the company 's predecessor was founded in 1967 by wilhelmina cooper , a renowned fashion model , and is one of the oldest , best known and largest fashion model management companies in the world . since its founding , it has grown to include operations located in los angeles and miami , as well as a growing network of licensees comprising leading modeling agencies in various local markets across the u.s. , as well as in panama , thailand , dubai , vancouver and tokyo . the company provides traditional , full-service fashion model and talent management services , specializing in the representation and management of models , entertainers , artists , athletes and other talent to various customers and clients , including retailers , designers , advertising agencies and catalog companies . the business of talent management firms , such as wilhelmina , depends heavily on the state of the advertising industry , as demand for talent is driven by internet , print and tv advertising campaigns for consumer goods and retail clients . wilhelmina believes it has strong brand recognition which enables it to attract and retain top agents and talent to service a broad universe of clients . in order to take advantage of these opportunities and support its continued growth , the company will need to continue to successfully allocate resources and staffing in a way that enhances its ability to respond to these new opportunities . the company continues to focus on cutting costs , recruiting top agents when available and scouting and developing new talent . although wilhelmina has a large and diverse client base , it is not immune to global economic conditions . wilhelmina closely monitors economic conditions , client spending and other factors and continually looks for ways to reduce costs , manage working capital and conserve cash . there can be no assurance as to the effects on wilhelmina of future economic circumstances , client spending patterns , client credit worthiness and other developments and whether , or to what extent , wilhelmina 's efforts to respond to them will be effective . trends and opportunities the company expects that the combination of wilhelmina 's main operating base in new york city , the industry 's capital , with the depth and breadth of its talent pool and client roster and its diversification across various talent management segments , together with its geographical reach should make wilhelmina 's operations more resilient to industry changes and economic swings than those of many of the smaller firms operating in the industry . similarly , in the segments where wilhelmina competes with other leading full service agencies , wilhelmina competed successfully in 2013. with total advertising expenditures on major media ( newspapers , magazines , television , cinema , outdoor and internet ) exceeding approximately $ 160 billion in recent years , north america is by far the world 's largest advertising market . for the fashion talent management industry , including wilhelmina , advertising expenditures on magazines , television , internet and outdoor are of particular relevance . strategy management 's strategy is to increase value to shareholders through the following initiatives : develop wilhelmina into a global brand ; expand the women 's high end fashion board ; expand the wam business ; strategic acquisitions ; licensing the “ wilhelmina ” name to leading model management agencies ; licensing the “ wilhelmina ” brand in connection with consumer products , cosmetics and other beauty products ; and promoting model search contests , and events and partnering on media projects ( television , film , books , etc . ) . due to the increasing ubiquity of the internet as a standard business tool , the company has increasingly sought to harness the opportunities of the internet and other digital media to improve their communications with clients and to facilitate the effective exchange of fashion model and talent information . the company continues to make significant investments in technology ( including developing in-house art and social media departments ) in pursuit of gains in efficiency and better communications with customers . at the same time , the internet presents challenges for the company , including ( i ) the cannibalization of traditional print advertising business and ( ii ) pricing pressures with respect to photo shoots and client engagements . 10 results of operations of the company for the year ended december 31 , 2013 compared to year ended december 31 , 2012 the key financial indicators that the company reviews to monitor the business are gross billings , revenues , model costs , operating expenses and cash flows . the company analyzes revenue by reviewing the mix of revenues generated by the different “ boards ” ( each a specific division of the fashion model management operations which specializes by the type of model it represents ( women , men , direct , direct 2 , runway , curve , lifestyle , kids , etc . ) ) of the business , revenues by geographic locations and revenues from significant clients . wilhelmina has three primary sources of revenue : revenues from principal relationships whereby the gross amount billed to the client is recorded as revenue , when the revenues are earned and collectability is reasonably assured ; revenues from agent relationships whereby the commissions paid by models as a percentage of their gross earnings are recorded as revenue when earned and collectability is reasonably assured ; and separate service charges , paid by clients in addition to the booking fees , which are calculated as a percentage of the models ' booking fees and are recordedas revenues when earned and collectability is reasonably assured . story_separator_special_tag the following factors contributed to the increases in salaries and service costs when comparing the year ended december 31 , 2013 to the year ended december 31 , 2012 : the company hired additional key personnel to execute the company 's strategy to increase value to shareholders through the initiatives discussed in the “ strategy ” section above . during the year ended december 31 , 2013 , the company experienced an increase in t & e costs in connection with delivering services to its customers and models . the increases in salaries and service costs for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 were partially offset by the fact that during the year ended december 31 , 2012 , the company paid compensation costs of approximately $ 540,000 in connection with certain non-compete and contractual arrangements of former employees . the amount of salaries and service costs as a percentage of revenue for the year ended december 31 , 2013 declined to 17.4 % from 18.0 % for the year ended december 31 , 2012 . 