overview historically , our business has focused on designing , developing and building specialty equipment for the automotive and heavy equipment industries . in october 2003 , our predecessor company was purchased by veri-tek international corp. , formerly known as quantum-veritek , inc. , an affiliate of quantum value partners , lp , pursuant to an asset purchase agreement . as a result of this transaction , we intend to implement a new growth strategy of expanding our testing services and launching manufacturing operations . while we will continue to sell specialty equipment , we intend to build on our experience in designing and building this equipment and our patented technology to provide axle testing services to automotive manufacturers . we also intend to become a manufacturer of precision driveshafts using a new manufacturing process that we have developed implementing our patented true vehicle running center shaft assembly system ( tvrc ) . sales of our assembly and testing equipment presently comprise most of our revenues . we have not derived material revenues to date from providing axle testing service or manufacturing precision driveshafts . 20 we derive most of our revenue under purchase orders from oems and tier 1 suppliers . the volume and timing of orders placed by our customers vary due to several factors , including variation in demand for our customers ' products , changes in our customers ' manufacturing strategies and general economic conditions . we recognize revenue from our specialty equipment using the percentage of completion method . we recognize revenue in our testing business when services are rendered . the testing business has not generated material revenue to date . the driveshaft manufacturing portion of our business will recognize revenue when products are shipped . to date , we have generated no revenue from selling our driveshaft manufacturing services . our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment . our driveshaft assembly products contain less sophisticated technology than our axle testing products , and therefore , have a lower cost of production . in addition , as we gain experience in manufacturing a certain kind of equipment , we usually achieve increased efficiencies , which result in lower labor costs and manufacturing overhead for that equipment . while we may achieve some level of increased efficiency with respect to manufacturing specialty equipment , our gross margins related thereto will likely continue to vary , as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers . as we implement our growth strategy of providing testing services and manufacturing precision driveshafts , we believe that our gross margins will stabilize , as the equipment that we produce will be less varied . on february 15 , 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $ 6.00 per share and on march 2 , 2005 we completed the sale of the underwriters ' over-allotment option of 375,000 shares of our common stock . net proceeds after underwriters ' discount and other expenses relating to the offering were approximately $ 15.1 million . results of operations the following table sets forth certain financial data for the three years ended december 31 , 2003 , 2004 and 2005. replace_table_token_4_th ( 1 ) the predecessor company was a subchapter s corporation and therefore did not recognize income tax expense . ( 2 ) the combined financial information presented represents the sum of the january 1 , 2003 through october 31 , 2003 period for the predecessor and the november 1 , 2003 through december 31 , 2003 period for the successor . no adjustments have been made to this data . ( 3 ) the combined financial information presented represents the sum of the january 1 , 2003 through october 31 , 2003 period for the predecessor and the november 1 , 2003 through december 31 , 2003 period for the successor . no adjustments have been made to this data . ( 4 ) not applicable because the successor was created on october 18 , 2003 and has a different capital structure than the predecessor . year ended december 31 , 2005 compared to year ended december 31 , 2004 revenue . our revenue decreased by $ 0.3 million , or 3.6 % , to $ 7.6 million for the period ended december 31 , 2005 from $ 7.9 million for the same period in 2004. this decrease was primarily the result of decreased orders for our specialty equipment . the majority of our revenue for the year ended december 31 , 2005 was derived from our specialty equipment business which 21 accounted for 88 % of our revenue . during 2005 our driveshaft , diesel engine , and axle products accounted for 36 % , 33 % , and 19 % of total revenue , respectively . for the same period in 2004 , our axle and transmission products accounted for 66 % and 12 % , respectively . during the 2005 period , we experienced a significant increase in orders for our driveshaft manufacturing machines as compared to the same period in 2004. in particular , we sold driveshaft manufacturing equipment to three korean tier 1 suppliers . one of these customers purchased