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1,000 | the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we do not expect a similar level of negative provision for loan losses in 2016 . - 25 - we had our third consecutive full year of net recoveries in 2015. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th during the economic downturn in 2008 and 2009 , the state of michigan entered into a recession earlier than the rest of the country and experienced heavy job loss as a result of the concentration the state has related to the automotive industry . our market areas of grand rapids and holland fared better than the state as a whole , but nevertheless the impact of our local economy on our results was profound . the recession and job loss impacted housing values , commercial real estate values and consumer activity . improvement has been evident during the past several years . the state 's unemployment rate at the end of 2015 was 5.1 % , down dramatically from 15.2 % in june 2009. the grand rapids and holland area unemployment rate was 3.0 % at the end of 2015. residential housing values and commercial real estate property values decreased significantly during the recession , but have shown signs of stabilization , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area has stabilized and is now improving . in the grand rapids market during 2015 , there were 10 % more living unit starts than in 2014. similarly , in the holland-grand haven/lakeshore region , there were 11 % more living unit starts in 2015 than in 2014. these improvements are on top of improved results in 2014 over 2013. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . in years immediately following the recession , we diversified our loan portfolio structure by de-emphasizing commercial real estate loans . however , in 2014 , we began cautiously increasing commercial real estate loans along with commercial and industrial loans , residential mortgages and other consumer loans . commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 and $ 508.7 million at december 31 , 2015. commercial and industrial loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 and $ 377.3 million at december 31 , 2015. consumer loans have increased from $ 295.9 million at december 31 , 2013 to totaling $ 300.3 million at december 31 , 2014 and $ 312.0 million at december 31 , 2015. with our improved financial condition , successful capital raise in 2011 , and retained earnings growth , our focus has shifted to high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and believe we are positioned for continued growth in 2016. results of operations summary : net income was $ 12.8 million ( $ 18.4 million on a pretax basis ) for 2015 , compared to net income of $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014 and $ 9.5 million ( $ 13.8 million on a pretax basis ) for 2013. earnings ( loss ) per common share on a diluted basis was $ 0.38 for 2015 , $ 0.31 for 2014 and $ ( 0.29 ) for 2013. earnings ( loss ) per share for 2013 was affected by a one-time , non-cash reduction to net income available to common shares of $ 17.6 million representing the impact of the preferred stock exchange completed on december 30 , 2013. earnings in each period were positively impacted by negative provisions for loan losses ( $ 3.5 million in 2015 , $ 3.4 million in 2014 and $ 4.3 million in 2013 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and reduced levels of chargeoffs . these items are discussed more fully below . we continued our improvement in nonperforming asset expenses in 2015. costs associated with nonperforming assets were $ 3.0 million in 2015 , compared to $ 3.1 million in 2014 and $ 5.5 million in 2013. lost interest from nonperforming assets decreased to approximately $ 1.4 million for 2015 , compared to $ 1.9 million for 2014 and $ 2.4 million for 2013. each of these items are discussed more fully below . - 26 - net interest income : net interest income totaled $ 44.1 million during 2015 , compared to $ 41.4 million during 2014 and $ 41.3 million in 2013. the increase in net interest income during 2015 compared to 2014 was our second straight year with an increase in core net interest income , following several years of declining net interest income . this increase was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) decreased by 6 basis points compared to 2014. as is customary in the banking industry , interest income on tax-exempt securities is adjusted in the computation of the yield on tax-exempt securities and net interest margin using a 35 % tax rate to report these items on a fully taxable equivalent basis . story_separator_special_tag at december 31 , 2012 , we concluded that the valuation allowance was no longer required and the $ 18.9 million valuation allowance was reversed . our effective tax rate was 31 % for 2015 30 % for 2014 and 31 % for 2013. financial condition summary : since the economic recession in 2008 and 2009 , we had been focused on improving our loan portfolio , reducing exposure in higher loan concentration types , building our investment portfolio , and improving our financial condition through diversification of credit risk , improved capital ratios , and reduced reliance on non-core funding . we experienced positive results in each of these areas over the past several years . with the success in strengthening our financial condition , we have turned our focus more recently to achieving high quality loan portfolio growth . total assets were $ 1.730 billion at december 31 , 2015 , an increase of $ 145.8 million from $ 1.584 billion at december 31 , 2014. this change reflected increases of $ 52.0 million in cash and cash equivalents , $ 4.9 million in securities available for sale , $ 20.3 million in securities held to maturity and $ 79.4 million in our loan portfolio , partially offset by decreases of $ 10.7 million in other real estate owned and $ 3.4 million in net deferred tax asset . total deposits increased by $ 129.2 million and other borrowed funds were up by $ 8.1 million at december 31 , 2015 compared to december 31 , 2014 . - 32 - total shareholders ' equity increased by $ 9.5 million from december 31 , 2014 to december 31 , 2015. shareholders ' equity was increased by $ 12.8 million of net income in 2015 , partially offset by cash dividends of $ 3.7 million , or $ 0.11 per share . shareholders ' equity was also increased by $ 286,000 in 2015 as a result of a swing in other comprehensive income due to the effect of interest rate movement on the fair value of our available for sale securities portfolio . as of december 31 , 2015 , the bank was categorized as “ well capitalized ” under applicable regulatory guidelines . story_separator_special_tag 0px ; background-color : # 000000 `` / > the following table shows our loan origination activity for portfolio loans during 2015 , broken out by loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2015 , nonperforming assets totaled $ 18.3 million compared to $ 36.7 million at december 31 , 2014. additions to other real estate owned in 2015 were $ 2.5 million , compared to $ 4.9 million in 2014. based on the loans currently in their redemption period , we expect there to be fewer additions to other real estate owned in 2016 than there were in 2015. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 , resulting in a net realized loss on sale of $ 926,000. proceeds from sales of foreclosed properties were $ 12.5 million in 2014 resulting in a net realized gain of $ 624,000. we expect the level of sales of foreclosed properties in 2016 to be lower than the levels experienced in 2015. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2015 , nonperforming loans totaled $ 756,000 , or 0.06 % of total portfolio loans , compared to $ 8.4 million , or 0.75 % of total portfolio loans , at december 31 , 2014. loans for development or sale of 1-4 family residential properties comprised approximately $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015 compared to $ 245,000 , or 2.9 % of total nonperforming loans , at december 31 , 2014. the remaining balance of nonperforming loans at december 31 , 2015 consisted of $ 330,000 of commercial real estate loans secured by various types of non-residential real estate , $ 174,000 of commercial and industrial loans , and $ 57,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 17.6 million at december 31 , 2015 and $ 28.2 million at december 31 , 2014. of this balance at december 31 , 2015 , there were 48 commercial real estate properties totaling approximately $ 16.6 million . the remaining balance was comprised of 10 residential properties totaling approximately $ 1.0 million . one commercial real estate property comprised $ 4.0 million , or 23 % , of total other real estate owned at december 31 , 2015. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . - 35 - at december 31 , 2015 , our foreclosed asset portfolio had a weighted average age held in portfolio of 3.87 years . below is a breakout of our foreclosed asset portfolio at december
| cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 181.5 million at december 31 , 2015 compared to $ 129.5 million at december 31 , 2014. this $ 52.0 million increase was a result of deposit growth exceeding loan growth during 2015 and a seasonal increase in deposits at year end . interest-bearing time deposits with other financial institutions : we opened two time deposit accounts with our primary correspondent bank in the first quarter of 2013 , each in equal amounts totaling $ 25.0 million . one of these deposits matured in march 2014 and the other matured in september 2014. we opened another time deposit of $ 20.0 million in the first quarter of 2014 which matures in february 2016. these time deposits provide a higher interest rate than federal funds sold or other short-term investments . securities : securities available for sale were $ 166.8 million at december 31 , 2015 compared to $ 161.9 million at december 31 , 2014. the balance at december 31 , 2015 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 31.6 million at december 31 , 2014 to $ 51.9 million at december 31 , 2015. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 79.4 million to $ 1.20 billion at december 31 , 2015 compared to $ 1.12 billion at december 31 , 2014. during 2015 , our commercial portfolio increased by $ 67.8 million , while our residential portfolio increased by $ 19.7 million and our consumer portfolio decreased by $ 8.1 million . the volume of residential mortgage loans originated for sale in 2015 increased compared to 2014 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 181.5 million at december 31 , 2015 compared to $ 129.5 million at december 31 , 2014. this $ 52.0 million increase was a result of deposit growth exceeding loan growth during 2015 and a seasonal increase in deposits at year end . interest-bearing time deposits with other financial institutions : we opened two time deposit accounts with our primary correspondent bank in the first quarter of 2013 , each in equal amounts totaling $ 25.0 million . one of these deposits matured in march 2014 and the other matured in september 2014. we opened another time deposit of $ 20.0 million in the first quarter of 2014 which matures in february 2016. these time deposits provide a higher interest rate than federal funds sold or other short-term investments . securities : securities available for sale were $ 166.8 million at december 31 , 2015 compared to $ 161.9 million at december 31 , 2014. the balance at december 31 , 2015 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 31.6 million at december 31 , 2014 to $ 51.9 million at december 31 , 2015. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 79.4 million to $ 1.20 billion at december 31 , 2015 compared to $ 1.12 billion at december 31 , 2014. during 2015 , our commercial portfolio increased by $ 67.8 million , while our residential portfolio increased by $ 19.7 million and our consumer portfolio decreased by $ 8.1 million . the volume of residential mortgage loans originated for sale in 2015 increased compared to 2014 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
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Suspicious Activity Report : the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we do not expect a similar level of negative provision for loan losses in 2016 . - 25 - we had our third consecutive full year of net recoveries in 2015. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th during the economic downturn in 2008 and 2009 , the state of michigan entered into a recession earlier than the rest of the country and experienced heavy job loss as a result of the concentration the state has related to the automotive industry . our market areas of grand rapids and holland fared better than the state as a whole , but nevertheless the impact of our local economy on our results was profound . the recession and job loss impacted housing values , commercial real estate values and consumer activity . improvement has been evident during the past several years . the state 's unemployment rate at the end of 2015 was 5.1 % , down dramatically from 15.2 % in june 2009. the grand rapids and holland area unemployment rate was 3.0 % at the end of 2015. residential housing values and commercial real estate property values decreased significantly during the recession , but have shown signs of stabilization , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area has stabilized and is now improving . in the grand rapids market during 2015 , there were 10 % more living unit starts than in 2014. similarly , in the holland-grand haven/lakeshore region , there were 11 % more living unit starts in 2015 than in 2014. these improvements are on top of improved results in 2014 over 2013. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . in years immediately following the recession , we diversified our loan portfolio structure by de-emphasizing commercial real estate loans . however , in 2014 , we began cautiously increasing commercial real estate loans along with commercial and industrial loans , residential mortgages and other consumer loans . commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 and $ 508.7 million at december 31 , 2015. commercial and industrial loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 and $ 377.3 million at december 31 , 2015. consumer loans have increased from $ 295.9 million at december 31 , 2013 to totaling $ 300.3 million at december 31 , 2014 and $ 312.0 million at december 31 , 2015. with our improved financial condition , successful capital raise in 2011 , and retained earnings growth , our focus has shifted to high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and believe we are positioned for continued growth in 2016. results of operations summary : net income was $ 12.8 million ( $ 18.4 million on a pretax basis ) for 2015 , compared to net income of $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014 and $ 9.5 million ( $ 13.8 million on a pretax basis ) for 2013. earnings ( loss ) per common share on a diluted basis was $ 0.38 for 2015 , $ 0.31 for 2014 and $ ( 0.29 ) for 2013. earnings ( loss ) per share for 2013 was affected by a one-time , non-cash reduction to net income available to common shares of $ 17.6 million representing the impact of the preferred stock exchange completed on december 30 , 2013. earnings in each period were positively impacted by negative provisions for loan losses ( $ 3.5 million in 2015 , $ 3.4 million in 2014 and $ 4.3 million in 2013 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and reduced levels of chargeoffs . these items are discussed more fully below . we continued our improvement in nonperforming asset expenses in 2015. costs associated with nonperforming assets were $ 3.0 million in 2015 , compared to $ 3.1 million in 2014 and $ 5.5 million in 2013. lost interest from nonperforming assets decreased to approximately $ 1.4 million for 2015 , compared to $ 1.9 million for 2014 and $ 2.4 million for 2013. each of these items are discussed more fully below . - 26 - net interest income : net interest income totaled $ 44.1 million during 2015 , compared to $ 41.4 million during 2014 and $ 41.3 million in 2013. the increase in net interest income during 2015 compared to 2014 was our second straight year with an increase in core net interest income , following several years of declining net interest income . this increase was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) decreased by 6 basis points compared to 2014. as is customary in the banking industry , interest income on tax-exempt securities is adjusted in the computation of the yield on tax-exempt securities and net interest margin using a 35 % tax rate to report these items on a fully taxable equivalent basis . story_separator_special_tag at december 31 , 2012 , we concluded that the valuation allowance was no longer required and the $ 18.9 million valuation allowance was reversed . our effective tax rate was 31 % for 2015 30 % for 2014 and 31 % for 2013. financial condition summary : since the economic recession in 2008 and 2009 , we had been focused on improving our loan portfolio , reducing exposure in higher loan concentration types , building our investment portfolio , and improving our financial condition through diversification of credit risk , improved capital ratios , and reduced reliance on non-core funding . we experienced positive results in each of these areas over the past several years . with the success in strengthening our financial condition , we have turned our focus more recently to achieving high quality loan portfolio growth . total assets were $ 1.730 billion at december 31 , 2015 , an increase of $ 145.8 million from $ 1.584 billion at december 31 , 2014. this change reflected increases of $ 52.0 million in cash and cash equivalents , $ 4.9 million in securities available for sale , $ 20.3 million in securities held to maturity and $ 79.4 million in our loan portfolio , partially offset by decreases of $ 10.7 million in other real estate owned and $ 3.4 million in net deferred tax asset . total deposits increased by $ 129.2 million and other borrowed funds were up by $ 8.1 million at december 31 , 2015 compared to december 31 , 2014 . - 32 - total shareholders ' equity increased by $ 9.5 million from december 31 , 2014 to december 31 , 2015. shareholders ' equity was increased by $ 12.8 million of net income in 2015 , partially offset by cash dividends of $ 3.7 million , or $ 0.11 per share . shareholders ' equity was also increased by $ 286,000 in 2015 as a result of a swing in other comprehensive income due to the effect of interest rate movement on the fair value of our available for sale securities portfolio . as of december 31 , 2015 , the bank was categorized as “ well capitalized ” under applicable regulatory guidelines . story_separator_special_tag 0px ; background-color : # 000000 `` / > the following table shows our loan origination activity for portfolio loans during 2015 , broken out by loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2015 , nonperforming assets totaled $ 18.3 million compared to $ 36.7 million at december 31 , 2014. additions to other real estate owned in 2015 were $ 2.5 million , compared to $ 4.9 million in 2014. based on the loans currently in their redemption period , we expect there to be fewer additions to other real estate owned in 2016 than there were in 2015. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 , resulting in a net realized loss on sale of $ 926,000. proceeds from sales of foreclosed properties were $ 12.5 million in 2014 resulting in a net realized gain of $ 624,000. we expect the level of sales of foreclosed properties in 2016 to be lower than the levels experienced in 2015. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2015 , nonperforming loans totaled $ 756,000 , or 0.06 % of total portfolio loans , compared to $ 8.4 million , or 0.75 % of total portfolio loans , at december 31 , 2014. loans for development or sale of 1-4 family residential properties comprised approximately $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015 compared to $ 245,000 , or 2.9 % of total nonperforming loans , at december 31 , 2014. the remaining balance of nonperforming loans at december 31 , 2015 consisted of $ 330,000 of commercial real estate loans secured by various types of non-residential real estate , $ 174,000 of commercial and industrial loans , and $ 57,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 17.6 million at december 31 , 2015 and $ 28.2 million at december 31 , 2014. of this balance at december 31 , 2015 , there were 48 commercial real estate properties totaling approximately $ 16.6 million . the remaining balance was comprised of 10 residential properties totaling approximately $ 1.0 million . one commercial real estate property comprised $ 4.0 million , or 23 % , of total other real estate owned at december 31 , 2015. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . - 35 - at december 31 , 2015 , our foreclosed asset portfolio had a weighted average age held in portfolio of 3.87 years . below is a breakout of our foreclosed asset portfolio at december
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1,001 | we have also used proceeds from our stock financings and operating cash flow to fund loans in the past and continue to finance a portion of our outstanding loans with these funds . of the total principal outstanding as of december 31 , 2015 , including our loans held for investment and loans held for sale , plus loans sold to ondeck marketplace investors which had a balance remaining as of december 31 , 2015 , 39 % were funded via ondeck marketplace investors , 26 % were funded via our debt warehouse facilities , 21 % were financed via proceeds raised from our securitization transaction and 14 % were funded via our own equity . we originate loans through direct marketing , including direct mail , social media , and other online marketing channels . we also originate loans through referrals from our strategic partners , including banks , payment processors and small business-focused service providers , and through funding advisors who advise small businesses on available funding options . we have grown rapidly over the three years ended december 31 , 2015 . we generated gross revenue of $ 254.8 million , $ 158.1 million and $ 65.2 million , during the years ended december 31 , 2015 , 2014 and 2013 , respectively . we currently make loans throughout the united states and in canada and australia , although , to date , substantially all of our revenue has been generated in the united states . our adjusted ebitda , a non-gaap measure which is described in further detail in the section below titled “ —key financial and operating metrics , ” improved to positive $ 16.2 million for the year ended december 31 , 2015 from negative $ 0.2 million and negative $ 16.3 million for the years ended december 31 , 2014 and 2013 , respectively . we incurred net losses of $ 2.2 million , $ 18.7 million and $ 24.4 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . initial public offering on december 22 , 2014 , we completed our initial public offering . we issued and sold 11,500,000 shares of our common stock at a public offering price of $ 20.00 per share , including 1,500,000 shares sold in connection with the exercise in full of the over-allotment option we granted to the underwriters . we received net offering proceeds of $ 210.0 million , after deducting underwriting discounts and commissions and offering expenses . key financial and operating metrics 37 we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and making strategic decisions . replace_table_token_7_th originations originations represent the total principal amount of the term loans we made during the period , plus the total amount drawn on lines of credit during the period . many of our repeat customers renew their loans before their existing loan is fully repaid . in accordance with industry practice , originations of such repeat loans are presented as the full renewal loan principal , rather than the net funded amount , which would be the renewal loan 's principal net of the unpaid principal balance on the existing loan . loans referred to , and funded by , our issuing bank partners and later purchased by us are included as part of our originations . unpaid principal balance unpaid principal balance represents the total amount of principal outstanding of term loans held for investment and amounts outstanding under lines of credit at the end of the period . it excludes net deferred origination costs , allowance for loan losses and any loans sold or held for sale at the end of the period . average loans average loans for the period is the simple average of loans held for investment as of the beginning of the period and as of the end of each quarter in the period . loans under management loans under management represents the unpaid principal balance plus the amount of principal outstanding of loans held for sale , excluding net deferred origination costs , plus the amount of principal outstanding of term loans we serviced for others at the end of the period . effective interest yield effective interest yield is the rate of return we achieve on loans outstanding during a period . for full years , it is calculated as our interest income divided by average loans and for interim periods it is calculated as our annualized interest income for the period divided by averag e loans . net deferred origination costs in loans held for investment consist of deferred origination fees and costs . deferred origination fees include fees paid up front to us by customers when loans are funded and decrease the carrying value of loans , thereby increasing the effective interest yield earned . deferred origination costs are limited to costs directly attributable to originating loans such as 38 commissions , vendor costs and personnel costs directly related to the time spent by the personnel performing activities related to loan origination and increase the carrying value of loans , thereby decreasing the effective interest yield earned . recent pricing trends are discussed under the subheading `` key factors affecting our performance - pricing . `` marketplace gain on sale rate marketplace gain on sale rate equals our gain on sale revenue from loans sold through ondeck marketplace divided by the carrying value of loans sold , which includes both unpaid principal balance sold and the remaining carrying value of the net deferred origination costs . a portion of loans regularly sold through ondeck marketplace are or may be loans which were initially designated as held for investment upon origination . the portion of such loans sold in a given period may vary materially dependent upon market conditions and other circumstances . story_separator_special_tag we believe that for such short-term loans , cents on dollar , or similar cost measures that provide total interest expense , give a borrower important information to understand and compare loans , and make an educated decision . despite these limitations , we are exploring ways to increase standardization of pricing and comparison terms in our industry in order to help small business customers assess their credit options . we are also providing aprs for prior periods as supplemental information for comparative purposes . historically , we have not used apr as an internal metric to evaluate performance of our business or as a basis to compensate our employees or to measure their performance . the interest on commercial business loans is also tax deductible as permitted by law compared to typical personal loans which do not provide a tax deduction . apr does not give effect to the small business customer 's possible tax deductions and cash savings associated with business related interest expenses . we consider effective interest yield , or eiy , as a key pricing metric . eiy is the rate of return we achieve on loans outstanding during a period . our eiy differs from apr in that it takes into account deferred origination fees and deferred origination costs . deferred origination fees include fees paid up front to us by customers when loans are funded and decrease the carrying value of loans , thereby increasing the eiy . deferred origination costs are limited to costs directly attributable to originating loans such as commissions , vendor costs and personnel costs directly related to the time spent by the personnel performing activities related to loan origination and increase the carrying value of loans , thereby decreasing the effective interest yield . in addition to individual loan pricing and the number of days in a period , there are many other factors that can affect eiy , including : channel mix - in general , loans originated from the direct and strategic partner channels have lower eiys than loans from the funding advisor channel primarily due to their lower rates , lower acquisition costs and lower loss rates . the direct and strategic partner channels have , in the aggregate , made up 72 % , 59 % and 44 % of total originations during the years ended december 31 , 2015 , 2014 and 2013 , respectively . we expect the direct and strategic partner channels to continue to grow as a percentage of the overall channel mix as we continue to focus on growing these historically higher-quality originations . term mix - in general , term loans with longer durations have lower annualized interest rates . despite lower eiys , total revenues from customers with longer loan durations are typically higher than the revenue of customers with shorter-term , higher eiy loans because total payback is typically higher compared to a shorter length term for the same principal loan amount . since the introduction of our 24-month and 36-month term loan products , the average length of new term loan originations has increased to 11.8 from 10.8 and 10.0 months for the years ended december 31 , 2015 , 2014 and 2013 , respectively . customer type mix - in general , loans originated from repeat customers have lower eiys than loans from new customers . this is primarily due to the fact that repeat customers typically have a higher ondeck score and are therefore deemed to be lower risk . in addition , repeat customers are more likely to be approved for longer terms than new customers given their established payment history and lower risk profiles . finally , origination fees are generally reduced or waived and rates are lower for repeat customers due to our loyalty program , contributing to lower eiys . product mix - in general , loans originated from line of credit customers have lower eiys than loans from term loan customers . this is primarily due to the fact that lines of credit are expected to have longer lifetime usage than term loans , enabling more time to recoup upfront acquisition costs . for the year ended 2015 , the average line of credit apr was 33.8 % , compared to the average term loan apr which was 45.0 % . further , draws from line of credit customers have increased to 9.1 % from 4.9 % of total originations in 2015 and 2014 , respectively . as we expand the availability and market awareness of our 24-month and 36-month term loan products , we expect the product mix to result in a further 44 reduction of eiy although it is not possible to estimate the impact since such impact is dependent upon the ultimate volume achieved by those new products which can not yet be determined . competition - as new online and alternative lenders have entered the market , there has been an increased volume of direct marketing to potential borrowers and increased competition for responses to those direct marketing efforts . competitors may attempt to obtain new customers by pricing term loans and lines of credit below prevailing market rates . this could cause downward pricing pressure as these new entrants attempt to win new customers even at the cost of pricing loans below market rates , or even at rates resulting in net losses to them . while we recognize that there has been increased competition in the market of small business loans , we believe only a small portion of our period over period eiy decline is a result of increased competition . ondeck marketplace loan sales - since its inception in october 2013 through the first quarter of 2015 , ondeck marketplace sales had a negligible effect on eiy due to the fact that loans were typically sold within several days of origination resulting in immaterial increases to interest income . during 2015 , eiy began to be more significantly impacted by
| cash flows operating activities for the year ended december 31 , 2015 , net cash provided by our operating activities $ 118.9 million , which were primarily the result of our cash received from our customers including interest payments $ 234.6 million , plus proceeds from sale of loans held for sale of $ 489.4 million , less $ 433.7 million of loans held for sale originations in excess of loan repayments received , $ 134.7 million utilized to pay our operating expenses and $ 15.4 million we used to pay the interest on our debt ( both funding and corporate ) . during that same period , accounts payable and accrued expenses and other liabilities increased by approximately $ 16.2 million . cash flows provided by operating activities in 2014 were $ 103.2 million , which were primarily the result of our cash received from our customers including interest payments as well as the gain on sale of our loans totaling approximately $ 185.3 million , less the amount of cash we utilized to pay our operating expenses of approximately $ 67.8 million and $ 15.0 million we used to pay the interest on our debt ( both funding and corporate ) . during that same period , accounts payable and accrued expenses and other liabilities increased by approximately $ 7.6 million .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows operating activities for the year ended december 31 , 2015 , net cash provided by our operating activities $ 118.9 million , which were primarily the result of our cash received from our customers including interest payments $ 234.6 million , plus proceeds from sale of loans held for sale of $ 489.4 million , less $ 433.7 million of loans held for sale originations in excess of loan repayments received , $ 134.7 million utilized to pay our operating expenses and $ 15.4 million we used to pay the interest on our debt ( both funding and corporate ) . during that same period , accounts payable and accrued expenses and other liabilities increased by approximately $ 16.2 million . cash flows provided by operating activities in 2014 were $ 103.2 million , which were primarily the result of our cash received from our customers including interest payments as well as the gain on sale of our loans totaling approximately $ 185.3 million , less the amount of cash we utilized to pay our operating expenses of approximately $ 67.8 million and $ 15.0 million we used to pay the interest on our debt ( both funding and corporate ) . during that same period , accounts payable and accrued expenses and other liabilities increased by approximately $ 7.6 million .
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Suspicious Activity Report : we have also used proceeds from our stock financings and operating cash flow to fund loans in the past and continue to finance a portion of our outstanding loans with these funds . of the total principal outstanding as of december 31 , 2015 , including our loans held for investment and loans held for sale , plus loans sold to ondeck marketplace investors which had a balance remaining as of december 31 , 2015 , 39 % were funded via ondeck marketplace investors , 26 % were funded via our debt warehouse facilities , 21 % were financed via proceeds raised from our securitization transaction and 14 % were funded via our own equity . we originate loans through direct marketing , including direct mail , social media , and other online marketing channels . we also originate loans through referrals from our strategic partners , including banks , payment processors and small business-focused service providers , and through funding advisors who advise small businesses on available funding options . we have grown rapidly over the three years ended december 31 , 2015 . we generated gross revenue of $ 254.8 million , $ 158.1 million and $ 65.2 million , during the years ended december 31 , 2015 , 2014 and 2013 , respectively . we currently make loans throughout the united states and in canada and australia , although , to date , substantially all of our revenue has been generated in the united states . our adjusted ebitda , a non-gaap measure which is described in further detail in the section below titled “ —key financial and operating metrics , ” improved to positive $ 16.2 million for the year ended december 31 , 2015 from negative $ 0.2 million and negative $ 16.3 million for the years ended december 31 , 2014 and 2013 , respectively . we incurred net losses of $ 2.2 million , $ 18.7 million and $ 24.4 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . initial public offering on december 22 , 2014 , we completed our initial public offering . we issued and sold 11,500,000 shares of our common stock at a public offering price of $ 20.00 per share , including 1,500,000 shares sold in connection with the exercise in full of the over-allotment option we granted to the underwriters . we received net offering proceeds of $ 210.0 million , after deducting underwriting discounts and commissions and offering expenses . key financial and operating metrics 37 we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and making strategic decisions . replace_table_token_7_th originations originations represent the total principal amount of the term loans we made during the period , plus the total amount drawn on lines of credit during the period . many of our repeat customers renew their loans before their existing loan is fully repaid . in accordance with industry practice , originations of such repeat loans are presented as the full renewal loan principal , rather than the net funded amount , which would be the renewal loan 's principal net of the unpaid principal balance on the existing loan . loans referred to , and funded by , our issuing bank partners and later purchased by us are included as part of our originations . unpaid principal balance unpaid principal balance represents the total amount of principal outstanding of term loans held for investment and amounts outstanding under lines of credit at the end of the period . it excludes net deferred origination costs , allowance for loan losses and any loans sold or held for sale at the end of the period . average loans average loans for the period is the simple average of loans held for investment as of the beginning of the period and as of the end of each quarter in the period . loans under management loans under management represents the unpaid principal balance plus the amount of principal outstanding of loans held for sale , excluding net deferred origination costs , plus the amount of principal outstanding of term loans we serviced for others at the end of the period . effective interest yield effective interest yield is the rate of return we achieve on loans outstanding during a period . for full years , it is calculated as our interest income divided by average loans and for interim periods it is calculated as our annualized interest income for the period divided by averag e loans . net deferred origination costs in loans held for investment consist of deferred origination fees and costs . deferred origination fees include fees paid up front to us by customers when loans are funded and decrease the carrying value of loans , thereby increasing the effective interest yield earned . deferred origination costs are limited to costs directly attributable to originating loans such as 38 commissions , vendor costs and personnel costs directly related to the time spent by the personnel performing activities related to loan origination and increase the carrying value of loans , thereby decreasing the effective interest yield earned . recent pricing trends are discussed under the subheading `` key factors affecting our performance - pricing . `` marketplace gain on sale rate marketplace gain on sale rate equals our gain on sale revenue from loans sold through ondeck marketplace divided by the carrying value of loans sold , which includes both unpaid principal balance sold and the remaining carrying value of the net deferred origination costs . a portion of loans regularly sold through ondeck marketplace are or may be loans which were initially designated as held for investment upon origination . the portion of such loans sold in a given period may vary materially dependent upon market conditions and other circumstances . story_separator_special_tag we believe that for such short-term loans , cents on dollar , or similar cost measures that provide total interest expense , give a borrower important information to understand and compare loans , and make an educated decision . despite these limitations , we are exploring ways to increase standardization of pricing and comparison terms in our industry in order to help small business customers assess their credit options . we are also providing aprs for prior periods as supplemental information for comparative purposes . historically , we have not used apr as an internal metric to evaluate performance of our business or as a basis to compensate our employees or to measure their performance . the interest on commercial business loans is also tax deductible as permitted by law compared to typical personal loans which do not provide a tax deduction . apr does not give effect to the small business customer 's possible tax deductions and cash savings associated with business related interest expenses . we consider effective interest yield , or eiy , as a key pricing metric . eiy is the rate of return we achieve on loans outstanding during a period . our eiy differs from apr in that it takes into account deferred origination fees and deferred origination costs . deferred origination fees include fees paid up front to us by customers when loans are funded and decrease the carrying value of loans , thereby increasing the eiy . deferred origination costs are limited to costs directly attributable to originating loans such as commissions , vendor costs and personnel costs directly related to the time spent by the personnel performing activities related to loan origination and increase the carrying value of loans , thereby decreasing the effective interest yield . in addition to individual loan pricing and the number of days in a period , there are many other factors that can affect eiy , including : channel mix - in general , loans originated from the direct and strategic partner channels have lower eiys than loans from the funding advisor channel primarily due to their lower rates , lower acquisition costs and lower loss rates . the direct and strategic partner channels have , in the aggregate , made up 72 % , 59 % and 44 % of total originations during the years ended december 31 , 2015 , 2014 and 2013 , respectively . we expect the direct and strategic partner channels to continue to grow as a percentage of the overall channel mix as we continue to focus on growing these historically higher-quality originations . term mix - in general , term loans with longer durations have lower annualized interest rates . despite lower eiys , total revenues from customers with longer loan durations are typically higher than the revenue of customers with shorter-term , higher eiy loans because total payback is typically higher compared to a shorter length term for the same principal loan amount . since the introduction of our 24-month and 36-month term loan products , the average length of new term loan originations has increased to 11.8 from 10.8 and 10.0 months for the years ended december 31 , 2015 , 2014 and 2013 , respectively . customer type mix - in general , loans originated from repeat customers have lower eiys than loans from new customers . this is primarily due to the fact that repeat customers typically have a higher ondeck score and are therefore deemed to be lower risk . in addition , repeat customers are more likely to be approved for longer terms than new customers given their established payment history and lower risk profiles . finally , origination fees are generally reduced or waived and rates are lower for repeat customers due to our loyalty program , contributing to lower eiys . product mix - in general , loans originated from line of credit customers have lower eiys than loans from term loan customers . this is primarily due to the fact that lines of credit are expected to have longer lifetime usage than term loans , enabling more time to recoup upfront acquisition costs . for the year ended 2015 , the average line of credit apr was 33.8 % , compared to the average term loan apr which was 45.0 % . further , draws from line of credit customers have increased to 9.1 % from 4.9 % of total originations in 2015 and 2014 , respectively . as we expand the availability and market awareness of our 24-month and 36-month term loan products , we expect the product mix to result in a further 44 reduction of eiy although it is not possible to estimate the impact since such impact is dependent upon the ultimate volume achieved by those new products which can not yet be determined . competition - as new online and alternative lenders have entered the market , there has been an increased volume of direct marketing to potential borrowers and increased competition for responses to those direct marketing efforts . competitors may attempt to obtain new customers by pricing term loans and lines of credit below prevailing market rates . this could cause downward pricing pressure as these new entrants attempt to win new customers even at the cost of pricing loans below market rates , or even at rates resulting in net losses to them . while we recognize that there has been increased competition in the market of small business loans , we believe only a small portion of our period over period eiy decline is a result of increased competition . ondeck marketplace loan sales - since its inception in october 2013 through the first quarter of 2015 , ondeck marketplace sales had a negligible effect on eiy due to the fact that loans were typically sold within several days of origination resulting in immaterial increases to interest income . during 2015 , eiy began to be more significantly impacted by
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1,002 | use of estimates the preparation of financial statements in conformity with u.s. generally accepted accounting principles ( `` u.s. gaap `` ) requires management to make estimates and assumptions that affect the reported amounts and classification of assets , such as marketable securities , accounts receivable , inventory , goodwill ( including the assessment of reporting unit ) , intangible assets , current and deferred income taxes , accrued liabilities ( including restructuring charges and bonus arrangements ) , deferred income and allowances on sales to sell-through distributors , disclosure of contingent assets and liabilities at the date of the financial statements , amounts used in acquisition valuations and purchase accounting , and the reported amounts of product revenue , licensing and services revenue , and expenses during the fiscal periods presented . actual results could differ from those estimates . revenue recognition and deferred income product revenue we sell our products directly to end customers , through a network of independent manufacturers ' representatives , and indirectly through a network of independent sell-in and sell-through distributors . distributors provide periodic data regarding the product , price , quantity , and end customer when products are resold , as well as the quantities of our products they still have in stock . 30 revenue from sales to original equipment manufacturers ( `` oems `` ) and sell-in distributors is generally recognized upon shipment . reserves for sell-in stock rotations , where applicable , are estimated based primarily on historical experience and provided for at the time of shipment . revenue from sales by our sell-through distributors is recognized at the time of reported resale . under both types of revenue recognition , persuasive evidence of an arrangement exists , the price is fixed or determinable , title has transferred , collection of resulting receivables is reasonably assured , and there are no remaining customer acceptance requirements and no remaining significant performance obligations . orders from our sell-through distributors are initially recorded at published list prices ; however , for a majority of our sales , the final selling price is determined at the time of resale and in accordance with a distributor price agreement . for this reason , we do not recognize revenue until products are resold by sell-through distributors to an end customer . in certain circumstances , we allow sell-through distributors to return unsold products . at times , we protect our sell-through distributors against reductions in published list prices . at the time of shipment to sell-through distributors , we ( a ) record accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered , ( b ) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor , and ( c ) record deferred revenue and deferred cost of sales in deferred income and allowances on sales to sell-through distributors in the liability section of our consolidated balance sheets . revenue and cost of sales to sell-through distributors are deferred until either the product is resold by the distributor or , in certain cases , return privileges terminate , at which time revenue and cost of products sold are reflected in net ( loss ) income , and accounts receivable , net are adjusted to reflect the final selling price . we use estimates and apply judgment to reconcile sell-through distributors ' inventories . errors in our estimates or judgments could result in inaccurate reporting of our revenue , cost of products sold , deferred income and allowances on sales to sell-through distributors , and net ( loss ) income . licensing and services revenue our licensing and services revenue is comprised of revenue from our ip core licensing activity , patent monetization activities , and royalty and adopter fee revenue from our standards activities . these activities are complementary to our product sales and help us monetize our ip and accelerate market adoption curves associated with our technology and standards . from time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions . such licensing agreements may include upfront license fees and ongoing royalties . the contractual terms of the agreements generally provide for payments of upfront license fees and or royalties over an extended period of time . revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met , while revenue from royalties is recognized when reported to us by customers . we enter into ip licensing agreements that generally provide licensees the right to incorporate our ip components into their products pursuant to terms and conditions that vary by licensee . revenue earned under these agreements is classified as licensing and services revenue . our ip licensing agreements generally include multiple elements , which may include one or more off-the-shelf or customized ip licenses bundled with support services covering a fixed period of time , generally one year . if the different elements of a multiple-element arrangement qualify as separate units of accounting , we allocate the total arrangement consideration to each element based on relative selling price . amounts allocated to off-the-shelf ip licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met . amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period , generally one year . certain licensing agreements provide for royalty payments based on agreed-upon royalty rates , which may be fixed or variable depending on the terms of the agreement . the amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the reported number of units shipped by the customer . story_separator_special_tag for fiscal 2015 , communications and computing end market revenue decreased 21 % primarily driven by a decrease in demand relative to fiscal 2014 from communications customers supporting 4g-lte infrastructure build out in china as that program returned to more normal volumes . mobile and consumer end market revenue increased 1 % in fiscal 2016 , after increasing 37 % in fiscal 2015. mobile and consumer end market revenue increased in fiscal 2016 primarily due to a significant increase in new programmable production volume for a major mobile handset provider offset by a nearly equal decline in assp shipments related to high-definition television ( `` hdtv `` ) and mobile handsets . mobile and consumer end market revenue increased in fiscal 2015 primarily due to the acquisition of silicon image , offset by a 60 % decline in our fpga product revenue due primarily to lower demand at a major oem for certain of our ice40 products . the products acquired were concentrated in the dtv , home theater , and mobile communications markets . for fiscal 2016 , industrial and automotive end market revenue increased 41 % when compared to fiscal 2015. this is primarily due to strength in programmable products revenue resulting from line item reduction and complex programmable logic device ( `` cpld `` ) conversions affecting both the americas and europe . for fiscal 2015 , industrial and automotive end market revenue increased 7 % when compared to fiscal 2014 primarily due to industrial and automotive end market growth in asia and the acquisition of silicon image . licensing and services revenue decreased by 1 % in fiscal 2016 primarily due to slightly reduced adopter fees and audit revenues at licensed end customers . licensing and services revenue was first recognized in fiscal 2015 following the acquisition of silicon image in march 2015. previously , we did not have licensing and services revenue . revenue from this end market is expected to fluctuate , sometimes significantly , from period to period as a result of the timing of completion of ip license arrangements , ip sales , patent sales , and settlement of royalty audits . as a result of the amended model for sharing revenue and the appointment of a new independent agent for the hdmi consortium , we will be entitled to a reduced share of adopter fees paid by parties adopting the hdmi standard in 2017 . 35 revenue by geography we assign revenue to geographies based on customer ship-to address at the point where revenue is recognized . in the case of sell-in distributors and oem customers , revenue is typically recognized , and geography is assigned , when products are shipped to our distributor or oem customer . in the case of sell-through distributors , revenue is recognized when resale to the end customer occurs and geography is assigned based on the end customer location on the resale reports provided by the distributor . both foreign and domestic sales are denominated in u.s. dollars , with the exception of certain historical sales in japan , which were denominated in yen . the composition of our revenue by geography , based on ship-to location , for fiscal years 2016 , 2015 and 2014 was as follows : replace_table_token_6_th revenue in asia decreased 1 % in fiscal 2016 and increased 16 % in fiscal 2015. in fiscal 2016 , revenue decreased in asia primarily due to declines in hdtv and assp revenue , although these were substantially offset by increases in revenue from programmable logic products in the mobile and consumer end market . in fiscal 2015 , revenue growth in asia was due primarily to the acquisition of silicon image , a high concentration of whose products are in the consumer market with the end products they serve heavily manufactured in asia . we believe the asia pacific region will remain the primary source of our revenue due to relatively more favorable business conditions in asia and a continuing trend towards the migration of manufacturing by north american and european customers to the asia pacific region . revenue in europe increased 8 % in fiscal 2016 primarily due to line item reduction and cpld conversions . revenue in europe decreased 6 % in fiscal 2015 primarily due to the completion of a specific program at a large communications customer and a decrease in volume at an industrial customer . revenue from the americas increased 48 % in fiscal 2016 primarily due to line item reduction and cpld conversions . americas revenue increased 4 % in fiscal 2015 due to the addition of silicon image which contributed revenue both in devices and licensing and services enough to offset a decline in programmable products revenue in the region . revenue from foreign sales as a percentage of total revenue was 88 % , 92 % , and 92 % for fiscal 2016 , 2015 and 2014 , respectively . revenue from end customers our top five end customers constituted approximately 27 % in fiscal 2016 , compared to approximately 32 % and 45 % in fiscal years 2015 and 2014 , respectively , primarily due to a more diverse customer base . during fiscal years 2016 and 2015 , no end customer accounted for more than 10 % of total revenue . our largest end customer in fiscal 2016 accounted for approximately 9.9 % of total revenue , while our largest end customer in fiscal 2015 accounted for approximately 9.3 % of total revenue . in fiscal 2014 , our two largest end customers accounted for 19.1 % and 12.3 % , respectively , of total revenue . no other customers accounted for more than 10 % of total revenue during these periods . revenue by distributors sales through distributors have historically accounted for a significant portion of our total revenue . revenue attributable to resale of products by our primary sell-through distributors for fiscal years 2016 , 2015 and 2014 was as follows
| liquidity cash and cash equivalents and short-term marketable securities replace_table_token_19_th as of december 31 , 2016 , we had total cash and cash equivalents and short-term marketable securities of $ 116.9 million , of which approximately $ 65.9 million in cash and cash equivalents was held by our foreign subsidiaries . we manage our global cash requirements considering ( i ) available funds among the subsidiaries through which we conduct business , ( ii ) the geographic location of our liquidity needs , and ( iii ) the cost to access international cash balances . the repatriation of non-u.s. earnings may have adverse tax consequences as we may be required to pay and record income tax expense on those funds to the extent they were previously considered permanently reinvested . as of december 31 , 2016 , we could access all cash held by our foreign subsidiaries without incurring significant additional expense . 42 the net increase in cash and cash equivalents and short-term investments of $ 14.3 million as compared to january 2 , 2016 , was primarily the result of $ 41.7 million of cash provided by operations and $ 2.0 million in proceeds received from the sale of the qterics business unit , offset by $ 25.8 million of cash used in capital expenditures and payment for software licenses and $ 5.2 million of cash used in the repayment of debt . accounts receivable , net replace_table_token_20_th accounts receivable , net increased $ 11.2 million or 13 % as of december 31 , 2016 compared to january 2 , 2016 , due to an increase in shipments to certain distributors at the end of the current fiscal year as compared to the end of the prior fiscal year , partially offset by decreases in hdmi royalty audit settlements and ip license billings . overall days sales outstanding at december 31 , 2016 was 77 , a decrease of 3 days from 80 days at january 2 , 2016 . days sales outstanding at december 31 , 2016 related to product revenue was 75 , an increase of 5 days from 70 days at january 2 , 2016 .
| 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. |
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 cash and cash equivalents and short-term marketable securities replace_table_token_19_th as of december 31 , 2016 , we had total cash and cash equivalents and short-term marketable securities of $ 116.9 million , of which approximately $ 65.9 million in cash and cash equivalents was held by our foreign subsidiaries . we manage our global cash requirements considering ( i ) available funds among the subsidiaries through which we conduct business , ( ii ) the geographic location of our liquidity needs , and ( iii ) the cost to access international cash balances . the repatriation of non-u.s. earnings may have adverse tax consequences as we may be required to pay and record income tax expense on those funds to the extent they were previously considered permanently reinvested . as of december 31 , 2016 , we could access all cash held by our foreign subsidiaries without incurring significant additional expense . 42 the net increase in cash and cash equivalents and short-term investments of $ 14.3 million as compared to january 2 , 2016 , was primarily the result of $ 41.7 million of cash provided by operations and $ 2.0 million in proceeds received from the sale of the qterics business unit , offset by $ 25.8 million of cash used in capital expenditures and payment for software licenses and $ 5.2 million of cash used in the repayment of debt . accounts receivable , net replace_table_token_20_th accounts receivable , net increased $ 11.2 million or 13 % as of december 31 , 2016 compared to january 2 , 2016 , due to an increase in shipments to certain distributors at the end of the current fiscal year as compared to the end of the prior fiscal year , partially offset by decreases in hdmi royalty audit settlements and ip license billings . overall days sales outstanding at december 31 , 2016 was 77 , a decrease of 3 days from 80 days at january 2 , 2016 . days sales outstanding at december 31 , 2016 related to product revenue was 75 , an increase of 5 days from 70 days at january 2 , 2016 .
