to that end , we hit an important technology milestone in 2006 by moving all transactions to the phoenix platform and setting the stage for greater operating margins now and in the future . because of its scalability , we can easily multiply our current transaction volume without many additional resources . additionally , by storing all our data in one repository , we can continue to streamline operations and explore new opportunities because we access data with more efficiency and greater speed . see the advanced technology under industry trends below for more details on how our technology affects our financial condition . in an effort to create additional cost savings opportunities , we outsourced many of our ppo operations to ppoone , a fiserv company . this agreement , announced in november 2006 , is expected to improve operational efficiencies and generate an estimated annual savings in excess of $ 800,000 by reducing our selling , general and administrative expenses . these savings will be partially offset by a smaller direct cost during 2007 and forward . we also unveiled our premium revenue cycle management service in october 2006. providers pay an additional fee for the premium service ; however , it will be 2007 before the revenue it generates is evident in our consolidated financial statements . see liquidity , capital resources and financial position for a discussion of our going concern opinion and management 's plan to address such issues . industry trends and financial strategies we have identified the following trends in the healthcare industry and outlined our financial strategy in each : acquisitions advanced technology reduced payments to providers shifting responsibility for medical care increasing demand for data and analytics acquisitions the most observable trend in healthcare is the consolidation of technology companies and payers . in 2006 , for example , the carlyle group acquired multiplan and phcs . mckesson announced their intention to acquire per-se . per-se purchased ndc health the previous year . unitedhealth group purchased 11 other smaller plans , including pacificare and oxford . our strategy in this forum is to explore opportunities for acquiring assets , products or services . we have acquired three companies in the past five years . they include : on march 2 , 2004 , we acquired planvista , a company that provided ppo and business process outsourcing solutions for the medical insurance and managed care industries , as well as services for healthcare providers . we acquired planvista for 3,600,000 shares of our common stock issued to planvista shareholders valued at $ 59.8 million ( based on the average closing price of our common stock for the day of and the two days before and after december 8 , 2003 , the date of the announcement of the definitive agreement ) . we also assumed debt and other liabilities of planvista totaling $ 46.4 million and we paid $ 1.3 million in acquisition-related costs . additionally , we raised $ 24.1 million in a private placement sale of 1,691,227 shares of our common stock to investment entities affiliated with general atlantic llc , commonwealth associates and other parties to partially fund repayment of certain of planvista 's debts and other obligations outstanding at the time of the acquisition . on february 14 , 2006 , we acquired substantially all the assets and operations of zeneks , inc. , ( zeneks ) , a privately held company based in tampa , florida , for $ 225,000 plus assumed liabilities . zeneks was incorporated in 1998 and was established to contain medical costs for payers . on october 10 , 2006 , we acquired substantially all the assets and operations of medical resources , llc , and national provider network , inc. ( mrl ) , for $ 5.0 million in total consideration . the purchase price was comprised of 22 $ 3.0 million in cash , funded by medavant 's current credit facility , and a $ 2.0 million note payable that bears interest at 7 percent per annum . the note matures in two years and is payable in equal monthly installments of principal and interest . the planvista acquisition made us the only entity in healthcare that offers nationwide claims processing and a nationwide ppo . this means we can help our customers with any part of the insurance claim cycle . we refer to this as gateway solutions ,  and it allows payers to use one part of the full , integrated suite of services or choose a combination of services to address their needs . the zeneks acquisition complemented our services to payers by incorporating bill negotiation services for claims when a patient uses out-of-network providers . the mrl acquisition gave nppn more direct contracts with providers and additional contract providers in six states . advanced technology our customers increasingly expect technology to address their business issues and healthcare companies are responding with more advanced solutions . we believe we are leaders in this arena with our phoenix transaction processing platform . we created phoenix more than five years ago with multiple processing engines that can be monitored and programmed throughout all areas of our business . it handles real-time transactions