the principal amount of these debt securities and any accrued but unpaid interest generally will become due at maturity . we also earn interest income at market rates on investments in short-term marketable securities . from time to time , we generate income from time to time in the form of commitment , origination and structuring fees in connection with our investments . we recognize all such fees when earned . expenses . currently , our primary operating expenses include director fees and expenses , professional fees , compensation expense , and general and administrative fees . during 2011 , we incurred non-recurring expenses including settlement expenses , related to the various legal proceedings described in item 3 above , were $ 0.3 million and offering costs of $ 0.4 million . during 2010 , professional fees and other expenses incidental to our annual meeting and proxy contest were $ 0.7 million . prior to the internalization described above , our primary operating expenses consisted of investment advisory and management fees payable to mcca for its work in identifying , evaluating , negotiating , closing and monitoring investments . mcca provided us with the services of its investment professionals and our former administrator , equus capital administration company , inc. ( “ ecac ” ) provided us the services of its administrative staff as well as its investment professionals . mcca also provided and paid for the management services necessary to run the fund 's business . under the advisory agreement between mcca and the fund , mcca received a management fee equal to an annual rate of 2 % of our net assets , which was paid quarterly in arrears . under the advisory agreement , we also agreed to pay an incentive fee to mcca based on both realized investment income and net realized capital gains less unrealized capital depreciation . this incentive fee was equal to ( a ) 20 % of the excess , if any , of our net investment income for each quarter that exceeded a quarterly hurdle rate equal to 2 % ( 8 % annualized ) of our net assets , and ( b ) 20 % of our net realized capital gain less unrealized capital depreciation . the incentive fee calculated in clause ( b ) was paid on an annual basis . ecac provided administrative services to us for which we paid ecac an administrative fee . under the administration agreement we entered into with ecac on june 30 , 2005 , we reimbursed the ecac for its costs and expenses in performing its obligations and providing personnel and facilities up to a maximum of $ 0.5 million per year . pursuant to the internalization described above , our administration agreement with ecac expired on june 30 , 2009. consequently , all services previously provided to us by ecac are now performed internally by our employees or from time to time by other third parties . operating activities . we use cash to make new investments and follow-on investments in our existing portfolio companies . we record these investments at cost on the applicable trade date . realized gains or losses are computed using the specific identification method . on an ongoing basis , we carry our investments in our financial statements at fair value , as determined by our board of directors . see “ —significant accounting policies – valuation ” below . as of december 31 , 2011 , we had invested 50.2 % of our net assets in securities of portfolio companies that constituted qualifying investments under the 1940 act . at that time , we had invested 12.1 % by value in shares of common stock , 1.0 % in membership interests in limited liability companies , and 37.1 % in various debt instruments . also , as of december 31 , 2011 , we had invested the proceeds of borrowings on margin ( as discussed below under “ —financing activities ” ) in short-term , highly liquid investments , consisting primarily of u.s. treasury bills , interest-bearing bank accounts and certificates of deposit , that are , in our opinion , appropriate for the preservation of the principal amount of such instruments . under certain circumstances , we make follow-on investments in some of our portfolio companies . as of december 31 , 2011 , we had no outstanding commitments to our portfolio company investments . financing activities . from time to time , we use leverage to finance a portion of our investments . we then repay such debt from the sale of portfolio securities . under the 1940 act , we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior securities , subject to certain restrictions including an overall limitation on the amount of outstanding debt , or leverage , relative to equity of 1:1. because of the nature and size of our portfolio investments , we periodically borrow funds to make qualifying investments in order