overview overall , the company 's financial performance improved in 2012 as compared to 2011 , especially due to the results for the first nine months of 2012. the company had net income in 2012 in the amount of $ 376,691 as compared to a net loss of $ 351,680 for 2011 , or a increase of $ 728,371 . the increase in net income for the year ended december 31 , 2012 was due to several factors including management 's decision to reduce costs through layoffs and salary reductions for all employees early in the year and management 's efforts in finding new revenues to replace those products that were lagging due to the slow economic conditions in the construction industry . by not only reducing employee costs , but also by managing all production and overhead cost , the company was able increase profit on jobs with little or no profit at the time of bidding . the company incurred a net loss of $ 607,995 for the fourth quarter of 2012 due primarily to the continued weak construction economy , legal expenses of $ 160,000 related to the intellectual properties infringement lawsuit discussed in `` business - patents and proprietary information `` above and the total reinstatement and partial repayment of a portion of salaries reduced from february through december 2012. the partial repayment of salaries was made possible by the high cash balances available to the company . the company has subsequently been awarded two new large slenderwall projects that will begin early in the second quarter of 2013. in addition , the company has received a verbal commitment for a large architectural contract , that if awarded ( for which there can be no assurance ) , will begin late in the second quarter of 2013. as a result of the contracts awarded above and with the contract to provide rental barrier for the presidential inauguration in january 2013 , the company believes it will be profitable for at least the first three quarters of 2013 , although no assurance can be given . results of operations year ended december 31 , 2012 compared to the year ended december 31 , 2011 for the year ended december 31 , 2012 , the company had total revenue of $ 24,893,613 compared to total revenue of $ 26,696,727 for the year ended december 31 , 2011 , a decrease of $ 1,803,114 , or 7 % . sales include revenues from product sales , royalty income , barrier rental income and shipping and installation income . product sales are further divided into wall panel sales , which include soundwall , architectural and slenderwall panels , highway barrier , beach prisms , easi-set® and easi-span® buildings , utility and farm products and miscellaneous precast products . the following table summarizes the sales by product type and a comparison for the years ended december 31 , 2012 and 2011 : 11 replace_table_token_1_th wall panel sales – wall panel sales are generally medium to large contracts issued by general contractors for production and delivery of a specific wall panel product for a specific construction project . changes in the mix of wall panel sales depend on what contracts are in production during the period . soundwall sales increased significantly in 2012 due primarily to a large soundwall contract for a road project started in mid 2012 for which production will be completed in the first quarter of 2013. architectural sales decreased significantly in 2012 as continued downward price pressure on architectural projects made it difficult for the company to bid competitively on these projects . management believes it may be at least another year before architectural jobs will return to higher profit margin levels . slenderwall sales decreased in 2012 due to two large slenderwall contracts that were substantially completed in 2011 replaced with only two small jobs in 2012. the company was recently awarded a large slenderwall project in new jersey that will start in the second quarter of 2013 and could significantly increase slenderwall sales in 2013. miscellaneous wall sales are mainly retaining walls which are used to hold back earth on sloped land . these types of projects were down in 2012 due to the continued weakness in the construction industry . barrier sales – barrier sales are dependent on the number of highway projects active during the period and whether customers are more prone to buy barrier than to rent . in 2012 barrier sales increased by 29 % from the previous year . this increase relates to a major highway project that funded in 2012 and began construction in the summer of the year . it is anticipated by the company that barrier sales will decrease slightly or remain flat in 2013. beach prisms – the company made its first sales of beach prisms in 2009 and continued to make minor sales in 2010 and 2011. there were no sales in 2012. the company is still in the process of seeking to acquire the necessary permits from the states of maryland and virginia , which has been more difficult than originally estimated . the company did receive a permit in the state of virginia during 2011 and anticipates that further permits will occur and additional sales will be forthcoming , however , this can not be assured . easi-set® and easi-span® building sales – easi-set® and easi-span® building sales increased by 10 % compared to the same period in 2011. the increased sales of buildings was primarily due to the sale of several easi-span® buildings ( the larger sized buildings ) . story_separator_special_tag the decrease was due to decreased sales salaries and general sales expenses partially offset by increased advertising expense . operating income – the company had operating income for the year ended december 31 , 2012 of $ 687,762 compared to an operating loss of $ 364,836 for the year ended december 31 , 2011 , an increase of $ 1,052,598. the increase in operating income was primarily the result of a decrease in cost of goods sold for the year ended december 31 , 2012 as a percentage of revenue as discussed above . 