the following summaries of the merger and related transactions , the merger agreement and the other agreements entered into by the parties are qualified in their entirety by reference to the text of the agreements , certain of which are attached as exhibits hereto and are incorporated herein by reference . on november 4 , 2011 , pursuant to the terms of the merger agreement , the merger was consummated and merger sub was merged with and into sg building , with sg building surviving the merger and becoming a wholly-owned subsidiary , and only operating business of the company . in connection with the merger , ( i ) each of the 1,786,000 shares of sg building common stock which were outstanding immediately prior to the effective date of the merger were exchanged for 20.1851851852 shares of the company 's common stock and ( ii ) each of the 51,750 outstanding sg building warrants were cancelled and substituted with company warrants of a similar tenor to purchase an aggregate of 1,044,584 shares of the company 's common stock . also , in connection with the merger , 408,750 shares of the company 's common stock were issued for services related to the merger . 18 the number of shares of common stock of the company issued and outstanding immediately following the consummation of the merger on november 4 , 2011 is summarized as follows : number of shares sg building shares outstanding prior to the merger 1,786,000 share exchange ratio ( 20.1851851852 to 1 ) 20.1851851852 x 36,050,764 sg blocks shares outstanding prior to the merger 3,269,992 shares issued in connection with the merger 408,750 39,729,506 in connection with the merger agreement , the company entered into an escrow agreement with former shareholders of sg building in order to provide for any payment to which the company may be entitled with respect to post-closing rights to indemnification under the merger agreement . under the terms of the escrow agreement , the former stockholders of sg building placed in escrow ( with an independent escrow agent ) a total of 817,500 shares of common stock received by them in the merger . such shares of common stock held in escrow will be the company 's sole remedy for rights to indemnification under the merger agreement . claims for indemnification may be asserted by the company until the 5 th business day after the company has filed the annual report on form 10-k with the securities and exchange commission for the year ended december 31 , 2011. general sg building , our wholly-owned subsidiary and only operating business , offers the construction industry a safer , greener , faster , longer lasting and more economical alternative to conventional construction methods . sg building redesigns , repurposes , and converts heavy-gauge steel cargo shipping containers into safe green building blocks for commercial , industrial , and residential building construction . sg building is a provider of code engineered cargo shipping containers that it modifies and delivers to meet the growing demand for safe and green construction . rather than consuming new steel and lumber , sg building capitalizes on the structural engineering and design parameters a shipping container must meet and repurposes them for use in building . results of operations years ended december 31 , 2011 , 2010 and 2009 : year ended december 31 replace_table_token_1_th year ended december 31 , 2011 compared to the year ended december 31 , 2010 : revenue revenue for the year ended december 31 , 2011 was $ 3,964,796 compared to $ 1,916,565 for the year ended december 31 , 2010. this increase of $ 2,048,231 results from significantly increased block “ green steel ” sales to three customers ( approximately $ 2,400,000 of sales in 2011 ) offset by a decrease of approximately $ 200,000 in engineering and project management jobs during 2011 . 19 the decrease of sales in engineering and project management jobs resulted from sg building having fewer customers in these product areas with lower contracted dollar amounts than during 2010. the reduced number of customers and sales revenue in these product areas is due to management 's decision to focus resources on larger block “ green steel ” projects and thus forgoing proposing on additional engineering and project management jobs during 2011. cost of revenue and gross profit cost of revenue increased by $ 2,068,759 to $ 3,407,918 for the year ended december 31 , 2011 from $ 1,339,159 for the year ended december 31 , 2010. the increase in cost of revenue results from an increase in sales as well as a decrease in gross profit percentage . gross profit decreased to $ 556,878 for the year ended december 31 , 2011 from a gross profit of $ 577,406 for the year ended december 31 , 2010. the gross profit percentage was 14.1 % for the year ended december 