13 office and general expenses office and general expenses consist of office and equipment rents , advertising and promotion , insurance expenses , administration and technology cost . these costs are less directly linked to changes in the company 's revenues than are salaries and service costs . during the year ended december 31 , 2013 , office and general expenses increased , when compared to the year ended december 31 , 2012 , due to costs associated with legal and professional fees , technology , and leases associated with equipment and property . the company continues to invest in technology , equipment and property to improve delivery of model management services to its talent . the amount of office and general expenses as a percentage of revenue for the year ended december 31 , 2013 declined to 5.6 % from 6.0 % for the year ended december 31 , 2012. operating margin operating margins increased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , as a result of an increase in revenues from the core modeling business and the results of certain management initiatives to decrease operating expenses as a percentage of revenues . amortization and depreciation depreciation and amortization expense is incurred with respect to certain assets , including computer hardware , software , office equipment , furniture , and other intangibles . during the year ended december 31 , 2013 , depreciation and amortization expense totaled $ 1,572,000 ( of which $ 1,432,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) , compared to $ 1,564,000 of depreciation and amortization expense during the year ended december 31 , 2012 ( of which $ 1,437,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) . fixed asset purchases totaled approximately $ 421,000 and $ 102,000 during the year ended december 31 , 2013 and december 31 , 2012 , respectively . approximately $ 270,000 of the fixed assets purchases during the year ended december 31 , 2013 related to leasehold improvements and new fixtures in the new york office . in accordance with the new york office lease ( office located at 300 park ave south ) , the company is entitled to a reimbursement from the landlord of approximately $ 190,000 of leasehold improvements . the company received reimbursement from the landlord in early 2014. corporate overhead corporate overhead expenses include public company costs , director and executive officer compensation , directors ' and officers ' insurance , legal , audit and professional fees , corporate office rent and travel . corporate overhead decreased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , due to a decline in stock exchange fees , executive search fees and travel . asset impairment charge each reporting period , the company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value . if the carrying amount of the intangible asset exceeds its fair value , an asset impairment charge will be recognized in an amount equal to that excess . no asset impairment charges were incurred during the year ended december 31 , 2013 and december 31 , 2012. interest expense the increase in interest expense for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , is the result of an increase in average borrowings under the credit agreement . income taxes generally , the company 's combined effective tax rate is high relative to reported net income as a result of certain amounts of amortization expense and corporate overhead not being deductible or attributable to states in which it operates . currently , the majority of taxes being paid by the company are state taxes , not federal taxes . the company operates in three states which have relatively high tax rates : california , new york and florida . the company 's combined ( federal and state ) effective tax rate would be even higher if it were not for federal net operating loss carryforwards available to offset current federal taxable income . after adjusting for taxable income in 2013 , the company had federal income tax loss carryforwards of approximately $ 3,000,000 , which begin expiring in 2019. a portion of the company 's federal net operating loss carryforwards were utilized to offset federal taxable income generated during the year ended december 31 , 2013. realization of the company 's carryforwards is dependent on future taxable income . as of december 31 , 2013 , management determined that the deferred tax asset ( `` dta `` ) valuation allowance of approximately $ 2,500,000 should be reversed . the decision to

liquidity and capital resources the company 's cash balance increased to $ 2,776,000 at december 31 , 2013 , from $ 1,145,000 at december 31 , 2012. for the year ended december 31 , 2013 , cash balances increased as a result of cash flows from operations of approximately $ 2,932,000 before the payment of approximately $ 454,000 in settlement of foreign withholding tax claims for tax years 2006 and 2008. the company offset approximately $ 454,000 of its remaining approximately $ 509,000 miami earnout obligation ( as of december 31 , 2012 ) for losses incurred in the settlement of these foreign withholding claims for tax years 2006 and 2008. cash flow from operations were also utilized during the year ended december 31 , 2013 , to make payments under the credit agreement with amegy of $ 450,000 , to repurchase 2,263,110 shares of the company 's common stock , totaling approximately $ 410,000 and to purchase approximately $ 421,000 of fixed assets . as previously discussed approximately $ 270,000 of the fixed asset purchases related to leasehold improvements and fixtures in the new york office , of which $ 190,000 were reimbursed by the landlord in early 2014. the company 's primary liquidity needs are for financingworking capital associated with the expenses it incurs in performing services under its client contracts .


