there can be no assurance that we will be able to obtain additional funding , increase our sales or further control our operating costs in future periods ( see “ liquidity and capital resources ” ) . while the foregoing operational and market factors pose significant challenges for our business , we believe our current operating results , facilities-based voice and data network and established customer base favorably position us to leverage opportunities in our industry , provided we obtain the additional financing required to support our operations and growth strategy . 24 ( dollars in thousands , except per share amounts ) operating cash flow . our operating cash flow for the quarter ended december 31 , 2004 , was $ 1,337 , a 120 % improvement over operating cash flow of negative $ 6,740 for the same period 2003. our operating cash flow for the year ended december 31 , 2004 was negative $ 7,541 , a 45 % improvement over operating cash flow of negative $ 13,715 for the year ended december 31 , 2003. greater utilization of our network to drive higher margins . we have an extensive facilities-based network with the major portion of our footprint in the densest business communications corridor in the country . we continue to prioritize the sale of services provisioned directly over our network and the sale of t-1 and integrated voice and data services , all of which yield higher margins . new market opportunities . we believe that there continues to be significant revenue growth opportunities for our data/internet access services and our voip suite of integrated voice and data services . however , we will need additional funding to grow our sales channels , further expand our voice network and fund customer acquisitions in order to permit us to capitalize on these growth opportunities . in addition to pursuing additional financing to support our operations and fund cost-effective growth for our business , we continue to explore various strategic opportunities that would accelerate our growth and or improve our operating performance ( including potential customer acquisitions ) , and merger and acquisition opportunities . in many cases , we engage in discussions and negotiations regarding such potential transactions . our discussions and negotiations may not result in a transaction . further , if we effect any such transaction , it may not result in a positive impact upon our operating results or financial performance . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles . the preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , including the recoverability of tangible and intangible assets , disclosure of contingent assets and liabilities as of the date of the financial statements , and the reported amounts of revenues and expenses during the reporting periods . the markets for our services are characterized by intense competition , rapid technological development , regulatory and legislative changes , and frequent new product introductions , all of which could impact the future value of our assets and liabilities . we evaluate our estimates on an on-going basis . the most significant estimates relate to revenue recognition , goodwill , intangible assets and other long-lived assets , the allowance for doubtful accounts , the fair value of financial instruments and derivatives , contingencies and litigation . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ materially from those estimates . the following is a brief discussion of the critical accounting policies and methods and the judgments and estimates used by us in their application : 25 ( dollars in thousands , except per share amounts ) revenue recognition we recognize revenue in accordance with securities and exchange commission ( “ sec ” ) staff accounting bulletin ( “ sab ” ) no . 104 , “ revenue recognition , ” which outlines the four basic criteria that must be met before revenue can be recognized : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred or services have been rendered ; ( 3 ) the fee is fixed or determinable ; and ( 4 ) collectibility is reasonably assured . determination of criteria ( 3 ) and ( 4 ) are based on management 's judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectibility of those fees . subjectivity and uncertainties are inherent in making such judgments that could result in an overstatement or understatement of revenues . revenue is recognized pursuant to the terms of each contract on a monthly service fee basis , which varies based on the speed of the customer 's internet connection and the services ordered by the customer . the monthly fee includes phone line charges , internet access charges , the cost of any leased equipment installed at the customer 's site and fees for the other services we provide , as applicable . revenue that is billed in advance of the services provided is deferred until the services are rendered . revenue related to installation charges is also deferred and amortized to revenue over 18 months which is the expected customer relationship period . related direct costs incurred ( up to the amount of deferred revenue ) are also