13 interest expense – interest expense was $ 134,828 for the year ended december 31 , 2012 compared to $ 136,067 for the year ended december 31 , 2011 . the decrease of $ 1,239 , or 1 % , was due primarily to lower balances on notes payable outstanding . income tax expense – the company had an income tax expense of $ 182,000 for the year ended december 31 , 2012 compared to an income tax benefit of $ 136,000 for the year ended december 31 , 2011 . net income – the company had net income of $ 376,691 for the year ended december 31 , 2012 , compared to a net loss of $ 351,680 for the same period in 2011. the basic and diluted earnings per share for 2012 was $ 0.08 , compared to basic and diluted net loss per share of $ 0.07 for the year ended december 31 , 2011 . there were 4,826,182 basic and 4,867,475 diluted weighted average shares outstanding in 2012 and 4,790,476 basic and diluted weighted average shares outstanding in the 2011. story_separator_special_tag giving due consideration to materiality . the company does not believe there is a great likelihood that materially different amounts would be reported related to the accounting policies described below , however , application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and as a result , actual results could differ from these estimates . the company evaluates the adequacy of its allowance for doubtful accounts at the end of each quarter . in performing this evaluation , the company analyzes the payment history of its significant past due accounts , subsequent cash collections on these accounts and comparative accounts receivable aging statistics . based on this information , along with other related factors , the company develops what it considers to be a reasonable estimate of the uncollectible amounts included in accounts receivable . this estimate involves significant judgment by the management of the company . actual uncollectible amounts may differ from the company 's estimate . the company recognizes revenue on the sale of its standard precast concrete products at shipment date , including revenue derived from any projects to be completed under short-term contracts . installation services for precast concrete products , leasing and royalties are recognized as revenue as they are earned on an accrual basis . licensing fees are recognized under the accrual method unless collectability is in doubt , in which event revenue is recognized as cash is received . certain sales of soundwall , slenderwall , and other architectural concrete products are recognized upon completion of units produced under long-term contracts . when necessary , provisions for estimated losses on these contracts are made in the period in which such losses are determined . changes in job performance , conditions and contract settlements that affect profit are recognized in the period in which the changes occur . unbilled trade accounts receivable represents revenue earned on units produced and not yet billed . seasonality the company services the construction industry primarily in areas of the united states where construction activity may be inhibited by adverse weather during the winter . as a result , the company may experience reduced revenues from december through february and realize the substantial part of its revenues during the other months of the year . the company may experience lower profits , or losses , during the winter months , and as such , must have sufficient working capital to fund its operations at a reduced level until the spring construction season . the failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the company . inflation management believes that the company 's operations were not significantly affected by inflation in 2012 and 2011 , particularly in the purchases of certain raw materials such as steel and fuel . the company believes that raw material pricing will see some modest increases in 2013 as the economy continues its slow recovery , although no assurance can be given regarding future pricing . other comments as of march 4 , 2013 the company 's sales backlog of inventoried products and unbilled construction contracts was approximately $ 6.7 million as compared to approximately $ 7.8 million at approximately the same time in 2011. the reduction in the backlog relates to the weak construction industry as well as the shortening of the time period between bidding a project and putting the project into production compared to longer lead times when funding is more readily available in a strong construction industry . the majority of the projects relating to the sales backlog as of march 4 , 2013 are scheduled to be shipped during 2013. the company also maintains a regularly occurring repeat customer business , which should be considered in addition to the orders in the sales backlog described above . these orders typically have a quick turn around and represent purchases of the company 's inventoried standard products , such as highway safety barrier , utility and easi-set building products . historically , this regularly occurring segment of our customer base is equal to approximately $ 5,000,000 to $ 7,000,000 annually . the risk exists that recessionary economic conditions may adversely affect the company more than it has experienced to date . to mitigate

liquidity and capital resources the company financed its capital expenditures and operating requirements in 2012 with cash flows from operations . the company has a note payable to sonabank ( the “ bank ” ) , headquartered in mclean , virginia , with a balance of $ 2,209,415 as of december 31 , 2012 . the note payable was acquired by sonabank from greater atlantic bank on december 4 , 2009 in a transaction through the federal deposit insurance corporation . the note had an original term of twenty-three years beginning on june 25 , 1998 with an interest rate of .5 % above prime , secured by principally by all of the assets of the company . the loan is guaranteed in part by the u.s. department of agriculture rural business-cooperative service 's loan guarantee . under the terms of the note , the bank will permit chattel mortgages on purchased equipment not to exceed $ 250,000 for any one individual loan so long as the company is not in default . also , the company is limited to $ 1,000,000 for annual capital expenditures . at december 31 , 2012 , the company was in compliance with all covenants pursuant to the loan agreement as amended except for the payment of cash dividends on december 31 , 2012 , for which the company received approval prior to payment . at december 31 , 2012 , the company had cash totaling $ 4,367,474 compared to $ 2,130,686 at december 31 , 2011 .


