on january 31 , 2013 , the company completed the sale of substantially all of the assets of its grass technologies product group ( grass ) in order to focus on its existing core businesses . grass manufactured polysomnography and electroenecephalography systems for both clinical and research use along with the related accessories and proprietary electrodes . consequently , the company has classified the results of operations of its grass segment as discontinued operations for all periods presented . astro-med markets and sells its products and services globally through a diverse distribution structure of direct sales personnel , manufacturer 's representatives and authorized dealers that deliver a full complement of branded products and services to customers in our respective markets . our growth strategy centers on organic growth through product innovation made possible by research and development initiatives , as well as strategic acquisitions that fit into existing core businesses . research and development activities are funded and expensed by the company at approximately 6.2 % of annual sales for fiscal 2013. including research and development expenditures of the discontinued grass segment , the company 's , spending on research and development in 2013 was 8.0 % of sales ( excluding sales of the discontinued grass segment ) , a level that the company anticipates will continue in 2014. we also continue to invest in sales and marketing initiatives by expanding the existing sales force and using various marketing campaigns to achieve our goals of sales growth and increased profitability notwithstanding today 's challenging economic environment . 15 results of operations the following table presents the net sales of each of the company 's segments , as well as the percentage of total sales and change from prior year . as previously noted , the company 's grass segment has been classified as a discontinued operation and therefore not presented in the table or discussion below . replace_table_token_3_th fiscal 2013 compared to fiscal 2012 astro-med 's sales in fiscal 2013 were $ 61,224,000 , representing a slight increase as compared to prior year sales of $ 60,724,000. domestic sales of $ 44,613,000 increased 2.4 % from the prior year sales of $ 43,570,000. international sales of $ 16,611,000 includes an unfavorable impact of $ 846,000 due to foreign exchange rates and reflects a 3.2 % decrease as compared to the prior year . hardware sales in fiscal 2013 were $ 25,169,000 , a 9.2 % increase as compared to prior year 's sales of $ 23,044,000 and represents 41.1 % of total sales as compared to 37.9 % of sales in the prior year . both product groups achieved growth in the current year , with t & m 's hardware sales up 5.0 % and quicklabel 's hardware sales up 17.2 % . the primary drivers of this increase relate to increases in t & m 's rugged and tmx product line sales and the increase in sales due to the introduction of quicklabel 's new kiaro ! product line . the increase in the current year 's hardware sales was tempered by lower sales of t & m 's recorder and data acquisition product lines and quicklabel 's vivo ! and zeo ! product lines . consumable sales in fiscal 2013 were $ 32,540,000 , representing a 3.8 % decrease as compared to prior year sales of $ 33,841,000. the key driver of the overall decrease in consumable sales for the current fiscal year was primarily traceable to the decline in label and tag sales in the quicklabel product group due to the january 2012 divestiture of the asheboro , north carolina facility , which contributed sales of approximately $ 4,100,000 in fiscal 2012. the decline in consumable product sales for the current year was tempered by an increase in sales of digital color printer supplies within the quicklabel product group , which were up 16.9 % over the prior year , as well as a slight increase in sales of quicklabel 's thermal transfer ribbon . service and other sales revenue in fiscal 2013 were $ 3,515,000 , a 8.4 % decrease compared to prior year sales of $ 3,839,000 due to lower repair and service revenue . the company achieved $ 23,728,000 in gross profit for fiscal 2013 and generated a gross profit margin of 38.8 % , an increase as compared to prior year 's gross profit margin of 36.3 % . the increase in gross profit margin for the current year is due to lower manufacturing costs and favorable product mix . operating expenses for the current year were $ 20,802,000 , representing a 1.2 % decrease from prior year 's operating expenses of $ 21,062,000. specifically , selling and marketing expenses decreased 2.9 % from prior year to $ 12,412,000 in fiscal 2013 , representing 20.3 % of sales , a slight decrease as compared to the prior year 's 21.0 % of sales . the decrease in selling and marketing was primarily the result of lower wages and benefits . general and administrative ( g & a ) expenses increased 15.4 % from prior year to $ 4,574,000 in fiscal 2013. the higher g & a expense was primarily due to an increase in wages and benefits for the current year , as well as an increase in professional fees spending as compared to the prior year . funding of research & development ( r & d ) in fiscal 2013 has decreased 11.7 % to $ 3,816,000. the decrease in r & d for fiscal 2013 is primarily due to the decrease in personnel costs and in prototype and outside research and development spending compared to the prior year . story_separator_special_tag as a result , significant judgment is required in determining the appropriate amounts to record and such judgments may prove to be incorrect in the future . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to the actual amounts . 20 inventories : inventories are stated at the lower of cost ( first-in , first-out ) or market . the company records provisions to write-down obsolete and excess inventory to its estimated net realizable value . the process for evaluating obsolete and excess inventory consists of analyzing the inventory supply on hand and estimating the net realizable value of the inventory based on historical experience , current business conditions and anticipated future sales . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to actual experience . income taxes : a valuation allowance is established when it is more-likely-than-not that all or a portion of deferred tax assets will not be realized . a review of all available positive and negative evidence must be considered , including our performance , the market environment in which we operate , length of carryforward periods , existing sales backlog and future sales projections . if actual factors and conditions differ materially from the estimates made by management , the actual realization of the net deferred tax assets or liabilities could vary materially from the amounts previously recorded . at january 31 , 2013 , the company has provided valuation allowances for future tax benefits resulting from certain r & d tax credits which could expire unused . the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions . although guidance on the accounting for uncertain income taxes prescribes the use of a recognition and measurement model , the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . if the ultimate resolution of tax uncertainties is different from what we have estimated , our income tax expense could be materially impacted . long-lived assets and goodwill : the impairment of long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition . measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset . management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances , such as declines in sales , earnings or cash flows , or material adverse changes in the business climate , indicate that the carrying value of an asset might be impaired . during the fourth quarter of fiscal 2012 , we adopted new accounting guidance which simplifies goodwill impairment testing . under the new guidance , goodwill is first qualitatively assessed to determine whether further impairment testing is necessary . factors that management considers in this assessment include macroeconomic conditions , industry and market considerations , overall financial performance ( both current and projected ) , changes in management and strategy and changes in the composition or carrying amount of net assets . if this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , a two step process is then performed . step one compares the fair value of the reporting unit with its carrying value , including goodwill . if the carrying amount exceeds the fair value of the reporting unit , step two is required to determine if there is an impairment of the goodwill . step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill . we estimate the fair value of our reporting units using the income approach based upon a discounted cash flow model . we believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit 's expected longterm operating cash flow performance . in addition , the company uses the market approach , which compares the reporting unit to publicly-traded companies and transactions involving similar business , to support the conclusions based upon the income approach . the income approach requires the use of many assumptions and estimates including future revenue , expenses , capital expenditures , and working capital , as well as discount factors and income tax rates . share-based compensation : share-based compensation expense is based on the estimated fair value of the share-based award when granted . we have estimated the fair value of each option on the date of grant using the black-scholes option-pricing model . our estimate of share-based compensation requires a number of complex and subjective assumptions including our stock price volatility , employee exercise patterns ( expected life of the options ) , the risk free interest rate and the company 's dividend yield . the stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average 21 expected life of our options . management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors . in determining the expected life of the option grants , the company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed

liquidity and capital resources the company expects to finance its future working capital needs , capital expenditures and acquisition requirements through internal funds and believes that cash provided by operations will be sufficient to meet our operating and capital needs for at least the next twelve months . to the extent our capital and liquidity requirements are not satisfied internally , we may utilize a $ 5.0 million revolving bank line of credit , all of which is currently available . borrowings under this line of credit bear interest at either a fluctuating rate equal to 75 basis points below the base rate , as defined in the agreement , or at a fixed rate equal to 150 basis points above libor . astro-med 's statements of cash flows for the two years ended january 31 , 2013 and 2012 are included on page 36. net cash flows provided by operating activities was $ 3,863,000 in the current year compared to net cash provided by operating activities of $ 5,472,000 in the previous year . the decrease in net cash flow from operations for the current year is attributed to increased working capital requirements , as both the accounts receivable and inventory balances increased during the current year and accounts payable and accrued expenses decreased in the current year as compared to prior year . the accounts receivable collection cycle was 51 days sales outstanding for both january 31 , 2013 and 2012. inventory days on hand increased to 109 days at the end of the current fiscal year from 105 days at prior year end . net cash flow provided by investing activities for fiscal 2013 was $ 18,466,000 , which included cash proceeds of $ 16,800,000 from the sale of the assets of company 's grass technologies product group . the increase in cash proceeds was slightly offset by cash used for capital expenditures of approximately $ 849,000 , including $ 327,000 for information technology , $ 161,000 for tools and dies , $ 156,000 for land and building improvements , $ 123,000 for machinery and equipment and $ 82,000 for furniture and fixtures and other capital expenditures .