deferred and amortized to expense over 18 months . any excess of direct costs over installation charges are charged to expense as incurred . story_separator_special_tag our general and administrative expenses consist primarily of costs relating to human resources , finance , executive , administrative services , recruiting , insurance , public reporting , legal and auditing services , leased office facilities rent and bad debt expenses . general and administrative expenses for the year ended december 31 , 2004 , increased by approximately $ 401 ( 3 % ) to approximately $ 12,601 from approximately $ 12,200 for the year ended december 31 , 2003. the increase was primarily due to increases in professional services costs of approximately $ 1,430 and miscellaneous increases of approximately $ 33 , partially offset by lower bad debt expenses of approximately $ 903 and lower facilities costs of approximately $ 159. general and administrative expenses for the year ended december 31 , 2003 , increased by approximately $ 797 ( 7 % ) to approximately $ 12,200 from approximately $ 11,403 for the year ended december 31 , 2002. the increase was primarily due to increases in professional fees of approximately $ 750 , tax expenses of approximately $ 735 , and miscellaneous expenses of approximately $ 321. these increased expenses were partially offset by reductions in salaries and benefits of approximately $ 266 , bad debt expenses of approximately $ 481 , and insurance expenses of approximately $ 262. in march 2002 , we filed an application with the connecticut department of revenue services for research and development expenditure credits for the 1999 and 2000 calendar years . the credits were approved as a reduction against our corporation business tax . with regard to credits approved for the 2000 calendar year , we were entitled to elect a cash refund at 65 percent of the approved credit . we elected to receive the 2000 calendar year credit as a cash refund of approximately $ 1,301. the 1999 calendar year credit of approximately $ 671 is available as a carryforward offset to future state of connecticut business taxes . in july of 2002 , we received the first installment of the cash refund pertaining to the 2000 calendar year of approximately $ 1,000. upon receipt of the research and development credits , we were obligated to pay 32 ( dollars in thousands , except per share amounts ) approximately $ 402 to a professional service provider as a result of a contingent fee arrangement for professional services in connection with obtaining such credits . during 2002 , we recorded the $ 1,000 refund as a reduction in our state corporate franchise tax expenses which are included in general and administrative expenses , and the $ 402 contingent fee as professional services expenses , also included in general and administrative expenses . we received the second and third installments of approximately $ 150 each in 2003 and 2004 , respectively , which were recorded as reductions of general and administrative expenses in those respective years . sales and marketing . our sales and marketing expenses consist primarily of expenses for personnel , the development of our brand name , promotional materials , direct mail advertising and sales commissions and incentives . sales and marketing expenses for the year ended december 31 , 2004 , decreased by approximately $ 3,516 ( 41 % ) from approximately $ 8,642 for the year ended december 31 , 2003. the decrease was primarily attributable to reductions in salaries and benefits ( including commissions of approximately $ 2,457 ) stemming from our reductions in force , lower advertising expenses of approximately $ 881 and sundry other expenses of approximately $ 178. sales and marketing expenses for the year ended december 31 , 2003 , increased by approximately $ 1,673 ( 24 % ) to approximately $ 8,642 from approximately $ 6,969 for the year ended december 31 , 2002. the increase was primarily due to increases in salaries and benefits ( including commissions ) of approximately $ 1,685 and miscellaneous expenses of approximately $ 128 , which were partially offset by reductions in advertising expenses of approximately $ 140. stock compensation . we incurred non-cash stock compensation expenses as a result of the granting of stock and stock options to employees , directors and members of our former board of advisors with exercise prices per share below the fair values per share of our common stock at the dates of grant . the stock compensation , if vested , was charged immediately to expense , while non-vested compensation was amortized over the vesting period of the applicable options or stock , which was generally 48 months for initial grants and 36 months for subsequent grants . unvested options for terminated employees are cancelled and the value of such options is recorded as a reduction of deferred compensation with an offset to additional paid-in-capital . non-cash stock compensation expenses were approximately $ 0 , $ 438 and $ 1,228 for the years ended december 31 , 2004 , 2003 and 2002 , respectively . as of december 31 , 2004 and 