31 , 2011 as compared to a gross profit percentage of 30.1 % for the year ended december 31 , 2010. this decrease in gross profit percentage results from a decrease in gross profit percent in block “ green steel ” sales ( from 32.5 % in 2010 to 14.8 % in 2011 ) , engineering ( from 42.4 % in 2010 to 14 % in 2011 ) and project management ( from 20.9 % in 2010 to 7.4 % in 2011 ) projects . the decrease in gross profit percentage for block “ green steel ” sales and engineering projects resulted from jobs that were priced below our normal margin in order to obtain product acceptance and building approvals as well as a single block “ green steel ” sale job for approximately $ 1,400,000 which had a gross profit percentage of 5 % . story_separator_special_tag accordingly no warranty reserve is considered necessary for any of the periods presented . sg building also supplies repurposed containers to its customers . in these cases , sg building serves as a supplier to its customers for standard and made to order products that it sells at fixed prices . revenue from these contracts is generally recognized when the products have been delivered to the customer , accepted by the customer and collection is reasonably assured . revenue is recognized upon completion of the following : an order for product is received from a customer ; written approval for the payment schedule is received from the customer and the corresponding required deposit or payments are received ; a common carrier signs documentation accepting responsibility for the unit as agent for the customer ; and the unit is delivered to the customer 's shipping point . amounts billed to customers in a sales transaction for shipping and handling are classified as revenue . products sold are generally paid for based on schedules provided for in each individual customer contract including upfront deposits and progress payments as products are being manufactured . funds received in advance of meeting the criteria for revenue recognition are deferred and are recorded as revenue when they are earned . new accounting pronouncements in january 2010 , fasb issued asu no . 2010-06 – improving disclosures about fair value measurements . this update provides amendments to subtopic 820-10 that requires new disclosure as follows : 1 ) transfers in and out of levels 1 and 2 fair value measurements . a reporting entity should disclose separately the amounts of significant transfers in and out of level 1 and level 2 fair value measurements and describe the reasons for the transfers . 2 ) activity in level 3 fair value measurements . in the reconciliation for fair value measurements using significant unobservable inputs ( level 3 ) , a reporting entity should present separately information about purchases , sales , issuances , and settlements ( that is , on a gross basis rather than as one net number ) . this update provides amendments to subtopic 820-10 that clarifies existing disclosures as follows : 1 ) level of disaggregation . a reporting entity should provide fair value measurement disclosures for each class of assets and liabilities . a class is often a subset of assets or liabilities within a line item in the statement of financial position . a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities . 2 ) disclosures about inputs and valuation techniques . a reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements . those disclosures are required for fair value measurements that fall in either level 2 or level 3. the adoption of this guidance did not have a material impact on sg building 's consolidated financial statements . in february 2010 , fasb issued asu no . 2010-9 –amendments to certain recognition and disclosure requirements . this update addresses certain implementation issues related to an entity 's requirement to perform and disclose subsequent-events procedures and removes the requirement that public companies disclose the date of their financial statements in both issued and revised financial statements . according to the fasb , the revised statements include those that have been changed to correct an error or conform to a retrospective application of u.s. gaap . the adoption of this asu did not have a material impact on sg building 's consolidated financial statements . in march 2010 , fasb issued asu no . 2010-11 –scope exception related to embedded credit derivatives . embedded credit-derivative features related only to the transfer of credit risk in the form of subordination of one financial instrument to another are not subject to potential bifurcation and separate accounting as clarified by recently issued fasb guidance . other embedded credit-derivative features are required to be analyzed to determine whether they must be accounted for separately . this update provides guidance on whether embedded credit-derivative features in financial instruments issued by structures such as collateralized debt obligations ( cdos ) and synthetic cdos are subject to bifurcation and separate accounting . the guidance is effective at the beginning of a company 's first fiscal quarter beginning after june 15 , 2010. we do not expect the adoption of this asu to have a material impact on the company 's consolidated financial statements . 