these transactions were completed , and 63,773,603 shares of common stock and 18,369,262 llc interests ( along with an equivalent number of shares of class b common stock ) were issued , on february 4 , 2011 , and the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . in contemplation of the rights offering , on september 23 , 2010 we entered into a letter agreement with cargill pursuant to which we issued 6,597,790 shares of common stock to cargill on february 15 , 2011 , in exchange for the extinguishment of certain indebtedness . see “ — liquidity and capital resources — rights offering and llc concurrent private placement ” . in june 2011 the company terminated its long-term distillers grains marketing agreements with cargill . the company has entered into separate marketing agreements with independent third party marketers for its dry and wet distillers grains . these agreements are for a term of one year , with options to renew for subsequent years , and contain other customary commercial terms . during 2011 , the company decided to install corn oil extraction systems at each of its ethanol plants so that it could begin producing corn oil as an additional co-product . these systems were installed using certain patented technology we have licensed from greenshift corporation for which we pay a royalty . on october 28 , 2011 , the company 's operating subsidiaries received funding under an operating lease each operating subsidiary entered into with farnam street financial , inc. these operating leases provided the funding to pay for most of the costs of installing the corn oil extraction systems at each operating subsidiary . the installation in wood river was completed in december 2011 and the installation in fairmont was completed in january 2012. both operating subsidiaries began generating revenues from corn oil sales early in the first quarter of 2012 . 33 liquidity considerations our operations and cash flows are subject to wide and unpredictable fluctuations primarily due to changes in commodity prices , specifically , the price of our main commodity input , corn , relative to the price of our main commodity product , ethanol , which is known in the industry as the “ crush spread ” . the prices of these commodities are volatile and beyond our control . as a result of the volatility of the prices for these and other items , our results fluctuate substantially and in ways that are largely beyond our control . for example , as shown in the accompanying consolidated financial statements , the company was profitable during the last half of 2011 , with net income of $ 7.0 million , as commodity margins improved significantly from earlier in the year . however , primarily due to narrow commodity margins in the first half of the year , the company incurred a net loss of $ 10.4 million for the year ended december 31 , 2011. narrow commodity margins present a significant risk to our cash flows and liquidity . we have had , and continue to have , limited liquidity , with $ 15.1 million of cash and cash equivalents as of december 31 , 2011. in addition , we have relied upon extensions of payment terms by cargill as an additional source of liquidity and working capital . see `` — liquidity and capital resources `` . commodity margins have narrowed since the end of 2011and , should current commodity margins continue for an extended period of time , we may not generate sufficient cash flow from operations to both service our debt and operate our plants . we are required to make , under the terms of our senior debt facility , quarterly principal payments in a minimum amount of $ 3,150,000 , plus accrued interest . we can not predict when or if crush spreads will fluctuate again or if the current commodity margins will improve or worsen . if crush spreads were to remain at current levels for an extended period of time , we may expend all of our sources of liquidity , in which event we would not be able to pay principal and interest on our debt . any inability to pay principal and interest on our debt would lead to an event of default under our senior debt facility , which , in the absence of forbearance , debt service abeyance or other accommodations from our lenders , could require us to seek relief through a filing under the u.s. bankruptcy code . we expect fluctuations in the crush spread to continue . since we commenced operations , we have from time to time entered into derivative financial instruments such as futures contracts , swaps and options contracts with the objective of limiting our exposure to changes in commodities prices . in the past , we have only been able to conduct such hedging activities on a limited basis due to our lack of financial resources and , while we are currently engaged in some hedging activities , we may not have the financial resources to increase or conduct hedging activities in the future . revenues our primary source of revenue is the sale of ethanol . the selling prices we realize for our ethanol are largely determined by the market supply and demand for ethanol , which , in turn , is influenced by industry and other factors , including government policy and regulations , over which we have little control . ethanol prices are extremely volatile . ethanol revenues are recorded net of transportation and storage charges , and net of marketing commissions we pay to cargill . we also receive revenue from the sale of distillers grain , which is a residual co-product of the processed corn used in the production of ethanol and is sold as animal feed . story_separator_special_tag on february 2 , 2011 , the company 's stockholders approved an increase in the number of authorized shares of common stock of the company , which resulted in the automatic conversion of shares of the preferred stock into shares of the company 's common stock such that subscribers in the rights offering were issued one share of common stock in lieu of each depositary share subscribed for . these transactions were completed , and 63,773,603 shares of common stock and 18,369,262 llc interests ( along with an equivalent number of shares of class b common stock ) were issued , on february 4 , 2011 , and the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . the proceeds of the transaction were used to ( i ) repay in full the bridge loan , ( ii ) repay in full the company 's obligations under the subordinated debt , ( iii ) repay a portion of the cargill debt , and ( iv ) pay certain fees and expenses incurred in connection with the rights offering and the llc 's concurrent private placement . the bridge loan lenders agreed to ( i ) participate in the rights offering for their full pro rata share and participate in the llc 's concurrent private placement for their full basic purchase privileges , which we refer to as their “ basic commitment ” and ( ii ) purchase all of the available depositary shares not otherwise sold in the rights offering and or all of the available preferred membership interests in the llc not sold in the concurrent private placement , which we refer to as their “ backstop commitment ” . the bridge loan lenders purchased $ 0.9 million of depositary shares not otherwise sold in the rights offering pursuant to their backstop commitment . in consideration of their backstop commitment , the company paid the bridge loan lenders $ 0.9 million . in contemplation of the rights offering , on september 23 , 2010 , we entered into a letter agreement with cargill pursuant to which we agreed to ( i ) use a portion of the proceeds from the rights offering to repay a portion of the cargill debt , upon which cargill would forgive a like amount of principal and any accrued interest on such forgiven principal according to its original terms , and ( ii ) upon successful completion of the rights offering , issue a number of depositary shares in exchange for their forgiveness of the remaining principal balance of the cargill debt , the number of shares to be determined by the weighted average price of the company 's common stock for the 10 consecutive trading days following completion of the rights offering . on february 15 , 2011 , the company issued 6,597,790 shares of common stock to cargill in exchange for the extinguishment of the remaining principal amount of the cargill debt . off-balance sheet arrangements except for our operating leases , we do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . summary of critical accounting policies and significant estimates the consolidated financial statements of biofuel energy corp. included in this form 10-k have been prepared in conformity with accounting principles generally accepted in the united states . note 2 to these consolidated financial statements contains a summary of our significant accounting policies , certain of which require the use of estimates and assumptions . accounting estimates are an integral part of the preparation of financial statements and are based on judgments by management using its knowledge and experience about the past and current events and assumptions regarding future events , all of which we consider to be reasonable . these judgments and estimates reflect the effects of matters that are inherently uncertain and that affect the carrying value of our assets and liabilities , the disclosure of contingent liabilities and reported amounts of expenses during the reporting period . the accounting estimates and assumptions discussed in this section are those that we believe involve significant judgments and the most uncertainty . changes in these estimates or assumptions could materially affect our financial position and results of operations and are therefore important to an understanding of our consolidated financial statements . 42 revenues the company sells its ethanol and distillers grain products under the terms of marketing agreements . revenue is recognized when risk of loss and title transfers upon shipment of ethanol and distillers grain . in accordance with our marketing agreements , the company records its revenues based on the amounts payable to us at the time of our sales of ethanol and distillers grain . for our ethanol that is sold within the united states , the amount payable is equal to the average delivered price per gallon received by the marketing pool from cargill 's customers , less average transportation and storage charges incurred by cargill , and less a commission . we also sell a portion of our ethanol production to cargill for export , which sales are shipped undenatured and are excluded from the marketing pool . for exported ethanol sales , the amount payable is equal to the contracted delivered price per gallon , less transportation and storage charges , and less a commission . the amount payable for distillers grain is equal to the market price of distillers grain at the time of sale less a commission . recoverability of property , plant and equipment the company has two asset groups , its ethanol facility in fairmont and its ethanol facility in wood river , which are evaluated separately when considering whether the carrying value of these assets has been impaired . the company continually monitors whether or

liquidity and capital resources our cash flows from operating , investing and financing activities during the years ended december 31 , 2011 and 2010 are summarized below ( in thousands ) : replace_table_token_9_th cash provided by operating activities . net cash provided by operating activities was $ 23.6 million for the year ended december 31 , 2011 , compared to $ 12.9 million for the year ended december 31 , 2010. for the year ended december 31 , 2011 , the amount was primarily comprised of a net loss of $ 10.4 million which was offset by working capital sources of $ 2.8 million and non-cash charges of $ 31.2 million , which were primarily depreciation and amortization . working capital sources primarily related to a decrease in accounts receivables which was partially offset by an increase in inventories and a decrease in accounts payable . for the year ended december 31 , 2010 , the amount was primarily comprised of a net loss of $ 25.2 million which was offset by working capital sources of $ 6.2 million and non-cash charges of $ 31.9 million , which were primarily depreciation and amortization . cash used in investing activities . net cash used in investing activities was $ 2.8 million for the year ended december 31 , 2011 , compared to $ 4.6 million for the year ended december 31 , 2010. the net cash used in investing activities during both periods was for capital expenditures related to various plant improvement projects . cash used in financing activities .