to maintain our qualification as a ric . during 2011 and 2010 , we borrowed such funds by accessing a margin account with a securities brokerage firm . we invest the proceeds of these margin loans in high-quality securities such as u.s. treasury securities until they are repaid . we refer to these high-quality investments as “ restricted assets ” because they are not generally available for investment in portfolio companies under the terms of borrowing . if , in the future , we can not borrow funds to make such qualifying investments at the end of any future quarter , we may not qualify as a ric and would become subject to corporate-level income tax on our net investment income and realized capital gains , if any . in addition , our distributions to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits . story_separator_special_tag the fund also incurred expenses related offering costs of $ 0.4 million and settlement costs of $ 0.3 million for 2011. as a result of the factors described above , net investment loss after expenses was ( $ 3.5 ) million for 2011 as compared to a net investment loss of ( $ 0.8 ) million for 2010. year ended december 31 , 2010 as compared to year ended december 31 , 2009 total income from portfolio securities declined to $ 2.9 million for 2010 from $ 3.7 million for 2009. this decrease was largely due to declines in interest bearing promissory notes during 2010 along with the restructuring of our holding in conglobal industries holding , inc. in the third quarter 2009 , resulting in the recognition of additional accrued interest for the period . during the first six months of 2009 , the former investment adviser received management fee compensation at an annual rate of 2 % of the net assets of the fund paid quarterly in arrears . such fees amounted to $ 0.7 million for the six months ended june 30 , 2009. we also reimbursed equus capital administration company , inc. ( “ ecac ” ) , the former administrator , for the costs and expenses incurred in performing its obligations and providing personnel and facilities under the fund 's administration agreement with ecac , provided that such reimbursements did not exceed $ 450,000 per year . ecac received $ 0.2 million for the six months ended june 30 , 2009. as a result of the internalization management , we assumed these obligations directly beginning july 1 , 2009. professional fees increased to $ 1.4 million for 2010 from $ 1.2 million for 2009. these increases were due to the increases in legal fees and solicitation costs associated with our annual shareholder meeting held in may 2010 and resulting proxy contest . compensation expense was $ 1.4 million for 2010 and $ 0.5 million in 2009 , respectively . the increase in compensation expense generated in 2010 is due to the internalization of management as of june 30 , 2009. accordingly , we paid no compensation prior to july 1 , 2009. as a result of the factors described above , net investment loss after expenses was ( $ 0.8 ) million for 2010 as compared to a net investment income of $ 0.2 million for 2009. summary of portfolio investment activity year ended december 31 , 2011 during the year ended december 31 , 2011 , we received $ 0.4 million from sovereign business forms , inc. in the form of principal payments and a distribution from equus media development company , llc ( “ emdc ” ) in the amount of $ 1.0 million . we sold our promissory notes in 1848 capital partners , llc ( “ 1848 ” ) , big apple entertainment partners , llc ( “ big apple ” ) , and london bridge entertainment partners , ltd ( “ london bridge ” ) and certain assets of riptide entertainment partners , llc 27 ( “ riptide ” ) in which we held a 64.67 % membership interest . all of these assets were sold to capital markets acquisition partners , llc for a combined price of $ 10 million , with $ 9.8 million allocated to the promissory notes held by the fund and $ 0.2 million to riptide . the fund allocated the proceeds to the promissory notes resulting in a realized loss of approximately $ 0.9 million at london bridge . in addition , the monies provided to riptide were sufficient to satisfy its outstanding liabilities , resulting in a value of $ 0. we also received $ 0.8 million in connection with the sale and redemption of our membership interest in rp & c international investments llc . during the year ended december 31 , 2011 , the fund had investment activity of $ 3.7 million in three portfolio companies . we made a follow-on investment of $ 0.3 million in spectrum management , llc . on april 27 , 2011 , we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408 4 % bonds due may 2012 ( “ bonds ” ) issued by orco germany s.a. , a commercial and multi-family residential real estate holding company