a complete driveshaft assembly system , consisting of a synchrowelder machine , a driveshaft dynamic truing center , a joint assembly machine and a rollstaking machine . revenues from the sale of specific specialty equipment are affected by the needs and new platform launch schedules of our customers and their oem customers . cost of sales . story_separator_special_tag 43 , chapter 4 , previously stated that  under some circumstances , items such as idle facility expense , excessive spoilage , double freight , and rehandling costs may be so abnormal to require treatment as a current period charges  this statement requires that those items be recognized as current-period charges regardless of whether they meet the criterion of so abnormal . in addition , this statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities . the provisions of this statement will be effective for inventory costs during the fiscal years beginning after june 15 , 2005. veri-tek does not believe that the adoption of this statement will have a material impact on its financial condition or results of operations . on december 16 , 2004 , the fasb issued sfas no . 123 ( revised 2004 ) , share-based payment , which is a revision of sfas no . 123 , accounting for stock-based compensation ( sfas 123r ) . sfas 123r supersedes apb opinion no . 25 , accounting for stock issued to employees , and amends sfas 95 , statement of cash flows . generally , the approach in sfas 123r is similar to the approach described in sfas 123. however , sfas 123r requires all share-based payments to employees , including grants of employee stock options , to be recognized in the income statement based on their fair values . pro forma disclosure is no longer an alternative . sfas 123r must be adopted no later than july 1 , 2005. early adoption will be permitted in periods in which financial statements have not yet been issued . we adopted sfas 123r on july 1 , 2005. in december 2004 , the financial accounting standards board issued two fasb staff positions  fsp fas 109-1 application of fasb statement 109 accounting for income taxes to the tax deduction on qualified production activities provided by the american jobs creation act of 2004 , and fsb fas 109-2 accounting and disclosure guidance for the foreign earnings repatriation provision within the american jobs creation act of 2004. neither of these affected the company as it does not participate in the related activities . in march 2005 , the sec released staff accounting bulletin no 107 , share based payment ( sab 107 ) , which provides interpretive guidance related to the interaction between sfas 123 ( r ) and certain sec rules and regulations . it also provides the sec staff 's views regarding valuation of share-based payment regulations . in april 2005 , the sec amended the compliance dates for sfas 123 ( r ) , to allow companies to implement the standard at the beginning of the next fiscal year , instead of the next reporting period beginning after june 15 , 2005. management is currently evaluating the impact of sab 107 will have on our financial statements . in march 2005 , the fasb issued fasb interpretation no . 47 , accounting for conditional asset retirement obligations ( fin 47 ) . fin 47 provides guidance relating to the identification of and financial reporting for legal obligations to perform an asset retirement activity . the interpretation requires recognition of a liability for the fair value of a conditional asset retirement obligation when incurred if the liability 's fair value can be reasonably estimated . fin 47 also defines when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation . the provision is effective no later than the end of fiscal years ending after december 15 , 2005. the company will adopt fin 47 beginning the first quarter of fiscal year 2006 and does not believe the adoption will have a material impact on its consolidated financial position of results of operations or cash flows . in may 2005 , the fasb issued fasb statement no . 154 , accounting changes and error corrections. this new standard replaces apb opinion no . 20 , accounting changes , and fasb statement no . 3 , reporting accounting changes in interim financial statements ,  and represents another step in the fasb 's goal to converge its standards with those issued by the iasb . among other changes , statement 154 requires that a voluntary change in accounting principle be applied retrospectively with all prior period financial statements presented on the new accounting principle , unless it is impracticable to do so . statement 154 also provides that ( 1 ) a change in method of depreciating or amortizing a long-lived non-financial asset be accounted for a s a change in estimate ( prospectively ) that was effected by a change in accounting principle , and ( 2 ) correction of errors in 28 previously issued financial statements should be termed a restatement . the new standard is effective for accounting changes and correction of errors made in fiscal years beginning after december 15 , 2005. early adoption of this standard is permitted for accounting changes and correction of errors made in fiscal years beginning after june 1 , 2005. the company has evaluated the impact of the adoption of statement 154 and does not believe the impact will be significant to the company 's overall results of operation of financial position . in february of 2006 , the fasb issued sfas no . 