 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 's cash balance increased to $ 2,776,000 at december 31 , 2013 , from $ 1,145,000 at december 31 , 2012. for the year ended december 31 , 2013 , cash balances increased as a result of cash flows from operations of approximately $ 2,932,000 before the payment of approximately $ 454,000 in settlement of foreign withholding tax claims for tax years 2006 and 2008. the company offset approximately $ 454,000 of its remaining approximately $ 509,000 miami earnout obligation ( as of december 31 , 2012 ) for losses incurred in the settlement of these foreign withholding claims for tax years 2006 and 2008. cash flow from operations were also utilized during the year ended december 31 , 2013 , to make payments under the credit agreement with amegy of $ 450,000 , to repurchase 2,263,110 shares of the company 's common stock , totaling approximately $ 410,000 and to purchase approximately $ 421,000 of fixed assets . as previously discussed approximately $ 270,000 of the fixed asset purchases related to leasehold improvements and fixtures in the new york office , of which $ 190,000 were reimbursed by the landlord in early 2014. the company 's primary liquidity needs are for financingworking capital associated with the expenses it incurs in performing services under its client contracts .
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 Suspicious Activity Report : the company 's predecessor was founded in 1967 by wilhelmina cooper , a renowned fashion model , and is one of the oldest , best known and largest fashion model management companies in the world . since its founding , it has grown to include operations located in los angeles and miami , as well as a growing network of licensees comprising leading modeling agencies in various local markets across the u.s. , as well as in panama , thailand , dubai , vancouver and tokyo . the company provides traditional , full-service fashion model and talent management services , specializing in the representation and management of models , entertainers , artists , athletes and other talent to various customers and clients , including retailers , designers , advertising agencies and catalog companies . the business of talent management firms , such as wilhelmina , depends heavily on the state of the advertising industry , as demand for talent is driven by internet , print and tv advertising campaigns for consumer goods and retail clients . wilhelmina believes it has strong brand recognition which enables it to attract and retain top agents and talent to service a broad universe of clients . in order to take advantage of these opportunities and support its continued growth , the company will need to continue to successfully allocate resources and staffing in a way that enhances its ability to respond to these new opportunities . the company continues to focus on cutting costs , recruiting top agents when available and scouting and developing new talent . although wilhelmina has a large and diverse client base , it is not immune to global economic conditions . wilhelmina closely monitors economic conditions , client spending and other factors and continually looks for ways to reduce costs , manage working capital and conserve cash . there can be no assurance as to the effects on wilhelmina of future economic circumstances , client spending patterns , client credit worthiness and other developments and whether , or to what extent , wilhelmina 's efforts to respond to them will be effective . trends and opportunities the company expects that the combination of wilhelmina 's main operating base in new york city , the industry 's capital , with the depth and breadth of its talent pool and client roster and its diversification across various talent management segments , together with its geographical reach should make wilhelmina 's operations more resilient to industry changes and economic swings than those of many of the smaller firms operating in the industry . similarly , in the segments where wilhelmina competes with other leading full service agencies , wilhelmina competed successfully in 2013. with total advertising expenditures on major media ( newspapers , magazines , television , cinema , outdoor and internet ) exceeding approximately $ 160 billion in recent years , north america is by far the world 's largest advertising market . for the fashion talent management industry , including wilhelmina , advertising expenditures on magazines , television , internet and outdoor are of particular relevance . strategy management 's strategy is to increase value to shareholders through the following initiatives : develop wilhelmina into a global brand ; expand the women 's high end fashion board ; expand the wam business ; strategic acquisitions ; licensing the “ wilhelmina ” name to leading model management agencies ; licensing the “ wilhelmina ” brand in connection with consumer products , cosmetics and other beauty products ; and promoting model search contests , and events and partnering on media projects ( television , film , books , etc . ) . due to the increasing ubiquity of the internet as a standard business tool , the company has increasingly sought to harness the opportunities of the internet and other digital media to improve their communications with clients and to facilitate the effective exchange of fashion model and talent information . the company continues to make significant investments in technology ( including developing in-house art and social media departments ) in pursuit of gains in efficiency and better communications with customers . at the same time , the internet presents challenges for the company , including ( i ) the cannibalization of traditional print advertising business and ( ii ) pricing pressures with respect to photo shoots and client engagements . 