in assessing the reliability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . the ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . management considers the scheduled reversals of deferred tax liabilities , projected future taxable income , and tax planning strategies in making this assessment . revenue recognition revenue is recognized when risk of ownership and title pass to the buyer , generally upon the shipment of the product . all sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies . any changes in company terms are documented in the most recently published price lists . pricing is fixed and determinable according to the company 's published equipment and parts price lists . title to all equipment and parts sold shall pass to the buyer upon delivery to the carrier and is not subject to a customer acceptance provision . proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier . post shipment obligations are limited to any claim with respect to the condition of the equipment or parts . a provision for warranty expenses , based on sales volume , is included in the financial statements . our returns policy allows for new and saleable parts to be returned , subject to inspection and a restocking charge which is included in net sales . whole goods are not returnable . shipping costs charged to customers are included in net sales . freight costs incurred are included in cost of goods sold . 12 in certain circumstances , upon the customer 's written request , we may recognize revenue when production is complete and the good is ready for shipment . at the buyer 's request , we will bill the buyer upon completing all performance obligations , but before shipment . the buyer dictates that we ship the goods per their direction from our manufacturing facility , as is customary with this type of agreement , in order to minimize shipping costs . the written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer , with a final specified delivery date , and that we will segregate the goods from our inventory , such that they are not available to fill other orders . this agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement . title of the goods will pass to the buyer when the goods are complete and ready for shipment , per the customer agreement . at the transfer of title , all risks of ownership have passed to the buyer , and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped . we have operated using bill and hold agreements with certain customers for many years , with consistent satisfactory results for both buyer and seller . the credit terms on this agreement are consistent with the credit terms on all other sales . all risks of loss are shouldered by the buyer , and there are no exceptions to the buyer 's commitment to accept and pay for these manufactured goods . revenues recognized at the completion of production in 2012 and 2011 were approximately $ 937,000 and $ 532,000 , respectively . our modular buildings segment is in the construction industry , and , as such , accounts for long-term contracts on the percentage-of-completion method . revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion . contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss . estimated contract costs include any and all costs appropriately allocable to the contract . the provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues . costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities . stock-based compensation stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period . we estimate the fair value of each stock-based award on the measurement date using the black-scholes option valuation model which incorporates assumptions as to stock price volatility , the expected life of the options , risk-free interest rate and dividend yield . restricted stock awards are valued at market value at day of grant . results of operations fiscal year ended november 30 , 2012 compared to fiscal year ended november 30 , 2011 our consolidated net sales totaled $ 36,457,000 for the fiscal year ended november 30 , 2012 , which represents a 32.0 % increase from our consolidated net sales of $ 27,620,000 in 2011. our consolidated gross profit increased from 25.4 % in 2011 to 27.5 % in 2012 or from $ 7,007,000 to $ 10,032,000 , respectively . our consolidated expenses increased by 12.4 % , from $ 5,077,000 in 2011 to $ 5,704,000 in 2012. because the majority of our corporate general and administrative expenses are borne by our agricultural products segment , that segment represented $ 4,572,000 of our total consolidated operating expenses , while our pressurized vessels and modular buildings segments represented $ 273,000 and $ 859,000 of the total , respectively . our consolidated operating income for the 2012 fiscal year was $ 4,328,000 , which represents a 124 % increase from our consolidated operating income of $ 1,930,000 for the 2011 fiscal year . story_separator_special_tag our agricultural products and modular buildings segments provided operating income of $ 2,373,000 and $ 2,082,000 , respectively , in 2012. our pressurized vessels segment had an operating loss of $ ( 127,000 ) . consolidated net income for the 2012 fiscal year was $ 2,665,000 , compared to $ 1,249,000 in the 2011 fiscal year , an increase of $ 1,416,000 , or 113.4 % . this increase is primarily a result of the increase in net sales and operating income in the agricultural products and modular buildings segments , as discussed below . our effective tax rates for the years ending november 30 , 2012 and 2011 were 33.2 % and 21.0 % , respectively , an increase of 12.2 % . the 12.2 % increase was due to reduction of r & d tax credits and effect of prior year adjustments recognized in fiscal year 2011 . 