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Suspicious Activity Report : use of estimates the preparation of financial statements in conformity with u.s. generally accepted accounting principles ( `` u.s. gaap `` ) requires management to make estimates and assumptions that affect the reported amounts and classification of assets , such as marketable securities , accounts receivable , inventory , goodwill ( including the assessment of reporting unit ) , intangible assets , current and deferred income taxes , accrued liabilities ( including restructuring charges and bonus arrangements ) , deferred income and allowances on sales to sell-through distributors , disclosure of contingent assets and liabilities at the date of the financial statements , amounts used in acquisition valuations and purchase accounting , and the reported amounts of product revenue , licensing and services revenue , and expenses during the fiscal periods presented . actual results could differ from those estimates . revenue recognition and deferred income product revenue we sell our products directly to end customers , through a network of independent manufacturers ' representatives , and indirectly through a network of independent sell-in and sell-through distributors . distributors provide periodic data regarding the product , price , quantity , and end customer when products are resold , as well as the quantities of our products they still have in stock . 30 revenue from sales to original equipment manufacturers ( `` oems `` ) and sell-in distributors is generally recognized upon shipment . reserves for sell-in stock rotations , where applicable , are estimated based primarily on historical experience and provided for at the time of shipment . revenue from sales by our sell-through distributors is recognized at the time of reported resale . under both types of revenue recognition , persuasive evidence of an arrangement exists , the price is fixed or determinable , title has transferred , collection of resulting receivables is reasonably assured , and there are no remaining customer acceptance requirements and no remaining significant performance obligations . orders from our sell-through distributors are initially recorded at published list prices ; however , for a majority of our sales , the final selling price is determined at the time of resale and in accordance with a distributor price agreement . for this reason , we do not recognize revenue until products are resold by sell-through distributors to an end customer . in certain circumstances , we allow sell-through distributors to return unsold products . at times , we protect our sell-through distributors against reductions in published list prices . at the time of shipment to sell-through distributors , we ( a ) record accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered , ( b ) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor , and ( c ) record deferred revenue and deferred cost of sales in deferred income and allowances on sales to sell-through distributors in the liability section of our consolidated balance sheets . revenue and cost of sales to sell-through distributors are deferred until either the product is resold by the distributor or , in certain cases , return privileges terminate , at which time revenue and cost of products sold are reflected in net ( loss ) income , and accounts receivable , net are adjusted to reflect the final selling price . we use estimates and apply judgment to reconcile sell-through distributors ' inventories . errors in our estimates or judgments could result in inaccurate reporting of our revenue , cost of products sold , deferred income and allowances on sales to sell-through distributors , and net ( loss ) income . licensing and services revenue our licensing and services revenue is comprised of revenue from our ip core licensing activity , patent monetization activities , and royalty and adopter fee revenue from our standards activities . these activities are complementary to our product sales and help us monetize our ip and accelerate market adoption curves associated with our technology and standards . from time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions . such licensing agreements may include upfront license fees and ongoing royalties . the contractual terms of the agreements generally provide for payments of upfront license fees and or royalties over an extended period of time . revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met , while revenue from royalties is recognized when reported to us by customers . we enter into ip licensing agreements that generally provide licensees the right to incorporate our ip components into their products pursuant to terms and conditions that vary by licensee . revenue earned under these agreements is classified as licensing and services revenue . our ip licensing agreements generally include multiple elements , which may include one or more off-the-shelf or customized ip licenses bundled with support services covering a fixed period of time , generally one year . if the different elements of a multiple-element arrangement qualify as separate units of accounting , we allocate the total arrangement consideration to each element based on relative selling price . amounts allocated to off-the-shelf ip licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met . amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period , generally one year . certain licensing agreements provide for royalty payments based on agreed-upon royalty rates , which may be fixed or variable depending on the terms of the agreement . the amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the reported number of units shipped by the customer . story_separator_special_tag for fiscal 2015 , communications and computing end market revenue decreased 21 % primarily driven by a decrease in demand relative to fiscal 2014 from communications customers supporting 4g-lte infrastructure build out in china as that program returned to more normal volumes . mobile and consumer end market revenue increased 1 % in fiscal 2016 , after increasing 37 % in fiscal 2015. mobile and consumer end market revenue increased in fiscal 2016 primarily due to a significant increase in new programmable production volume for a major mobile handset provider offset by a nearly equal decline in assp shipments related to high-definition television ( `` hdtv `` ) and mobile handsets . mobile and consumer end market revenue increased in fiscal 2015 primarily due to the acquisition of silicon image , offset by a 60 % decline in our fpga product revenue due primarily to lower demand at a major oem for certain of our ice40 products . the products acquired were concentrated in the dtv , home theater , and mobile communications markets . for fiscal 2016 , industrial and automotive end market revenue increased 41 % when compared to fiscal 2015. this is primarily due to strength in programmable products revenue resulting from line item reduction and complex programmable logic device ( `` cpld `` ) conversions affecting both the americas and europe . for fiscal 2015 , industrial and automotive end market revenue increased 7 % when compared to fiscal 2014 primarily due to industrial and automotive end market growth in asia and the acquisition of silicon image . licensing and services revenue decreased by 1 % in fiscal 2016 primarily due to slightly reduced adopter fees and audit revenues at licensed end customers . licensing and services revenue was first recognized in fiscal 2015 following the acquisition of silicon image in march 2015. previously , we did not have licensing and services revenue . revenue from this end market is expected to fluctuate , sometimes significantly , from period to period as a result of the timing of completion of ip license arrangements , ip sales , patent sales , and settlement of royalty audits . as a result of the amended model for sharing revenue and the appointment of a new independent agent for the hdmi consortium , we will be entitled to a reduced share of adopter fees paid by parties adopting the hdmi standard in 2017 . 35 revenue by geography we assign revenue to geographies based on customer ship-to address at the point where revenue is recognized . in the case of sell-in distributors and oem customers , revenue is typically recognized , and geography is assigned , when products are shipped to our distributor or oem customer . in the case of sell-through distributors , revenue is recognized when resale to the end customer occurs and geography is assigned based on the end customer location on the resale reports provided by the distributor . both foreign and domestic sales are denominated in u.s. dollars , with the exception of certain historical sales in japan , which were denominated in yen . the composition of our revenue by geography , based on ship-to location , for fiscal years 2016 , 2015 and 2014 was as follows : replace_table_token_6_th revenue in asia decreased 1 % in fiscal 2016 and increased 16 % in fiscal 2015. in fiscal 2016 , revenue decreased in asia primarily due to declines in hdtv and assp revenue , although these were substantially offset by increases in revenue from programmable logic products in the mobile and consumer end market . in fiscal 2015 , revenue growth in asia was due primarily to the acquisition of silicon image , a high concentration of whose products are in the consumer market with the end products they serve heavily manufactured in asia . we believe the asia pacific region will remain the primary source of our revenue due to relatively more favorable business conditions in asia and a continuing trend towards the migration of manufacturing by north american and european customers to the asia pacific region . revenue in europe increased 8 % in fiscal 2016 primarily due to line item reduction and cpld conversions . revenue in europe decreased 6 % in fiscal 2015 primarily due to the completion of a specific program at a large communications customer and a decrease in volume at an industrial customer . revenue from the americas increased 48 % in fiscal 2016 primarily due to line item reduction and cpld conversions . americas revenue increased 4 % in fiscal 2015 due to the addition of silicon image which contributed revenue both in devices and licensing and services enough to offset a decline in programmable products revenue in the region . revenue from foreign sales as a percentage of total revenue was 88 % , 92 % , and 92 % for fiscal 2016 , 2015 and 2014 , respectively . revenue from end customers our top five end customers constituted approximately 27 % in fiscal 2016 , compared to approximately 32 % and 45 % in fiscal years 2015 and 2014 , respectively , primarily due to a more diverse customer base . during fiscal years 2016 and 2015 , no end customer accounted for more than 10 % of total revenue . our largest end customer in fiscal 2016 accounted for approximately 9.9 % of total revenue , while our largest end customer in fiscal 2015 accounted for approximately 9.3 % of total revenue . in fiscal 2014 , our two largest end customers accounted for 19.1 % and 12.3 % , respectively , of total revenue . no other customers accounted for more than 10 % of total revenue during these periods . revenue by distributors sales through distributors have historically accounted for a significant portion of our total revenue . revenue attributable to resale of products by our primary sell-through distributors for fiscal years 2016 , 2015 and 2014 was as follows
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1,003 | 30 management has discussed the development and selection of these critical accounting estimates with the audit committee of the board of directors and the audit committee has reviewed the foregoing disclosure . in addition , there are other items within our financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could have a material impact on the financial statements . the company recognizes revenues in accordance with u.s. gaap . revenues for product shipments are realizable when we have persuasive evidence of a sales arrangement , the product has been shipped or delivered , the sale price is fixed or determinable and collectability is reasonably assured . title and risk of loss passes from the company to its customer at the time of shipment in most cases with the exception of certain customers . for these customers title does not pass and revenue is not recognized until the customer has received the product at its physical location . we establish an allowance for doubtful accounts and warranty reserves based on historical experience and believe the collection of revenues , net of these reserves , is reasonably assured . our allowance for doubtful accounts and warranty reserve balances at june 30 , 2012 was approximately $ 1.5 million and $ 1.2 million , respectively . our reserve estimates have historically been proven to be materially correct based upon actual charges incurred . the company 's revenue recognition policy is consistently applied across the company 's segments , product lines and geographical locations . further , we do not have post shipment obligations such as training or installation , customer acceptance provisions , credits and discounts , rebates and price protection or other similar privileges . our distributors and agents are not granted price protection . our distributors and agents , who comprise less than 10 % of consolidated revenue , have no additional product return rights beyond the right to return defective products that are covered by our warranty policy . we believe our revenue recognition practices are consistent with staff accounting bulletin ( sab ) 104 and that we have adequately considered the requirements of accounting standards codification ( asc ) 605 revenue recognition . revenues generated from transactions other than product shipments are contract-related and have historically accounted for less than 5 % of the company 's consolidated revenues . the company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues , net of these reserves , is reasonably assured . the allowance for doubtful accounts is an estimate for potential non-collection of accounts receivable based on historical experience . the company has not experienced a non-collection of accounts receivable materially affecting its financial position or results of operations as of and for the fiscal years ended june 30 , 2012 , 2011 and 2010. if the financial condition of the company 's customers were to deteriorate causing an impairment of their ability to make payments , additional provisions for bad debts could be required in future periods . the company has one customer that represents 12 % of total accounts receivable as of june 30 , 2012. the company records a warranty reserve as a charge against earnings based on a historical percentage of revenues utilizing actual returns over a period that approximates historical warranty experience . if actual returns in the future are not consistent with the historical data used to calculate these estimates , additional warranty reserves could be required . the company records a slow moving inventory reserve as a charge against earnings for all products on hand for more than twelve months to eighteen months depending on the products that have not been sold to customers or can not be further manufactured for sale to alternative customers . an additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above . if actual market conditions are less favorable than projected , additional inventory reserves may be required . the company tests goodwill and indefinite-lived intangible assets on an annual basis for impairment or when events or changes in circumstances indicate that goodwill or indefinite-lived intangible assets might be impaired . other intangible assets are amortized over their estimated useful lives . the determination of the estimated useful 31 lives of other intangible assets and whether goodwill or indefinite-lived intangibles are impaired involves judgments based upon long-term projections of future performance . estimates of fair value are based on our projection of revenues , operating costs and cash flows of each reporting unit considering historical and anticipated results and general economic and market conditions . the fair values of the reporting units are determined using a discounted cash flow analysis based on historical and projected financial information as well as market analysis . the carrying value of goodwill at june 30 , 2012 , 2011 and 2010 was $ 80.7 million , $ 64.3 million and $ 56.1 million , respectively . the annual goodwill impairment analysis considers the financial projections of the reporting unit based on the most recently completed budgeting and long-term strategic planning processes and also considers the current financial performance compared to the prior projections of the reporting unit . changes in our financial performance , judgments and projections could result in an impairment of goodwill or indefinite-lived intangible assets . as a result of the purchase price allocations from our prior acquisitions and due to our decentralized structure , our goodwill is included in multiple reporting units . due to the cyclical nature of our business , and the other factors described in the section on risk factors set forth in item 1a of this annual report on form 10-k , the profitability of our individual reporting units may periodically suffer from downturns in customer demand , operational challenges and other factors . story_separator_special_tag vloc was negatively impacted by the declining shipment volumes of its military related products while photop experienced a decline in gross margin from unfavorable product mix as optical communication sales with higher margin product profiles eased somewhat during fiscal 2012. in addition , photop and aegis continue to contribute resources to invest in internal research and development activities in high-speed products specific to the optical communication market . 36 military & materials ( millions ) replace_table_token_8_th the company 's military & materials segment includes the combined operations of exotic electro-optics ( eeo ) , prm , and mla . bookings for the year ended june 30 , 2012 for military & materials increased 1 % to $ 92.9 million , compared to $ 92.0 million from the prior fiscal year , primarily as a result of reduced bookings at prm offset by increased bookings at eeo and mla . the decline in bookings at prm was most prevalent during the latter half of fiscal 2012 and was the result of softening demand in the photovoltaic market which lowered order intake volumes for tellurium product . the increase in bookings within the segment was attributable to increased orders at eeo for its sapphire military business and other military contracts as well as a full year inclusion of mla in fiscal 2012. revenues for the year ended june 30 , 2012 for military & materials increased 17 % to $ 97.4 million , compared to $ 83.4 million from the prior fiscal year . at prm , higher shipment volume and pricing of selenium for the majority of fiscal year 2012 was the major factor contributing the increased revenue in fiscal 2012. in addition , a full year inclusion of mla and increased shipment volumes related to military orders for the sapphire product line at eeo contributed to the increased revenues . segment earnings for the year ended june 30 , 2012 for military & materials was $ 1.9 million , compared to segment earnings of $ 15.3 million for the prior fiscal year . the decrease in segment earnings for the year ended june 30 , 2012 was attributable to prm as the global index price of tellurium declined through june 30 , 2012. the weakening demand in the photovoltaic market , increased competition and excess capacity has put significant downward pressure on the pricing of such material . in addition , prm was impacted by falling prices of selenium during the last quarter of fiscal 2012 caused by weak demand in chinese metallurgical applications . during the year ended june 30 , 2012 , prm incurred losses as a result of inventory write-downs of tellurium and selenium of $ 8.7 million as well as compressed gross margins from products sold that were previously purchased at higher raw material index prices . advanced products group ( millions ) replace_table_token_9_th the company 's advanced products group ( formerly , compound semiconductor group ) includes the combined operations of marlow , wbg and worldwide materials group ( wmg ) . bookings for the year ended june 30 , 2012 for the advanced products group decreased 20 % to $ 67.4 million , compared to $ 84.8 million from the prior fiscal year , and was attributable to both marlow and wbg . at 37 marlow , contributing factors to the bookings decrease were the reduction in gesture recognition product demand as well as an overall softening in the majority of their product markets , such as telecommunications , defense , industrial and medical . at wbg , the timing of receipt of an annual blanket order negatively impacted fiscal 2012 bookings . revenues for the year ended june 30 , 2012 for the advanced products group decreased 5 % to $ 74.6 million , compared to $ 78.7 million for the prior fiscal year . the decrease in revenues was primarily due to lower shipment volumes of the gesture recognition and telecommunication products at marlow . the decline in gesture recognition shipment volumes was primarily attributed to weakening demand for this product line . increased revenue at wbg resulting from higher shipment volumes of large diameter silicon carbide substrates at the segment 's wbg business unit helped offset a portion of the decreases in gesture recognition shipments at marlow . segment earnings for the year ended june 30 , 2012 decreased 36 % to $ 8.4 million , compared to $ 13.2 million for the prior fiscal year . the decrease in segment earnings was primarily due to lower volume of segment revenues as well as a decline in gross margin at marlow resulting from unfavorable product mix as sales with higher margin profiles specific to gesture recognition and telecommunications declined during fiscal 2012. fiscal year 2011 compared to fiscal year 2010 overview ( millions except per share data ) replace_table_token_10_th the above results include mla since the date of acquisition for the year ended june 30 , 2011 only , as this acquisition was completed on december 6 , 2010. the above results for the year ending june 30 , 2010 include only six months of activity for photop , as this acquisition was completed on january 4 , 2010. bookings . bookings increased 34 % to $ 520.2 million in fiscal year 2011 compared to $ 387.6 million in fiscal year 2010. included in bookings for the year ended june 30 , 2011 and 2010 were approximately $ 118.4 million and $ 59.4 million , respectively , of bookings from photop . excluding photop , the majority of the company 's business units realized higher levels of bookings in fiscal year 2011 compared to fiscal year 2010. the company began seeing improved customer demand during the second half of fiscal year 2010 as worldwide economies began to rebound from their lower levels in the later part of fiscal year 2008. this trend continued for the full year of fiscal 2011. in addition to the bookings recorded by photop , the general
| net cash provided by operating activities : net cash provided by operating activities was $ 88.1 million and $ 73.5 million for the fiscal years ended june 30 , 2012 and 2011 , respectively . despite the lower earnings in fiscal 2012 when compared to fiscal 2011 , cash flows from operating activities increased primarily due to an increased focus on working capital management as well as higher non-cash charges for depreciation , amortization and share-based compensation expense . net cash provided by operating activities was $ 73.5 million and $ 72.4 million for the fiscal years ended june 30 , 2011 and 2010 , respectively . despite the higher net earnings and non-cash charges in fiscal year 2011 , cash flows from operating activities remained consistent with fiscal year 2010 primarily due to increased working capital requirements necessary to support the current level of business activity . specifically , the company increased its inventory levels as a result of a planned inventory build to support the level of demand for the company 's products as well as higher prices of selenium and tellurium . net cash provided by ( used in ) investing activities : net cash used in investing activities was $ 84.9 million and $ 52.5 million for the fiscal years ended june 30 , 2012 and 2011 , respectively . the majority of the increase in cash used in investing activities during fiscal 2012 was the result of the acquisition of aegis in july 2011 . 43 net cash used in investing activities was $ 52.5 million and $ 65.1 million for the fiscal years ended june 30 , 2011 and 2010 , 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. |
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.
```net cash provided by operating activities : net cash provided by operating activities was $ 88.1 million and $ 73.5 million for the fiscal years ended june 30 , 2012 and 2011 , respectively . despite the lower earnings in fiscal 2012 when compared to fiscal 2011 , cash flows from operating activities increased primarily due to an increased focus on working capital management as well as higher non-cash charges for depreciation , amortization and share-based compensation expense . net cash provided by operating activities was $ 73.5 million and $ 72.4 million for the fiscal years ended june 30 , 2011 and 2010 , respectively . despite the higher net earnings and non-cash charges in fiscal year 2011 , cash flows from operating activities remained consistent with fiscal year 2010 primarily due to increased working capital requirements necessary to support the current level of business activity . specifically , the company increased its inventory levels as a result of a planned inventory build to support the level of demand for the company 's products as well as higher prices of selenium and tellurium . net cash provided by ( used in ) investing activities : net cash used in investing activities was $ 84.9 million and $ 52.5 million for the fiscal years ended june 30 , 2012 and 2011 , respectively . the majority of the increase in cash used in investing activities during fiscal 2012 was the result of the acquisition of aegis in july 2011 . 43 net cash used in investing activities was $ 52.5 million and $ 65.1 million for the fiscal years ended june 30 , 2011 and 2010 , respectively .
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Suspicious Activity Report : 30 management has discussed the development and selection of these critical accounting estimates with the audit committee of the board of directors and the audit committee has reviewed the foregoing disclosure . in addition , there are other items within our financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could have a material impact on the financial statements . the company recognizes revenues in accordance with u.s. gaap . revenues for product shipments are realizable when we have persuasive evidence of a sales arrangement , the product has been shipped or delivered , the sale price is fixed or determinable and collectability is reasonably assured . title and risk of loss passes from the company to its customer at the time of shipment in most cases with the exception of certain customers . for these customers title does not pass and revenue is not recognized until the customer has received the product at its physical location . we establish an allowance for doubtful accounts and warranty reserves based on historical experience and believe the collection of revenues , net of these reserves , is reasonably assured . our allowance for doubtful accounts and warranty reserve balances at june 30 , 2012 was approximately $ 1.5 million and $ 1.2 million , respectively . our reserve estimates have historically been proven to be materially correct based upon actual charges incurred . the company 's revenue recognition policy is consistently applied across the company 's segments , product lines and geographical locations . further , we do not have post shipment obligations such as training or installation , customer acceptance provisions , credits and discounts , rebates and price protection or other similar privileges . our distributors and agents are not granted price protection . our distributors and agents , who comprise less than 10 % of consolidated revenue , have no additional product return rights beyond the right to return defective products that are covered by our warranty policy . we believe our revenue recognition practices are consistent with staff accounting bulletin ( sab ) 104 and that we have adequately considered the requirements of accounting standards codification ( asc ) 605 revenue recognition . revenues generated from transactions other than product shipments are contract-related and have historically accounted for less than 5 % of the company 's consolidated revenues . the company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues , net of these reserves , is reasonably assured . the allowance for doubtful accounts is an estimate for potential non-collection of accounts receivable based on historical experience . the company has not experienced a non-collection of accounts receivable materially affecting its financial position or results of operations as of and for the fiscal years ended june 30 , 2012 , 2011 and 2010. if the financial condition of the company 's customers were to deteriorate causing an impairment of their ability to make payments , additional provisions for bad debts could be required in future periods . the company has one customer that represents 12 % of total accounts receivable as of june 30 , 2012. the company records a warranty reserve as a charge against earnings based on a historical percentage of revenues utilizing actual returns over a period that approximates historical warranty experience . if actual returns in the future are not consistent with the historical data used to calculate these estimates , additional warranty reserves could be required . the company records a slow moving inventory reserve as a charge against earnings for all products on hand for more than twelve months to eighteen months depending on the products that have not been sold to customers or can not be further manufactured for sale to alternative customers . an additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above . if actual market conditions are less favorable than projected , additional inventory reserves may be required . the company tests goodwill and indefinite-lived intangible assets on an annual basis for impairment or when events or changes in circumstances indicate that goodwill or indefinite-lived intangible assets might be impaired . other intangible assets are amortized over their estimated useful lives . the determination of the estimated useful 31 lives of other intangible assets and whether goodwill or indefinite-lived intangibles are impaired involves judgments based upon long-term projections of future performance . estimates of fair value are based on our projection of revenues , operating costs and cash flows of each reporting unit considering historical and anticipated results and general economic and market conditions . the fair values of the reporting units are determined using a discounted cash flow analysis based on historical and projected financial information as well as market analysis . the carrying value of goodwill at june 30 , 2012 , 2011 and 2010 was $ 80.7 million , $ 64.3 million and $ 56.1 million , respectively . the annual goodwill impairment analysis considers the financial projections of the reporting unit based on the most recently completed budgeting and long-term strategic planning processes and also considers the current financial performance compared to the prior projections of the reporting unit . changes in our financial performance , judgments and projections could result in an impairment of goodwill or indefinite-lived intangible assets . as a result of the purchase price allocations from our prior acquisitions and due to our decentralized structure , our goodwill is included in multiple reporting units . due to the cyclical nature of our business , and the other factors described in the section on risk factors set forth in item 1a of this annual report on form 10-k , the profitability of our individual reporting units may periodically suffer from downturns in customer demand , operational challenges and other factors . story_separator_special_tag vloc was negatively impacted by the declining shipment volumes of its military related products while photop experienced a decline in gross margin from unfavorable product mix as optical communication sales with higher margin product profiles eased somewhat during fiscal 2012. in addition , photop and aegis continue to contribute resources to invest in internal research and development activities in high-speed products specific to the optical communication market . 36 military & materials ( millions ) replace_table_token_8_th the company 's military & materials segment includes the combined operations of exotic electro-optics ( eeo ) , prm , and mla . bookings for the year ended june 30 , 2012 for military & materials increased 1 % to $ 92.9 million , compared to $ 92.0 million from the prior fiscal year , primarily as a result of reduced bookings at prm offset by increased bookings at eeo and mla . the decline in bookings at prm was most prevalent during the latter half of fiscal 2012 and was the result of softening demand in the photovoltaic market which lowered order intake volumes for tellurium product . the increase in bookings within the segment was attributable to increased orders at eeo for its sapphire military business and other military contracts as well as a full year inclusion of mla in fiscal 2012. revenues for the year ended june 30 , 2012 for military & materials increased 17 % to $ 97.4 million , compared to $ 83.4 million from the prior fiscal year . at prm , higher shipment volume and pricing of selenium for the majority of fiscal year 2012 was the major factor contributing the increased revenue in fiscal 2012. in addition , a full year inclusion of mla and increased shipment volumes related to military orders for the sapphire product line at eeo contributed to the increased revenues . segment earnings for the year ended june 30 , 2012 for military & materials was $ 1.9 million , compared to segment earnings of $ 15.3 million for the prior fiscal year . the decrease in segment earnings for the year ended june 30 , 2012 was attributable to prm as the global index price of tellurium declined through june 30 , 2012. the weakening demand in the photovoltaic market , increased competition and excess capacity has put significant downward pressure on the pricing of such material . in addition , prm was impacted by falling prices of selenium during the last quarter of fiscal 2012 caused by weak demand in chinese metallurgical applications . during the year ended june 30 , 2012 , prm incurred losses as a result of inventory write-downs of tellurium and selenium of $ 8.7 million as well as compressed gross margins from products sold that were previously purchased at higher raw material index prices . advanced products group ( millions ) replace_table_token_9_th the company 's advanced products group ( formerly , compound semiconductor group ) includes the combined operations of marlow , wbg and worldwide materials group ( wmg ) . bookings for the year ended june 30 , 2012 for the advanced products group decreased 20 % to $ 67.4 million , compared to $ 84.8 million from the prior fiscal year , and was attributable to both marlow and wbg . at 37 marlow , contributing factors to the bookings decrease were the reduction in gesture recognition product demand as well as an overall softening in the majority of their product markets , such as telecommunications , defense , industrial and medical . at wbg , the timing of receipt of an annual blanket order negatively impacted fiscal 2012 bookings . revenues for the year ended june 30 , 2012 for the advanced products group decreased 5 % to $ 74.6 million , compared to $ 78.7 million for the prior fiscal year . the decrease in revenues was primarily due to lower shipment volumes of the gesture recognition and telecommunication products at marlow . the decline in gesture recognition shipment volumes was primarily attributed to weakening demand for this product line . increased revenue at wbg resulting from higher shipment volumes of large diameter silicon carbide substrates at the segment 's wbg business unit helped offset a portion of the decreases in gesture recognition shipments at marlow . segment earnings for the year ended june 30 , 2012 decreased 36 % to $ 8.4 million , compared to $ 13.2 million for the prior fiscal year . the decrease in segment earnings was primarily due to lower volume of segment revenues as well as a decline in gross margin at marlow resulting from unfavorable product mix as sales with higher margin profiles specific to gesture recognition and telecommunications declined during fiscal 2012. fiscal year 2011 compared to fiscal year 2010 overview ( millions except per share data ) replace_table_token_10_th the above results include mla since the date of acquisition for the year ended june 30 , 2011 only , as this acquisition was completed on december 6 , 2010. the above results for the year ending june 30 , 2010 include only six months of activity for photop , as this acquisition was completed on january 4 , 2010. bookings . bookings increased 34 % to $ 520.2 million in fiscal year 2011 compared to $ 387.6 million in fiscal year 2010. included in bookings for the year ended june 30 , 2011 and 2010 were approximately $ 118.4 million and $ 59.4 million , respectively , of bookings from photop . excluding photop , the majority of the company 's business units realized higher levels of bookings in fiscal year 2011 compared to fiscal year 2010. the company began seeing improved customer demand during the second half of fiscal year 2010 as worldwide economies began to rebound from their lower levels in the later part of fiscal year 2008. this trend continued for the full year of fiscal 2011. in addition to the bookings recorded by photop , the general
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1,004 | we plan to submit data from the ongoing 48 femoral nerve block study to demonstrate efficacy and safety , as well as safety data from the intercostal nerve block study , for an snda , which is anticipated in the second quarter of 2014. following a pilot program , effective october 1 , 2013 , we appointed crosslink bioscience , llc , or crosslink , for a term of five years as the exclusive third-party distributor to promote and sell exparel for orthopedic and spine surgeries in the united states , with the exception of certain geographical areas and accounts . we continued the expansion of our manufacturing facility located in san diego , california , and we anticipate receiving fda approval for our newly installed manufacturing facility , referred to as suite c , in the second quarter of 2014. combined with our current facility , we expect this facility to significantly increase our manufacturing capacity and ability to meet the growing demand for exparel . research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , driven by , among other things , an increase in clinical development expenses relating to our nerve block trials , described above . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications , including nerve block and the pediatric trials required by the fda for exparel . financial operations overview revenue our net product sales are derived from exparel , which we commercially launched in april 2012 in the united states , and depocyt ( e ) , which we sell to commercial partners in the united states and europe . we ship exparel directly to the end user based on orders placed to wholesalers or directly to us . no product is held by wholesalers . we reported exparel product sales of $ 76.2 million for the year ended december 31 , 2013 , which is net of allowances for sales returns , prompt payment discounts , volume rebates and distribution service fees payable to wholesalers . depocyt ( e ) net product sales of $ 5.7 million for the year ended december 31 , 2013 were derived from a contractual price on shipments to our commercial partners . we also generate collaborative licensing and development revenue from our collaborations with third parties who seek to use our depofoam technology to develop extended release formulations of their products and product candidates . royalties are recognized as the product is sold by our commercial partners and are calculated as a percentage of the net selling price , which is typically net of discounts , returns and allowances incurred by our commercial partners , and net of the agreed upon supply price . cost of revenues our cost of revenues consists of the costs associated with our products sold and research and development services provided to our collaboration partners and include the following : manufacturing overhead and fixed costs associated with running two current good manufacturing practices , or cgmp , manufacturing facilities , including allocated rent , utilities , insurance , depreciation and salaries and related costs of personnel , including stock-based compensation , involved with our manufacturing activities ; cost of active pharmaceutical ingredients ; royalties due to third parties on our revenues ; packaging , testing and freight ; amortization of our intangible assets ; regulatory and pharmacovigilance costs ; and cost associated with excess manufacturing capacity and any non-routine shutdown of our facilities , which are charged to cost of revenue as incurred . our cost of revenues increased significantly following fda approval of exparel in october 2011 , when we shifted exparel manufacturing expenses on a prospective basis from research and development to cost of revenues . 49 research and development expenses our historical research and development expenses primarily consist of expenses incurred in developing , testing , manufacturing and seeking regulatory approval of exparel , including : expenses associated with regulatory submissions , clinical trials and manufacturing , including additional expenses to prepare for the commercial manufacture of exparel prior to fda approval ; payments to third-party contract research organizations , contract laboratories and independent contractors ; payments made to consultants who perform research and development on our behalf and assist us in the preparation of regulatory filings ; personnel related expenses , such as salaries , benefits , travel and other related expenses , including stock-based compensation ; payments made to third-party investigators who perform research and development on our behalf and clinical sites where such research and development is conducted ; and allocated rent and utilities , depreciation and amortization , and other related expenses . clinical trial expenses for our product candidates are a significant component of our current research and development expenses . product candidates in later stage clinical development generally have higher research and development expenses than those in earlier stages of development , primarily due to the increased size and duration of the clinical trials . we coordinate clinical trials through a number of contracted investigational sites and recognize the associated expense based on a number of factors , including actual and estimated subject enrollment and visits , direct pass-through costs and other clinical site fees . from the acquisition date through december 31 , 2013 , we incurred research and development expenses of $ 145.2 million , which has primarily been for exparel . we have also incurred expenses for our product candidates , including deponsaid and depomethotrexate . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications including nerve block and the pediatric trials required by the fda for exparel . story_separator_special_tag depocyt ( e ) product sales increased $ 2.2 million in the year ended december 31 , 2013 , as compared to 2012 , driven by the lifting of a selective recall recommended by the european medicines agency where depocyt ( e ) was not considered to be an `` essential medicinal product , `` which resulted in decreased sales in 2012. the decrease in collaborative licensing and development revenue of $ 17.4 million , or 95 % , in the year ended december 31 , 2013 , as compared to 2012 , was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements in 2012 , which included ( i ) $ 11.6 million for ekr therapeutics , inc , or ekr , ( ii ) $ 4.0 million for novo nordisk as , or novo , and ( iii ) $ 1.8 million for flynn pharmaceuticals limited , or flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 , as compared to 2011 . net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 , as compared to 2011 . in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012 . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by the selective recall of depocyt ( e ) in europe . the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 , as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo and ( iii ) $ 1.5 million for flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012 . royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 , as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . 54 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_8_th total cost of revenues increased $ 22.6 million , or 70 % in the year ended december 31 , 2013 as compared to 2012 . cost of goods sold increased primarily due to a higher volume of exparel sales . the improvement in cost of goods sold as a percentage of net product sales during the year ended december 31 , 2013 as compared to 2012 was driven by ( i ) increased utilization of our facility to manufacture exparel , ( ii ) a decrease in consulting costs , ( iii ) the significant increase in exparel sales to offset the substantial level of fixed cost infrastructure for operating two cgmp facilities and ( iv ) the resumption of production of depocyt ( e ) . this improvement was partially offset by the impact of producing suite c batches in preparation for fda approval submission , which can not be sold for commercial use and resulted in $ 3.7 million of expense during the year ended december 31 , 2013. there was no cost of collaborative licensing and development revenue for the year ended december 31 , 2013 due to the termination of services performed under a licensing agreement with novo in 2012. total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011 . cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken in response to the report issued by the european medicines agency and ( iv ) exparel production costs , which were previously expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the agreement with novo for which we received a notice of termination in june 2012. research and development expenses the following table provides information regarding research and development expenses during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_9_th research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , primarily due to the following : salaries and benefits increased by $ 3.6 million driven by a $ 3.2
| liquidity and capital resources since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , and revenues . we are highly dependent on the commercial success of exparel , which we launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2013 , we had an accumulated deficit of $ 296.4 million , cash and cash equivalents , restricted cash and short-term investments of $ 73.8 million and a working capital deficit of $ 15.2 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 ( in thousands ) : replace_table_token_13_th operating activities for the years ended december 31 , 2013 , 2012 and 2011 , our net cash used in operating activities was $ 43.2 million , $ 70.1 million and $ 31.0 million , 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. |
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 since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , and revenues . we are highly dependent on the commercial success of exparel , which we launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2013 , we had an accumulated deficit of $ 296.4 million , cash and cash equivalents , restricted cash and short-term investments of $ 73.8 million and a working capital deficit of $ 15.2 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 ( in thousands ) : replace_table_token_13_th operating activities for the years ended december 31 , 2013 , 2012 and 2011 , our net cash used in operating activities was $ 43.2 million , $ 70.1 million and $ 31.0 million , respectively .
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Suspicious Activity Report : we plan to submit data from the ongoing 48 femoral nerve block study to demonstrate efficacy and safety , as well as safety data from the intercostal nerve block study , for an snda , which is anticipated in the second quarter of 2014. following a pilot program , effective october 1 , 2013 , we appointed crosslink bioscience , llc , or crosslink , for a term of five years as the exclusive third-party distributor to promote and sell exparel for orthopedic and spine surgeries in the united states , with the exception of certain geographical areas and accounts . we continued the expansion of our manufacturing facility located in san diego , california , and we anticipate receiving fda approval for our newly installed manufacturing facility , referred to as suite c , in the second quarter of 2014. combined with our current facility , we expect this facility to significantly increase our manufacturing capacity and ability to meet the growing demand for exparel . research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , driven by , among other things , an increase in clinical development expenses relating to our nerve block trials , described above . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications , including nerve block and the pediatric trials required by the fda for exparel . financial operations overview revenue our net product sales are derived from exparel , which we commercially launched in april 2012 in the united states , and depocyt ( e ) , which we sell to commercial partners in the united states and europe . we ship exparel directly to the end user based on orders placed to wholesalers or directly to us . no product is held by wholesalers . we reported exparel product sales of $ 76.2 million for the year ended december 31 , 2013 , which is net of allowances for sales returns , prompt payment discounts , volume rebates and distribution service fees payable to wholesalers . depocyt ( e ) net product sales of $ 5.7 million for the year ended december 31 , 2013 were derived from a contractual price on shipments to our commercial partners . we also generate collaborative licensing and development revenue from our collaborations with third parties who seek to use our depofoam technology to develop extended release formulations of their products and product candidates . royalties are recognized as the product is sold by our commercial partners and are calculated as a percentage of the net selling price , which is typically net of discounts , returns and allowances incurred by our commercial partners , and net of the agreed upon supply price . cost of revenues our cost of revenues consists of the costs associated with our products sold and research and development services provided to our collaboration partners and include the following : manufacturing overhead and fixed costs associated with running two current good manufacturing practices , or cgmp , manufacturing facilities , including allocated rent , utilities , insurance , depreciation and salaries and related costs of personnel , including stock-based compensation , involved with our manufacturing activities ; cost of active pharmaceutical ingredients ; royalties due to third parties on our revenues ; packaging , testing and freight ; amortization of our intangible assets ; regulatory and pharmacovigilance costs ; and cost associated with excess manufacturing capacity and any non-routine shutdown of our facilities , which are charged to cost of revenue as incurred . our cost of revenues increased significantly following fda approval of exparel in october 2011 , when we shifted exparel manufacturing expenses on a prospective basis from research and development to cost of revenues . 49 research and development expenses our historical research and development expenses primarily consist of expenses incurred in developing , testing , manufacturing and seeking regulatory approval of exparel , including : expenses associated with regulatory submissions , clinical trials and manufacturing , including additional expenses to prepare for the commercial manufacture of exparel prior to fda approval ; payments to third-party contract research organizations , contract laboratories and independent contractors ; payments made to consultants who perform research and development on our behalf and assist us in the preparation of regulatory filings ; personnel related expenses , such as salaries , benefits , travel and other related expenses , including stock-based compensation ; payments made to third-party investigators who perform research and development on our behalf and clinical sites where such research and development is conducted ; and allocated rent and utilities , depreciation and amortization , and other related expenses . clinical trial expenses for our product candidates are a significant component of our current research and development expenses . product candidates in later stage clinical development generally have higher research and development expenses than those in earlier stages of development , primarily due to the increased size and duration of the clinical trials . we coordinate clinical trials through a number of contracted investigational sites and recognize the associated expense based on a number of factors , including actual and estimated subject enrollment and visits , direct pass-through costs and other clinical site fees . from the acquisition date through december 31 , 2013 , we incurred research and development expenses of $ 145.2 million , which has primarily been for exparel . we have also incurred expenses for our product candidates , including deponsaid and depomethotrexate . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications including nerve block and the pediatric trials required by the fda for exparel . story_separator_special_tag depocyt ( e ) product sales increased $ 2.2 million in the year ended december 31 , 2013 , as compared to 2012 , driven by the lifting of a selective recall recommended by the european medicines agency where depocyt ( e ) was not considered to be an `` essential medicinal product , `` which resulted in decreased sales in 2012. the decrease in collaborative licensing and development revenue of $ 17.4 million , or 95 % , in the year ended december 31 , 2013 , as compared to 2012 , was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements in 2012 , which included ( i ) $ 11.6 million for ekr therapeutics , inc , or ekr , ( ii ) $ 4.0 million for novo nordisk as , or novo , and ( iii ) $ 1.8 million for flynn pharmaceuticals limited , or flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 , as compared to 2011 . net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 , as compared to 2011 . in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012 . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by the selective recall of depocyt ( e ) in europe . the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 , as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo and ( iii ) $ 1.5 million for flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012 . royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 , as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . 54 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_8_th total cost of revenues increased $ 22.6 million , or 70 % in the year ended december 31 , 2013 as compared to 2012 . cost of goods sold increased primarily due to a higher volume of exparel sales . the improvement in cost of goods sold as a percentage of net product sales during the year ended december 31 , 2013 as compared to 2012 was driven by ( i ) increased utilization of our facility to manufacture exparel , ( ii ) a decrease in consulting costs , ( iii ) the significant increase in exparel sales to offset the substantial level of fixed cost infrastructure for operating two cgmp facilities and ( iv ) the resumption of production of depocyt ( e ) . this improvement was partially offset by the impact of producing suite c batches in preparation for fda approval submission , which can not be sold for commercial use and resulted in $ 3.7 million of expense during the year ended december 31 , 2013. there was no cost of collaborative licensing and development revenue for the year ended december 31 , 2013 due to the termination of services performed under a licensing agreement with novo in 2012. total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011 . cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken in response to the report issued by the european medicines agency and ( iv ) exparel production costs , which were previously expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the agreement with novo for which we received a notice of termination in june 2012. research and development expenses the following table provides information regarding research and development expenses during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_9_th research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , primarily due to the following : salaries and benefits increased by $ 3.6 million driven by a $ 3.2
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1,005 | urban edge properties lp ( “ uelp ” or the “ operating partnership ” ) is a delaware limited partnership formed to serve as ue 's majority-owned partnership subsidiary and to own , through affiliates , all of our real estate properties and other assets . unless the context otherwise requires , references to “ we ” , “ us ” and “ our ” refer to urban edge properties and uelp and their consolidated entities/subsidiaries . the operating partnership 's capital includes general and common limited partnership interests in the operating partnership ( “ op units ” ) . as of december 31 , 2019 , urban edge owned approximately 95.4 % of the outstanding common op units with the remaining limited op units held by members of management , urban edge 's board of trustees and contributors of property interests acquired . urban edge serves as the sole general partner of the operating partnership . the third party unitholders have limited rights over the operating partnership such that they do not have characteristics of a controlling financial interest . as such , the operating partnership is considered a variable interest entity ( “ vie ” ) , and the company is the primary beneficiary that consolidates it . the company 's only investment is the operating partnership . the vie 's assets can be used for purposes other than the settlement of the vie 's obligations and the company 's partnership interest is considered a majority voting interest . as of december 31 , 2019 , our portfolio comprised 74 shopping centers , four malls and a warehouse park totaling approximately 15.2 million square feet . operating strategy . our operating strategy is to maximize the value of our existing assets through proactive management encompassing continuous asset evaluation for highest-and-best-use ; efficient and cost-conscious operations that minimize retailer operating expense and enhance property quality ; and targeted leasing to desirable tenants . during 2019 we : reported a decline in same-property cash net operating income ( “ noi ” ) ( 1 ) by 1.8 % over the year ended december 31 , 2018 ; reported a decline of same-property portfolio occupancy ( 2 ) to 93.4 % from 94.2 % as of december 31 , 2018 ; 26 reported a decline of consolidated portfolio occupancy to 92.9 % from 93.6 % as of december 31 , 2018 due to anchor bankruptcies ; signed 39 new leases totaling 368,779 square feet , including 31 new leases on a same-space ( 3 ) basis totaling 348,760 square feet at an average rental rate of $ 24.12 per square foot on a gaap basis and $ 22.13 per square foot on a cash basis , and resulting in average rent spreads of 18.8 % on a gaap basis and 4.0 % on a cash basis ; and renewed or extended 78 leases totaling 1,118,810 square feet , all on a same-space basis , at an average rental rate of $ 20.25 per square foot on a gaap basis and $ 19.90 per square foot on a cash basis and , generating average rent spreads of 11.6 % on a gaap basis and 7.3 % on a cash basis . investment strategy . our investment strategy is to selectively deploy capital through redevelopment and development of our existing assets and through acquisitions in our target markets that are expected to generate attractive risk-adjusted returns . at the same time , we plan to sell assets that no longer meet our investment criteria . during 2019 , we : advanced six projects with estimated gross costs of $ 38.1 million to active development and redevelopment projects including four anchor backfills ; active projects as of december 31 , 2019 have a total expected investment of $ 65.6 million of which $ 29.9 million remains to be funded ; completed 11 projects with total estimated gross costs of $ 167.2 million , of which $ 3.5 million remains to be funded ; this includes projects at bruckner commons in the bronx , ny , where the shopping center underwent a complete renovation including a new shoprite and burlington , and bergen town center where we added burlington and opened new restaurants , upgrading the food options at the mall ; identified approximately 13 additional development and redevelopment projects expected to be completed over the next several years ; acquired three assets , at an aggregate purchase price of $ 38.5 million and 195,300 sf , comprising one asset located in the boston metropolitan area and two assets adjacent to our existing property , bergen town center ; completed the sale of eight properties and received proceeds of $ 112.8 million , net of selling costs , resulting in a $ 68.6 million net gain on sale of real estate ; and sold our lessee position in a ground lease and received proceeds of $ 6.9 million , net of selling costs , resulting in a gain on sale of lease of $ 1.8 million . capital strategy . our capital strategy is to keep our balance sheet strong , flexible and capable of supporting growth by using cash flow from operations , refinancing debt when opportunities are favorable , issuing debt when appropriate and reinvesting funds from selective asset sales . during 2019 , we : amended our $ 600 million revolving credit facility , extending the maturity date from march 2021 to january 2024 with two six-month extension options . story_separator_special_tag due to rent abatements in 2018 , recognized at our two malls in puerto rico and at our property in wilkes-barre , pa as a result of natural disasters ; and $ 0.6 million increase in third-party management and development fee income due to higher leasing commissions . depreciation and amortization decreased by $ 5.3 million to $ 94.1 million in the year ended december 31 , 2019 from $ 99.4 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 7.1 million decrease in depreciation and amortization as a result of lower write-offs of existing tenant improvements and intangible assets related to recaptured leases ; and $ 2.1 million decrease as a result of property dispositions , net of acquisitions , partially offset by $ 3.9 million increase from completed development projects and tenant improvements . real estate taxes decreased by $ 3.5 million to $ 60.2 million in the year ended december 31 , 2019 from $ 63.7 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 2.0 million decrease as a result of dispositions , net of acquisitions ; and $ 1.5 million decrease due to successful appeals and tax refunds . property operating expenses decreased by $ 14.3 million to $ 64.1 million in the year ended december 31 , 2019 from $ 78.4 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 15.5 million of lease termination payments to acquire the toys “ r ” us leases at bruckner commons in the bronx , ny and hudson mall in jersey city , nj in 2018 ; $ 4.1 million due to credit losses related to operating lease receivables recognized in property operating expenses in 2018 versus rental revenue in 2019 ; and $ 1.5 million decrease as a result of dispositions , net of acquisitions , partially offset by 31 $ 3.3 million increase in common area maintenance projects and repair costs for vacant spaces ; $ 2.7 million of common area maintenance expenses recognized on a gross basis at tenant-maintained centers in accordance with the new lease accounting standard ; and $ 0.8 million increase in accrued environmental remediation costs . general and administrative expenses increased by $ 3.2 million to $ 38.2 million in the year ended december 31 , 2019 from $ 35.0 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 3.4 million increase in share-based compensation expense due to additional equity awards granted ; and $ 1.7 million increase in professional fees for consulting , recruitment and legal services , partially offset by $ 1.0 million decrease due to the recognition of office rent within lease expense in accordance with the lease accounting standard , effective january 1 , 2019 ; and $ 0.9 million net decrease in executive transition costs , severance and other expenses . casualty and impairment losses increased by $ 8.3 million to $ 12.7 million in the year ended december 31 , 2019 from $ 4.4 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 20.7 million higher real estate impairment losses recognized in 2019 , partially offset by $ 12.4 million higher proceeds from insurance settlements , net of casualty expenses , for hurricane maria in puerto rico in 2017 and for tornado damage at our shopping center in wilkes-barre , pa in june 2018. lease expense increased by $ 3.0 million to $ 14.5 million in the year ended december 31 , 2019 from $ 11.4 million in the year ended december 31 , 2018 . the increase is primarily attributable to the recognition of office rent and common area maintenance and real estate taxes associated with ground or building leases within lease expense in accordance with the new lease accounting standard , effective january 1 , 2019. we recognized a gain on sale of real estate of $ 68.6 million in the year ended december 31 , 2019 due to the sale of eight operating properties . a gain on sale of real estate of $ 52.6 million was recognized in the year ended december 31 , 2018 comprised of $ 50.4 million as a result of the sale of our property in allentown , pa on april 26 , 2018 and $ 2.2 million as a result of the sale of a 5.7 acre land parcel on july 5 , 2018 at our property , cherry hill commons , in cherry hill , nj . we recognized a gain of $ 1.8 million in the year ended december 31 , 2019 due to the sale of our ground lease in tysons corner , va. interest income increased by $ 1.4 million to $ 9.8 million in the year ended december 31 , 2019 from $ 8.3 million in the year ended december 31 , 2018 . the increase is attributable to an increase in interest rates and higher invested cash balances . interest and debt expense increased by $ 1.8 million to $ 66.6 million in the year ended december 31 , 2019 from $ 64.9 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 1.8 million decrease in capitalized interest due to the completion of development projects ; and $ 0.4 million increase resulting from higher interest rates on variable rate debt , partially offset by $ 0.4 million decrease due to lower principal balances from monthly payments on fixed rate debt . we recognized a $ 2.5 million gain on extinguishment of debt in the year ended december 31 , 2018 as a result of the foreclosure sale and forgiveness of the $ 11.5 million mortgage debt secured by our property in englewood , nj . income tax expense decreased by $ 2.2 million to $
| net cash used in investing activities of $ 2.5 million for the year ended december 31 , 2019 , increased by $ 62.3 million compared to net cash used in investing activities of $ 64.8 million as of december 31 , 2018 due to a ( i ) $ 58.9 million increase in cash provided by the sale of properties , ( ii ) $ 27.5 million decrease in cash used for real estate development and capital improvements at existing properties , ( iii ) $ 11.4 million increase in cash from insurance proceeds for physical property damages received in the year ended december 31 , 2019 , and ( iv ) $ 6.9 million increase due to the sale of an operating lease , partially offset by ( v ) $ 42.4 million increase in cash used for acquisitions . financing activities net cash flow used in or provided by financing activities is impacted by the timing and extent of issuances of debt and equity securities , distributions paid to common shareholders and unitholders of the operating partnership as well as principal and other payments associated with our outstanding indebtedness . net cash used in financing activities of $ 126.3 million for the year ended december 31 , 2019 , increased by $ 10.7 million from $ 115.6 million for the year ended december 31 , 2018 due to ( i ) $ 6.0 million paid to redeem units in 2019 , ( ii ) $ 2.6 million of cash used to amend our revolving credit agreement in 2019 , ( iii ) $ 1.3 million increase in debt repayments , ( iv ) $ 0.5 million increase in distributions to shareholders and unitholders and ( v ) $ 0.2 million increase in tax withholdings on vested restricted stock . financing activities and contractual obligations below is a summary of our outstanding debt and weighted average interest rate as of december 31 , 2019 . replace_table_token_20_th ( 1 ) as of december 31 , 2019 , $ 80.5 million of our variable rate debt bears interest at one month libor plus 190 bps and $ 89.0 million bears interest at one month libor plus 160 bps .
| 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. |
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.
```net cash used in investing activities of $ 2.5 million for the year ended december 31 , 2019 , increased by $ 62.3 million compared to net cash used in investing activities of $ 64.8 million as of december 31 , 2018 due to a ( i ) $ 58.9 million increase in cash provided by the sale of properties , ( ii ) $ 27.5 million decrease in cash used for real estate development and capital improvements at existing properties , ( iii ) $ 11.4 million increase in cash from insurance proceeds for physical property damages received in the year ended december 31 , 2019 , and ( iv ) $ 6.9 million increase due to the sale of an operating lease , partially offset by ( v ) $ 42.4 million increase in cash used for acquisitions . financing activities net cash flow used in or provided by financing activities is impacted by the timing and extent of issuances of debt and equity securities , distributions paid to common shareholders and unitholders of the operating partnership as well as principal and other payments associated with our outstanding indebtedness . net cash used in financing activities of $ 126.3 million for the year ended december 31 , 2019 , increased by $ 10.7 million from $ 115.6 million for the year ended december 31 , 2018 due to ( i ) $ 6.0 million paid to redeem units in 2019 , ( ii ) $ 2.6 million of cash used to amend our revolving credit agreement in 2019 , ( iii ) $ 1.3 million increase in debt repayments , ( iv ) $ 0.5 million increase in distributions to shareholders and unitholders and ( v ) $ 0.2 million increase in tax withholdings on vested restricted stock . financing activities and contractual obligations below is a summary of our outstanding debt and weighted average interest rate as of december 31 , 2019 . replace_table_token_20_th ( 1 ) as of december 31 , 2019 , $ 80.5 million of our variable rate debt bears interest at one month libor plus 190 bps and $ 89.0 million bears interest at one month libor plus 160 bps .