10 results of operations of the company for the year ended december 31 , 2013 compared to year ended december 31 , 2012 the key financial indicators that the company reviews to monitor the business are gross billings , revenues , model costs , operating expenses and cash flows . the company analyzes revenue by reviewing the mix of revenues generated by the different “ boards ” ( each a specific division of the fashion model management operations which specializes by the type of model it represents ( women , men , direct , direct 2 , runway , curve , lifestyle , kids , etc . ) ) of the business , revenues by geographic locations and revenues from significant clients . wilhelmina has three primary sources of revenue : revenues from principal relationships whereby the gross amount billed to the client is recorded as revenue , when the revenues are earned and collectability is reasonably assured ; revenues from agent relationships whereby the commissions paid by models as a percentage of their gross earnings are recorded as revenue when earned and collectability is reasonably assured ; and separate service charges , paid by clients in addition to the booking fees , which are calculated as a percentage of the models ' booking fees and are recordedas revenues when earned and collectability is reasonably assured . story_separator_special_tag the following factors contributed to the increases in salaries and service costs when comparing the year ended december 31 , 2013 to the year ended december 31 , 2012 : the company hired additional key personnel to execute the company 's strategy to increase value to shareholders through the initiatives discussed in the “ strategy ” section above . during the year ended december 31 , 2013 , the company experienced an increase in t & e costs in connection with delivering services to its customers and models . the increases in salaries and service costs for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 were partially offset by the fact that during the year ended december 31 , 2012 , the company paid compensation costs of approximately $ 540,000 in connection with certain non-compete and contractual arrangements of former employees . the amount of salaries and service costs as a percentage of revenue for the year ended december 31 , 2013 declined to 17.4 % from 18.0 % for the year ended december 31 , 2012 . 13 office and general expenses office and general expenses consist of office and equipment rents , advertising and promotion , insurance expenses , administration and technology cost . these costs are less directly linked to changes in the company 's revenues than are salaries and service costs . during the year ended december 31 , 2013 , office and general expenses increased , when compared to the year ended december 31 , 2012 , due to costs associated with legal and professional fees , technology , and leases associated with equipment and property . the company continues to invest in technology , equipment and property to improve delivery of model management services to its talent . the amount of office and general expenses as a percentage of revenue for the year ended december 31 , 2013 declined to 5.6 % from 6.0 % for the year ended december 31 , 2012. operating margin operating margins increased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , as a result of an increase in revenues from the core modeling business and the results of certain management initiatives to decrease operating expenses as a percentage of revenues . amortization and depreciation depreciation and amortization expense is incurred with respect to certain assets , including computer hardware , software , office equipment , furniture , and other intangibles . during the year ended december 31 , 2013 , depreciation and amortization expense totaled $ 1,572,000 ( of which $ 1,432,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) , compared to $ 1,564,000 of depreciation and amortization expense during the year ended december 31 , 2012 ( of which $ 1,437,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) . fixed asset purchases totaled approximately $ 421,000 and $ 102,000 during the year ended december 31 , 2013 and december 31 , 2012 , respectively . approximately $ 270,000 of the fixed assets purchases during the year ended december 31 , 2013 related to leasehold improvements and new fixtures in the new york office . in accordance with the new york office lease ( office located at 300 park ave south ) , the company is entitled to a reimbursement from the landlord of approximately $ 190,000 of leasehold improvements . the company received reimbursement from the landlord in early 2014. corporate overhead corporate overhead expenses include public company costs , director and executive officer compensation , directors ' and officers ' insurance , legal , audit and professional fees , corporate office rent and travel . corporate overhead decreased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , due to a decline in stock exchange fees , executive search fees and travel . asset impairment charge each reporting period , the company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value . if the carrying amount of the intangible asset exceeds its fair value , an asset impairment charge will be recognized in an amount equal to that excess . no asset impairment charges were incurred during the year ended december 31 , 2013 and december 31 , 2012. interest expense the increase in interest expense for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , is the result of an increase in average borrowings under the credit agreement . income taxes generally , the company 's combined effective tax rate is high relative to reported net income as a result of certain amounts of amortization expense and corporate overhead not being deductible or attributable to states in which it operates . currently , the majority of taxes being paid by the company are state taxes , not federal taxes . the company operates in three states which have relatively high tax rates : california , new york and florida . the company 's combined ( federal and state ) effective tax rate would be even higher if it were not for federal net operating loss carryforwards available to offset current federal taxable income . after adjusting for taxable income in 2013 , the company had federal income tax loss carryforwards of approximately $ 3,000,000 , which begin expiring in 2019. a portion of the company 's federal net operating loss carryforwards were utilized to offset federal taxable income generated during the year ended december 31 , 2013. realization of the company 's carryforwards is dependent on future taxable income . as of december 31 , 2013 , management determined that the deferred tax asset ( `` dta `` ) valuation allowance of approximately $ 2,500,000 should be reversed . the decision to