 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 the company expects to finance its future working capital needs , capital expenditures and acquisition requirements through internal funds and believes that cash provided by operations will be sufficient to meet our operating and capital needs for at least the next twelve months . to the extent our capital and liquidity requirements are not satisfied internally , we may utilize a $ 5.0 million revolving bank line of credit , all of which is currently available . borrowings under this line of credit bear interest at either a fluctuating rate equal to 75 basis points below the base rate , as defined in the agreement , or at a fixed rate equal to 150 basis points above libor . astro-med 's statements of cash flows for the two years ended january 31 , 2013 and 2012 are included on page 36. net cash flows provided by operating activities was $ 3,863,000 in the current year compared to net cash provided by operating activities of $ 5,472,000 in the previous year . the decrease in net cash flow from operations for the current year is attributed to increased working capital requirements , as both the accounts receivable and inventory balances increased during the current year and accounts payable and accrued expenses decreased in the current year as compared to prior year . the accounts receivable collection cycle was 51 days sales outstanding for both january 31 , 2013 and 2012. inventory days on hand increased to 109 days at the end of the current fiscal year from 105 days at prior year end . net cash flow provided by investing activities for fiscal 2013 was $ 18,466,000 , which included cash proceeds of $ 16,800,000 from the sale of the assets of company 's grass technologies product group . the increase in cash proceeds was slightly offset by cash used for capital expenditures of approximately $ 849,000 , including $ 327,000 for information technology , $ 161,000 for tools and dies , $ 156,000 for land and building improvements , $ 123,000 for machinery and equipment and $ 82,000 for furniture and fixtures and other capital expenditures .
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 Suspicious Activity Report : on january 31 , 2013 , the company completed the sale of substantially all of the assets of its grass technologies product group ( grass ) in order to focus on its existing core businesses . grass manufactured polysomnography and electroenecephalography systems for both clinical and research use along with the related accessories and proprietary electrodes . consequently , the company has classified the results of operations of its grass segment as discontinued operations for all periods presented . astro-med markets and sells its products and services globally through a diverse distribution structure of direct sales personnel , manufacturer 's representatives and authorized dealers that deliver a full complement of branded products and services to customers in our respective markets . our growth strategy centers on organic growth through product innovation made possible by research and development initiatives , as well as strategic acquisitions that fit into existing core businesses . research and development activities are funded and expensed by the company at approximately 6.2 % of annual sales for fiscal 2013. including research and development expenditures of the discontinued grass segment , the company 's , spending on research and development in 2013 was 8.0 % of sales ( excluding sales of the discontinued grass segment ) , a level that the company anticipates will continue in 2014. we also continue to invest in sales and marketing initiatives by expanding the existing sales force and using various marketing campaigns to achieve our goals of sales growth and increased profitability notwithstanding today 's challenging economic environment . 15 results of operations the following table presents the net sales of each of the company 's segments , as well as the percentage of total sales and change from prior year . as previously noted , the company 's grass segment has been classified as a discontinued operation and therefore not presented in the table or discussion below . replace_table_token_3_th fiscal 2013 compared to fiscal 2012 astro-med 's sales in fiscal 2013 were $ 61,224,000 , representing a slight increase as compared to prior year sales of $ 60,724,000. domestic sales of $ 44,613,000 increased 2.4 % from the prior year sales of $ 43,570,000. international sales of $ 16,611,000 includes an unfavorable impact of $ 846,000 due to foreign exchange rates and reflects a 3.2 % decrease as compared to the prior year . hardware sales in fiscal 2013 were $ 25,169,000 , a 9.2 % increase as compared to prior year 's sales of $ 23,044,000 and represents 41.1 % of total sales as compared to 37.9 % of sales in the prior year . both product groups achieved growth in the current year , with t & m 's hardware sales up 5.0 % and quicklabel 's hardware sales up 17.2 % . the primary drivers of this increase relate to increases in t & m 's rugged and tmx product line sales and the increase in sales due to the introduction of quicklabel 's new kiaro ! product line . the increase in the current year 's hardware sales was tempered by lower sales of t & m 's recorder and data acquisition product lines and quicklabel 's vivo ! and zeo ! product lines . consumable sales in fiscal 2013 were $ 32,540,000 , representing a 3.8 % decrease as compared to prior year sales of $ 33,841,000. the key driver of the overall decrease in consumable sales for the current fiscal year was primarily traceable to the decline in label and tag sales in the quicklabel product group due to the january 2012 divestiture of the asheboro , north carolina facility , which contributed sales of approximately $ 4,100,000 in fiscal 2012. the decline in consumable product sales for the current year was tempered by an increase in sales of digital color printer supplies within the quicklabel product group , which were up 16.9 % over the prior year , as well as a slight increase in sales of quicklabel 's thermal transfer ribbon . service and other sales revenue in fiscal 2013 were $ 3,515,000 , a 8.4 % decrease compared to prior year sales of $ 3,839,000 due to lower repair