although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable , any of the assumptions could be inaccurate ; therefore , there can be no assurance that the forward-looking statements included in this form 10-k will prove to be accurate . 25 in light of the significant uncertainties inherent in the forward-looking statements included herein , the inclusion of such information should not be regarded as a representation by the company or any person that the objectives and expectations of the company will be achieved . losses from operations ; accumulated deficit ; negative net worth and going concern . historically , the company has not generated sufficient revenues from operations to self-fund its capital and operating requirements . following the equity raise closed in early 2012 and subsequent reductions of debt coupled with the continued improvement in the company 's operations , management believes the company has sufficient resources and that it is generating significant revenues that it expects will provide the company with the ability to self-fund its capital and operating requirements . if that is not possible , the company will seek additional working capital from funding that will primarily include equity and debt placements . overview cui global , inc. is dedicated to maximizing shareholder value through the acquisition , development and commercialization of innovative companies and technologies . from its gaspt2 platform targeting the energy sector , to its subsidiary cui , inc. 's industry leading digital power platform targeting the networking and telecom industries , cui global has built a diversified portfolio of industry leading technologies that touch many markets . in may 2008 , cui global formed a wholly owned subsidiary that acquired the assets of cui , inc. , a technology company dedicated to the development , commercialization , and distribution of new , innovative electro-mechanical products . over the past 20 years , cui has become a recognized name in electronic components worldwide in the areas of power , interconnect , motion control , and sound . in that time , the company has been able to leverage many long-standing relationships in asia to create a flexible , responsive business model that ultimately benefits cui customers . today , its industry leading technology platforms which include novum advanced power , solus power topology and amt capacitive encoders are quickly positioning cui , inc. as a global leader in the fields of power electronics and motion control . through the acquisition of cui , inc. the company obtained 352,589 common shares representing an 11.54 % interest in test products international , inc. , a provider of handheld test and measurement equipment . effective july 1 , 2009 , cui global acquired cui japan ( formerly comex instruments ltd. ) and 49 % of comex electronics ltd. both companies are japanese based . cui japan test and measurement systems and electronic components and comex instruments is a dsp provider of digital to analog and analog to digital test and measurement systems for oem research and development . effective july 1 , 2011 , cui global entered into an agreement to convey the 49 % ownership of comex electronics to the owners of the 51 % , for $ 617,975 in the form of a five year note receivable bearing interest at 4 % per annum . as such , the operations of comex electronics are reported as discontinued operations for the current and comparable periods . the company recognized a gain on divestment of comex electronics of $ 603,034. cui global will continue to maintain its 100 % ownership of cui japan . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that have a significant impact on the results the company will report in the company 's financial statements . some of the company 's accounting policies require the company to make difficult and subjective judgments , often as a result of the need to make estimates of matters that are inherently uncertain . actual results may differ from these estimates under different assumptions or conditions . 26 asset impairment the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable . in performing the review for recoverability , the company estimates the future cash flows expected to result from the use of the asset and its eventual disposition . if the sum of the expected future cash flows ( undiscounted and without interest charges ) is less than the carrying amount of the asset , an impairment loss is recognized as the excess of the carrying amount over the fair value . otherwise , an impairment loss is not recognized . management estimates the fair value and the estimated future cash flows expected . any changes in these estimates could impact whether there was impairment and the amount of the impairment . valuation of non-cash capital stock issuances the company values its stock transactions based upon the fair value of the equity instruments . various methods can be used