155 , accounting for certain hybrid financial instruments , which is intended to simplify the accounting and improve the financial reporting of certain hybrid financial instruments . ( i.e . , derivatives embedded in other financial instruments ) . the statement amends sfas no . 133 , accounting for derivative instruments and hedging activities , and sfas no . 140 , accounting for transfers and servicing of financial assets and extinguishments of liabilities  a replacement of fasb statement no . 125. sfas no . 155 is effective for all financial

liquidity and capital resources our cash requirements have historically been satisfied through a combination of cash flow from operations and debt financings . working capital needs and capital expenditures are expected to continue to increase as we implement our growth strategy . anticipated increases in required working capital and capital expenditures are expected to be met from our cash flow from operations , revolving credit borrowings , and equipment financing . as of december 31 , 2005 , the company had net working capital of approximately $ 6.6 million . we used cash in operations of $ 4.3 million for the year ended december 31 , 2005. net cash used by continuing operations in the 2005 period was primarily the result of increases in accounts receivable , costs and estimated earnings in excess of billings , inventories and our loss from operations . we used cash in investing activities of $ 1.7 million for the year ended december 31 , 2005. this was primarily the result of costs capitalized by us as we built a series of driveshaft assembly equipment that we intend to own and operate in support of our business plan to commence manufacturing precision driveshafts . cash provided by financing activities of $ 8.1 million for the year ended december 31 , 2005 , was the result of our successful initial public offering offset by the expenses of the offering and the repayment of our revolving credit facility with a portion of the net proceeds from the offering . 24 as of december 31 , 2005 the company maintained an $ 8.0 million revolving credit facility with comerica bank n.a . ( comerica ) with a maturity date of january 2 , 2007 ( the credit facility ) . the amount of the credit facility was $ 9.3 million at december 31 , 2004. our credit facility is secured by substantially all of our assets and provides for the issuance of up to $ 5.0 million in standby or documentary letters of credit . our credit facility may be utilized for general corporate purposes , including working capital , and provides us with borrowing options for multi-currency loans .


 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 our cash requirements have historically been satisfied through a combination of cash flow from operations and debt financings . working capital needs and capital expenditures are expected to continue to increase as we implement our growth strategy . anticipated increases in required working capital and capital expenditures are expected to be met from our cash flow from operations , revolving credit borrowings , and equipment financing . as of december 31 , 2005 , the company had net working capital of approximately $ 6.6 million . we used cash in operations of $ 4.3 million for the year ended december 31 , 2005. net cash used by continuing operations in the 2005 period was primarily the result of increases in accounts receivable , costs and estimated earnings in excess of billings , inventories and our loss from operations . we used cash in investing activities of $ 1.7 million for the year ended december 31 , 2005. this was primarily the result of costs capitalized by us as we built a series of driveshaft assembly equipment that we intend to own and operate in support of our business plan to commence manufacturing precision driveshafts . cash provided by financing activities of $ 8.1 million for the year ended december 31 , 2005 , was the result of our successful initial public offering offset by the expenses of the offering and the repayment of our revolving credit facility with a portion of the net proceeds from the offering . 24 as of december 31 , 2005 the company maintained an $ 8.0 million revolving credit facility with comerica bank n.a . ( comerica ) with a maturity date of january 2 , 2007 ( the credit facility ) . the amount of the credit facility was $ 9.3 million at december 31 , 2004. our credit facility is secured by substantially all of our assets and provides for the issuance of up to $ 5.0 million in standby or documentary letters of credit . our credit facility may be utilized for general corporate purposes , including working capital , and provides us with borrowing options for multi-currency loans .