and service revenue . the company achieved $ 23,728,000 in gross profit for fiscal 2013 and generated a gross profit margin of 38.8 % , an increase as compared to prior year 's gross profit margin of 36.3 % . the increase in gross profit margin for the current year is due to lower manufacturing costs and favorable product mix . operating expenses for the current year were $ 20,802,000 , representing a 1.2 % decrease from prior year 's operating expenses of $ 21,062,000. specifically , selling and marketing expenses decreased 2.9 % from prior year to $ 12,412,000 in fiscal 2013 , representing 20.3 % of sales , a slight decrease as compared to the prior year 's 21.0 % of sales . the decrease in selling and marketing was primarily the result of lower wages and benefits . general and administrative ( g & a ) expenses increased 15.4 % from prior year to $ 4,574,000 in fiscal 2013. the higher g & a expense was primarily due to an increase in wages and benefits for the current year , as well as an increase in professional fees spending as compared to the prior year . funding of research & development ( r & d ) in fiscal 2013 has decreased 11.7 % to $ 3,816,000. the decrease in r & d for fiscal 2013 is primarily due to the decrease in personnel costs and in prototype and outside research and development spending compared to the prior year . story_separator_special_tag as a result , significant judgment is required in determining the appropriate amounts to record and such judgments may prove to be incorrect in the future . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to the actual amounts . 20 inventories : inventories are stated at the lower of cost ( first-in , first-out ) or market . the company records provisions to write-down obsolete and excess inventory to its estimated net realizable value . the process for evaluating obsolete and excess inventory consists of analyzing the inventory supply on hand and estimating the net realizable value of the inventory based on historical experience , current business conditions and anticipated future sales . we believe that our procedures for estimating such amounts are reasonable and historically have not resulted in material adjustments in subsequent periods when the estimates are adjusted to actual experience . income taxes : a valuation allowance is established when it is more-likely-than-not that all or a portion of deferred tax assets will not be realized . a review of all available positive and negative evidence must be considered , including our performance , the market environment in which we operate , length of carryforward periods , existing sales backlog and future sales projections . if actual factors and conditions differ materially from the estimates made by management , the actual realization of the net deferred tax assets or liabilities could vary materially from the amounts previously recorded . at january 31 , 2013 , the company has provided valuation allowances for future tax benefits resulting from certain r & d tax credits which could expire unused . the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions . although guidance on the accounting for uncertain income taxes prescribes the use of a recognition and measurement model , the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . if the ultimate resolution of tax uncertainties is different from what we have estimated , our income tax expense could be materially impacted . long-lived assets and goodwill : the impairment of long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition . measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset . management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances , such as declines in sales , earnings or cash flows , or material adverse changes in the business climate , indicate that the carrying value of an asset might be impaired . during the fourth quarter of fiscal 2012 , we adopted new accounting guidance which simplifies goodwill impairment testing . under the new guidance , goodwill is first qualitatively assessed to determine whether further impairment testing is necessary . factors that management considers in this assessment include macroeconomic conditions , industry and market considerations , overall financial performance ( both current and projected ) , changes in management and strategy and changes in the composition or carrying amount of net assets . if this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , a two step process is then performed . step one compares the fair value of the reporting unit with its carrying value , including goodwill . if the carrying amount exceeds the fair value of the reporting unit , step two is required to determine if there is an impairment of the goodwill . step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill . we estimate the fair value of our reporting units using the income approach based upon a discounted cash flow model . we believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit 's expected longterm operating cash flow performance . in addition , the company uses the market approach , which compares the reporting unit to publicly-traded companies and transactions involving similar business , to support the conclusions based upon the income approach . the income approach requires the use of many assumptions and estimates including future revenue , expenses , capital expenditures , and working capital , as well as discount factors and income tax rates . share-based compensation : share-based compensation expense is based on the estimated fair value of the share-based award when granted . we have estimated the fair value of each option on the date of grant using the black-scholes option-pricing model . our estimate of share-based compensation requires a number of complex and subjective assumptions including our stock price volatility , employee exercise patterns ( expected life of the options ) , the risk free interest rate and the company 's dividend yield . the stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average 21 expected life of our options . management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors . in determining the expected life of the option grants , the company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed