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Suspicious Activity Report : urban edge properties lp ( “ uelp ” or the “ operating partnership ” ) is a delaware limited partnership formed to serve as ue 's majority-owned partnership subsidiary and to own , through affiliates , all of our real estate properties and other assets . unless the context otherwise requires , references to “ we ” , “ us ” and “ our ” refer to urban edge properties and uelp and their consolidated entities/subsidiaries . the operating partnership 's capital includes general and common limited partnership interests in the operating partnership ( “ op units ” ) . as of december 31 , 2019 , urban edge owned approximately 95.4 % of the outstanding common op units with the remaining limited op units held by members of management , urban edge 's board of trustees and contributors of property interests acquired . urban edge serves as the sole general partner of the operating partnership . the third party unitholders have limited rights over the operating partnership such that they do not have characteristics of a controlling financial interest . as such , the operating partnership is considered a variable interest entity ( “ vie ” ) , and the company is the primary beneficiary that consolidates it . the company 's only investment is the operating partnership . the vie 's assets can be used for purposes other than the settlement of the vie 's obligations and the company 's partnership interest is considered a majority voting interest . as of december 31 , 2019 , our portfolio comprised 74 shopping centers , four malls and a warehouse park totaling approximately 15.2 million square feet . operating strategy . our operating strategy is to maximize the value of our existing assets through proactive management encompassing continuous asset evaluation for highest-and-best-use ; efficient and cost-conscious operations that minimize retailer operating expense and enhance property quality ; and targeted leasing to desirable tenants . during 2019 we : reported a decline in same-property cash net operating income ( “ noi ” ) ( 1 ) by 1.8 % over the year ended december 31 , 2018 ; reported a decline of same-property portfolio occupancy ( 2 ) to 93.4 % from 94.2 % as of december 31 , 2018 ; 26 reported a decline of consolidated portfolio occupancy to 92.9 % from 93.6 % as of december 31 , 2018 due to anchor bankruptcies ; signed 39 new leases totaling 368,779 square feet , including 31 new leases on a same-space ( 3 ) basis totaling 348,760 square feet at an average rental rate of $ 24.12 per square foot on a gaap basis and $ 22.13 per square foot on a cash basis , and resulting in average rent spreads of 18.8 % on a gaap basis and 4.0 % on a cash basis ; and renewed or extended 78 leases totaling 1,118,810 square feet , all on a same-space basis , at an average rental rate of $ 20.25 per square foot on a gaap basis and $ 19.90 per square foot on a cash basis and , generating average rent spreads of 11.6 % on a gaap basis and 7.3 % on a cash basis . investment strategy . our investment strategy is to selectively deploy capital through redevelopment and development of our existing assets and through acquisitions in our target markets that are expected to generate attractive risk-adjusted returns . at the same time , we plan to sell assets that no longer meet our investment criteria . during 2019 , we : advanced six projects with estimated gross costs of $ 38.1 million to active development and redevelopment projects including four anchor backfills ; active projects as of december 31 , 2019 have a total expected investment of $ 65.6 million of which $ 29.9 million remains to be funded ; completed 11 projects with total estimated gross costs of $ 167.2 million , of which $ 3.5 million remains to be funded ; this includes projects at bruckner commons in the bronx , ny , where the shopping center underwent a complete renovation including a new shoprite and burlington , and bergen town center where we added burlington and opened new restaurants , upgrading the food options at the mall ; identified approximately 13 additional development and redevelopment projects expected to be completed over the next several years ; acquired three assets , at an aggregate purchase price of $ 38.5 million and 195,300 sf , comprising one asset located in the boston metropolitan area and two assets adjacent to our existing property , bergen town center ; completed the sale of eight properties and received proceeds of $ 112.8 million , net of selling costs , resulting in a $ 68.6 million net gain on sale of real estate ; and sold our lessee position in a ground lease and received proceeds of $ 6.9 million , net of selling costs , resulting in a gain on sale of lease of $ 1.8 million . capital strategy . our capital strategy is to keep our balance sheet strong , flexible and capable of supporting growth by using cash flow from operations , refinancing debt when opportunities are favorable , issuing debt when appropriate and reinvesting funds from selective asset sales . during 2019 , we : amended our $ 600 million revolving credit facility , extending the maturity date from march 2021 to january 2024 with two six-month extension options . story_separator_special_tag due to rent abatements in 2018 , recognized at our two malls in puerto rico and at our property in wilkes-barre , pa as a result of natural disasters ; and $ 0.6 million increase in third-party management and development fee income due to higher leasing commissions . depreciation and amortization decreased by $ 5.3 million to $ 94.1 million in the year ended december 31 , 2019 from $ 99.4 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 7.1 million decrease in depreciation and amortization as a result of lower write-offs of existing tenant improvements and intangible assets related to recaptured leases ; and $ 2.1 million decrease as a result of property dispositions , net of acquisitions , partially offset by $ 3.9 million increase from completed development projects and tenant improvements . real estate taxes decreased by $ 3.5 million to $ 60.2 million in the year ended december 31 , 2019 from $ 63.7 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 2.0 million decrease as a result of dispositions , net of acquisitions ; and $ 1.5 million decrease due to successful appeals and tax refunds . property operating expenses decreased by $ 14.3 million to $ 64.1 million in the year ended december 31 , 2019 from $ 78.4 million in the year ended december 31 , 2018 . the decrease is primarily attributable to : $ 15.5 million of lease termination payments to acquire the toys “ r ” us leases at bruckner commons in the bronx , ny and hudson mall in jersey city , nj in 2018 ; $ 4.1 million due to credit losses related to operating lease receivables recognized in property operating expenses in 2018 versus rental revenue in 2019 ; and $ 1.5 million decrease as a result of dispositions , net of acquisitions , partially offset by 31 $ 3.3 million increase in common area maintenance projects and repair costs for vacant spaces ; $ 2.7 million of common area maintenance expenses recognized on a gross basis at tenant-maintained centers in accordance with the new lease accounting standard ; and $ 0.8 million increase in accrued environmental remediation costs . general and administrative expenses increased by $ 3.2 million to $ 38.2 million in the year ended december 31 , 2019 from $ 35.0 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 3.4 million increase in share-based compensation expense due to additional equity awards granted ; and $ 1.7 million increase in professional fees for consulting , recruitment and legal services , partially offset by $ 1.0 million decrease due to the recognition of office rent within lease expense in accordance with the lease accounting standard , effective january 1 , 2019 ; and $ 0.9 million net decrease in executive transition costs , severance and other expenses . casualty and impairment losses increased by $ 8.3 million to $ 12.7 million in the year ended december 31 , 2019 from $ 4.4 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 20.7 million higher real estate impairment losses recognized in 2019 , partially offset by $ 12.4 million higher proceeds from insurance settlements , net of casualty expenses , for hurricane maria in puerto rico in 2017 and for tornado damage at our shopping center in wilkes-barre , pa in june 2018. lease expense increased by $ 3.0 million to $ 14.5 million in the year ended december 31 , 2019 from $ 11.4 million in the year ended december 31 , 2018 . the increase is primarily attributable to the recognition of office rent and common area maintenance and real estate taxes associated with ground or building leases within lease expense in accordance with the new lease accounting standard , effective january 1 , 2019. we recognized a gain on sale of real estate of $ 68.6 million in the year ended december 31 , 2019 due to the sale of eight operating properties . a gain on sale of real estate of $ 52.6 million was recognized in the year ended december 31 , 2018 comprised of $ 50.4 million as a result of the sale of our property in allentown , pa on april 26 , 2018 and $ 2.2 million as a result of the sale of a 5.7 acre land parcel on july 5 , 2018 at our property , cherry hill commons , in cherry hill , nj . we recognized a gain of $ 1.8 million in the year ended december 31 , 2019 due to the sale of our ground lease in tysons corner , va. interest income increased by $ 1.4 million to $ 9.8 million in the year ended december 31 , 2019 from $ 8.3 million in the year ended december 31 , 2018 . the increase is attributable to an increase in interest rates and higher invested cash balances . interest and debt expense increased by $ 1.8 million to $ 66.6 million in the year ended december 31 , 2019 from $ 64.9 million in the year ended december 31 , 2018 . the increase is primarily attributable to : $ 1.8 million decrease in capitalized interest due to the completion of development projects ; and $ 0.4 million increase resulting from higher interest rates on variable rate debt , partially offset by $ 0.4 million decrease due to lower principal balances from monthly payments on fixed rate debt . we recognized a $ 2.5 million gain on extinguishment of debt in the year ended december 31 , 2018 as a result of the foreclosure sale and forgiveness of the $ 11.5 million mortgage debt secured by our property in englewood , nj . income tax expense decreased by $ 2.2 million to $
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1,006 | however , we will continue our efforts to seek to discover , research and develop additional product candidates and seek regulatory approvals in additional regions for xipere for the treatment of macular edema associated with uveitis . we have advanced our proprietary suspension of axitinib , which we refer to as cls-ax , into clinical development , and if these trials are successful , we anticipate an increase in clinical trial expenses as we continue further development of that product candidate . components of operating results revenue we have not generated any revenue from the sale of any drugs , and we do not expect to generate any product revenue unless or until we obtain regulatory approval of and commercialize our product candidates , either on our own or with a third party . our revenue in recent years has been generated primarily from our license agreements . we are seeking to enter into additional license and other agreements with third parties to evaluate the potential use of our proprietary scs microinjector with the third party 's product candidates for the treatment of various eye diseases . these agreements may include payments to us for technology access , upfront license payments , regulatory and commercial milestone payments and royalties . 58 research and development since our inception , we have focused on our development programs . research and development expenses consist primarily of costs incurred for the research and development of our preclinical and clinical product candidates , which include : employee-related expenses , including salaries , benefits , travel and share-based compensation expense for research and development personnel ; expenses incurred under agreements with contract research organizations , or cros , as well as contract manufacturing organizations and consultants that conduct clinical trials and preclinical studies ; costs associated with preclinical activities and clinical trials ; costs associated with submitting regulatory approval applications for our product candidates ; costs associated with training physicians on the suprachoroidal injection procedure and educating and providing them with appropriate product candidate information ; costs associated with technology and intellectual property licenses ; costs for our research and development facility ; and depreciation expense for assets used in research and development activities . we expense research and development costs to operations as incurred . these costs include preclinical activities , such as manufacturing and stability and toxicology studies , that are supportive of a product candidate itself . in addition , there are expenses related to clinical trials and similar activities for each program , including costs associated with cros . clinical costs are recognized based on the terms of underlying agreements , as well as an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations and additional information provided to us by our vendors about their actual costs occurred . expenses related to activities that support more than one development program or activity , such as salaries , share-based compensation and depreciation , are not classified as direct preclinical costs or clinical costs and are separately classified as unallocated . the following table shows our research and development expenses by type of activity for the years ended december 31 , 2020 , 2019 and 2018. replace_table_token_0_th our expenses related to clinical trials are based on estimates of patient enrollment and related expenses at clinical investigator sites as well as estimates for the services received and efforts expended under contracts with research institutions , consultants and cros that conduct and manage clinical trials on our behalf . we generally accrue expenses related to clinical trials based on contracted amounts applied to the level of patient enrollment and activity according to the protocol . if future timelines or contracts are modified based upon changes in the clinical trial protocol or scope of work to be performed , we would modify our estimates of accrued expenses accordingly on a prospective basis . research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . however , it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . 59 the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors that include the following : the costs associated with process development , scale-up and manufacturing of xipere and the scs microinjector for clinical trials and for requirements associated with regulatory filings associated with approval ; the number of trials required for approval and any requirement for extension trials ; per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of doses that patients receive ; the potential impact of the covid-19 pandemic on the enrollment in , and timing of , our clinical trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profiles of the product candidates . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . story_separator_special_tag in the year ended december 31 , 2019 we recognized $ 2.1 million of revenue associated with our license agreements . in the years ended december 31 , 2019 and 2018 , we recognized $ 0.1 million and $ 30,000 , respectively , of revenue associated with other agreements . research and development . research and development expense decreased by $ 52.6 million , from $ 68.3 million for the year ended december 31 , 2018 to $ 15.7 million for the year ended december 31 , 2019. this was primarily attributable to a $ 42.1 million decrease due to closing down the sapphire and topaz trials . additionally , there was a $ 4.6 million decrease due to the completion of the peachtree trial during the first quarter of 2018 , a $ 3.2 million decrease in costs related to our dme program , as the tybee trial was completed in the second quarter of 2018 , a $ 1.2 million decrease in costs related to device and drug manufacturing , a $ 0.6 million decrease in costs related to quality assurance as audits related to our nda filing were completed during 2018 and a $ 1.4 million decrease in regulatory expenses as the nda submission for xipere was completed in the fourth quarter of 2018. these decreases were partially offset by a $ 0.4 million increase in employee-related costs and a $ 0.5 million increase in nonclinical activities . general and administrative . general and administrative expenses increased by $ 2.1 million , from $ 14.7 million for the year ended december 31 , 2018 to $ 16.8 million for the year ended december 31 , 2019. the increase was primarily attributable to a $ 1.9 million increase in employee-related costs , including accrued expenses related to the resignation of our former ceo , and an increase of $ 0.9 million in professional fees . these increases were partially offset by a $ 0.4 million decrease that was primarily attributable to marketing-related expenses related to the change of our business strategy to seek partners for xipere rather than commercialize it on our own . other ( expense ) income . the decrease from other income of $ 0.1 million in 2018 to other expense of $ 0.5 million in 2019 was the result of higher interest income on short-term investment balances in the first quarter of 2018 following our public offering of common stock , which balances decreased over time . liquidity and capital resources sources of liquidity we have funded our operations primarily through the proceeds of public offerings of our common stock , sales of convertible preferred stock and the issuance of long-term debt . as of december 31 , 2020 , we had cash and cash equivalents of $ 17.3 million . we invest any cash in excess of our immediate requirements primarily with a view to liquidity and capital preservation . as of december 31 , 2020 , our funds were held in cash and money market funds . on january 6 , 2021 , we entered into a securities purchase agreement with certain institutional purchasers pursuant to which we issued and sold 4.2 million shares of our common stock in a registered direct offering at a price of $ 2.851 per share . we raised net cash proceeds of $ 11.1 million after deducting offering expenses . during the year ended december 31 , 2020 , we sold 6.2 million shares of our common stock for net proceeds of $ 12.0 million under the at-the-market , or atm , agreement , cowen and company llc , or cowen . under the atm agreement , we may offer and 64 sell , from time to time at our sole discretion , shares of our common stock through cowen acting as our sales agent . as of december 31 , 2020 , there was $ 27.0 million available for future sales under the atm agreement . subsequent to december 31 , 2020 , we sold 1.2 million shares of our common stock for net proceeds of $ 3.3 million . in september 2020 , we received $ 3.0 million in milestone payments under the regenxbio agreement . on april 20 , 2020 , we entered into a loan agreement with silicon valley bank under the terms of which silicon valley bank loaned us $ 1.0 million , or the ppp loan , pursuant to the paycheck protection program , or ppp , under the coronavirus aid , relief , and economic security act , or cares act . in accordance with the requirements of the cares act , we used the proceeds primarily for payroll costs and other eligible expenses . the cares act and the ppp provided a mechanism for forgiveness of up to the full amount borrowed . on january 11 , 2021 , we received notification from silicon valley bank that the full amount borrowed under the ppp loan and approximately $ 7,000 of accrued interest was forgiven . on march 10 , 2020 , we entered into the arctic license agreement , under which arctic vision has agreed to pay us up to a total of $ 35.5 million . this amount includes an upfront payment of $ 4.0 million , which we received in march 2020 , as well as an aggregate of up to $ 31.5 million in potential development milestone payments for specified events prior to and including receipt of regulatory approval of xipere in the united states and potential sales milestone payments for achievement of specified levels of net sales . further , during the applicable royalty term , we will also be entitled to receive tiered royalties of 10-12 % of net sales in the arctic territory , subject to customary reductions . we previously entered into a loan and security agreement with silicon valley bank and midcap financial services , or collectively the lenders , under which we borrowed $ 10.0 million in may 2018
| cash flows the following is a summary of the net cash flows provided by ( used in ) our operating , investing and financing activities : replace_table_token_3_th 66 during the years ended december 31 , 2020 , 2019 and 2018 , our operating activities used net cash of $ 13.0 million , $ 27.1 million and $ 79.2 million , respectively . the use of cash in each period primarily resulted from our net losses . the decrease in the net loss for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily attributable to lower research and development expenses as a result of the discontinuation of the sapphire and topaz trials and ceasing of commercialization activities in 2019. the losses were partially offset by non-cash items , made up primarily of share-based compensation , of $ 3.6 million and $ 4.6 million for the years ended december 31 , 2020 and 2019 , respectively . the decrease in net loss for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 was primarily attributable to lower research and development expenses as a result of the completion of the peachtree and tybee trials in the prior year and the discontinuation of the sapphire and topaz trials . the year ended december 31 , 2019 also included a net cash outflow of $ 5.1 million from a decrease in accounts payable , which was the result of payments we made in connection with winding down the clinical trials .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following is a summary of the net cash flows provided by ( used in ) our operating , investing and financing activities : replace_table_token_3_th 66 during the years ended december 31 , 2020 , 2019 and 2018 , our operating activities used net cash of $ 13.0 million , $ 27.1 million and $ 79.2 million , respectively . the use of cash in each period primarily resulted from our net losses . the decrease in the net loss for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily attributable to lower research and development expenses as a result of the discontinuation of the sapphire and topaz trials and ceasing of commercialization activities in 2019. the losses were partially offset by non-cash items , made up primarily of share-based compensation , of $ 3.6 million and $ 4.6 million for the years ended december 31 , 2020 and 2019 , respectively . the decrease in net loss for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018 was primarily attributable to lower research and development expenses as a result of the completion of the peachtree and tybee trials in the prior year and the discontinuation of the sapphire and topaz trials . the year ended december 31 , 2019 also included a net cash outflow of $ 5.1 million from a decrease in accounts payable , which was the result of payments we made in connection with winding down the clinical trials .
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Suspicious Activity Report : however , we will continue our efforts to seek to discover , research and develop additional product candidates and seek regulatory approvals in additional regions for xipere for the treatment of macular edema associated with uveitis . we have advanced our proprietary suspension of axitinib , which we refer to as cls-ax , into clinical development , and if these trials are successful , we anticipate an increase in clinical trial expenses as we continue further development of that product candidate . components of operating results revenue we have not generated any revenue from the sale of any drugs , and we do not expect to generate any product revenue unless or until we obtain regulatory approval of and commercialize our product candidates , either on our own or with a third party . our revenue in recent years has been generated primarily from our license agreements . we are seeking to enter into additional license and other agreements with third parties to evaluate the potential use of our proprietary scs microinjector with the third party 's product candidates for the treatment of various eye diseases . these agreements may include payments to us for technology access , upfront license payments , regulatory and commercial milestone payments and royalties . 58 research and development since our inception , we have focused on our development programs . research and development expenses consist primarily of costs incurred for the research and development of our preclinical and clinical product candidates , which include : employee-related expenses , including salaries , benefits , travel and share-based compensation expense for research and development personnel ; expenses incurred under agreements with contract research organizations , or cros , as well as contract manufacturing organizations and consultants that conduct clinical trials and preclinical studies ; costs associated with preclinical activities and clinical trials ; costs associated with submitting regulatory approval applications for our product candidates ; costs associated with training physicians on the suprachoroidal injection procedure and educating and providing them with appropriate product candidate information ; costs associated with technology and intellectual property licenses ; costs for our research and development facility ; and depreciation expense for assets used in research and development activities . we expense research and development costs to operations as incurred . these costs include preclinical activities , such as manufacturing and stability and toxicology studies , that are supportive of a product candidate itself . in addition , there are expenses related to clinical trials and similar activities for each program , including costs associated with cros . clinical costs are recognized based on the terms of underlying agreements , as well as an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations and additional information provided to us by our vendors about their actual costs occurred . expenses related to activities that support more than one development program or activity , such as salaries , share-based compensation and depreciation , are not classified as direct preclinical costs or clinical costs and are separately classified as unallocated . the following table shows our research and development expenses by type of activity for the years ended december 31 , 2020 , 2019 and 2018. replace_table_token_0_th our expenses related to clinical trials are based on estimates of patient enrollment and related expenses at clinical investigator sites as well as estimates for the services received and efforts expended under contracts with research institutions , consultants and cros that conduct and manage clinical trials on our behalf . we generally accrue expenses related to clinical trials based on contracted amounts applied to the level of patient enrollment and activity according to the protocol . if future timelines or contracts are modified based upon changes in the clinical trial protocol or scope of work to be performed , we would modify our estimates of accrued expenses accordingly on a prospective basis . research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . however , it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . 59 the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors that include the following : the costs associated with process development , scale-up and manufacturing of xipere and the scs microinjector for clinical trials and for requirements associated with regulatory filings associated with approval ; the number of trials required for approval and any requirement for extension trials ; per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of doses that patients receive ; the potential impact of the covid-19 pandemic on the enrollment in , and timing of , our clinical trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profiles of the product candidates . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . story_separator_special_tag in the year ended december 31 , 2019 we recognized $ 2.1 million of revenue associated with our license agreements . in the years ended december 31 , 2019 and 2018 , we recognized $ 0.1 million and $ 30,000 , respectively , of revenue associated with other agreements . research and development . research and development expense decreased by $ 52.6 million , from $ 68.3 million for the year ended december 31 , 2018 to $ 15.7 million for the year ended december 31 , 2019. this was primarily attributable to a $ 42.1 million decrease due to closing down the sapphire and topaz trials . additionally , there was a $ 4.6 million decrease due to the completion of the peachtree trial during the first quarter of 2018 , a $ 3.2 million decrease in costs related to our dme program , as the tybee trial was completed in the second quarter of 2018 , a $ 1.2 million decrease in costs related to device and drug manufacturing , a $ 0.6 million decrease in costs related to quality assurance as audits related to our nda filing were completed during 2018 and a $ 1.4 million decrease in regulatory expenses as the nda submission for xipere was completed in the fourth quarter of 2018. these decreases were partially offset by a $ 0.4 million increase in employee-related costs and a $ 0.5 million increase in nonclinical activities . general and administrative . general and administrative expenses increased by $ 2.1 million , from $ 14.7 million for the year ended december 31 , 2018 to $ 16.8 million for the year ended december 31 , 2019. the increase was primarily attributable to a $ 1.9 million increase in employee-related costs , including accrued expenses related to the resignation of our former ceo , and an increase of $ 0.9 million in professional fees . these increases were partially offset by a $ 0.4 million decrease that was primarily attributable to marketing-related expenses related to the change of our business strategy to seek partners for xipere rather than commercialize it on our own . other ( expense ) income . the decrease from other income of $ 0.1 million in 2018 to other expense of $ 0.5 million in 2019 was the result of higher interest income on short-term investment balances in the first quarter of 2018 following our public offering of common stock , which balances decreased over time . liquidity and capital resources sources of liquidity we have funded our operations primarily through the proceeds of public offerings of our common stock , sales of convertible preferred stock and the issuance of long-term debt . as of december 31 , 2020 , we had cash and cash equivalents of $ 17.3 million . we invest any cash in excess of our immediate requirements primarily with a view to liquidity and capital preservation . as of december 31 , 2020 , our funds were held in cash and money market funds . on january 6 , 2021 , we entered into a securities purchase agreement with certain institutional purchasers pursuant to which we issued and sold 4.2 million shares of our common stock in a registered direct offering at a price of $ 2.851 per share . we raised net cash proceeds of $ 11.1 million after deducting offering expenses . during the year ended december 31 , 2020 , we sold 6.2 million shares of our common stock for net proceeds of $ 12.0 million under the at-the-market , or atm , agreement , cowen and company llc , or cowen . under the atm agreement , we may offer and 64 sell , from time to time at our sole discretion , shares of our common stock through cowen acting as our sales agent . as of december 31 , 2020 , there was $ 27.0 million available for future sales under the atm agreement . subsequent to december 31 , 2020 , we sold 1.2 million shares of our common stock for net proceeds of $ 3.3 million . in september 2020 , we received $ 3.0 million in milestone payments under the regenxbio agreement . on april 20 , 2020 , we entered into a loan agreement with silicon valley bank under the terms of which silicon valley bank loaned us $ 1.0 million , or the ppp loan , pursuant to the paycheck protection program , or ppp , under the coronavirus aid , relief , and economic security act , or cares act . in accordance with the requirements of the cares act , we used the proceeds primarily for payroll costs and other eligible expenses . the cares act and the ppp provided a mechanism for forgiveness of up to the full amount borrowed . on january 11 , 2021 , we received notification from silicon valley bank that the full amount borrowed under the ppp loan and approximately $ 7,000 of accrued interest was forgiven . on march 10 , 2020 , we entered into the arctic license agreement , under which arctic vision has agreed to pay us up to a total of $ 35.5 million . this amount includes an upfront payment of $ 4.0 million , which we received in march 2020 , as well as an aggregate of up to $ 31.5 million in potential development milestone payments for specified events prior to and including receipt of regulatory approval of xipere in the united states and potential sales milestone payments for achievement of specified levels of net sales . further , during the applicable royalty term , we will also be entitled to receive tiered royalties of 10-12 % of net sales in the arctic territory , subject to customary reductions . we previously entered into a loan and security agreement with silicon valley bank and midcap financial services , or collectively the lenders , under which we borrowed $ 10.0 million in may 2018
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1,007 | from time-to-time , cw-bahamas has experienced delays in collecting its accounts receivable . representatives of the bahamas government have informed us that their previous delays in paying our accounts receivables did not reflect any type of dispute with us with respect to the amounts owed . to date , we have not been required to provide an allowance for any delinquent cw-bahamas accounts receivable as such amounts were eventually paid in full . based upon our experience , we believe that the accounts receivable from the wsc are fully collectible and therefore have not provided any allowance for possible non-payment of these receivables . our accounts receivable balances due from the bahamas government amounted to $ 9.0 million and $ 11.0 million , at december 31 , 2017 and 2016 , respectively . belize cw-belize was acquired on july 21 , 2000 and consists of one reverse osmosis seawater conversion plant on ambergris caye , belize , capable of producing 600,000 gallons per day . we sell water to one customer , belize water services limited , which then distributes the water through its own distribution system to residential , commercial and tourist properties on ambergris caye . transfers of funds held by our subsidiary cw-belize to our parent company , which are accomplished by means of conversion of belize dollars into u.s. dollars , require the approval of the central bank of belize and are dependent on the amount of u.s. dollars available to belize banks to execute such transfers . weakness in the belize economy and other factors have reduced the amount of u.s. dollars that belize banks have available for transfer , which has limited the amount of funds we are presently able to transfer from cw-belize . our repatriations of funds from cw-belize to our parent company amounted to $ 458,000 and $ 400,000 in 2017 and 2016 , respectively , significantly less than the net income and net cash flows cw-belize generated for those years . as of december 31 , 2017 and 2016 , the equivalent u.s. dollar cash amounts for our bank account deposits in belize were approximately $ 6.3 million and $ 4.9 million , respectively . critical accounting estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ significantly from such estimates and assumptions . 29 certain of our accounting estimates or assumptions constitute “ critical accounting estimates ” for us because : · the nature of these estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change ; and · the impact of the estimates and assumptions on financial condition and results of operations is material . our critical accounting estimates relate to the valuations of our ( i ) goodwill and intangible assets ; and ( ii ) long-lived assets . goodwill and intangible assets goodwill represents the excess cost over the fair value of the assets of an acquired business . goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment . we evaluate the possible impairment of goodwill annually as part of our reporting process for the fourth quarter of each fiscal year . management identifies our reporting units , which consist of our retail , bulk and manufacturing operations , and determines the carrying value of each reporting unit by assigning the assets and liabilities , including the existing goodwill and intangible assets , to those reporting units . we determine the fair value of each reporting unit and compare these fair values to the carrying amounts of the reporting units . to the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit , an impairment loss is recorded . for the years ended december 31 , 2017 and 2016 , we estimated the fair value of our reporting units by applying the discounted cash flow method , the guideline public company method , and the mergers and acquisitions method . the discounted cash flow method relied upon seven-year discrete projections of operating results , working capital and capital expenditures , along with a terminal value subsequent to the discrete period . these seven-year projections were based upon historical and anticipated future results , general economic and market conditions , and considered the impact of planned business and operational strategies . the discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis . we also estimated the fair value of each of our reporting units for the years ended december 31 , 2017 and 2016 through reference to the guideline companies and the market multiples implied by guideline merger and acquisition transactions . we weighted the fair values estimated for each of our reporting units under each method and summed such weighted fair values to estimate the overall fair value for each reporting unit . story_separator_special_tag the increase in revenues from 2016 to 2017 reflects the additional period of manufacturing activity in 2017 as compared to 2016 due to the acquisition of aerex on february 11 , 2016 and an increase in the average dollar value of manufacturing contracts . manufacturing segment gross profit was $ 2,026,534 ( 29 % of revenues ) and $ 796,450 ( 20 % of revenues ) for 2017 and 2016 , respectively . gross profit for 2017 increased in dollars from 2016 due to the incremental revenues . g & a expenses for the manufacturing segment were $ 2,646,504 and $ 2,308,607. manufacturing g & a expenses increased in 2017 from 2016 due to an increase of approximately $ 202,000 in project development expenses incurred for 2017. losses on long-lived asset impairments and dispositions , net for the manufacturing segment were ( $ 1,400,000 ) and ( $ 1,754,402 ) for 2017 and 2016 , respectively , due to the goodwill impairment losses of ( $ 1,400,000 ) and ( $ 1,750,000 ) recorded in 2017 and 2016 , respectively . 33 year ended december 31 , 2016 compared to year ended december 31 , 2015 consolidated results net income attributable to consolidated water co. ltd. stockholders for 2016 was $ 3,960,501 , ( $ 0.27 per share on a fully-diluted basis ) , as compared to $ 7,518,701 ( $ 0.51 per share on a fully-diluted basis ) for 2015. total revenues for 2016 and 2015 were $ 57,875,707 and $ 57,116,202 , respectively . higher revenues for our retail and services segments in 2016 served to offset a decrease in the bulk segment revenues . gross profit for 2016 was $ 24,250,886 or 42 % of total revenues , as compared to $ 23,308,220 or 41 % of total revenues , for 2015. gross profit for the retail and services segments increased from 2015 to 2016 while bulk segment gross profit remained relatively consistent . for further discussion of revenues and gross profit for 2016 , see the “ results by segment ” analysis that follows . we recorded an impairment loss of ( $ 2.0 million ) in 2016 to reduce the carrying value of cw-bali 's long-lived assets to their estimated fair value . we recorded an impairment loss of ( $ 1.8 million ) in 2016 to reduce the carrying value of the goodwill associated with the aerex acquisition . g & a expenses on a consolidated basis were $ 18,677,584 and $ 14,840,156 for 2016 and 2015 , respectively . the increase in consolidated g & a expenses from 2015 to 2016 is primarily attributable to the addition of approximately $ 2,309,000 in expenses for aerex after our acquisition of a 51 % ownership interest in this company in february 2016 and an increase of approximately $ 1,036,000 in the expenses incurred in connection with the project development activities of our mexican subsidiaries . other income ( expense ) , net for 2016 was $ 103,573 as compared to ( $ 510,004 ) for 2015. the fluctuation in this net component of our results of operations reflects ( i ) interest income that was approximately $ 404,000 less in 2016 than 2015 due to a decrease in interest earning deposit and loan receivable balances ( ii ) an impairment loss recorded for our equity investment in oc-bvi in 2016 of ( $ 925,000 ) as compared to an impairment loss of ( $ 1.6 million ) for this investment in 2015 ; ( iii ) an unrealized loss of ( $ 297,000 ) recorded in 2016 resulting from the revaluation of the net put/call option value recorded in connection with the aerex acquisition ; and ( iv ) foreign currency gains relating to cw-bali of approximately $ 201,000 in 2016 , as compared to foreign currency losses relating to cw-bali of approximately ( $ 346,000 ) in 2015. results by segment retail segment : the retail segment generated a loss from operations of ( $ 202,787 ) in 2016 as compared to income from operations of $ 1,582,270 in 2015. the loss from operations for 2016 is attributable to an impairment loss recorded in 2016 on the long-lived assets of cw-bali , as discussed in paragraphs that follow . revenues generated by our retail water operations were $ 23,505,619 in 2016 as compared to $ 23,254,757 in 2015. the volume of water sold by our cayman water retail operations increased by 12 % from 2015 to 2016 which served to offset ( i ) lower energy costs , which reduced the energy component of the rates we charge to our cayman water customers by $ 818,771 from 2015 ; ( ii ) a reduction in cayman water base rates in the first quarter of 2016 of 4.4 % from 2015 ; and ( iii ) a decrease in sales for cw-bali of approximately $ 277,000. retail segment gross profit was $ 13,211,321 ( 56 % of retail revenues ) and $ 12,710,785 ( 55 % of retail revenues ) for 2016 and 2015 , respectively . consistent with prior periods , we record all non-direct g & a expenses in our retail segment and do not allocate any of these non-direct expenses to our other two business segments . retail g & a expenses for 2016 and 2015 remained relatively consistent at $ 11,460,165 and $ 11,095,349 , respectively . through our subsidiary , cw-bali , we built a seawater reverse osmosis plant located in nusa dua , one of the primary tourist areas of bali , indonesia . we built this plant based upon our belief that future water shortages in this area of bali would eventually enable us to sell all of this plant 's production . however , the sales volumes for its plant have not been sufficient to cover its operating costs and cw-bali has incurred net losses each year since the inception of its operations in 2013. in late
| liquidity and capital resources liquidity position our projected liquidity requirements for 2018 include capital expenditures for our existing operations of approximately $ 18.7 million ( primarily for capital improvements to the windsor plant in the bahamas and for the expansion of the acww plant in grand cayman ) , dividends payable of approximately $ 1.3 million and approximately $ 1.4 million to be expended for nsc 's and adr 's project development activities . our liquidity requirements for 2018 may also include future quarterly dividends , if such dividends are declared by our board . our dividend payments amounted to approximately $ 4.5 million for the year ended december 31 , 2017 and approximately $ 4.6 million for the year ended december 31 , 2016 . 35 in february 2016 , we purchased 51 % of the equity ownership of aerex , a u.s. original equipment manufacturer and service provider of a wide range of products and services applicable to industrial , commercial and municipal water treatment , for $ 7.7 million in cash . immediately following our acquisition of aerex , we and the former sole shareholder of aerex loaned aerex $ 510,000 and $ 490,000 , respectively , in the form of notes payable which were scheduled to mature on june 30 , 2017 and bore interest at 1 % per annum . these notes payable were repaid in april 2017. in february 2017 , we and the former sole shareholder of aerex loaned aerex $ 408,000 and $ 392,000 , respectively , in the form of notes payable which mature on september 30 , 2017 and bear interest at 1 % per annum .
| 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. |
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 liquidity position our projected liquidity requirements for 2018 include capital expenditures for our existing operations of approximately $ 18.7 million ( primarily for capital improvements to the windsor plant in the bahamas and for the expansion of the acww plant in grand cayman ) , dividends payable of approximately $ 1.3 million and approximately $ 1.4 million to be expended for nsc 's and adr 's project development activities . our liquidity requirements for 2018 may also include future quarterly dividends , if such dividends are declared by our board . our dividend payments amounted to approximately $ 4.5 million for the year ended december 31 , 2017 and approximately $ 4.6 million for the year ended december 31 , 2016 . 35 in february 2016 , we purchased 51 % of the equity ownership of aerex , a u.s. original equipment manufacturer and service provider of a wide range of products and services applicable to industrial , commercial and municipal water treatment , for $ 7.7 million in cash . immediately following our acquisition of aerex , we and the former sole shareholder of aerex loaned aerex $ 510,000 and $ 490,000 , respectively , in the form of notes payable which were scheduled to mature on june 30 , 2017 and bore interest at 1 % per annum . these notes payable were repaid in april 2017. in february 2017 , we and the former sole shareholder of aerex loaned aerex $ 408,000 and $ 392,000 , respectively , in the form of notes payable which mature on september 30 , 2017 and bear interest at 1 % per annum .
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Suspicious Activity Report : from time-to-time , cw-bahamas has experienced delays in collecting its accounts receivable . representatives of the bahamas government have informed us that their previous delays in paying our accounts receivables did not reflect any type of dispute with us with respect to the amounts owed . to date , we have not been required to provide an allowance for any delinquent cw-bahamas accounts receivable as such amounts were eventually paid in full . based upon our experience , we believe that the accounts receivable from the wsc are fully collectible and therefore have not provided any allowance for possible non-payment of these receivables . our accounts receivable balances due from the bahamas government amounted to $ 9.0 million and $ 11.0 million , at december 31 , 2017 and 2016 , respectively . belize cw-belize was acquired on july 21 , 2000 and consists of one reverse osmosis seawater conversion plant on ambergris caye , belize , capable of producing 600,000 gallons per day . we sell water to one customer , belize water services limited , which then distributes the water through its own distribution system to residential , commercial and tourist properties on ambergris caye . transfers of funds held by our subsidiary cw-belize to our parent company , which are accomplished by means of conversion of belize dollars into u.s. dollars , require the approval of the central bank of belize and are dependent on the amount of u.s. dollars available to belize banks to execute such transfers . weakness in the belize economy and other factors have reduced the amount of u.s. dollars that belize banks have available for transfer , which has limited the amount of funds we are presently able to transfer from cw-belize . our repatriations of funds from cw-belize to our parent company amounted to $ 458,000 and $ 400,000 in 2017 and 2016 , respectively , significantly less than the net income and net cash flows cw-belize generated for those years . as of december 31 , 2017 and 2016 , the equivalent u.s. dollar cash amounts for our bank account deposits in belize were approximately $ 6.3 million and $ 4.9 million , respectively . critical accounting estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ significantly from such estimates and assumptions . 29 certain of our accounting estimates or assumptions constitute “ critical accounting estimates ” for us because : · the nature of these estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change ; and · the impact of the estimates and assumptions on financial condition and results of operations is material . our critical accounting estimates relate to the valuations of our ( i ) goodwill and intangible assets ; and ( ii ) long-lived assets . goodwill and intangible assets goodwill represents the excess cost over the fair value of the assets of an acquired business . goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment . we evaluate the possible impairment of goodwill annually as part of our reporting process for the fourth quarter of each fiscal year . management identifies our reporting units , which consist of our retail , bulk and manufacturing operations , and determines the carrying value of each reporting unit by assigning the assets and liabilities , including the existing goodwill and intangible assets , to those reporting units . we determine the fair value of each reporting unit and compare these fair values to the carrying amounts of the reporting units . to the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit , an impairment loss is recorded . for the years ended december 31 , 2017 and 2016 , we estimated the fair value of our reporting units by applying the discounted cash flow method , the guideline public company method , and the mergers and acquisitions method . the discounted cash flow method relied upon seven-year discrete projections of operating results , working capital and capital expenditures , along with a terminal value subsequent to the discrete period . these seven-year projections were based upon historical and anticipated future results , general economic and market conditions , and considered the impact of planned business and operational strategies . the discount rates for the calculations represented the estimated cost of capital for market participants at the time of each analysis . we also estimated the fair value of each of our reporting units for the years ended december 31 , 2017 and 2016 through reference to the guideline companies and the market multiples implied by guideline merger and acquisition transactions . we weighted the fair values estimated for each of our reporting units under each method and summed such weighted fair values to estimate the overall fair value for each reporting unit . story_separator_special_tag the increase in revenues from 2016 to 2017 reflects the additional period of manufacturing activity in 2017 as compared to 2016 due to the acquisition of aerex on february 11 , 2016 and an increase in the average dollar value of manufacturing contracts . manufacturing segment gross profit was $ 2,026,534 ( 29 % of revenues ) and $ 796,450 ( 20 % of revenues ) for 2017 and 2016 , respectively . gross profit for 2017 increased in dollars from 2016 due to the incremental revenues . g & a expenses for the manufacturing segment were $ 2,646,504 and $ 2,308,607. manufacturing g & a expenses increased in 2017 from 2016 due to an increase of approximately $ 202,000 in project development expenses incurred for 2017. losses on long-lived asset impairments and dispositions , net for the manufacturing segment were ( $ 1,400,000 ) and ( $ 1,754,402 ) for 2017 and 2016 , respectively , due to the goodwill impairment losses of ( $ 1,400,000 ) and ( $ 1,750,000 ) recorded in 2017 and 2016 , respectively . 33 year ended december 31 , 2016 compared to year ended december 31 , 2015 consolidated results net income attributable to consolidated water co. ltd. stockholders for 2016 was $ 3,960,501 , ( $ 0.27 per share on a fully-diluted basis ) , as compared to $ 7,518,701 ( $ 0.51 per share on a fully-diluted basis ) for 2015. total revenues for 2016 and 2015 were $ 57,875,707 and $ 57,116,202 , respectively . higher revenues for our retail and services segments in 2016 served to offset a decrease in the bulk segment revenues . gross profit for 2016 was $ 24,250,886 or 42 % of total revenues , as compared to $ 23,308,220 or 41 % of total revenues , for 2015. gross profit for the retail and services segments increased from 2015 to 2016 while bulk segment gross profit remained relatively consistent . for further discussion of revenues and gross profit for 2016 , see the “ results by segment ” analysis that follows . we recorded an impairment loss of ( $ 2.0 million ) in 2016 to reduce the carrying value of cw-bali 's long-lived assets to their estimated fair value . we recorded an impairment loss of ( $ 1.8 million ) in 2016 to reduce the carrying value of the goodwill associated with the aerex acquisition . g & a expenses on a consolidated basis were $ 18,677,584 and $ 14,840,156 for 2016 and 2015 , respectively . the increase in consolidated g & a expenses from 2015 to 2016 is primarily attributable to the addition of approximately $ 2,309,000 in expenses for aerex after our acquisition of a 51 % ownership interest in this company in february 2016 and an increase of approximately $ 1,036,000 in the expenses incurred in connection with the project development activities of our mexican subsidiaries . other income ( expense ) , net for 2016 was $ 103,573 as compared to ( $ 510,004 ) for 2015. the fluctuation in this net component of our results of operations reflects ( i ) interest income that was approximately $ 404,000 less in 2016 than 2015 due to a decrease in interest earning deposit and loan receivable balances ( ii ) an impairment loss recorded for our equity investment in oc-bvi in 2016 of ( $ 925,000 ) as compared to an impairment loss of ( $ 1.6 million ) for this investment in 2015 ; ( iii ) an unrealized loss of ( $ 297,000 ) recorded in 2016 resulting from the revaluation of the net put/call option value recorded in connection with the aerex acquisition ; and ( iv ) foreign currency gains relating to cw-bali of approximately $ 201,000 in 2016 , as compared to foreign currency losses relating to cw-bali of approximately ( $ 346,000 ) in 2015. results by segment retail segment : the retail segment generated a loss from operations of ( $ 202,787 ) in 2016 as compared to income from operations of $ 1,582,270 in 2015. the loss from operations for 2016 is attributable to an impairment loss recorded in 2016 on the long-lived assets of cw-bali , as discussed in paragraphs that follow . revenues generated by our retail water operations were $ 23,505,619 in 2016 as compared to $ 23,254,757 in 2015. the volume of water sold by our cayman water retail operations increased by 12 % from 2015 to 2016 which served to offset ( i ) lower energy costs , which reduced the energy component of the rates we charge to our cayman water customers by $ 818,771 from 2015 ; ( ii ) a reduction in cayman water base rates in the first quarter of 2016 of 4.4 % from 2015 ; and ( iii ) a decrease in sales for cw-bali of approximately $ 277,000. retail segment gross profit was $ 13,211,321 ( 56 % of retail revenues ) and $ 12,710,785 ( 55 % of retail revenues ) for 2016 and 2015 , respectively . consistent with prior periods , we record all non-direct g & a expenses in our retail segment and do not allocate any of these non-direct expenses to our other two business segments . retail g & a expenses for 2016 and 2015 remained relatively consistent at $ 11,460,165 and $ 11,095,349 , respectively . through our subsidiary , cw-bali , we built a seawater reverse osmosis plant located in nusa dua , one of the primary tourist areas of bali , indonesia . we built this plant based upon our belief that future water shortages in this area of bali would eventually enable us to sell all of this plant 's production . however , the sales volumes for its plant have not been sufficient to cover its operating costs and cw-bali has incurred net losses each year since the inception of its operations in 2013. in late
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1,008 | one of the primary contributors to newtek 's continued profitability was the small business finance segment which generated pro forma pretax income of $ 12,873,000 in 2014 compared to $ 10,143,000 in 2013 , an increase of $ 2,730,000. the primary drivers were servicing fee income on nsbf and external portfolios which in 2014 increased by $ 3,630,000 , or 55 % and interest income which increased $ 1,927,000 or 40 % . total sba loans originated increased to $ 202,269,000 in 2014 compared with $ 177,941,000 for 2013. the weighted average sales price for the guaranteed portions of sba loans sold increased slightly to 112.49 % compared with 112.32 % for 2014 and 2013 , respectively . the electronic payment processing segment recorded a 19 % decrease in pro forma pretax net income , which decreased to $ 6,728,000 in 2014 from $ 8,304,000 compared with the 2013 period . pro forma revenue increased by $ 1,505,000 or 2 % to $ 91,160,000 during 2014 compared to 2013. the increase was related to growth in processing volumes and fee increases passed on to merchants . processing revenue less processing costs increased from 15.5 % in 2013 to 15.9 % in 2014. while margin was favorably impacted by the implementation and growth of fees , the increase was offset by an increase in provision for chargebacks in 2014 attributed to a specific merchant that experienced a high level of chargebacks as well as a charge related to a potential legal judgment against the company . pro forma pretax net income for managed technology solutions decreased from $ 3,564,000 in the year ended december 31 , 2013 to $ 3,081,000 for the year ended december 31 , 2014. segment pro forma revenue decreased by 10 % due primarily to a reduction in web hosting revenue driven by a reduction in active plans . it continues to be management 's intent to increase revenue and margin per plan through higher service offerings to customers which include cloud-based applications . management has broadened the company 's focus beyond the microsoft web platform by now providing its platform capabilities to include open source web applications which have become increasingly attractive to web developers and resellers . in december 2014 , a company subsidiary closed its fifth securitization issuing an additional $ 31,700,000 in notes with an “ a ” rating under s & p see securitzation transactions in part ii item 7. consolidated results of operations post bdc election : as a bdc , we are subject to certain constraints on our operations , including limitations imposed by the 1940 act . in addition , due to the conversion from an operating company to a bdc on november 12 , 2014 , there is no prior period results to compare the reportable period to , and the results below only reflect the results of the company for the period november 12 , 2014 through december 31 , 2014 . 56 investment income total investment income was $ 1,976,000 for the period november 12 , 2014 through december 31 , 2014. investment income from non-controlled non-affiliates was $ 1,912,000 and consisted of $ 1,080,000 in interest income earned primarily from our sba loan portfolio . servicing income earned was $ 562,000 related to our sba loan portfolio . other income from non-controlled non-affiliates for the period was $ 270,000 and consists of fees earned such as closing , packaging , and late payment fees related to our sba loan portfolio . investment income from controlled affiliate investments was $ 64,000 for the period november 12 , 2014 through december 31 , 2014 and consisted of $ 37,000 in dividend income from a controlled portfolio company and $ 23,000 of interest income from various controlled portfolio companies . expenses total expenses for the period post bdc election were $ 4,305,000. total operating expenses for the period consisted principally of salaries and benefits , interest expense , professional fees and general and administrative expenses . salaries and benefits relate to our lending subsidiary and corporate employees of the bdc . interest expense relates to the term loan held by the bdc , the revolving credit facility of sbf and the securitization notes payable . since the company will not be eligible for the ric election until 2015 , the company recorded a tax provision for the period which is reflective of the company filing a consolidated c-corp return for the full year . as a result , the company recorded a tax provision for the period november 12 , 2014 through december 31 , 2014 of $ 194,000. net realized gains and net unrealized appreciation and depreciation realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period , net of recoveries . the net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period , including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized . for the period november 12 , 2014 through december 31 , 2014 , we had net realized gains totaling $ 595,000 primarily due to the sale of non-controlled non-affiliate investments ( sba loans ) into a secondary market during the period . for the period november 12 , 2014 through december 31 , 2014 , net unrealized appreciation on non-affiliate investments totaled $ 2,733,000 which was primarily due to unrealized appreciation on 30 non-affiliate debt investments which have not yet traded as of december 31 , 2014. business segment results : the results of the company 's reportable business segments presented for the full year on a pro forma basis are discussed below . story_separator_special_tag the company used an assumed prepayment speed of 19 % based on current market conditions and historical experience for the loan portfolio , against a prepayment curve developed from nsbf historical experience to calculate expected loan prepayments in a given year . defaults are defined as any loan placed on non-accrual status as of december 31 , 2014. the cumulative default rate , defined as the percent of loan balance that will enter final liquidation in a given year , was estimated to be 25 % , and was derived from nsbf historical experience . the mix of nsbf 's loan portfolio continues to shift from start-up businesses , to predominately existing businesses . our historical default and loss rates demonstrate that this particular segment ( i.e . existing business ) of our sba loan portfolio continues to experience the lowest rate of defaults and ultimate losses over our twelve year history of originating loans . when computing the cumulative default rate to be applied to the performing portfolio loan balances , the company excluded the last three years of originations as those loans have not seasoned yet . the discounted cash flow analysis resulted in a price equivalent of 94.80 % of the par amount on our performing loans held for investment . other general and administrative costs increased by $ 1,323,000 when compared to the comparable period of the prior year . the increase was mainly attributed to increases in loan origination costs of $ 339,000 , loan recovery and servicing expenses of $ 623,000 and additional marketing expense of $ 289,000 in connection with our television ad campaign for the year ended december 31 , 2014. the increase of loan originations and the size of the portfolio , combined with improvements in interest income , generated by the addition to and enhanced performance of the portfolio , were sufficient to offset additional salaries , servicing and origination expenses . the resulting pretax income of $ 12,874,000 was a 27 % improvement over pretax income of $ 10,143,000 for the year ended december 31 , 2013. the following tables set forth distribution by business type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_11_th as of december 31 , 2013 replace_table_token_12_th 63 the following tables set forth distribution by borrower 's credit score of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively as of december 31 , 2014 replace_table_token_13_th as of december 31 , 2013 replace_table_token_14_th the following tables set forth distribution by primary collateral type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 64 replace_table_token_15_th as of december 31 , 2013 replace_table_token_16_th the following tables set forth distribution by days delinquent of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_17_th as of december 31 , 2013 65 replace_table_token_18_th comparison of the years ended december 31 , 2013 and december 31 , 2012 for the year ended december 31 , 2013 , the company recognized $ 19,456,000 of premium income from 167 guaranteed loans sold aggregating $ 131,733,000. during 2012 , the company recognized $ 12,367,000 of premium income from 105 guaranteed loans sold totaling $ 84,743,000. the increase in premium income for the year ended december 31 , 2013 is the result of an increased number of loans sold as compared with the prior period . sale prices on guaranteed loan sales averaged 112.32 % for the twelve months ended december 31 , 2013 compared with 112.22 % for the twelve months ended december 31 , 2012. the $ 297,000 decline in total servicing income was attributable primarily to the decrease in fdic servicing income of $ 1,278,000 as a result of the sale of a portion of that portfolio , which was offset by an increase in other third party loan servicing of $ 511,000. with the addition in november 2013 of the community south bank portfolio , which we service for the fdic , as well as the addition of other third party loan servicing contracts in 2013 , the average third party servicing portfolio increased from $ 195,670,000 for the twelve month period ended december 31 , 2012 to $ 232,410,000 for the same twelve month period in 2013. servicing fees received on the nsbf portfolio increased by $ 471,000 period over period and was attributable to the expansion of the nsbf originated portfolio in which we earn servicing income . the portfolio increased from an average of $ 238,590,000 for the twelve month period ending december 31 , 2012 to an average of $ 314,486,000 for the same twelve month period in 2013. this increase was the direct result of increased loan originations in 2013. interest income increased by $ 1,432,000 for the year ended december 31 , 2013 as compared to the same period in 2012 as a result of the average outstanding performing portfolio of sba loans held for investment increasing to $ 72,337,000 from $ 48,512,000 for the years ended december 31 , 2013 and 2012 , respectively . other income increased by $ 772,000 for the year ended december 31 , 2013 as compared to the same period in 2012. the increase is primarily attributable to nsbf which increased $ 616,000 period over period and included an increase of $ 333,000 in consulting fee income from the fdic and an increase in packaging and other servicing fee income of $ 188,000. the remaining increase was attributable to loan recovery and various loan-related fee income . additionally ,
| liquidity and capital resources overview cash requirements and liquidity needs over the next twelve months are anticipated to be funded primarily through operating results , available cash and cash equivalents , existing credit lines , proposed new credit lines , additional securitizations of the company 's sba lender 's unguaranteed loan portions and additional issuances of common stocks . in november 2014 , the company closed an underwritten offering of 2,530,000 shares of its common stock at a public offering price of $ 12.50 per share for total gross proceeds of $ 31,625,000. the company is using the proceeds to expand its financing activities and to primarily increase its activity in sba 7 ( a ) lending and make direct investments in portfolio companies in accordance with its investment objectives and strategies . as more fully described below , the company 's sba lender ( “ nsbf ” ) will require additional funding sources to maintain current sba loan originations under anticipated conditions ; although the failure to find these sources may require the reduction in the company 's sba lending and related operations , it will not impair the company 's overall ability to operate . nsbf depends on the availability of licensed sba lenders to purchase sba loans held for sale transferred to the secondary markets and the premium earned therein to support its lending operations . at this time the secondary market for the sba loans held for sale is robust . nsbf has historically financed the operations of its lending business through loans or credit facilities from various lenders and will need to continue to do so in the future , as well as raise capital through the issuance of the company 's common stock . such lenders invariably require a security interest in the sba loans as collateral which , under the applicable law , requires the prior approval of the sba . if the company should ever be unable to obtain the approval for its financing arrangements from the sba , or if it were otherwise unable to raise capital , it would likely be unable to continue to make loans .
| 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. |
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 overview cash requirements and liquidity needs over the next twelve months are anticipated to be funded primarily through operating results , available cash and cash equivalents , existing credit lines , proposed new credit lines , additional securitizations of the company 's sba lender 's unguaranteed loan portions and additional issuances of common stocks . in november 2014 , the company closed an underwritten offering of 2,530,000 shares of its common stock at a public offering price of $ 12.50 per share for total gross proceeds of $ 31,625,000. the company is using the proceeds to expand its financing activities and to primarily increase its activity in sba 7 ( a ) lending and make direct investments in portfolio companies in accordance with its investment objectives and strategies . as more fully described below , the company 's sba lender ( “ nsbf ” ) will require additional funding sources to maintain current sba loan originations under anticipated conditions ; although the failure to find these sources may require the reduction in the company 's sba lending and related operations , it will not impair the company 's overall ability to operate . nsbf depends on the availability of licensed sba lenders to purchase sba loans held for sale transferred to the secondary markets and the premium earned therein to support its lending operations . at this time the secondary market for the sba loans held for sale is robust . nsbf has historically financed the operations of its lending business through loans or credit facilities from various lenders and will need to continue to do so in the future , as well as raise capital through the issuance of the company 's common stock . such lenders invariably require a security interest in the sba loans as collateral which , under the applicable law , requires the prior approval of the sba . if the company should ever be unable to obtain the approval for its financing arrangements from the sba , or if it were otherwise unable to raise capital , it would likely be unable to continue to make loans .