2003 , respectively , there were no remaining unamortized balances of stock compensation expenses . as of december 31 , 2004 and 2003 , options to purchase 40,651,934 and 18,671,766 shares of common stock , respectively , were outstanding , which were exercisable at weighted average exercise prices of $ 0.70 and $ 1.07 per share , respectively . depreciation and amortization . depreciation and amortization is primarily attributable to the following : ( i ) depreciation of network and operations equipment and company-owned modems and routers installed at customer sites , ( ii ) depreciation of information systems and computer hardware and software , ( iii ) amortization and depreciation of the costs of obtaining , designing and building our collocation space and corporate facilities and ( iv ) amortization of intangible capitalized costs pertaining to acquired businesses and customer line acquisitions . depreciation and amortization for the year ended december 31 , 2004 , was approximately $ 13,132 or $ 3,227 ( 20

cash used in operating activities . in 2004 , 2003 and 2002 , net cash used in our operating activities was approximately $ 7,541 , $ 13,715 and $ 17,706 , respectively . net cash used in operating activities of $ 7,541 in 2004 decreased by $ 6,174 ( 45 % ) from $ 13,715 in 2003. the improvement in net cash used for operating activities was primarily due to lower net loss of approximately $ 11,768 primarily due to reduced operating expenses resulting from our cost containment efforts , partially offset by lower non-cash items including : depreciation and amortization , provisions for bad debt expense and sales credits and allowances , stock compensation , amortization of debt issuance costs , amortization of debt discount and gain on note settlement totaling approximately $ 4,645. also contributing to the improved operating cash flow was a net improvement in accounts receivable of approximately $ 6,742 ( due to a decrease in accounts receivable of approximately $ 589 in 2004 primarily resulting from lower revenues combined with improved collections , compared to an increase in 2003 of approximately $ 6,153 due to the acquisition of the nas assets ) . these improvements were partially offset by ( i ) lower net accrued expenses and accounts payable of approximately $ 3,776 ( caused by a decrease of approximately $ 2,689 in 2004 combined with an increase of approximately $ 1,087 in 2003 ) , principally due to payment of previously accrued network costs related to operation of the nas assets , ( ii ) a net decrease in deferred revenue of approximately $ 2,662 ( caused by approximately $ 1,268 decrease in 2004 due to deferred amortization of installation revenue exceeding deferred new installations versus an increase of approximately $ 1,394 in 2003 resulting from the acquisition of the nas assets ) , and ( iii ) a net increase in other assets of approximately $ 1,253 ( due to approximately $ 386 increase in 2004 compared to a decrease in 2003 of approximately $ 867 ) . cash used in investing 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.
     ```cash used in operating activities . in 2004 , 2003 and 2002 , net cash used in our operating activities was approximately $ 7,541 , $ 13,715 and $ 17,706 , respectively . net cash used in operating activities of $ 7,541 in 2004 decreased by $ 6,174 ( 45 % ) from $ 13,715 in 2003. the improvement in net cash used for operating activities was primarily due to lower net loss of approximately $ 11,768 primarily due to reduced operating expenses resulting from our cost containment efforts , partially offset by lower non-cash items including : depreciation and amortization , provisions for bad debt expense and sales credits and allowances , stock compensation , amortization of debt issuance costs , amortization of debt discount and gain on note settlement totaling approximately $ 4,645. also contributing to the improved operating cash flow was a net improvement in accounts receivable of approximately $ 6,742 ( due to a decrease in accounts receivable of approximately $ 589 in 2004 primarily resulting from lower revenues combined with improved collections , compared to an increase in 2003 of approximately $ 6,153 due to the acquisition of the nas assets ) . these improvements were partially offset by ( i ) lower net accrued expenses and accounts payable of approximately $ 3,776 ( caused by a decrease of approximately $ 2,689 in 2004 combined with an increase of approximately $ 1,087 in 2003 ) , principally due to payment of previously accrued network costs related to operation of the nas assets , ( ii ) a net decrease in deferred revenue of approximately $ 2,662 ( caused by approximately $ 1,268 decrease in 2004 due to deferred amortization of installation revenue exceeding deferred new installations versus an increase of approximately $ 1,394 in 2003 resulting from the acquisition of the nas assets ) , and ( iii ) a net increase in other assets of approximately $ 1,253 ( due to approximately $ 386 increase in 2004 compared to a decrease in 2003 of approximately $ 867 ) . cash used in investing activities .
