for a discussion of the important risks to our business and future operating performance , see the discussion under the caption “ item 1a . risk factors ” and under the caption “ factors that may influence future results of operations ” below . in light of these risks , uncertainties and assumptions , the forward-looking events discussed in this report might not occur . business overview we are engaged in the design , manufacture and sale of broadband high speed wireless data communication products such as third generation ( “ 3g ” ) and fourth generation ( “ 4g ” ) wireless modules and modems . we focus primarily on wireless broadband universal serial bus ( “ usb ” ) modems , which provide a flexible way for consumers to connect to wireless broadband networks from laptop or desktop computers . our broadband wireless data communication products are positioned at the convergence of wireless communications , mobile computing and the internet , each of which we believe represents a growing market . we market and sell our products through two channels : directly to wireless operators , and indirectly through strategic partners and distributors . our global customer base extends primarily from the united states to south american and caribbean countries . our usb modems are certified by sprint , c-spire wireless and other wireless operators located in the united states and also by wireless operators located in caribbean and south american countries . factors that may influence future results of operations we believe that our revenue growth will be influenced largely by ( 1 ) the successful maintenance of our existing customers , ( 2 ) the rate of increase in demand for wireless data products , ( 3 ) customer acceptance for our new products , ( 4 ) new customer relationships and contracts , and ( 4 ) our ability to meet customers ' demands . we have entered into and expect to continue to enter into new customer relationships and contracts for the supply of our products , and this may require significant demands on our resources , resulting in increased operating , selling , and marketing expenses associated with such new customers . summary of significant accounting policies principles of consolidation the consolidated financial statements include the accounts of the company , a wholly-owned subsidiary , and a subsidiary with a majority voting interest of 51.8 % ( 48.2 % is owned by non-controlling interests ) and 51.5 % ( 48.5 % is owned by non-controlling interests ) as of june 30 , 2012 and june 30 , 2011 , respectively , and 50.6 % ( 49.4 % was owned by non-controlling interests ) prior to january , 2011. in the preparation of consolidated financial statements of the company , intercompany transactions and balances are eliminated and net earnings are reduced by the portion of the net earnings of subsidiaries applicable to non-controlling interests . as consolidated financial statements are based on the assumption that they represent the financial position and operating results of a single economic entity , the retained earnings or deficit of a subsidiary at the date of acquisition , october 1 , 2009 , by the parent are excluded from consolidated retained earnings . when a subsidiary is consolidated , the consolidated financial statements include the subsidiary 's revenues , expenses , gains , and losses only from the date the subsidiary is initially consolidated , and the noncontrolling interest is reported in the consolidated statement of financial position within equity , separately from the parent 's equity . there are no shares of the company held by the subsidiaries as of june 30 , 2012 or june 30 , 2011 . 11 segment reporting accounting standards codification ( “ asc ” ) topic 280 , “ segment reporting , ” requires public companies to report financial and descriptive information about their reportable operating segments . we identify our operating segments based on how management internally evaluates separate financial information , business activities and management responsibility . we have one reportable segment , consisting of the sale of wireless access products . we generate revenues from three geographic areas , consisting of the united states , the caribbean and south america and asia . the following enterprise-wide disclosure is prepared on a basis consistent with the preparation of the consolidated financial statements . the following table contains certain financial information by geographic area : replace_table_token_3_th replace_table_token_4_th estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could materially differ from those estimates . reclassifications certain reclassifications have been made to prior period amounts to conform to the current period presentation . this reclassification relates to amortization expense associated with capitalized product development previously reported as selling , general and administrative expense that has been reclassified to cost of goods sold for all periods presented . the amortization expense included in cost of goods sold for the years ended june 30 , 2012 and 2011 is $ 716,180 and $ 714,082 , respectively . this reclassification does not affect previously reported net sales , net income ( loss ) , earnings per share , or any portion of our consolidated balance sheets or consolidated statements of cash flow for any period presented . story_separator_special_tag year ended june 30 , 2011 compared to year ended june 30 , 2010 net sales - net sales decreased by $ 55,383,623 , or 54.4 % , to $ 46,514,496 for the year ended june 30 , 2011 from $ 101,898,119 for the corresponding period of 2010. for the year ended june 30 , 2011 , net sales by geographic regions , consisting of south america and the caribbean , the united states , and asia , were $ 11,343,521 ( 24.4 % of net sales ) , $ 34,799,764 ( 74.8 % of net sales ) and $ 371,211 ( 0.8 % of net sales ) , respectively . the overall decrease in net sales was due to several factors including increased competition in the united states in the dual-mode ( 3g and 4g ) usb modem market and the fact that , during the 2010 fiscal year , our largest customer was in the process of rolling out a significant portion of its 4g ( wimax ) network , which had a favorable effect on our net sales during this period . net sales in the south american and caribbean regions increased by $ 8,485,296 , or 296.9 % , to $ 11,343,521 for the year ended june 30 , 2011 from $ 2,858,225 for the corresponding period of 2010. the increase was due to the addition of a new customer as well as the general nature of sales in these regions , which often fluctuate significantly from year to year due to timing of orders placed by a relatively small number of customers . net sales in the united states decreased by $ 63,605,204 , or 64.6 % , to $ 34,799,764 for the year ended june 30 , 2011 , from $ 98,404,968 for the corresponding period of 2010. the decrease in net sales was due to several factors , including increased competition in the dual-mode ( 3g and 4g ) usb modem market , which negatively affected volume and price . during the year ended june 30 , 2010 , we benefited from being the only supplier of dual-mode ( cdma rev a/wimax ) usb modems in north america , which continued until approximately june , 2011 at which time a competitor entered the market . in addition , during the 2010 fiscal year , our largest customer was in the process of rolling out a significant portion of its 4g ( wimax ) network , which had a favorable effect on our net sales during this period . net sales in asia decreased by $ 263,715 , or 41.5 % , to $ 371,211 for the year ended june 30 , 2011 from $ 634,926 for the corresponding period of 2010. the decrease in net sales was primarily due to reduced revenue generated from engineering services for fti , which typically vary from year to year . gross profit – gross profit increased by $ 484,213 , or 3.5 % , to $ 14,344,249 for the year ended june 30 , 2011 from $ 13,860,036 for the corresponding period of 2010. the increase was primarily due to a higher proportion of products supplied by our subsidiary fti ( vs. third party suppliers ) which , despite the decrease in net sales , resulted in an increase in gross profit . the gross profit in terms of net sales percentage was 30.8 % for the year ended june 30 , 2011 , compared to 13.6 % for the corresponding period of 2010. the increase in gross profit in terms of net sales for the year ended june 30 , 2011 was due to several factors including a higher proportion of products supplied by our subsidiary fti ( vs. third party suppliers ) as well as the overall product and customer mix , which vary from year to year . operating expenses - operating expenses increased by $ 2,497,230 , or 40.3 % , to $ 8,691,174 for the year ended june 30 , 2011 from $ 6,193,944 for the corresponding period of 2010. the increase was primarily due to the consolidation of the fti expenses ( which began in the second quarter of fiscal 2010 ) , as well as increases in expense related to the amortization of intangible assets , payroll expense ( due to headcount growth ) , commissions paid to third parties , research and development expense ( due to the amount of costs being expensed vs. capitalized ) , shipping and handling expense ( due to a higher proportion of products supplied by fti vs. third party suppliers who generally pay most or all of the shipping costs ) and share-based compensation expense ( due to additional options granted toward the end of fiscal 2010 ) . other income ( loss ) , net - other income ( loss ) , net increased by $ 2,129,121 to $ 2,044,097 for the year ended june 30 , 2011 from ( $ 85,024 ) for the corresponding period of 2010. the increase was primarily due to the payment from c-motech in the amount of $ 1,873,065 , of which $ 1,581,457 was recorded as other income . the portion was recorded as other income represented amounts owed to the company for certain marketing funds for products previously purchased by the company from c-motech . the remainder of the increase was primarily due to the gain on the sale of property and equipment by fti in the amount of $ 212,303 . 16 story_separator_special_tag text-align : justify ; text-indent : 0.5in `` > our subsidiary , fti , leases approximately 10,000 square feet of office space in seoul , korea , at a monthly rent of approximately $ 7,840 , and the lease expires on september 1 , 2013. in addition to monthly rent , the lease provides for periodic cost of living increases in the base rent and payment of common area costs . the facility is covered by an appropriate level