 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 financed its capital expenditures and operating requirements in 2012 with cash flows from operations . the company has a note payable to sonabank ( the “ bank ” ) , headquartered in mclean , virginia , with a balance of $ 2,209,415 as of december 31 , 2012 . the note payable was acquired by sonabank from greater atlantic bank on december 4 , 2009 in a transaction through the federal deposit insurance corporation . the note had an original term of twenty-three years beginning on june 25 , 1998 with an interest rate of .5 % above prime , secured by principally by all of the assets of the company . the loan is guaranteed in part by the u.s. department of agriculture rural business-cooperative service 's loan guarantee . under the terms of the note , the bank will permit chattel mortgages on purchased equipment not to exceed $ 250,000 for any one individual loan so long as the company is not in default . also , the company is limited to $ 1,000,000 for annual capital expenditures . at december 31 , 2012 , the company was in compliance with all covenants pursuant to the loan agreement as amended except for the payment of cash dividends on december 31 , 2012 , for which the company received approval prior to payment . at december 31 , 2012 , the company had cash totaling $ 4,367,474 compared to $ 2,130,686 at december 31 , 2011 .
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 Suspicious Activity Report : overview overall , the company 's financial performance improved in 2012 as compared to 2011 , especially due to the results for the first nine months of 2012. the company had net income in 2012 in the amount of $ 376,691 as compared to a net loss of $ 351,680 for 2011 , or a increase of $ 728,371 . the increase in net income for the year ended december 31 , 2012 was due to several factors including management 's decision to reduce costs through layoffs and salary reductions for all employees early in the year and management 's efforts in finding new revenues to replace those products that were lagging due to the slow economic conditions in the construction industry . by not only reducing employee costs , but also by managing all production and overhead cost , the company was able increase profit on jobs with little or no profit at the time of bidding . the company incurred a net loss of $ 607,995 for the fourth quarter of 2012 due primarily to the continued weak construction economy , legal expenses of $ 160,000 related to the intellectual properties infringement lawsuit discussed in `` business - patents and proprietary information `` above and the total reinstatement and partial repayment of a portion of salaries reduced from february through december 2012. the partial repayment of salaries was made possible by the high cash balances available to the company . the company has subsequently been awarded two new large slenderwall projects that will begin early in the second quarter of 2013. in addition , the company has received a verbal commitment for a large architectural contract , that if awarded ( for which there can be no assurance ) , will begin late in the second quarter of 2013. as a result of the contracts awarded above and with the contract to provide rental barrier for the presidential inauguration in january 2013 , the company believes it will be profitable for at least the first three quarters of 2013 , although no assurance can be given . results of operations year ended december 31 , 2012 compared to the year ended december 31 , 2011 for the year ended december 31 , 2012 , the company had total revenue of $ 24,893,613 compared to total revenue of $ 26,696,727 for the year ended december 31 , 2011 , a decrease of $ 1,803,114 , or 7 % . sales include revenues from product sales , royalty income , barrier rental income and shipping and installation income . product sales are further divided into wall panel sales , which include soundwall , architectural and slenderwall panels , highway barrier , beach prisms , easi-set® and easi-span® buildings , utility and farm products and miscellaneous precast products . the following table summarizes the sales by product type and a comparison for the years ended december 31 , 2012 and 2011 : 11 replace_table_token_1_th wall panel sales – wall panel sales are generally medium to large contracts issued by general contractors for production and delivery of a specific wall panel product for a specific construction project . changes in the mix of wall panel sales depend on what contracts are in production during the period . soundwall sales increased significantly in 2012 due primarily to a large soundwall contract for a road project started in mid 2012 for which production will be completed in the first quarter of 2013. architectural sales decreased significantly in 2012 as continued downward price pressure on architectural projects made it difficult for the company to bid competitively on these projects . management believes it may be at least another year before architectural jobs will return to higher profit margin levels . slenderwall sales decreased in 2012 due to two large slenderwall contracts that were substantially completed in 2011 replaced with only two small jobs in 2012. the company was recently awarded a large slenderwall project in new jersey that will start in the second quarter of 2013 and could significantly increase slenderwall sales in 2013. miscellaneous wall sales are mainly retaining walls which are used to hold back earth on sloped land . these types of projects were down in 2012 due to the continued weakness in the construction industry . barrier sales – barrier sales are dependent on the number of highway projects active during the period and whether customers are more prone to buy barrier than to rent . in 2012 barrier sales increased by 29 % from the previous year . this increase relates to a major highway project that funded in 2012 and began construction in the summer of the year . it is anticipated by the company that barrier sales will decrease slightly or remain flat in 2013. beach prisms – the company made its first sales of beach prisms in 2009 and continued to make minor sales in 2010 and 2011. there were no sales in 2012. the company is still in the process of seeking to acquire the necessary permits from the states of maryland and virginia , which has been more difficult than originally estimated . the company did receive a permit in the state of virginia during 2011 and anticipates that further permits will occur and additional sales will be forthcoming , however , this can not be assured . easi-set® and easi-span® building sales – easi-set® and easi-span® building sales increased by 10 % compared to the same period in 2011. the increased sales of buildings was primarily due to the sale of several easi-span® buildings ( the larger sized buildings ) . story_separator_special_tag the decrease was due to decreased sales salaries and general sales expenses partially offset by increased advertising expense . operating income – the company had operating income for the year ended december 31 , 2012 of $ 687,762 compared to an operating loss of $ 364,836 for the year ended december 31 , 2011 , an increase of $ 1,052,598. the increase in operating income was primarily the result of a decrease in cost of goods sold for the year ended december 31 , 2012 as a percentage of revenue as discussed above . 13 interest expense – interest expense was $ 134,828 for the year ended december 31 , 2012 compared to $ 136,067 for the year ended december 31 , 2011 . the decrease of $ 1,239 , or 1 % , was due primarily to lower balances on notes payable outstanding . income tax expense – the company had an income tax expense of $ 182,000 for the year ended december 31 , 2012 compared to an income tax benefit of $ 136,000 for the year ended december 31 , 2011 . net income – the company had net income of $ 376,691 for the year ended december 31 , 2012 , compared to a net loss of $ 351,680 for the same period in 2011. the basic and diluted earnings per share for 2012 was $ 0.08 , compared to basic and diluted net loss per share of $ 0.07 for the year ended december 31 , 2011 . there were 4,826,182 basic and 4,867,475 diluted weighted average shares outstanding in 2012 and 4,790,476 basic and diluted weighted average shares outstanding in the 2011. story_separator_special_tag giving due consideration to materiality . the company does not believe there is a great likelihood that materially different amounts would be reported related to the accounting policies described below , however , application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and as a result , actual results could differ from these estimates . the company evaluates the adequacy of its allowance for doubtful accounts at the end of each quarter . in performing this evaluation , the company analyzes the payment history of its significant past due accounts , subsequent cash collections on these accounts and comparative accounts receivable aging statistics . based on this information , along with other related factors , the company develops what it considers to be a reasonable estimate of the uncollectible amounts included in accounts receivable . this estimate involves significant judgment by the management of the company . actual uncollectible amounts may differ from the company 's estimate . the company recognizes revenue on the sale of its standard precast concrete products at shipment date , including revenue derived from any projects to be completed under short-term contracts . installation services for precast concrete products , leasing and royalties are recognized as revenue as they are earned on an accrual basis . licensing fees are recognized under the accrual method unless collectability is in doubt , in which event revenue is recognized as cash is received . certain sales of soundwall , slenderwall , and other architectural concrete products are recognized upon completion of units produced under long-term contracts . when necessary , provisions for estimated losses on these contracts are made in the period in which such losses are determined . changes in job performance , conditions and contract settlements that affect profit are recognized in the period in which the changes occur . unbilled trade accounts receivable represents revenue earned on units produced and not yet billed . seasonality the company services the construction industry primarily in areas of the united states where construction activity may be inhibited by adverse weather during the winter . as a result , the company may experience reduced revenues from december through february and realize the substantial part of its revenues during the other months of the year . the company may experience lower profits , or losses , during the winter months , and as such , must have sufficient working capital to fund its operations at a reduced level until the spring construction season . the failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the company . inflation management believes that the company 's operations were not significantly affected by inflation in 2012 and 2011 , particularly in the purchases of certain raw materials such as steel and fuel . the company believes that raw material pricing will see some modest increases in 2013 as the economy continues its slow recovery , although no assurance can be given regarding future pricing . other comments as of march 4 , 2013 the company 's sales backlog of inventoried products and unbilled construction contracts was approximately $ 6.7 million as compared to approximately $ 7.8 million at approximately the same time in 2011. the reduction in the backlog relates to the weak construction industry as well as the shortening of the time period between bidding a project and putting the project into production compared to longer lead times when funding is more readily available in a strong construction industry . the majority of the projects relating to the sales backlog as of march 4 , 2013 are scheduled to be shipped during 2013. the company also maintains a regularly occurring repeat customer business , which should be considered in addition to the orders in the sales backlog described above . these orders typically have a quick turn around and represent purchases of the company 's inventoried standard products , such as highway safety barrier , utility and easi-set building products . historically , this regularly occurring segment of our customer base is equal to approximately $ 5,000,000 to $ 7,000,000 annually . the risk exists that recessionary economic conditions may adversely affect the company more than it has experienced to date . to mitigate

