the enterprise products employing our technology would allow users in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair and sales data and orders within crm applications on a larger , more user-friendly interface . we also see potential for embedding the picop laser display engine in industrial products where our displays could be used for 3d measuring and digital signage , enhancing the overall user experience of these applications . we currently market and sell our showwx line of accessory pico projectors , which use our picop display engine through a network of global distributors . we continue to enter into a limited number of development agreements with commercial and u.s. government customers to develop advanced prototypes and demonstration units based on our light scanning technologies . we have incurred substantial losses since inception and expect to incur a substantial loss during the fiscal year ending december 31 , 2012. key accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent liabilities . we evaluate our estimates on an on-going basis . we base our estimates on historical experience , terms of existing contracts , our evaluation of trends in the display and image capture industries , information provided by our current and prospective customers and strategic partners , information available from other outside sources , and on various other assumptions we believe to be reasonable under the circumstances . the results 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 from these estimates under different assumptions or conditions . we believe the following key accounting policies require more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition . our product sales generally include acceptance provisions . we recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period , after which there are no rights of return . we have entered into agreements with resellers and distributors , as well as selling directly to the public . sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period , depending on our ability to reasonably estimate returns . some of the agreements with resellers and distributors contain price-protection clauses , and revenue is recognized net of these 17 amounts . sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return , or net of estimated returns and allowances . provisions are made for warranties at the time revenue is recorded . our quarterly revenue may vary substantially due to the timing of product orders from customers , production constraints and availability of components and raw materials . we recognize contract revenue as work progresses on long-term , cost plus fixed fee , and fixed price contracts using the percentage-of-completion method , which relies on estimates of total expected contract revenue and costs . we have developed processes that allow us to make reasonable estimates of the cost to complete a contract . when we begin work on the contract and at the end of each accounting period , we estimate the labor , material and other costs required to complete the contract using information provided by our technical team , project managers , vendors , outside consultants and others and compare these to costs incurred to date . since our contracts generally require some level of technology development to complete , the actual cost required to complete a contract can vary from our estimates . recognized revenues are subject to revisions as actual cost becomes certain . revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known . historically , we have made only immaterial revisions in the estimates to complete the contract at each reporting period . in the future , revisions in these estimates could significantly impact recognized revenue in any one reporting period . if the u.s. government cancels a contract , we would receive payment for work performed and costs committed to prior to the cancellation . we recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period , after which there are no rights of return . cost of revenue . cost of revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units , evaluation kits , showwx and rov units . direct costs include labor , materials and other costs incurred directly in performing on a contract or producing prototype units , evaluation kits , and accessory pico projector products . indirect costs include labor and other costs associated with operating our research and development department and building our manufacturing and technical capabilities and capacity . our overhead , which includes the costs of procuring , inspecting and storing material , and facility and depreciation costs , is allocated to inventory , cost of product revenue , cost of contract revenue , and research and development expense based on the proportion of direct material purchased for the respective activity . story_separator_special_tag replace_table_token_10_th pico projector revenue includes the sales of showwx which was launched in september 2009 and the showwx+ which was launched in november 2010. bar code revenue includes the sales of rov bar code scanners . the decrease in bar code revenue for the year ended december 31 , 2010 compared to the same period in 2009 was due to our decreased investment in our bar code product during 2009. the backlog of product orders at december 31 , 2010 was approximately $ 12.7 million , compared to $ 3.8 million at december 31 , 2009. contract revenue . replace_table_token_11_th we earn contract revenue from performance on development contracts with the u.s. government and commercial customers and from the sale of prototype units and evaluation kits based on our picop display engine . our contract revenue in a particular period is dependent upon when we enter into a contract , the value of the contracts we have entered into , and the availability of technical resources to perform work on the contracts . contract revenue from government and commercial contracts was substantially lower during 2010 than in 2009 due to reduced contract activity and lower beginning backlog in 2010 compared to the previous year . our backlog of development contracts , including orders for prototype units and evaluation kits , at december 31 , 2010 was $ 868,000 in government contracts and $ 81,000 in commercial contracts compared to $ 70,000 in government contracts and $ 30,000 in commercial contracts at december 31 , 2009. the increase in backlog from 2009 is primarily attributed to two contracts with the us government entered into in late 2010 . 