which generate results in seconds , as well as the more traditional batch transactions for providers and payers who are not ready for real-time . most of our competition still uses multiple processing systems that can only handle batch transactions . between 1997 and 2006 , we acquired nine companies , each with its own technology systems . in 2006 , we began moving all transactions to phoenix and completed this migration by early 2007. phoenix currently operates at less than 40 percent of capacity , meaning we are in a position to increase the scale of new business without the added expense of building out our technology . story_separator_special_tag consolidated cost of sales decreased as a percentage of net revenues to 30 % in 2006 , from 35 % in 2005. cost of sales classified by our reportable segments are as follows : replace_table_token_3_th cost of sales in our transaction services segment consists of transaction fees , provider network outsourcing fees , services and license fees , third-party electronic transaction processing costs , certain telecommunication and co-location center costs , revenue sharing arrangements with our business partners , third-party database licenses , and certain travel expenses . cost of sales in this segment decreased by $ 6.9 million , or 33 % , in 2006 as compared to 2005 , directly associated with the revenue decreases for this segment . additionally , during late 2005 and into 2006 , we renegotiated many of our vendor and network contracts , thereby reducing our direct costs . this is reflected in our margins increasing from 69 % in 2005 to 75 % in 2006. this margin increase was also impacted by the $ 0.2 million of new revenue and $ 0.2 million of reduced direct costs from our acquisition of mrl . additionally , we had a reduction of direct costs of approximately $ 0.7 million due to our acquisition of zeneks in february 2006. cost of sales in our laboratory communication solutions segment includes hardware , third party software , consumable materials , direct manufacturing labor , and indirect manufacturing overhead . cost of sales for this segment decreased by $ 0.6 million , or 10 % , as compared to 2005. cost of sales as a percentage of revenues in this segment was 49 % in 2006 as compared to 55 % in 2005. this decrease in costs is related to the higher margins attributable to sales of pilot , the elimination of low margin business and a new service contract with our largest customer . selling , general and administrative expenses . consolidated sg & a decreased $ 6.2 million in 2006 to $ 41.8 million , as compared to $ 48.0 million in 2005. consolidated sg & a expenses as a percentage of consolidated revenues increased to 64 % in 2006 , from 62 % in 2005. sg & a expenses classified by our reportable segments are as follows : replace_table_token_4_th transaction services segment sg & a expenses for the year ended december 31 , 2006 decreased $ 6.2 million , or 14 % , to $ 39.1 million , compared to $ 45.3 million in 2005. this decrease is attributable to lower payroll expenses ( $ 6.0 million ) , lower commissions ( $ 0.5 million ) , lower rent ( $ 0.5 million ) and lower recruiting expenses ( $ 0.4 ) as compared to 2005. this decrease is significantly driven by the drop in our employee count , from 401 at december 31 , 2005 , compared to 340 as of december 31 , 2006. these reductions were partially offset by increased bonus expense ( $ 1.7 million ) , and stock option expenses ( $ 0.9 million ) related to our adoption of sfas no . 123r . the 2006 bonus was based upon the achievement of companywide goals . laboratory communication solutions segment sg & a expenses for 2006 remained consistent with 2005 and this segment 's sg & a expenses as a percentage of segment net revenues remained steady at approximately 23 % in 2006 from 2005. depreciation and amortization . consolidated depreciation and amortization expense decreased by $ 1.9 million to $ 7.4 million in 2006 from $ 9.3 million in 2005. depreciation and amortization classified by our reportable segments are as follows : replace_table_token_5_th the decrease in depreciation and amortization is primarily due to the impairment charge on certain of our long-lived intangible assets taken in 2005 ( see below ) . as a result , our amortization expense declined by $ 2.0 million , partially offset by approximately $ 0.2 million of amortization pertaining to our acquisition of mrl in october 2006 and additions of capitalized software . depreciation declined $ 0.1 million from 2005 to 2006 . 27 litigation settlement . during 2007 , pertaining to the 2006 fiscal year , we settled outstanding litigation related to our 2005 name change , for approximately $ 1.3 million , for which we have accrued $ 0.3 million , net of insurance reimbursement amount . additionally , we settled a non-compete agreement suit for approximately $ 0.1 million . these amounts are recorded in our transaction services segment for the fiscal year 2006. write-off of impaired assets . no impairment charges were incurred or recognized during 2006. as a result of our stock price decline during 2005 , a decrease in our revenues and a restructuring plan we initiated during the third quarter of 2005 , we performed an interim goodwill impairment test as of september 30 , 2005. in accordance with the provisions of sfas no . 