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 Suspicious Activity Report : overview historically , our business has focused on designing , developing and building specialty equipment for the automotive and heavy equipment industries . in october 2003 , our predecessor company was purchased by veri-tek international corp. , formerly known as quantum-veritek , inc. , an affiliate of quantum value partners , lp , pursuant to an asset purchase agreement . as a result of this transaction , we intend to implement a new growth strategy of expanding our testing services and launching manufacturing operations . while we will continue to sell specialty equipment , we intend to build on our experience in designing and building this equipment and our patented technology to provide axle testing services to automotive manufacturers . we also intend to become a manufacturer of precision driveshafts using a new manufacturing process that we have developed implementing our patented true vehicle running center shaft assembly system ( tvrc ) . sales of our assembly and testing equipment presently comprise most of our revenues . we have not derived material revenues to date from providing axle testing service or manufacturing precision driveshafts . 20 we derive most of our revenue under purchase orders from oems and tier 1 suppliers . the volume and timing of orders placed by our customers vary due to several factors , including variation in demand for our customers ' products , changes in our customers ' manufacturing strategies and general economic conditions . we recognize revenue from our specialty equipment using the percentage of completion method . we recognize revenue in our testing business when services are rendered . the testing business has not generated material revenue to date . the driveshaft manufacturing portion of our business will recognize revenue when products are shipped . to date , we have generated no revenue from selling our driveshaft manufacturing services . our operating profit for our specialty equipment depends on the mix between the cost of materials in the equipment and the cost of labor and manufacturing overhead allocated to the equipment . our driveshaft assembly products contain less sophisticated technology than our axle testing products , and therefore , have a lower cost of production . in addition , as we gain experience in manufacturing a certain kind of equipment , we usually achieve increased efficiencies , which result in lower labor costs and manufacturing overhead for that equipment . while we may achieve some level of increased efficiency with respect to manufacturing specialty equipment , our gross margins related thereto will likely continue to vary , as we must produce different kinds of equipment and each piece of equipment must meet certain specifications of our customers . as we implement our growth strategy of providing testing services and manufacturing precision driveshafts , we believe that our gross margins will stabilize , as the equipment that we produce will be less varied . on february 15 , 2005 we completed an initial public offering of 2,500,000 shares of our common stock at a price of $ 6.00 per share and on march 2 , 2005 we completed the sale of the underwriters ' over-allotment option of 375,000 shares of our common stock . net proceeds after underwriters ' discount and other expenses relating to the offering were approximately $ 15.1 million . results of operations the following table sets forth certain financial data for the three years ended december 31 , 2003 , 2004 and 2005. replace_table_token_4_th ( 1 ) the predecessor company was a subchapter s corporation and therefore did not recognize income tax expense . ( 2 ) the combined financial information presented represents the sum of the january 1 , 2003 through october 31 , 2003 period for the predecessor and the november 1 , 2003 through december 31 , 2003 period for the successor . no adjustments have been made to this data . ( 3 ) the combined financial information presented represents the sum of the january 1 , 2003 through october 31 , 2003 period for the predecessor and the november 1 , 2003 through december 31 , 2003 period for the successor . no adjustments have been made to this data . ( 4 ) not applicable because the successor was created on october 18 , 2003 and has a different capital structure than the predecessor . year ended december 31 , 2005 compared to year ended december 31 , 2004 revenue . our revenue decreased by $ 0.3 million , or 3.6 % , to $ 7.6 million for the period ended december 31 , 2005 from $ 7.9 million for the same period in 2004. this decrease was primarily the result of decreased orders for our specialty equipment . the majority of our revenue for the year ended december 31 , 2005 was derived from our specialty equipment business which 21 accounted for 88 % of our revenue . during 2005 our driveshaft , diesel engine , and axle products accounted for 36 % , 33 % , and 19 % of total revenue , respectively . for the same period in 2004 , our axle and transmission products accounted for 66 % and 12 % , respectively . during the 2005 period , we experienced a significant increase in orders for our driveshaft manufacturing machines as compared to the same period in 2004. in particular , we sold driveshaft manufacturing equipment to three korean tier 1 suppliers . one of these customers purchased a complete driveshaft assembly system , consisting of a synchrowelder machine , a driveshaft dynamic truing center , a joint assembly machine and a rollstaking machine . revenues from the sale of specific specialty equipment are affected by the needs and new platform launch schedules of our