23 cost of product revenue . replace_table_token_12_th our costs to produce accessory pico projector units during 2010 were substantially higher than product revenue . during the early phase of showwx production , our design and manufacturing processes were not sufficiently mature to support commercial production . we classified overhead cost allocated to the showwx as research and development expense until february 2010 , when we determined that the showwx design and production processes were mature enough to reach a level to support commercial production and since february 2010 , all manufacturing costs have been included in cost of revenue . cost of product revenue for 2010 and 2009 , included a write down of $ 9.6 million and $ 1.3 million , respectively , for inventory in stock at the end of the year . the write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect the then current estimated selling price for our inventory , as well as a reserve adjustment for materials which we expect would become obsolete as we introduced new products . the increase in cost of product revenue for 2010 , compared to 2009 , was primarily attributed to increased material costs associated with higher volumes of product shipments and increased inventory write downs compared to the prior year . the increase in the cost of product revenue as a percentage of product revenue in 2010 compared to the same period in 2009 was due to an increase in inventory write downs and a higher cost structure for the showwx product . cost of contract revenue . replace_table_token_13_th the cost of contract revenue was lower in 2010 than in 2009 as a result of the decreased activity on development contracts as we continue to focus our resources on commercialization of products based on the picop display engine . the cost of contract revenue as a percentage of revenue was lower in 2010 than in 2009 as a result of difference in the cost mix of the contracts during those periods . research and development expense . 2010 2009 $ change % change ( in thousands ) research and development $ 21,600 $ 24,577 $ ( 2,977 ) ( 12.1 ) the decrease in cost during 2010 , compared to the same period in 2009 , is primarily attributable to less direct material purchased for development programs and a decrease in overhead allocated to research and development . sales , marketing , general and administrative expense . 2010 2009 $ change % change ( in thousands ) sales , marketing , general and administrative $ 15,252 $ 14,540 $ 712 4.9 24 the increase in cost during 2010 compared to the same period in 2009 is primarily due to increased sales and marketing expense related to promoting our accessory pico projector products . interest income and expense . replace_table_token_14_th replace_table_token_15_th the decrease in interest income in 2010 from 2009 results primarily from lower average cash , investments securities balances , and interest rates . realized loss on sale of investment securities at december 31 , 2009 , we held $ 3.0 million par value student loan auction-rate securities ( slars ) , fair valued at $ 2.7 million . in march and december 2010 , one of the issuers redeemed a total of $ 200,000 of our slars at par value through a voluntary lottery redemption program . in december 2010 , we sold our remaining slars for proceeds of approximately $ 2.4 million and recorded a loss of $ 127,000 which is included in `` realized loss on sale of investment securities `` on the consolidated statement of operations . gain ( loss ) on derivative instruments , net . replace_table_token_16_th the change in `` gain ( loss ) on derivative instruments , net `` is primarily driven by the change in value of warrants we issued in 2005 to purchase 2,302,000 shares of common stock in connection with certain notes . the warrants met the definition of derivative instruments that must be accounted for as liabilities because we could not engage in certain corporate transactions affecting the common stock unless we made a cash payment to the holders of the warrants . we recorded changes in the fair values of the warrants in the statement of operations each

liquidity and capital resources we have incurred significant losses since inception . we have funded operations to date primarily through the sale of common stock , convertible preferred stock , warrants , the issuance of convertible debt and , to a lesser extent , from development contract revenues and product sales . at december 31 , 2011 , we had $ 13.1 million in cash , cash equivalents , and investment securities , available-for-sale . during 2011 , we lowered our cash used in operations significantly , through a combination of : sharing development and commercialization costs of the next-generation picop technology based on direct green lasers with our development partners ; limiting our investment into advancement of the current-generation picop technology based on synthetic green lasers ; moving product development to original design manufacturers lowering our working capital requirements through a restructuring of inventory cycles with major suppliers ; 25 reducing our operating costs through a 20 % workforce reduction completed in january 2011 , in addition to other measures . based on our current operating plan , we anticipate that we have sufficient cash and cash equivalents to fund our operations through june 2012. we will require additional cash to fund our operating plan past that time . we are introducing new products into an emerging market which creates significant uncertainty about our ability to accurately project revenue , costs and cash flows . if the level of sales anticipated by our financial plan is not achieved or our working capital requirements are higher than planned , we will need to raise additional cash sooner or take actions to reduce operating expenses . we plan to obtain additional cash through the issuance of equity or debt securities . there can be no assurance that additional cash will be available or that , if available , it will be available on terms acceptable to us on a timely basis . if adequate funds are not available on a timely basis we may be required to limit our operations substantially .