13 agricultural products . our agricultural products segment 's sales revenue for the fiscal year ended november 30 , 2012 was $ 24,720,000 , compared to $ 22,614,000 during the same period of 2011 , an increase of $ 2,106,000 , or 9.3 % . the increase in sales was due to the acquisition of universal harvester co. , inc. and the associated product lines . total sales revenue from the new brand , uhc by art's-way , starting at our purchase date of may 10 , 2012 to november 30 , 2012 was $ 3,087,000. offsetting this increase was a $ 986,000 decrease in revenue in our potato harvesting line . gross profit for the fiscal year ended november 30 , 2012 was 28.1 % , compared to 28.7 % for the same period in 2011. this decrease in margin was due to changes in product mix . our agricultural products segment 's operating expenses for the fiscal year ended november 30 , 2012 were $ 4,572,000 , compared to $ 4,052,000 for the same period in 2011 , an increase of $ 520,000 or 12.8 % . this segment 's operating expenses for the fiscal year ended november 30 , 2012 were 18.5 % of sales , compared to 17.9 % of sales for the same period in 2011. the increases in operating expenses are due to an increase in accrued bonuses , as well as increased operating expenses due to the addition of uhc by art's-way . total income from operations for our agricultural products segment during the fiscal year ended november 30 , 2012 was $ 2,373,000 , compared to $ 2,428,000 for the same period in 2011 , a decrease of $ 55,000 or 2.3 % . pressurized vessels . our pressurized vessels segment 's net sales for the fiscal year ended november 30 , 2012 were $ 2,091,000 , compared to $ 1,797,000 for the same period in 2011 , an increase of $ 294,000 , or 16.3 % . this increase is attributable to higher sales volume . we have been working diligently to improve the consistency of our quality of goods and delivery of product . these improvements have helped us to capture additional sales as well as retain repeat customers . fiscal year 2012 gross margin was 7.0 % compared to ( 6.2 % ) as of november 30 , 2011. the production manager hired during the first quarter of 2011 has improved our ability to track cost and revenue on a per-job basis . modular buildings . our modular buildings segment 's net sales for the fiscal year ended november 30 , 2012 were $ 9,645,000 , compared to $ 3,209,000 for the same period in 2011 , an increase of $ 6,436,000 , or 200.6 % . late in 2011 we secured a large job with whiting turner to produce a facility for stanford university for approximately $ 9,000,000. that project significantly increased our sales in 2012. it is unlikely that we will be able to maintain 2012 sales levels going forward . gross profit for the fiscal year ended november 30 , 2012 was $ 2,941,000 compared to $ 638,000 during the same period of 2011 , an increase of $ 2,303,000 , or 361.0 % . the increase was primarily attributable to revenue from an approximately $ 7 million installation fabrication and delivery contract executed in january 2012 related to the job with whiting turner and an approximately $ 1.7 million installation contract executed in april 2012 for the same job . scientific was hired to design , fabricate , and install twenty-four modular units over the course of approximately one year for one of the world 's leading research and teaching institutions . operating expenses for the fiscal year ended november 30 , 2012 were $ 859,000 compared to $ 689,000 for the same period in 2011 , an increase of $ 170,000 , or 24.7 % . this increase is primarily attributable to the increase production activity . as a percentage of sales our operating expenses were 8.9 % in 2012 compared to 21.4 % in 2011. income from operations for the fiscal year ended november 30 , 2012 was $ 2,082,000 compared to net operating loss of $ ( 50,000 ) for the same period in 2011 , an increase of $ 2,132,000 , which is a result of the fabrication and delivery contract and installation contract mentioned above . trends and uncertainties we are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity , sales revenues and operations . similar to other farm equipment manufacturers , we are affected by items unique to the farm industry , including fluctuations in farm income resulting from the change in commodity prices , crop damage caused by weather and insects , government farm programs , interest rate fluctuations , and other unpredictable variables . management believes that our business is dependent on the farming industry for the bulk of our sales revenues . as such , our business tends

liquidity and capital resources our main source of funds during fiscal 2012 was cash from operating activities , which totaled $ 5,004,000 for the fiscal year ending november 30 , 2012. approximately $ 748,000 of cash used by operations resulted from the increase of accounts receivable , and $ 131,000 resulted from the increase of inventories . accounts payable and accrued liabilities increased by $ 2,388,000. art's-way used $ 800,000 of cash to update facilities , equipment , and invest in assets for leases . art's-way also used $ 2,663,000 in cash to pay down the line of credit , notes payable , and to pay dividends to its shareholders . we have a $ 6,000,000 revolving line of credit with west bank , pursuant to which we had borrowed $ 0 and $ 1,389,000 as of november 30 , 2012 and november 30 , 2011 , respectively . in addition , we have four term loans from west bank , which had outstanding principal balances of $ 2,435,000 , $ 1,027,000 , $ 1,168,000 and $ 1,875,000 as of november 30 , 2012. we have also received funds pursuant to three promissory notes from the iowa department of economic development . these notes had outstanding principal balances of $ 42,000 , $ 15,000 , and $ 49,000 as of november 30 , 2012. we have obtained two loans relating to our production facility in west union , iowa . the iowa finance authority loan balance was $ 1,027,000 as of november 30 , 2012.