to determine the fair value of the equity instrument . the company may use the fair value of the consideration received , the quoted market price of the stock or a contemporaneous cash sale of the common or preferred stock . each of these methods may produce a different result . management uses the method it determines most appropriately reflects the stock transaction . if a different method was used it could impact the expense and equity stock accounts . story_separator_special_tag impairment loss the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable . in performing the review for recoverability , the future cash flows expected to result from the use of the asset and its eventual disposition are estimated . if the sum of the expected future cash flows ( undiscounted and without interest charges ) is less than the carrying amount of the asset , an impairment loss is recognized as the excess of the carrying amount over the fair value . otherwise , an impairment loss is not recognized . management estimates the fair value and the estimated future cash flows expected . any changes in these estimates could impact whether there was impairment and the amount of the impairment . there were no impairment charges recognized in 2011. during the year ended december 31 , 2010 the company recorded impairment charges of $ 3,105,956 related to technology rights and $ 418,185 related to patents . bad debt bad debt expense increased to $ 82,192 for the year ended december 31 , 2011 from $ 64,684 for the same period ended 2010. the bad debt expense for both 2011 and 2010 represents less than 0.5 % of total revenues . the bad debt expense for both periods relates to miscellaneous receivables which the company has either recorded an allowance for doubtful collections of the receivable or for which the company has determined the balance to be uncollectible . 32 other income during the years ended 2011 and 2010 , the company had other income of $ 53,657 and $ 87,178 , respectively . other income for the year ended december 31 , 2011 , consisted of $ 18,688 in bad debt recoveries , $ 17,592 of interest income , $ 15,103 of foreign exchange gain , and $ 2,274 of other income . other income for the year ended december 31 , 2010 , consisted of $ 31,496 for foreign exchange gain , $ 24,582 for interest income , $ 20,090 of rental income , and $ 11,010 in other income . investment income the company recognized investment income on equity investment in an affiliate of $ 41,472 for the year ended december 31 , 2011 as compared with $ 78,074 for the same period ended 2010. financing fees during 2011 , the company did not incur financing fees . during 2010 , the company had financing fees totaling $ 78,658 related to equity financing , the operating line of credit and term notes . change in value of warranty liability during 2011 and 2010 , there was no change in the value of warranty liability . non-cash interest expense , amortization of beneficial conversion value , amortization of debt offering costs , warrant related debt discounts , intrinsic value of convertible debt and amortization of warrant related debt discount the company recorded an expense of $ 334,747 and $ 3,859,342 during 2011 and 2010 , respectively , for non-cash interest expenses , including amortization of beneficial conversion value , amortization of debt offering costs , warrant related debt discounts and intrinsic value of convertible debt and amortization of debt discount . the decrease in this expense is primarily associated with the completion in 2010 of expensing the remaining balance of the discount on convertible note payable for the $ 4,900,000 note that was settled in full during 2010. interest expense the company incurred $ 918,189 and $ 1,151,617 of interest expense during 2011 and 2010 , respectively . interest expense is for interest on the secured and unsecured convertible notes , secured and unsecured promissory notes , and bank working capital loans and term loans . profit ( loss ) from discontinued operations for the year ended december 31 , 2011 , the loss from discontinued operations was $ 160,153 as compared to a loss from discontinued operations of $ 871,803 for the same period of 2010. during the year ended 2011 , cui global recognized a gain on divestment of comex electronics of $ 603,034 in discontinued operations . there was no gain on divestment during 2010. for the year ended december 31 , 2011 , the company had a net profit from discontinued operations of $ 442,881 as compared to a net loss from discontinued operations of $ 871,803 for the same period in 2010. consolidated net loss the company had a net profit of $ 19,109 for the year ended december 31 , 2011 as compared to a net loss of $ 7,460,516 for the year ended december 31 , 2010. the improvement from a net loss in 2010 to a net profit in 2011 is primarily the result of the following items : an increase in total revenues of $ 1,363,169 , an increase in cost of revenues of $ 1,405,863 , an increase in selling , general and administrative expenses of $ 1,355,877 , no impairment expenses in 2011 as compared to 2010 for a reduction in expenses of $ 3,524,141 , a gain on the sale of technology rights of $ 143,636 , a decrease in interest expense – intrinsic value of convertible debt , amortization of debt offering costs and amortization of debt discount of $ 3,524,595 , a decrease in interest expense of $ 233,428 , and the divestment of comex electronics which reduced the losses from those discontinued operations attributable to the company in 2011 as well as the gain on the divestment of $ 603,034 . 33 recent accounting pronouncements in june , 2011 , the fasb issued asu no . 2011-05 , which amends asc topic 220 , comprehensive income . under the amendment , an entity has the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but

cash provided by operations operating requirements generated positive cash flow from operations of $ 860,705 and $ 416,749 during the years ended december 31 , 2011 and 2010 , respectively . this improvement is primarily the result of a lower net loss in 2011 , a gain on the sale of technology rights , a decrease in trade accounts receivable , a decrease in inventory , increases in prepaid expenses and other current assets , increased accounts payable , decreased accrued expenses and decreases in accrued compensation . during 2011 and 2010 , the company has used stock and warrants as a form of payment to certain vendors , consultants and employees . for 2011 and 2010 , respectively , the company recorded a total of $ 227,867 and $ 144,912 for compensation and services expense including amortization of deferred compensation related to equity given or to be given to employees and consultants for services provided . during 2011 , cui global recorded one significant non-cash entry - $ 334,747 of non-cash interest expense , including amortization of debt offering costs . during 2010 , the company recorded three significant non-cash entries - $ 3,859,342 of non-cash interest expense , including amortization of the beneficial conversion value , amortization of debt offering costs , warrant related debt discounts and intrinsic value of convertible debt and amortization of debt discount , $ 3,105,956 for the impairment of technology rights and $ 418,185 of non-cash loss for the impairment of patents . during 2011 and 2010 , the company had positive cash flow from discontinued operations of $ 22,141 and $ 78,295 , respectively . as the company continues to focus on technology development and product line additions during 2012 , it will continue to fund research and development together with related sales and marketing efforts for its technology platforms including the vergence gaspt2 , novum advanced power , solus power topology , amt capacitive encoders , and its other electromechanical products .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash provided by operations operating requirements generated positive cash flow from operations of $ 860,705 and $ 416,749 during the years ended december 31 , 2011 and 2010 , respectively . this improvement is primarily the result of a lower net loss in 2011 , a gain on the sale of technology rights , a decrease in trade accounts receivable , a decrease in inventory , increases in prepaid expenses and other current assets , increased accounts payable , decreased accrued expenses and decreases in accrued compensation . during 2011 and 2010 , the company has used stock and warrants as a form of payment to certain vendors , consultants and employees . for 2011 and 2010 , respectively , the company recorded a total of $ 227,867 and $ 144,912 for compensation and services expense including amortization of deferred compensation related to equity given or to be given to employees and consultants for services provided . during 2011 , cui global recorded one significant non-cash entry - $ 334,747 of non-cash interest expense , including amortization of debt offering costs . during 2010 , the company recorded three significant non-cash entries - $ 3,859,342 of non-cash interest expense , including amortization of the beneficial conversion value , amortization of debt offering costs , warrant related debt discounts and intrinsic value of convertible debt and amortization of debt discount , $ 3,105,956 for the impairment of technology rights and $ 418,185 of non-cash loss for the impairment of patents . during 2011 and 2010 , the company had positive cash flow from discontinued operations of $ 22,141 and $ 78,295 , respectively . as the company continues to focus on technology development and product line additions during 2012 , it will continue to fund research and development together with related sales and marketing efforts for its technology platforms including the vergence gaspt2 , novum advanced power , solus power topology , amt capacitive encoders , and its other electromechanical products .
```    
 Suspicious Activity Report : although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable , any of the assumptions could be inaccurate ; therefore , there can be no assurance that the forward-looking statements included in this form 10-k will prove to be accurate . 25 in light of the significant uncertainties inherent in the forward-looking statements included herein , the inclusion of such information should not be regarded as a representation by the company or any person that the objectives and expectations of the company will be achieved . losses from operations ; accumulated deficit ; negative net worth and going concern . historically , the company has not generated sufficient revenues from operations to self-fund its capital and operating requirements . following the equity raise closed in early 2012 and subsequent reductions of debt coupled with the continued improvement in the company 's operations , management believes the company has sufficient resources and that it is generating significant revenues that it expects will provide the company with the ability to self-fund its capital and operating requirements . if that is not possible , the company will seek additional working capital from funding that will primarily include equity and debt placements . overview cui global , inc. is dedicated to maximizing shareholder value through the acquisition , development and commercialization of innovative companies and technologies . from its gaspt2 platform targeting the energy sector , to its subsidiary cui , inc. 's industry leading digital power platform targeting the networking and telecom industries , cui global has built a diversified portfolio of industry leading technologies that touch many markets . in may 2008 , cui global formed a wholly owned subsidiary that acquired the assets of cui , inc. , a technology company dedicated to the development , commercialization , and distribution of new , innovative electro-mechanical products . over the past 20 years , cui has become a recognized name in electronic components worldwide in the areas of power , interconnect , motion control , and sound . in that time , the company has been able to leverage many long-standing relationships in asia to create a flexible , responsive business model that ultimately benefits cui customers . today , its industry leading technology platforms which include novum advanced power , solus power topology and amt capacitive encoders are quickly positioning cui , inc. as a global leader in the fields of power electronics and motion control . through the acquisition of cui , inc. the company obtained 352,589 common shares representing an 11.54 % interest in test products international , inc. , a provider of handheld test and measurement equipment . effective july 1 , 2009 , cui global acquired cui japan ( formerly comex instruments ltd. ) and 49 % of comex electronics ltd. both companies are japanese based . cui japan test and measurement systems and electronic components and comex instruments is a dsp provider of digital to analog and analog to digital test and measurement systems for oem research and development . effective july 1 , 2011 , cui global entered into an agreement to convey the 49 % ownership of comex electronics to the owners of the 51 % , for $ 617,975 in the form of a five year note receivable bearing interest at 4 % per annum . as such , the operations of comex electronics are reported as discontinued operations for the current and comparable periods . the company recognized a gain on divestment of comex electronics of $ 603,034. cui global will continue to maintain its 100 % ownership of cui japan . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that have a significant impact on the results the company will report in the company 's financial statements . some of the company 's accounting policies require the company to make difficult and subjective judgments , often as a result of the need to make estimates of matters that are inherently uncertain . actual results may differ from these estimates under different assumptions or conditions . 26 asset impairment the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable . in performing the review for recoverability , the company estimates the future cash flows expected to result from the use of the asset and its eventual disposition . if the sum of the expected future cash flows ( undiscounted and without interest charges ) is less than the carrying amount of the asset , an impairment loss is recognized as the excess of the carrying amount over the fair value . otherwise , an impairment loss is not recognized . management estimates the fair value and the estimated future cash flows expected . any changes in these estimates could impact whether there was impairment and the amount of the impairment . valuation of non-cash capital stock issuances the company values its stock transactions based upon the fair value of the equity instruments . various methods can be used to determine the fair value of the equity instrument . the company may use the fair value of the consideration received , the quoted market price of the stock or a contemporaneous cash sale of the common or preferred stock . each of these methods may produce a different result . management uses the method it determines most appropriately reflects the stock transaction . if a different method was used it could impact the