 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 have incurred significant losses since inception . we have funded operations to date primarily through the sale of common stock , convertible preferred stock , warrants , the issuance of convertible debt and , to a lesser extent , from development contract revenues and product sales . at december 31 , 2011 , we had $ 13.1 million in cash , cash equivalents , and investment securities , available-for-sale . during 2011 , we lowered our cash used in operations significantly , through a combination of : sharing development and commercialization costs of the next-generation picop technology based on direct green lasers with our development partners ; limiting our investment into advancement of the current-generation picop technology based on synthetic green lasers ; moving product development to original design manufacturers lowering our working capital requirements through a restructuring of inventory cycles with major suppliers ; 25 reducing our operating costs through a 20 % workforce reduction completed in january 2011 , in addition to other measures . based on our current operating plan , we anticipate that we have sufficient cash and cash equivalents to fund our operations through june 2012. we will require additional cash to fund our operating plan past that time . we are introducing new products into an emerging market which creates significant uncertainty about our ability to accurately project revenue , costs and cash flows . if the level of sales anticipated by our financial plan is not achieved or our working capital requirements are higher than planned , we will need to raise additional cash sooner or take actions to reduce operating expenses . we plan to obtain additional cash through the issuance of equity or debt securities . there can be no assurance that additional cash will be available or that , if available , it will be available on terms acceptable to us on a timely basis . if adequate funds are not available on a timely basis we may be required to limit our operations substantially .
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 Suspicious Activity Report : the enterprise products employing our technology would allow users in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair and sales data and orders within crm applications on a larger , more user-friendly interface . we also see potential for embedding the picop laser display engine in industrial products where our displays could be used for 3d measuring and digital signage , enhancing the overall user experience of these applications . we currently market and sell our showwx line of accessory pico projectors , which use our picop display engine through a network of global distributors . we continue to enter into a limited number of development agreements with commercial and u.s. government customers to develop advanced prototypes and demonstration units based on our light scanning technologies . we have incurred substantial losses since inception and expect to incur a substantial loss during the fiscal year ending december 31 , 2012. key accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent liabilities . we evaluate our estimates on an on-going basis . we base our estimates on historical experience , terms of existing contracts , our evaluation of trends in the display and image capture industries , information provided by our current and prospective customers and strategic partners , information available from other outside sources , and on various other assumptions we believe to be reasonable under the circumstances . the results 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 from these estimates under different assumptions or conditions . we believe the following key accounting policies require more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition . our product sales generally include acceptance provisions . we recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period , after which there are no rights of return . we have entered into agreements with resellers and distributors , as well as selling directly to the public . sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period , depending on our ability to reasonably estimate returns . some of the agreements with resellers and distributors contain price-protection clauses , and revenue is recognized net of these 17 amounts . sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return , or net of estimated returns and allowances . provisions are made for warranties at the time revenue is recorded . our quarterly revenue may vary substantially due to the timing of product orders from customers , production constraints and availability of components and raw materials . we recognize contract revenue as work progresses on long-term , cost plus fixed fee , and fixed price contracts using the percentage-of-completion method , which relies on estimates of total expected contract revenue and costs . we have developed processes that allow us to make reasonable estimates of the cost to complete a contract . when we begin work on the contract and at the end of each accounting period , we estimate the labor , material and other costs required to complete the contract using information provided by our technical team , project managers , vendors , outside consultants and others and compare these to costs incurred to date . since our contracts generally require some level of technology development to complete , the actual cost required to complete a contract can vary from our estimates . recognized revenues are subject to revisions as actual cost becomes certain . revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known . historically , we have made only immaterial revisions in the estimates to complete the contract at each reporting period . in the future , revisions in these estimates could significantly impact recognized revenue in any one reporting period . if the u.s. government cancels a contract , we would receive payment for work performed and costs committed to prior to the cancellation . we recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period , after which there are no rights of return . cost of revenue . cost of revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units , evaluation kits , showwx and rov units . direct costs include labor , materials and other costs incurred directly in performing on