 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 main source of funds during fiscal 2012 was cash from operating activities , which totaled $ 5,004,000 for the fiscal year ending november 30 , 2012. approximately $ 748,000 of cash used by operations resulted from the increase of accounts receivable , and $ 131,000 resulted from the increase of inventories . accounts payable and accrued liabilities increased by $ 2,388,000. art's-way used $ 800,000 of cash to update facilities , equipment , and invest in assets for leases . art's-way also used $ 2,663,000 in cash to pay down the line of credit , notes payable , and to pay dividends to its shareholders . we have a $ 6,000,000 revolving line of credit with west bank , pursuant to which we had borrowed $ 0 and $ 1,389,000 as of november 30 , 2012 and november 30 , 2011 , respectively . in addition , we have four term loans from west bank , which had outstanding principal balances of $ 2,435,000 , $ 1,027,000 , $ 1,168,000 and $ 1,875,000 as of november 30 , 2012. we have also received funds pursuant to three promissory notes from the iowa department of economic development . these notes had outstanding principal balances of $ 42,000 , $ 15,000 , and $ 49,000 as of november 30 , 2012. we have obtained two loans relating to our production facility in west union , iowa . the iowa finance authority loan balance was $ 1,027,000 as of november 30 , 2012.
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 Suspicious Activity Report : in assessing the reliability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . the ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . management considers the scheduled reversals of deferred tax liabilities , projected future taxable income , and tax planning strategies in making this assessment . revenue recognition revenue is recognized when risk of ownership and title pass to the buyer , generally upon the shipment of the product . all sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies . any changes in company terms are documented in the most recently published price lists . pricing is fixed and determinable according to the company 's published equipment and parts price lists . title to all equipment and parts sold shall pass to the buyer upon delivery to the carrier and is not subject to a customer acceptance provision . proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier . post shipment obligations are limited to any claim with respect to the condition of the equipment or parts . a provision for warranty expenses , based on sales volume , is included in the financial statements . our returns policy allows for new and saleable parts to be returned , subject to inspection and a restocking charge which is included in net sales . whole goods are not returnable . shipping costs charged to customers are included in net sales . freight costs incurred are included in cost of goods sold . 12 in certain circumstances , upon the customer 's written request , we may recognize revenue when production is complete and the good is ready for shipment . at the buyer 's request , we will bill the buyer upon completing all performance obligations , but before shipment . the buyer dictates that we ship the goods per their direction from our manufacturing facility , as is customary with this type of agreement , in order to minimize shipping costs . the written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer , with a final specified delivery date , and that we will segregate the goods from our inventory , such that they are not available to fill other orders . this agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement . title of the goods will pass to the buyer when the goods are complete and ready for shipment , per the customer agreement . at the transfer of title , all risks of ownership have passed to the buyer , and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped . we have operated using bill and hold agreements with certain customers for many years , with consistent satisfactory results for both buyer and seller . the credit terms on this agreement are consistent with the credit terms on all other sales . all risks of loss are shouldered by the buyer , and there are no exceptions to the buyer 's commitment to accept and pay for these manufactured goods . revenues recognized at the completion of production in 2012 and 2011 were approximately $ 937,000 and $ 532,000 , respectively . our modular buildings segment is in the construction industry , and , as such , accounts for long-term contracts on the percentage-of-completion method . revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion . contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss . estimated contract costs include any and all costs appropriately allocable to the contract . the provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues . costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities . stock-based compensation stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period . we estimate the fair value of each stock-based award on the measurement date using the black-scholes option valuation model which incorporates assumptions as to stock price volatility , the expected life of the options , risk-free interest rate and dividend yield . restricted stock awards are valued at market value at day of grant . results of operations fiscal year ended november 30 , 2012 compared to fiscal year ended november 30 , 2011 our consolidated net sales totaled $ 36,457,000 for the fiscal year ended november 30 , 2012 , which represents a 32.0 % increase from our consolidated net sales of $ 27,620,000 in 2011. our consolidated gross profit increased from 25.4 % in 2011 to 27.5 % in 2012 or from $ 7,007,000 to $ 10,032,000 , respectively . our consolidated expenses increased by 12.4 % , from $ 5,077,000 in 2011 to $ 5,704,000 in 2012. because the majority of our