 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 cash flows from operating , investing and financing activities during the years ended december 31 , 2011 and 2010 are summarized below ( in thousands ) : replace_table_token_9_th cash provided by operating activities . net cash provided by operating activities was $ 23.6 million for the year ended december 31 , 2011 , compared to $ 12.9 million for the year ended december 31 , 2010. for the year ended december 31 , 2011 , the amount was primarily comprised of a net loss of $ 10.4 million which was offset by working capital sources of $ 2.8 million and non-cash charges of $ 31.2 million , which were primarily depreciation and amortization . working capital sources primarily related to a decrease in accounts receivables which was partially offset by an increase in inventories and a decrease in accounts payable . for the year ended december 31 , 2010 , the amount was primarily comprised of a net loss of $ 25.2 million which was offset by working capital sources of $ 6.2 million and non-cash charges of $ 31.9 million , which were primarily depreciation and amortization . cash used in investing activities . net cash used in investing activities was $ 2.8 million for the year ended december 31 , 2011 , compared to $ 4.6 million for the year ended december 31 , 2010. the net cash used in investing activities during both periods was for capital expenditures related to various plant improvement projects . cash used in financing activities .
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 Suspicious Activity Report : these transactions were completed , and 63,773,603 shares of common stock and 18,369,262 llc interests ( along with an equivalent number of shares of class b common stock ) were issued , on february 4 , 2011 , and the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . in contemplation of the rights offering , on september 23 , 2010 we entered into a letter agreement with cargill pursuant to which we issued 6,597,790 shares of common stock to cargill on february 15 , 2011 , in exchange for the extinguishment of certain indebtedness . see “ — liquidity and capital resources — rights offering and llc concurrent private placement ” . in june 2011 the company terminated its long-term distillers grains marketing agreements with cargill . the company has entered into separate marketing agreements with independent third party marketers for its dry and wet distillers grains . these agreements are for a term of one year , with options to renew for subsequent years , and contain other customary commercial terms . during 2011 , the company decided to install corn oil extraction systems at each of its ethanol plants so that it could begin producing corn oil as an additional co-product . these systems were installed using certain patented technology we have licensed from greenshift corporation for which we pay a royalty . on october 28 , 2011 , the company 's operating subsidiaries received funding under an operating lease each operating subsidiary entered into with farnam street financial , inc. these operating leases provided the funding to pay for most of the costs of installing the corn oil extraction systems at each operating subsidiary . the installation in wood river was completed in december 2011 and the installation in fairmont was completed in january 2012. both operating subsidiaries began generating revenues from corn oil sales early in the first quarter of 2012 . 33 liquidity considerations our operations and cash flows are subject to wide and unpredictable fluctuations primarily due to changes in commodity prices , specifically , the price of our main commodity input , corn , relative to the price of our main commodity product , ethanol , which is known in the industry as the “ crush spread ” . the prices of these commodities are volatile and beyond our control . as a result of the volatility of the prices for these and other items , our results fluctuate substantially and in ways that are largely beyond our control . for example , as shown in the accompanying consolidated financial statements , the company was profitable during the last half of 2011 , with net income of $ 7.0 million , as commodity margins improved significantly from earlier in the year . however , primarily due to narrow commodity margins in the first half of the year , the company incurred a net loss of $ 10.4 million for the year ended december 31 , 2011. narrow commodity margins present a significant risk to our cash flows and liquidity . we have had , and continue to have , limited liquidity , with $ 15.1 million of cash and cash equivalents as of december 31 , 2011. in addition , we have relied upon extensions of payment terms by cargill as an additional source of liquidity and working capital . see `` — liquidity and capital resources `` . commodity margins have narrowed since the end of 2011and , should current commodity margins continue for an extended period of time , we may not generate sufficient cash flow from operations to both service our debt and operate our plants . we are required to make , under the terms of our senior debt facility , quarterly principal payments in a minimum amount of $ 3,150,000 , plus accrued interest . we can not predict when or if crush spreads will fluctuate again or if the current commodity margins will improve or worsen . if crush spreads were to remain at current levels for an extended period of time , we may expend all of our sources of liquidity , in which event we would not be able to pay principal and interest on our debt . any inability to pay principal and interest on our debt would lead to an event of default under our senior debt facility , which , in the absence of forbearance , debt service abeyance or other accommodations from our lenders , could require us to seek relief through a filing under the u.s. bankruptcy code . we expect fluctuations in the crush spread to continue . since we commenced operations , we have from time to time entered into derivative financial instruments such as futures contracts , swaps and options contracts with the objective of limiting our exposure to changes in commodities prices . in the past , we have only been able to conduct such hedging activities on a limited basis due to our lack of financial resources and , while we are currently engaged in some hedging activities , we may not have the financial