liquidity and capital resources our principal liquidity requirements are for working capital and capital expenditures . we fund our liquidity requirements with cash on hand and cash flow from operations . we continue to invest in product development and have incurred losses , but we believe we will be able to fund our future cash requirements for operations from our cash available , operating cash flows , bank lines of credit and issuance of equity securities for the next twelve months . operating activities – net cash used in operating activities for the years ended june 30 , 2012 and 2011 was $ 269,956 and $ 2,822,939 , respectively . the $ 269,956 in net cash used in operating activities for the year ended june 30 , 2012 was primarily due to the increases in accounts receivable and inventory of $ 6,456,811 and $ 812,241 , respectively . these amounts were partially offset by the increase in accounts payable of $ 7 , 294,570. the increase in inventory for the year ended june 30 , 2012 , was due mainly to products in transit to customers . the $ 2,822,939 in net cash used in operating activities for the year ended june 30 , 2011 was primarily due to the increases in accounts receivable and inventory of $ 3,797,266 and $ 737,006 respectively , as well as decreases in accounts payable , income taxes payable , accrued liabilities and advance payment from customers of $ 3,636,104 , $ 808,176 , $ 412,750 and $ 293,493 respectively , which were partially offset by the favorable effect of net income of $ 4,545,529 as well as the decrease in advance payments to a vendor of $ 416,658. investing activities – net cash used in investing activities for the year ended june 30 , 2012 was $ 2,284,849 , and net cash provided by investing activities for the year ended june 30 , 2011 was $ 164,879. the $ 2,284,849 in net cash used in investing activities for the year ended june 30 , 2012 was primarily due to the capitalization of product development costs and purchases of intangible assets of $ 1,412,910 and $ 719,727 , respectively


 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 our principal liquidity requirements are for working capital and capital expenditures . we fund our liquidity requirements with cash on hand and cash flow from operations . we continue to invest in product development and have incurred losses , but we believe we will be able to fund our future cash requirements for operations from our cash available , operating cash flows , bank lines of credit and issuance of equity securities for the next twelve months . operating activities – net cash used in operating activities for the years ended june 30 , 2012 and 2011 was $ 269,956 and $ 2,822,939 , respectively . the $ 269,956 in net cash used in operating activities for the year ended june 30 , 2012 was primarily due to the increases in accounts receivable and inventory of $ 6,456,811 and $ 812,241 , respectively . these amounts were partially offset by the increase in accounts payable of $ 7 , 294,570. the increase in inventory for the year ended june 30 , 2012 , was due mainly to products in transit to customers . the $ 2,822,939 in net cash used in operating activities for the year ended june 30 , 2011 was primarily due to the increases in accounts receivable and inventory of $ 3,797,266 and $ 737,006 respectively , as well as decreases in accounts payable , income taxes payable , accrued liabilities and advance payment from customers of $ 3,636,104 , $ 808,176 , $ 412,750 and $ 293,493 respectively , which were partially offset by the favorable effect of net income of $ 4,545,529 as well as the decrease in advance payments to a vendor of $ 416,658. investing activities – net cash used in investing activities for the year ended june 30 , 2012 was $ 2,284,849 , and net cash provided by investing activities for the year ended june 30 , 2011 was $ 164,879. the $ 2,284,849 in net cash used in investing activities for the year ended june 30 , 2012 was primarily due to the capitalization of product development costs and purchases of intangible assets of $ 1,412,910 and $ 719,727 , respectively