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Suspicious Activity Report : one of the primary contributors to newtek 's continued profitability was the small business finance segment which generated pro forma pretax income of $ 12,873,000 in 2014 compared to $ 10,143,000 in 2013 , an increase of $ 2,730,000. the primary drivers were servicing fee income on nsbf and external portfolios which in 2014 increased by $ 3,630,000 , or 55 % and interest income which increased $ 1,927,000 or 40 % . total sba loans originated increased to $ 202,269,000 in 2014 compared with $ 177,941,000 for 2013. the weighted average sales price for the guaranteed portions of sba loans sold increased slightly to 112.49 % compared with 112.32 % for 2014 and 2013 , respectively . the electronic payment processing segment recorded a 19 % decrease in pro forma pretax net income , which decreased to $ 6,728,000 in 2014 from $ 8,304,000 compared with the 2013 period . pro forma revenue increased by $ 1,505,000 or 2 % to $ 91,160,000 during 2014 compared to 2013. the increase was related to growth in processing volumes and fee increases passed on to merchants . processing revenue less processing costs increased from 15.5 % in 2013 to 15.9 % in 2014. while margin was favorably impacted by the implementation and growth of fees , the increase was offset by an increase in provision for chargebacks in 2014 attributed to a specific merchant that experienced a high level of chargebacks as well as a charge related to a potential legal judgment against the company . pro forma pretax net income for managed technology solutions decreased from $ 3,564,000 in the year ended december 31 , 2013 to $ 3,081,000 for the year ended december 31 , 2014. segment pro forma revenue decreased by 10 % due primarily to a reduction in web hosting revenue driven by a reduction in active plans . it continues to be management 's intent to increase revenue and margin per plan through higher service offerings to customers which include cloud-based applications . management has broadened the company 's focus beyond the microsoft web platform by now providing its platform capabilities to include open source web applications which have become increasingly attractive to web developers and resellers . in december 2014 , a company subsidiary closed its fifth securitization issuing an additional $ 31,700,000 in notes with an “ a ” rating under s & p see securitzation transactions in part ii item 7. consolidated results of operations post bdc election : as a bdc , we are subject to certain constraints on our operations , including limitations imposed by the 1940 act . in addition , due to the conversion from an operating company to a bdc on november 12 , 2014 , there is no prior period results to compare the reportable period to , and the results below only reflect the results of the company for the period november 12 , 2014 through december 31 , 2014 . 56 investment income total investment income was $ 1,976,000 for the period november 12 , 2014 through december 31 , 2014. investment income from non-controlled non-affiliates was $ 1,912,000 and consisted of $ 1,080,000 in interest income earned primarily from our sba loan portfolio . servicing income earned was $ 562,000 related to our sba loan portfolio . other income from non-controlled non-affiliates for the period was $ 270,000 and consists of fees earned such as closing , packaging , and late payment fees related to our sba loan portfolio . investment income from controlled affiliate investments was $ 64,000 for the period november 12 , 2014 through december 31 , 2014 and consisted of $ 37,000 in dividend income from a controlled portfolio company and $ 23,000 of interest income from various controlled portfolio companies . expenses total expenses for the period post bdc election were $ 4,305,000. total operating expenses for the period consisted principally of salaries and benefits , interest expense , professional fees and general and administrative expenses . salaries and benefits relate to our lending subsidiary and corporate employees of the bdc . interest expense relates to the term loan held by the bdc , the revolving credit facility of sbf and the securitization notes payable . since the company will not be eligible for the ric election until 2015 , the company recorded a tax provision for the period which is reflective of the company filing a consolidated c-corp return for the full year . as a result , the company recorded a tax provision for the period november 12 , 2014 through december 31 , 2014 of $ 194,000. net realized gains and net unrealized appreciation and depreciation realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period , net of recoveries . the net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period , including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized . for the period november 12 , 2014 through december 31 , 2014 , we had net realized gains totaling $ 595,000 primarily due to the sale of non-controlled non-affiliate investments ( sba loans ) into a secondary market during the period . for the period november 12 , 2014 through december 31 , 2014 , net unrealized appreciation on non-affiliate investments totaled $ 2,733,000 which was primarily due to unrealized appreciation on 30 non-affiliate debt investments which have not yet traded as of december 31 , 2014. business segment results : the results of the company 's reportable business segments presented for the full year on a pro forma basis are discussed below . story_separator_special_tag the company used an assumed prepayment speed of 19 % based on current market conditions and historical experience for the loan portfolio , against a prepayment curve developed from nsbf historical experience to calculate expected loan prepayments in a given year . defaults are defined as any loan placed on non-accrual status as of december 31 , 2014. the cumulative default rate , defined as the percent of loan balance that will enter final liquidation in a given year , was estimated to be 25 % , and was derived from nsbf historical experience . the mix of nsbf 's loan portfolio continues to shift from start-up businesses , to predominately existing businesses . our historical default and loss rates demonstrate that this particular segment ( i.e . existing business ) of our sba loan portfolio continues to experience the lowest rate of defaults and ultimate losses over our twelve year history of originating loans . when computing the cumulative default rate to be applied to the performing portfolio loan balances , the company excluded the last three years of originations as those loans have not seasoned yet . the discounted cash flow analysis resulted in a price equivalent of 94.80 % of the par amount on our performing loans held for investment . other general and administrative costs increased by $ 1,323,000 when compared to the comparable period of the prior year . the increase was mainly attributed to increases in loan origination costs of $ 339,000 , loan recovery and servicing expenses of $ 623,000 and additional marketing expense of $ 289,000 in connection with our television ad campaign for the year ended december 31 , 2014. the increase of loan originations and the size of the portfolio , combined with improvements in interest income , generated by the addition to and enhanced performance of the portfolio , were sufficient to offset additional salaries , servicing and origination expenses . the resulting pretax income of $ 12,874,000 was a 27 % improvement over pretax income of $ 10,143,000 for the year ended december 31 , 2013. the following tables set forth distribution by business type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_11_th as of december 31 , 2013 replace_table_token_12_th 63 the following tables set forth distribution by borrower 's credit score of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively as of december 31 , 2014 replace_table_token_13_th as of december 31 , 2013 replace_table_token_14_th the following tables set forth distribution by primary collateral type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 64 replace_table_token_15_th as of december 31 , 2013 replace_table_token_16_th the following tables set forth distribution by days delinquent of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_17_th as of december 31 , 2013 65 replace_table_token_18_th comparison of the years ended december 31 , 2013 and december 31 , 2012 for the year ended december 31 , 2013 , the company recognized $ 19,456,000 of premium income from 167 guaranteed loans sold aggregating $ 131,733,000. during 2012 , the company recognized $ 12,367,000 of premium income from 105 guaranteed loans sold totaling $ 84,743,000. the increase in premium income for the year ended december 31 , 2013 is the result of an increased number of loans sold as compared with the prior period . sale prices on guaranteed loan sales averaged 112.32 % for the twelve months ended december 31 , 2013 compared with 112.22 % for the twelve months ended december 31 , 2012. the $ 297,000 decline in total servicing income was attributable primarily to the decrease in fdic servicing income of $ 1,278,000 as a result of the sale of a portion of that portfolio , which was offset by an increase in other third party loan servicing of $ 511,000. with the addition in november 2013 of the community south bank portfolio , which we service for the fdic , as well as the addition of other third party loan servicing contracts in 2013 , the average third party servicing portfolio increased from $ 195,670,000 for the twelve month period ended december 31 , 2012 to $ 232,410,000 for the same twelve month period in 2013. servicing fees received on the nsbf portfolio increased by $ 471,000 period over period and was attributable to the expansion of the nsbf originated portfolio in which we earn servicing income . the portfolio increased from an average of $ 238,590,000 for the twelve month period ending december 31 , 2012 to an average of $ 314,486,000 for the same twelve month period in 2013. this increase was the direct result of increased loan originations in 2013. interest income increased by $ 1,432,000 for the year ended december 31 , 2013 as compared to the same period in 2012 as a result of the average outstanding performing portfolio of sba loans held for investment increasing to $ 72,337,000 from $ 48,512,000 for the years ended december 31 , 2013 and 2012 , respectively . other income increased by $ 772,000 for the year ended december 31 , 2013 as compared to the same period in 2012. the increase is primarily attributable to nsbf which increased $ 616,000 period over period and included an increase of $ 333,000 in consulting fee income from the fdic and an increase in packaging and other servicing fee income of $ 188,000. the remaining increase was attributable to loan recovery and various loan-related fee income . additionally ,
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1,009 | interest expense in 2018 decreased to $ 51.5 million from $ 54.8 million in 2017 primarily as a result of a lower overall average interest rate during the year on our outstanding indebtedness . in 2018 , we incurred expenses of $ 7.0 million in connection with the legal cost award and $ 5.3 million in an acquisition commitment fee related to our acquisition of mpr . in 2018 , we incurred other expenses of $ 5.4 million primarily due to a foreign exchange loss on the strengthening of the dollar on our canadian dollar denominated cash held to purchase mpr . during 2018 , income tax expense increased to $ 48.7 million from $ 33.5 million in 2017 primarily due to higher taxable income for our german mills . in 2018 , record net income resulted in our loss carryforwards and other deductions being reduced , resulting in current income taxes of $ 32.1 million . in 2018 , after giving effect to costs of $ 33.7 million , or $ 0.52 per basic and $ 0.51 per diluted share , for the loss on the redemption of senior notes , the legal cost award and the acquisition commitment fee , our net income increased to $ 128.6 million , or $ 1.97 per basic and $ 1.96 per diluted share , from $ 70.5 million , or $ 1.09 per basic and $ 1.08 per diluted share , after giving effect to costs of $ 10.7 million for the loss on the redemption of senior notes in 2017. in 2018 , operating ebitda increased by approximately 44 % to $ 364.6 million from $ 253.8 million in 2017 as higher nbsk pulp sales realizations more than offset higher per unit fiber costs , higher maintenance costs and lower energy and pulp sales volumes . ( 69 ) pulp segment year ended december 31 , 2018 compared to year ended december 31 , 2017 selected financial information replace_table_token_22_th ( 1 ) results of mpr included from december 10 , 2018. pulp revenues in 2018 increased by approximately 22 % to $ 1,190.6 million from $ 979.6 million in 2017 due to higher sales realizations and the inclusion of $ 29.8 million of revenues from the mpr acquisition partially offset by lower sales volumes . energy and chemical revenues decreased by approximately 16 % to $ 77.6 million in 2018 from $ 92.1 million in 2017 primarily due to scheduled maintenance work on one turbine at each of our stendal and celgar mills and lower pulp production . the turbine at the stendal mill was taken offline for a scheduled maintenance in april 2018 and did not resume service until july 2018. the turbine at the celgar mill was taken offline to complete maintenance work identified during the second quarter shut and did not resume service until late august 2018. nbsk pulp production decreased by approximately 4 % to 1,451,327 admts in 2018 from 1,507,019 admts , being an annual production record , in 2017. in 2018 , with the acquisition of mpr , we also produced 21,263 admts of nbhk pulp . in 2018 , we had annual scheduled maintenance downtime of 54 days ( approximately 75,600 admts ) , compared to 35 days ( approximately 48,000 admts ) in 2017. we estimate that such maintenance downtime in 2018 adversely impacted our operating income by approximately $ 72.9 million , comprised of approximately $ 45.3 million in direct out-of-pocket expenses and the balance in reduced production . many of our competitors that report their financial results using international financial reporting standards , referred to as ifrs , capitalize their direct costs of maintenance downtime . nbsk pulp sales volumes decreased by approximately 6 % to 1,417,961 admts in 2018 compared to 1,515,084 admts in 2017 primarily due to lower production . in 2018 , we also sold 22,907 admts of nbhk pulp . in 2018 , list prices for nbsk pulp increased from 2017 , largely as a result of continued steady demand . average list prices for nbsk pulp in europe were approximately $ 1,183 per admt in 2018 , compared to approximately $ 901 per admt in 2017. average list prices for nbsk pulp in china and north america were approximately $ 878 per admt and $ 1,337 per admt , respectively , in 2018 compared to approximately $ 712 per admt and $ 1,105 per admt , respectively , in 2017. average nbsk pulp sales realizations increased by approximately 28 % to $ 821 per admt in 2018 from approximately $ 640 per admt in 2017 due to higher list prices . in 2018 , nbhk pulp sales realizations were $ 707 per admt . as a result of the effect of a stronger dollar at the end of 2018 , we recorded a positive impact on our dollar denominated cash and receivables held at our operations , which was mostly offset by the negative impact of an overall 5 % weaker dollar against the euro , which increased the dollar cost of our euro denominated costs and expenses compared to 2017. in 2018 , the net positive impact on operating income due to foreign exchange was $ 3.9 million . ( 70 ) costs and expenses in 2018 increased by approximately 10 % to $ 995.2 million from $ 901.8 million in 2017 primarily due to higher per unit fiber costs , higher maintenance costs and costs and expenses from our acquisition of mpr partially offset by lower sales volumes . in 2018 , depreciation and amortization increased to $ 87.6 million from $ 80.8 million in 2017 primarily due to the negative impact of a weaker dollar on our euro denominated depreciation expense , capital improvements at the celgar mill and the depreciation expense for the acquisition of mpr . story_separator_special_tag in 2017 , net income increased to $ 70.5 million , or $ 1.09 per basic and $ 1.08 per diluted share , from $ 34.9 million , or $ 0.54 per share , in 2016 . ( 72 ) in 2017 , operating ebitda increased by approximately 36 % to $ 253.8 million from $ 187.1 million in 2016 primarily as a result of higher pulp sales realizations and , to a lesser degree , the inclusion of our wood products segment . pulp segment year ended december 31 , 2017 compared to year ended december 31 , 2016 selected financial information replace_table_token_24_th pulp revenues in 2017 increased by approximately 16 % to $ 979.6 million from $ 847.3 million in 2016 due to higher sales realizations and sales volumes . energy and chemical revenues increased by approximately 9 % to $ 92.1 million in 2017 compared to $ 84.3 million in 2016 primarily due to higher sales volumes . pulp production increased by approximately 6 % to 1,507,019 admts , being an annual production record , in 2017 from 1,428,384 admts in 2016. in 2017 , we had annual maintenance downtime of 35 days ( approximately 48,000 admts ) , compared to 43 days ( approximately 61,400 admts ) in 2016. we estimate that such maintenance downtime in 2017 adversely impacted our operating income by approximately $ 36.8 million , comprised of approximately $ 28.1 million in direct out-of-pocket expenses and the balance in reduced production . many of our competitors that report their financial results using ifrs capitalize their direct costs of maintenance downtime . pulp sales volumes increased by approximately 6 % to 1,515,084 admts in 2017 compared to 1,428,672 admts in 2016 primarily due to continued steady demand from both china and europe and record production . in 2017 , list prices for nbsk pulp increased from 2016 , largely as a result of continued steady demand . average list prices for nbsk pulp in europe were approximately $ 901 per admt in 2017 , compared to approximately $ 803 per admt in 2016. average list prices for nbsk pulp in china and north america were approximately $ 712 per admt and $ 1,105 per admt , respectively , in 2017 , compared to approximately $ 599 per admt and $ 978 per admt , respectively , in 2016. average pulp sales realizations increased by approximately 9 % to $ 640 per admt in 2017 from approximately $ 586 per admt in 2016 due to higher list prices . in 2017 , the dollar was 2 % weaker against the euro and canadian dollar compared to 2016 which increased the dollar cost of our euro and canadian dollar denominated costs and expenses and contributed to a negative foreign exchange impact on operating income of approximately $ 28.0 million when compared to 2016. costs and expenses in 2017 increased by approximately 12 % to $ 901.8 million from $ 807.0 million in 2016 primarily due to higher sales volumes , the negative impact of a weaker dollar on our euro and canadian dollar denominated costs and expenses and the reversal in 2016 of accruals for wastewater fees at our german mills of $ 20.8 million . ( 73 ) in 2017 , depreciation and amortization increased to $ 80.8 million from $ 71.5 million in 2016 due to the completion of several major capital projects . on average , in 2017 overall per unit fiber costs in germany and for our celgar mill were flat compared to 2016 primarily as a result of a balanced wood market in both germany and the celgar mill 's fiber basket . transportation costs increased by approximately 12 % to $ 76.4 million in 2017 from $ 68.1 million in 2016 primarily due to higher sales volumes . in 2017 , pulp segment operating income increased by approximately 37 % to $ 171.3 million from $ 124.6 million in 2016 primarily due to higher pulp sales realizations and sales volumes , partially offset by the negative impact of a weaker dollar and the reversal in 2016 of accruals for wastewater fees . wood products segment year ended december 31 , 2017 selected financial information year ended december 31 , 2017 ( in thousands ) lumber revenues $ 82,176 energy revenues $ 8,872 wood residual revenues $ 6,382 depreciation and amortization $ 4,060 operating income $ 5,610 in 2017 , we had lumber revenues of $ 82.2 million , the majority of which was in the european market . european lumber markets were generally strong and prices steady and near multi-year highs . we produced 281.3 mmfbm of lumber . lumber sales volumes were 213.5 mmfbm as we completed our inventory build-up to support sales to the u.s. market . average lumber sales realizations in 2017 were approximately $ 385 per mfbm . in 2017 , energy and other by-product revenues were approximately $ 15.3 million and we sold 73,698 mwh of electricity . our fiber costs were approximately 80 % of our cash production costs . the ramping up of production resulted in our purchasing large volumes of sawlogs in a short period . this resulted in our sawlog costs being marginally higher than our regional competitors . in 2017 we started realizing on identified fiber synergies between the friesau mill and our rosenthal pulp mill . during 2017 , the facility shipped approximately 738,300 cubic meters of chips to rosenthal , and rosenthal shipped approximately 70,100 cubic meters of waste wood to friesau . both volumes are in line with our forecasts and have begun to lower costs at both mills . as at december 31 , 2017 , we estimate we have realized approximately $ 6.9 million of our expected synergy savings . in 2017 , depreciation and amortization for our wood products segment was $ 4.1 million . in 2017 , our wood products segment operating income was $ 5.6 million . ( 74 )
| cash flows from operating activities cash from operations includes : cash received from customers ; cash paid to employees and suppliers ; cash paid for interest on our debt ; and cash paid or received for taxes . cash provided by operating activities in 2018 increased to $ 236.7 million from $ 141.9 million in 2017 and $ 140.8 million in 2016 due to higher operating income . in 2018 , an increase in accounts receivable used cash of $ 10.4 million . in 2017 , an increase in accounts receivable used cash of $ 64.9 million , of which $ 8.3 million was related to our wood products segment . in 2016 , a decrease in accounts receivable provided cash of $ 9.5 million . in 2018 , an increase in inventories used cash of $ 58.1 million . in 2017 , an increase in inventories used cash of $ 20.0 million , reflecting an increase of $ 27.0 million from our wood products segment and a decrease of $ 7.0 million in our pulp segment . a decrease in inventories provided cash of $ 6.8 million in 2016. an increase in accounts payable and accrued expenses provided cash of $ 38.0 million , including a legal cost award in 2018. in 2017 , an increase in ( 76 ) accounts payable and accrued expenses provided cash of $ 37.2 million , of which $ 15.6 million was related to our wood products segment , and in 2016 a decrease in accounts payable and accrued expenses used cash of $ 10.3 million . cash flows from investing activities cash from investing activities includes : acquisitions of property , plant and equipment and businesses ; proceeds from the sale of assets ; and purchases and sales of short-term investments . investing activities in 2018 used cash of $ 467.5 million primarily related to the acquisitions of mpr for $ 344.6 million and santanol for $ 35.7 million and capital expenditures of $ 87.0 million .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from operating activities cash from operations includes : cash received from customers ; cash paid to employees and suppliers ; cash paid for interest on our debt ; and cash paid or received for taxes . cash provided by operating activities in 2018 increased to $ 236.7 million from $ 141.9 million in 2017 and $ 140.8 million in 2016 due to higher operating income . in 2018 , an increase in accounts receivable used cash of $ 10.4 million . in 2017 , an increase in accounts receivable used cash of $ 64.9 million , of which $ 8.3 million was related to our wood products segment . in 2016 , a decrease in accounts receivable provided cash of $ 9.5 million . in 2018 , an increase in inventories used cash of $ 58.1 million . in 2017 , an increase in inventories used cash of $ 20.0 million , reflecting an increase of $ 27.0 million from our wood products segment and a decrease of $ 7.0 million in our pulp segment . a decrease in inventories provided cash of $ 6.8 million in 2016. an increase in accounts payable and accrued expenses provided cash of $ 38.0 million , including a legal cost award in 2018. in 2017 , an increase in ( 76 ) accounts payable and accrued expenses provided cash of $ 37.2 million , of which $ 15.6 million was related to our wood products segment , and in 2016 a decrease in accounts payable and accrued expenses used cash of $ 10.3 million . cash flows from investing activities cash from investing activities includes : acquisitions of property , plant and equipment and businesses ; proceeds from the sale of assets ; and purchases and sales of short-term investments . investing activities in 2018 used cash of $ 467.5 million primarily related to the acquisitions of mpr for $ 344.6 million and santanol for $ 35.7 million and capital expenditures of $ 87.0 million .
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Suspicious Activity Report : interest expense in 2018 decreased to $ 51.5 million from $ 54.8 million in 2017 primarily as a result of a lower overall average interest rate during the year on our outstanding indebtedness . in 2018 , we incurred expenses of $ 7.0 million in connection with the legal cost award and $ 5.3 million in an acquisition commitment fee related to our acquisition of mpr . in 2018 , we incurred other expenses of $ 5.4 million primarily due to a foreign exchange loss on the strengthening of the dollar on our canadian dollar denominated cash held to purchase mpr . during 2018 , income tax expense increased to $ 48.7 million from $ 33.5 million in 2017 primarily due to higher taxable income for our german mills . in 2018 , record net income resulted in our loss carryforwards and other deductions being reduced , resulting in current income taxes of $ 32.1 million . in 2018 , after giving effect to costs of $ 33.7 million , or $ 0.52 per basic and $ 0.51 per diluted share , for the loss on the redemption of senior notes , the legal cost award and the acquisition commitment fee , our net income increased to $ 128.6 million , or $ 1.97 per basic and $ 1.96 per diluted share , from $ 70.5 million , or $ 1.09 per basic and $ 1.08 per diluted share , after giving effect to costs of $ 10.7 million for the loss on the redemption of senior notes in 2017. in 2018 , operating ebitda increased by approximately 44 % to $ 364.6 million from $ 253.8 million in 2017 as higher nbsk pulp sales realizations more than offset higher per unit fiber costs , higher maintenance costs and lower energy and pulp sales volumes . ( 69 ) pulp segment year ended december 31 , 2018 compared to year ended december 31 , 2017 selected financial information replace_table_token_22_th ( 1 ) results of mpr included from december 10 , 2018. pulp revenues in 2018 increased by approximately 22 % to $ 1,190.6 million from $ 979.6 million in 2017 due to higher sales realizations and the inclusion of $ 29.8 million of revenues from the mpr acquisition partially offset by lower sales volumes . energy and chemical revenues decreased by approximately 16 % to $ 77.6 million in 2018 from $ 92.1 million in 2017 primarily due to scheduled maintenance work on one turbine at each of our stendal and celgar mills and lower pulp production . the turbine at the stendal mill was taken offline for a scheduled maintenance in april 2018 and did not resume service until july 2018. the turbine at the celgar mill was taken offline to complete maintenance work identified during the second quarter shut and did not resume service until late august 2018. nbsk pulp production decreased by approximately 4 % to 1,451,327 admts in 2018 from 1,507,019 admts , being an annual production record , in 2017. in 2018 , with the acquisition of mpr , we also produced 21,263 admts of nbhk pulp . in 2018 , we had annual scheduled maintenance downtime of 54 days ( approximately 75,600 admts ) , compared to 35 days ( approximately 48,000 admts ) in 2017. we estimate that such maintenance downtime in 2018 adversely impacted our operating income by approximately $ 72.9 million , comprised of approximately $ 45.3 million in direct out-of-pocket expenses and the balance in reduced production . many of our competitors that report their financial results using international financial reporting standards , referred to as ifrs , capitalize their direct costs of maintenance downtime . nbsk pulp sales volumes decreased by approximately 6 % to 1,417,961 admts in 2018 compared to 1,515,084 admts in 2017 primarily due to lower production . in 2018 , we also sold 22,907 admts of nbhk pulp . in 2018 , list prices for nbsk pulp increased from 2017 , largely as a result of continued steady demand . average list prices for nbsk pulp in europe were approximately $ 1,183 per admt in 2018 , compared to approximately $ 901 per admt in 2017. average list prices for nbsk pulp in china and north america were approximately $ 878 per admt and $ 1,337 per admt , respectively , in 2018 compared to approximately $ 712 per admt and $ 1,105 per admt , respectively , in 2017. average nbsk pulp sales realizations increased by approximately 28 % to $ 821 per admt in 2018 from approximately $ 640 per admt in 2017 due to higher list prices . in 2018 , nbhk pulp sales realizations were $ 707 per admt . as a result of the effect of a stronger dollar at the end of 2018 , we recorded a positive impact on our dollar denominated cash and receivables held at our operations , which was mostly offset by the negative impact of an overall 5 % weaker dollar against the euro , which increased the dollar cost of our euro denominated costs and expenses compared to 2017. in 2018 , the net positive impact on operating income due to foreign exchange was $ 3.9 million . ( 70 ) costs and expenses in 2018 increased by approximately 10 % to $ 995.2 million from $ 901.8 million in 2017 primarily due to higher per unit fiber costs , higher maintenance costs and costs and expenses from our acquisition of mpr partially offset by lower sales volumes . in 2018 , depreciation and amortization increased to $ 87.6 million from $ 80.8 million in 2017 primarily due to the negative impact of a weaker dollar on our euro denominated depreciation expense , capital improvements at the celgar mill and the depreciation expense for the acquisition of mpr . story_separator_special_tag in 2017 , net income increased to $ 70.5 million , or $ 1.09 per basic and $ 1.08 per diluted share , from $ 34.9 million , or $ 0.54 per share , in 2016 . ( 72 ) in 2017 , operating ebitda increased by approximately 36 % to $ 253.8 million from $ 187.1 million in 2016 primarily as a result of higher pulp sales realizations and , to a lesser degree , the inclusion of our wood products segment . pulp segment year ended december 31 , 2017 compared to year ended december 31 , 2016 selected financial information replace_table_token_24_th pulp revenues in 2017 increased by approximately 16 % to $ 979.6 million from $ 847.3 million in 2016 due to higher sales realizations and sales volumes . energy and chemical revenues increased by approximately 9 % to $ 92.1 million in 2017 compared to $ 84.3 million in 2016 primarily due to higher sales volumes . pulp production increased by approximately 6 % to 1,507,019 admts , being an annual production record , in 2017 from 1,428,384 admts in 2016. in 2017 , we had annual maintenance downtime of 35 days ( approximately 48,000 admts ) , compared to 43 days ( approximately 61,400 admts ) in 2016. we estimate that such maintenance downtime in 2017 adversely impacted our operating income by approximately $ 36.8 million , comprised of approximately $ 28.1 million in direct out-of-pocket expenses and the balance in reduced production . many of our competitors that report their financial results using ifrs capitalize their direct costs of maintenance downtime . pulp sales volumes increased by approximately 6 % to 1,515,084 admts in 2017 compared to 1,428,672 admts in 2016 primarily due to continued steady demand from both china and europe and record production . in 2017 , list prices for nbsk pulp increased from 2016 , largely as a result of continued steady demand . average list prices for nbsk pulp in europe were approximately $ 901 per admt in 2017 , compared to approximately $ 803 per admt in 2016. average list prices for nbsk pulp in china and north america were approximately $ 712 per admt and $ 1,105 per admt , respectively , in 2017 , compared to approximately $ 599 per admt and $ 978 per admt , respectively , in 2016. average pulp sales realizations increased by approximately 9 % to $ 640 per admt in 2017 from approximately $ 586 per admt in 2016 due to higher list prices . in 2017 , the dollar was 2 % weaker against the euro and canadian dollar compared to 2016 which increased the dollar cost of our euro and canadian dollar denominated costs and expenses and contributed to a negative foreign exchange impact on operating income of approximately $ 28.0 million when compared to 2016. costs and expenses in 2017 increased by approximately 12 % to $ 901.8 million from $ 807.0 million in 2016 primarily due to higher sales volumes , the negative impact of a weaker dollar on our euro and canadian dollar denominated costs and expenses and the reversal in 2016 of accruals for wastewater fees at our german mills of $ 20.8 million . ( 73 ) in 2017 , depreciation and amortization increased to $ 80.8 million from $ 71.5 million in 2016 due to the completion of several major capital projects . on average , in 2017 overall per unit fiber costs in germany and for our celgar mill were flat compared to 2016 primarily as a result of a balanced wood market in both germany and the celgar mill 's fiber basket . transportation costs increased by approximately 12 % to $ 76.4 million in 2017 from $ 68.1 million in 2016 primarily due to higher sales volumes . in 2017 , pulp segment operating income increased by approximately 37 % to $ 171.3 million from $ 124.6 million in 2016 primarily due to higher pulp sales realizations and sales volumes , partially offset by the negative impact of a weaker dollar and the reversal in 2016 of accruals for wastewater fees . wood products segment year ended december 31 , 2017 selected financial information year ended december 31 , 2017 ( in thousands ) lumber revenues $ 82,176 energy revenues $ 8,872 wood residual revenues $ 6,382 depreciation and amortization $ 4,060 operating income $ 5,610 in 2017 , we had lumber revenues of $ 82.2 million , the majority of which was in the european market . european lumber markets were generally strong and prices steady and near multi-year highs . we produced 281.3 mmfbm of lumber . lumber sales volumes were 213.5 mmfbm as we completed our inventory build-up to support sales to the u.s. market . average lumber sales realizations in 2017 were approximately $ 385 per mfbm . in 2017 , energy and other by-product revenues were approximately $ 15.3 million and we sold 73,698 mwh of electricity . our fiber costs were approximately 80 % of our cash production costs . the ramping up of production resulted in our purchasing large volumes of sawlogs in a short period . this resulted in our sawlog costs being marginally higher than our regional competitors . in 2017 we started realizing on identified fiber synergies between the friesau mill and our rosenthal pulp mill . during 2017 , the facility shipped approximately 738,300 cubic meters of chips to rosenthal , and rosenthal shipped approximately 70,100 cubic meters of waste wood to friesau . both volumes are in line with our forecasts and have begun to lower costs at both mills . as at december 31 , 2017 , we estimate we have realized approximately $ 6.9 million of our expected synergy savings . in 2017 , depreciation and amortization for our wood products segment was $ 4.1 million . in 2017 , our wood products segment operating income was $ 5.6 million . ( 74 )
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1,010 | dr. lord brings extensive innovation , executive management and board experience to his new role of chairman . on october 1 , 2017 , we appointed a new senior vice president and chief financial officer with proven leadership and technical experience in finance and business management in both public and private companies . on november 1 , 2017 , we appointed richard b. lanman , m.d . to our board , a well-known healthcare innovator and entrepreneur who specializes in the development and adoption of novel healthcare technologies . in january , we promoted from within a new vice president of u.s. sales , with a wealth of experience and knowledge about our company and the industry . in december 2017 , we completed a rights offering with holders of our common stock as of the record date of 5:00 p.m. , eastern time on november 8 , 2017. gross proceeds from the sale were $ 12.0 million , and net proceeds , after offering expenses of approximately $ 0.6 million , were approximately $ 11.4 million . in april 2017 , we completed a private placement with several institutional and individual investors , and certain of our directors and officers . gross proceeds from the sale were $ 10.5 million , and net proceeds , after offering expenses of approximately $ 0.3 million , were approximately $ 10.2 million . in february 2017 , we launched the fifth-generation waterlase express all-tissue laser system . waterlase express represents the newest addition to our waterlase portfolio of er , cr : ysgg all-tissue lasers . waterlase express was exhibited at the chicago dental society 's mid-winter meeting in february 2017. designed for easy and intuitive operation , integrated learning , and portability , waterlase express is our next-generation waterlase system . waterlase express has regulatory clearance for commercial distribution from the fda , and is available for sale to dentists in the u.s. as well as select international markets in europe , the middle east , and asia . 37 in january 2017 , we received fda clearance and launched epic pro , a powerful and innovative dental diode laser system , making it available for sale in the u.s. , as well as in select countries in europe , the middle east , and asia . the epic pro , which offers more power than most diode laser s in dentistry , is the first product to be introduced resulting from our strategic development agreement with ipg medical . the newest addition to the epic family of dental soft-tissue lasers , epic pro features several new innovations , such as a new super pulse technology for more precise , enhanced laser tissue cutting ; real-time automatic power control to enhance speed and consistency when performing surgery ; and pre-initiated , bendable , disposable tips with new smart tip technology to ensure tip performance and quality . t he epic pro laser system has fda clearance for dental and surgical operations , intended for us e in contact and non-contact techniques for incision , excision , vaporization , ablation , hemostasis , or coagulation of intraoral and extra-oral soft tissue ( including marginal and interdental gingiva and epithelial lining of free gingiva ) . in summary , 2017 was a year of continued transformation for biolase , positioning the company in executing on our strategic goals of returning biolase to a successful growing company and continuing as the clear worldwide industry leader in the dental laser segment . although we have made improvements throughout the year , it will take time for the financial statements to reflect the changes and as such , for the three years ended december 31 , 2017 we have reported recurring losses from operations and have not generated cash from operations . our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . as a result , the opinion we have received from our independent registered public accounting firm , on our consolidated financial statements , contains an explanatory paragraph stating that there is a substantial doubt regarding our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern . critical accounting policies the preparation of consolidated financial statements and rela ted disclosures in conformity with generally accepted accounting principles in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our field sales forc e and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility , and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . story_separator_special_tag the warrants became exercisable on february 8 , 2017 , six months after the closing of the private placement , and have a term of five years from the date of issuance . we are using the proceeds of the sale for working capital and general corporate purposes . in connection with the registration rights granted to these investors , we filed a registration statement on form s-3 with the sec , which was declared effective on november 3 , 2016. in accordance with applicable accounting standards , the $ 10.0 million gross proceeds from sale were allocated to the convertible preferred stock and warrants in the amount of $ 8.9 million and $ 1.1 million , respectively . the allocation was based on the relative fair values of the underlying common stock and warrants as of the commitment date , with the fair value of the warrants determined using a black scholes model . this transaction resulted in a discount from allocation of proceeds to separable instruments of $ 1.1 million and a beneficial conversion to common stock with a value of $ 1.1 million , which has been reflected as a deemed distribution to preferred shareholders in the year ended december 31 , 2016 . 41 results of operations the following table sets forth certain data from our operating results for each of the years ended december 31 , 2017 , 2016 , and 2015 , expressed as percentages of revenue : replace_table_token_4_th the following table summarizes our net revenues by category for the years ended december 31 , 2017 , 2016 , and 2015 ( dollars in thousands ) : replace_table_token_5_th non-gaap disclosure in addition to the financial information prepared in conformity with gaap , we provide certain historical non-gaap financial information . management believes that these non-gaap financial measures assist investors in making comparisons of period-to-period operating results and that , in some respects , these non-gaap financial measures are more indicative of the company 's ongoing core operating performance than their gaap equivalents . management believes that the presentation of this non-gaap financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures , compensation strategies , derivative instruments , and amortization methods , which provides a more complete understanding of our financial performance , competitive position , and prospects for the future . however , the non-gaap financial measures presented in this form 10-k have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with gaap . therefore , investors should consider non-gaap financial measures in addition to , and not as a substitute for , or as superior to , measures of financial performance prepared in accordance with gaap . further , the non-gaap financial measures presented by the company may be different from similarly named non-gaap financial measures used by other companies . 42 non-gaap net loss . management uses non-gaap net loss ( defined as net loss before interest , taxes , depreciation and amortization , stock-based compe nsation , and other non-cash compensation ) in its evaluation of the company 's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process . management believes that this non-gaap financial information reflects an additional way of viewing aspects of our business that , when viewed with our gaap results , provides a more complete understanding of factors and trends affecting our business . non-gaap net loss for the periods presented is as follows ( in thousands ) : replace_table_token_6_th comparison of results of operations year ended december 31 , 2017 compared with year ended december 31 , 2016 net revenue . net revenue for the year ended december 31 , 2017 ( “ fiscal 2017 ” ) was $ 46.9 million , a decrease of $ 4.9 million , or 9 % , as compared with net revenue of $ 51.8 million for the year ended december 31 , 2016 ( “ fiscal 2016 ” ) . domestic revenues were $ 29.3 million , or 62 % of net revenue , for fiscal 2017 compared to $ 33.4 million , or 64 % of net revenue , for fiscal 2016. international revenues for fiscal 2017 were $ 17.6 million , or 38 % of net revenue , compared to $ 18.4 million , or 36 % of net revenue for fiscal 2016. the decrease in year-over-year net revenue resulted from decreases in worldwide laser system revenue , international imaging systems revenue , international consumables and other revenue , international services revenue and domestic license and royalties revenue , partially offset by increases in domestic imaging systems revenue , domestic consumables and other revenue and domestic services revenue . our goal has been to refocus on strengthening our leadership position in dental markets worldwide through increased focus on our professional customers and their patients . we have strengthened our management team with new key personnel and invested in our sales resources both domestically and internationally . laser system net revenues decreased by approximately $ 6.0 million , or 17 % , in fiscal 2017 compared to fiscal 2016. the laser systems revenue decrease was driven by a 28 % decline in domestic revenue and a 3 % decline in international revenue . imaging system net revenue increased by approximately $ 0.6 million , or 20 % , in fiscal 2017 compared to fiscal 2016. this increase was due to increased overall market interest in intra-oral scanning devices , and our favorable positioning as a distributor . consumables and other net revenue , which includes products such as disposable tips and shipping revenue , increased approximately $ 0.4 million , or 6 % , in fiscal 2017 , as compared to fiscal 2016. the increase in consumables and other net revenue was primarily a result
| liquidity and capital resources at december 31 , 2017 , we had approximately $ 11.9 million in cash and cash equivalents , including restricted cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 2.7 million from december 31 , 2016 was primarily due to cash provided by financing activities of $ 21.6 million , partially offset by cash used in operating and investing act ivities of $ 18.4 million and $ 0.7 million , respectively , and the effect of exchange rates on cash of $ 0.3 million . the $ 18.4 million of net cash used in operating activities was primarily driven by the company 's net loss of $ 16.9 million during the year . at december 31 , 2017 , we had approximately $ 22.7 million in working capital . our principal sources of liquidity at december 31 , 2017 , consisted of approximately $ 11.9 million in cash , cash equivalents and restricted cash and $ 10.1 million of net accounts receivable . we have reported recurring losses from operations and have not generated cash from operations for the three years ended december 31 , 2017. our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .
| 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. |
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 at december 31 , 2017 , we had approximately $ 11.9 million in cash and cash equivalents , including restricted cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 2.7 million from december 31 , 2016 was primarily due to cash provided by financing activities of $ 21.6 million , partially offset by cash used in operating and investing act ivities of $ 18.4 million and $ 0.7 million , respectively , and the effect of exchange rates on cash of $ 0.3 million . the $ 18.4 million of net cash used in operating activities was primarily driven by the company 's net loss of $ 16.9 million during the year . at december 31 , 2017 , we had approximately $ 22.7 million in working capital . our principal sources of liquidity at december 31 , 2017 , consisted of approximately $ 11.9 million in cash , cash equivalents and restricted cash and $ 10.1 million of net accounts receivable . we have reported recurring losses from operations and have not generated cash from operations for the three years ended december 31 , 2017. our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .
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Suspicious Activity Report : dr. lord brings extensive innovation , executive management and board experience to his new role of chairman . on october 1 , 2017 , we appointed a new senior vice president and chief financial officer with proven leadership and technical experience in finance and business management in both public and private companies . on november 1 , 2017 , we appointed richard b. lanman , m.d . to our board , a well-known healthcare innovator and entrepreneur who specializes in the development and adoption of novel healthcare technologies . in january , we promoted from within a new vice president of u.s. sales , with a wealth of experience and knowledge about our company and the industry . in december 2017 , we completed a rights offering with holders of our common stock as of the record date of 5:00 p.m. , eastern time on november 8 , 2017. gross proceeds from the sale were $ 12.0 million , and net proceeds , after offering expenses of approximately $ 0.6 million , were approximately $ 11.4 million . in april 2017 , we completed a private placement with several institutional and individual investors , and certain of our directors and officers . gross proceeds from the sale were $ 10.5 million , and net proceeds , after offering expenses of approximately $ 0.3 million , were approximately $ 10.2 million . in february 2017 , we launched the fifth-generation waterlase express all-tissue laser system . waterlase express represents the newest addition to our waterlase portfolio of er , cr : ysgg all-tissue lasers . waterlase express was exhibited at the chicago dental society 's mid-winter meeting in february 2017. designed for easy and intuitive operation , integrated learning , and portability , waterlase express is our next-generation waterlase system . waterlase express has regulatory clearance for commercial distribution from the fda , and is available for sale to dentists in the u.s. as well as select international markets in europe , the middle east , and asia . 37 in january 2017 , we received fda clearance and launched epic pro , a powerful and innovative dental diode laser system , making it available for sale in the u.s. , as well as in select countries in europe , the middle east , and asia . the epic pro , which offers more power than most diode laser s in dentistry , is the first product to be introduced resulting from our strategic development agreement with ipg medical . the newest addition to the epic family of dental soft-tissue lasers , epic pro features several new innovations , such as a new super pulse technology for more precise , enhanced laser tissue cutting ; real-time automatic power control to enhance speed and consistency when performing surgery ; and pre-initiated , bendable , disposable tips with new smart tip technology to ensure tip performance and quality . t he epic pro laser system has fda clearance for dental and surgical operations , intended for us e in contact and non-contact techniques for incision , excision , vaporization , ablation , hemostasis , or coagulation of intraoral and extra-oral soft tissue ( including marginal and interdental gingiva and epithelial lining of free gingiva ) . in summary , 2017 was a year of continued transformation for biolase , positioning the company in executing on our strategic goals of returning biolase to a successful growing company and continuing as the clear worldwide industry leader in the dental laser segment . although we have made improvements throughout the year , it will take time for the financial statements to reflect the changes and as such , for the three years ended december 31 , 2017 we have reported recurring losses from operations and have not generated cash from operations . our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . as a result , the opinion we have received from our independent registered public accounting firm , on our consolidated financial statements , contains an explanatory paragraph stating that there is a substantial doubt regarding our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern . critical accounting policies the preparation of consolidated financial statements and rela ted disclosures in conformity with generally accepted accounting principles in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our field sales forc e and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility , and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . story_separator_special_tag the warrants became exercisable on february 8 , 2017 , six months after the closing of the private placement , and have a term of five years from the date of issuance . we are using the proceeds of the sale for working capital and general corporate purposes . in connection with the registration rights granted to these investors , we filed a registration statement on form s-3 with the sec , which was declared effective on november 3 , 2016. in accordance with applicable accounting standards , the $ 10.0 million gross proceeds from sale were allocated to the convertible preferred stock and warrants in the amount of $ 8.9 million and $ 1.1 million , respectively . the allocation was based on the relative fair values of the underlying common stock and warrants as of the commitment date , with the fair value of the warrants determined using a black scholes model . this transaction resulted in a discount from allocation of proceeds to separable instruments of $ 1.1 million and a beneficial conversion to common stock with a value of $ 1.1 million , which has been reflected as a deemed distribution to preferred shareholders in the year ended december 31 , 2016 . 41 results of operations the following table sets forth certain data from our operating results for each of the years ended december 31 , 2017 , 2016 , and 2015 , expressed as percentages of revenue : replace_table_token_4_th the following table summarizes our net revenues by category for the years ended december 31 , 2017 , 2016 , and 2015 ( dollars in thousands ) : replace_table_token_5_th non-gaap disclosure in addition to the financial information prepared in conformity with gaap , we provide certain historical non-gaap financial information . management believes that these non-gaap financial measures assist investors in making comparisons of period-to-period operating results and that , in some respects , these non-gaap financial measures are more indicative of the company 's ongoing core operating performance than their gaap equivalents . management believes that the presentation of this non-gaap financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures , compensation strategies , derivative instruments , and amortization methods , which provides a more complete understanding of our financial performance , competitive position , and prospects for the future . however , the non-gaap financial measures presented in this form 10-k have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with gaap . therefore , investors should consider non-gaap financial measures in addition to , and not as a substitute for , or as superior to , measures of financial performance prepared in accordance with gaap . further , the non-gaap financial measures presented by the company may be different from similarly named non-gaap financial measures used by other companies . 42 non-gaap net loss . management uses non-gaap net loss ( defined as net loss before interest , taxes , depreciation and amortization , stock-based compe nsation , and other non-cash compensation ) in its evaluation of the company 's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process . management believes that this non-gaap financial information reflects an additional way of viewing aspects of our business that , when viewed with our gaap results , provides a more complete understanding of factors and trends affecting our business . non-gaap net loss for the periods presented is as follows ( in thousands ) : replace_table_token_6_th comparison of results of operations year ended december 31 , 2017 compared with year ended december 31 , 2016 net revenue . net revenue for the year ended december 31 , 2017 ( “ fiscal 2017 ” ) was $ 46.9 million , a decrease of $ 4.9 million , or 9 % , as compared with net revenue of $ 51.8 million for the year ended december 31 , 2016 ( “ fiscal 2016 ” ) . domestic revenues were $ 29.3 million , or 62 % of net revenue , for fiscal 2017 compared to $ 33.4 million , or 64 % of net revenue , for fiscal 2016. international revenues for fiscal 2017 were $ 17.6 million , or 38 % of net revenue , compared to $ 18.4 million , or 36 % of net revenue for fiscal 2016. the decrease in year-over-year net revenue resulted from decreases in worldwide laser system revenue , international imaging systems revenue , international consumables and other revenue , international services revenue and domestic license and royalties revenue , partially offset by increases in domestic imaging systems revenue , domestic consumables and other revenue and domestic services revenue . our goal has been to refocus on strengthening our leadership position in dental markets worldwide through increased focus on our professional customers and their patients . we have strengthened our management team with new key personnel and invested in our sales resources both domestically and internationally . laser system net revenues decreased by approximately $ 6.0 million , or 17 % , in fiscal 2017 compared to fiscal 2016. the laser systems revenue decrease was driven by a 28 % decline in domestic revenue and a 3 % decline in international revenue . imaging system net revenue increased by approximately $ 0.6 million , or 20 % , in fiscal 2017 compared to fiscal 2016. this increase was due to increased overall market interest in intra-oral scanning devices , and our favorable positioning as a distributor . consumables and other net revenue , which includes products such as disposable tips and shipping revenue , increased approximately $ 0.4 million , or 6 % , in fiscal 2017 , as compared to fiscal 2016. the increase in consumables and other net revenue was primarily a result
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1,011 | our three core value drivers are : obtaining profitable new business . we attempt to obtain profitable new business by using our technical expertise and application skill and our detailed knowledge of our customer base and the individual niche markets in which we operate . we have regularly been successful in identifying and developing both aftermarket and oem products to drive our growth . improving our cost structure . we are committed to maintaining and continuously improving our lean cost structure through detailed attention to the cost of each of the products that we offer and our organizational structure , with a focus on reducing the cost of each . providing highly engineered value-added products to customers . we focus on the engineering , manufacturing and marketing of a broad range of highly engineered niche products that we believe provide value to our customers . we believe we have been consistently successful in communicating to our customers the value of our products . this has generally enabled us to price our products to fairly reflect the value we provide and the resources required to do so . selective acquisition strategy . we selectively pursue the acquisition of proprietary aerospace component businesses when we see an opportunity to create value through the application of our three core value-driven operating strategies . the aerospace industry , in particular , remains highly fragmented , with many of the companies in the industry being small private businesses or small non-core operations of larger businesses . we have significant experience among our management team in executing acquisitions and integrating acquired businesses into our company and culture . as of the date of this report , we have successfully acquired approximately 60 businesses and or product lines since our formation in 1993. many of these acquisitions have been integrated into an existing transdigm production facility , which enables a higher production capacity utilization , which in turn improves gross profit levels due to the ability to spread the fixed manufacturing overhead costs over higher production volume . 25 acquisitions during the previous three fiscal years are more fully described in note 2 , “ acquisitions , ” in the notes to the consolidated financial statements included herein . critical accounting policies our consolidated financial statements have been prepared in conformity with gaap , which often requires the judgment of management in the selection and application of certain accounting principles and methods . management believes that the quality and reasonableness of our most critical policies enable the fair presentation of our financial position and results of operations . however , investors are cautioned that the sensitivity of financial statements to these methods , assumptions and estimates could create materially different results under different conditions or using different assumptions . below are those policies applied in preparing our financial statements that management believes are the most dependent on the application of estimates and assumptions . for additional accounting policies , see note 3 , “ summary of significant accounting policies , ” in the notes to the consolidated financial statements included herein . revenue recognition and related allowances : revenue is recognized from the sale of products when title and risk of loss passes to the customer , which is generally at the time of shipment . substantially all product sales are made pursuant to firm , fixed-price purchase orders received from customers . collectibility of amounts recorded as revenue is reasonably assured at the time of sale . provisions for returns , uncollectible accounts and the cost of repairs under contract warranty provisions are provided for in the same period as the related revenues are recorded and are principally based on historical results modified , as appropriate , by the most current information available . we have a history of making reasonably dependable estimates of such allowances ; however , due to uncertainties inherent in the estimation process , it is possible that actual results may vary from the estimates and the differences could be material . allowance for doubtful accounts : management estimates the allowance for doubtful accounts based on the aging of the accounts receivable and customer creditworthiness . the allowance also incorporates a provision for the estimated impact of disputes with customers . management 's estimate of the allowance amounts that are necessary includes amounts for specifically identified credit losses and estimated credit losses based on historical information . the determination of the amount of the allowance for doubtful accounts is subject to significant levels of judgment and estimation by management . depending on the resolution of potential credit and other collection issues , or if the financial condition of any of the company 's customers were to deteriorate and their ability to make required payments were to become impaired , increases in these allowances may be required . historically , changes in estimates in the allowance for doubtful accounts have not been significant . inventories : inventories are stated at the lower of cost or market . cost of inventories is generally determined by the average cost and the first-in , first-out ( fifo ) methods and includes material , labor and overhead related to the manufacturing process . because the company sells products that are installed on airframes that can be in-service for 25 or more years , it must keep a supply of such products on hand while the airframes are in use . where management estimated that the current market value was below cost or determined that future demand was lower than current inventory levels , based on historical experience , current and projected market demand , current and projected volume trends and other relevant current and projected factors associated with the current economic conditions , a reduction in inventory cost to estimated net realizable value was made by recording a provision included in cost of sales . story_separator_special_tag net income for the fiscal year ended september 30 , 2016 of $ 586.4 million was decreased by dividend equivalent payments of $ 3.0 million resulting in net income available to common shareholders of $ 583.4 million . the decrease in earnings per share of $ 2.51 per share to $ 7.88 per share is a result of the factors referred to above . business segments segment net sales . net sales by segment for the fiscal years ended september 30 , 2017 and 2016 were as follows ( amounts in millions ) : replace_table_token_14_th organic sales for the power & control segment increased $ 70.8 million , or an increase of 4.3 % , when compared to the fiscal year ended september 30 , 2016 . the organic sales increase resulted from increases in commercial aftermarket sales ( $ 40.9 million , an increase of 7.5 % ) , defense sales ( $ 28.2 million , an increase of 4.4 % ) , and commercial oem sales ( $ 1.0 million , an increase of 0.3 % ) . acquisition sales for the power & control segment totaled $ 255.7 million , or an increase of 15.8 % , resulting from the third quarter 2017 acquisitions and the acquisitions of y & f/tactair , ddc and breeze-eastern in fiscal year 2016. organic sales for the airframe segment decreased $ 5.8 million , or a decrease of 0.4 % , when compared to the fiscal year ended september 30 , 2016 . the organic sales decrease primarily resulted from decreases in commercial aftermarket sales ( $ 6.1 million , a decrease of 1.0 % ) , commercial oem sales ( $ 5.3 million , a decrease of 1.1 % ) and non-aerospace sales ( $ 6.9 million , a decrease of 39.4 % ) offset by an increase in defense sales ( $ 12.5 million , an increase of 4.2 % ) . there was no impact from acquisitions in the results of the airframe segment . organic sales for the non-aviation segment increased $ 12.2 million , or an increase of 12.0 % , when compared to the fiscal year ended september 30 , 2016 . the sales increase was primarily due to an increase in non-aerospace sales of $ 9.9 million , an increase of 11.5 % . there was no impact from acquisitions in the results of the non-aviation segment . 30 ebitda as defined . ebitda as defined by segment for the fiscal years ended september 30 , 2017 and 2016 were as follows ( amounts in millions ) : replace_table_token_15_th organic ebitda as defined for the power & control segment increased approximately $ 82.7 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . ebitda as defined from the third quarter 2017 acquisitions and the acquisitions of y & f/tactair , ddc and breeze-eastern in fiscal year 2016 was approximately $ 110.9 million for the fiscal year ended september 30 , 2017 . organic ebitda as defined for the airframe segment increased approximately $ 16.7 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . there was no impact from acquisitions in the results of the airframe segment . organic ebitda as defined for the non-aviation segment increased approximately $ 13.3 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . there was no impact from acquisitions in the results of the non-aviation segment . fiscal year ended september 30 , 2016 compared with fiscal year ended september 30 , 2015 total company net sales . net organic sales and acquisition sales and the related dollar and percentage changes for the fiscal years ended september 30 , 2016 and 2015 were as follows ( amounts in millions ) : replace_table_token_16_th acquisition sales represent sales of acquired businesses for the period up to one year subsequent to their acquisition date . the amount of acquisition sales shown in the table above was attributable to the acquisitions of breeze-eastern and ddc in fiscal year 2016 and and the acquisitions of pneudraulics , pexco aerospace , adams rite aerospace gmbh and telair cargo group in fiscal year 2015 . commercial aftermarket organic sales increased $ 61.3 million , or 6.1 % , commercial oem organic sales decreased by $ 8.8 million , or an increase of 1.1 % , and defense organic sales were flat when comparing the fiscal year ended september 30 , 2016 compared to fiscal year ended september 30 , 2015 . 31 cost of sales and gross profit . cost of sales increased by $ 186.0 million , or 14.8 % , to $ 1,443.3 million for the fiscal year ended september 30 , 2016 compared to $ 1,257.3 million for the fiscal year ended september 30 , 2015 . cost of sales and the related percentage of total sales for the fiscal years ended september 30 , 2016 and 2015 were as follows ( amounts in millions ) : replace_table_token_17_th the increase in the dollar amount of cost of sales during the fiscal year ended september 30 , 2016 was primarily due to increased volume associated with the sales from acquisitions and organic sales growth . gross profit as a percentage of sales increased by 0.9 percentage points to 54.5 % for the fiscal year ended september 30 , 2016 from 53.6 % for the fiscal year ended september 30 , 2015 . the dollar amount of gross profit increased by $ 278.3 million , or 19.2 % , for the fiscal year ended september 30 , 2016 compared to the comparable period last year due to the following items : gross profit on the sales from the acquisitions indicated above ( excluding acquisition-related costs ) was approximately $ 171.2 million for the fiscal year ended september 30 , 2016
| net cash used in investing activities was $ 1,679.1 million during fiscal 2015 consisting primarily of the acquisitions of telair cargo group , adams rite aerospace gmbh , pexco aerospace and pneudraulics for a total of $ 1,624.3 million and capital expenditures of $ 54.9 million . financing activities . net cash used in financing activities during the fiscal year ended september 30 , 2017 was $ 1,443.7 million . the use of cash was primarily related to the aggregate payment of $ 2,581.6 million for a $ 24.00 per share special dividend declared and paid during the first quarter of fiscal 2017 and a $ 22.00 per share special dividend declared and paid in the fourth quarter of fiscal 2017 and dividend equivalent payments . also contributing to the use of cash was $ 1,284.7 million in debt service payments on the existing term loans and the remaining principal on the tranche c term loans , redemption and related premium paid on the 2021 notes aggregating to $ 528.8 million and $ 389.8 million related to treasury stock purchases under the company 's share repurchase program . slightly offsetting the uses of cash were net proceeds from the 2017 term loans ( tranche f and tranche g term loans ) of $ 2,937.7 million and the additional 2025 notes offering of $ 300.4 million , $ 99.5 million in net proceeds from an additional a/r securitization draw in the fourth quarter of fiscal 2017 and $ 21.2 million in proceeds from stock option exercises . net cash provided by financing activities during the fiscal year ended september 30 , 2016 was $ 1,632.5 million , which primarily comprised of net proceeds from the 2016 term loans of $ 1,711.5 million , net proceeds from our 2026 notes of $ 939.6 million , and $ 30.1 million of cash proceeds from the exercise of stock options .
| 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. |
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.
```net cash used in investing activities was $ 1,679.1 million during fiscal 2015 consisting primarily of the acquisitions of telair cargo group , adams rite aerospace gmbh , pexco aerospace and pneudraulics for a total of $ 1,624.3 million and capital expenditures of $ 54.9 million . financing activities . net cash used in financing activities during the fiscal year ended september 30 , 2017 was $ 1,443.7 million . the use of cash was primarily related to the aggregate payment of $ 2,581.6 million for a $ 24.00 per share special dividend declared and paid during the first quarter of fiscal 2017 and a $ 22.00 per share special dividend declared and paid in the fourth quarter of fiscal 2017 and dividend equivalent payments . also contributing to the use of cash was $ 1,284.7 million in debt service payments on the existing term loans and the remaining principal on the tranche c term loans , redemption and related premium paid on the 2021 notes aggregating to $ 528.8 million and $ 389.8 million related to treasury stock purchases under the company 's share repurchase program . slightly offsetting the uses of cash were net proceeds from the 2017 term loans ( tranche f and tranche g term loans ) of $ 2,937.7 million and the additional 2025 notes offering of $ 300.4 million , $ 99.5 million in net proceeds from an additional a/r securitization draw in the fourth quarter of fiscal 2017 and $ 21.2 million in proceeds from stock option exercises . net cash provided by financing activities during the fiscal year ended september 30 , 2016 was $ 1,632.5 million , which primarily comprised of net proceeds from the 2016 term loans of $ 1,711.5 million , net proceeds from our 2026 notes of $ 939.6 million , and $ 30.1 million of cash proceeds from the exercise of stock options .