24 in april 2010 , the fasb issued asu no . 2010-13 , compensation – stock compensation : effect of denominating the exercise price of a share-based payment award in the currency of the market in which the underlying equity security trades . asu 2010-13 clarifies that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity 's equity securities trades should not be considered to contain a condition that is not a market , performance , or service condition . therefore , such an award should not be classified as a liability if it otherwise qualifies as equity . asu 2010-13 is effective for fiscal years , and interim periods within those fiscal years , beginning on or after december 15 , 2010 , with early adoption permitted . sg building is currently evaluating the potential impact of this standard . in may 2011 , fasb issued asu no . 2011-04 , “ fair value measurement ( topic 820 ) – amendments to achieve common fair value measurement and disclosure requirements in u.s. gaap and ifrss . ” this asu addresses fair value measurement and disclosure requirements within accounting standards codification topic 820 for the purpose of providing consistency and common meaning between u.s. gaap and ifrss . generally , this asu is not intended to change the application of the requirements in topic 820. rather , this asu primarily

liquidity and capital resources since sg building 's inception in 2008 , sg building has generated losses from operations and it anticipates that it will continue to generate losses from operations for the foreseeable future . as of december 31 , 2011 and december 31 , 2010 , sg building 's stockholders ' equity/ ( deficiency ) was approximately ( $ 185,000 ) and $ 440,000 , respectively . sg building 's net loss from operations for the years ended december 31 , 2011 and 2010 was $ 2,059,080 and $ 933,858 , respectively . net cash used in operating activities was $ 1,591,506 and $ 804,405 for the years ended december 31 , 2011 and december 31 , 2010 , respectively . operations since inception have been funded with the proceeds from equity and debt financings and sales activity . as of december 31 , 2011 , we had cash and cash equivalents of $ 561,759. we anticipate that our existing capital resources will enable us to continue operations through at least march 31 , 2013. sg building incurred a net loss of $ 1,909,575 for the year ended december 31 , 2011. sg building 's cash balance as of december 31 , 2011 was $ 561,759 and sg building had working capital as of that date of ( $ 192,597 ) . since inception , sg building has funded its operations and working capital needs primarily with proceeds from equity and debt financings and sales activity . during 2010 , sg building generated net cash proceeds of $ 2,739,797 from the issuance of notes payable and issuance of common stock .


 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 since sg building 's inception in 2008 , sg building has generated losses from operations and it anticipates that it will continue to generate losses from operations for the foreseeable future . as of december 31 , 2011 and december 31 , 2010 , sg building 's stockholders ' equity/ ( deficiency ) was approximately ( $ 185,000 ) and $ 440,000 , respectively . sg building 's net loss from operations for the years ended december 31 , 2011 and 2010 was $ 2,059,080 and $ 933,858 , respectively . net cash used in operating activities was $ 1,591,506 and $ 804,405 for the years ended december 31 , 2011 and december 31 , 2010 , respectively . operations since inception have been funded with the proceeds from equity and debt financings and sales activity . as of december 31 , 2011 , we had cash and cash equivalents of $ 561,759. we anticipate that our existing capital resources will enable us to continue operations through at least march 31 , 2013. sg building incurred a net loss of $ 1,909,575 for the year ended december 31 , 2011. sg building 's cash balance as of december 31 , 2011 was $ 561,759 and sg building had working capital as of that date of ( $ 192,597 ) . since inception , sg building has funded its operations and working capital needs primarily with proceeds from equity and debt financings and sales activity . during 2010 , sg building generated net cash proceeds of $ 2,739,797 from the issuance of notes payable and issuance of common stock .