```    
 Suspicious Activity Report : there can be no assurance that we will be able to obtain additional funding , increase our sales or further control our operating costs in future periods ( see “ liquidity and capital resources ” ) . while the foregoing operational and market factors pose significant challenges for our business , we believe our current operating results , facilities-based voice and data network and established customer base favorably position us to leverage opportunities in our industry , provided we obtain the additional financing required to support our operations and growth strategy . 24 ( dollars in thousands , except per share amounts ) operating cash flow . our operating cash flow for the quarter ended december 31 , 2004 , was $ 1,337 , a 120 % improvement over operating cash flow of negative $ 6,740 for the same period 2003. our operating cash flow for the year ended december 31 , 2004 was negative $ 7,541 , a 45 % improvement over operating cash flow of negative $ 13,715 for the year ended december 31 , 2003. greater utilization of our network to drive higher margins . we have an extensive facilities-based network with the major portion of our footprint in the densest business communications corridor in the country . we continue to prioritize the sale of services provisioned directly over our network and the sale of t-1 and integrated voice and data services , all of which yield higher margins . new market opportunities . we believe that there continues to be significant revenue growth opportunities for our data/internet access services and our voip suite of integrated voice and data services . however , we will need additional funding to grow our sales channels , further expand our voice network and fund customer acquisitions in order to permit us to capitalize on these growth opportunities . in addition to pursuing additional financing to support our operations and fund cost-effective growth for our business , we continue to explore various strategic opportunities that would accelerate our growth and or improve our operating performance ( including potential customer acquisitions ) , and merger and acquisition opportunities . in many cases , we engage in discussions and negotiations regarding such potential transactions . our discussions and negotiations may not result in a transaction . further , if we effect any such transaction , it may not result in a positive impact upon our operating results or financial performance . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles . the preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , including the recoverability of tangible and intangible assets , disclosure of contingent assets and liabilities as of the date of the financial statements , and the reported amounts of revenues and expenses during the reporting periods . the markets for our services are characterized by intense competition , rapid technological development , regulatory and legislative changes , and frequent new product introductions , all of which could impact the future value of our assets and liabilities . we evaluate our estimates on an on-going basis . the most significant estimates relate to revenue recognition , goodwill , intangible assets and other long-lived assets , the allowance for doubtful accounts , the fair value of financial instruments and derivatives , contingencies and litigation . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ materially from those estimates . the following is a brief discussion of the critical accounting policies and methods and the judgments and estimates used by us in their application : 25 ( dollars in thousands , except per share amounts ) revenue recognition we recognize revenue in accordance with securities and exchange commission ( “ sec ” ) staff accounting bulletin ( “ sab ” ) no . 104 , “ revenue recognition , ” which outlines the four basic criteria that must be met before revenue can be recognized : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred or services have been rendered ; ( 3 ) the fee is fixed or determinable ; and ( 4 ) collectibility is reasonably assured . determination of criteria ( 3 ) and ( 4 ) are based on management 's judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectibility of those fees . subjectivity and uncertainties are inherent in making such judgments that could result in an overstatement or understatement of revenues . revenue is recognized pursuant to the terms of each contract on a monthly service fee basis , which varies based on the speed of the customer 's internet connection and the services ordered by the customer . the monthly fee includes phone line charges , internet access charges , the cost of any leased equipment installed at the customer 's site and fees for the other services we provide , as applicable . revenue that is billed in advance of the services provided is deferred until the services are rendered . revenue related to installation charges is also deferred and amortized to revenue over 18 months which is the expected customer relationship period . related direct costs incurred ( up to the amount of deferred revenue ) are also deferred and amortized to expense over 18 months . any excess of direct costs over installation charges are charged to expense as incurred . story_separator_special_tag our general and administrative expenses consist primarily of costs relating to human resources , finance , executive , administrative services , recruiting , insurance , public reporting , legal and auditing services , leased office facilities rent and bad debt expenses . general and administrative expenses for the year