our diversified portfolio of differentiated , high-energy food and beverage hospitality solutions provides landlords and owners a choice of having one or several of our concepts and or services in their venues . these locations are operated under our management agreements under which we earn a management fee based on revenue and an incentive fee based on profitability of the underlying operations . we typically target food and beverage hospitality opportunities where we believe we can generate $ 500,000 to $ 750,000 of annual pre-tax income exclusive of any related stk revenues or profits . we also own or manage a small number of other standalone restaurants and lounges . net losses for the year ended december 31 , 2013 and december 31 , 2012 were $ 21.9 million and $ 2.8 million , respectively , and included a derivative expense of $ 10.1 million related to the potential exercise of our publicly traded warrants , a one-time change of control premium of $ 5.0 million and transactions costs of $ 4.6 million for the years ended december 31 , 2013 , as well as a loss from discontinued operations of $ 5.4 million and $ 10.0 million for the years ended december 31 , 2013 and 2012 , respectively . the loss from discontinued operations reflects our exiting of non-strategic and underperforming units during these periods and includes the closing of the bagatelle unit in las vegas during 2013 as well as the proposed termination of the management agreement with the palms hotel in las vegas for the heraea concept and the proposed termination of the lease with the palms hotel in las vegas for the xishi concept . in addition , we closed the one concept in atlantic city in 2012 and a kiosk in new york city which featured burgers and shakes in 2013. our growth strategies and outlook our growth model is comprised of the following four primary drivers : expansion of stk . we have identified over 50 additional major metropolitan markets globally where we could grow our stk brand over time . we expect to open as many as two to three stks annually in the next three years and to target approximately 25 % annual unit growth thereafter provided that we have enough capital , acceptable locations and quality restaurant managers available to support that pace of growth . we believe that the completion of the merger will enable us to opportunistically invest more of our own capital in projects in order to capture a greater proportion of the economic returns . however , there can be no assurance that we will be able to open new stks at the rate we currently expect or that our pipeline of planned offerings will be fully realized . expansion through new food & beverage hospitality projects . we believe we are well positioned to leverage the strength of our brands and the relationships we have developed with global hospitality providers to drive the continued growth of our food and beverage hospitality projects , which traditionally have provided fee income with minimal capital expenditures . we continue to receive significant inbound inquiries regarding new services in new hospitality opportunities globally and to work with existing hospitality clients to identify and develop additional opportunities in their venues . going forward , we expect to target at least one new f & b hospitality project every 12 to 18 months . however , we can not control the timing and number of acceptable opportunities that will be offered to us for our consideration . expand our non-stk concepts and services . we believe our existing restaurant concepts and food and beverage hospitality services have significant room to grow and that our presence , brand recognition and operating performance from our continuing operations provide us with the ability to expand these concepts in the north american and international markets , with near term focus on europe and in the longer term , asia and the middle east . increase our operating efficiency . in addition to expanding into new cities and hospitality venues , we intend to increase revenue and profits in our existing operations , and we believe that , following the merger , we have more capital and resources available to allocate towards operational initiatives . we expect to grow same store sales by approximately 1 % annually as a result of our renewed focus on this aspect of our growth plan . we also expect operating margin improvements as our restaurants and services mature . however , there can be no assurances that any increases in same store sales or operating margins will be achieved . furthermore , as our footprint continues to increase in scale , we expect to benefit by leveraging system-wide operating efficiencies and best practices . 