and developer based in berlin . the consideration provided to the selling bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock of the fund . these shares are unregistered under the securities act of 1933. we received 8,890 of the bonds on april 27 , 2011. on may 9 , 2011 , one of these agreements was amended and restated to provide for an additional 45 days to deliver 2,518 of the bonds in exchange for providing to the fund approximately $ 1.6 million in cash as security for such delivery . as the remaining bonds were not delivered by the specified date , the cash collateral became free and clear property of the fund on june 23 , 2011. on september 30 , 2011 , we formed equus energy , llc ( “ equus energy ” ) , as a wholly-owned subsidiary of the fund , to make investments in companies in the energy sector , with particular emphasis on income-producing oil & gas properties . in december 2011 , we contributed $ 250,000 to the capital of equus energy . the following table includes significant investment activity during the year ended december 31 , 2011 ( in thousands ) : replace_table_token_3_th year ended december 31 , 2010 during the year ended december 31 , 2010 , we received payment in full for the trulite , inc. promissory note , in the amount of $ 2.6 million , which included interest income of $ 0.3 million , a distribution from equus media development company , llc of $ 1.0 million , and repayment of

liquidity and capital resources we generate cash primarily from maturities , sales of securities and borrowings , as well as capital gains realized upon the sale of portfolio investments . we use cash primarily to make additional investments , either in new companies or as follow-on investments in the existing portfolio companies and to pay the dividends to our stockholders . we are currently evaluating the impact of current market conditions on our portfolio company valuations and their ability to provide current income . we have followed valuation techniques in a consistent manner ; however , it is cognizant of current market conditions that might effect future valuations of portfolio securities . we believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to finance routine capital expenditures through the next 12 months . 25 year ended december 31 , 2011 as of december 31 , 2011 , we had total assets of $ 44.3 million , of which $ 19.2 million were invested in portfolio investments and $ 16.8 million were invested in cash and cash equivalents . among our portfolio investments , $ 14.1 million ( at fair value ) or 37.1 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2011. we impaired certain promissory notes issued by spectrum management , llc , having a fair value of $ 0.3 million . as of december 31 , 2011 , we also had $ 6.1 million of restricted cash and temporary cash investments , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 6.0 million was invested in u.s. treasury bills and $ 0.1 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 3 , 2012 and we subsequently repaid this margin . operating activities .


 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 we generate cash primarily from maturities , sales of securities and borrowings , as well as capital gains realized upon the sale of portfolio investments . we use cash primarily to make additional investments , either in new companies or as follow-on investments in the existing portfolio companies and to pay the dividends to our stockholders . we are currently evaluating the impact of current market conditions on our portfolio company valuations and their ability to provide current income . we have followed valuation techniques in a consistent manner ; however , it is cognizant of current market conditions that might effect future valuations of portfolio securities . we believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to finance routine capital expenditures through the next 12 months . 25 year ended december 31 , 2011 as of december 31 , 2011 , we had total assets of $ 44.3 million , of which $ 19.2 million were invested in portfolio investments and $ 16.8 million were invested in cash and cash equivalents . among our portfolio investments , $ 14.1 million ( at fair value ) or 37.1 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2011. we impaired certain promissory notes issued by spectrum management , llc , having a fair value of $ 0.3 million . as of december 31 , 2011 , we also had $ 6.1 million of restricted cash and temporary cash investments , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 6.0 million was invested in u.s. treasury bills and $ 0.1 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 3 , 2012 and we subsequently repaid this margin . operating activities .