customers and their oem customers . cost of sales . story_separator_special_tag 43 , chapter 4 , previously stated that  under some circumstances , items such as idle facility expense , excessive spoilage , double freight , and rehandling costs may be so abnormal to require treatment as a current period charges  this statement requires that those items be recognized as current-period charges regardless of whether they meet the criterion of so abnormal . in addition , this statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities . the provisions of this statement will be effective for inventory costs during the fiscal years beginning after june 15 , 2005. veri-tek does not believe that the adoption of this statement will have a material impact on its financial condition or results of operations . on december 16 , 2004 , the fasb issued sfas no . 123 ( revised 2004 ) , share-based payment , which is a revision of sfas no . 123 , accounting for stock-based compensation ( sfas 123r ) . sfas 123r supersedes apb opinion no . 25 , accounting for stock issued to employees , and amends sfas 95 , statement of cash flows . generally , the approach in sfas 123r is similar to the approach described in sfas 123. however , sfas 123r requires all share-based payments to employees , including grants of employee stock options , to be recognized in the income statement based on their fair values . pro forma disclosure is no longer an alternative . sfas 123r must be adopted no later than july 1 , 2005. early adoption will be permitted in periods in which financial statements have not yet been issued . we adopted sfas 123r on july 1 , 2005. in december 2004 , the financial accounting standards board issued two fasb staff positions  fsp fas 109-1 application of fasb statement 109 accounting for income taxes to the tax deduction on qualified production activities provided by the american jobs creation act of 2004 , and fsb fas 109-2 accounting and disclosure guidance for the foreign earnings repatriation provision within the american jobs creation act of 2004. neither of these affected the company as it does not participate in the related activities . in march 2005 , the sec released staff accounting bulletin no 107 , share based payment ( sab 107 ) , which provides interpretive guidance related to the interaction between sfas 123 ( r ) and certain sec rules and regulations . it also provides the sec staff 's views regarding valuation of share-based payment regulations . in april 2005 , the sec amended the compliance dates for sfas 123 ( r ) , to allow companies to implement the standard at the beginning of the next fiscal year , instead of the next reporting period beginning after june 15 , 2005. management is currently evaluating the impact of sab 107 will have on our financial statements . in march 2005 , the fasb issued fasb interpretation no . 47 , accounting for conditional asset retirement obligations ( fin 47 ) . fin 47 provides guidance relating to the identification of and financial reporting for legal obligations to perform an asset retirement activity . the interpretation requires recognition of a liability for the fair value of a conditional asset retirement obligation when incurred if the liability 's fair value can be reasonably estimated . fin 47 also defines when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation . the provision is effective no later than the end of fiscal years ending after december 15 , 2005. the company will adopt fin 47 beginning the first quarter of fiscal year 2006 and does not believe the adoption will have a material impact on its consolidated financial position of results of operations or cash flows . in may 2005 , the fasb issued fasb statement no . 154 , accounting changes and error corrections. this new standard replaces apb opinion no . 20 , accounting changes , and fasb statement no . 3 , reporting accounting changes in interim financial statements ,  and represents another step in the fasb 's goal to converge its standards with those issued by the iasb . among other changes , statement 154 requires that a voluntary change in accounting principle be applied retrospectively with all prior period financial statements presented on the new accounting principle , unless it is impracticable to do so . statement 154 also provides that ( 1 ) a change in method of depreciating or amortizing a long-lived non-financial asset be accounted for a s a change in estimate ( prospectively ) that was effected by a change in accounting principle , and ( 2 ) correction of errors in 28 previously issued financial statements should be termed a restatement . the new standard is effective for accounting changes and correction of errors made in fiscal years beginning after december 15 , 2005. early adoption of this standard is permitted for accounting changes and correction of errors made in fiscal years beginning after june 1 , 2005. the company has evaluated the impact of the adoption of statement 154 and does not believe the impact will be significant to the company 's overall results of operation of financial position . in february of 2006 , the fasb issued sfas no . 155 , accounting for certain hybrid financial instruments , which is intended to simplify the accounting and improve the financial reporting of certain hybrid financial instruments . ( i.e . , derivatives embedded in other financial instruments ) . the statement amends sfas no . 133 , accounting for derivative instruments and hedging activities , and sfas no . 140 , accounting for transfers and servicing of financial assets and extinguishments of liabilities  a replacement of fasb statement no . 125. sfas no . 155 is effective for all financial