142 , we performed a discounted cash flow analysis which indicated that the book value of the transaction services segment exceeded its estimated fair value . step 2 of this impairment test , led us to conclude that an impairment of our goodwill had occurred . in addition , as a result of our goodwill analysis , we also performed an impairment analysis of our long-lived assets in our transaction services segment . this impairment analysis indicated that the carrying value of certain finite-lived intangible assets was greater than their expected undiscounted future cash flows . as a result , we concluded that these intangible assets were impaired and adjusted the carrying value of such assets to fair value . in addition , we also reduced the remaining useful lives of these intangible assets based on the results of this analysis . accordingly , we recorded a non-cash impairment charge of $ 95.7 million at september 30 , 2005 , in our transaction services segment . the charges included $ 68.1

interest on senior and other debt 1,472 1,360 1,247 1,135  convertible notes ( 1 )  13,137    senior debt 1,071 1,071 1,071 982  revolving credit line ( 4 ) 10,464     notes payable ( 2 ) 1,074 895    litigation settlements ( 3 ) 321     capital lease obligations ( 2 ) 1,155 891 474 56  operating leases 1,430 1,387 1,255 524 33 total $ 17,512 $ 19,266 $ 4,047 $ 2,697 $ 33 ( 1 ) assumes no conversion of convertible notes ( 2 ) includes principal and interest ( 3 ) net of insurance reimbursement ( 4 ) revolving credit line is categorized as current due to the subjective acceleration clause and lockbox arrangement with our senior lender we have to fund the liquidation of the convertible notes during december 2008 , and we believe that we will have to seek refinancing to settle these notes . the balance of the revolving credit facility on february 28 , 2007 , is approximately $ 12.5 million . we do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition , results of operations , liquidity , capital expenditures or capital resources , as defined under the rules of sec release no . fr-67 . the company 's independent registered public accounting firm has issued a going concern opinion with respect to 32 the company 's consolidated financial statements for the year ended december 31 , 2006. specifically , the independent public accountants have stated that because the company has , among other factors , experienced recurring losses from operations and limited access to additional capital they have substantial doubts about its ability to continue as a going concern . we believe that if we are not successful in increasing revenues , reducing costs , or obtaining additional financing , such inability may adversely impact our ability to successfully execute our business plan and may put us at a competitive disadvantage . the company is continuing its efforts to reduce costs and increase revenue through its new product launches and expanded relationships with certain customers .


 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.
     ```interest on senior and other debt 1,472 1,360 1,247 1,135  convertible notes ( 1 )  13,137    senior debt 1,071 1,071 1,071 982  revolving credit line ( 4 ) 10,464     notes payable ( 2 ) 1,074 895    litigation settlements ( 3 ) 321     capital lease obligations ( 2 ) 1,155 891 474 56  operating leases 1,430 1,387 1,255 524 33 total $ 17,512 $ 19,266 $ 4,047 $ 2,697 $ 33 ( 1 ) assumes no conversion of convertible notes ( 2 ) includes principal and interest ( 3 ) net of insurance reimbursement ( 4 ) revolving credit line is categorized as current due to the subjective acceleration clause and lockbox arrangement with our senior lender we have to fund the liquidation of the convertible notes during december 2008 , and we believe that we will have to seek refinancing to settle these notes . the balance of the revolving credit facility on february 28 , 2007 , is approximately $ 12.5 million . we do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition , results of operations , liquidity , capital expenditures or capital resources , as defined under the rules of sec release no . fr-67 . the company 's independent registered public accounting firm has issued a going concern opinion with respect to 32 the company 's consolidated financial statements for the year ended december 31 , 2006. specifically , the independent public accountants have stated that because the company has , among other factors , experienced recurring losses from operations and limited access to additional capital they have substantial doubts about its ability to continue as a going concern . we believe that if we are not successful in increasing revenues , reducing costs , or obtaining additional financing , such inability may adversely impact our ability to successfully execute our business plan and may put us at a competitive disadvantage . the company is continuing its efforts to reduce costs and increase revenue through its new product launches and expanded relationships with certain customers .