35 key performance indicators we use the following key performance indicators in evaluating our restaurants and assessing our business : number of restaurant openings . number of restaurant openings reflects the number of restaurants opened during a particular fiscal period . for each restaurant opening , we incur pre-opening costs , which are defined below . typically , new restaurants open with an initial start-up period of higher than normalized sales volumes ( also referred to in the restaurant industry as the “ honeymoon ” period ) , which decrease to a steady level approximately 18 months after opening . however , operating costs during this initial 18 month period are also higher than normal , resulting in restaurant operating margins that are generally lower during the start-up period of operation and increase to a steady level approximately 18 months after opening . some new restaurants may experience a “ honeymoon ” period either shorter or longer than 18 months . average check . average check is calculated by dividing total restaurant sales by total entrees sold for a given time period . story_separator_special_tag general and administrative costs increased $ 8.6 million to $ 10.8 million , or 388.6 % , during the year ended december 31 , 2013 from $ 2.2 million for the year ended december 31 , 2012. general and administrative costs as a percentage of total revenues increased from 3.7 % for the year ended december 31 , 2012 to 23.4 % for the year ended december 31 , 2013. this increase was due to a one-time transaction control premium of $ 5.0 million , transaction sign on bonuses and taxes of $ 750,000 , a restricted stock grant of $ 295,000 and stock based compensation awards of $ 56,000 , as well as additional payroll related to the expansion of our corporate infrastructure to help facilitate our long-term growth in the united states and united kingdom . depreciation and amortization . depreciation and amortization expense decreased $ 5.7 million , or 77.8 % , from $ 7.4 million in the year ended december 31 , 2012 to $ 1.6 million for the year ended december 31 , 2013. this decrease was primarily related to the temporary closure of the stk in miami at the perry hotel due to a major renovation and a non-recurring acceleration of depreciation charge of $ 5.2 million in 2012 . 42 management and royalty fees . management and royalty fees decreased $ 197,000 , or 57.7 % , from $ 341,000 or 0.6 % of total revenues for the year ended december 31 , 2012 to $ 144,000 or 0.3 % of total revenues during the year ended december 31 , 2013 , due to the termination of the management agreement with the group that managed the tenjune unit in february 2013. the tenjune unit was managed by us from february 2013 until its closing in february 2014. pre-opening expenses . restaurant pre-opening costs increased $ 709,000 , or 508.1 % , from $ 140,000 or 0.2 % of total revenues for the year ended december 31 , 2012 to $ 849,000 or 1.8 % of total revenues for the year ended december 31 , 2013. during the year ended december 31 , 2012 , we opened six non-stk units in the united states as well as the food and beverage hospitality services for the hippodrome casino in london . there were also pre-opening expenses for three non-stk units that were opened in 2012 and were subsequently closed , which are therefore included in discontinued operations . during the year ended december 31 , 2013 , we initiated the food and beverage services for the me hotel in london as well as the management services for a non-stk unit in las vegas . we also commenced construction on a new stk in washington , dc which is scheduled to open in april 2014. the management services for the non-stk unit in las vegas were discontinued in 2013 , and such pre-opening expenses are therefore included in discontinued operations . we had 17 units in operation at both december 31 , 2012 and december 31 , 2013 , respectively . transaction costs . transaction costs were $ 4.6 million , or 10.0 % of consolidated revenues , for the year ended december 31 , 2013 , compared to $ 0 for the year ended december 31 , 2012. transaction costs included professional and other expenses specifically relating to the merger that closed on october 16 , 2013. equity in ( income ) loss of investee companies . equity in ( income ) loss of investee companies improved by $ 1.0 million from a loss of $ 77,000 , or 0.1 % of total revenues for the year ended december 31 , 2012 , to income of $ 949,000 or 2.1 % of total revenues for the year ended december 31 , 2013 primarily related to the income from the ownership interest in the bagatelle unit in new york city , which opened in june 2012 and only had six months of operations as of december 31 , 2012 as compared to the twelve months of operations in 2013. derivative expense . derivative expense was $ 10.1 million or 22.0 % of consolidated revenues for the year ended december 31 , 2013 , compared to $ 0 for the year ended december 31 , 2012. derivative expense represents the increase in the total fair value of the derivative liability that is related to the potential exercise of the publicly traded warrants . interest expense , net of interest income . interest expense , net of interest income increased by $ 79,000 , or 11.6 % , from $ 689,000 , or 1.1 % of consolidated revenues for the year ended december 31 , 2012 , to $ 768,000 , or 1.7 % of total revenues for the year ended december 31 , 2013 , due primarily to additional borrowings under our credit facility in 2013. other income . other income decreased by $ 4.1 million from $ 4.8 million of other income , or 8.0 % of total revenues for the year ended december 31 , 2012 , to $ 684,000 of other income , or 1.5 % of total revenues , for the year ended december 31 , 2013 due primarily to the one-time fee of $ 5.0 million paid to us during the year ended december 31 , 2012 by the owner of the perry hotel for the right to terminate our food and beverage services agreement with them . provision for income taxes . income tax expense increased by $ 479,000 to $ 328,000 tax expense during the year ended december 31 , 2013 from a $ 14,000 tax expense during the year ended december 31 , 2012. as of december 31 , 2012 , we were a limited liability company and not subject to federal taxes . as a result of the merger , we are now a corporation that is subject to federal , state and city taxes . loss from

cash flows the following table summarizes the statement of cash flows for the fiscal years ended december 31 , 2013 and december 31 , 2012 : replace_table_token_9_th operating activities for the year ended december 31 , 2013 , cash flows used by operating activities were $ 6.0 million , consisting of net loss of $ 21.9 million , which included loss from discontinued operations of $ 5.4 million and transactions costs of $ 4.6 million , and adjustments for depreciation , amortization , deferred rent and other non-cash charges totaling $ 17.0 million , including a non-cash control premium expense relating to the merger of $ 5.0 million , a non-cash derivative payment expense of $ 10.1 million , a non-cash restricted stock expense of $ 295,000 and non-cash stock-based compensation of $ 56,000. net cash outflow of operating assets and liabilities totaled $ 1.3 million and included decreases in accounts receivable of $ 470,000 , decreases in inventory of $ 388,000 , increases in prepaid expenses of $ 520,000 , increases in other assets of $ 441,000 and a decrease of $ 977,000 in accounts payable and accrued expenses . 44 for the year ended december 31 , 2012 , cash flows provided by operating activities were $ 7.8 million , consisting of net loss of $ 2.8 million and adjustments for depreciation , amortization , deferred rent and other non-cash charges , including an impairment charge of $ 5.1 million , totaling $ 11.6 million . net cash outflow of operating assets and liabilities totaled $ 1.1 million and included increases in accounts receivable of $ 1.1 million , increases in inventory of $ 195,000 , increases in prepaid expenses of $ 201,000 , increases in security deposits of $ 198,000 , increases in other assets of $ 626,000 and an increase of $ 1.3 million in accounts payable and accrued expenses .


 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 flows the following table summarizes the statement of cash flows for the fiscal years ended december 31 , 2013 and december 31 , 2012 : replace_table_token_9_th operating activities for the year ended december 31 , 2013 , cash flows used by operating activities were $ 6.0 million , consisting of net loss of $ 21.9 million , which included loss from discontinued operations of $ 5.4 million and transactions costs of $ 4.6 million , and adjustments for depreciation , amortization , deferred rent and other non-cash charges totaling $ 17.0 million , including a non-cash control premium expense relating to the merger of $ 5.0 million , a non-cash derivative payment expense of $ 10.1 million , a non-cash restricted stock expense of $ 295,000 and non-cash stock-based compensation of $ 56,000. net cash outflow of operating assets and liabilities totaled $ 1.3 million and included decreases in accounts receivable of $ 470,000 , decreases in inventory of $ 388,000 , increases in prepaid expenses of $ 520,000 , increases in other assets of $ 441,000 and a decrease of $ 977,000 in accounts payable and accrued expenses . 44 for the year ended december 31 , 2012 , cash flows provided by operating activities were $ 7.8 million , consisting of net loss of $ 2.8 million and adjustments for depreciation , amortization , deferred rent and other non-cash charges , including an impairment charge of $ 5.1 million , totaling $ 11.6 million . net cash outflow of operating assets and liabilities totaled $ 1.1 million and included increases in accounts receivable of $ 1.1 million , increases in inventory of $ 195,000 , increases in prepaid expenses of $ 201,000 , increases in security deposits of $ 198,000 , increases in other assets of $ 626,000 and an increase of $ 1.3 million in accounts payable and accrued expenses .