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 Suspicious Activity Report : the following summaries of the merger and related transactions , the merger agreement and the other agreements entered into by the parties are qualified in their entirety by reference to the text of the agreements , certain of which are attached as exhibits hereto and are incorporated herein by reference . on november 4 , 2011 , pursuant to the terms of the merger agreement , the merger was consummated and merger sub was merged with and into sg building , with sg building surviving the merger and becoming a wholly-owned subsidiary , and only operating business of the company . in connection with the merger , ( i ) each of the 1,786,000 shares of sg building common stock which were outstanding immediately prior to the effective date of the merger were exchanged for 20.1851851852 shares of the company 's common stock and ( ii ) each of the 51,750 outstanding sg building warrants were cancelled and substituted with company warrants of a similar tenor to purchase an aggregate of 1,044,584 shares of the company 's common stock . also , in connection with the merger , 408,750 shares of the company 's common stock were issued for services related to the merger . 18 the number of shares of common stock of the company issued and outstanding immediately following the consummation of the merger on november 4 , 2011 is summarized as follows : number of shares sg building shares outstanding prior to the merger 1,786,000 share exchange ratio ( 20.1851851852 to 1 ) 20.1851851852 x 36,050,764 sg blocks shares outstanding prior to the merger 3,269,992 shares issued in connection with the merger 408,750 39,729,506 in connection with the merger agreement , the company entered into an escrow agreement with former shareholders of sg building in order to provide for any payment to which the company may be entitled with respect to post-closing rights to indemnification under the merger agreement . under the terms of the escrow agreement , the former stockholders of sg building placed in escrow ( with an independent escrow agent ) a total of 817,500 shares of common stock received by them in the merger . such shares of common stock held in escrow will be the company 's sole remedy for rights to indemnification under the merger agreement . claims for indemnification may be asserted by the company until the 5 th business day after the company has filed the annual report on form 10-k with the securities and exchange commission for the year ended december 31 , 2011. general sg building , our wholly-owned subsidiary and only operating business , offers the construction industry a safer , greener , faster , longer lasting and more economical alternative to conventional construction methods . sg building redesigns , repurposes , and converts heavy-gauge steel cargo shipping containers into safe green building blocks for commercial , industrial , and residential building construction . sg building is a provider of code engineered cargo shipping containers that it modifies and delivers to meet the growing demand for safe and green construction . rather than consuming new steel and lumber , sg building capitalizes on the structural engineering and design parameters a shipping container must meet and repurposes them for use in building . results of operations years ended december 31 , 2011 , 2010 and 2009 : year ended december 31 replace_table_token_1_th year ended december 31 , 2011 compared to the year ended december 31 , 2010 : revenue revenue for the year ended december 31 , 2011 was $ 3,964,796 compared to $ 1,916,565 for the year ended december 31 , 2010. this increase of $ 2,048,231 results from significantly increased block “ green steel ” sales to three customers ( approximately $ 2,400,000 of sales in 2011 ) offset by a decrease of approximately $ 200,000 in engineering and project management jobs during 2011 . 19 the decrease of sales in engineering and project management jobs resulted from sg building having fewer customers in these product areas with lower contracted dollar amounts than during 2010. the reduced number of customers and sales revenue in these product areas is due to management 's decision to focus resources on larger block “ green steel ” projects and thus forgoing proposing on additional engineering and project management jobs during 2011. cost of revenue and gross profit cost of revenue increased by $ 2,068,759 to $ 3,407,918 for the year ended december 31 , 2011 from $ 1,339,159 for the year ended december 31 , 2010. the increase in cost of revenue results from an increase in sales as well as a decrease in gross profit percentage . gross profit decreased to $ 556,878 for the year ended december 31 , 2011 from a gross profit of $ 577,406 for the year ended december 31 , 2010. the gross profit percentage was 14.1 % for the year ended december 31 , 2011 as compared to a gross profit percentage of 30.1 % for the year ended december 31 , 2010. this decrease in gross profit percentage results from a decrease in gross profit percent in block “ green steel ” sales ( from 32.5 % in 2010 to 14.8 % in 2011 ) , engineering ( from 42.4 % in 2010 to 14 % in 2011 ) and project management ( from 20.9 % in 2010 to 7.4 % in 2011 ) projects . the decrease in gross profit percentage for block “ green steel ” sales and engineering projects resulted from jobs that were priced below our normal margin in order to obtain product acceptance and building approvals as well as a single block “ green steel ” sale job for approximately $ 1,400,000 which had a gross profit percentage of 5 % . story_separator_special_tag accordingly no warranty reserve is considered necessary for any of the periods presented . sg