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 Suspicious Activity Report : the principal amount of these debt securities and any accrued but unpaid interest generally will become due at maturity . we also earn interest income at market rates on investments in short-term marketable securities . from time to time , we generate income from time to time in the form of commitment , origination and structuring fees in connection with our investments . we recognize all such fees when earned . expenses . currently , our primary operating expenses include director fees and expenses , professional fees , compensation expense , and general and administrative fees . during 2011 , we incurred non-recurring expenses including settlement expenses , related to the various legal proceedings described in item 3 above , were $ 0.3 million and offering costs of $ 0.4 million . during 2010 , professional fees and other expenses incidental to our annual meeting and proxy contest were $ 0.7 million . prior to the internalization described above , our primary operating expenses consisted of investment advisory and management fees payable to mcca for its work in identifying , evaluating , negotiating , closing and monitoring investments . mcca provided us with the services of its investment professionals and our former administrator , equus capital administration company , inc. ( “ ecac ” ) provided us the services of its administrative staff as well as its investment professionals . mcca also provided and paid for the management services necessary to run the fund 's business . under the advisory agreement between mcca and the fund , mcca received a management fee equal to an annual rate of 2 % of our net assets , which was paid quarterly in arrears . under the advisory agreement , we also agreed to pay an incentive fee to mcca based on both realized investment income and net realized capital gains less unrealized capital depreciation . this incentive fee was equal to ( a ) 20 % of the excess , if any , of our net investment income for each quarter that exceeded a quarterly hurdle rate equal to 2 % ( 8 % annualized ) of our net assets , and ( b ) 20 % of our net realized capital gain less unrealized capital depreciation . the incentive fee calculated in clause ( b ) was paid on an annual basis . ecac provided administrative services to us for which we paid ecac an administrative fee . under the administration agreement we entered into with ecac on june 30 , 2005 , we reimbursed the ecac for its costs and expenses in performing its obligations and providing personnel and facilities up to a maximum of $ 0.5 million per year . pursuant to the internalization described above , our administration agreement with ecac expired on june 30 , 2009. consequently , all services previously provided to us by ecac are now performed internally by our employees or from time to time by other third parties . operating activities . we use cash to make new investments and follow-on investments in our existing portfolio companies . we record these investments at cost on the applicable trade date . realized gains or losses are computed using the specific identification method . on an ongoing basis , we carry our investments in our financial statements at fair value , as determined by our board of directors . see “ —significant accounting policies – valuation ” below . as of december 31 , 2011 , we had invested 50.2 % of our net assets in securities of portfolio companies that constituted qualifying investments under the 1940 act . at that time , we had invested 12.1 % by value in shares of common stock , 1.0 % in membership interests in limited liability companies , and 37.1 % in various debt instruments . also , as of december 31 , 2011 , we had invested the proceeds of borrowings on margin ( as discussed below under “ —financing activities ” ) in short-term , highly liquid investments , consisting primarily of u.s. treasury bills , interest-bearing bank accounts and certificates of deposit , that are , in our opinion , appropriate for the preservation of the principal amount of such instruments . under certain circumstances , we make follow-on investments in some of our portfolio companies . as of december 31 , 2011 , we had no outstanding commitments to our portfolio company investments . financing activities . from time to time , we use leverage to finance a portion of our investments . we then repay such debt from the sale of portfolio securities . under the 1940 act , we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior securities , subject to certain restrictions including an overall limitation on the amount of outstanding debt , or leverage , relative to equity of 1:1. because of the nature and size of our portfolio investments , we periodically borrow funds to make qualifying investments in order to maintain our qualification as a ric . during 2011 and 2010 , we borrowed such funds by accessing a margin account with a securities brokerage firm . we invest the proceeds of these margin loans in high-quality securities such as u.s. treasury securities until they are repaid . we refer to these high-quality investments as “ restricted assets ” because they are not generally available for investment in portfolio companies under the terms of borrowing . if , in the future , we can not borrow funds to make such qualifying investments at the end of any future quarter , we may not qualify as a ric and would become subject to corporate-level income tax on our net investment income and