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 Suspicious Activity Report : to that end , we hit an important technology milestone in 2006 by moving all transactions to the phoenix platform and setting the stage for greater operating margins now and in the future . because of its scalability , we can easily multiply our current transaction volume without many additional resources . additionally , by storing all our data in one repository , we can continue to streamline operations and explore new opportunities because we access data with more efficiency and greater speed . see the advanced technology under industry trends below for more details on how our technology affects our financial condition . in an effort to create additional cost savings opportunities , we outsourced many of our ppo operations to ppoone , a fiserv company . this agreement , announced in november 2006 , is expected to improve operational efficiencies and generate an estimated annual savings in excess of $ 800,000 by reducing our selling , general and administrative expenses . these savings will be partially offset by a smaller direct cost during 2007 and forward . we also unveiled our premium revenue cycle management service in october 2006. providers pay an additional fee for the premium service ; however , it will be 2007 before the revenue it generates is evident in our consolidated financial statements . see liquidity , capital resources and financial position for a discussion of our going concern opinion and management 's plan to address such issues . industry trends and financial strategies we have identified the following trends in the healthcare industry and outlined our financial strategy in each : acquisitions advanced technology reduced payments to providers shifting responsibility for medical care increasing demand for data and analytics acquisitions the most observable trend in healthcare is the consolidation of technology companies and payers . in 2006 , for example , the carlyle group acquired multiplan and phcs . mckesson announced their intention to acquire per-se . per-se purchased ndc health the previous year . unitedhealth group purchased 11 other smaller plans , including pacificare and oxford . our strategy in this forum is to explore opportunities for acquiring assets , products or services . we have acquired three companies in the past five years . they include : on march 2 , 2004 , we acquired planvista , a company that provided ppo and business process outsourcing solutions for the medical insurance and managed care industries , as well as services for healthcare providers . we acquired planvista for 3,600,000 shares of our common stock issued to planvista shareholders valued at $ 59.8 million ( based on the average closing price of our common stock for the day of and the two days before and after december 8 , 2003 , the date of the announcement of the definitive agreement ) . we also assumed debt and other liabilities of planvista totaling $ 46.4 million and we paid $ 1.3 million in acquisition-related costs . additionally , we raised $ 24.1 million in a private placement sale of 1,691,227 shares of our common stock to investment entities affiliated with general atlantic llc , commonwealth associates and other parties to partially fund repayment of certain of planvista 's debts and other obligations outstanding at the time of the acquisition . on february 14 , 2006 , we acquired substantially all the assets and operations of zeneks , inc. , ( zeneks ) , a privately held company based in tampa , florida , for $ 225,000 plus assumed liabilities . zeneks was incorporated in 1998 and was established to contain medical costs for payers . on october 10 , 2006 , we acquired substantially all the assets and operations of medical resources , llc , and national provider network , inc. ( mrl ) , for $ 5.0 million in total consideration . the purchase price was comprised of 22 $ 3.0 million in cash , funded by medavant 's current credit facility , and a $ 2.0 million note payable that bears interest at 7 percent per annum . the note matures in two years and is payable in equal monthly installments of principal and interest . the planvista acquisition made us the only entity in healthcare that offers nationwide claims processing and a nationwide ppo . this means we can help our customers with any part of the insurance claim cycle . we refer to this as gateway solutions ,  and it allows payers to use one part of the full , integrated suite of services or choose a combination of services to address their needs . the zeneks acquisition complemented our services to payers by incorporating bill negotiation services for claims when a patient uses out-of-network providers . the mrl acquisition gave nppn more direct contracts with providers and additional contract providers in six states . advanced technology our customers increasingly expect technology to address their business issues and healthcare companies are responding with more advanced solutions . we believe we are leaders in this arena with our phoenix transaction processing platform . we created phoenix more than five years ago with multiple processing engines that can be monitored and programmed throughout all areas of our business . it handles real-time transactions which generate results in seconds , as well as the more traditional batch transactions for providers and payers who are not ready for real-time . most of our competition still uses multiple processing systems that can only handle batch transactions . between 1997 and 2006 , we acquired nine companies , each with its own technology systems . in 2006 , we began moving all transactions to phoenix and completed this migration by early 2007. phoenix currently operates at less than 40 percent of capacity , meaning we are in a position