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 Suspicious Activity Report : our diversified portfolio of differentiated , high-energy food and beverage hospitality solutions provides landlords and owners a choice of having one or several of our concepts and or services in their venues . these locations are operated under our management agreements under which we earn a management fee based on revenue and an incentive fee based on profitability of the underlying operations . we typically target food and beverage hospitality opportunities where we believe we can generate $ 500,000 to $ 750,000 of annual pre-tax income exclusive of any related stk revenues or profits . we also own or manage a small number of other standalone restaurants and lounges . net losses for the year ended december 31 , 2013 and december 31 , 2012 were $ 21.9 million and $ 2.8 million , respectively , and included a derivative expense of $ 10.1 million related to the potential exercise of our publicly traded warrants , a one-time change of control premium of $ 5.0 million and transactions costs of $ 4.6 million for the years ended december 31 , 2013 , as well as a loss from discontinued operations of $ 5.4 million and $ 10.0 million for the years ended december 31 , 2013 and 2012 , respectively . the loss from discontinued operations reflects our exiting of non-strategic and underperforming units during these periods and includes the closing of the bagatelle unit in las vegas during 2013 as well as the proposed termination of the management agreement with the palms hotel in las vegas for the heraea concept and the proposed termination of the lease with the palms hotel in las vegas for the xishi concept . in addition , we closed the one concept in atlantic city in 2012 and a kiosk in new york city which featured burgers and shakes in 2013. our growth strategies and outlook our growth model is comprised of the following four primary drivers : expansion of stk . we have identified over 50 additional major metropolitan markets globally where we could grow our stk brand over time . we expect to open as many as two to three stks annually in the next three years and to target approximately 25 % annual unit growth thereafter provided that we have enough capital , acceptable locations and quality restaurant managers available to support that pace of growth . we believe that the completion of the merger will enable us to opportunistically invest more of our own capital in projects in order to capture a greater proportion of the economic returns . however , there can be no assurance that we will be able to open new stks at the rate we currently expect or that our pipeline of planned offerings will be fully realized . expansion through new food & beverage hospitality projects . we believe we are well positioned to leverage the strength of our brands and the relationships we have developed with global hospitality providers to drive the continued growth of our food and beverage hospitality projects , which traditionally have provided fee income with minimal capital expenditures . we continue to receive significant inbound inquiries regarding new services in new hospitality opportunities globally and to work with existing hospitality clients to identify and develop additional opportunities in their venues . going forward , we expect to target at least one new f & b hospitality project every 12 to 18 months . however , we can not control the timing and number of acceptable opportunities that will be offered to us for our consideration . expand our non-stk concepts and services . we believe our existing restaurant concepts and food and beverage hospitality services have significant room to grow and that our presence , brand recognition and operating performance from our continuing operations provide us with the ability to expand these concepts in the north american and international markets , with near term focus on europe and in the longer term , asia and the middle east . increase our operating efficiency . in addition to expanding into new cities and hospitality venues , we intend to increase revenue and profits in our existing operations , and we believe that , following the merger , we have more capital and resources available to allocate towards operational initiatives . we expect to grow same store sales by approximately 1 % annually as a result of our renewed focus on this aspect of our growth plan . we also expect operating margin improvements as our restaurants and services mature . however , there can be no assurances that any increases in same store sales or operating margins will be achieved . furthermore , as our footprint continues to increase in scale , we expect to benefit by leveraging system-wide operating efficiencies and best practices . 