a contract or producing prototype units , evaluation kits , and accessory pico projector products . indirect costs include labor and other costs associated with operating our research and development department and building our manufacturing and technical capabilities and capacity . our overhead , which includes the costs of procuring , inspecting and storing material , and facility and depreciation costs , is allocated to inventory , cost of product revenue , cost of contract revenue , and research and development expense based on the proportion of direct material purchased for the respective activity . story_separator_special_tag replace_table_token_10_th pico projector revenue includes the sales of showwx which was launched in september 2009 and the showwx+ which was launched in november 2010. bar code revenue includes the sales of rov bar code scanners . the decrease in bar code revenue for the year ended december 31 , 2010 compared to the same period in 2009 was due to our decreased investment in our bar code product during 2009. the backlog of product orders at december 31 , 2010 was approximately $ 12.7 million , compared to $ 3.8 million at december 31 , 2009. contract revenue . replace_table_token_11_th we earn contract revenue from performance on development contracts with the u.s. government and commercial customers and from the sale of prototype units and evaluation kits based on our picop display engine . our contract revenue in a particular period is dependent upon when we enter into a contract , the value of the contracts we have entered into , and the availability of technical resources to perform work on the contracts . contract revenue from government and commercial contracts was substantially lower during 2010 than in 2009 due to reduced contract activity and lower beginning backlog in 2010 compared to the previous year . our backlog of development contracts , including orders for prototype units and evaluation kits , at december 31 , 2010 was $ 868,000 in government contracts and $ 81,000 in commercial contracts compared to $ 70,000 in government contracts and $ 30,000 in commercial contracts at december 31 , 2009. the increase in backlog from 2009 is primarily attributed to two contracts with the us government entered into in late 2010 . 23 cost of product revenue . replace_table_token_12_th our costs to produce accessory pico projector units during 2010 were substantially higher than product revenue . during the early phase of showwx production , our design and manufacturing processes were not sufficiently mature to support commercial production . we classified overhead cost allocated to the showwx as research and development expense until february 2010 , when we determined that the showwx design and production processes were mature enough to reach a level to support commercial production and since february 2010 , all manufacturing costs have been included in cost of revenue . cost of product revenue for 2010 and 2009 , included a write down of $ 9.6 million and $ 1.3 million , respectively , for inventory in stock at the end of the year . the write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect the then current estimated selling price for our inventory , as well as a reserve adjustment for materials which we expect would become obsolete as we introduced new products . the increase in cost of product revenue for 2010 , compared to 2009 , was primarily attributed to increased material costs associated with higher volumes of product shipments and increased inventory write downs compared to the prior year . the increase in the cost of product revenue as a percentage of product revenue in 2010 compared to the same period in 2009 was due to an increase in inventory write downs and a higher cost structure for the showwx product . cost of contract revenue . replace_table_token_13_th the cost of contract revenue was lower in 2010 than in 2009 as a result of the decreased activity on development contracts as we continue to focus our resources on commercialization of products based on the picop display engine . the cost of contract revenue as a percentage of revenue was lower in 2010 than in 2009 as a result of difference in the cost mix of the contracts during those periods . research and development expense . 2010 2009 $ change % change ( in thousands ) research and development $ 21,600 $ 24,577 $ ( 2,977 ) ( 12.1 ) the decrease in cost during 2010 , compared to the same period in 2009 , is primarily attributable to less direct material purchased for development programs and a decrease in overhead allocated to research and development . sales , marketing , general and administrative expense . 2010 2009 $ change % change ( in thousands ) sales , marketing , general and administrative $ 15,252 $ 14,540 $ 712 4.9 24 the increase in cost during 2010 compared to the same period in 2009 is primarily due to increased sales and marketing expense related to promoting our accessory pico projector products . interest income and expense . replace_table_token_14_th replace_table_token_15_th the decrease in interest income in 2010 from 2009 results primarily from lower average cash , investments securities balances , and interest rates . realized loss on sale of investment securities at december 31 , 2009 , we held $ 3.0 million par value student loan auction-rate securities ( slars ) , fair valued at $ 2.7 million . in march and december 2010 , one of the issuers redeemed a total of $ 200,000 of our slars at par value through a voluntary lottery redemption program . in december 2010 , we sold our remaining slars for proceeds of approximately $ 2.4 million and recorded a loss of $ 127,000 which is included in `` realized loss on sale of investment securities `` on the consolidated statement of operations . gain ( loss ) on derivative instruments , net . replace_table_token_16_th the change in `` gain ( loss ) on derivative instruments , net `` is primarily driven by the change in value of warrants we issued in 2005 to purchase 2,302,000 shares of common stock in connection with certain notes . the warrants met the definition of derivative instruments that must be accounted for as liabilities because we could not engage in certain corporate transactions affecting the common stock unless we made a cash payment to the holders of the warrants . we recorded changes in the fair values of the warrants in the statement of operations each