ended december 31 , 2004 , increased by approximately $ 401 ( 3 % ) to approximately $ 12,601 from approximately $ 12,200 for the year ended december 31 , 2003. the increase was primarily due to increases in professional services costs of approximately $ 1,430 and miscellaneous increases of approximately $ 33 , partially offset by lower bad debt expenses of approximately $ 903 and lower facilities costs of approximately $ 159. general and administrative expenses for the year ended december 31 , 2003 , increased by approximately $ 797 ( 7 % ) to approximately $ 12,200 from approximately $ 11,403 for the year ended december 31 , 2002. the increase was primarily due to increases in professional fees of approximately $ 750 , tax expenses of approximately $ 735 , and miscellaneous expenses of approximately $ 321. these increased expenses were partially offset by reductions in salaries and benefits of approximately $ 266 , bad debt expenses of approximately $ 481 , and insurance expenses of approximately $ 262. in march 2002 , we filed an application with the connecticut department of revenue services for research and development expenditure credits for the 1999 and 2000 calendar years . the credits were approved as a reduction against our corporation business tax . with regard to credits approved for the 2000 calendar year , we were entitled to elect a cash refund at 65 percent of the approved credit . we elected to receive the 2000 calendar year credit as a cash refund of approximately $ 1,301. the 1999 calendar year credit of approximately $ 671 is available as a carryforward offset to future state of connecticut business taxes . in july of 2002 , we received the first installment of the cash refund pertaining to the 2000 calendar year of approximately $ 1,000. upon receipt of the research and development credits , we were obligated to pay 32 ( dollars in thousands , except per share amounts ) approximately $ 402 to a professional service provider as a result of a contingent fee arrangement for professional services in connection with obtaining such credits . during 2002 , we recorded the $ 1,000 refund as a reduction in our state corporate franchise tax expenses which are included in general and administrative expenses , and the $ 402 contingent fee as professional services expenses , also included in general and administrative expenses . we received the second and third installments of approximately $ 150 each in 2003 and 2004 , respectively , which were recorded as reductions of general and administrative expenses in those respective years . sales and marketing . our sales and marketing expenses consist primarily of expenses for personnel , the development of our brand name , promotional materials , direct mail advertising and sales commissions and incentives . sales and marketing expenses for the year ended december 31 , 2004 , decreased by approximately $ 3,516 ( 41 % ) from approximately $ 8,642 for the year ended december 31 , 2003. the decrease was primarily attributable to reductions in salaries and benefits ( including commissions of approximately $ 2,457 ) stemming from our reductions in force , lower advertising expenses of approximately $ 881 and sundry other expenses of approximately $ 178. sales and marketing expenses for the year ended december 31 , 2003 , increased by approximately $ 1,673 ( 24 % ) to approximately $ 8,642 from approximately $ 6,969 for the year ended december 31 , 2002. the increase was primarily due to increases in salaries and benefits ( including commissions ) of approximately $ 1,685 and miscellaneous expenses of approximately $ 128 , which were partially offset by reductions in advertising expenses of approximately $ 140. stock compensation . we incurred non-cash stock compensation expenses as a result of the granting of stock and stock options to employees , directors and members of our former board of advisors with exercise prices per share below the fair values per share of our common stock at the dates of grant . the stock compensation , if vested , was charged immediately to expense , while non-vested compensation was amortized over the vesting period of the applicable options or stock , which was generally 48 months for initial grants and 36 months for subsequent grants . unvested options for terminated employees are cancelled and the value of such options is recorded as a reduction of deferred compensation with an offset to additional paid-in-capital . non-cash stock compensation expenses were approximately $ 0 , $ 438 and $ 1,228 for the years ended december 31 , 2004 , 2003 and 2002 , respectively . as of december 31 , 2004 and 2003 , respectively , there were no remaining unamortized balances of stock compensation expenses . as of december 31 , 2004 and 2003 , options to purchase 40,651,934 and 18,671,766 shares of common stock , respectively , were outstanding , which were exercisable at weighted average exercise prices of $ 0.70 and $ 1.07 per share , respectively . depreciation and amortization . depreciation and amortization is primarily attributable to the following : ( i ) depreciation of network and operations equipment and company-owned modems and routers installed at customer sites , ( ii ) depreciation of information systems and computer hardware and software , ( iii ) amortization and depreciation of the costs of obtaining , designing and building our collocation space and corporate facilities and ( iv ) amortization of intangible capitalized costs pertaining to acquired businesses and customer line acquisitions . depreciation and amortization for the year ended december 31 , 2004 , was approximately $ 13,132 or $ 3,227 ( 20