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Suspicious Activity Report : our three core value drivers are : obtaining profitable new business . we attempt to obtain profitable new business by using our technical expertise and application skill and our detailed knowledge of our customer base and the individual niche markets in which we operate . we have regularly been successful in identifying and developing both aftermarket and oem products to drive our growth . improving our cost structure . we are committed to maintaining and continuously improving our lean cost structure through detailed attention to the cost of each of the products that we offer and our organizational structure , with a focus on reducing the cost of each . providing highly engineered value-added products to customers . we focus on the engineering , manufacturing and marketing of a broad range of highly engineered niche products that we believe provide value to our customers . we believe we have been consistently successful in communicating to our customers the value of our products . this has generally enabled us to price our products to fairly reflect the value we provide and the resources required to do so . selective acquisition strategy . we selectively pursue the acquisition of proprietary aerospace component businesses when we see an opportunity to create value through the application of our three core value-driven operating strategies . the aerospace industry , in particular , remains highly fragmented , with many of the companies in the industry being small private businesses or small non-core operations of larger businesses . we have significant experience among our management team in executing acquisitions and integrating acquired businesses into our company and culture . as of the date of this report , we have successfully acquired approximately 60 businesses and or product lines since our formation in 1993. many of these acquisitions have been integrated into an existing transdigm production facility , which enables a higher production capacity utilization , which in turn improves gross profit levels due to the ability to spread the fixed manufacturing overhead costs over higher production volume . 25 acquisitions during the previous three fiscal years are more fully described in note 2 , “ acquisitions , ” in the notes to the consolidated financial statements included herein . critical accounting policies our consolidated financial statements have been prepared in conformity with gaap , which often requires the judgment of management in the selection and application of certain accounting principles and methods . management believes that the quality and reasonableness of our most critical policies enable the fair presentation of our financial position and results of operations . however , investors are cautioned that the sensitivity of financial statements to these methods , assumptions and estimates could create materially different results under different conditions or using different assumptions . below are those policies applied in preparing our financial statements that management believes are the most dependent on the application of estimates and assumptions . for additional accounting policies , see note 3 , “ summary of significant accounting policies , ” in the notes to the consolidated financial statements included herein . revenue recognition and related allowances : revenue is recognized from the sale of products when title and risk of loss passes to the customer , which is generally at the time of shipment . substantially all product sales are made pursuant to firm , fixed-price purchase orders received from customers . collectibility of amounts recorded as revenue is reasonably assured at the time of sale . provisions for returns , uncollectible accounts and the cost of repairs under contract warranty provisions are provided for in the same period as the related revenues are recorded and are principally based on historical results modified , as appropriate , by the most current information available . we have a history of making reasonably dependable estimates of such allowances ; however , due to uncertainties inherent in the estimation process , it is possible that actual results may vary from the estimates and the differences could be material . allowance for doubtful accounts : management estimates the allowance for doubtful accounts based on the aging of the accounts receivable and customer creditworthiness . the allowance also incorporates a provision for the estimated impact of disputes with customers . management 's estimate of the allowance amounts that are necessary includes amounts for specifically identified credit losses and estimated credit losses based on historical information . the determination of the amount of the allowance for doubtful accounts is subject to significant levels of judgment and estimation by management . depending on the resolution of potential credit and other collection issues , or if the financial condition of any of the company 's customers were to deteriorate and their ability to make required payments were to become impaired , increases in these allowances may be required . historically , changes in estimates in the allowance for doubtful accounts have not been significant . inventories : inventories are stated at the lower of cost or market . cost of inventories is generally determined by the average cost and the first-in , first-out ( fifo ) methods and includes material , labor and overhead related to the manufacturing process . because the company sells products that are installed on airframes that can be in-service for 25 or more years , it must keep a supply of such products on hand while the airframes are in use . where management estimated that the current market value was below cost or determined that future demand was lower than current inventory levels , based on historical experience , current and projected market demand , current and projected volume trends and other relevant current and projected factors associated with the current economic conditions , a reduction in inventory cost to estimated net realizable value was made by recording a provision included in cost of sales . story_separator_special_tag net income for the fiscal year ended september 30 , 2016 of $ 586.4 million was decreased by dividend equivalent payments of $ 3.0 million resulting in net income available to common shareholders of $ 583.4 million . the decrease in earnings per share of $ 2.51 per share to $ 7.88 per share is a result of the factors referred to above . business segments segment net sales . net sales by segment for the fiscal years ended september 30 , 2017 and 2016 were as follows ( amounts in millions ) : replace_table_token_14_th organic sales for the power & control segment increased $ 70.8 million , or an increase of 4.3 % , when compared to the fiscal year ended september 30 , 2016 . the organic sales increase resulted from increases in commercial aftermarket sales ( $ 40.9 million , an increase of 7.5 % ) , defense sales ( $ 28.2 million , an increase of 4.4 % ) , and commercial oem sales ( $ 1.0 million , an increase of 0.3 % ) . acquisition sales for the power & control segment totaled $ 255.7 million , or an increase of 15.8 % , resulting from the third quarter 2017 acquisitions and the acquisitions of y & f/tactair , ddc and breeze-eastern in fiscal year 2016. organic sales for the airframe segment decreased $ 5.8 million , or a decrease of 0.4 % , when compared to the fiscal year ended september 30 , 2016 . the organic sales decrease primarily resulted from decreases in commercial aftermarket sales ( $ 6.1 million , a decrease of 1.0 % ) , commercial oem sales ( $ 5.3 million , a decrease of 1.1 % ) and non-aerospace sales ( $ 6.9 million , a decrease of 39.4 % ) offset by an increase in defense sales ( $ 12.5 million , an increase of 4.2 % ) . there was no impact from acquisitions in the results of the airframe segment . organic sales for the non-aviation segment increased $ 12.2 million , or an increase of 12.0 % , when compared to the fiscal year ended september 30 , 2016 . the sales increase was primarily due to an increase in non-aerospace sales of $ 9.9 million , an increase of 11.5 % . there was no impact from acquisitions in the results of the non-aviation segment . 30 ebitda as defined . ebitda as defined by segment for the fiscal years ended september 30 , 2017 and 2016 were as follows ( amounts in millions ) : replace_table_token_15_th organic ebitda as defined for the power & control segment increased approximately $ 82.7 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . ebitda as defined from the third quarter 2017 acquisitions and the acquisitions of y & f/tactair , ddc and breeze-eastern in fiscal year 2016 was approximately $ 110.9 million for the fiscal year ended september 30 , 2017 . organic ebitda as defined for the airframe segment increased approximately $ 16.7 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . there was no impact from acquisitions in the results of the airframe segment . organic ebitda as defined for the non-aviation segment increased approximately $ 13.3 million for the fiscal year ended september 30 , 2017 compared to the fiscal year ended september 30 , 2016 . there was no impact from acquisitions in the results of the non-aviation segment . fiscal year ended september 30 , 2016 compared with fiscal year ended september 30 , 2015 total company net sales . net organic sales and acquisition sales and the related dollar and percentage changes for the fiscal years ended september 30 , 2016 and 2015 were as follows ( amounts in millions ) : replace_table_token_16_th acquisition sales represent sales of acquired businesses for the period up to one year subsequent to their acquisition date . the amount of acquisition sales shown in the table above was attributable to the acquisitions of breeze-eastern and ddc in fiscal year 2016 and and the acquisitions of pneudraulics , pexco aerospace , adams rite aerospace gmbh and telair cargo group in fiscal year 2015 . commercial aftermarket organic sales increased $ 61.3 million , or 6.1 % , commercial oem organic sales decreased by $ 8.8 million , or an increase of 1.1 % , and defense organic sales were flat when comparing the fiscal year ended september 30 , 2016 compared to fiscal year ended september 30 , 2015 . 31 cost of sales and gross profit . cost of sales increased by $ 186.0 million , or 14.8 % , to $ 1,443.3 million for the fiscal year ended september 30 , 2016 compared to $ 1,257.3 million for the fiscal year ended september 30 , 2015 . cost of sales and the related percentage of total sales for the fiscal years ended september 30 , 2016 and 2015 were as follows ( amounts in millions ) : replace_table_token_17_th the increase in the dollar amount of cost of sales during the fiscal year ended september 30 , 2016 was primarily due to increased volume associated with the sales from acquisitions and organic sales growth . gross profit as a percentage of sales increased by 0.9 percentage points to 54.5 % for the fiscal year ended september 30 , 2016 from 53.6 % for the fiscal year ended september 30 , 2015 . the dollar amount of gross profit increased by $ 278.3 million , or 19.2 % , for the fiscal year ended september 30 , 2016 compared to the comparable period last year due to the following items : gross profit on the sales from the acquisitions indicated above ( excluding acquisition-related costs ) was approximately $ 171.2 million for the fiscal year ended september 30 , 2016
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1,012 | in 2014 mexico saw slower volume point growth , and the north america and asia pacific regions saw declines in volume points , each continuing a multiple-year trend of decreasing volume point growth rates in those regions . we believe this trend is the result of members adjusting to certain revisions to our operations and marketing plan designed to improve the training and retention of sales leaders . the south & central america region also saw a decline in volume points following several years of growth , for reasons similar to the regions noted above as well as the impact of order size and product import limitations instituted for the venezuela market . average active sales leaders by geographic region with the continued expansion of daily consumption dmos in our different markets and our objective to improve member retention , we believe the average active sales leader is a useful metric . it represents the monthly average number of sales leaders that place an order , including orders of non-sales leader members in their downline sales organization , during a given period . we rely on this metric as an indication of the engage- 43 ment level of sales leaders , who are integral to our success , and therefore as an indication of the success of our strategies and execution . changes in the average active sales leader metric may be indicative of potential for changes in annual retention levels and future sales growth . replace_table_token_11_th ( 1 ) worldwide average active sales leaders may not equal the sum of the average active sales leaders in each region due to the calculation being an average of sales leaders active in a period , not a summation , and the fact that some sales leaders are active in more than one region but are counted only once in the worldwide amount . we believe the trend of increasing worldwide average active sales leaders over the periods reflected in the table is attributable to the company 's success in making the herbalife business opportunity more appealing and in facilitating sales leader success through providing quality products ; improved dmos , including daily consumption approaches such as nutrition clubs ; easier access to product ; systemized training of members on our products and methods ; and continued promotion and branding of herbalife products . although average active sales leaders increased in each region in 2014 and 2013 as compared to the prior year period , several regions have seen the growth rate decrease over this period . in 2014 , the north america , mexico and asia pacific regions saw a continued multiple-year decline in average active sales leader growth rates for the same reasons the rate of volume point growth decreased in those regions . the south & central america region also saw a lower growth rate for 2014 compared to 2013 , for the same reasons the rate of volume point growth decreased , partially offset by our determination not to require sales leaders in venezuela to re-qualify for the twelve-month period ended january 31 , 2014. given the long term and qualitative nature of our strategies , the magnitude of the impact of each such strategy on sales leaders ' engagement can not be quantified and may vary over time and by market . 44 number of sales leaders and retention rates by geographic region as of re-qualification period our compensation system requires each sales leader to re-qualify for such status each year , prior to february , in order to maintain their 50 % discount on products and be eligible to receive royalty payments . in february of each year , we demote from the rank of sales leader those members who did not satisfy the re-qualification requirements during the preceding twelve months . the re-qualification requirement does not apply to new sales leaders ( i.e . those who became sales leaders subsequent to the january re-qualification of the prior year ) . for the latest twelve month re-qualification period ending january 2015 , approximately 54.2 % of our sales leaders , excluding china , venezuela and argentina , re-qualified . we did not require our venezuelan sales leaders to re-qualify temporarily for the period ended january 2014 due to product supply limitation resulting from currency restrictions ; the venezuela re-qualification requirement resumed for the period ended january 2015 after providing the market time to adjust to supply levels . we did not require our argentinean sales leaders to re-qualify temporarily for the period ended january 2015 due to product supply challenges resulting from importation restrictions . if venezuela and argentina were included on a normalized basis , the percentage would have been 53.4 % . replace_table_token_12_th the member statistics below further highlight the calculation for retention . replace_table_token_13_th the table below reflects the number of sales leaders as of the end of february of the year indicated ( subsequent to the annual re-qualification date ) and sales leader retention rate by year and by region . replace_table_token_14_th sales leaders generally purchase our products for resale to other members and retail consumers . the number of sales leaders by geographic region as of the quarterly reporting dates will normally be higher than the number of sales leaders by geographic region as of the re-qualification period because sales leaders who do not re-qualify during the relevant twelve-month period will be removed from the rank of sales leader the following february . comparisons of sales leader totals on a year-to-year basis are indicators of our recruitment and retention efforts in different geographic regions . 45 we provide members with products , support materials , training , special events and a competitive compensation program . story_separator_special_tag post-tax ) related to a legal reserve for the bostick case ( see note 7 , contingencies , to the consolidated financial statements for further discussion ) ; a $ 2.6 million pre-tax unfavorable impact ( $ 1.6 million post-tax ) related to impairment of newly acquired defective manufacturing equipment ; a $ 36.7 million unfavorable impact of non-cash interest expense related to the convertible notes and the forward transactions ( see liquidity and capital resources convertible senior notes below for further discussion ) , and a $ 0.6 million pre-tax unfavorable impact ( $ 0.4 million post-tax ) related to expenses incurred for the recovery of costs associated with the re-audit of our 2010 to 2012 financial statements after the resignation of kpmg as our independent registered public accounting firm . net income for the year ended december 31 , 2013 included approximately $ 29.1 million pre-tax unfavorable impact ( $ 24.5 million post-tax ) related to legal and advisory services and other expenses for the company 's response to allegations and other negative information put forward in the marketplace by a hedge fund manager which started in late 2012 and approximately $ 20.4 million pre-tax unfavorable impact ( $ 15.6 million post-tax ) related to expenses for the re-audit of the company 's 2010 to 2012 financial statements . net income for year ended december 31 , 2013 also included a $ 15.1 million pre-tax unfavorable impact ( $ 9.8 million post-tax ) related to the venezuela bolivar devaluation . reporting segment results we aggregate our operating segments , excluding china , into one reporting segment , or the primary reporting segment . the primary reporting segment includes the north america , mexico , south & central america , emea , and asia pacific regions . china has been identified as a separate reporting segment primarily due to the regulatory environment in china . see note 10 , segment information , to the consolidated financial statements for further discussion of our reporting segments . see below for discussions of net sales and contribution margin by our reporting segments . net sales by reporting segment the primary reporting segment reported net sales of $ 4,294.3 million for the year ended december 31 , 2014. net sales for the primary reporting segment decreased $ 59.4 million , or 1.4 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. china reported net sales of $ 664.3 million for the year ended december 31 , 2014. net sales for china increased $ 192.7 million , or 40.9 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. see the discussion of net sales by geographic region below of the applicable region ( s ) comprising each segment for the underlying explanations of the changes in net sales for each reporting segment for the year ended december 31 , 2014 , as compared to the same period in 2013. contribution margin by reporting segment as discussed above under presentation , contribution margin consists of net sales less cost of sales and royalty overrides . the primary reporting segment reported contribution margin of $ 1,908.0 million for the year ended december 31 , 2014. contribution margin for the primary reporting segment decreased $ 33.7 million , or 1.7 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. china reported contribution margin of $ 596.6 million for the year ended december 31 , 2014. contribution margin for china increased $ 173.9 million , or 41.1 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. the changes in contribution margin for the primary reporting segment and china for the year ended december 31 , 2014 , as compared to the same period in 2013 was primarily due to the changes in net sales as described in the net sales by reporting segment section above . 50 sales by geographic region the following chart reconciles retail sales to net sales : sales by geographic region replace_table_token_16_th ( 1 ) during 2013 we simplified our pricing structure for most markets by increasing suggested retail prices and reducing total shipping and handling revenues by a similar amount , eliminating a packaging and handling line item from our invoices to members . these changes did not materially impact our consolidated net sales and profitability . ( 2 ) retail sales is a non-gaap measure which may not be comparable to similarly-titled measures used by other companies . north america the north america region reported net sales of $ 926.8 million for the year ended december 31 , 2014. net sales increased $ 18.8 million , or 2.1 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. in local currency , net sales increased $ 19.9 million , or 2.2 % for the year ended december 31 , 2014 , as compared to the same period in 2013. the increase in net sales for the year ended december 31 , 2014 , as compared to the same period in 2013 , was a result of a net sales increase in the u.s. of $ 18.2 million or 2.1 % . product prices in the us were increased 3 % in march 2014. in the u.s. while net sales for the year increased , the trend weakened during the year with a decline in sales during the fourth quarter as compared to prior year fourth quarter . for the full year , the north america region saw a decline in the rate of net sales growth in 2014 as compared to 2013 , following a similar decline in 2013 as compared to 2012. we believe the change in trend is a result of members adapting to certain revisions to our operations
| liquidity and capital resources working capital and operating activities below for further discussion of currency exchange rate issues in venezuela . emea the emea region reported net sales of $ 735.2 million for the year ended december 31 , 2013. net sales increased $ 107.4 million , or 17.1 % , for the year ended december 31 , 2013 , as compared to the same period in 2012. in local currency , net sales increased 16.3 % for the year ended december 31 , 2013 , as compared to the same period in 2012. the fluctuation of foreign currency rates had a favorable impact on net sales of $ 5.0 million for the year ended december 31 , 2013. the increase in net sales for the year ended december 31 , 2013 was primarily driven by increases in russia , the united kingdom , spain , and italy . net sales in russia , our largest market in the region , increased $ 25.0 million , or 24.7 % , for the year ended december 31 , 2013 , as compared to the same period in 2012. in local currency , net sales increased 28.2 % for the year ended december 31 , 2013 , as compared to the same period in 2012. the fluctuation of foreign currency rates had a $ 3.6 million unfavorable impact on net sales in russia for the year ended december 31 , 2013. the increase in russia was driven by the ongoing adoption of the commercial nutrition club , additional sales centers which have increased access to our products and branding including the sponsorship of fc spartak moscow football club .
| 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. |
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 working capital and operating activities below for further discussion of currency exchange rate issues in venezuela . emea the emea region reported net sales of $ 735.2 million for the year ended december 31 , 2013. net sales increased $ 107.4 million , or 17.1 % , for the year ended december 31 , 2013 , as compared to the same period in 2012. in local currency , net sales increased 16.3 % for the year ended december 31 , 2013 , as compared to the same period in 2012. the fluctuation of foreign currency rates had a favorable impact on net sales of $ 5.0 million for the year ended december 31 , 2013. the increase in net sales for the year ended december 31 , 2013 was primarily driven by increases in russia , the united kingdom , spain , and italy . net sales in russia , our largest market in the region , increased $ 25.0 million , or 24.7 % , for the year ended december 31 , 2013 , as compared to the same period in 2012. in local currency , net sales increased 28.2 % for the year ended december 31 , 2013 , as compared to the same period in 2012. the fluctuation of foreign currency rates had a $ 3.6 million unfavorable impact on net sales in russia for the year ended december 31 , 2013. the increase in russia was driven by the ongoing adoption of the commercial nutrition club , additional sales centers which have increased access to our products and branding including the sponsorship of fc spartak moscow football club .
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Suspicious Activity Report : in 2014 mexico saw slower volume point growth , and the north america and asia pacific regions saw declines in volume points , each continuing a multiple-year trend of decreasing volume point growth rates in those regions . we believe this trend is the result of members adjusting to certain revisions to our operations and marketing plan designed to improve the training and retention of sales leaders . the south & central america region also saw a decline in volume points following several years of growth , for reasons similar to the regions noted above as well as the impact of order size and product import limitations instituted for the venezuela market . average active sales leaders by geographic region with the continued expansion of daily consumption dmos in our different markets and our objective to improve member retention , we believe the average active sales leader is a useful metric . it represents the monthly average number of sales leaders that place an order , including orders of non-sales leader members in their downline sales organization , during a given period . we rely on this metric as an indication of the engage- 43 ment level of sales leaders , who are integral to our success , and therefore as an indication of the success of our strategies and execution . changes in the average active sales leader metric may be indicative of potential for changes in annual retention levels and future sales growth . replace_table_token_11_th ( 1 ) worldwide average active sales leaders may not equal the sum of the average active sales leaders in each region due to the calculation being an average of sales leaders active in a period , not a summation , and the fact that some sales leaders are active in more than one region but are counted only once in the worldwide amount . we believe the trend of increasing worldwide average active sales leaders over the periods reflected in the table is attributable to the company 's success in making the herbalife business opportunity more appealing and in facilitating sales leader success through providing quality products ; improved dmos , including daily consumption approaches such as nutrition clubs ; easier access to product ; systemized training of members on our products and methods ; and continued promotion and branding of herbalife products . although average active sales leaders increased in each region in 2014 and 2013 as compared to the prior year period , several regions have seen the growth rate decrease over this period . in 2014 , the north america , mexico and asia pacific regions saw a continued multiple-year decline in average active sales leader growth rates for the same reasons the rate of volume point growth decreased in those regions . the south & central america region also saw a lower growth rate for 2014 compared to 2013 , for the same reasons the rate of volume point growth decreased , partially offset by our determination not to require sales leaders in venezuela to re-qualify for the twelve-month period ended january 31 , 2014. given the long term and qualitative nature of our strategies , the magnitude of the impact of each such strategy on sales leaders ' engagement can not be quantified and may vary over time and by market . 44 number of sales leaders and retention rates by geographic region as of re-qualification period our compensation system requires each sales leader to re-qualify for such status each year , prior to february , in order to maintain their 50 % discount on products and be eligible to receive royalty payments . in february of each year , we demote from the rank of sales leader those members who did not satisfy the re-qualification requirements during the preceding twelve months . the re-qualification requirement does not apply to new sales leaders ( i.e . those who became sales leaders subsequent to the january re-qualification of the prior year ) . for the latest twelve month re-qualification period ending january 2015 , approximately 54.2 % of our sales leaders , excluding china , venezuela and argentina , re-qualified . we did not require our venezuelan sales leaders to re-qualify temporarily for the period ended january 2014 due to product supply limitation resulting from currency restrictions ; the venezuela re-qualification requirement resumed for the period ended january 2015 after providing the market time to adjust to supply levels . we did not require our argentinean sales leaders to re-qualify temporarily for the period ended january 2015 due to product supply challenges resulting from importation restrictions . if venezuela and argentina were included on a normalized basis , the percentage would have been 53.4 % . replace_table_token_12_th the member statistics below further highlight the calculation for retention . replace_table_token_13_th the table below reflects the number of sales leaders as of the end of february of the year indicated ( subsequent to the annual re-qualification date ) and sales leader retention rate by year and by region . replace_table_token_14_th sales leaders generally purchase our products for resale to other members and retail consumers . the number of sales leaders by geographic region as of the quarterly reporting dates will normally be higher than the number of sales leaders by geographic region as of the re-qualification period because sales leaders who do not re-qualify during the relevant twelve-month period will be removed from the rank of sales leader the following february . comparisons of sales leader totals on a year-to-year basis are indicators of our recruitment and retention efforts in different geographic regions . 45 we provide members with products , support materials , training , special events and a competitive compensation program . story_separator_special_tag post-tax ) related to a legal reserve for the bostick case ( see note 7 , contingencies , to the consolidated financial statements for further discussion ) ; a $ 2.6 million pre-tax unfavorable impact ( $ 1.6 million post-tax ) related to impairment of newly acquired defective manufacturing equipment ; a $ 36.7 million unfavorable impact of non-cash interest expense related to the convertible notes and the forward transactions ( see liquidity and capital resources convertible senior notes below for further discussion ) , and a $ 0.6 million pre-tax unfavorable impact ( $ 0.4 million post-tax ) related to expenses incurred for the recovery of costs associated with the re-audit of our 2010 to 2012 financial statements after the resignation of kpmg as our independent registered public accounting firm . net income for the year ended december 31 , 2013 included approximately $ 29.1 million pre-tax unfavorable impact ( $ 24.5 million post-tax ) related to legal and advisory services and other expenses for the company 's response to allegations and other negative information put forward in the marketplace by a hedge fund manager which started in late 2012 and approximately $ 20.4 million pre-tax unfavorable impact ( $ 15.6 million post-tax ) related to expenses for the re-audit of the company 's 2010 to 2012 financial statements . net income for year ended december 31 , 2013 also included a $ 15.1 million pre-tax unfavorable impact ( $ 9.8 million post-tax ) related to the venezuela bolivar devaluation . reporting segment results we aggregate our operating segments , excluding china , into one reporting segment , or the primary reporting segment . the primary reporting segment includes the north america , mexico , south & central america , emea , and asia pacific regions . china has been identified as a separate reporting segment primarily due to the regulatory environment in china . see note 10 , segment information , to the consolidated financial statements for further discussion of our reporting segments . see below for discussions of net sales and contribution margin by our reporting segments . net sales by reporting segment the primary reporting segment reported net sales of $ 4,294.3 million for the year ended december 31 , 2014. net sales for the primary reporting segment decreased $ 59.4 million , or 1.4 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. china reported net sales of $ 664.3 million for the year ended december 31 , 2014. net sales for china increased $ 192.7 million , or 40.9 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. see the discussion of net sales by geographic region below of the applicable region ( s ) comprising each segment for the underlying explanations of the changes in net sales for each reporting segment for the year ended december 31 , 2014 , as compared to the same period in 2013. contribution margin by reporting segment as discussed above under presentation , contribution margin consists of net sales less cost of sales and royalty overrides . the primary reporting segment reported contribution margin of $ 1,908.0 million for the year ended december 31 , 2014. contribution margin for the primary reporting segment decreased $ 33.7 million , or 1.7 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. china reported contribution margin of $ 596.6 million for the year ended december 31 , 2014. contribution margin for china increased $ 173.9 million , or 41.1 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. the changes in contribution margin for the primary reporting segment and china for the year ended december 31 , 2014 , as compared to the same period in 2013 was primarily due to the changes in net sales as described in the net sales by reporting segment section above . 50 sales by geographic region the following chart reconciles retail sales to net sales : sales by geographic region replace_table_token_16_th ( 1 ) during 2013 we simplified our pricing structure for most markets by increasing suggested retail prices and reducing total shipping and handling revenues by a similar amount , eliminating a packaging and handling line item from our invoices to members . these changes did not materially impact our consolidated net sales and profitability . ( 2 ) retail sales is a non-gaap measure which may not be comparable to similarly-titled measures used by other companies . north america the north america region reported net sales of $ 926.8 million for the year ended december 31 , 2014. net sales increased $ 18.8 million , or 2.1 % , for the year ended december 31 , 2014 , as compared to the same period in 2013. in local currency , net sales increased $ 19.9 million , or 2.2 % for the year ended december 31 , 2014 , as compared to the same period in 2013. the increase in net sales for the year ended december 31 , 2014 , as compared to the same period in 2013 , was a result of a net sales increase in the u.s. of $ 18.2 million or 2.1 % . product prices in the us were increased 3 % in march 2014. in the u.s. while net sales for the year increased , the trend weakened during the year with a decline in sales during the fourth quarter as compared to prior year fourth quarter . for the full year , the north america region saw a decline in the rate of net sales growth in 2014 as compared to 2013 , following a similar decline in 2013 as compared to 2012. we believe the change in trend is a result of members adapting to certain revisions to our operations
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1,013 | to meet our debt service obligations and other cash needs ; changes in capital deployment opportunities ; our ability to maintain effective controls over financial reporting ; our ability to continue to recruit and retain productive agents and distribution partners ; customer response to new products , distribution channels and marketing initiatives ; our ability to achieve additional upgrades of the financial strength ratings of cno and our insurance company subsidiaries as well as the impact of our ratings on our business , our ability to access capital , and the cost of capital ; regulatory changes or actions , including : those relating to regulation of the financial affairs of our insurance companies , such as the calculation of risk-based capital and minimum capital requirements , and payment of dividends and surplus debenture interest to us ; regulation of the sale , underwriting and pricing of products ; and health care regulation affecting health insurance products ; changes in the federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products or affect the value of our deferred tax assets ; availability and effectiveness of reinsurance arrangements , as well as the impact of any defaults or failure of reinsurers to perform ; the amount we may need to pay to a reinsurer and the earnings charge we may incur in connection with a long-term care reinsurance transaction ; the performance of third party service providers and potential difficulties arising from outsourcing arrangements ; the growth rate of sales , collected premiums , annuity deposits and assets ; interruption in telecommunication , information technology or other operational systems or failure to maintain the security , confidentiality or privacy of sensitive data on such systems ; events of terrorism , cyber attacks , natural disasters or other catastrophic events , including losses from a disease pandemic ; ineffectiveness of risk management policies and procedures in identifying , monitoring and managing risks ; and the risk factors or uncertainties listed from time to time in our filings with the sec . other factors and assumptions not identified above are also relevant to the forward-looking statements , and if they prove incorrect , could also cause actual results to differ materially from those projected . all written or oral forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing cautionary statement . our forward-looking statements speak only as of the date made . we assume no obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results , future events or developments , changes in assumptions or changes in other factors affecting the forward-looking statements . 48 the reporting of rbc measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing , advertising or promotional activities . overview we are a holding company for a group of insurance companies operating throughout the united states that develop , market and administer health insurance , annuity , individual life insurance and other insurance products . we focus on serving the senior and middle-income markets , which we believe are attractive , underserved , high growth markets . we sell our products through three distribution channels : career agents , independent producers ( some of whom sell one or more of our product lines exclusively ) and direct marketing . we measure segment performance by excluding the loss on reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes and amendment related to the agent deferred compensation plan , loss on extinguishment of debt , income taxes and other non-operating items consisting primarily of equity in earnings of certain non-strategic investments and earnings attributable to vies ( `` pre-tax operating earnings `` ) because we believe that this performance measure is a better indicator of the ongoing business and trends in our business . our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of net realized investment gains ( losses ) , and a long-term focus is necessary to maintain profitability over the life of the business . the loss on reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes and amendment related to the agent deferred compensation plan , loss on extinguishment of debt and other non-operating items consisting primarily of equity in earnings of certain non-strategic investments and earnings attributable to vies depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments . net realized investment gains ( losses ) and fair value changes in embedded derivative liabilities ( net of related amortization ) may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business . in the fourth quarter of 2016 , we began reporting the long-term care block recaptured from bre as further described in `` management 's discussion and analysis of consolidated financial condition and results of operations - consolidated financial condition - termination of long-term care reinsurance agreements and recapture of related long-term care business in run-off `` as an additional business segment . the company 's insurance segments are described below : bankers life , which markets and distributes medicare supplement insurance , interest-sensitive life insurance , traditional life insurance , fixed annuities and long-term care insurance products to the middle-income senior market through a dedicated field force of career agents , financial and investment advisors , and sales managers supported by a network of community-based sales offices . story_separator_special_tag financial liabilities in this category include our insurance liabilities for interest-sensitive products , which includes embedded derivatives ( including embedded derivatives related to our fixed index annuity products and to a modified coinsurance arrangement ) since their values include significant unobservable inputs including actuarial assumptions . at each reporting date , we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value . this classification is impacted by a number of factors , including the type of financial instrument , whether the financial instrument is new to the market and not yet established , the characteristics specific to the transaction and overall market conditions . our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs . below-investment grade corporate debt securities typically have different characteristics than investment grade corporate debt securities . based on historical performance , probability of default by the borrower is significantly greater for below-investment grade corporate debt securities and in many cases severity of loss is relatively greater as such securities are generally unsecured and often subordinated to other indebtedness of the issuer . also , issuers of below-investment grade corporate debt securities frequently have higher levels of debt relative to investment-grade issuers , hence , all other things being equal , are generally more sensitive to adverse economic conditions . the company attempts to reduce the overall risk related to its investment in below-investment grade securities , as in all investments , through careful credit analysis , strict investment policy guidelines , and diversification by issuer and or guarantor and by industry . our fixed maturity investments are generally purchased in the context of long-term strategies , including funding insurance liabilities , so we do not generally seek to generate short-term realized gains through the purchase and sale of such securities . in certain circumstances , including those in which securities are selling at prices which exceed our view of their underlying economic value , or when it is possible to reinvest the proceeds to better meet our long-term asset-liability objectives , we may sell certain securities . during 2017 , we sold $ 427.6 million of fixed maturity investments which resulted in gross investment losses ( before income taxes ) of $ 24.2 million . we actively manage the relationship between the duration and cash flows of our invested assets and the estimated duration and cash flows of benefit payments arising from contract liabilities . these efforts may cause us to sell investments before their maturity date and could result in the realization of net realized investment gains ( losses ) . when the estimated durations of assets and liabilities are similar , the effect of changes in market interest rates shall have largely offsetting effects on the value of the related assets and liabilities . in certain circumstances , a mismatch of the durations or related cash flows of invested assets and insurance liabilities could have a significant impact on our results of operations and financial position . for more information on our investment portfolio and our critical accounting policies related to investments , see the note to our consolidated financial statements entitled `` investments `` . 54 present value of future profits and deferred acquisition costs in conjunction with the implementation of fresh start accounting , we eliminated the historical balances of our predecessor 's deferred acquisition costs and the present value of future profits and replaced them with the present value of future profits as calculated on the effective date . the value assigned to the right to receive future cash flows from contracts existing at the effective date is referred to as the present value of future profits . the balance of this account is amortized , evaluated for recovery , and adjusted for the impact of unrealized gains ( losses ) in the same manner as the deferred acquisition costs described below . we expect to amortize the balance of the present value of future profits as of december 31 , 2017 as follows : 11 percent in 2018 , 10 percent in 2019 , 9 percent in 2020 , 7 percent in 2021 and 7 percent in 2022 . deferred acquisition costs represent incremental direct costs related to the successful acquisition of new or renewal insurance contracts . for interest-sensitive life or annuity products , we amortize these costs in relation to the estimated gross profits using the interest rate credited to the underlying policies . for other products , we generally amortize these costs in relation to future anticipated premium revenue using the projected investment earnings rate . insurance acquisition costs are amortized to expense over the lives of the underlying policies in relation to future anticipated premiums or gross profits . the insurance acquisition costs for policies other than interest-sensitive life and annuity products are amortized with interest ( using the projected investment earnings rate ) over the estimated premium-paying period of the policies , in a manner which recognizes amortization expense in proportion to each year 's premium income . the insurance acquisition costs for interest-sensitive life and annuity products are amortized with interest ( using the interest rate credited to the underlying policy ) in proportion to estimated gross profits . the interest , mortality , morbidity and persistency assumptions used to amortize insurance acquisition costs are consistent with those assumptions used to estimate liabilities for insurance products . for interest-sensitive life and annuity products , these assumptions are reviewed on a regular basis . when actual profits or our current best estimates of future profits are different from previous estimates , we adjust cumulative amortization of insurance acquisition costs to maintain amortization expense as a constant percentage
| interest expense on corporate debt has been primarily impacted by : ( i ) the debt refinancing transactions completed in may 2015 ; and ( ii ) the timing and amount of debt repayments in 2015 , along with the mix of interest rates on the related outstanding borrowings . such transactions are further discussed in the note to the consolidated financial statements entitled `` notes payable - direct corporate obligations '' . our average corporate debt outstanding was $ 925.0 million , $ 925.0 million and $ 888.6 million in 2017 , 2016 and 2015 , respectively . the average interest rate on our debt was 4.8 percent , 4.7 percent and 4.7 percent in 2017 , 2016 and 2015 , respectively . interest expense in periods subsequent to the debt refinancing transactions also reflects lower amortization of discount and issuance costs primarily due to the extended maturity profile of the debt incurred in our refinancing transactions . net investment income on general investment portfolio fluctuates based on the amount and type of invested assets in the corporate operations segment . net investment income on other special-purpose portfolios includes the income ( loss ) from : ( i ) investments related to deferred compensation plans held in a rabbi trust ( which is offset by amounts included in other operating costs and expenses as the investment results are allocated to participants ' account balances ) ; ( ii ) trading account activities ; ( iii ) income ( loss ) from coli equal to the difference between the return on these investments ( representing the change in value of the underlying investments ) and our overall portfolio yield ; and ( iv ) other alternative strategies . coli is utilized as an investment vehicle to fund bankers life 's agent deferred compensation plan .
| 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. |
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.
```interest expense on corporate debt has been primarily impacted by : ( i ) the debt refinancing transactions completed in may 2015 ; and ( ii ) the timing and amount of debt repayments in 2015 , along with the mix of interest rates on the related outstanding borrowings . such transactions are further discussed in the note to the consolidated financial statements entitled `` notes payable - direct corporate obligations '' . our average corporate debt outstanding was $ 925.0 million , $ 925.0 million and $ 888.6 million in 2017 , 2016 and 2015 , respectively . the average interest rate on our debt was 4.8 percent , 4.7 percent and 4.7 percent in 2017 , 2016 and 2015 , respectively . interest expense in periods subsequent to the debt refinancing transactions also reflects lower amortization of discount and issuance costs primarily due to the extended maturity profile of the debt incurred in our refinancing transactions . net investment income on general investment portfolio fluctuates based on the amount and type of invested assets in the corporate operations segment . net investment income on other special-purpose portfolios includes the income ( loss ) from : ( i ) investments related to deferred compensation plans held in a rabbi trust ( which is offset by amounts included in other operating costs and expenses as the investment results are allocated to participants ' account balances ) ; ( ii ) trading account activities ; ( iii ) income ( loss ) from coli equal to the difference between the return on these investments ( representing the change in value of the underlying investments ) and our overall portfolio yield ; and ( iv ) other alternative strategies . coli is utilized as an investment vehicle to fund bankers life 's agent deferred compensation plan .
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Suspicious Activity Report : to meet our debt service obligations and other cash needs ; changes in capital deployment opportunities ; our ability to maintain effective controls over financial reporting ; our ability to continue to recruit and retain productive agents and distribution partners ; customer response to new products , distribution channels and marketing initiatives ; our ability to achieve additional upgrades of the financial strength ratings of cno and our insurance company subsidiaries as well as the impact of our ratings on our business , our ability to access capital , and the cost of capital ; regulatory changes or actions , including : those relating to regulation of the financial affairs of our insurance companies , such as the calculation of risk-based capital and minimum capital requirements , and payment of dividends and surplus debenture interest to us ; regulation of the sale , underwriting and pricing of products ; and health care regulation affecting health insurance products ; changes in the federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products or affect the value of our deferred tax assets ; availability and effectiveness of reinsurance arrangements , as well as the impact of any defaults or failure of reinsurers to perform ; the amount we may need to pay to a reinsurer and the earnings charge we may incur in connection with a long-term care reinsurance transaction ; the performance of third party service providers and potential difficulties arising from outsourcing arrangements ; the growth rate of sales , collected premiums , annuity deposits and assets ; interruption in telecommunication , information technology or other operational systems or failure to maintain the security , confidentiality or privacy of sensitive data on such systems ; events of terrorism , cyber attacks , natural disasters or other catastrophic events , including losses from a disease pandemic ; ineffectiveness of risk management policies and procedures in identifying , monitoring and managing risks ; and the risk factors or uncertainties listed from time to time in our filings with the sec . other factors and assumptions not identified above are also relevant to the forward-looking statements , and if they prove incorrect , could also cause actual results to differ materially from those projected . all written or oral forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing cautionary statement . our forward-looking statements speak only as of the date made . we assume no obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results , future events or developments , changes in assumptions or changes in other factors affecting the forward-looking statements . 48 the reporting of rbc measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing , advertising or promotional activities . overview we are a holding company for a group of insurance companies operating throughout the united states that develop , market and administer health insurance , annuity , individual life insurance and other insurance products . we focus on serving the senior and middle-income markets , which we believe are attractive , underserved , high growth markets . we sell our products through three distribution channels : career agents , independent producers ( some of whom sell one or more of our product lines exclusively ) and direct marketing . we measure segment performance by excluding the loss on reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes and amendment related to the agent deferred compensation plan , loss on extinguishment of debt , income taxes and other non-operating items consisting primarily of equity in earnings of certain non-strategic investments and earnings attributable to vies ( `` pre-tax operating earnings `` ) because we believe that this performance measure is a better indicator of the ongoing business and trends in our business . our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of net realized investment gains ( losses ) , and a long-term focus is necessary to maintain profitability over the life of the business . the loss on reinsurance transaction , net realized investment gains ( losses ) , fair value changes in embedded derivative liabilities ( net of related amortization ) , fair value changes and amendment related to the agent deferred compensation plan , loss on extinguishment of debt and other non-operating items consisting primarily of equity in earnings of certain non-strategic investments and earnings attributable to vies depend on market conditions or represent unusual items that do not necessarily relate to the underlying business of our segments . net realized investment gains ( losses ) and fair value changes in embedded derivative liabilities ( net of related amortization ) may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business . in the fourth quarter of 2016 , we began reporting the long-term care block recaptured from bre as further described in `` management 's discussion and analysis of consolidated financial condition and results of operations - consolidated financial condition - termination of long-term care reinsurance agreements and recapture of related long-term care business in run-off `` as an additional business segment . the company 's insurance segments are described below : bankers life , which markets and distributes medicare supplement insurance , interest-sensitive life insurance , traditional life insurance , fixed annuities and long-term care insurance products to the middle-income senior market through a dedicated field force of career agents , financial and investment advisors , and sales managers supported by a network of community-based sales offices . story_separator_special_tag financial liabilities in this category include our insurance liabilities for interest-sensitive products , which includes embedded derivatives ( including embedded derivatives related to our fixed index annuity products and to a modified coinsurance arrangement ) since their values include significant unobservable inputs including actuarial assumptions . at each reporting date , we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value . this classification is impacted by a number of factors , including the type of financial instrument , whether the financial instrument is new to the market and not yet established , the characteristics specific to the transaction and overall market conditions . our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs . below-investment grade corporate debt securities typically have different characteristics than investment grade corporate debt securities . based on historical performance , probability of default by the borrower is significantly greater for below-investment grade corporate debt securities and in many cases severity of loss is relatively greater as such securities are generally unsecured and often subordinated to other indebtedness of the issuer . also , issuers of below-investment grade corporate debt securities frequently have higher levels of debt relative to investment-grade issuers , hence , all other things being equal , are generally more sensitive to adverse economic conditions . the company attempts to reduce the overall risk related to its investment in below-investment grade securities , as in all investments , through careful credit analysis , strict investment policy guidelines , and diversification by issuer and or guarantor and by industry . our fixed maturity investments are generally purchased in the context of long-term strategies , including funding insurance liabilities , so we do not generally seek to generate short-term realized gains through the purchase and sale of such securities . in certain circumstances , including those in which securities are selling at prices which exceed our view of their underlying economic value , or when it is possible to reinvest the proceeds to better meet our long-term asset-liability objectives , we may sell certain securities . during 2017 , we sold $ 427.6 million of fixed maturity investments which resulted in gross investment losses ( before income taxes ) of $ 24.2 million . we actively manage the relationship between the duration and cash flows of our invested assets and the estimated duration and cash flows of benefit payments arising from contract liabilities . these efforts may cause us to sell investments before their maturity date and could result in the realization of net realized investment gains ( losses ) . when the estimated durations of assets and liabilities are similar , the effect of changes in market interest rates shall have largely offsetting effects on the value of the related assets and liabilities . in certain circumstances , a mismatch of the durations or related cash flows of invested assets and insurance liabilities could have a significant impact on our results of operations and financial position . for more information on our investment portfolio and our critical accounting policies related to investments , see the note to our consolidated financial statements entitled `` investments `` . 54 present value of future profits and deferred acquisition costs in conjunction with the implementation of fresh start accounting , we eliminated the historical balances of our predecessor 's deferred acquisition costs and the present value of future profits and replaced them with the present value of future profits as calculated on the effective date . the value assigned to the right to receive future cash flows from contracts existing at the effective date is referred to as the present value of future profits . the balance of this account is amortized , evaluated for recovery , and adjusted for the impact of unrealized gains ( losses ) in the same manner as the deferred acquisition costs described below . we expect to amortize the balance of the present value of future profits as of december 31 , 2017 as follows : 11 percent in 2018 , 10 percent in 2019 , 9 percent in 2020 , 7 percent in 2021 and 7 percent in 2022 . deferred acquisition costs represent incremental direct costs related to the successful acquisition of new or renewal insurance contracts . for interest-sensitive life or annuity products , we amortize these costs in relation to the estimated gross profits using the interest rate credited to the underlying policies . for other products , we generally amortize these costs in relation to future anticipated premium revenue using the projected investment earnings rate . insurance acquisition costs are amortized to expense over the lives of the underlying policies in relation to future anticipated premiums or gross profits . the insurance acquisition costs for policies other than interest-sensitive life and annuity products are amortized with interest ( using the projected investment earnings rate ) over the estimated premium-paying period of the policies , in a manner which recognizes amortization expense in proportion to each year 's premium income . the insurance acquisition costs for interest-sensitive life and annuity products are amortized with interest ( using the interest rate credited to the underlying policy ) in proportion to estimated gross profits . the interest , mortality , morbidity and persistency assumptions used to amortize insurance acquisition costs are consistent with those assumptions used to estimate liabilities for insurance products . for interest-sensitive life and annuity products , these assumptions are reviewed on a regular basis . when actual profits or our current best estimates of future profits are different from previous estimates , we adjust cumulative amortization of insurance acquisition costs to maintain amortization expense as a constant percentage
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1,014 | consumption ; weather conditions ; environmental and other governmental regulations ; and domestic and international tax policies . we have experienced slow but steady global economic growth during 2013. this global economic growth has been periodically interrupted with periods of strong volatility that tend to disrupt the global markets for a short duration before the markets and global economies resume their collective general slow upward trend . in the fourth quarter of 2013 , some of these market disruptions included the u.s. federal reserve 's announcement of the tapering of its multi-year “ quantitative easing ” program and more recently the disruptions in certain emerging market nations and the increasing concerns over the liquidity situation of the banking system within china . the economic news out of europe has been mostly positive and its economic growth outlook appears to be growing slightly faster than previously reported . any news suggesting weak or declining economic data could affect the global equity and commodity markets , which could adversely affect normal business activities . the oil and natural gas industry has been adversely affected by the uncertainty of the general timing and level of the economic recovery as well as the uncertainties concerning government regulation of the industry , particularly in the united states . over the longer term , the fundamentals for our business remain favorable as the need for continued replenishment of oil and gas production is the primary driver of demand for our services . we believe that the long-term industry fundamentals are positive based on the following factors : ( 1 ) long-term increasing world demand for oil and natural gas emphasizing the need for continual replenishment of oil and gas production ; ( 2 ) mature global production rates for offshore and subsea wells ; ( 3 ) globalization of the natural gas market ; ( 4 ) an increasing number of mature and small reservoirs ; ( 5 ) increasing offshore activity , particularly in deepwater ; and ( 6 ) an increasing number of subsea developments . 34 at december 31 , 2013 , we had cash on hand of $ 478.2 million and $ 584.2 million available for borrowing under our revolving credit facility . our capital expenditures for 2014 are expected to total approximately $ 400 million . if we successfully implement our business plan , we believe we have sufficient liquidity without incurring additional indebtedness beyond the existing capacity under the revolving credit facility . business activity summary during the four year period between 2009 and 2012 , we enhanced our financial position via the generation of approximately $ 615 million in pre-tax proceeds primarily from dispositions of non-core business assets in order to strategically grow our core businesses . these dispositions include approximately $ 55 million from the sale of individual oil and gas properties , over $ 500 million from the sale of our stockholdings in cal dive and $ 25 million from the sale of our former reservoir consulting business . in october 2012 , we entered into an agreement to sell our two remaining pipelay vessels , the caesar and the express , and other related pipelay equipment for $ 238.3 million . in june 2013 , we completed the sale of the caesar and related equipment for $ 138.3 million , which amount included $ 30 million of funds deposited with us at the time the agreement was entered into by the parties . we used $ 80.1 million of the proceeds from the sale of the caesar to reduce our indebtedness under our former credit agreement and we are investing the remainder in our continuing operations , including supporting the growth of our well intervention and robotics operations . in july 2013 , we completed the sale of the express for $ 100 million , including the remaining $ 20 million of previously deposited funds . in february 2013 , we sold ert for $ 624 million plus additional consideration in the form of overriding royalty interests in ert 's wang well and certain exploration prospects . in january 2014 , we closed the sale of our spoolbase property located in ingleside , texas for $ 45 million to the same group of companies that acquired the caesar and the express . in connection with this sale , we received $ 15 million in cash and hold a $ 30 million promissory note , in which a $ 10 million principal reduction in the note 's balance is required to be paid to us on each december 31 in 2014 , 2015 and 2016. the sale of our ingleside spoolbase is expected to result in an approximately $ 10.5 million gain in the first quarter of 2014. as we focus on our well intervention and robotics operations , we conducted the following activities in 2013 to expand our services capabilities : we executed a contract with a shipyard in singapore for the construction of a newbuild semisubmersible well intervention vessel , the q7000 , which is expected to be completed and placed in service in 2016 ; we took possession in april 2013 of the chartered skandi constructor , which joined our north sea well intervention fleet in september 2013 ; we chartered the rem installer effective july 2013 ; we substantially completed the conversion of the helix 534 into a well intervention vessel in 2013 and the vessel commenced well intervention operations in the gulf of mexico in february 2014 ; and we entered into charter agreements for two newbuild rov support vessels , the grand canyon ii and the grand canyon iii . , which are expected to be delivered to us in 2014 and 2015 , respectively . results of operations historically , our well intervention , robotics , subsea construction and production facilities operations were reported as two segments : contracting services and production facilities . story_separator_special_tag our robotics revenues increased by 34 % in 2012 as compared to 2011 reflecting high utilization of our chartered vessels and owned rovs , the utilization of a number of additional spot market vessels for much of 2012 , and the performance of a number of north sea trenching projects in early 2012 ( which activities are not normally conducted during the first quarter in large part because of seasonal weather patterns ) . our subsea construction revenues increased by 27 % in 2012 as compared to 2011. our revenues benefited from an increase in activity in the gulf of mexico in the first quarter of 2012 , full year deployment of the caesar on an accommodation project in mexico which commenced in the fourth quarter of 2011 , and the express working offshore israel and in the north sea for most of the second and third quarters of 2012. our production facilities revenues increased by 6 % in 2012 as compared to 2011 , which primarily reflects the inclusion of the quarterly hfrs retainer fee , which commenced on april 1 , 2011. gross profit . our gross profit decreased by 67 % in 2012 as compared to 2011. this decrease was primarily attributed to asset impairment charges of $ 157.8 million for the caesar and related mobile pipelay equipment , $ 14.6 million for the intrepid , and $ 4.6 million for well intervention assets associated with our former operations in australia ( note 2 ) . excluding the aforementioned impairment charges , our gross profit increased by 52 % in 2012 as compared to 2011 reflecting the increased activity in all of our business segments . as discussed in “ revenues ” above , our well intervention business was negatively impacted in 2012 because of the lost utilization of our q4000 , seawell a nd well enhancer well intervention vessels as a result of extended regulatory dry docks . in 2012 , our well intervention revenues benefitted from the rental of additional well intervention equipment to third parties . our robotics gross profit increased by 46 % in 2012 as compared to 2011 reflecting increased utilization of its then existing asset base thereby reducing idle costs , and the use of spot vessels for much of 2012. excluding the effect of the $ 172.4 million of impairment charges associated with its pipelay vessels and related equipment , subsea construction gross profit increased $ 47.1 million as compared to 2011. the increase primarily reflects the high margins achieved on many of our subsea projects in 2012 , more specifically with respect to a very successful project located offshore israel . 41 loss on commodity derivative contracts . the $ 10.5 million loss on commodity derivative contracts primarily reflects the amount of mark-to-market loss on unsettled oil and gas commodity derivative contracts associated with de-designation of these contracts as hedging instruments following the announcement in december 2012 of the sale of ert . loss on sale of assets , net . the $ 13.5 million loss on the disposition of assets in 2012 reflects the sale of the intrepid in september 2012 ( note 2 ) . selling , general and administrative expenses . our selling , general and administrative expenses increased by $ 7.8 million in 2012 as compared to 2011. the increase was associated with higher long-term incentive compensation , which primarily reflects the fact that amortization of awards granted in 2012 vest over a period of three years ( as compared to a five-year vesting period for all long-term incentive awards granted prior to 2012 ) ( note 9 ) . additionally , the 2012 amount includes approximately $ 3.5 million of severance and other closure costs associated with our decision to sell our remaining pipelay assets , to cease our australian well intervention operations and to terminate the remaining lease term and other related closure costs associated with a former office located in rotterdam , the netherlands . lastly , our 2012 amount also includes $ 2.6 million drawn against a letter of credit related to an international well abandonment project which was completed in 2011. we are seeking return of this amount but collection is not reasonably assured . our selling , general and administrative expenses in 2011 include $ 1.6 million of severance costs related to the resignation of our former executive vice president and chief operating officer . as a percentage of revenues , our selling , general and administrative expenses were higher than our previously-reported amounts due to previously-allocated corporate shared services costs related to ert being included in the results of our continuing operations . under the applicable accounting guidance , such allocations are not permitted to be excluded from our selling , general and administrative expenses when a former business is presented as discontinued operations . the amount of corporate shared services that were previously allocated to ert totaled $ 14.9 million in 2012 and $ 18.5 million in 2011. equity in earnings of investments . equity in earnings of investments decreased by $ 13.8 million in 2012 as compared to 2011. the decrease was primarily due to independence hub receiving lower fees from major customers of the facility following the expiration of a five-year supplemental monthly demand fee in march 2012 , as well as lower throughput at both the deepwater gateway and independence hub facilities reflecting both storm-related disruptions and normal production declines of the fields using the facilities . net interest expense . our net interest expense totaled $ 48.2 million in 2012 as compared to $ 70.2 million in 2011. the decrease in interest expense primarily reflects a $ 275 million reduction of our senior unsecured notes indebtedness , including the early extinguishment of $ 75 million in the third quarter of 2011 and $ 200 million in the first quarter of 2012. the senior unsecured notes bore a 9.5 % interest rate which was greater than the 5.4 % weighted average interest rate of
| liquidity and capital resources overview the following table presents certain information useful in the analysis of our financial condition and liquidity as of december 31 , 2013 and 2012 ( in thousands ) : replace_table_token_18_th ( 1 ) long-term debt does not include the current maturities portion of the long-term debt as that amount is included in net working capital . it is also net of unamortized debt discount on the 2032 notes . we repaid $ 318.4 million of our outstanding indebtedness in february 2013 following the sale of ert , and $ 150.4 million in june 2013 with proceeds from the sale of the caesar and cash generated from operations ( see table below ) . see note 7 for information related to our existing debt . ( 2 ) liquidity , as defined by us , is equal to cash and cash equivalents plus available capacity under our revolving credit facility , which capacity is reduced by current letters of credit drawn against the facility . our liquidity at december 31 , 2013 includes cash and cash equivalents of $ 478.2 million and $ 584.2 million of available borrowing capacity under our revolving credit facility ( note 7 ) . our liquidity at december 31 , 2012 includes cash and cash equivalents of $ 437.1 million and $ 487.6 million of available borrowing capacity under our former revolving credit facility . the increase in our liquidity reflects proceeds from the sales of ert , the caesar and the express . the carrying amount of our debt , including current maturities , as of december 31 , 2013 and 2012 is as follows ( in thousands ) : replace_table_token_19_th 43 ( 1 ) in february 2013 , we repaid $ 293.9 million of our former term loan debt and $ 24.5 million under our former revolving credit facility with the proceeds from the sale of ert . in june 2013 , we used $ 150.4 million of the proceeds from the sale of the caesar as well as cash generated from operations to repay the remaining amounts outstanding under our former credit agreement ( note 7 ) .
| 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. |
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 overview the following table presents certain information useful in the analysis of our financial condition and liquidity as of december 31 , 2013 and 2012 ( in thousands ) : replace_table_token_18_th ( 1 ) long-term debt does not include the current maturities portion of the long-term debt as that amount is included in net working capital . it is also net of unamortized debt discount on the 2032 notes . we repaid $ 318.4 million of our outstanding indebtedness in february 2013 following the sale of ert , and $ 150.4 million in june 2013 with proceeds from the sale of the caesar and cash generated from operations ( see table below ) . see note 7 for information related to our existing debt . ( 2 ) liquidity , as defined by us , is equal to cash and cash equivalents plus available capacity under our revolving credit facility , which capacity is reduced by current letters of credit drawn against the facility . our liquidity at december 31 , 2013 includes cash and cash equivalents of $ 478.2 million and $ 584.2 million of available borrowing capacity under our revolving credit facility ( note 7 ) . our liquidity at december 31 , 2012 includes cash and cash equivalents of $ 437.1 million and $ 487.6 million of available borrowing capacity under our former revolving credit facility . the increase in our liquidity reflects proceeds from the sales of ert , the caesar and the express . the carrying amount of our debt , including current maturities , as of december 31 , 2013 and 2012 is as follows ( in thousands ) : replace_table_token_19_th 43 ( 1 ) in february 2013 , we repaid $ 293.9 million of our former term loan debt and $ 24.5 million under our former revolving credit facility with the proceeds from the sale of ert . in june 2013 , we used $ 150.4 million of the proceeds from the sale of the caesar as well as cash generated from operations to repay the remaining amounts outstanding under our former credit agreement ( note 7 ) .