realized capital gains , if any . in addition , our distributions to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits . story_separator_special_tag the fund also incurred expenses related offering costs of $ 0.4 million and settlement costs of $ 0.3 million for 2011. as a result of the factors described above , net investment loss after expenses was ( $ 3.5 ) million for 2011 as compared to a net investment loss of ( $ 0.8 ) million for 2010. year ended december 31 , 2010 as compared to year ended december 31 , 2009 total income from portfolio securities declined to $ 2.9 million for 2010 from $ 3.7 million for 2009. this decrease was largely due to declines in interest bearing promissory notes during 2010 along with the restructuring of our holding in conglobal industries holding , inc. in the third quarter 2009 , resulting in the recognition of additional accrued interest for the period . during the first six months of 2009 , the former investment adviser received management fee compensation at an annual rate of 2 % of the net assets of the fund paid quarterly in arrears . such fees amounted to $ 0.7 million for the six months ended june 30 , 2009. we also reimbursed equus capital administration company , inc. ( “ ecac ” ) , the former administrator , for the costs and expenses incurred in performing its obligations and providing personnel and facilities under the fund 's administration agreement with ecac , provided that such reimbursements did not exceed $ 450,000 per year . ecac received $ 0.2 million for the six months ended june 30 , 2009. as a result of the internalization management , we assumed these obligations directly beginning july 1 , 2009. professional fees increased to $ 1.4 million for 2010 from $ 1.2 million for 2009. these increases were due to the increases in legal fees and solicitation costs associated with our annual shareholder meeting held in may 2010 and resulting proxy contest . compensation expense was $ 1.4 million for 2010 and $ 0.5 million in 2009 , respectively . the increase in compensation expense generated in 2010 is due to the internalization of management as of june 30 , 2009. accordingly , we paid no compensation prior to july 1 , 2009. as a result of the factors described above , net investment loss after expenses was ( $ 0.8 ) million for 2010 as compared to a net investment income of $ 0.2 million for 2009. summary of portfolio investment activity year ended december 31 , 2011 during the year ended december 31 , 2011 , we received $ 0.4 million from sovereign business forms , inc. in the form of principal payments and a distribution from equus media development company , llc ( “ emdc ” ) in the amount of $ 1.0 million . we sold our promissory notes in 1848 capital partners , llc ( “ 1848 ” ) , big apple entertainment partners , llc ( “ big apple ” ) , and london bridge entertainment partners , ltd ( “ london bridge ” ) and certain assets of riptide entertainment partners , llc 27 ( “ riptide ” ) in which we held a 64.67 % membership interest . all of these assets were sold to capital markets acquisition partners , llc for a combined price of $ 10 million , with $ 9.8 million allocated to the promissory notes held by the fund and $ 0.2 million to riptide . the fund allocated the proceeds to the promissory notes resulting in a realized loss of approximately $ 0.9 million at london bridge . in addition , the monies provided to riptide were sufficient to satisfy its outstanding liabilities , resulting in a value of $ 0. we also received $ 0.8 million in connection with the sale and redemption of our membership interest in rp & c international investments llc . during the year ended december 31 , 2011 , the fund had investment activity of $ 3.7 million in three portfolio companies . we made a follow-on investment of $ 0.3 million in spectrum management , llc . on april 27 , 2011 , we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408 4 % bonds due may 2012 ( “ bonds ” ) issued by orco germany s.a. , a commercial and multi-family residential real estate holding company and developer based in berlin . the consideration provided to the selling bondholders consisted of an aggregate of 1,700,000 newly issued shares of common stock of the fund . these shares are unregistered under the securities act of 1933. we received 8,890 of the bonds on april 27 , 2011. on may 9 , 2011 , one of these agreements was amended and restated to provide for an additional 45 days to deliver 2,518 of the bonds in exchange for providing to the fund approximately $ 1.6 million in cash as security for such delivery . as the remaining bonds were not delivered by the specified date , the cash collateral became free and clear property of the fund on june 23 , 2011. on september 30 , 2011 , we formed equus energy , llc ( “ equus energy ” ) , as a wholly-owned subsidiary of the fund , to make investments in companies in the energy sector , with particular emphasis on income-producing oil & gas properties . in december 2011 , we contributed $ 250,000 to the capital of equus energy . the following table includes significant investment activity during the year ended december 31 , 2011 ( in thousands ) : replace_table_token_3_th year ended december 31 , 2010 during the year ended december 31 , 2010 , we received payment in full for the trulite , inc. promissory note , in the amount of $ 2.6 million , which included interest income of $ 0.3 million , a distribution from equus media development company , llc of $ 1.0 million , and repayment of