to increase the scale of new business without the added expense of building out our technology . story_separator_special_tag consolidated cost of sales decreased as a percentage of net revenues to 30 % in 2006 , from 35 % in 2005. cost of sales classified by our reportable segments are as follows : replace_table_token_3_th cost of sales in our transaction services segment consists of transaction fees , provider network outsourcing fees , services and license fees , third-party electronic transaction processing costs , certain telecommunication and co-location center costs , revenue sharing arrangements with our business partners , third-party database licenses , and certain travel expenses . cost of sales in this segment decreased by $ 6.9 million , or 33 % , in 2006 as compared to 2005 , directly associated with the revenue decreases for this segment . additionally , during late 2005 and into 2006 , we renegotiated many of our vendor and network contracts , thereby reducing our direct costs . this is reflected in our margins increasing from 69 % in 2005 to 75 % in 2006. this margin increase was also impacted by the $ 0.2 million of new revenue and $ 0.2 million of reduced direct costs from our acquisition of mrl . additionally , we had a reduction of direct costs of approximately $ 0.7 million due to our acquisition of zeneks in february 2006. cost of sales in our laboratory communication solutions segment includes hardware , third party software , consumable materials , direct manufacturing labor , and indirect manufacturing overhead . cost of sales for this segment decreased by $ 0.6 million , or 10 % , as compared to 2005. cost of sales as a percentage of revenues in this segment was 49 % in 2006 as compared to 55 % in 2005. this decrease in costs is related to the higher margins attributable to sales of pilot , the elimination of low margin business and a new service contract with our largest customer . selling , general and administrative expenses . consolidated sg & a decreased $ 6.2 million in 2006 to $ 41.8 million , as compared to $ 48.0 million in 2005. consolidated sg & a expenses as a percentage of consolidated revenues increased to 64 % in 2006 , from 62 % in 2005. sg & a expenses classified by our reportable segments are as follows : replace_table_token_4_th transaction services segment sg & a expenses for the year ended december 31 , 2006 decreased $ 6.2 million , or 14 % , to $ 39.1 million , compared to $ 45.3 million in 2005. this decrease is attributable to lower payroll expenses ( $ 6.0 million ) , lower commissions ( $ 0.5 million ) , lower rent ( $ 0.5 million ) and lower recruiting expenses ( $ 0.4 ) as compared to 2005. this decrease is significantly driven by the drop in our employee count , from 401 at december 31 , 2005 , compared to 340 as of december 31 , 2006. these reductions were partially offset by increased bonus expense ( $ 1.7 million ) , and stock option expenses ( $ 0.9 million ) related to our adoption of sfas no . 123r . the 2006 bonus was based upon the achievement of companywide goals . laboratory communication solutions segment sg & a expenses for 2006 remained consistent with 2005 and this segment 's sg & a expenses as a percentage of segment net revenues remained steady at approximately 23 % in 2006 from 2005. depreciation and amortization . consolidated depreciation and amortization expense decreased by $ 1.9 million to $ 7.4 million in 2006 from $ 9.3 million in 2005. depreciation and amortization classified by our reportable segments are as follows : replace_table_token_5_th the decrease in depreciation and amortization is primarily due to the impairment charge on certain of our long-lived intangible assets taken in 2005 ( see below ) . as a result , our amortization expense declined by $ 2.0 million , partially offset by approximately $ 0.2 million of amortization pertaining to our acquisition of mrl in october 2006 and additions of capitalized software . depreciation declined $ 0.1 million from 2005 to 2006 . 27 litigation settlement . during 2007 , pertaining to the 2006 fiscal year , we settled outstanding litigation related to our 2005 name change , for approximately $ 1.3 million , for which we have accrued $ 0.3 million , net of insurance reimbursement amount . additionally , we settled a non-compete agreement suit for approximately $ 0.1 million . these amounts are recorded in our transaction services segment for the fiscal year 2006. write-off of impaired assets . no impairment charges were incurred or recognized during 2006. as a result of our stock price decline during 2005 , a decrease in our revenues and a restructuring plan we initiated during the third quarter of 2005 , we performed an interim goodwill impairment test as of september 30 , 2005. in accordance with the provisions of sfas no . 142 , we performed a discounted cash flow analysis which indicated that the book value of the transaction services segment exceeded its estimated fair value . step 2 of this impairment test , led us to conclude that an impairment of our goodwill had occurred . in addition , as a result of our goodwill analysis , we also performed an impairment analysis of our long-lived assets in our transaction services segment . this impairment analysis indicated that the carrying value of certain finite-lived intangible assets was greater than their expected undiscounted future cash flows . as a result , we concluded that these intangible assets were impaired and adjusted the carrying value of such assets to fair value . in addition , we also reduced the remaining useful lives of these intangible assets based on the results of this analysis . accordingly , we recorded a non-cash impairment charge of $ 95.7 million at september 30 , 2005 , in our transaction services segment . the charges included $ 68.1