corporate general and administrative expenses are borne by our agricultural products segment , that segment represented $ 4,572,000 of our total consolidated operating expenses , while our pressurized vessels and modular buildings segments represented $ 273,000 and $ 859,000 of the total , respectively . our consolidated operating income for the 2012 fiscal year was $ 4,328,000 , which represents a 124 % increase from our consolidated operating income of $ 1,930,000 for the 2011 fiscal year . story_separator_special_tag our agricultural products and modular buildings segments provided operating income of $ 2,373,000 and $ 2,082,000 , respectively , in 2012. our pressurized vessels segment had an operating loss of $ ( 127,000 ) . consolidated net income for the 2012 fiscal year was $ 2,665,000 , compared to $ 1,249,000 in the 2011 fiscal year , an increase of $ 1,416,000 , or 113.4 % . this increase is primarily a result of the increase in net sales and operating income in the agricultural products and modular buildings segments , as discussed below . our effective tax rates for the years ending november 30 , 2012 and 2011 were 33.2 % and 21.0 % , respectively , an increase of 12.2 % . the 12.2 % increase was due to reduction of r & d tax credits and effect of prior year adjustments recognized in fiscal year 2011 . 13 agricultural products . our agricultural products segment 's sales revenue for the fiscal year ended november 30 , 2012 was $ 24,720,000 , compared to $ 22,614,000 during the same period of 2011 , an increase of $ 2,106,000 , or 9.3 % . the increase in sales was due to the acquisition of universal harvester co. , inc. and the associated product lines . total sales revenue from the new brand , uhc by art's-way , starting at our purchase date of may 10 , 2012 to november 30 , 2012 was $ 3,087,000. offsetting this increase was a $ 986,000 decrease in revenue in our potato harvesting line . gross profit for the fiscal year ended november 30 , 2012 was 28.1 % , compared to 28.7 % for the same period in 2011. this decrease in margin was due to changes in product mix . our agricultural products segment 's operating expenses for the fiscal year ended november 30 , 2012 were $ 4,572,000 , compared to $ 4,052,000 for the same period in 2011 , an increase of $ 520,000 or 12.8 % . this segment 's operating expenses for the fiscal year ended november 30 , 2012 were 18.5 % of sales , compared to 17.9 % of sales for the same period in 2011. the increases in operating expenses are due to an increase in accrued bonuses , as well as increased operating expenses due to the addition of uhc by art's-way . total income from operations for our agricultural products segment during the fiscal year ended november 30 , 2012 was $ 2,373,000 , compared to $ 2,428,000 for the same period in 2011 , a decrease of $ 55,000 or 2.3 % . pressurized vessels . our pressurized vessels segment 's net sales for the fiscal year ended november 30 , 2012 were $ 2,091,000 , compared to $ 1,797,000 for the same period in 2011 , an increase of $ 294,000 , or 16.3 % . this increase is attributable to higher sales volume . we have been working diligently to improve the consistency of our quality of goods and delivery of product . these improvements have helped us to capture additional sales as well as retain repeat customers . fiscal year 2012 gross margin was 7.0 % compared to ( 6.2 % ) as of november 30 , 2011. the production manager hired during the first quarter of 2011 has improved our ability to track cost and revenue on a per-job basis . modular buildings . our modular buildings segment 's net sales for the fiscal year ended november 30 , 2012 were $ 9,645,000 , compared to $ 3,209,000 for the same period in 2011 , an increase of $ 6,436,000 , or 200.6 % . late in 2011 we secured a large job with whiting turner to produce a facility for stanford university for approximately $ 9,000,000. that project significantly increased our sales in 2012. it is unlikely that we will be able to maintain 2012 sales levels going forward . gross profit for the fiscal year ended november 30 , 2012 was $ 2,941,000 compared to $ 638,000 during the same period of 2011 , an increase of $ 2,303,000 , or 361.0 % . the increase was primarily attributable to revenue from an approximately $ 7 million installation fabrication and delivery contract executed in january 2012 related to the job with whiting turner and an approximately $ 1.7 million installation contract executed in april 2012 for the same job . scientific was hired to design , fabricate , and install twenty-four modular units over the course of approximately one year for one of the world 's leading research and teaching institutions . operating expenses for the fiscal year ended november 30 , 2012 were $ 859,000 compared to $ 689,000 for the same period in 2011 , an increase of $ 170,000 , or 24.7 % . this increase is primarily attributable to the increase production activity . as a percentage of sales our operating expenses were 8.9 % in 2012 compared to 21.4 % in 2011. income from operations for the fiscal year ended november 30 , 2012 was $ 2,082,000 compared to net operating loss of $ ( 50,000 ) for the same period in 2011 , an increase of $ 2,132,000 , which is a result of the fabrication and delivery contract and installation contract mentioned above . trends and uncertainties we are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity , sales revenues and operations . similar to other farm equipment manufacturers , we are affected by items unique to the farm industry , including fluctuations in farm income resulting from the change in commodity prices , crop damage caused by weather and insects , government farm programs , interest rate fluctuations , and other unpredictable variables . management believes that our business is dependent on the farming industry for the bulk of our sales revenues . as such , our business tends