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Suspicious Activity Report : consumption ; weather conditions ; environmental and other governmental regulations ; and domestic and international tax policies . we have experienced slow but steady global economic growth during 2013. this global economic growth has been periodically interrupted with periods of strong volatility that tend to disrupt the global markets for a short duration before the markets and global economies resume their collective general slow upward trend . in the fourth quarter of 2013 , some of these market disruptions included the u.s. federal reserve 's announcement of the tapering of its multi-year “ quantitative easing ” program and more recently the disruptions in certain emerging market nations and the increasing concerns over the liquidity situation of the banking system within china . the economic news out of europe has been mostly positive and its economic growth outlook appears to be growing slightly faster than previously reported . any news suggesting weak or declining economic data could affect the global equity and commodity markets , which could adversely affect normal business activities . the oil and natural gas industry has been adversely affected by the uncertainty of the general timing and level of the economic recovery as well as the uncertainties concerning government regulation of the industry , particularly in the united states . over the longer term , the fundamentals for our business remain favorable as the need for continued replenishment of oil and gas production is the primary driver of demand for our services . we believe that the long-term industry fundamentals are positive based on the following factors : ( 1 ) long-term increasing world demand for oil and natural gas emphasizing the need for continual replenishment of oil and gas production ; ( 2 ) mature global production rates for offshore and subsea wells ; ( 3 ) globalization of the natural gas market ; ( 4 ) an increasing number of mature and small reservoirs ; ( 5 ) increasing offshore activity , particularly in deepwater ; and ( 6 ) an increasing number of subsea developments . 34 at december 31 , 2013 , we had cash on hand of $ 478.2 million and $ 584.2 million available for borrowing under our revolving credit facility . our capital expenditures for 2014 are expected to total approximately $ 400 million . if we successfully implement our business plan , we believe we have sufficient liquidity without incurring additional indebtedness beyond the existing capacity under the revolving credit facility . business activity summary during the four year period between 2009 and 2012 , we enhanced our financial position via the generation of approximately $ 615 million in pre-tax proceeds primarily from dispositions of non-core business assets in order to strategically grow our core businesses . these dispositions include approximately $ 55 million from the sale of individual oil and gas properties , over $ 500 million from the sale of our stockholdings in cal dive and $ 25 million from the sale of our former reservoir consulting business . in october 2012 , we entered into an agreement to sell our two remaining pipelay vessels , the caesar and the express , and other related pipelay equipment for $ 238.3 million . in june 2013 , we completed the sale of the caesar and related equipment for $ 138.3 million , which amount included $ 30 million of funds deposited with us at the time the agreement was entered into by the parties . we used $ 80.1 million of the proceeds from the sale of the caesar to reduce our indebtedness under our former credit agreement and we are investing the remainder in our continuing operations , including supporting the growth of our well intervention and robotics operations . in july 2013 , we completed the sale of the express for $ 100 million , including the remaining $ 20 million of previously deposited funds . in february 2013 , we sold ert for $ 624 million plus additional consideration in the form of overriding royalty interests in ert 's wang well and certain exploration prospects . in january 2014 , we closed the sale of our spoolbase property located in ingleside , texas for $ 45 million to the same group of companies that acquired the caesar and the express . in connection with this sale , we received $ 15 million in cash and hold a $ 30 million promissory note , in which a $ 10 million principal reduction in the note 's balance is required to be paid to us on each december 31 in 2014 , 2015 and 2016. the sale of our ingleside spoolbase is expected to result in an approximately $ 10.5 million gain in the first quarter of 2014. as we focus on our well intervention and robotics operations , we conducted the following activities in 2013 to expand our services capabilities : we executed a contract with a shipyard in singapore for the construction of a newbuild semisubmersible well intervention vessel , the q7000 , which is expected to be completed and placed in service in 2016 ; we took possession in april 2013 of the chartered skandi constructor , which joined our north sea well intervention fleet in september 2013 ; we chartered the rem installer effective july 2013 ; we substantially completed the conversion of the helix 534 into a well intervention vessel in 2013 and the vessel commenced well intervention operations in the gulf of mexico in february 2014 ; and we entered into charter agreements for two newbuild rov support vessels , the grand canyon ii and the grand canyon iii . , which are expected to be delivered to us in 2014 and 2015 , respectively . results of operations historically , our well intervention , robotics , subsea construction and production facilities operations were reported as two segments : contracting services and production facilities . story_separator_special_tag our robotics revenues increased by 34 % in 2012 as compared to 2011 reflecting high utilization of our chartered vessels and owned rovs , the utilization of a number of additional spot market vessels for much of 2012 , and the performance of a number of north sea trenching projects in early 2012 ( which activities are not normally conducted during the first quarter in large part because of seasonal weather patterns ) . our subsea construction revenues increased by 27 % in 2012 as compared to 2011. our revenues benefited from an increase in activity in the gulf of mexico in the first quarter of 2012 , full year deployment of the caesar on an accommodation project in mexico which commenced in the fourth quarter of 2011 , and the express working offshore israel and in the north sea for most of the second and third quarters of 2012. our production facilities revenues increased by 6 % in 2012 as compared to 2011 , which primarily reflects the inclusion of the quarterly hfrs retainer fee , which commenced on april 1 , 2011. gross profit . our gross profit decreased by 67 % in 2012 as compared to 2011. this decrease was primarily attributed to asset impairment charges of $ 157.8 million for the caesar and related mobile pipelay equipment , $ 14.6 million for the intrepid , and $ 4.6 million for well intervention assets associated with our former operations in australia ( note 2 ) . excluding the aforementioned impairment charges , our gross profit increased by 52 % in 2012 as compared to 2011 reflecting the increased activity in all of our business segments . as discussed in “ revenues ” above , our well intervention business was negatively impacted in 2012 because of the lost utilization of our q4000 , seawell a nd well enhancer well intervention vessels as a result of extended regulatory dry docks . in 2012 , our well intervention revenues benefitted from the rental of additional well intervention equipment to third parties . our robotics gross profit increased by 46 % in 2012 as compared to 2011 reflecting increased utilization of its then existing asset base thereby reducing idle costs , and the use of spot vessels for much of 2012. excluding the effect of the $ 172.4 million of impairment charges associated with its pipelay vessels and related equipment , subsea construction gross profit increased $ 47.1 million as compared to 2011. the increase primarily reflects the high margins achieved on many of our subsea projects in 2012 , more specifically with respect to a very successful project located offshore israel . 41 loss on commodity derivative contracts . the $ 10.5 million loss on commodity derivative contracts primarily reflects the amount of mark-to-market loss on unsettled oil and gas commodity derivative contracts associated with de-designation of these contracts as hedging instruments following the announcement in december 2012 of the sale of ert . loss on sale of assets , net . the $ 13.5 million loss on the disposition of assets in 2012 reflects the sale of the intrepid in september 2012 ( note 2 ) . selling , general and administrative expenses . our selling , general and administrative expenses increased by $ 7.8 million in 2012 as compared to 2011. the increase was associated with higher long-term incentive compensation , which primarily reflects the fact that amortization of awards granted in 2012 vest over a period of three years ( as compared to a five-year vesting period for all long-term incentive awards granted prior to 2012 ) ( note 9 ) . additionally , the 2012 amount includes approximately $ 3.5 million of severance and other closure costs associated with our decision to sell our remaining pipelay assets , to cease our australian well intervention operations and to terminate the remaining lease term and other related closure costs associated with a former office located in rotterdam , the netherlands . lastly , our 2012 amount also includes $ 2.6 million drawn against a letter of credit related to an international well abandonment project which was completed in 2011. we are seeking return of this amount but collection is not reasonably assured . our selling , general and administrative expenses in 2011 include $ 1.6 million of severance costs related to the resignation of our former executive vice president and chief operating officer . as a percentage of revenues , our selling , general and administrative expenses were higher than our previously-reported amounts due to previously-allocated corporate shared services costs related to ert being included in the results of our continuing operations . under the applicable accounting guidance , such allocations are not permitted to be excluded from our selling , general and administrative expenses when a former business is presented as discontinued operations . the amount of corporate shared services that were previously allocated to ert totaled $ 14.9 million in 2012 and $ 18.5 million in 2011. equity in earnings of investments . equity in earnings of investments decreased by $ 13.8 million in 2012 as compared to 2011. the decrease was primarily due to independence hub receiving lower fees from major customers of the facility following the expiration of a five-year supplemental monthly demand fee in march 2012 , as well as lower throughput at both the deepwater gateway and independence hub facilities reflecting both storm-related disruptions and normal production declines of the fields using the facilities . net interest expense . our net interest expense totaled $ 48.2 million in 2012 as compared to $ 70.2 million in 2011. the decrease in interest expense primarily reflects a $ 275 million reduction of our senior unsecured notes indebtedness , including the early extinguishment of $ 75 million in the third quarter of 2011 and $ 200 million in the first quarter of 2012. the senior unsecured notes bore a 9.5 % interest rate which was greater than the 5.4 % weighted average interest rate of
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1,015 | for 2013 , the return on average equity was 6.66 % , compared to 8.42 % for 2012. the return on average assets was 0.68 % for 2013 and 0.89 % for 2012. the results for 2013 included $ 863 thousand in gains on sales of securities , compared to $ 1.1 million in 2012. during 2013 , the company completed the acquisition of all outstanding stock of the retirement planning consultancy national associates , inc. of cleveland , ohio . the company is a leading independent consultant to retirement plans and offers actuarial , plan design , compliance and administrative services . as a third party administrator , nai provides services to 401 ( k ) , defined benefit , profit sharing , flexible spending , 403 ( b ) , esop and other plans . in acquiring nai , the company assumes a professional staff that is highly qualified and credentialed . synergies and the cost savings resulting from the combining of the operations of the companies will help drive an increase of non-interest income . net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on intere st-bearing liabilities . for 2013 , taxable equivalent net interest income decreased $ 822 thousand , or 2.12 % , from 2012. interest-earning assets averaged $ 1.061 billion during 2013 , increasing $ 30.4 million , or 2.95 % , compared to 2012. the company 's interest-bearing liabilities decreased 0.34 % from $ 881.6 million in 2012 to $ 878.7 million in 2013. the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2013 was 3.47 % , decreasing from 3.66 % in 2012. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2013 , the net interest margin , measured on a fully taxable equivalent basis , decreased to 3.58 % , compared to 3.76 % in 2012. the decrease in net interest margin is largely a result of interest-earning assets repricing at lower rate . total taxable equivalent interes t income was $ 43.0 million for 2013 , which is $ 2.0 million less than the $ 45.0 million reported in 2012. in comparing the years ending december 31 , 2013 and 2012 , yields on earning assets decreased 31 basis points while the cost of interest bearing liabilities decreased 12 basis points . average loans increased $ 30.6 million , or 5.42 % , in 2013 , however the yields decreased from 5.71 % in 2012 to 5.24 % in 2013. tax equated income from securities , federal funds and other decreased $ 933 thousand , or 7.3 % , in 2013 , farmers saw its yields on these assets decreased from 2.73 % in 2012 to 2.53 % in 2013. the average balance of investment securities and federal funds sold decreased slightly from $ 465.4 million in 2012 to $ 465.2 million in 2013 . 25 total interest expense a mounted to $ 5.1 million for 2013 , a 18.5 % decrease from $ 6.2 million reported in 2012. the decrease in 2013 is the result of lower rates of interest paid on interest-bearing deposits and repurchase agreements . the cost of interest-bearing liabilities decreased from 0.70 % in 2012 to 0.58 % in 2013. management will continue to evaluate future changes in interest rates and the shape of the treasury yield curve so that assets and liabilities may be priced accordingly to minimize the impact on the net interest margin . noninterest income total noninterest income increased by $ 1.3 million in 2013 . the increase in noninterest income is due to several factors . retirement plan consulting fees increased to $ 477 thousand compared to none in 2012 reflecting the income earned from the newly acquired entity , national associates , inc. ( “ nai ” ) . service charges on deposit accounts increased from $ 2.0 million in 2012 to $ 2.4 million in 2013 as the company made adjustments to the service charge structure of its deposit accounts . bank owned life insurance income increased $ 170 thousand as the company received tax free death benefits , which are included in income . insurance agency commissions also increased $ 119 thousand and trust fees increased $ 86 thousand , as management continues to focus on diversifying revenue sources to decrease the reliance on net interest income as the main driver of revenue . other operating income also increased $ 406 thousand , which is primarily the result of a gain on the sale of land that was owned by the company . noninterest expenses noninterest expense for 2013 was $ 39.1 million , compar ed to $ 35.8 million in 2012 , representing an increase of $ 3.3 million , or 9.2 % . most of the increase was a result of an 11.7 % increase in salary and employee benefits , mainly due to $ 1.3 million recorded in severance costs . story_separator_special_tag the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 21.9 % of total loans and in 2013 , the net loan losses accounted for 66.7 % of the losses of the entire loan portfolio . for the commercial loan category , which represents only 16.7 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the commercial real estate loan category represents 34.4 % of the total loan portfolio . there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more close ly monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally no fees are charged on any unused portion . normally , an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2013 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date also , there were no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio de creased $ 41.1 million in 2013. maturing security funds were used to fund loan portfolio growth . excess balances of federal funds sold were strategically invested throughout the year . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 93.1 million in securities in 2013 , resulting in net security gains of $ 863 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities i s limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . 31 volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonab le considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and estimated maturity of the mortgage-backed security portfolio . prepayments that are faster than anticipated may shorten the life of the security and may result in faster amortization of any premiums paid and thereby reduce the net yield on such securities . during periods of declining mortgage interest rates , refinancing generally increases and accelerates the prepayment of the underlying mortgages and the related security . all holdings of mortgage-backed securities were issued by u.s. government sponsored enterprises . the following table shows the carrying value of investment securities by type of obligation at the dates indicated : type replace_table_token_13_th 32 a summary of debt securities held at december 31 , 2013 classified according to maturity and including weighted average yield for each range of maturities is set forth below : replace_table_token_14_th ( 1 ) the weighted average yield has been computed by dividing the total contractual interest income adjusted for amortization of premium or accretion of discount over the life of the security by the par value of the securities outstanding . the weighted average yield of tax-exempt obligations of states and political subdivisions has been calculated on a fully taxable equivalent basis . the amounts of adjustments to interest which are based on the statutory tax rate of 35 % were $ 38 thousand , $ 590 thousand , $ 536 thousand and $ 209 thousand for the four ranges of maturities . ( 2 ) payments based on contractual maturity . premises and equipment premises and equipment de creased $ 1.2 million in 2013. the decrease was the result of normal depreciation and the decision to close two retail branch locations in leetonia and warren , ohio . with declining branch transaction counts and banking trends driving customers towards online banking the decision was made to close the two branches in october 2013 . 33 deposits deposits represent the company 's principal source of funds . the deposit base consists of demand deposits , savings and money market accounts and other time deposits . during the year , the company 's
| liquidity farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's abili ty to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . 27 along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major dome stic banks . at december 31 , 2013 , farmers had borrowed $ 6 million against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity .
| 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. |
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 farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's abili ty to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . 27 along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major dome stic banks . at december 31 , 2013 , farmers had borrowed $ 6 million against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity .
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Suspicious Activity Report : for 2013 , the return on average equity was 6.66 % , compared to 8.42 % for 2012. the return on average assets was 0.68 % for 2013 and 0.89 % for 2012. the results for 2013 included $ 863 thousand in gains on sales of securities , compared to $ 1.1 million in 2012. during 2013 , the company completed the acquisition of all outstanding stock of the retirement planning consultancy national associates , inc. of cleveland , ohio . the company is a leading independent consultant to retirement plans and offers actuarial , plan design , compliance and administrative services . as a third party administrator , nai provides services to 401 ( k ) , defined benefit , profit sharing , flexible spending , 403 ( b ) , esop and other plans . in acquiring nai , the company assumes a professional staff that is highly qualified and credentialed . synergies and the cost savings resulting from the combining of the operations of the companies will help drive an increase of non-interest income . net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on intere st-bearing liabilities . for 2013 , taxable equivalent net interest income decreased $ 822 thousand , or 2.12 % , from 2012. interest-earning assets averaged $ 1.061 billion during 2013 , increasing $ 30.4 million , or 2.95 % , compared to 2012. the company 's interest-bearing liabilities decreased 0.34 % from $ 881.6 million in 2012 to $ 878.7 million in 2013. the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2013 was 3.47 % , decreasing from 3.66 % in 2012. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2013 , the net interest margin , measured on a fully taxable equivalent basis , decreased to 3.58 % , compared to 3.76 % in 2012. the decrease in net interest margin is largely a result of interest-earning assets repricing at lower rate . total taxable equivalent interes t income was $ 43.0 million for 2013 , which is $ 2.0 million less than the $ 45.0 million reported in 2012. in comparing the years ending december 31 , 2013 and 2012 , yields on earning assets decreased 31 basis points while the cost of interest bearing liabilities decreased 12 basis points . average loans increased $ 30.6 million , or 5.42 % , in 2013 , however the yields decreased from 5.71 % in 2012 to 5.24 % in 2013. tax equated income from securities , federal funds and other decreased $ 933 thousand , or 7.3 % , in 2013 , farmers saw its yields on these assets decreased from 2.73 % in 2012 to 2.53 % in 2013. the average balance of investment securities and federal funds sold decreased slightly from $ 465.4 million in 2012 to $ 465.2 million in 2013 . 25 total interest expense a mounted to $ 5.1 million for 2013 , a 18.5 % decrease from $ 6.2 million reported in 2012. the decrease in 2013 is the result of lower rates of interest paid on interest-bearing deposits and repurchase agreements . the cost of interest-bearing liabilities decreased from 0.70 % in 2012 to 0.58 % in 2013. management will continue to evaluate future changes in interest rates and the shape of the treasury yield curve so that assets and liabilities may be priced accordingly to minimize the impact on the net interest margin . noninterest income total noninterest income increased by $ 1.3 million in 2013 . the increase in noninterest income is due to several factors . retirement plan consulting fees increased to $ 477 thousand compared to none in 2012 reflecting the income earned from the newly acquired entity , national associates , inc. ( “ nai ” ) . service charges on deposit accounts increased from $ 2.0 million in 2012 to $ 2.4 million in 2013 as the company made adjustments to the service charge structure of its deposit accounts . bank owned life insurance income increased $ 170 thousand as the company received tax free death benefits , which are included in income . insurance agency commissions also increased $ 119 thousand and trust fees increased $ 86 thousand , as management continues to focus on diversifying revenue sources to decrease the reliance on net interest income as the main driver of revenue . other operating income also increased $ 406 thousand , which is primarily the result of a gain on the sale of land that was owned by the company . noninterest expenses noninterest expense for 2013 was $ 39.1 million , compar ed to $ 35.8 million in 2012 , representing an increase of $ 3.3 million , or 9.2 % . most of the increase was a result of an 11.7 % increase in salary and employee benefits , mainly due to $ 1.3 million recorded in severance costs . story_separator_special_tag the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 21.9 % of total loans and in 2013 , the net loan losses accounted for 66.7 % of the losses of the entire loan portfolio . for the commercial loan category , which represents only 16.7 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the commercial real estate loan category represents 34.4 % of the total loan portfolio . there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more close ly monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally no fees are charged on any unused portion . normally , an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2013 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date also , there were no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio de creased $ 41.1 million in 2013. maturing security funds were used to fund loan portfolio growth . excess balances of federal funds sold were strategically invested throughout the year . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 93.1 million in securities in 2013 , resulting in net security gains of $ 863 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities i s limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . 31 volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonab le considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and estimated maturity of the mortgage-backed security portfolio . prepayments that are faster than anticipated may shorten the life of the security and may result in faster amortization of any premiums paid and thereby reduce the net yield on such securities . during periods of declining mortgage interest rates , refinancing generally increases and accelerates the prepayment of the underlying mortgages and the related security . all holdings of mortgage-backed securities were issued by u.s. government sponsored enterprises . the following table shows the carrying value of investment securities by type of obligation at the dates indicated : type replace_table_token_13_th 32 a summary of debt securities held at december 31 , 2013 classified according to maturity and including weighted average yield for each range of maturities is set forth below : replace_table_token_14_th ( 1 ) the weighted average yield has been computed by dividing the total contractual interest income adjusted for amortization of premium or accretion of discount over the life of the security by the par value of the securities outstanding . the weighted average yield of tax-exempt obligations of states and political subdivisions has been calculated on a fully taxable equivalent basis . the amounts of adjustments to interest which are based on the statutory tax rate of 35 % were $ 38 thousand , $ 590 thousand , $ 536 thousand and $ 209 thousand for the four ranges of maturities . ( 2 ) payments based on contractual maturity . premises and equipment premises and equipment de creased $ 1.2 million in 2013. the decrease was the result of normal depreciation and the decision to close two retail branch locations in leetonia and warren , ohio . with declining branch transaction counts and banking trends driving customers towards online banking the decision was made to close the two branches in october 2013 . 33 deposits deposits represent the company 's principal source of funds . the deposit base consists of demand deposits , savings and money market accounts and other time deposits . during the year , the company 's
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1,016 | in 2016 , 43 % of our product revenues were from devices in the marketplace for over two years and 37 % for devices in the marketplace for one to two years and 20 % for devices in the marketplace for less than one year . 43 we believe demand is growing rapidly for our antenna solutions and there is a significant market opportunity . as the ability to provide mobile internet access has grown , our solutions and expertise have become more important to prospects and customers . as a passive component , embedded antennas can be viewed as a commodity . however , our design , engineering , and resea rch show that antenna selection , placement , and testing can have significant improvements in device performance . we believe that we are chosen when performance is a more significant factor than price , and our distinctive focus on superior designs that prov ide increased range and throughput has allowed us to build a leadership position in the in-home wlan antenna market . factors affecting our operating results we believe that our performance and future success depend upon several factors , including the average selling price of our products per device , the number of antennas per device , manufacturing costs , investments in our growth , and our ability to diversify the number of devices that incorporate our antenna products . our customers are extremely price conscious , and our operating results are affected by pricing pressure which may force us to lower prices below our current prices . in addition , a few end-customer devices which incorporate our antenna products comprise a significant amount of our sales , and the discontinuation or modification of such devices may materially and adversely affect our sales and results of operations . we have seen the number of devices increase 55 % and number of antennas per device increase 18 % for the year ended december 31 , 2016 when compared to the year ended december 31 , 2015. our ability to maintain or increase our sales depends on new and existing end-customers selecting our antenna solutions for their devices and depends on investments in our growth to address customer needs , target new end markets , develop our product offerings and technology solutions and expand internationally . while each of these areas presents significant opportunities for us , they also pose significant risks and challenges we must successfully address . we discuss many of these risks , uncertainties and other factors in this annual report in greater detail under the section entitled “ risk factors . ” key components of our results of operations and financial condition sales we primarily generate revenue from the sales of our products . as discussed further in “ critical accounting policies and significant judgments and estimates ” below , we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable , and collectability is reasonably assured . we generally recognize sales at the time of shipment to our customers , provided that all other revenue recognition criteria have been met . although currently insignificant , we may also generate service revenue derived from agreements to provide design , engineering , and testing to a customer . cost of goods sold the cost of goods sold reflects the cost of producing antenna products that are shipped for our customers ' devices . this primarily includes manufacturing costs of our products payable to our third-party contract manufacturers . the cost of goods sold that we generate from services provided to customers primarily includes personnel costs . operating expenses our operating expenses are classified into three categories : research and development , sales and marketing , and general and administrative . for each category , the largest component is personnel costs , which includes salaries , employee benefit costs , bonuses , and stock-based compensation . operating expenses also include allocated overhead costs for depreciation of equipment , facilities and information technology . allocated costs for facilities consist of leasehold improvements and rent . operating expenses are generally recognized as incurred . research and development . research and development expenses primarily consist of personnel and facility-related costs attributable to our engineering research and development personnel . these expenses include work related to the design , engineering and testing of antenna designs , and antenna integration , validation and testing of customer devices . these expenses include salaries , including stock-based compensation , benefits , bonuses , travel , communications , and similar costs , and depreciation and allocated operating expenses such as office supplies , 44 premises expenses , insurance and corporate legal expenses . we may also incur expenses from consultants and for prototyping new antenna solutions . we expect research and development expense to increase in absolute dollars as we inc rease our research and development headcount to further strengthen and enhance our antenna design and integration capabilities and invest in the development of new solutions and markets , although our research and development expense may fluctuate as a perc entage of total sales . sales and marketing . sales and marketing expenses primarily consist of personnel and facility-related costs for our sales , marketing , and business development personnel , stock-based compensation and bonuses earned by our sales personnel , and commissions earned by our third-party sales representative firms . sales and marketing expense also includes the costs of trade shows , marketing programs , promotional materials , demonstration equipment , travel , recruiting , and allocated costs for certain facilities . we expect sales and marketing expense to continue to increase in absolute dollars as we increase the size of our sales and marketing organizations in support of our investment in our growth opportunities , although our sales and marketing expense may fluctuate as a percentage of total sales . general and administrative . story_separator_special_tag the grant date fair value of stock-based awards is expensed on a straight-line basis over the vesting period of the respective award . we account for stock-based compensation arrangements with non-employees using a fair value approach . the fair value of these options is measured using the black-scholes-merton option-pricing model reflecting the same assumptions as applied to employee options in each of the reported periods , other than the expected life , which is assumed to be the remaining contractual life of the option . the compensation costs of these arrangements are subject to remeasurement over the vesting terms as earned . we recorded stock-based compensation expense of approximately $ 0.3 million , $ 0.3 million and $ 0.7 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . we expect to continue to grant stock options and other equity-based awards in the future , and to the extent that we do , our stock-based compensation expense recognized in future periods will likely increase . the black-scholes-merton option-pricing model requires the use of highly subjective and complex assumptions , which determine the fair value of stock-based awards . if we had made different assumptions , our 52 stock-based compensation expense , net loss and net loss per share of common stock could have been significantly different . our assumptions are as follows : fair value of our common stock . prior to our initial public offering , we estimated the fair value of our common stock . see “ significant factors , assumptions and methodologies used in determining fair value of our common stock ” below . upon the closing of our initial public offering , our common stock is valued by reference to the publicly traded price of our common stock . expected term . the expected term represents the period that the stock-based awards are expected to be outstanding . our historical share option exercise experience does not provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient data . therefore , we estimate the expected term by using the simplified method , which calculates the expected term as the average of the time-to-vesting and the contractual life of the options . expected volatility . we have historically been a private company . therefore , we historically estimated the expected volatility based on the average historical volatilities of publicly traded companies within our industry that we consider to be comparable to our business over a period approximately equal to the expected term . we intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case , more suitable companies whose share prices are publicly available would be utilized in the calculation . risk-free interest rate . the risk-free interest rate is based on the u.s. treasury yield in effect at the time of grant for zero coupon u.s. treasury notes with maturities approximately equal to the expected term . expected dividend . the expected dividend is assumed to be zero as we have never paid dividends and have no current plans to pay any dividends on our common stock . expected forfeiture . we use historical data to estimate pre-vesting option forfeitures and record stock- based compensation expense only for those awards that are expected to vest . to the extent actual forfeitures differ from the estimates , the difference will be recorded as a cumulative adjustment in the period that the estimates are revised . significant factors , assumptions and methodologies used in determining fair value of our common stock we are also required to estimate the fair value of the common stock underlying our stock-based awards when performing the fair value calculations using the black-scholes-merton option-pricing model . our board of directors , with the assistance of management , determined the fair value of our common stock on each grant date . all options to purchase shares of our common stock are intended to be granted with an exercise price per share no less than the fair value per share of our common stock underlying those options on the date of grant , based on the information known to us on the date of grant . because , prior to our initial public offering , there was historically no public market for our common stock , the fair value of the common stock that underlies our stock options has historically been determined by our board of directors based upon information available to it at the time of grant , including the following : contemporaneous valuations performed by a qualified , independent appraiser ; our current and projected operating and financial performance , including our levels of available capital resources ; trends and developments in our industry ; the valuation of publicly traded companies in our sector , as well as recently completed initial public offerings and mergers and acquisitions of comparable companies ; 53 rights , preferences and privileges of our common stock compared to the rights , preferences and privileges of our other outstanding equity securities ; u.s. and global economic and capital market conditions ; the likelihood of achieving a liquidity event for the shares of common stock , such as an initial public offering or an acquisition of our company given prevailing market and sector conditions ; the illiquidity of our securities by virtue of being a private company ; business risks ; and management and board experience . our business enterprise value was estimated using a combination of two generally accepted approaches : the income approach and the market-based approach . the income approach estimates enterprise value based on the estimated present value of future net cash flows the business is expected to generate over its remaining
| liquidity and capital resources we had cash and cash equivalents of $ 45.2 million at december 31 , 2016. cash and cash equivalents consist of cash . we did not have any short-term or long-term investments . in august 2016 , we completed our initial public offering , or ipo , and received net proceeds of approximately $ 10.8 million , including the sale of shares pursuant to the exercise of the underwriters ' over-allotment option and after deducting underwriting discounts and commissions and offering-related transaction costs . in december 2016 , we completed our public offering of common stock and received net proceeds of approximately $ 26.0 million , including the sale of shares pursuant to the exercise of the underwriters ' over-allotment option and after deducting underwriting discounts and commissions and estimated offering-related transaction costs . before 2013 , we had incurred net losses in each year since our inception . as a result , we had an accumulated deficit of $ 43.6 million at december 31 , 2016. since inception , we have primarily financed our operations and capital expenditures through private sales of preferred stock , convertible promissory notes and cash flows from our operations . we have raised an aggregate of $ 29.5 million in net proceeds from the issuance of our preferred stock and convertible promissory notes and $ 36.8 million from the sale of common stock in public offerings . as of december 31 , 2016 , we had approximately $ 2.7 million outstanding under a term loan and approximately $ 0.1 million outstanding under a growth capital term loan pursuant to our amended and restated loan and security agreement with silicon valley bank . in addition , under our amended and restated loan and security agreement with silicon valley bank , we have a revolving line of credit for $ 3.0 million . as of december 31 , 2016 , there was no balance owed on the line of credit .
| 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. |
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 we had cash and cash equivalents of $ 45.2 million at december 31 , 2016. cash and cash equivalents consist of cash . we did not have any short-term or long-term investments . in august 2016 , we completed our initial public offering , or ipo , and received net proceeds of approximately $ 10.8 million , including the sale of shares pursuant to the exercise of the underwriters ' over-allotment option and after deducting underwriting discounts and commissions and offering-related transaction costs . in december 2016 , we completed our public offering of common stock and received net proceeds of approximately $ 26.0 million , including the sale of shares pursuant to the exercise of the underwriters ' over-allotment option and after deducting underwriting discounts and commissions and estimated offering-related transaction costs . before 2013 , we had incurred net losses in each year since our inception . as a result , we had an accumulated deficit of $ 43.6 million at december 31 , 2016. since inception , we have primarily financed our operations and capital expenditures through private sales of preferred stock , convertible promissory notes and cash flows from our operations . we have raised an aggregate of $ 29.5 million in net proceeds from the issuance of our preferred stock and convertible promissory notes and $ 36.8 million from the sale of common stock in public offerings . as of december 31 , 2016 , we had approximately $ 2.7 million outstanding under a term loan and approximately $ 0.1 million outstanding under a growth capital term loan pursuant to our amended and restated loan and security agreement with silicon valley bank . in addition , under our amended and restated loan and security agreement with silicon valley bank , we have a revolving line of credit for $ 3.0 million . as of december 31 , 2016 , there was no balance owed on the line of credit .
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Suspicious Activity Report : in 2016 , 43 % of our product revenues were from devices in the marketplace for over two years and 37 % for devices in the marketplace for one to two years and 20 % for devices in the marketplace for less than one year . 43 we believe demand is growing rapidly for our antenna solutions and there is a significant market opportunity . as the ability to provide mobile internet access has grown , our solutions and expertise have become more important to prospects and customers . as a passive component , embedded antennas can be viewed as a commodity . however , our design , engineering , and resea rch show that antenna selection , placement , and testing can have significant improvements in device performance . we believe that we are chosen when performance is a more significant factor than price , and our distinctive focus on superior designs that prov ide increased range and throughput has allowed us to build a leadership position in the in-home wlan antenna market . factors affecting our operating results we believe that our performance and future success depend upon several factors , including the average selling price of our products per device , the number of antennas per device , manufacturing costs , investments in our growth , and our ability to diversify the number of devices that incorporate our antenna products . our customers are extremely price conscious , and our operating results are affected by pricing pressure which may force us to lower prices below our current prices . in addition , a few end-customer devices which incorporate our antenna products comprise a significant amount of our sales , and the discontinuation or modification of such devices may materially and adversely affect our sales and results of operations . we have seen the number of devices increase 55 % and number of antennas per device increase 18 % for the year ended december 31 , 2016 when compared to the year ended december 31 , 2015. our ability to maintain or increase our sales depends on new and existing end-customers selecting our antenna solutions for their devices and depends on investments in our growth to address customer needs , target new end markets , develop our product offerings and technology solutions and expand internationally . while each of these areas presents significant opportunities for us , they also pose significant risks and challenges we must successfully address . we discuss many of these risks , uncertainties and other factors in this annual report in greater detail under the section entitled “ risk factors . ” key components of our results of operations and financial condition sales we primarily generate revenue from the sales of our products . as discussed further in “ critical accounting policies and significant judgments and estimates ” below , we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable , and collectability is reasonably assured . we generally recognize sales at the time of shipment to our customers , provided that all other revenue recognition criteria have been met . although currently insignificant , we may also generate service revenue derived from agreements to provide design , engineering , and testing to a customer . cost of goods sold the cost of goods sold reflects the cost of producing antenna products that are shipped for our customers ' devices . this primarily includes manufacturing costs of our products payable to our third-party contract manufacturers . the cost of goods sold that we generate from services provided to customers primarily includes personnel costs . operating expenses our operating expenses are classified into three categories : research and development , sales and marketing , and general and administrative . for each category , the largest component is personnel costs , which includes salaries , employee benefit costs , bonuses , and stock-based compensation . operating expenses also include allocated overhead costs for depreciation of equipment , facilities and information technology . allocated costs for facilities consist of leasehold improvements and rent . operating expenses are generally recognized as incurred . research and development . research and development expenses primarily consist of personnel and facility-related costs attributable to our engineering research and development personnel . these expenses include work related to the design , engineering and testing of antenna designs , and antenna integration , validation and testing of customer devices . these expenses include salaries , including stock-based compensation , benefits , bonuses , travel , communications , and similar costs , and depreciation and allocated operating expenses such as office supplies , 44 premises expenses , insurance and corporate legal expenses . we may also incur expenses from consultants and for prototyping new antenna solutions . we expect research and development expense to increase in absolute dollars as we inc rease our research and development headcount to further strengthen and enhance our antenna design and integration capabilities and invest in the development of new solutions and markets , although our research and development expense may fluctuate as a perc entage of total sales . sales and marketing . sales and marketing expenses primarily consist of personnel and facility-related costs for our sales , marketing , and business development personnel , stock-based compensation and bonuses earned by our sales personnel , and commissions earned by our third-party sales representative firms . sales and marketing expense also includes the costs of trade shows , marketing programs , promotional materials , demonstration equipment , travel , recruiting , and allocated costs for certain facilities . we expect sales and marketing expense to continue to increase in absolute dollars as we increase the size of our sales and marketing organizations in support of our investment in our growth opportunities , although our sales and marketing expense may fluctuate as a percentage of total sales . general and administrative . story_separator_special_tag the grant date fair value of stock-based awards is expensed on a straight-line basis over the vesting period of the respective award . we account for stock-based compensation arrangements with non-employees using a fair value approach . the fair value of these options is measured using the black-scholes-merton option-pricing model reflecting the same assumptions as applied to employee options in each of the reported periods , other than the expected life , which is assumed to be the remaining contractual life of the option . the compensation costs of these arrangements are subject to remeasurement over the vesting terms as earned . we recorded stock-based compensation expense of approximately $ 0.3 million , $ 0.3 million and $ 0.7 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . we expect to continue to grant stock options and other equity-based awards in the future , and to the extent that we do , our stock-based compensation expense recognized in future periods will likely increase . the black-scholes-merton option-pricing model requires the use of highly subjective and complex assumptions , which determine the fair value of stock-based awards . if we had made different assumptions , our 52 stock-based compensation expense , net loss and net loss per share of common stock could have been significantly different . our assumptions are as follows : fair value of our common stock . prior to our initial public offering , we estimated the fair value of our common stock . see “ significant factors , assumptions and methodologies used in determining fair value of our common stock ” below . upon the closing of our initial public offering , our common stock is valued by reference to the publicly traded price of our common stock . expected term . the expected term represents the period that the stock-based awards are expected to be outstanding . our historical share option exercise experience does not provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient data . therefore , we estimate the expected term by using the simplified method , which calculates the expected term as the average of the time-to-vesting and the contractual life of the options . expected volatility . we have historically been a private company . therefore , we historically estimated the expected volatility based on the average historical volatilities of publicly traded companies within our industry that we consider to be comparable to our business over a period approximately equal to the expected term . we intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case , more suitable companies whose share prices are publicly available would be utilized in the calculation . risk-free interest rate . the risk-free interest rate is based on the u.s. treasury yield in effect at the time of grant for zero coupon u.s. treasury notes with maturities approximately equal to the expected term . expected dividend . the expected dividend is assumed to be zero as we have never paid dividends and have no current plans to pay any dividends on our common stock . expected forfeiture . we use historical data to estimate pre-vesting option forfeitures and record stock- based compensation expense only for those awards that are expected to vest . to the extent actual forfeitures differ from the estimates , the difference will be recorded as a cumulative adjustment in the period that the estimates are revised . significant factors , assumptions and methodologies used in determining fair value of our common stock we are also required to estimate the fair value of the common stock underlying our stock-based awards when performing the fair value calculations using the black-scholes-merton option-pricing model . our board of directors , with the assistance of management , determined the fair value of our common stock on each grant date . all options to purchase shares of our common stock are intended to be granted with an exercise price per share no less than the fair value per share of our common stock underlying those options on the date of grant , based on the information known to us on the date of grant . because , prior to our initial public offering , there was historically no public market for our common stock , the fair value of the common stock that underlies our stock options has historically been determined by our board of directors based upon information available to it at the time of grant , including the following : contemporaneous valuations performed by a qualified , independent appraiser ; our current and projected operating and financial performance , including our levels of available capital resources ; trends and developments in our industry ; the valuation of publicly traded companies in our sector , as well as recently completed initial public offerings and mergers and acquisitions of comparable companies ; 53 rights , preferences and privileges of our common stock compared to the rights , preferences and privileges of our other outstanding equity securities ; u.s. and global economic and capital market conditions ; the likelihood of achieving a liquidity event for the shares of common stock , such as an initial public offering or an acquisition of our company given prevailing market and sector conditions ; the illiquidity of our securities by virtue of being a private company ; business risks ; and management and board experience . our business enterprise value was estimated using a combination of two generally accepted approaches : the income approach and the market-based approach . the income approach estimates enterprise value based on the estimated present value of future net cash flows the business is expected to generate over its remaining
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1,017 | the combined effect of continued low market interest rates and yields and competitive forces in the chicago metropolitan area and in our other business units is expected to maintain pressure on asset yields throughout 2016. the company 's interest rate risk position is neutral to slightly asset-sensitive , such that an increase in market interest rates will tend to be a positive factor in the company 's earnings . our focus in 2016 will be on balance sheet growth as we continue to deploy our available surplus capital . we will continue the evolution of our loan portfolio towards a configuration that permits better growth rates in multiple , independent segments with comparable risk-adjusted yields . we expect to expand our marketing of new deposit products to further improve deposit-related revenue in 2016 ; in addition , we may also be successful in further increasing revenues related to trust , non-deposit wealth management , and commercial property and casualty insurance sales due to new product capabilities and increased dedicated sales capacity . core noninterest expense is expected to hold steady or continue to decline slightly despite increases in advertising and marketing expenses related to loan and deposit growth initiatives . through these actions , we hope to further improve our core operating earnings in 2016 to a level consistent with , or in excess of , peer institutions in our market . 23 results of operation net income comparison of year 2015 to 2014 . we recorded net income of $ 8.7 million for the year ended december 31 , 2015 , compared to net income of $ 40.6 million for 2014 . net income for 2014 included a tax benefit of $ 35.1 million that we recorded to reflect the reversal of a valuation allowance that we established in 2011 for deferred tax assets . excluding this tax benefit , net income for the year ended december 31 , 2014 would have been $ 5.5 million . the $ 3.2 million , or 57.8 % , increase in year over year earnings exclusive of the 2014 tax benefit was primarily due to the combined effect of a $ 2.5 million increase in the recovery of provision for loan losses and a $ 2.5 million decrease in noninterest expense for the year ended december 31 , 2015 . our earnings per share of common stock was $ 0.44 for the year ended december 31 , 2015 , compared to $ 2.01 per share of common stock for the year ended december 31 , 2014 . excluding the tax benefit that we recorded for the recovery of the deferred tax assets valuation allowance , our earnings per share of common stock would have been $ 0.27 for the year ended december 31 , 2014. comparison of year 2014 to 2013 . we recorded net income of $ 40.6 million for the year ended december 31 , 2014 , compared to net income of $ 3.3 million for 2013. net income for 2014 included a tax benefit of $ 35.1 million that we recorded to reflect the reversal of a valuation allowance that we established in 2011 for deferred tax assets . excluding this tax benefit , net income for the year ended december 31 , 2014 would have been $ 5.5 million . net income for 2013 included a $ 1.3 million gain on sale of owner-occupied and investor-owned one-to-four family residential loans designated as held-for-sale . our earnings per share of common stock was $ 2.01 for the year ended december 31 , 2014 , compared to $ 0.16 per share of common stock for the year ended december 31 , 2013. excluding the tax benefit that we recorded for the recovery of the deferred tax assets valuation allowance , our earnings per share of common stock would have been $ 0.27 for the year ended december 31 , 2014. net interest income net interest income is our primary source of revenue . net interest income equals the excess of interest income ( including discount accretion on purchased impaired loans ) plus fees earned on interest earning assets over interest expense incurred on interest-bearing liabilities . the level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income . interest rate spread and net interest margin are utilized to measure and explain changes in net interest income . interest rate spread is the difference between the yield on interest-earning assets and the rate paid for interest-bearing liabilities that fund those assets . the net interest margin is expressed as the percentage of net interest income to average interest-earning assets . the net interest margin exceeds the interest rate spread because noninterest-bearing sources of funds , principally noninterest-bearing demand deposits and stockholders ' equity , also support interest-earning assets . the accounting policies underlying the recognition of interest income on loans , securities , and other interest-earning assets are included in note 1 of “ notes to consolidated financial statements ” in item 8 of this form 10-k. 24 average balance sheets the following table sets forth average balance sheets , average yields and costs , and certain other information . no tax-equivalent yield adjustments were made , as the effect of these adjustments would not be material . average balances are daily average balances . nonaccrual loans are included in the computation of average balances , but have been reflected in the table as loans carrying a zero yield . the yields set forth below include the effect of deferred fees and expenses , discounts and premiums , purchase accounting adjustments that are amortized or accreted to interest income or expense . replace_table_token_4_th _ ( 1 ) net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities . ( 2 ) net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities . story_separator_special_tag 29 total stockholders ' equity was $ 212.4 million at december 31 , 2015 , compared to $ 216.1 million at december 31 , 2014 . the decrease in total stockholders ' equity was primarily due to the combined impact of our repurchase of 804,649 shares of our common stock at a total cost of $ 10.0 million , and our declaration and payment of cash dividends totaling $ 4.1 million during the year ended december 31 , 2015 . these items were partially offset by net income of $ 8.7 million that we recorded for the year ended december 31 , 2015 . the unallocated shares of common stock that our esop owns were reflected as a $ 9.3 million reduction to stockholders ' equity at december 31 , 2015 , compared to a $ 10.3 million reduction to stockholders ' equity at december 31 , 2014 . securities our investment policy is established by our board of directors . the policy emphasizes safety of the investment , liquidity requirements , potential returns , cash flow targets , and consistency with our interest rate risk management strategy . at december 31 , 2015 , our mortgage-backed securities and collateralized mortgage obligations ( “ cmos ” ) reflected in the following table were issued by u.s. government-sponsored enterprises and agencies , freddie mac , fannie mae and ginnie mae , and are obligations which the federal government has affirmed its commitment to support . all securities reflected in the table were classified as available-for-sale at december 31 , 2015 , 2014 and 2013 . we hold fhlbc common stock to qualify for membership in the federal home loan bank system and to be eligible to borrow funds under the fhlbc 's advance program . the aggregate cost of our fhlbc common stock as of december 31 , 2015 was $ 6.3 million based on its par value . there is no market for fhlbc common stock . we purchased $ 189,000 of fhlbc stock during 2014 and redeemed $ 2.3 million of excess fhlbc stock during 2013 . at december 31 , 2015 we owned 431,000 shares of fhlbc common stock in excess of the number of shares we were required to own to maintain our membership in the federal home loan bank system and to be eligible to obtain advances . the following table sets forth the composition , amortized cost and fair value of our securities . replace_table_token_8_th the fair values of marketable equity securities are generally determined by quoted prices , in active markets , for each specific security . if quoted market prices are not available for a marketable equity security , we determine its fair value based on the quoted price of a similar security traded in an active market . the fair values of debt securities are generally determined by matrix pricing , which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities , but rather by relying on the securities ' relationship to other benchmark quoted securities . the fair value of a security is used to determine the amount of any unrealized losses that must be reflected in our other comprehensive income and the net book value of our securities . we evaluate marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance , which generally provides that if a 30 marketable security is in an unrealized loss position , whether due to general market conditions or industry or issuer-specific factors , the holder of the securities must assess whether the impairment is other-than-temporary . portfolio maturities and yields the composition and maturities of the securities portfolio and the mortgage-backed securities portfolio at december 31 , 2015 are summarized in the following table . maturities are based on the final contractual payment dates , and do not reflect the impact of prepayments or early redemptions that may occur . municipal securities yields have not been adjusted to a tax-equivalent basis , as the amount is immaterial . replace_table_token_9_th 31 loan portfolio we originate multi-family mortgage loans , nonresidential real estate loans , commercial loans and commercial leases . in addition , we originate one-to-four family residential mortgage loans and consumer loans , and purchase and sell loan participations from time-to-time . we do not originate construction and land loans , but our loan portfolio contains residual balances of this loan type primarily resulting from our acquisition of another institution . our principal loan products are discussed in note 4 of the `` notes to consolidated financial statements `` in item 8 of this form 10-k. the following table sets forth the composition of our loan portfolio , excluding loans held-for-sale , by type of loan . replace_table_token_10_th we engage in multi-family lending activities in carefully selected metropolitan statistical areas outside of our primary lending area and engage in healthcare lending and commercial leasing activities on a nationwide basis . at december 31 , 2015 , $ 309.7 million , or 61.1 % , or our multi-family loans were in the metropolitan statistical area for chicago , illinois , while $ 47.5 million , or 9.4 % , were in the metropolitan statistical area for dallas , texas , $ 53.8 million , or 10.6 % , were in the metropolitan statistical area for denver , colorado , $ 22.4 million , or 4.4 % , were in the metropolitan statistical area for minneapolis , minnesota , and $ 11.5 million , or 2.3 % , were in the metropolitan statistical area for tampa , florida . 32 loan portfolio maturities the following table summarizes the scheduled repayments of our loan portfolio at december 31 , 2015 . demand loans , loans having no stated repayment schedule or maturity and overdraft loans are reported as being due in one year or less .
| liquidity management liquidity management – bank . the overall objective of our liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities . we manage liquidity in order to meet deposit withdrawals on demand or at contractual maturity , to repay borrowings as they mature , and to fund new loans and investments as opportunities arise . our primary sources of funds are deposits , principal and interest payments on loans and securities , and , to a lesser extent , wholesale borrowings , the proceeds from maturing securities and short-term investments , and the proceeds from the sales of loans and securities . the scheduled amortization of loans and securities , as well as proceeds from borrowings , are predictable sources of funds . other funding sources , however , such as deposit inflows , mortgage prepayments and mortgage loan sales are greatly influenced by market interest rates , economic conditions and competition . our cash flows are derived from operating activities , investing activities and financing activities as reported in the consolidated statements of cash flows in our consolidated financial statements . our primary investing activities are the origination for 43 investment of one-to-four family residential mortgage loans , multi-family mortgage loans , nonresidential real estate loans , commercial leases , construction and land loans , and commercial loans and the purchase of investment securities and mortgage-backed securities . during the years ended december 31 , 2015 , 2014 and 2013 , our loans originated for investment totaled $ 509.0 million , $ 513.4 million , and $ 524.6 million , respectively . purchases of securities totaled $ 60.7 million , $ 73.1 million and $ 74.2 million for the years ended december 31 , 2015 , 2014 , and 2013 , respectively . these activities were funded primarily by principal repayments on loans and securities , and the sale of loans and securities .
| 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. |
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 management liquidity management – bank . the overall objective of our liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities . we manage liquidity in order to meet deposit withdrawals on demand or at contractual maturity , to repay borrowings as they mature , and to fund new loans and investments as opportunities arise . our primary sources of funds are deposits , principal and interest payments on loans and securities , and , to a lesser extent , wholesale borrowings , the proceeds from maturing securities and short-term investments , and the proceeds from the sales of loans and securities . the scheduled amortization of loans and securities , as well as proceeds from borrowings , are predictable sources of funds . other funding sources , however , such as deposit inflows , mortgage prepayments and mortgage loan sales are greatly influenced by market interest rates , economic conditions and competition . our cash flows are derived from operating activities , investing activities and financing activities as reported in the consolidated statements of cash flows in our consolidated financial statements . our primary investing activities are the origination for 43 investment of one-to-four family residential mortgage loans , multi-family mortgage loans , nonresidential real estate loans , commercial leases , construction and land loans , and commercial loans and the purchase of investment securities and mortgage-backed securities . during the years ended december 31 , 2015 , 2014 and 2013 , our loans originated for investment totaled $ 509.0 million , $ 513.4 million , and $ 524.6 million , respectively . purchases of securities totaled $ 60.7 million , $ 73.1 million and $ 74.2 million for the years ended december 31 , 2015 , 2014 , and 2013 , respectively . these activities were funded primarily by principal repayments on loans and securities , and the sale of loans and securities .