expense and equity stock accounts . story_separator_special_tag impairment loss the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable . in performing the review for recoverability , the future cash flows expected to result from the use of the asset and its eventual disposition are estimated . if the sum of the expected future cash flows ( undiscounted and without interest charges ) is less than the carrying amount of the asset , an impairment loss is recognized as the excess of the carrying amount over the fair value . otherwise , an impairment loss is not recognized . management estimates the fair value and the estimated future cash flows expected . any changes in these estimates could impact whether there was impairment and the amount of the impairment . there were no impairment charges recognized in 2011. during the year ended december 31 , 2010 the company recorded impairment charges of $ 3,105,956 related to technology rights and $ 418,185 related to patents . bad debt bad debt expense increased to $ 82,192 for the year ended december 31 , 2011 from $ 64,684 for the same period ended 2010. the bad debt expense for both 2011 and 2010 represents less than 0.5 % of total revenues . the bad debt expense for both periods relates to miscellaneous receivables which the company has either recorded an allowance for doubtful collections of the receivable or for which the company has determined the balance to be uncollectible . 32 other income during the years ended 2011 and 2010 , the company had other income of $ 53,657 and $ 87,178 , respectively . other income for the year ended december 31 , 2011 , consisted of $ 18,688 in bad debt recoveries , $ 17,592 of interest income , $ 15,103 of foreign exchange gain , and $ 2,274 of other income . other income for the year ended december 31 , 2010 , consisted of $ 31,496 for foreign exchange gain , $ 24,582 for interest income , $ 20,090 of rental income , and $ 11,010 in other income . investment income the company recognized investment income on equity investment in an affiliate of $ 41,472 for the year ended december 31 , 2011 as compared with $ 78,074 for the same period ended 2010. financing fees during 2011 , the company did not incur financing fees . during 2010 , the company had financing fees totaling $ 78,658 related to equity financing , the operating line of credit and term notes . change in value of warranty liability during 2011 and 2010 , there was no change in the value of warranty liability . non-cash interest expense , amortization of beneficial conversion value , amortization of debt offering costs , warrant related debt discounts , intrinsic value of convertible debt and amortization of warrant related debt discount the company recorded an expense of $ 334,747 and $ 3,859,342 during 2011 and 2010 , respectively , for non-cash interest expenses , including amortization of beneficial conversion value , amortization of debt offering costs , warrant related debt discounts and intrinsic value of convertible debt and amortization of debt discount . the decrease in this expense is primarily associated with the completion in 2010 of expensing the remaining balance of the discount on convertible note payable for the $ 4,900,000 note that was settled in full during 2010. interest expense the company incurred $ 918,189 and $ 1,151,617 of interest expense during 2011 and 2010 , respectively . interest expense is for interest on the secured and unsecured convertible notes , secured and unsecured promissory notes , and bank working capital loans and term loans . profit ( loss ) from discontinued operations for the year ended december 31 , 2011 , the loss from discontinued operations was $ 160,153 as compared to a loss from discontinued operations of $ 871,803 for the same period of 2010. during the year ended 2011 , cui global recognized a gain on divestment of comex electronics of $ 603,034 in discontinued operations . there was no gain on divestment during 2010. for the year ended december 31 , 2011 , the company had a net profit from discontinued operations of $ 442,881 as compared to a net loss from discontinued operations of $ 871,803 for the same period in 2010. consolidated net loss the company had a net profit of $ 19,109 for the year ended december 31 , 2011 as compared to a net loss of $ 7,460,516 for the year ended december 31 , 2010. the improvement from a net loss in 2010 to a net profit in 2011 is primarily the result of the following items : an increase in total revenues of $ 1,363,169 , an increase in cost of revenues of $ 1,405,863 , an increase in selling , general and administrative expenses of $ 1,355,877 , no impairment expenses in 2011 as compared to 2010 for a reduction in expenses of $ 3,524,141 , a gain on the sale of technology rights of $ 143,636 , a decrease in interest expense – intrinsic value of convertible debt , amortization of debt offering costs and amortization of debt discount of $ 3,524,595 , a decrease in interest expense of $ 233,428 , and the divestment of comex electronics which reduced the losses from those discontinued operations attributable to the company in 2011 as well as the gain on the divestment of $ 603,034 . 33 recent accounting pronouncements in june , 2011 , the fasb issued asu no . 2011-05 , which amends asc topic 220 , comprehensive income . under the amendment , an entity has the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but