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 Suspicious Activity Report : for a discussion of the important risks to our business and future operating performance , see the discussion under the caption “ item 1a . risk factors ” and under the caption “ factors that may influence future results of operations ” below . in light of these risks , uncertainties and assumptions , the forward-looking events discussed in this report might not occur . business overview we are engaged in the design , manufacture and sale of broadband high speed wireless data communication products such as third generation ( “ 3g ” ) and fourth generation ( “ 4g ” ) wireless modules and modems . we focus primarily on wireless broadband universal serial bus ( “ usb ” ) modems , which provide a flexible way for consumers to connect to wireless broadband networks from laptop or desktop computers . our broadband wireless data communication products are positioned at the convergence of wireless communications , mobile computing and the internet , each of which we believe represents a growing market . we market and sell our products through two channels : directly to wireless operators , and indirectly through strategic partners and distributors . our global customer base extends primarily from the united states to south american and caribbean countries . our usb modems are certified by sprint , c-spire wireless and other wireless operators located in the united states and also by wireless operators located in caribbean and south american countries . factors that may influence future results of operations we believe that our revenue growth will be influenced largely by ( 1 ) the successful maintenance of our existing customers , ( 2 ) the rate of increase in demand for wireless data products , ( 3 ) customer acceptance for our new products , ( 4 ) new customer relationships and contracts , and ( 4 ) our ability to meet customers ' demands . we have entered into and expect to continue to enter into new customer relationships and contracts for the supply of our products , and this may require significant demands on our resources , resulting in increased operating , selling , and marketing expenses associated with such new customers . summary of significant accounting policies principles of consolidation the consolidated financial statements include the accounts of the company , a wholly-owned subsidiary , and a subsidiary with a majority voting interest of 51.8 % ( 48.2 % is owned by non-controlling interests ) and 51.5 % ( 48.5 % is owned by non-controlling interests ) as of june 30 , 2012 and june 30 , 2011 , respectively , and 50.6 % ( 49.4 % was owned by non-controlling interests ) prior to january , 2011. in the preparation of consolidated financial statements of the company , intercompany transactions and balances are eliminated and net earnings are reduced by the portion of the net earnings of subsidiaries applicable to non-controlling interests . as consolidated financial statements are based on the assumption that they represent the financial position and operating results of a single economic entity , the retained earnings or deficit of a subsidiary at the date of acquisition , october 1 , 2009 , by the parent are excluded from consolidated retained earnings . when a subsidiary is consolidated , the consolidated financial statements include the subsidiary 's revenues , expenses , gains , and losses only from the date the subsidiary is initially consolidated , and the noncontrolling interest is reported in the consolidated statement of financial position within equity , separately from the parent 's equity . there are no shares of the company held by the subsidiaries as of june 30 , 2012 or june 30 , 2011 . 11 segment reporting accounting standards codification ( “ asc ” ) topic 280 , “ segment reporting , ” requires public companies to report financial and descriptive information about their reportable operating segments . we identify our operating segments based on how management internally evaluates separate financial information , business activities and management responsibility . we have one reportable segment , consisting of the sale of wireless access products . we generate revenues from three geographic areas , consisting of the united states , the caribbean and south america and asia . the following enterprise-wide disclosure is prepared on a basis consistent with the preparation of the consolidated financial statements . the following table contains certain financial information by geographic area : replace_table_token_3_th replace_table_token_4_th estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could materially differ from those estimates . reclassifications certain reclassifications have been made to prior period amounts to conform to the current period presentation . this reclassification relates to amortization expense associated with capitalized product development previously reported as selling , general and administrative expense that has been reclassified to cost of goods sold for all periods presented . the amortization expense included in cost of goods sold for the years ended june 30 , 2012 and 2011 is $ 716,180 and $ 714,082 , respectively . this reclassification does not affect previously reported net sales , net income ( loss ) , earnings per share , or any portion of our consolidated balance sheets or consolidated statements of cash flow for any period presented . story_separator_special_tag year ended june 30 , 2011 compared to year ended june 30 , 2010 net sales - net sales decreased by $ 55,383,623 , or 54.4 % , to $ 