 1.8 million for stock-based compensation , offset by $ 1.2 million gain on extinguishment of debt and accounts payable . working capital activities primarily consisted of a net use of cash of $ 1.6 million for an increase in accounts receivable primarily due to the increase in revenues .


 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 overview our liquidity requirements arise from our working capital needs and to fund capital expenditures to support our current operations , and facilitate growth and expansion . we have financed our operations and expansion mostly from sales of our common stock through public offerings and private placements of debt , convertible redeemable preferred stock and common stock . we had net income in 2013 and 2012 , however we have incurred losses through 2011 and at december 31 , 2013 we have an accumulated deficit of $ 63.4 million . as of december 31 , 2013 , our primary source of liquidity consisted of cash and cash equivalents and restricted cash totaling $ 70.5 million . operating activities cash provided by our operating activities in 2013 was $ 8.8 million resulting from net income of $ 4.8 million , supplemented by non-cash items including $ 6.0 million for depreciation and amortization and $ 3.0 million for stock-based compensation , offset by a decrease of $ 1.0 million in the fair values of acquisitions-related contingent consideration . working capital activities primarily consisted of a net uses of cash of $ 2.7 million for an increase in accounts receivable primarily due to the increase in revenues , $ 1.4 million from a decrease in accounts payable and accrued expenses primarily related to timing for payments for professional fees , and $ 1.0 million from a decrease in deferred revenue primarily related to recognizing prepaid product revenues on the acquisition date of globaltrak into revenues upon customer acceptance . 69 cash provided by our operating activities in 2012 was $ 13.9 million resulting from net income of $ 8.9 million , supplemented by non-cash items including $ 4.8 million for depreciation and amortization and $ 1.8 million for stock-based compensation , offset by $ 1.2 million gain on extinguishment of debt and accounts payable . working capital activities primarily consisted of a net use of cash of $ 1.6 million for an increase in accounts receivable primarily due to the increase in revenues .
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 Suspicious Activity Report : globaltrak on april 3 , 2013 , we completed the acquisition of substantially all of the assets of globaltrak , a division of system planning corporation ( spc ) . the consideration paid to acquire globaltrak was $ 3.0 million in cash , subject to a final working capital adjustment , of which $ 0.5 million was deposited into an escrow account with a third party escrow agent to fund any indemnification obligation of spc to us , primarily for breaches of representations and warranties made by spc . during the three months ended september 30 , 2013 , we reached an agreement with spc for a final working capital adjustment of $ 0.1 million which was paid to us . as of december 31 , 2013 , this amount was recorded as a decrease to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . as a result of the acquisition of globaltrak , we recognized $ 2.5 million of goodwill and $ 0.5 million of intangible assets , which consist of technology , trade names and trademarks and customer lists . the results of operations of globaltrak are included in our consolidated results for the period subsequent to the acquisition date of april 3 , 2013. the acquisition of globaltrak gives us access to a customer base that includes military , international , government and commercial customers as well as expanded reach in growing regions , such as the middle east , asia and south america . 54 mobilenet , inc. on april 1 , 2013 , we completed the acquisition of substantially all of the assets of mobilenet , inc. ( mobilenet ) . the consideration paid by us at closing consisted of $ 3.2 million in cash , subject to a final working capital adjustment specified in the acquisition agreement , and the issuance of 329,344 shares of our common stock ( valued at $ 4.96 per share , which reflected our closing price of common stock on april 1 , 2013 ) , of which 164,672 shares of common stock were placed into an escrow account for up to 15 months from closing to fund any indemnification obligations of mobilenet to us , primarily for breaches of representations and warranties made by mobilenet . during the three months ended september 30 , 2013 , we reached an agreement with mobilenet for a final working capital adjustment of less than $ 0.1 million which was paid to mobilenet . as of december 31 , 2013 , this amount was recorded as an increase to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . in addition to the consideration paid at closing , the acquisition agreement provides for contingent consideration payable by us to mobilenet if service revenues attributable to the mobilenet business for either of the two one year earn-out periods , may 1 , 2013 through april 30 , 2014 and may 1 , 2014 through april 30 , 2015 , are in excess of the specified baseline amount . in that event , we have agreed to pay to mobilenet an amount equal to ( i ) 50 % of the first $ 2.0 million of such excess amount for the applicable earn-out period and ( ii ) 35 % of any amount of such excess amount for the applicable earn-out period which is greater than $ 2.0 million . up to 50 % of any potential earn-out amounts can be paid in common stock at our option . any shares of common stock to be issued will be based on the 20-day average closing price of the common stock prior to the last trading day of the earn-out period . at the acquisition date , we recorded a liability of $ 1.5 million for the estimated value of the earn-out amounts . any change in the fair value of the earn-out amounts subsequent to the acquisition date , including changes from events after the acquisition date , will be recognized in earnings in the period the estimated fair value changes . for the year ended december 31 , 2013 , the fair value of the earn-out amounts was decreased by $ 0.6 million which is recorded as a