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Suspicious Activity Report : the combined effect of continued low market interest rates and yields and competitive forces in the chicago metropolitan area and in our other business units is expected to maintain pressure on asset yields throughout 2016. the company 's interest rate risk position is neutral to slightly asset-sensitive , such that an increase in market interest rates will tend to be a positive factor in the company 's earnings . our focus in 2016 will be on balance sheet growth as we continue to deploy our available surplus capital . we will continue the evolution of our loan portfolio towards a configuration that permits better growth rates in multiple , independent segments with comparable risk-adjusted yields . we expect to expand our marketing of new deposit products to further improve deposit-related revenue in 2016 ; in addition , we may also be successful in further increasing revenues related to trust , non-deposit wealth management , and commercial property and casualty insurance sales due to new product capabilities and increased dedicated sales capacity . core noninterest expense is expected to hold steady or continue to decline slightly despite increases in advertising and marketing expenses related to loan and deposit growth initiatives . through these actions , we hope to further improve our core operating earnings in 2016 to a level consistent with , or in excess of , peer institutions in our market . 23 results of operation net income comparison of year 2015 to 2014 . we recorded net income of $ 8.7 million for the year ended december 31 , 2015 , compared to net income of $ 40.6 million for 2014 . net income for 2014 included a tax benefit of $ 35.1 million that we recorded to reflect the reversal of a valuation allowance that we established in 2011 for deferred tax assets . excluding this tax benefit , net income for the year ended december 31 , 2014 would have been $ 5.5 million . the $ 3.2 million , or 57.8 % , increase in year over year earnings exclusive of the 2014 tax benefit was primarily due to the combined effect of a $ 2.5 million increase in the recovery of provision for loan losses and a $ 2.5 million decrease in noninterest expense for the year ended december 31 , 2015 . our earnings per share of common stock was $ 0.44 for the year ended december 31 , 2015 , compared to $ 2.01 per share of common stock for the year ended december 31 , 2014 . excluding the tax benefit that we recorded for the recovery of the deferred tax assets valuation allowance , our earnings per share of common stock would have been $ 0.27 for the year ended december 31 , 2014. comparison of year 2014 to 2013 . we recorded net income of $ 40.6 million for the year ended december 31 , 2014 , compared to net income of $ 3.3 million for 2013. net income for 2014 included a tax benefit of $ 35.1 million that we recorded to reflect the reversal of a valuation allowance that we established in 2011 for deferred tax assets . excluding this tax benefit , net income for the year ended december 31 , 2014 would have been $ 5.5 million . net income for 2013 included a $ 1.3 million gain on sale of owner-occupied and investor-owned one-to-four family residential loans designated as held-for-sale . our earnings per share of common stock was $ 2.01 for the year ended december 31 , 2014 , compared to $ 0.16 per share of common stock for the year ended december 31 , 2013. excluding the tax benefit that we recorded for the recovery of the deferred tax assets valuation allowance , our earnings per share of common stock would have been $ 0.27 for the year ended december 31 , 2014. net interest income net interest income is our primary source of revenue . net interest income equals the excess of interest income ( including discount accretion on purchased impaired loans ) plus fees earned on interest earning assets over interest expense incurred on interest-bearing liabilities . the level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income . interest rate spread and net interest margin are utilized to measure and explain changes in net interest income . interest rate spread is the difference between the yield on interest-earning assets and the rate paid for interest-bearing liabilities that fund those assets . the net interest margin is expressed as the percentage of net interest income to average interest-earning assets . the net interest margin exceeds the interest rate spread because noninterest-bearing sources of funds , principally noninterest-bearing demand deposits and stockholders ' equity , also support interest-earning assets . the accounting policies underlying the recognition of interest income on loans , securities , and other interest-earning assets are included in note 1 of “ notes to consolidated financial statements ” in item 8 of this form 10-k. 24 average balance sheets the following table sets forth average balance sheets , average yields and costs , and certain other information . no tax-equivalent yield adjustments were made , as the effect of these adjustments would not be material . average balances are daily average balances . nonaccrual loans are included in the computation of average balances , but have been reflected in the table as loans carrying a zero yield . the yields set forth below include the effect of deferred fees and expenses , discounts and premiums , purchase accounting adjustments that are amortized or accreted to interest income or expense . replace_table_token_4_th _ ( 1 ) net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities . ( 2 ) net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities . story_separator_special_tag 29 total stockholders ' equity was $ 212.4 million at december 31 , 2015 , compared to $ 216.1 million at december 31 , 2014 . the decrease in total stockholders ' equity was primarily due to the combined impact of our repurchase of 804,649 shares of our common stock at a total cost of $ 10.0 million , and our declaration and payment of cash dividends totaling $ 4.1 million during the year ended december 31 , 2015 . these items were partially offset by net income of $ 8.7 million that we recorded for the year ended december 31 , 2015 . the unallocated shares of common stock that our esop owns were reflected as a $ 9.3 million reduction to stockholders ' equity at december 31 , 2015 , compared to a $ 10.3 million reduction to stockholders ' equity at december 31 , 2014 . securities our investment policy is established by our board of directors . the policy emphasizes safety of the investment , liquidity requirements , potential returns , cash flow targets , and consistency with our interest rate risk management strategy . at december 31 , 2015 , our mortgage-backed securities and collateralized mortgage obligations ( “ cmos ” ) reflected in the following table were issued by u.s. government-sponsored enterprises and agencies , freddie mac , fannie mae and ginnie mae , and are obligations which the federal government has affirmed its commitment to support . all securities reflected in the table were classified as available-for-sale at december 31 , 2015 , 2014 and 2013 . we hold fhlbc common stock to qualify for membership in the federal home loan bank system and to be eligible to borrow funds under the fhlbc 's advance program . the aggregate cost of our fhlbc common stock as of december 31 , 2015 was $ 6.3 million based on its par value . there is no market for fhlbc common stock . we purchased $ 189,000 of fhlbc stock during 2014 and redeemed $ 2.3 million of excess fhlbc stock during 2013 . at december 31 , 2015 we owned 431,000 shares of fhlbc common stock in excess of the number of shares we were required to own to maintain our membership in the federal home loan bank system and to be eligible to obtain advances . the following table sets forth the composition , amortized cost and fair value of our securities . replace_table_token_8_th the fair values of marketable equity securities are generally determined by quoted prices , in active markets , for each specific security . if quoted market prices are not available for a marketable equity security , we determine its fair value based on the quoted price of a similar security traded in an active market . the fair values of debt securities are generally determined by matrix pricing , which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities , but rather by relying on the securities ' relationship to other benchmark quoted securities . the fair value of a security is used to determine the amount of any unrealized losses that must be reflected in our other comprehensive income and the net book value of our securities . we evaluate marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance , which generally provides that if a 30 marketable security is in an unrealized loss position , whether due to general market conditions or industry or issuer-specific factors , the holder of the securities must assess whether the impairment is other-than-temporary . portfolio maturities and yields the composition and maturities of the securities portfolio and the mortgage-backed securities portfolio at december 31 , 2015 are summarized in the following table . maturities are based on the final contractual payment dates , and do not reflect the impact of prepayments or early redemptions that may occur . municipal securities yields have not been adjusted to a tax-equivalent basis , as the amount is immaterial . replace_table_token_9_th 31 loan portfolio we originate multi-family mortgage loans , nonresidential real estate loans , commercial loans and commercial leases . in addition , we originate one-to-four family residential mortgage loans and consumer loans , and purchase and sell loan participations from time-to-time . we do not originate construction and land loans , but our loan portfolio contains residual balances of this loan type primarily resulting from our acquisition of another institution . our principal loan products are discussed in note 4 of the `` notes to consolidated financial statements `` in item 8 of this form 10-k. the following table sets forth the composition of our loan portfolio , excluding loans held-for-sale , by type of loan . replace_table_token_10_th we engage in multi-family lending activities in carefully selected metropolitan statistical areas outside of our primary lending area and engage in healthcare lending and commercial leasing activities on a nationwide basis . at december 31 , 2015 , $ 309.7 million , or 61.1 % , or our multi-family loans were in the metropolitan statistical area for chicago , illinois , while $ 47.5 million , or 9.4 % , were in the metropolitan statistical area for dallas , texas , $ 53.8 million , or 10.6 % , were in the metropolitan statistical area for denver , colorado , $ 22.4 million , or 4.4 % , were in the metropolitan statistical area for minneapolis , minnesota , and $ 11.5 million , or 2.3 % , were in the metropolitan statistical area for tampa , florida . 32 loan portfolio maturities the following table summarizes the scheduled repayments of our loan portfolio at december 31 , 2015 . demand loans , loans having no stated repayment schedule or maturity and overdraft loans are reported as being due in one year or less .
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1,018 | management believes the most complex and sensitive judgments , because of their significance to the consolidated financial statements , result primarily from the need to make estimates about the effects of matters that are inherently uncertain . management bases its estimates on historical experience , current market and economic conditions and other assumptions that management believes are reasonable . the results of these estimates form the basis for judgments about the carrying value of assets and liabilities where the values are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . there have been no significant changes from the methodology applied by management for critical accounting estimates previously disclosed in our annual report on form 10-k for the fiscal year ended december 31 , 2016 . for goodwill , we perform an impairment assessment at the reporting unit level on an annual basis as of the end of our october month end or more frequently if circumstances warrant . in fiscal year 2017 when we performed our analysis , the fair value of each of our reporting units exceeded the respective carrying amount , and no goodwill impairments were recorded . the fair values utilized for our 2017 goodwill assessment exceeded the carrying amounts by more than 20 % for our energy , aerospace , and power , process , & industrial reporting units , respectively . the growth rate assumptions utilized were consistent with growth rates within the markets that we serve . if our results significantly vary from our estimates , related projections , or business assumptions in the future due to change in industry or market conditions , we may be required to record impairment charges . 20 results of operations 2017 compared with 2016 consolidated operations replace_table_token_4_th net revenues in 2017 were $ 661.7 million , an increase of $ 71.5 million from 2016 primarily driven by our october 2016 acquisition of critical flow solutions ( `` cfs `` ) ( $ 43.1 million ) and december 2017 acquisition of fluid handling ( $ 36.5 million ) , partially offset by an operating decline in our energy segment ( as described in detail below ) . segment results the chief operating decision maker ( `` codm `` ) is the function that allocates the resources of the enterprise and assesses the performance of the company 's reportable operating segments . circor has determined that the codm is solely comprised of its ceo , as the ceo has the ultimate responsibility for circor strategic decision-making and resource allocation . our codm evaluates segment operating performance using segment operating income . segment operating income is defined as gaap operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to december 31 , 2011 , the impact of restructuring related inventory write-offs , impairment charges and special charges or gains . the company also refers to this measure as adjusted operating income . the company uses this measure because it helps management understand and evaluate the segments ' core operating results and facilitate comparison of performance for determining incentive compensation achievement . for information regarding our segment determination refer to note 17 , “ business segment and geographical information . `` 21 ( in thousands ) 2017 2016 change net revenues energy $ 347,578 $ 322,046 $ 25,532 advanced flow solutions 277,637 268,213 9,424 fluid handling 36,495 — 36,495 consolidated net revenues $ 661,710 $ 590,259 $ 71,451 operating income energy - segment operating income $ 30,748 $ 34,619 $ ( 3,871 ) afs - segment operating income 37,230 33,463 3,767 fluid handling - segment operating income 5,460 — 5,460 corporate expenses ( 21,744 ) ( 25,672 ) 3,928 subtotal 51,694 42,410 9,284 restructuring charges , net 7,989 8,975 ( 986 ) special charges , net 6,063 8,196 ( 2,133 ) special and restructuring charges , net ( 1 ) 14,052 17,171 ( 3,119 ) restructuring related inventory charges ( 1 ) — 2,846 ( 2,846 ) amortization of inventory step-up 4,300 1,366 2,934 impairment charges — 208 ( 208 ) acquisition amortization 12,542 9,901 2,641 acquisition depreciation 233 — 233 restructuring and other costs 17,075 14,321 2,754 consolidated operating income $ 20,567 $ 10,918 $ 9,649 consolidated operating margin 3.1 % 1.8 % ( 1 ) see note 4 `` special and restructuring charges , net `` of the consolidated financial statements , for additional details . energy segment replace_table_token_5_th energy segment net revenues increased $ 25.5 million , or 8 % , in 2017 compared to 2016 . the increase was primarily driven by our october 2016 acquisition of cfs ( +13 % ) and our north american short-cycle business ( +12 % ) , partially offset by declines in our large international projects business ( -20 % ) . segment operating income decreased $ 3.9 million , or 11 % , to $ 30.7 million for 2017 compared to $ 34.6 million in 2016 . the decrease in segment operating income was primarily due to the significant revenue decline in the large international projects business ( -58 % ) , partially offset by increased shipment volumes within our north american short-cycle business ( +28 % ) and our cfs business in the downstream refining market ( +24 % ) . energy segment orders increased $ 118.9 million , or 44 % , to $ 389.4 million for 2017 compared to $ 270.5 million in 2016 , primarily due to cfs ( +25 % ) , our north american short-cycle business ( +23 % ) due to improved demand and higher production activity in the u.s. shale plays , partially offset by lower orders in our large international projects business ( -4 % ) due to a significant reduction in capital expenditures for exploration and production by the major oil companies resulting in fewer projects . story_separator_special_tag these restructuring charges and other special charges are described in further detail in note 4 , `` special and restructuring charges , net `` , of the consolidated financial statements . in relation to our 2016 and 2015 acquisitions of cfs and schroedahl , respectively , we incurred $ 9.9 million of intangible asset amortization related to these acquisitions . this amortization is recorded within selling , general , and administrative expenses ( $ 9.3 million ) or cost of revenues ( $ 0.6 million ) depending upon the nature of the underlying intangible asset . in addition , we recorded $ 1.4 million of amortization expense related to the step-up in fair value of the inventory acquired as part of our cfs acquisition . this expense is included in cost of revenues . also during 2016 , we also recorded a $ 0.2 million impairment charge for a china patent deemed to no longer have economic value . the impairment charge is included in the impairment charge line on our consolidated statement of income ( loss ) . in 2015 , the company recorded $ 23.7 million of special and restructuring charges , net . in our statement of operations , these charges are recorded in costs of revenue ( $ 9.4 million ) and special and restructuring charges , net ( $ 14.4 million ) . these costs are primarily related to our simplification and restructuring efforts . the amount recorded in costs of revenues relates to inventory charges associated with the exit of non-strategic product lines . in addition , we incurred $ 3.2 million of brazil restatement charges . these restructuring charges and other special charges are described in further detail in note 4 , “ special and restructuring charges , net ” , of the consolidated financial statements . in relation to our schroedahl acquisition we recorded $ 6.8 million of intangible asset amortization during 2015. this amortization is recorded within selling , general , and administrative expenses . also during 2015 , we recorded $ 2.5 million of plant , property , and equipment and intangible impairments related to our brazil business . these impairment charges are included in the impairment charge line on our consolidated statement of operations . interest expense , net interest expense increased $ 0.5 million to $ 3.3 million for 2016. this change in interest expense was primarily due to higher outstanding debt balances during the period as a result of the cfs acquisition . other ( income ) expense , net other income , net , was $ 2.1 million for 2016 compared to other expense , net of ( $ 0.9 million ) in 2015. the difference of $ 3.0 million was primarily due to the impact of foreign currency fluctuations . comprehensive ( loss ) income comprehensive loss was reduced from a comprehensive loss of $ 22.2 million for the year-ended december 31 , 2015 to a comprehensive loss of $ 0.2 million for the year-ended december 31 , 2016 , primarily driven by an increase of $ 16.9 million in favorable foreign currency balance sheet remeasurements . these favorable foreign currency balance sheet remeasurements were driven by the brazilian real ( $ 9.9 million ) and euro ( $ 6.3 million ) . as of december 31 , 2016 , we had a cumulative currency translation adjustment of $ 17.3 million regarding our brazil entity . ( benefit from ) provision for income taxes the effective tax rate was -4 % for 2016 compared to 56 % for 2015. the primary drivers for the lower tax rate in 2016 included the tax benefit associated with the repatriation of foreign earnings which we completed in 2016 ( -27 % ) , reduced foreign losses in 2016 with no tax benefit ( -27 % ) , mix of lower taxed foreign earnings to u.s. earnings ( -18 % ) , and other items in 2016 including the prior year impact of a foreign audit settlement ( -14 % ) . this was partially offset by the establishment of a valuation allowance for certain state net operating loss carryforwards ( +26 % ) . 29 story_separator_special_tag liabilities was 2.0:1 at december 31 , 2017 compared to 3.1:1 at december 31 , 2016 . as of december 31 , 2017 , cash and cash equivalents totaled $ 110.4 million , of which $ 65.3 million is payable back to colfax . these cash and cash equivalent balances are substantially all held in foreign bank accounts . this compares to $ 58.3 million of cash and cash equivalents as of december 31 , 2016 substantially all of which was also held in foreign bank accounts . the cash and cash equivalents located at our foreign subsidiaries may not be repatriated to the united states or other jurisdictions without significant tax implications . on a provisional basis , the company does not expect to owe the one-time transition tax liability , based on foreign tax pools that are in excess of u.s. tax rates . we believe that our u.s. based subsidiaries , in the aggregate , will generate positive operating cash flows and in addition we may utilize our new credit agreement for u.s. based cash needs . in 2018 , we expect to generate positive cash flow from operating activities sufficient to support our capital expenditures and service our debt . based on our expected cash flows from operations and contractually available borrowings under our credit facility , we expect to have sufficient liquidity to fund working capital needs and future growth over at least the next twelve months from date of filing the 2017 financial statements . on february 28 , 2018 , we announced the suspension of our nominal dividend , as part of our capital deployment strategy . cash flow activities for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 during the year ended december 31 , 2016
| liquidity and capital resources our liquidity needs arise primarily from capital investment in machinery , equipment and the improvement of facilities , funding working capital requirements to support business growth initiatives , acquisitions , dividend payments , and debt service costs . we have historically generated cash from operations and remain in a strong financial position , with resources available for reinvestment in existing businesses , strategic acquisitions and managing our capital structure on a short and long-term basis . we completed the acquisition of fh on december 11 , 2017. the total consideration paid to acquire fh consisted of $ 542 million in cash , 3,283,424 unregistered shares of our common stock and the assumption of net pension and post-retirement liabilities of fh . we financed the cash consideration through a combination of committed debt financing and cash on hand . refer to note 3 , “ business acquisitions , ” of the consolidated financial statements for details . as a result of the transaction we incurred significant debt , including secured indebtedness , as described below . the following table summarizes our cash flow activities for the year-ended indicated ( in thousands ) : 2017 2016 2015 cash flow provided by ( used in ) : operating activities $ 9,637 $ 59,399 $ 27,142 investing activities ( 502,124 ) ( 210,481 ) ( 87,726 ) financing activities 535,568 158,764 2,251 effect of exchange rate changes on cash and cash equivalents 8,996 ( 3,944 ) ( 8,498 ) increase ( decrease ) in cash and cash equivalents ( 1 ) $ 52,077 $ 3,738 $ ( 66,831 ) ( 1 ) pursuant to the terms of the fh purchase agreement , $ 64.5 million of the cash balance as of december 31 , 2017 is due back to colfax corporation ( “ colfax ” ) , which has been reflected as a current liability within the balance sheet .
| 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. |
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 liquidity needs arise primarily from capital investment in machinery , equipment and the improvement of facilities , funding working capital requirements to support business growth initiatives , acquisitions , dividend payments , and debt service costs . we have historically generated cash from operations and remain in a strong financial position , with resources available for reinvestment in existing businesses , strategic acquisitions and managing our capital structure on a short and long-term basis . we completed the acquisition of fh on december 11 , 2017. the total consideration paid to acquire fh consisted of $ 542 million in cash , 3,283,424 unregistered shares of our common stock and the assumption of net pension and post-retirement liabilities of fh . we financed the cash consideration through a combination of committed debt financing and cash on hand . refer to note 3 , “ business acquisitions , ” of the consolidated financial statements for details . as a result of the transaction we incurred significant debt , including secured indebtedness , as described below . the following table summarizes our cash flow activities for the year-ended indicated ( in thousands ) : 2017 2016 2015 cash flow provided by ( used in ) : operating activities $ 9,637 $ 59,399 $ 27,142 investing activities ( 502,124 ) ( 210,481 ) ( 87,726 ) financing activities 535,568 158,764 2,251 effect of exchange rate changes on cash and cash equivalents 8,996 ( 3,944 ) ( 8,498 ) increase ( decrease ) in cash and cash equivalents ( 1 ) $ 52,077 $ 3,738 $ ( 66,831 ) ( 1 ) pursuant to the terms of the fh purchase agreement , $ 64.5 million of the cash balance as of december 31 , 2017 is due back to colfax corporation ( “ colfax ” ) , which has been reflected as a current liability within the balance sheet .
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Suspicious Activity Report : management believes the most complex and sensitive judgments , because of their significance to the consolidated financial statements , result primarily from the need to make estimates about the effects of matters that are inherently uncertain . management bases its estimates on historical experience , current market and economic conditions and other assumptions that management believes are reasonable . the results of these estimates form the basis for judgments about the carrying value of assets and liabilities where the values are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . there have been no significant changes from the methodology applied by management for critical accounting estimates previously disclosed in our annual report on form 10-k for the fiscal year ended december 31 , 2016 . for goodwill , we perform an impairment assessment at the reporting unit level on an annual basis as of the end of our october month end or more frequently if circumstances warrant . in fiscal year 2017 when we performed our analysis , the fair value of each of our reporting units exceeded the respective carrying amount , and no goodwill impairments were recorded . the fair values utilized for our 2017 goodwill assessment exceeded the carrying amounts by more than 20 % for our energy , aerospace , and power , process , & industrial reporting units , respectively . the growth rate assumptions utilized were consistent with growth rates within the markets that we serve . if our results significantly vary from our estimates , related projections , or business assumptions in the future due to change in industry or market conditions , we may be required to record impairment charges . 20 results of operations 2017 compared with 2016 consolidated operations replace_table_token_4_th net revenues in 2017 were $ 661.7 million , an increase of $ 71.5 million from 2016 primarily driven by our october 2016 acquisition of critical flow solutions ( `` cfs `` ) ( $ 43.1 million ) and december 2017 acquisition of fluid handling ( $ 36.5 million ) , partially offset by an operating decline in our energy segment ( as described in detail below ) . segment results the chief operating decision maker ( `` codm `` ) is the function that allocates the resources of the enterprise and assesses the performance of the company 's reportable operating segments . circor has determined that the codm is solely comprised of its ceo , as the ceo has the ultimate responsibility for circor strategic decision-making and resource allocation . our codm evaluates segment operating performance using segment operating income . segment operating income is defined as gaap operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to december 31 , 2011 , the impact of restructuring related inventory write-offs , impairment charges and special charges or gains . the company also refers to this measure as adjusted operating income . the company uses this measure because it helps management understand and evaluate the segments ' core operating results and facilitate comparison of performance for determining incentive compensation achievement . for information regarding our segment determination refer to note 17 , “ business segment and geographical information . `` 21 ( in thousands ) 2017 2016 change net revenues energy $ 347,578 $ 322,046 $ 25,532 advanced flow solutions 277,637 268,213 9,424 fluid handling 36,495 — 36,495 consolidated net revenues $ 661,710 $ 590,259 $ 71,451 operating income energy - segment operating income $ 30,748 $ 34,619 $ ( 3,871 ) afs - segment operating income 37,230 33,463 3,767 fluid handling - segment operating income 5,460 — 5,460 corporate expenses ( 21,744 ) ( 25,672 ) 3,928 subtotal 51,694 42,410 9,284 restructuring charges , net 7,989 8,975 ( 986 ) special charges , net 6,063 8,196 ( 2,133 ) special and restructuring charges , net ( 1 ) 14,052 17,171 ( 3,119 ) restructuring related inventory charges ( 1 ) — 2,846 ( 2,846 ) amortization of inventory step-up 4,300 1,366 2,934 impairment charges — 208 ( 208 ) acquisition amortization 12,542 9,901 2,641 acquisition depreciation 233 — 233 restructuring and other costs 17,075 14,321 2,754 consolidated operating income $ 20,567 $ 10,918 $ 9,649 consolidated operating margin 3.1 % 1.8 % ( 1 ) see note 4 `` special and restructuring charges , net `` of the consolidated financial statements , for additional details . energy segment replace_table_token_5_th energy segment net revenues increased $ 25.5 million , or 8 % , in 2017 compared to 2016 . the increase was primarily driven by our october 2016 acquisition of cfs ( +13 % ) and our north american short-cycle business ( +12 % ) , partially offset by declines in our large international projects business ( -20 % ) . segment operating income decreased $ 3.9 million , or 11 % , to $ 30.7 million for 2017 compared to $ 34.6 million in 2016 . the decrease in segment operating income was primarily due to the significant revenue decline in the large international projects business ( -58 % ) , partially offset by increased shipment volumes within our north american short-cycle business ( +28 % ) and our cfs business in the downstream refining market ( +24 % ) . energy segment orders increased $ 118.9 million , or 44 % , to $ 389.4 million for 2017 compared to $ 270.5 million in 2016 , primarily due to cfs ( +25 % ) , our north american short-cycle business ( +23 % ) due to improved demand and higher production activity in the u.s. shale plays , partially offset by lower orders in our large international projects business ( -4 % ) due to a significant reduction in capital expenditures for exploration and production by the major oil companies resulting in fewer projects . story_separator_special_tag these restructuring charges and other special charges are described in further detail in note 4 , `` special and restructuring charges , net `` , of the consolidated financial statements . in relation to our 2016 and 2015 acquisitions of cfs and schroedahl , respectively , we incurred $ 9.9 million of intangible asset amortization related to these acquisitions . this amortization is recorded within selling , general , and administrative expenses ( $ 9.3 million ) or cost of revenues ( $ 0.6 million ) depending upon the nature of the underlying intangible asset . in addition , we recorded $ 1.4 million of amortization expense related to the step-up in fair value of the inventory acquired as part of our cfs acquisition . this expense is included in cost of revenues . also during 2016 , we also recorded a $ 0.2 million impairment charge for a china patent deemed to no longer have economic value . the impairment charge is included in the impairment charge line on our consolidated statement of income ( loss ) . in 2015 , the company recorded $ 23.7 million of special and restructuring charges , net . in our statement of operations , these charges are recorded in costs of revenue ( $ 9.4 million ) and special and restructuring charges , net ( $ 14.4 million ) . these costs are primarily related to our simplification and restructuring efforts . the amount recorded in costs of revenues relates to inventory charges associated with the exit of non-strategic product lines . in addition , we incurred $ 3.2 million of brazil restatement charges . these restructuring charges and other special charges are described in further detail in note 4 , “ special and restructuring charges , net ” , of the consolidated financial statements . in relation to our schroedahl acquisition we recorded $ 6.8 million of intangible asset amortization during 2015. this amortization is recorded within selling , general , and administrative expenses . also during 2015 , we recorded $ 2.5 million of plant , property , and equipment and intangible impairments related to our brazil business . these impairment charges are included in the impairment charge line on our consolidated statement of operations . interest expense , net interest expense increased $ 0.5 million to $ 3.3 million for 2016. this change in interest expense was primarily due to higher outstanding debt balances during the period as a result of the cfs acquisition . other ( income ) expense , net other income , net , was $ 2.1 million for 2016 compared to other expense , net of ( $ 0.9 million ) in 2015. the difference of $ 3.0 million was primarily due to the impact of foreign currency fluctuations . comprehensive ( loss ) income comprehensive loss was reduced from a comprehensive loss of $ 22.2 million for the year-ended december 31 , 2015 to a comprehensive loss of $ 0.2 million for the year-ended december 31 , 2016 , primarily driven by an increase of $ 16.9 million in favorable foreign currency balance sheet remeasurements . these favorable foreign currency balance sheet remeasurements were driven by the brazilian real ( $ 9.9 million ) and euro ( $ 6.3 million ) . as of december 31 , 2016 , we had a cumulative currency translation adjustment of $ 17.3 million regarding our brazil entity . ( benefit from ) provision for income taxes the effective tax rate was -4 % for 2016 compared to 56 % for 2015. the primary drivers for the lower tax rate in 2016 included the tax benefit associated with the repatriation of foreign earnings which we completed in 2016 ( -27 % ) , reduced foreign losses in 2016 with no tax benefit ( -27 % ) , mix of lower taxed foreign earnings to u.s. earnings ( -18 % ) , and other items in 2016 including the prior year impact of a foreign audit settlement ( -14 % ) . this was partially offset by the establishment of a valuation allowance for certain state net operating loss carryforwards ( +26 % ) . 29 story_separator_special_tag liabilities was 2.0:1 at december 31 , 2017 compared to 3.1:1 at december 31 , 2016 . as of december 31 , 2017 , cash and cash equivalents totaled $ 110.4 million , of which $ 65.3 million is payable back to colfax . these cash and cash equivalent balances are substantially all held in foreign bank accounts . this compares to $ 58.3 million of cash and cash equivalents as of december 31 , 2016 substantially all of which was also held in foreign bank accounts . the cash and cash equivalents located at our foreign subsidiaries may not be repatriated to the united states or other jurisdictions without significant tax implications . on a provisional basis , the company does not expect to owe the one-time transition tax liability , based on foreign tax pools that are in excess of u.s. tax rates . we believe that our u.s. based subsidiaries , in the aggregate , will generate positive operating cash flows and in addition we may utilize our new credit agreement for u.s. based cash needs . in 2018 , we expect to generate positive cash flow from operating activities sufficient to support our capital expenditures and service our debt . based on our expected cash flows from operations and contractually available borrowings under our credit facility , we expect to have sufficient liquidity to fund working capital needs and future growth over at least the next twelve months from date of filing the 2017 financial statements . on february 28 , 2018 , we announced the suspension of our nominal dividend , as part of our capital deployment strategy . cash flow activities for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 during the year ended december 31 , 2016
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1,019 | additional information regarding the company 's acquisition activity as it relates to potential revenue growth is provided in item 7 “ management 's discussion and analysis of financial condition and results of operations ” under “ certain factors affecting our business . ” amounts reported in millions herein are computed based on the amounts in thousands . as a result , the sum of the components , and related calculations , reported in millions may not equal the total amounts due to rounding . executive summary the company 's objective is to create shareholder value by building , growing and acquiring market-leading partner firms that deliver innovative , value-added marketing , activation , communications and strategic consulting to their clients . management believes that shareholder value is maximized with an operating philosophy of “ perpetual partnership ” with proven committed industry leaders in marketing communications . mdc manages its business by monitoring several financial and non-financial performance indicators . the key indicators that we focus on are the areas of revenues and operating expenses and capital expenditures . revenue growth is analyzed by reviewing a mix of measurements , including ( i ) growth by major geographic location , ( ii ) existing growth by major discipline ( organic revenue growth ) , ( iii ) growth from currency changes and ( iv ) growth from acquisitions . in addition to monitoring the foregoing financial indicators , the company assesses and monitors several non-financial performance indicators relating to the business performance of our partner firms . these indicators may include a partner firm 's recent new client win/loss record ; the depth and scope of a pipeline of potential new client account activity ; the overall quality of the services provided to clients ; and the relative strength of the company 's next generation team that is in place as part of a potential succession plan to succeed the current senior executive team . 17 mdc conducts its businesses through its partner firm network , the advertising and communications group , providing value-added marketing , activation , and communications and strategic consulting services to clients throughout the world . as discussed in note 1 and note 14 of the notes to the consolidated financial statements included herein , during the third quarter of 2016 , the company reassessed its determination of operating segments and concluded that each partner firm represents an operating segment and aggregated partner firms that met the aggregation criteria into one reportable segment and combined and disclosed those partner firms that did not meet the aggregation criteria as an “ all other ” segment . in addition , mdc has a “ corporate group ” which provides client and business development support to the partner firms as well as certain strategic resources , including accounting , administrative , financial , real estate , human resource and legal functions . the partner firms earn revenue from agency arrangements in the form of retainer fees or commissions ; from short-term project arrangements in the form of fixed fees or per diem fees for services ; and from incentives or bonuses . additional information about revenue recognition appears in note 2 of the notes to the consolidated financial statements included herein . mdc measures operating expenses in two distinct cost categories : cost of services sold , and office and general expenses . cost of services sold is primarily comprised of employee compensation related costs and direct costs related primarily to providing services . office and general expenses are primarily comprised of rent and occupancy costs and administrative service costs including related employee compensation costs . also included in office and general expenses are the changes of the estimated value of our contingent purchase price obligations , including the accretion of present value and acquisition related costs . depreciation and amortization are also included in operating expenses . because we are a service business , we monitor these costs on a percentage of revenue basis . cost of services sold tend to fluctuate in conjunction with changes in revenues , whereas office and general expenses and depreciation and amortization , which are not directly related to servicing clients , tend to decrease as a percentage of revenue as revenues increase as a significant portion of these expenses are relatively fixed in nature . we measure capital expenditures as either maintenance or investment related . maintenance capital expenditures are primarily composed of general upkeep of our office facilities and equipment that are required to continue to operate our businesses . investment capital expenditures include expansion costs , the build out of new capabilities , technology , and other growth initiatives not related to the day to day upkeep of the existing operations . growth capital expenditures are measured and approved based on the expected return of the invested capital . certain factors affecting our business overall factors affecting our business and results of operations . the most significant factors include national , regional and local economic conditions , our clients ' profitability , mergers and acquisitions of our clients , changes in top management of our clients and our ability to retain and attract key employees . new business wins and client losses occur due to a variety of factors . the two most significant factors are ( i ) our clients ' desire to change marketing communication firms , and ( ii ) the creative product that our partner firms offer . a client may choose to change marketing communication firms for a number of reasons , such as a change in top management and the new management wants to retain an agency that it may have previously worked with . in addition , if the client is merged or acquired by another company , the marketing communication firm is often changed . further , global clients are trending to consolidate the use of numerous marketing communication firms to just one or two . story_separator_special_tag the decrease in deferred acquisition consideration expense was due to the aggregate under-performance of certain partner firms in 2016 as compared to forecasted expectations in comparison to 2015 aggregate out-performance as compared to forecasted expectations . this decrease was partially offset by expenses pertaining to an amendment to a purchase agreement of previously acquired incremental ownership interest entered into during 2016 , as well as increased estimated liability driven by the decrease in the company 's estimated future stock price , pertaining to an equity funded acquisition . stock-based compensation remained consistent as a percentage of revenue at approximately 1 % . depreciation and amortization expense also remained consistent as a percentage of revenue at approximately 3 % . all other revenue was $ 238.6 million for the year ended december 31 , 2016 , representing an increase of $ 14.0 million or 6.2 % , compared to revenue of $ 224.6 million for the year ended december 31 , 2015 . this increase related to revenue from acquisitions of $ 6.7 million or 3.0 % , as well as revenue growth of $ 10.8 million or 4.8 % excluding the effect of the acquisitions . these increases were partially offset by a decrease in foreign exchange of $ 3.0 million or 1.3 % , as well as disposition adjustment of $ 0.5 million or 0.2 % . 25 the change in expenses as a percentage of revenue in the all other segment for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_13_th the change in the categories of expenses as a percentage of revenue in the all other segment for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_14_th ( 1 ) excludes staff costs . ( 2 ) excludes stock-based compensation and is comprised of amounts reported in both cost of services and office and general expenses . operating profit for the all other segment for the year ended december 31 , 2016 was a loss of $ 21.8 million , compared to profit of $ 1.7 million for the year ended december 31 , 2015 . operating margins declined from 0.8 % in 2015 to a negative 9.1 % in 2016 . the decrease in operating profit and margin was largely due to the goodwill impairment charge of $ 48.5 million , partially offset by decreased deferred acquisition consideration expense . direct costs increased by $ 1.2 million , or 1.9 % , and as a percentage of revenue decreased from 28.0 % for the year ended december 31 , 2015 to 26.9 % for the year ended december 31 , 2016 . this decrease as a percentage of revenue was due to a decline in pass-through costs incurred on clients ' behalf from some of the company 's partner firms acting as principal verses agent . staff costs increased by $ 10.6 million , or 10.8 % , and as a percentage of revenue increased from 43.7 % for the year ended december 31 , 2015 to 45.6 % for the year ended december 31 , 2016 . the increase in staff costs was due to increased headcount driven by certain partner firms to support the growth of their businesses , as well as contributions from a 2015 acquisition . the increase in staff costs as a percentage of revenue , was due to increased levels of staffing at certain partner firms to support their growing businesses . administrative costs increased year over year and as a percentage of revenue primarily due to higher occupancy expenses and other general and administrative expenses . these increases were incurred to support the growth and expansion of certain partner firms . 26 deferred acquisition consideration was an expense of $ 0.8 million for the year ended december 31 , 2016 , compared to expense of $ 18.4 million for the year ended december 31 , 2015 . the decrease in deferred acquisition consideration expense was due to the 2015 aggregate out performance as compared to forecast expectations of certain partner firms that did not reoccur in 2016. stock-based compensation decreased slightly as a percentage of revenue . depreciation and amortization expense decreased by $ 6.9 million primarily due to lower amortization from intangibles related to prior year acquisitions . goodwill impairment of $ 48.5 million in the aggregate was comprised of a partial impairment of goodwill of $ 27.9 million relating to an experiential reporting unit , a partial impairment of goodwill of $ 18.9 million relating to a strategic communications reporting unit , and a partial impairment of goodwill of $ 1.7 million relating to a non-material reporting unit . refer to note 8 of the notes to the consolidated financial statements included herein for additional information . corporate group the change in operating expenses for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_15_th ( 1 ) excludes stock-based compensation . total operating expenses related to the corporate group 's operations decreased by $ 21.1 million to $ 44.1 million for the year ended december 31 , 2016 , compared to $ 65.2 million for the year ended december 31 , 2015 . staff costs decreased on a year-over-year basis by $ 14.6 million , or 34.4 % . the decrease was primarily related to a 2015 one-time charge of $ 5.8 million for the balance of prior cash bonus award amounts that were paid to the former chief executive officer ( “ ceo ” ) and chief accounting officer ( “ cao ” ) but will not be recovered pursuant to the repayment terms of the applicable separation agreements . in addition , there was lower executive compensation expense in 2016. administrative costs decreased by $ 6.1 million primarily due to 2016 reductions in the following categories : ( 1 ) legal fees related to the class-action litigation and sec investigation of $ 9.6 million , ( 2 ) advertising and
| total debt 6.50 % senior notes due 2024 on march 23 , 2016 , mdc entered into an indenture ( the “ indenture ” ) among mdc , its existing and future restricted subsidiaries that guarantee , or are co-borrowers under or grant liens to secure , the credit agreement , as guarantors ( the “ guarantors ” ) and the bank of new york mellon , as trustee , relating to the issuance by mdc of its $ 900 million aggregate principal amount of 6.50 % senior unsecured notes due 2024. the 6.50 % notes were sold in a private placement in reliance on exceptions from registration under the '33 act . the 6.50 % notes bear interest at a rate of 6.50 % per annum , accruing from march 23 , 2016. interest is payable semiannually in arrears on may 1 and november 1 of each year , beginning november 1 , 2016. the 6.50 % notes mature on may 1 , 2024 , unless earlier redeemed or repurchased . the company received net proceeds from the offering of the 6.50 % notes equal to 36 approximately $ 880,000. the company used the net proceeds to redeem all of its existing 6.75 % notes , together with accrued interest , related premiums , fees and expenses and recorded a charge for the loss on redemption of such notes of $ 33,298 , including write offs of unamortized original issue premium and debt issuance costs . remaining proceeds were used for general corporate purposes , including funding of deferred acquisition consideration . the 6.50 % notes are guaranteed on a senior unsecured basis by all of mdc 's existing and future restricted subsidiaries that guarantee , or are co-borrowers under or grant liens to secure , the credit agreement .
| 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. |
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.
```total debt 6.50 % senior notes due 2024 on march 23 , 2016 , mdc entered into an indenture ( the “ indenture ” ) among mdc , its existing and future restricted subsidiaries that guarantee , or are co-borrowers under or grant liens to secure , the credit agreement , as guarantors ( the “ guarantors ” ) and the bank of new york mellon , as trustee , relating to the issuance by mdc of its $ 900 million aggregate principal amount of 6.50 % senior unsecured notes due 2024. the 6.50 % notes were sold in a private placement in reliance on exceptions from registration under the '33 act . the 6.50 % notes bear interest at a rate of 6.50 % per annum , accruing from march 23 , 2016. interest is payable semiannually in arrears on may 1 and november 1 of each year , beginning november 1 , 2016. the 6.50 % notes mature on may 1 , 2024 , unless earlier redeemed or repurchased . the company received net proceeds from the offering of the 6.50 % notes equal to 36 approximately $ 880,000. the company used the net proceeds to redeem all of its existing 6.75 % notes , together with accrued interest , related premiums , fees and expenses and recorded a charge for the loss on redemption of such notes of $ 33,298 , including write offs of unamortized original issue premium and debt issuance costs . remaining proceeds were used for general corporate purposes , including funding of deferred acquisition consideration . the 6.50 % notes are guaranteed on a senior unsecured basis by all of mdc 's existing and future restricted subsidiaries that guarantee , or are co-borrowers under or grant liens to secure , the credit agreement .
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Suspicious Activity Report : additional information regarding the company 's acquisition activity as it relates to potential revenue growth is provided in item 7 “ management 's discussion and analysis of financial condition and results of operations ” under “ certain factors affecting our business . ” amounts reported in millions herein are computed based on the amounts in thousands . as a result , the sum of the components , and related calculations , reported in millions may not equal the total amounts due to rounding . executive summary the company 's objective is to create shareholder value by building , growing and acquiring market-leading partner firms that deliver innovative , value-added marketing , activation , communications and strategic consulting to their clients . management believes that shareholder value is maximized with an operating philosophy of “ perpetual partnership ” with proven committed industry leaders in marketing communications . mdc manages its business by monitoring several financial and non-financial performance indicators . the key indicators that we focus on are the areas of revenues and operating expenses and capital expenditures . revenue growth is analyzed by reviewing a mix of measurements , including ( i ) growth by major geographic location , ( ii ) existing growth by major discipline ( organic revenue growth ) , ( iii ) growth from currency changes and ( iv ) growth from acquisitions . in addition to monitoring the foregoing financial indicators , the company assesses and monitors several non-financial performance indicators relating to the business performance of our partner firms . these indicators may include a partner firm 's recent new client win/loss record ; the depth and scope of a pipeline of potential new client account activity ; the overall quality of the services provided to clients ; and the relative strength of the company 's next generation team that is in place as part of a potential succession plan to succeed the current senior executive team . 17 mdc conducts its businesses through its partner firm network , the advertising and communications group , providing value-added marketing , activation , and communications and strategic consulting services to clients throughout the world . as discussed in note 1 and note 14 of the notes to the consolidated financial statements included herein , during the third quarter of 2016 , the company reassessed its determination of operating segments and concluded that each partner firm represents an operating segment and aggregated partner firms that met the aggregation criteria into one reportable segment and combined and disclosed those partner firms that did not meet the aggregation criteria as an “ all other ” segment . in addition , mdc has a “ corporate group ” which provides client and business development support to the partner firms as well as certain strategic resources , including accounting , administrative , financial , real estate , human resource and legal functions . the partner firms earn revenue from agency arrangements in the form of retainer fees or commissions ; from short-term project arrangements in the form of fixed fees or per diem fees for services ; and from incentives or bonuses . additional information about revenue recognition appears in note 2 of the notes to the consolidated financial statements included herein . mdc measures operating expenses in two distinct cost categories : cost of services sold , and office and general expenses . cost of services sold is primarily comprised of employee compensation related costs and direct costs related primarily to providing services . office and general expenses are primarily comprised of rent and occupancy costs and administrative service costs including related employee compensation costs . also included in office and general expenses are the changes of the estimated value of our contingent purchase price obligations , including the accretion of present value and acquisition related costs . depreciation and amortization are also included in operating expenses . because we are a service business , we monitor these costs on a percentage of revenue basis . cost of services sold tend to fluctuate in conjunction with changes in revenues , whereas office and general expenses and depreciation and amortization , which are not directly related to servicing clients , tend to decrease as a percentage of revenue as revenues increase as a significant portion of these expenses are relatively fixed in nature . we measure capital expenditures as either maintenance or investment related . maintenance capital expenditures are primarily composed of general upkeep of our office facilities and equipment that are required to continue to operate our businesses . investment capital expenditures include expansion costs , the build out of new capabilities , technology , and other growth initiatives not related to the day to day upkeep of the existing operations . growth capital expenditures are measured and approved based on the expected return of the invested capital . certain factors affecting our business overall factors affecting our business and results of operations . the most significant factors include national , regional and local economic conditions , our clients ' profitability , mergers and acquisitions of our clients , changes in top management of our clients and our ability to retain and attract key employees . new business wins and client losses occur due to a variety of factors . the two most significant factors are ( i ) our clients ' desire to change marketing communication firms , and ( ii ) the creative product that our partner firms offer . a client may choose to change marketing communication firms for a number of reasons , such as a change in top management and the new management wants to retain an agency that it may have previously worked with . in addition , if the client is merged or acquired by another company , the marketing communication firm is often changed . further , global clients are trending to consolidate the use of numerous marketing communication firms to just one or two . story_separator_special_tag the decrease in deferred acquisition consideration expense was due to the aggregate under-performance of certain partner firms in 2016 as compared to forecasted expectations in comparison to 2015 aggregate out-performance as compared to forecasted expectations . this decrease was partially offset by expenses pertaining to an amendment to a purchase agreement of previously acquired incremental ownership interest entered into during 2016 , as well as increased estimated liability driven by the decrease in the company 's estimated future stock price , pertaining to an equity funded acquisition . stock-based compensation remained consistent as a percentage of revenue at approximately 1 % . depreciation and amortization expense also remained consistent as a percentage of revenue at approximately 3 % . all other revenue was $ 238.6 million for the year ended december 31 , 2016 , representing an increase of $ 14.0 million or 6.2 % , compared to revenue of $ 224.6 million for the year ended december 31 , 2015 . this increase related to revenue from acquisitions of $ 6.7 million or 3.0 % , as well as revenue growth of $ 10.8 million or 4.8 % excluding the effect of the acquisitions . these increases were partially offset by a decrease in foreign exchange of $ 3.0 million or 1.3 % , as well as disposition adjustment of $ 0.5 million or 0.2 % . 25 the change in expenses as a percentage of revenue in the all other segment for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_13_th the change in the categories of expenses as a percentage of revenue in the all other segment for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_14_th ( 1 ) excludes staff costs . ( 2 ) excludes stock-based compensation and is comprised of amounts reported in both cost of services and office and general expenses . operating profit for the all other segment for the year ended december 31 , 2016 was a loss of $ 21.8 million , compared to profit of $ 1.7 million for the year ended december 31 , 2015 . operating margins declined from 0.8 % in 2015 to a negative 9.1 % in 2016 . the decrease in operating profit and margin was largely due to the goodwill impairment charge of $ 48.5 million , partially offset by decreased deferred acquisition consideration expense . direct costs increased by $ 1.2 million , or 1.9 % , and as a percentage of revenue decreased from 28.0 % for the year ended december 31 , 2015 to 26.9 % for the year ended december 31 , 2016 . this decrease as a percentage of revenue was due to a decline in pass-through costs incurred on clients ' behalf from some of the company 's partner firms acting as principal verses agent . staff costs increased by $ 10.6 million , or 10.8 % , and as a percentage of revenue increased from 43.7 % for the year ended december 31 , 2015 to 45.6 % for the year ended december 31 , 2016 . the increase in staff costs was due to increased headcount driven by certain partner firms to support the growth of their businesses , as well as contributions from a 2015 acquisition . the increase in staff costs as a percentage of revenue , was due to increased levels of staffing at certain partner firms to support their growing businesses . administrative costs increased year over year and as a percentage of revenue primarily due to higher occupancy expenses and other general and administrative expenses . these increases were incurred to support the growth and expansion of certain partner firms . 26 deferred acquisition consideration was an expense of $ 0.8 million for the year ended december 31 , 2016 , compared to expense of $ 18.4 million for the year ended december 31 , 2015 . the decrease in deferred acquisition consideration expense was due to the 2015 aggregate out performance as compared to forecast expectations of certain partner firms that did not reoccur in 2016. stock-based compensation decreased slightly as a percentage of revenue . depreciation and amortization expense decreased by $ 6.9 million primarily due to lower amortization from intangibles related to prior year acquisitions . goodwill impairment of $ 48.5 million in the aggregate was comprised of a partial impairment of goodwill of $ 27.9 million relating to an experiential reporting unit , a partial impairment of goodwill of $ 18.9 million relating to a strategic communications reporting unit , and a partial impairment of goodwill of $ 1.7 million relating to a non-material reporting unit . refer to note 8 of the notes to the consolidated financial statements included herein for additional information . corporate group the change in operating expenses for the years ended december 31 , 2016 and 2015 was as follows : replace_table_token_15_th ( 1 ) excludes stock-based compensation . total operating expenses related to the corporate group 's operations decreased by $ 21.1 million to $ 44.1 million for the year ended december 31 , 2016 , compared to $ 65.2 million for the year ended december 31 , 2015 . staff costs decreased on a year-over-year basis by $ 14.6 million , or 34.4 % . the decrease was primarily related to a 2015 one-time charge of $ 5.8 million for the balance of prior cash bonus award amounts that were paid to the former chief executive officer ( “ ceo ” ) and chief accounting officer ( “ cao ” ) but will not be recovered pursuant to the repayment terms of the applicable separation agreements . in addition , there was lower executive compensation expense in 2016. administrative costs decreased by $ 6.1 million primarily due to 2016 reductions in the following categories : ( 1 ) legal fees related to the class-action litigation and sec investigation of $ 9.6 million , ( 2 ) advertising and
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1,020 | product sales to medium and heavy-duty truck markets accounted for 68 % , of the company 's sales for the years ended december 31 , 2017 , and 2016 , respectively , and 78 % for the year ended december 31 , 2015 . the demand for core molding technologies ' products is affected by economic conditions in the united states , mexico , and canada . core molding technologies ' manufacturing operations have a significant fixed cost component . accordingly , during periods of changing demand , the profitability of core molding technologies ' operations may change proportionately more than revenues from operations . in 1996 , core molding technologies acquired substantially all of the assets and assumed certain liabilities of columbus plastics , a wholly owned operating unit of navistar 's truck manufacturing division since its formation in late 1980. columbus plastics , located in columbus , ohio , was a compounder and compression molder of smc . in 1998 , core molding technologies began operations at its second facility in gaffney , south carolina , and in 2001 , core molding technologies added a production facility in matamoros , mexico by acquiring certain assets of airshield corporation . as a result of this acquisition , core molding technologies expanded its fiberglass molding capabilities to include the spray up , hand-lay-up open mold processes and rtm 24 closed molding . in 2004 , core molding technologies acquired substantially all the operating assets of keystone restyling products , inc. , a privately held manufacturer and distributor of fiberglass reinforced products for the automotive-aftermarket industry . in 2005 , core molding technologies acquired certain assets of the cincinnati fiberglass division of diversified glass , inc. , a batavia , ohio-based , privately held manufacturer and distributor of fiberglass reinforced plastic components supplied primarily to the heavy-duty truck market . in 2009 , the company completed construction of a new production facility in matamoros , mexico that replaced its leased facility . in march 2015 , the company acquired substantially all of the assets of cpi binani , inc. , a wholly owned subsidiary of binani industries limited , located in winona , minnesota ( `` cpi `` ) , which expanded the company 's process capabilities to include d-lft and diversified the customer base . in january 2018 , the company acquired substantially all the assets of horizon plastics , which has manufacturing operations in colburg , ontario and escobedo , mexico . this acquisition expanded the company 's customer base , geographic footprint , and process capabilities to include structural foam and structural web molding . core molding technologies recorded net income in 2017 of $ 5,459,000 , or $ 0.71 per basic and $ 0.70 per diluted share , compared with net income of $ 7,411,000 , or $ 0.97 per basic and diluted share in 2016 . product sales in 2017 increased 1 % from 2016 , primarily from increased demand from the company 's heavy duty truck and marine market customers , partially offset by decreased demand from automotive customers . as discussed above in part i , item 1 , “ business , ” on january 16 , 2018 the company acquired substantially all of the assets and assumed certain specified liabilities of horizon plastics , in exchange for approximately $ 63,000,000 in cash , subject to a working capital closing adjustment . horizon plastics is a custom low-pressure structural plastic molder , which utilizes both structural foam and structural web process technologies , with approximately 250 employees operating within two manufacturing facilities located in cobourg , canada and escobedo , mexico . horizon plastics had annual sales for its fiscal year ended august 31 , 2017 of approximately $ 60 million . the company expects the transaction to be approximately $ 0.15 to $ 0.20 accretive to earnings per share for calendar year 2018. the acquisition was funded through a combination of available cash on hand and borrowings under an amended and restated credit agreement entered into with keybank national association , as further described below under “ liquidity and capital resources . ” the integration process for horizon plastics is underway and management expects integration of business and financial systems to continue throughout 2018. looking forward , the company anticipates that 2018 product sales levels will increase as compared to 2017 , due to higher demand from heavy duty truck customers and additional sales from the acquisition of horizon plastics . heavy duty truck customers as well as industry analysts are forecasting increases in class 8 truck sales of 6 % to 25 % in 2018 compared to 2017 . results of operations 2017 compared with 2016 net sales for 2017 totaled $ 161,673,000 , which was a decrease from the $ 174,882,000 reported for 2016 . included in total sales were tooling project sales of $ 13,050,000 for 2017 and $ 28,258,000 for 2016 . tooling project sales result primarily from customer approval and acceptance of molds and assembly equipment specific to their products as well as other non-production services . these sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis . total product sales for 2017 , excluding tooling project sales , totaled $ 148,623,000 , representing a 1 % increase from the $ 146,624,000 reported for 2016 . in 2017 , product sales were positively impacted by a change in demand from customers in the heavy truck and marine markets , partially offset by a change in demand from customers in the automotive market . sales to navistar in 2017 totaled $ 39,768,000 , compared to $ 41,750,000 reported for 2016 . included in total sales are tooling sales of $ 159,000 and $ 1,994,000 for 2017 and 2016 , respectively . product sales to navistar decreased slightly in 2017 as compared to 2016 , primarily due to a change in demand , partially offset by new business awards . story_separator_special_tag the company evaluates whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest . there was no impairment of the company 's long-lived assets for the years ended december 31 , 2017 , 2016 and 2015 . goodwill the company has recorded $ 2,403,000 of goodwill as a result of two acquisitions . in 2001 , the company acquired certain assets of airshield corporation , and as a result , recorded goodwill in the amount of $ 1,097,000 . the company also acquired substantially all of the assets of cpi on march 20 , 2015 , which resulted in approximately $ 1,306,000 of goodwill . the company evaluates goodwill annually on december 31 st to determine whether impairment exists , or at interim periods if an indicator of possible impairment exists . the company evaluates goodwill for impairment utilizing the qualitative assessment . we consider relevant events and circumstances that affect the fair value or carrying amount of the company . such events and circumstances could include macroeconomic conditions , industry and market conditions , cost factors , overall financial performance , entity specific events and capital markets pricing . the company places more weight on the events and circumstances that most affect the company 's fair value or carrying amount . these factors are all considered by management in reaching its conclusion about whether to perform the first step of the impairment test . if the company 's fair value is determined to be more likely than not impaired based on the qualitative approach , a quantitative valuation to estimate the fair value of the company is performed . fair value measurements are based on a projected discounted cash flow valuation model , in accordance with asc 350 , “ intangibles-goodwill and other . ” there was no impairment of the company 's goodwill for the years ended december 31 , 2017 , 2016 and 2015 . self-insurance the company is self-insured with respect to its columbus and batavia , ohio , gaffney , south carolina , winona , minnesota and brownsville , texas medical , dental and vision claims and columbus and batavia , ohio workers ' compensation claims , all of which are subject to stop-loss insurance thresholds . the company has recorded an estimated liability for self-insured medical and dental claims incurred but not reported and worker 's compensation claims incurred but not reported at december 31 , 2017 and 2016 of $ 862,000 and $ 1,139,000 , respectively . 30 post retirement benefits management records an accrual for post retirement costs associated with the health care plan sponsored by the company for certain employees . should actual results differ from the assumptions used to determine the reserves , additional provisions may be required . in particular , increases in future healthcare costs above the assumptions could have an adverse effect on the company 's operations . the effect of a change in healthcare costs is described in note 12 of the notes to consolidated financial statements . the company had a liability for post retirement healthcare benefits based on actuarially computed estimates of $ 9,050,000 at december 31 , 2017 and $ 8,667,000 at december 31 , 2016 . revenue recognition revenue from product sales is recognized at the time products are shipped and title transfers . allowances for returned products and other credits are estimated and recorded as revenue is recognized . tooling revenue is recognized when the customer approves the tool and accepts ownership . progress billings and expenses are shown net as an asset or liability on the company 's consolidated balance sheet . tooling in progress can fluctuate significantly from period to period and is dependent upon the stage of tooling projects and the related billing and expense payment timetable for individual projects and therefore does not necessarily reflect projected income or loss from tooling projects . at december 31 , 2017 , the company had a net asset related to tooling in progress of $ 1,917,000 , which represents approximately $ 8,724,000 of progress tooling billings and $ 10,641,000 of progress tooling expenses . at december 31 , 2016 the company had a net liability related to tooling in progress of $ 1,084,000 , which represents approximately $ 11,052,000 of progress tooling billings and $ 9,968,000 of progress tooling expenses . income taxes management assesses the need for a valuation allowance to reduce its deferred tax assets to the amount that it believes is more likely than not to be realized . the company has considered future taxable income in assessing the need for a valuation allowance and has not recorded a valuation allowance due to anticipating it being more likely than not that the company will realize these benefits . an analysis is performed to determine the amount of the deferred tax asset that will be realized . such analysis is based upon the premise that deferred tax benefits will be realized through the generation of future taxable income . management reviews all available evidence , both positive and negative , to assess the long-term earnings potential of the company using a number of alternatives to evaluate financial results in economic cycles at various industry volume conditions . other factors considered are the company 's relationships with its major customers , and any recent customer diversification efforts . the projected availability of taxable income to realize the tax benefits from the reversal of temporary differences before expiration of these benefits are also considered . management believes that , with the combination of available tax planning strategies and the maintenance of its relationships with its key customers , earnings are achievable in order to realize the net deferred tax asset . management recognizes the financial statement effects of a tax position when it is more likely than not the position will be sustained upon examination . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb
| liquidity and capital resources the company 's primary sources of funds have been cash generated from operating activities and borrowings from third parties . primary cash requirements are for operating expenses , capital expenditures and acquisitions . on december 9 , 2008 , the company and its wholly owned subsidiary , corecomposites de mexico , s. de r.l . de c.v. , entered into a credit agreement , as amended from time to time ( the `` credit agreement '' ) , with a lender to provide various financing facilities . under this credit agreement , as amended from time to time , the company received certain loans , subject to the terms and conditions stated in the agreement , which included ( 1 ) a $ 12,000,000 capex loan ; ( 2 ) an $ 18,000,000 variable rate revolving line of credit ; ( 3 ) a term loan in an original amount of $ 15,500,000 ; and ( 4 ) a letter of credit commitment of up to $ 250,000 , of which $ 175,000 has been issued . the credit agreement is secured by a guarantee of each u.s. subsidiary of the company , and by a lien on substantially all of the present and future assets of the company and its u.s. subsidiaries , except that only 65 % of the stock issued by corecomposites de mexico , s. de r.l . de c.v. has been pledged . on august 4 , 2017 , the company and its wholly owned subsidiary , corecomposites de mexico , s. de r.l .