35 key performance indicators we use the following key performance indicators in evaluating our restaurants and assessing our business : number of restaurant openings . number of restaurant openings reflects the number of restaurants opened during a particular fiscal period . for each restaurant opening , we incur pre-opening costs , which are defined below . typically , new restaurants open with an initial start-up period of higher than normalized sales volumes ( also referred to in the restaurant industry as the “ honeymoon ” period ) , which decrease to a steady level approximately 18 months after opening . however , operating costs during this initial 18 month period are also higher than normal , resulting in restaurant operating margins that are generally lower during the start-up period of operation and increase to a steady level approximately 18 months after opening . some new restaurants may experience a “ honeymoon ” period either shorter or longer than 18 months . average check . average check is calculated by dividing total restaurant sales by total entrees sold for a given time period . story_separator_special_tag general and administrative costs increased $ 8.6 million to $ 10.8 million , or 388.6 % , during the year ended december 31 , 2013 from $ 2.2 million for the year ended december 31 , 2012. general and administrative costs as a percentage of total revenues increased from 3.7 % for the year ended december 31 , 2012 to 23.4 % for the year ended december 31 , 2013. this increase was due to a one-time transaction control premium of $ 5.0 million , transaction sign on bonuses and taxes of $ 750,000 , a restricted stock grant of $ 295,000 and stock based compensation awards of $ 56,000 , as well as additional payroll related to the expansion of our corporate infrastructure to help facilitate our long-term growth in the united states and united kingdom . depreciation and amortization . depreciation and amortization expense decreased $ 5.7 million , or 77.8 % , from $ 7.4 million in the year ended december 31 , 2012 to $ 1.6 million for the year ended december 31 , 2013. this decrease was primarily related to the temporary closure of the stk in miami at the perry hotel due to a major renovation and a non-recurring acceleration of depreciation charge of $ 5.2 million in 2012 . 42 management and royalty fees . management and royalty fees decreased $ 197,000 , or 57.7 % , from $ 341,000 or 0.6 % of total revenues for the year ended december 31 , 2012 to $ 144,000 or 0.3 % of total revenues during the year ended december 31 , 2013 , due to the termination of the management agreement with the group that managed the tenjune unit in february 2013. the tenjune unit was managed by us from february 2013 until its closing in february 2014. pre-opening expenses . restaurant pre-opening costs increased $ 709,000 , or 508.1 % , from $ 140,000 or 0.2 % of total revenues for the year ended december 31 , 2012 to $ 849,000 or 1.8 % of total revenues for the year ended december 31 , 2013. during the year ended december 31 , 2012 , we opened six non-stk units in the united states as well as the food and beverage hospitality services for the hippodrome casino in london . there were also pre-opening expenses for three non-stk units that were opened in 2012 and were subsequently closed , which are therefore included in discontinued operations . during the year ended december 31 , 2013 , we initiated the food and beverage services for the me hotel in london as well as the management services for a non-stk unit in las vegas . we also commenced construction on a new stk in washington , dc which is scheduled to open in april 2014. the management services for the non-stk unit in las vegas were discontinued in 2013 , and such pre-opening expenses are therefore included in discontinued operations . we had 17 units in operation at both december 31 , 2012 and december 31 , 2013 , respectively . transaction costs . transaction costs were $ 4.6 million , or 10.0 % of consolidated revenues , for the year ended december 31 , 2013 , compared to $ 0 for the year ended december 31 , 2012. transaction costs included professional and other expenses specifically relating to the merger that closed on october 16 , 2013. equity in ( income ) loss of investee companies . equity in ( income ) loss of investee companies improved by $ 1.0 million from a loss of $ 77,000 , or 0.1 % of total revenues for the year ended december 31 , 2012 , to income of $ 949,000 or 2.1 % of total revenues for the year ended december 31 , 2013 primarily related to the income from the ownership interest in the bagatelle unit in new york city , which opened in june 2012 and only had six months of operations as of december 31 , 2012 as compared to the twelve months of operations in 2013. derivative expense . derivative expense was $ 10.1 million or 22.0 % of consolidated revenues for the year ended december 31 , 2013 , compared to $ 0 for the year ended december 31 , 2012. derivative expense represents the increase in the total fair value of the derivative liability that is related to the potential exercise of the publicly traded warrants . interest expense , net of interest income . interest expense , net of interest income increased by $ 79,000 , or 11.6 % , from $ 689,000 , or 1.1 % of consolidated revenues for the year ended december 31 , 2012 , to $ 768,000 , or 1.7 % of total revenues for the year ended december 31 , 2013 , due primarily to additional borrowings under our credit facility in 2013. other income . other income decreased by $ 4.1 million from $ 4.8 million of other income , or 8.0 % of total revenues for the year ended december 31 , 2012 , to $ 684,000 of other income , or 1.5 % of total revenues , for the year ended december 31 , 2013 due primarily to the one-time fee of $ 5.0 million paid to us during the year ended december 31 , 2012 by the owner of the perry hotel for the right to terminate our food and beverage services agreement with them . provision for income taxes . income tax expense increased by $ 479,000 to $ 328,000 tax expense during the year ended december 31 , 2013 from a $ 14,000 tax expense during the year ended december 31 , 2012. as of december 31 , 2012 , we were a limited liability company and not subject to federal taxes . as a result of the merger , we are now a corporation that is subject to federal , state and city taxes . loss from