46,514,496 for the year ended june 30 , 2011 from $ 101,898,119 for the corresponding period of 2010. for the year ended june 30 , 2011 , net sales by geographic regions , consisting of south america and the caribbean , the united states , and asia , were $ 11,343,521 ( 24.4 % of net sales ) , $ 34,799,764 ( 74.8 % of net sales ) and $ 371,211 ( 0.8 % of net sales ) , respectively . the overall decrease in net sales was due to several factors including increased competition in the united states in the dual-mode ( 3g and 4g ) usb modem market and the fact that , during the 2010 fiscal year , our largest customer was in the process of rolling out a significant portion of its 4g ( wimax ) network , which had a favorable effect on our net sales during this period . net sales in the south american and caribbean regions increased by $ 8,485,296 , or 296.9 % , to $ 11,343,521 for the year ended june 30 , 2011 from $ 2,858,225 for the corresponding period of 2010. the increase was due to the addition of a new customer as well as the general nature of sales in these regions , which often fluctuate significantly from year to year due to timing of orders placed by a relatively small number of customers . net sales in the united states decreased by $ 63,605,204 , or 64.6 % , to $ 34,799,764 for the year ended june 30 , 2011 , from $ 98,404,968 for the corresponding period of 2010. the decrease in net sales was due to several factors , including increased competition in the dual-mode ( 3g and 4g ) usb modem market , which negatively affected volume and price . during the year ended june 30 , 2010 , we benefited from being the only supplier of dual-mode ( cdma rev a/wimax ) usb modems in north america , which continued until approximately june , 2011 at which time a competitor entered the market . in addition , during the 2010 fiscal year , our largest customer was in the process of rolling out a significant portion of its 4g ( wimax ) network , which had a favorable effect on our net sales during this period . net sales in asia decreased by $ 263,715 , or 41.5 % , to $ 371,211 for the year ended june 30 , 2011 from $ 634,926 for the corresponding period of 2010. the decrease in net sales was primarily due to reduced revenue generated from engineering services for fti , which typically vary from year to year . gross profit – gross profit increased by $ 484,213 , or 3.5 % , to $ 14,344,249 for the year ended june 30 , 2011 from $ 13,860,036 for the corresponding period of 2010. the increase was primarily due to a higher proportion of products supplied by our subsidiary fti ( vs. third party suppliers ) which , despite the decrease in net sales , resulted in an increase in gross profit . the gross profit in terms of net sales percentage was 30.8 % for the year ended june 30 , 2011 , compared to 13.6 % for the corresponding period of 2010. the increase in gross profit in terms of net sales for the year ended june 30 , 2011 was due to several factors including a higher proportion of products supplied by our subsidiary fti ( vs. third party suppliers ) as well as the overall product and customer mix , which vary from year to year . operating expenses - operating expenses increased by $ 2,497,230 , or 40.3 % , to $ 8,691,174 for the year ended june 30 , 2011 from $ 6,193,944 for the corresponding period of 2010. the increase was primarily due to the consolidation of the fti expenses ( which began in the second quarter of fiscal 2010 ) , as well as increases in expense related to the amortization of intangible assets , payroll expense ( due to headcount growth ) , commissions paid to third parties , research and development expense ( due to the amount of costs being expensed vs. capitalized ) , shipping and handling expense ( due to a higher proportion of products supplied by fti vs. third party suppliers who generally pay most or all of the shipping costs ) and share-based compensation expense ( due to additional options granted toward the end of fiscal 2010 ) . other income ( loss ) , net - other income ( loss ) , net increased by $ 2,129,121 to $ 2,044,097 for the year ended june 30 , 2011 from ( $ 85,024 ) for the corresponding period of 2010. the increase was primarily due to the payment from c-motech in the amount of $ 1,873,065 , of which $ 1,581,457 was recorded as other income . the portion was recorded as other income represented amounts owed to the company for certain marketing funds for products previously purchased by the company from c-motech . the remainder of the increase was primarily due to the gain on the sale of property and equipment by fti in the amount of $ 212,303 . 16 story_separator_special_tag text-align : justify ; text-indent : 0.5in `` > our subsidiary , fti , leases approximately 10,000 square feet of office space in seoul , korea , at a monthly rent of approximately $ 7,840 , and the lease expires on september 1 , 2013. in addition to monthly rent , the lease provides for periodic cost of living increases in the base rent and payment of common area costs . the facility is covered by an appropriate level