reduction to selling , general and administrative expenses in our consolidated statements of operations . as a result of the acquisition of mobilenet , we recognized $ 2.9 million of goodwill and $ 3.5 million of intangible assets , which consist of technology , trademarks and customer lists . the results of operations of mobilenet are included in our consolidated results for the period subsequent to the acquisition date of april 1 , 2013. the acquisition of mobilenet will enable us to offer mobilenet 's complete fleet management solution directly to original equipment manufacturers , dealers and fleet owners . the acquired goodwill from the acquisitions of sens , globaltrak and mobilenet will not be amortized for financial reporting purposes . however the acquired goodwill is tax deductible , and therefore amortized over fifteen years for income tax purposes . as such , deferred income tax expense and a deferred tax liability arise as a result of the difference in tax deductibility of this amount for tax and financial reporting purposes . the resulting deferred tax liability , which is expected to continue to increase over time and will remain on our balance sheet indefinitely unless there is an impairment of the goodwill . see note 4 to the consolidated financial statements for further discussion on the acquisitions of sens , globaltrak and mobilenet . story_separator_special_tag however , due to an anomaly on one of the falcon 9 's first stage engines , the rocket did not comply with a pre-planned international space station safety gate to allow it to execute the second burn . for this reason , the next-generation prototype was deployed into a lower orbit as the result of a pre-imposed safety check required by nasa . as a result of the lower than intended orbit , the prototype satellite de-orbited on october 10 , 2012 despite all available efforts to raise the orbit using the satellite 's on-board propulsion system . as a result , we recognized during the fourth quarter of 2012 an impairment charge of $ 9.8 million . on december 7 , 2012 , we received $ 10.0 million from its insurer in connection with the settlement of an insurance claim arising from the loss of the prototype satellite , which represented the full amount recoverable under the insurance policy . as a result , we recorded during the fourth quarter of 2012 an insurance recovery-satellite network of $ 10 million in our consolidated statements of operations . acquisition costs and loss on other investment acquisition-related costs directly relate to our acquisitions . these costs include professional services expenses . for the years ended december 31 , 2013 , 2012 and 2011 acquisition-related costs were $ 1.7 million , $ 0.7 million and $ 1.6 million , respectively . in connection with the acquisition of startrak , we recognized a loss of $ 0.3 million on the disposition of our investment in alanco for the difference between the fair value and the carrying value . the amount of the loss was recorded in other income ( expense ) in our consolidated statements of operations for year ended december 31 , 2011. operating expenses we incur engineering expenses associated with the operation of our communications system and the development and support of new applications , as well as sales , marketing and administrative expenses related to the operation of our business . as of december 31 , 2013 , we have 186 employees . critical accounting policies and estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally 60 accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , accounts receivable , accounting for business combinations , goodwill , satellite network and other equipment , long-lived assets , capitalized development costs , income taxes , warranty costs , loss contingencies and the value of securities underlying stock-based compensation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . revenue recognition we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable and collectibility is reasonably assured . our revenue recognition policy requires us to make significant judgments regarding the probability of collection of the resulting accounts receivable balance based on prior history and the creditworthiness of our customers . in instances where collection is not reasonably assured , revenue is recognized when we receive cash from the customer . revenues from the activation of subscriber communicators and sims are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreement with the customer , generally four years which is the estimated customer relationship period . revenues generated from monthly usage and administrative fees and engineering services are recognized when the services are rendered . revenues generated from extended warranty service agreements extending beyond the initial warranty period of one year are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreements generally two to five years . revenues generated from royalties under our subscriber communicator manufacturing agreements are recognized when we issue to a third party manufacturer upon request a unique serial number to be assigned to each unit manufactured by such third party manufacturer . revenues generated from the sale of satellite subscriber communicators , sims and other products are either recognized when the products are shipped or when customers accept the products , depending on the specific contractual terms . sales of subscriber communicators and sims and other items are not subject to return and title and risk of loss pass to the customer at the time of shipment . in arrangements that include multiple deliverables , we make significant estimates and judgments with the determination of revenue to be recognized . these significant estimates and judgments include identifying the various elements in an arrangement , determining if the delivered items have stand-alone value and the relative selling prices . accounts receivable accounts receivable are due in accordance with payment terms included in our negotiated contracts . amounts due are stated net of an allowance for doubtful accounts . accounts that are outstanding longer than the contractual payment terms are considered past due . we make ongoing assumptions and judgments