resources to increase or conduct hedging activities in the future . revenues our primary source of revenue is the sale of ethanol . the selling prices we realize for our ethanol are largely determined by the market supply and demand for ethanol , which , in turn , is influenced by industry and other factors , including government policy and regulations , over which we have little control . ethanol prices are extremely volatile . ethanol revenues are recorded net of transportation and storage charges , and net of marketing commissions we pay to cargill . we also receive revenue from the sale of distillers grain , which is a residual co-product of the processed corn used in the production of ethanol and is sold as animal feed . story_separator_special_tag on february 2 , 2011 , the company 's stockholders approved an increase in the number of authorized shares of common stock of the company , which resulted in the automatic conversion of shares of the preferred stock into shares of the company 's common stock such that subscribers in the rights offering were issued one share of common stock in lieu of each depositary share subscribed for . these transactions were completed , and 63,773,603 shares of common stock and 18,369,262 llc interests ( along with an equivalent number of shares of class b common stock ) were issued , on february 4 , 2011 , and the aggregate gross proceeds of the rights offering and the concurrent private placement were $ 46.0 million . the proceeds of the transaction were used to ( i ) repay in full the bridge loan , ( ii ) repay in full the company 's obligations under the subordinated debt , ( iii ) repay a portion of the cargill debt , and ( iv ) pay certain fees and expenses incurred in connection with the rights offering and the llc 's concurrent private placement . the bridge loan lenders agreed to ( i ) participate in the rights offering for their full pro rata share and participate in the llc 's concurrent private placement for their full basic purchase privileges , which we refer to as their “ basic commitment ” and ( ii ) purchase all of the available depositary shares not otherwise sold in the rights offering and or all of the available preferred membership interests in the llc not sold in the concurrent private placement , which we refer to as their “ backstop commitment ” . the bridge loan lenders purchased $ 0.9 million of depositary shares not otherwise sold in the rights offering pursuant to their backstop commitment . in consideration of their backstop commitment , the company paid the bridge loan lenders $ 0.9 million . in contemplation of the rights offering , on september 23 , 2010 , we entered into a letter agreement with cargill pursuant to which we agreed to ( i ) use a portion of the proceeds from the rights offering to repay a portion of the cargill debt , upon which cargill would forgive a like amount of principal and any accrued interest on such forgiven principal according to its original terms , and ( ii ) upon successful completion of the rights offering , issue a number of depositary shares in exchange for their forgiveness of the remaining principal balance of the cargill debt , the number of shares to be determined by the weighted average price of the company 's common stock for the 10 consecutive trading days following completion of the rights offering . on february 15 , 2011 , the company issued 6,597,790 shares of common stock to cargill in exchange for the extinguishment of the remaining principal amount of the cargill debt . off-balance sheet arrangements except for our operating leases , we do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . summary of critical accounting policies and significant estimates the consolidated financial statements of biofuel energy corp. included in this form 10-k have been prepared in conformity with accounting principles generally accepted in the united states . note 2 to these consolidated financial statements contains a summary of our significant accounting policies , certain of which require the use of estimates and assumptions . accounting estimates are an integral part of the preparation of financial statements and are based on judgments by management using its knowledge and experience about the past and current events and assumptions regarding future events , all of which we consider to be reasonable . these judgments and estimates reflect the effects of matters that are inherently uncertain and that affect the carrying value of our assets and liabilities , the disclosure of contingent liabilities and reported amounts of expenses during the reporting period . the accounting estimates and assumptions discussed in this section are those that we believe involve significant judgments and the most uncertainty . changes in these estimates or assumptions could materially affect our financial position and results of operations and are therefore important to an understanding of our consolidated financial statements . 42 revenues the company sells its ethanol and distillers grain products under the terms of marketing agreements . revenue is recognized when risk of loss and title transfers upon shipment of ethanol and distillers grain . in accordance with our marketing agreements , the company records its revenues based on the amounts payable to us at the time of our sales of ethanol and distillers grain . for our ethanol that is sold within the united states , the amount payable is equal to the average delivered price per gallon received by the marketing pool from cargill 's customers , less average transportation and storage charges incurred by cargill , and less a commission . we also sell a portion of our ethanol production to cargill for export , which sales are shipped undenatured and are excluded from the marketing pool . for exported ethanol sales , the amount payable is equal to the contracted delivered price per gallon , less transportation and storage charges , and less a commission . the amount payable for distillers grain is equal to the market price of distillers grain at the time of sale less a commission . recoverability of property , plant and equipment the company has two asset groups , its ethanol facility in fairmont and its ethanol facility in wood river , which are evaluated separately when considering whether the carrying value of these assets has been impaired . the company continually monitors whether or