building also supplies repurposed containers to its customers . in these cases , sg building serves as a supplier to its customers for standard and made to order products that it sells at fixed prices . revenue from these contracts is generally recognized when the products have been delivered to the customer , accepted by the customer and collection is reasonably assured . revenue is recognized upon completion of the following : an order for product is received from a customer ; written approval for the payment schedule is received from the customer and the corresponding required deposit or payments are received ; a common carrier signs documentation accepting responsibility for the unit as agent for the customer ; and the unit is delivered to the customer 's shipping point . amounts billed to customers in a sales transaction for shipping and handling are classified as revenue . products sold are generally paid for based on schedules provided for in each individual customer contract including upfront deposits and progress payments as products are being manufactured . funds received in advance of meeting the criteria for revenue recognition are deferred and are recorded as revenue when they are earned . new accounting pronouncements in january 2010 , fasb issued asu no . 2010-06 – improving disclosures about fair value measurements . this update provides amendments to subtopic 820-10 that requires new disclosure as follows : 1 ) transfers in and out of levels 1 and 2 fair value measurements . a reporting entity should disclose separately the amounts of significant transfers in and out of level 1 and level 2 fair value measurements and describe the reasons for the transfers . 2 ) activity in level 3 fair value measurements . in the reconciliation for fair value measurements using significant unobservable inputs ( level 3 ) , a reporting entity should present separately information about purchases , sales , issuances , and settlements ( that is , on a gross basis rather than as one net number ) . this update provides amendments to subtopic 820-10 that clarifies existing disclosures as follows : 1 ) level of disaggregation . a reporting entity should provide fair value measurement disclosures for each class of assets and liabilities . a class is often a subset of assets or liabilities within a line item in the statement of financial position . a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities . 2 ) disclosures about inputs and valuation techniques . a reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements . those disclosures are required for fair value measurements that fall in either level 2 or level 3. the adoption of this guidance did not have a material impact on sg building 's consolidated financial statements . in february 2010 , fasb issued asu no . 2010-9 –amendments to certain recognition and disclosure requirements . this update addresses certain implementation issues related to an entity 's requirement to perform and disclose subsequent-events procedures and removes the requirement that public companies disclose the date of their financial statements in both issued and revised financial statements . according to the fasb , the revised statements include those that have been changed to correct an error or conform to a retrospective application of u.s. gaap . the adoption of this asu did not have a material impact on sg building 's consolidated financial statements . in march 2010 , fasb issued asu no . 2010-11 –scope exception related to embedded credit derivatives . embedded credit-derivative features related only to the transfer of credit risk in the form of subordination of one financial instrument to another are not subject to potential bifurcation and separate accounting as clarified by recently issued fasb guidance . other embedded credit-derivative features are required to be analyzed to determine whether they must be accounted for separately . this update provides guidance on whether embedded credit-derivative features in financial instruments issued by structures such as collateralized debt obligations ( cdos ) and synthetic cdos are subject to bifurcation and separate accounting . the guidance is effective at the beginning of a company 's first fiscal quarter beginning after june 15 , 2010. we do not expect the adoption of this asu to have a material impact on the company 's consolidated financial statements . 24 in april 2010 , the fasb issued asu no . 2010-13 , compensation – stock compensation : effect of denominating the exercise price of a share-based payment award in the currency of the market in which the underlying equity security trades . asu 2010-13 clarifies that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity 's equity securities trades should not be considered to contain a condition that is not a market , performance , or service condition . therefore , such an award should not be classified as a liability if it otherwise qualifies as equity . asu 2010-13 is effective for fiscal years , and interim periods within those fiscal years , beginning on or after december 15 , 2010 , with early adoption permitted . sg building is currently evaluating the potential impact of this standard . in may 2011 , fasb issued asu no . 2011-04 , “ fair value measurement ( topic 820 ) – amendments to achieve common fair value measurement and disclosure requirements in u.s. gaap and ifrss . ” this asu addresses fair value measurement and disclosure requirements within accounting standards codification topic 820 for the purpose of providing consistency and common meaning between u.s. gaap and ifrss . generally , this asu is not intended to change the application of the requirements in topic 820. rather , this asu primarily