| 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. |
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 's primary sources of funds have been cash generated from operating activities and borrowings from third parties . primary cash requirements are for operating expenses , capital expenditures and acquisitions . on december 9 , 2008 , the company and its wholly owned subsidiary , corecomposites de mexico , s. de r.l . de c.v. , entered into a credit agreement , as amended from time to time ( the `` credit agreement '' ) , with a lender to provide various financing facilities . under this credit agreement , as amended from time to time , the company received certain loans , subject to the terms and conditions stated in the agreement , which included ( 1 ) a $ 12,000,000 capex loan ; ( 2 ) an $ 18,000,000 variable rate revolving line of credit ; ( 3 ) a term loan in an original amount of $ 15,500,000 ; and ( 4 ) a letter of credit commitment of up to $ 250,000 , of which $ 175,000 has been issued . the credit agreement is secured by a guarantee of each u.s. subsidiary of the company , and by a lien on substantially all of the present and future assets of the company and its u.s. subsidiaries , except that only 65 % of the stock issued by corecomposites de mexico , s. de r.l . de c.v. has been pledged . on august 4 , 2017 , the company and its wholly owned subsidiary , corecomposites de mexico , s. de r.l .
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Suspicious Activity Report : product sales to medium and heavy-duty truck markets accounted for 68 % , of the company 's sales for the years ended december 31 , 2017 , and 2016 , respectively , and 78 % for the year ended december 31 , 2015 . the demand for core molding technologies ' products is affected by economic conditions in the united states , mexico , and canada . core molding technologies ' manufacturing operations have a significant fixed cost component . accordingly , during periods of changing demand , the profitability of core molding technologies ' operations may change proportionately more than revenues from operations . in 1996 , core molding technologies acquired substantially all of the assets and assumed certain liabilities of columbus plastics , a wholly owned operating unit of navistar 's truck manufacturing division since its formation in late 1980. columbus plastics , located in columbus , ohio , was a compounder and compression molder of smc . in 1998 , core molding technologies began operations at its second facility in gaffney , south carolina , and in 2001 , core molding technologies added a production facility in matamoros , mexico by acquiring certain assets of airshield corporation . as a result of this acquisition , core molding technologies expanded its fiberglass molding capabilities to include the spray up , hand-lay-up open mold processes and rtm 24 closed molding . in 2004 , core molding technologies acquired substantially all the operating assets of keystone restyling products , inc. , a privately held manufacturer and distributor of fiberglass reinforced products for the automotive-aftermarket industry . in 2005 , core molding technologies acquired certain assets of the cincinnati fiberglass division of diversified glass , inc. , a batavia , ohio-based , privately held manufacturer and distributor of fiberglass reinforced plastic components supplied primarily to the heavy-duty truck market . in 2009 , the company completed construction of a new production facility in matamoros , mexico that replaced its leased facility . in march 2015 , the company acquired substantially all of the assets of cpi binani , inc. , a wholly owned subsidiary of binani industries limited , located in winona , minnesota ( `` cpi `` ) , which expanded the company 's process capabilities to include d-lft and diversified the customer base . in january 2018 , the company acquired substantially all the assets of horizon plastics , which has manufacturing operations in colburg , ontario and escobedo , mexico . this acquisition expanded the company 's customer base , geographic footprint , and process capabilities to include structural foam and structural web molding . core molding technologies recorded net income in 2017 of $ 5,459,000 , or $ 0.71 per basic and $ 0.70 per diluted share , compared with net income of $ 7,411,000 , or $ 0.97 per basic and diluted share in 2016 . product sales in 2017 increased 1 % from 2016 , primarily from increased demand from the company 's heavy duty truck and marine market customers , partially offset by decreased demand from automotive customers . as discussed above in part i , item 1 , “ business , ” on january 16 , 2018 the company acquired substantially all of the assets and assumed certain specified liabilities of horizon plastics , in exchange for approximately $ 63,000,000 in cash , subject to a working capital closing adjustment . horizon plastics is a custom low-pressure structural plastic molder , which utilizes both structural foam and structural web process technologies , with approximately 250 employees operating within two manufacturing facilities located in cobourg , canada and escobedo , mexico . horizon plastics had annual sales for its fiscal year ended august 31 , 2017 of approximately $ 60 million . the company expects the transaction to be approximately $ 0.15 to $ 0.20 accretive to earnings per share for calendar year 2018. the acquisition was funded through a combination of available cash on hand and borrowings under an amended and restated credit agreement entered into with keybank national association , as further described below under “ liquidity and capital resources . ” the integration process for horizon plastics is underway and management expects integration of business and financial systems to continue throughout 2018. looking forward , the company anticipates that 2018 product sales levels will increase as compared to 2017 , due to higher demand from heavy duty truck customers and additional sales from the acquisition of horizon plastics . heavy duty truck customers as well as industry analysts are forecasting increases in class 8 truck sales of 6 % to 25 % in 2018 compared to 2017 . results of operations 2017 compared with 2016 net sales for 2017 totaled $ 161,673,000 , which was a decrease from the $ 174,882,000 reported for 2016 . included in total sales were tooling project sales of $ 13,050,000 for 2017 and $ 28,258,000 for 2016 . tooling project sales result primarily from customer approval and acceptance of molds and assembly equipment specific to their products as well as other non-production services . these sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis . total product sales for 2017 , excluding tooling project sales , totaled $ 148,623,000 , representing a 1 % increase from the $ 146,624,000 reported for 2016 . in 2017 , product sales were positively impacted by a change in demand from customers in the heavy truck and marine markets , partially offset by a change in demand from customers in the automotive market . sales to navistar in 2017 totaled $ 39,768,000 , compared to $ 41,750,000 reported for 2016 . included in total sales are tooling sales of $ 159,000 and $ 1,994,000 for 2017 and 2016 , respectively . product sales to navistar decreased slightly in 2017 as compared to 2016 , primarily due to a change in demand , partially offset by new business awards . story_separator_special_tag the company evaluates whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest . there was no impairment of the company 's long-lived assets for the years ended december 31 , 2017 , 2016 and 2015 . goodwill the company has recorded $ 2,403,000 of goodwill as a result of two acquisitions . in 2001 , the company acquired certain assets of airshield corporation , and as a result , recorded goodwill in the amount of $ 1,097,000 . the company also acquired substantially all of the assets of cpi on march 20 , 2015 , which resulted in approximately $ 1,306,000 of goodwill . the company evaluates goodwill annually on december 31 st to determine whether impairment exists , or at interim periods if an indicator of possible impairment exists . the company evaluates goodwill for impairment utilizing the qualitative assessment . we consider relevant events and circumstances that affect the fair value or carrying amount of the company . such events and circumstances could include macroeconomic conditions , industry and market conditions , cost factors , overall financial performance , entity specific events and capital markets pricing . the company places more weight on the events and circumstances that most affect the company 's fair value or carrying amount . these factors are all considered by management in reaching its conclusion about whether to perform the first step of the impairment test . if the company 's fair value is determined to be more likely than not impaired based on the qualitative approach , a quantitative valuation to estimate the fair value of the company is performed . fair value measurements are based on a projected discounted cash flow valuation model , in accordance with asc 350 , “ intangibles-goodwill and other . ” there was no impairment of the company 's goodwill for the years ended december 31 , 2017 , 2016 and 2015 . self-insurance the company is self-insured with respect to its columbus and batavia , ohio , gaffney , south carolina , winona , minnesota and brownsville , texas medical , dental and vision claims and columbus and batavia , ohio workers ' compensation claims , all of which are subject to stop-loss insurance thresholds . the company has recorded an estimated liability for self-insured medical and dental claims incurred but not reported and worker 's compensation claims incurred but not reported at december 31 , 2017 and 2016 of $ 862,000 and $ 1,139,000 , respectively . 30 post retirement benefits management records an accrual for post retirement costs associated with the health care plan sponsored by the company for certain employees . should actual results differ from the assumptions used to determine the reserves , additional provisions may be required . in particular , increases in future healthcare costs above the assumptions could have an adverse effect on the company 's operations . the effect of a change in healthcare costs is described in note 12 of the notes to consolidated financial statements . the company had a liability for post retirement healthcare benefits based on actuarially computed estimates of $ 9,050,000 at december 31 , 2017 and $ 8,667,000 at december 31 , 2016 . revenue recognition revenue from product sales is recognized at the time products are shipped and title transfers . allowances for returned products and other credits are estimated and recorded as revenue is recognized . tooling revenue is recognized when the customer approves the tool and accepts ownership . progress billings and expenses are shown net as an asset or liability on the company 's consolidated balance sheet . tooling in progress can fluctuate significantly from period to period and is dependent upon the stage of tooling projects and the related billing and expense payment timetable for individual projects and therefore does not necessarily reflect projected income or loss from tooling projects . at december 31 , 2017 , the company had a net asset related to tooling in progress of $ 1,917,000 , which represents approximately $ 8,724,000 of progress tooling billings and $ 10,641,000 of progress tooling expenses . at december 31 , 2016 the company had a net liability related to tooling in progress of $ 1,084,000 , which represents approximately $ 11,052,000 of progress tooling billings and $ 9,968,000 of progress tooling expenses . income taxes management assesses the need for a valuation allowance to reduce its deferred tax assets to the amount that it believes is more likely than not to be realized . the company has considered future taxable income in assessing the need for a valuation allowance and has not recorded a valuation allowance due to anticipating it being more likely than not that the company will realize these benefits . an analysis is performed to determine the amount of the deferred tax asset that will be realized . such analysis is based upon the premise that deferred tax benefits will be realized through the generation of future taxable income . management reviews all available evidence , both positive and negative , to assess the long-term earnings potential of the company using a number of alternatives to evaluate financial results in economic cycles at various industry volume conditions . other factors considered are the company 's relationships with its major customers , and any recent customer diversification efforts . the projected availability of taxable income to realize the tax benefits from the reversal of temporary differences before expiration of these benefits are also considered . management believes that , with the combination of available tax planning strategies and the maintenance of its relationships with its key customers , earnings are achievable in order to realize the net deferred tax asset . management recognizes the financial statement effects of a tax position when it is more likely than not the position will be sustained upon examination . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb
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1,021 | our shares of common stock began trading on the nasdaq capital market on may 13 , 2015. as a result of the initial public offering , we received approximately $ 15.9 million in net proceeds , after deducting underwriting discounts and commissions of $ 1.2 million and offering expenses of $ 3.3 million , including a $ 0.4 million non-cash expense . 63 in september 2015 , we entered into a four year manufacture and supply agreement , or supply agreement , with a contract manufacturer in india for the manufacture and supply of active pharmaceutical ingredient , or api . for each calendar year , we and the manufacturer will agree to a minimum annual quantity that we will purchase . in october 2015 , we entered into a formulation development and manufacturing contract with a manufacturer , whereby the manufacturer will provide enteric-coated tablets to us for use in animals . the total amount committed to be paid by the company during 2015 and 2016 under this contract is estimated to be approximately $ 850,000. in december 2015 , we hired a new chief financial officer and entered into an employment agreement . in december 2015 , we entered into an amendment to our technology transfer and commercial manufacturing agreement with our contract manufacturer in italy delaying a 150,000 payment which was originally due on december 31 , 2015. this payment is now due on march 31 , 2016. in december 2015 , we met benchmarks which reduced our restricted cash balance by $ 1.5 million from $ 4.5 million to $ 3.0 million as required by hercules technology growth capital , inc. , or hercules technology , pursuant to the loan and security agreement dated august 18 , 2015 , between us , certain of our subsidiaries , the several banks and other financial institutions or entities from time to time party thereto as lenders and hercules technology . in december 2015 , we paid a license fee of $ 500,000 to napo pharmaceuticals pursuant to the amended and restated license agreement , dated august 6 , 2014 as amended , between napo and us . in february 2016 , we hired a chief veterinary officer and entered into an employment agreement . in february 2016 , we completed a follow-on registration offering of our common stock . in connection with the offering , we issued 2,000,000 shares of our common stock at a price to the public of $ 2.50 per share . as a result of the follow-on offering , we received $ 4.1 million in net proceeds , after deducting underwriting discounts and commissions of $ 373,000 and estimated offering expenses of $ 540,000. financial operations overview we were incorporated in june 2013 in delaware . napo formed our company to develop and commercialize animal health products . prior to our incorporation , the only activities of napo related to animal health were limited to the retention of consultants to evaluate potential strategic alternatives . we were previously a majority-owned subsidiary of napo . however , following the closing of our may 2015 initial public offering , we are no longer majority-owned by napo . we have not generated any material revenue to date and expect to continue to incur significant research and development and other expenses . our net loss attributable to common stockholders was $ 16.6 million and $ 9.3 million for the years ended december 31 , 2015 and 2014. as of december 31 , 2015 , we had total stockholders ' equity of $ 4.4 million and cash and cash equivalents of $ 7.7 million . we expect to continue to incur losses for the foreseeable future as we expand our product development activities , seek necessary approvals for our product candidates , conduct species-specific formulation studies for our non-prescription products , establish api manufacturing capabilities and begin commercialization activities . as a result , we expect to experience increased expenditures for 2016. revenue we sell our primary commercial product neonorm to distributors under agreements that may provide distributor price adjustments and rights of return under certain circumstances . until we have sufficient sales history and pipeline visibility , we will defer revenue and costs of distributor sales until products are sold by the distributor to the distributor 's customers . revenue recognition depends on notification either 64 directly from the distributor that product has been sold to the distributor 's customer , when we have access to the data . we maintain system controls to verify that the reported distributor and third party data is accurate . deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments , if any , and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the company . accounts receivable from distributors will be recognized and included in deferred revenue when we ship product to the distributor . we relieve inventory and recognize revenue typically upon shipment by the distributor to their customer . while we did not have revenue in the year ended december 31 , 2014 , we did recognize $ 258,381 in revenue for the year ended december 31 , 2015. cost of revenue cost of revenue expenses consist of costs to manufacture , package and distribute neonorm that distributors have sold through to their customers . research and development expense research and development expenses consist primarily of clinical and contract manufacturing expense , personnel and related benefit expense , stock-based compensation expense , employee travel expense , reforestation expenses and expenses attributable to services received from napo under the service agreement . clinical and contract manufacturing expense consists primarily of costs to conduct stability , safety and efficacy studies , and manufacturing startup expenses at an outsourced api provider in italy . we typically use our employee and infrastructure resources across multiple development programs . story_separator_special_tag while we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances , actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates . for additional information relating to these and 72 other accounting policies , see note 2 to our audited financial statements , appearing elsewhere in this report . accrued research and development expenses as part of the process of preparing our financial statements , we are required to estimate accrued research and development expenses . estimated accrued expenses include fees paid to vendors and clinical sites in connection with our clinical trials and studies . we review new and open contracts and communicate with applicable internal and vendor personnel to identify services that have been performed on our behalf and estimate the level of service performed and the associated costs incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost for accrued expenses . the majority of our service providers invoice us monthly in arrears for services performed or as milestones are achieved in relation to our contract manufacturers . we make estimates of our accrued expenses as of each reporting date . we base our accrued expenses related to clinical trials and studies on our estimates of the services received and efforts expended pursuant to contracts with vendors , our internal resources , and payments to clinical sites based on enrollment projections . the financial terms of the vendor agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of animals and the completion of development milestones . we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the related expense accrual accordingly on a prospective basis . if we do not identify costs that have been incurred or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . to date , we have not made any material adjustments to our estimates of accrued research and development expenses or the level of services performed in any reporting period presented . accounting for stock-based compensation during 2013 , we did not issue any stock awards to employees , directors or consultants and did not incur any stock based compensation expense . beginning in the second quarter of 2014 , we awarded options and restricted stock units . we measure stock-based awards granted to employees and directors at fair value on the date of grant and recognize the corresponding compensation expense of the awards , net of estimated forfeitures , over the requisite service periods , which correspond to the vesting periods of the awards . key assumptions . our black-scholes-merton option-pricing model requires the input of highly subjective assumptions , including the fair value of the underlying common stock , the expected volatility of the price of our common stock , the expected term of the option , risk-free interest rates and the expected dividend yield of our common stock . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our stock-based compensation expense could be materially different in the future . these assumptions are estimated as follows : fair value of our common stockour common stock is valued by reference to the publicly-traded price of our common stock . expected volatilityas we do not have any trading history for our common stock , the expected stock price volatility for our common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations for common stock values over a period equivalent to the expected term of our stock option grants . we did not rely on implied volatilities of traded options in our industry peers ' common stock because the volume of activity was relatively low . we intend to continue to consistently apply this process using the same or similar public 73 companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available . expected termthe expected term represents the period that our stock-based awards are expected to be outstanding . it is based on the `` simplified method `` for developing the estimate of the expected life of a `` plain vanilla `` stock option . under this approach , the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term for each vesting tranche . we intend to continue to apply this process until a sufficient amount of historical exercise activity is available to be able to reliably estimate the expected term . risk-free interest ratethe risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected term of the options for each option group . dividend yieldwe have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . forfeitureswe estimate forfeitures at the time of grant and revise those estimates periodically in subsequent periods . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . common stock valuations . prior to our ipo , the fair value of the common stock underlying our stock options
| cash used in operating activities during the year ended december 31 , 2015 , cash used in operating activities resulted from our net loss of $ 16.3 million , offset by non-cash accretion of debt discounts of $ 2.5 million , non-cash revaluation of warrant liability of $ 502,000 and stock-based compensation of $ 992,000 , amortization of debt issuance costs of $ 130,000 , accretion of the balloon payment on the long-term debt of $ 116,000 , loss on the sale of property and equipment of $ 35,000 , depreciation expense of $ 5,000 , net of changes in operating assets and liabilities of $ 2.3 million . during the year ended december 31 , 2014 , cash used in operating activities resulted from our net loss of $ 8.6 million , offset by the non-cash expense of the write-off of certain materials received from napo pharmaceuticals , inc. of $ 1.1 million , warrants issued in connection with transfer agreement and line of credit of $ 152,000 , accretion of the debt discount of $ 177,000 , amortization of the debt issuance costs of $ 21,000 , and stock-based compensation of $ 164,000 , offset by of the revaluation of the warrant liability of $ 51,000 and by changes in operating assets and liabilities of $ 1.7 million . cash used in investing activities during the year ended december 31 , 2015 , cash used in investing activities primarily consisted of $ 3.0 million in restricted cash that resulted from our issuance of long-term debt , $ 23,000 from the purchase of property and equipment , net of $ 21,000 from the sale of property and equipment . during the year ended december 31 , 2014 , cash used in investing activities consisted of $ 55,000 from the purchase of property and equipment .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash used in operating activities during the year ended december 31 , 2015 , cash used in operating activities resulted from our net loss of $ 16.3 million , offset by non-cash accretion of debt discounts of $ 2.5 million , non-cash revaluation of warrant liability of $ 502,000 and stock-based compensation of $ 992,000 , amortization of debt issuance costs of $ 130,000 , accretion of the balloon payment on the long-term debt of $ 116,000 , loss on the sale of property and equipment of $ 35,000 , depreciation expense of $ 5,000 , net of changes in operating assets and liabilities of $ 2.3 million . during the year ended december 31 , 2014 , cash used in operating activities resulted from our net loss of $ 8.6 million , offset by the non-cash expense of the write-off of certain materials received from napo pharmaceuticals , inc. of $ 1.1 million , warrants issued in connection with transfer agreement and line of credit of $ 152,000 , accretion of the debt discount of $ 177,000 , amortization of the debt issuance costs of $ 21,000 , and stock-based compensation of $ 164,000 , offset by of the revaluation of the warrant liability of $ 51,000 and by changes in operating assets and liabilities of $ 1.7 million . cash used in investing activities during the year ended december 31 , 2015 , cash used in investing activities primarily consisted of $ 3.0 million in restricted cash that resulted from our issuance of long-term debt , $ 23,000 from the purchase of property and equipment , net of $ 21,000 from the sale of property and equipment . during the year ended december 31 , 2014 , cash used in investing activities consisted of $ 55,000 from the purchase of property and equipment .
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Suspicious Activity Report : our shares of common stock began trading on the nasdaq capital market on may 13 , 2015. as a result of the initial public offering , we received approximately $ 15.9 million in net proceeds , after deducting underwriting discounts and commissions of $ 1.2 million and offering expenses of $ 3.3 million , including a $ 0.4 million non-cash expense . 63 in september 2015 , we entered into a four year manufacture and supply agreement , or supply agreement , with a contract manufacturer in india for the manufacture and supply of active pharmaceutical ingredient , or api . for each calendar year , we and the manufacturer will agree to a minimum annual quantity that we will purchase . in october 2015 , we entered into a formulation development and manufacturing contract with a manufacturer , whereby the manufacturer will provide enteric-coated tablets to us for use in animals . the total amount committed to be paid by the company during 2015 and 2016 under this contract is estimated to be approximately $ 850,000. in december 2015 , we hired a new chief financial officer and entered into an employment agreement . in december 2015 , we entered into an amendment to our technology transfer and commercial manufacturing agreement with our contract manufacturer in italy delaying a 150,000 payment which was originally due on december 31 , 2015. this payment is now due on march 31 , 2016. in december 2015 , we met benchmarks which reduced our restricted cash balance by $ 1.5 million from $ 4.5 million to $ 3.0 million as required by hercules technology growth capital , inc. , or hercules technology , pursuant to the loan and security agreement dated august 18 , 2015 , between us , certain of our subsidiaries , the several banks and other financial institutions or entities from time to time party thereto as lenders and hercules technology . in december 2015 , we paid a license fee of $ 500,000 to napo pharmaceuticals pursuant to the amended and restated license agreement , dated august 6 , 2014 as amended , between napo and us . in february 2016 , we hired a chief veterinary officer and entered into an employment agreement . in february 2016 , we completed a follow-on registration offering of our common stock . in connection with the offering , we issued 2,000,000 shares of our common stock at a price to the public of $ 2.50 per share . as a result of the follow-on offering , we received $ 4.1 million in net proceeds , after deducting underwriting discounts and commissions of $ 373,000 and estimated offering expenses of $ 540,000. financial operations overview we were incorporated in june 2013 in delaware . napo formed our company to develop and commercialize animal health products . prior to our incorporation , the only activities of napo related to animal health were limited to the retention of consultants to evaluate potential strategic alternatives . we were previously a majority-owned subsidiary of napo . however , following the closing of our may 2015 initial public offering , we are no longer majority-owned by napo . we have not generated any material revenue to date and expect to continue to incur significant research and development and other expenses . our net loss attributable to common stockholders was $ 16.6 million and $ 9.3 million for the years ended december 31 , 2015 and 2014. as of december 31 , 2015 , we had total stockholders ' equity of $ 4.4 million and cash and cash equivalents of $ 7.7 million . we expect to continue to incur losses for the foreseeable future as we expand our product development activities , seek necessary approvals for our product candidates , conduct species-specific formulation studies for our non-prescription products , establish api manufacturing capabilities and begin commercialization activities . as a result , we expect to experience increased expenditures for 2016. revenue we sell our primary commercial product neonorm to distributors under agreements that may provide distributor price adjustments and rights of return under certain circumstances . until we have sufficient sales history and pipeline visibility , we will defer revenue and costs of distributor sales until products are sold by the distributor to the distributor 's customers . revenue recognition depends on notification either 64 directly from the distributor that product has been sold to the distributor 's customer , when we have access to the data . we maintain system controls to verify that the reported distributor and third party data is accurate . deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments , if any , and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the company . accounts receivable from distributors will be recognized and included in deferred revenue when we ship product to the distributor . we relieve inventory and recognize revenue typically upon shipment by the distributor to their customer . while we did not have revenue in the year ended december 31 , 2014 , we did recognize $ 258,381 in revenue for the year ended december 31 , 2015. cost of revenue cost of revenue expenses consist of costs to manufacture , package and distribute neonorm that distributors have sold through to their customers . research and development expense research and development expenses consist primarily of clinical and contract manufacturing expense , personnel and related benefit expense , stock-based compensation expense , employee travel expense , reforestation expenses and expenses attributable to services received from napo under the service agreement . clinical and contract manufacturing expense consists primarily of costs to conduct stability , safety and efficacy studies , and manufacturing startup expenses at an outsourced api provider in italy . we typically use our employee and infrastructure resources across multiple development programs . story_separator_special_tag while we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances , actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates . for additional information relating to these and 72 other accounting policies , see note 2 to our audited financial statements , appearing elsewhere in this report . accrued research and development expenses as part of the process of preparing our financial statements , we are required to estimate accrued research and development expenses . estimated accrued expenses include fees paid to vendors and clinical sites in connection with our clinical trials and studies . we review new and open contracts and communicate with applicable internal and vendor personnel to identify services that have been performed on our behalf and estimate the level of service performed and the associated costs incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost for accrued expenses . the majority of our service providers invoice us monthly in arrears for services performed or as milestones are achieved in relation to our contract manufacturers . we make estimates of our accrued expenses as of each reporting date . we base our accrued expenses related to clinical trials and studies on our estimates of the services received and efforts expended pursuant to contracts with vendors , our internal resources , and payments to clinical sites based on enrollment projections . the financial terms of the vendor agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of animals and the completion of development milestones . we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the related expense accrual accordingly on a prospective basis . if we do not identify costs that have been incurred or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . to date , we have not made any material adjustments to our estimates of accrued research and development expenses or the level of services performed in any reporting period presented . accounting for stock-based compensation during 2013 , we did not issue any stock awards to employees , directors or consultants and did not incur any stock based compensation expense . beginning in the second quarter of 2014 , we awarded options and restricted stock units . we measure stock-based awards granted to employees and directors at fair value on the date of grant and recognize the corresponding compensation expense of the awards , net of estimated forfeitures , over the requisite service periods , which correspond to the vesting periods of the awards . key assumptions . our black-scholes-merton option-pricing model requires the input of highly subjective assumptions , including the fair value of the underlying common stock , the expected volatility of the price of our common stock , the expected term of the option , risk-free interest rates and the expected dividend yield of our common stock . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our stock-based compensation expense could be materially different in the future . these assumptions are estimated as follows : fair value of our common stockour common stock is valued by reference to the publicly-traded price of our common stock . expected volatilityas we do not have any trading history for our common stock , the expected stock price volatility for our common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations for common stock values over a period equivalent to the expected term of our stock option grants . we did not rely on implied volatilities of traded options in our industry peers ' common stock because the volume of activity was relatively low . we intend to continue to consistently apply this process using the same or similar public 73 companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available . expected termthe expected term represents the period that our stock-based awards are expected to be outstanding . it is based on the `` simplified method `` for developing the estimate of the expected life of a `` plain vanilla `` stock option . under this approach , the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term for each vesting tranche . we intend to continue to apply this process until a sufficient amount of historical exercise activity is available to be able to reliably estimate the expected term . risk-free interest ratethe risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected term of the options for each option group . dividend yieldwe have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . forfeitureswe estimate forfeitures at the time of grant and revise those estimates periodically in subsequent periods . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . common stock valuations . prior to our ipo , the fair value of the common stock underlying our stock options
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1,022 | actinium 's objective , through research and development , is to produce reliable cancer fighting products which utilize monoclonal antibodies linked with alpha particle emitters or other appropriate payloads to provide very potent targeted therapies . the initial clinical trials of actinium 's compounds have been with patients having acute myeloid leukemia and it is believed that actinium 's apit platform will have wider applicability for different types of cancer where suitable monoclonal antibodies can be found . we were incorporated under the laws of the state of nevada on october 6 , 1997. we were a shell entity that was in the market for a merger with an appropriate operating company . on december 28 , 2012 , we entered into a transaction ( the “ share exchange ” ) , pursuant to which the company acquired 21 % of the issued and outstanding equity securities of actinium pharmaceuticals , inc. ( “ actinium ” ) , in exchange for the issuance of 4,333,489 shares of common stock , par value $ 0.001 per share , of the company ( the “ common stock ” ) , which were issued to the shareholders of actinium . as a result of the share exchange , the former shareholders of actinium became the controlling shareholders of the company . the share exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange , wherein actinium is considered the acquirer for accounting and financial reporting purposes . as a result of the share exchange , the company assumed the business and operations of actinium . on march 11 , 2013 , actinium corporation continued its share exchange with us , whereby we acquired an additional 36 % of the issued and outstanding capital stock of actinium corporation from the actinium corporation shareholders in exchange for the issuance of 7,756,840 shares of common stock of us to the actinium shareholders . 40 on april 11 , 2013 , the change of domicile from the state of nevada to the state of delaware and the change of cactus ventures , inc. 's name from cactus ventures , inc. to actinium pharmaceuticals , inc. became effective in accordance with articles of merger filed with the state of nevada and a certificate of merger filed with the state of delaware . in connection with the name change we also changed ( i ) the name of our subsidiary actinium pharmaceuticals , inc. to actinium corporation , ( ii ) our par value to $ 0.001 per share , and ( iii ) the number of authorized shares of preferred stock to 10 million shares . effective april 18 , 2013 our new trading symbol became atnm . on september 25 , 2013 , we merged with our subsidiary , actinium corporation , and we were the surviving entity of the merger . on august 22 , 2013 , actinium corporation continued its share exchange with us , whereby we acquired an additional 38.2 % of the issued and outstanding capital stock of actinium corporation from the actinium corporation shareholders in exchange for the issuance of 6,383,475 shares of common stock of us to the actinium shareholders . on september 25 , 2013 in accordance with a certificate of ownership merging actinium corporation into us , we merged with actinium corporation , and actinium corporation ceased to exist . as a result of the merger , actinium corporation stock owned by us has been cancelled and each share of actinium corporation not owned by us was exchanged for 0.333 shares of our common stock . on march 26 , 2014 , we began trading our common stock on the nyse mkt market . plan of operation we develop drugs for the treatment of cancer with the intent to cure or significantly improve survival of the affected patients . none of our drugs have been approved for sale in the united states or elsewhere . we have no commercial operations in sales or marketing of our products . all our product candidates are under development . in order to market and sell our products we must conduct clinical trials on patients and obtain regulatory approvals from appropriate regulatory agencies like the food and drug administration ( fda ) in the united states and similar agencies elsewhere in the world . our products under development are monoclonal antibodies labeled with radioisotopes . we have one program with an antibody labeled with a beta emitter and several programs based on a proprietary patent protected platform technology called apit . our apit technology is based on attaching actinium 225 ( ac-225 ) or bismuth 213 ( bi-213 ) alpha emitting radioisotopes to monoclonal antibodies . alpha emitting radioisotopes are unstable chemical elements that decay by releasing alpha particles . alpha particles can kill any cell in the immediate proximity of where they are released . monoclonal antibodies are genetically engineered proteins that specifically target certain cells , including cancer cells . it is crucial for the success of our drug candidates to contain monoclonal antibodies that can successfully seek cancer cells and can kill them with the attached isotope while not harming nearby normal cells . we do not have technology and operational capabilities to develop and manufacture such monoclonal antibodies and we therefore rely on collaboration with third parties to gain access to such monoclonal antibodies . we have secured rights to two monoclonal antibodies , hum195 ( lintuzumab ) , in 2003 through a collaborative licensing agreement with abbvie biotherapeutics corp and bc8 in 2012 with the fred hutchinson cancer research center ( “ fhcrc ” ) . story_separator_special_tag 44 story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; width : 100 % ; font-size : 10pt `` > 45 seasonality we do not have a seasonal business cycle . our operating results are generally derived evenly throughout the calendar year . critical accounting policies our financial statements have been prepared in accordance with accounting principles generally accepted in the united states . to prepare these financial statements , we must make estimates and assumptions that affect the reported amounts of assets and liabilities . these estimates also affect our expenses . judgments must also be made about the disclosure of contingent liabilities . actual results could be significantly different from these estimates . we believe that the following discussion addresses the accounting policies that are necessary to understand and evaluate our reported financial results . derivatives all derivatives are recorded at fair value and recorded on the balance sheet . fair values for securities traded in the open market and derivatives are based on quoted market prices . where market prices are not readily available , fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates . fair value of financial instruments fair value is defined as the price that would be received to sell an asset , or paid to transfer a liability , in an orderly transaction between market participants . a fair value hierarchy has been established for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs . the fair value hierarchy is as follows : ● level 1 inputs – unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date . ● level 2 inputs – inputs other than quoted prices included in level 1 that are observable for the asset or liability , either directly or indirectly . these might include quoted prices for similar assets or liabilities in active markets , quoted prices for identical or similar assets or liabilities in markets that are not active , inputs other than quoted prices that are observable for the asset or liability ( such as interest rates , volatilities , prepayment speeds , credit risks , etc . ) or inputs that are derived principally from or corroborated by market data by correlation or other means . ● level 3 inputs – unobservable inputs for determining the fair values of assets or liabilities that reflect an entity 's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities . income taxes the company uses the asset and liability method in accounting for income taxes . under this method , deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amounts of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized . a valuation allowance , if necessary , is provided against deferred tax assets , based upon management 's assessment as to their realization . research and development costs research and development costs are expensed as incurred . research and development reimbursements and grants are recorded by the company as a reduction of research and development costs . share-based payments we estimate the fair value of each stock option award at the grant date by using the black-scholes option pricing model and common shares based on the market price of the company 's common stock on the date of the share grant . the fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award . as share-based compensation expense is recognized based on awards ultimately expected to vest , we reduce the expense for estimated forfeitures based on historical forfeiture rates . previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period . excess tax benefits , if any , are recognized as an addition to paid-in capital . 46 recent accounting pronouncements in april 2015 , the fasb issued an accounting standards update that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the guidance is effective for annual and interim reporting periods beginning after december 15 , 2015 , but early adoption is permitted . the company adopted asu 2015-03 on the consolidated financial statements in 2015. the adoption of asu 2015-03 has no impact on the company 's consolidated financial statements . management does not believe that any other recently issued , but not yet effective accounting pronouncements , if adopted , would have a material effect on the accompanying consolidated financial statements . subsequent event on january 4 , 2016 , the company sold 40,656 shares of common stock for gross proceeds of $ 130,156 as part of the sales agreement with mlv . on january 22 , 2016 , 500 shares of restricted stock vested and the company issued 500 shares of common stock to an employee . on january 27 , 2016 , the company issued 114,169 shares of common stock for the conversion of 164,580 warrants . on february 16 , 2016 , the company entered into a service agreement with medpace , inc. to be its clinical research organization for the phase 3 trial of iomab - b. the total project is estimated to
| liquidity and capital resources we have financed our operations primarily through sales of the company 's stock . we did not have any cash or cash equivalents held in financial institutions located outside of the united states as of december 31 , 2015 and 2014. we do not anticipate this practice will change in the future . the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_9_th for the year ended december 31 , 2015 and 2014 net cash used in operating activities was approximately $ 18.5 million for the year ended december 31 , 2015 compared to approximately $ 14.3 million used in operations for the same period in 2014. cash used in operations increased due to the increase in spending related to the preparations for and eventual launch and conduct of a multicenter clinical trial and an increase in spending related to professional fees combined with an increase in payroll-related expenses . net cash used in investing activities was approximately $ 48,000 for the year ended december 31 , 2015 compared to approximately $ 0.2 million used in investing activities for the same period in 2014. cash used in investing activities decreased due to less purchase of computers and lab equipment during 2015 compared to the prior year .
| 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. |
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 we have financed our operations primarily through sales of the company 's stock . we did not have any cash or cash equivalents held in financial institutions located outside of the united states as of december 31 , 2015 and 2014. we do not anticipate this practice will change in the future . the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_9_th for the year ended december 31 , 2015 and 2014 net cash used in operating activities was approximately $ 18.5 million for the year ended december 31 , 2015 compared to approximately $ 14.3 million used in operations for the same period in 2014. cash used in operations increased due to the increase in spending related to the preparations for and eventual launch and conduct of a multicenter clinical trial and an increase in spending related to professional fees combined with an increase in payroll-related expenses . net cash used in investing activities was approximately $ 48,000 for the year ended december 31 , 2015 compared to approximately $ 0.2 million used in investing activities for the same period in 2014. cash used in investing activities decreased due to less purchase of computers and lab equipment during 2015 compared to the prior year .
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Suspicious Activity Report : actinium 's objective , through research and development , is to produce reliable cancer fighting products which utilize monoclonal antibodies linked with alpha particle emitters or other appropriate payloads to provide very potent targeted therapies . the initial clinical trials of actinium 's compounds have been with patients having acute myeloid leukemia and it is believed that actinium 's apit platform will have wider applicability for different types of cancer where suitable monoclonal antibodies can be found . we were incorporated under the laws of the state of nevada on october 6 , 1997. we were a shell entity that was in the market for a merger with an appropriate operating company . on december 28 , 2012 , we entered into a transaction ( the “ share exchange ” ) , pursuant to which the company acquired 21 % of the issued and outstanding equity securities of actinium pharmaceuticals , inc. ( “ actinium ” ) , in exchange for the issuance of 4,333,489 shares of common stock , par value $ 0.001 per share , of the company ( the “ common stock ” ) , which were issued to the shareholders of actinium . as a result of the share exchange , the former shareholders of actinium became the controlling shareholders of the company . the share exchange was accounted for as a reverse takeover/recapitalization effected by a share exchange , wherein actinium is considered the acquirer for accounting and financial reporting purposes . as a result of the share exchange , the company assumed the business and operations of actinium . on march 11 , 2013 , actinium corporation continued its share exchange with us , whereby we acquired an additional 36 % of the issued and outstanding capital stock of actinium corporation from the actinium corporation shareholders in exchange for the issuance of 7,756,840 shares of common stock of us to the actinium shareholders . 40 on april 11 , 2013 , the change of domicile from the state of nevada to the state of delaware and the change of cactus ventures , inc. 's name from cactus ventures , inc. to actinium pharmaceuticals , inc. became effective in accordance with articles of merger filed with the state of nevada and a certificate of merger filed with the state of delaware . in connection with the name change we also changed ( i ) the name of our subsidiary actinium pharmaceuticals , inc. to actinium corporation , ( ii ) our par value to $ 0.001 per share , and ( iii ) the number of authorized shares of preferred stock to 10 million shares . effective april 18 , 2013 our new trading symbol became atnm . on september 25 , 2013 , we merged with our subsidiary , actinium corporation , and we were the surviving entity of the merger . on august 22 , 2013 , actinium corporation continued its share exchange with us , whereby we acquired an additional 38.2 % of the issued and outstanding capital stock of actinium corporation from the actinium corporation shareholders in exchange for the issuance of 6,383,475 shares of common stock of us to the actinium shareholders . on september 25 , 2013 in accordance with a certificate of ownership merging actinium corporation into us , we merged with actinium corporation , and actinium corporation ceased to exist . as a result of the merger , actinium corporation stock owned by us has been cancelled and each share of actinium corporation not owned by us was exchanged for 0.333 shares of our common stock . on march 26 , 2014 , we began trading our common stock on the nyse mkt market . plan of operation we develop drugs for the treatment of cancer with the intent to cure or significantly improve survival of the affected patients . none of our drugs have been approved for sale in the united states or elsewhere . we have no commercial operations in sales or marketing of our products . all our product candidates are under development . in order to market and sell our products we must conduct clinical trials on patients and obtain regulatory approvals from appropriate regulatory agencies like the food and drug administration ( fda ) in the united states and similar agencies elsewhere in the world . our products under development are monoclonal antibodies labeled with radioisotopes . we have one program with an antibody labeled with a beta emitter and several programs based on a proprietary patent protected platform technology called apit . our apit technology is based on attaching actinium 225 ( ac-225 ) or bismuth 213 ( bi-213 ) alpha emitting radioisotopes to monoclonal antibodies . alpha emitting radioisotopes are unstable chemical elements that decay by releasing alpha particles . alpha particles can kill any cell in the immediate proximity of where they are released . monoclonal antibodies are genetically engineered proteins that specifically target certain cells , including cancer cells . it is crucial for the success of our drug candidates to contain monoclonal antibodies that can successfully seek cancer cells and can kill them with the attached isotope while not harming nearby normal cells . we do not have technology and operational capabilities to develop and manufacture such monoclonal antibodies and we therefore rely on collaboration with third parties to gain access to such monoclonal antibodies . we have secured rights to two monoclonal antibodies , hum195 ( lintuzumab ) , in 2003 through a collaborative licensing agreement with abbvie biotherapeutics corp and bc8 in 2012 with the fred hutchinson cancer research center ( “ fhcrc ” ) . story_separator_special_tag 44 story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; width : 100 % ; font-size : 10pt `` > 45 seasonality we do not have a seasonal business cycle . our operating results are generally derived evenly throughout the calendar year . critical accounting policies our financial statements have been prepared in accordance with accounting principles generally accepted in the united states . to prepare these financial statements , we must make estimates and assumptions that affect the reported amounts of assets and liabilities . these estimates also affect our expenses . judgments must also be made about the disclosure of contingent liabilities . actual results could be significantly different from these estimates . we believe that the following discussion addresses the accounting policies that are necessary to understand and evaluate our reported financial results . derivatives all derivatives are recorded at fair value and recorded on the balance sheet . fair values for securities traded in the open market and derivatives are based on quoted market prices . where market prices are not readily available , fair values are determined using market based pricing models incorporating readily observable market data and requiring judgment and estimates . fair value of financial instruments fair value is defined as the price that would be received to sell an asset , or paid to transfer a liability , in an orderly transaction between market participants . a fair value hierarchy has been established for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs . the fair value hierarchy is as follows : ● level 1 inputs – unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date . ● level 2 inputs – inputs other than quoted prices included in level 1 that are observable for the asset or liability , either directly or indirectly . these might include quoted prices for similar assets or liabilities in active markets , quoted prices for identical or similar assets or liabilities in markets that are not active , inputs other than quoted prices that are observable for the asset or liability ( such as interest rates , volatilities , prepayment speeds , credit risks , etc . ) or inputs that are derived principally from or corroborated by market data by correlation or other means . ● level 3 inputs – unobservable inputs for determining the fair values of assets or liabilities that reflect an entity 's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities . income taxes the company uses the asset and liability method in accounting for income taxes . under this method , deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amounts of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized . a valuation allowance , if necessary , is provided against deferred tax assets , based upon management 's assessment as to their realization . research and development costs research and development costs are expensed as incurred . research and development reimbursements and grants are recorded by the company as a reduction of research and development costs . share-based payments we estimate the fair value of each stock option award at the grant date by using the black-scholes option pricing model and common shares based on the market price of the company 's common stock on the date of the share grant . the fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award . as share-based compensation expense is recognized based on awards ultimately expected to vest , we reduce the expense for estimated forfeitures based on historical forfeiture rates . previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period . excess tax benefits , if any , are recognized as an addition to paid-in capital . 46 recent accounting pronouncements in april 2015 , the fasb issued an accounting standards update that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the guidance is effective for annual and interim reporting periods beginning after december 15 , 2015 , but early adoption is permitted . the company adopted asu 2015-03 on the consolidated financial statements in 2015. the adoption of asu 2015-03 has no impact on the company 's consolidated financial statements . management does not believe that any other recently issued , but not yet effective accounting pronouncements , if adopted , would have a material effect on the accompanying consolidated financial statements . subsequent event on january 4 , 2016 , the company sold 40,656 shares of common stock for gross proceeds of $ 130,156 as part of the sales agreement with mlv . on january 22 , 2016 , 500 shares of restricted stock vested and the company issued 500 shares of common stock to an employee . on january 27 , 2016 , the company issued 114,169 shares of common stock for the conversion of 164,580 warrants . on february 16 , 2016 , the company entered into a service agreement with medpace , inc. to be its clinical research organization for the phase 3 trial of iomab - b. the total project is estimated to
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1,023 | accordingly , revenue and the related cost of revenue from sales to these distributors is not recognized until the distributor resells the product . these distributor customers provide us with periodic data regarding product , price , quantity and customers when products are shipped to their customers , as well as quantities of our products that they still have in stock . from time to time , we may enter into arrangements with customers that provide for multiple deliverables that generally include the sale of products , professional engineering services and other product qualification or certification services ( collectively , the “ deliverables ” ) . pursuant to the applicable accounting guidance , when multiple deliverables in an arrangement are separated into different units of accounting , the arrangement consideration is allocated to the identified separate units that have stand-alone value at the inception of the contract based on a relative selling price hierarchy . we determine the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price ( “ vsoe ” ) , if available , third-party evidence ( “ tpe ” ) , if vsoe is not available , and our best estimate of selling price ( “ besp ” ) , if neither vsoe nor tpe is available . determining the besp for a deliverable requires significant judgment and consideration of various factors including market conditions , items contemplated during negotiation of customer arrangements as well as internally developed pricing models . significant judgment is also required in determining whether an arrangement includes multiple elements , and if so , whether vsoe or tpe of fair value exists for those elements . we recognize the relative fair value of the deliverables as they are delivered assuming all other revenue recognition criteria are met . in any period , a portion of revenue may be recorded as unearned due to elements of an arrangement that are undelivered . changes to the elements in an arrangement , the ability to identify vsoe , tpe or besp for those elements , and the fair value of the respective elements could materially impact the amounts of earned and unearned revenue we record . 20 warranty reserve the standard warranty periods for our products typically range from one to five years . we establish reserves for estimated product warranty costs at the time revenue is recognized based upon our historical warranty experience , and additionally for any known product warranty issues . although we engage in extensive product quality programs and processes , our warranty obligation is affected by product failure rates , use of materials or service delivery costs that differ from our estimates . as a result , increases or decreases to warranty reserves could be required , which could impact our gross margins . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our evaluation of the collectability of customer accounts receivable is based on various factors . in cases where we are aware of circumstances that may impair a specific customer 's ability to meet its financial obligations subsequent to the original sale , we will record an allowance against amounts due . for all other customers , we estimate an allowance for doubtful accounts based on the length of time the receivables are past due , our history of bad debts and general industry conditions . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our estimates , our financial results could be impacted . inventory valuation we value inventories at the lower of cost ( on a first-in , first-out basis ) or market , whereby we make estimates regarding the market value of our inventories , including an assessment of excess and obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future sales demand for our products within a specified time horizon , generally twelve months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing . in addition , specific reserves are recorded to cover risks in the area of end of life products , inventory located at our contract manufacturers , deferred inventory in our sales channel and warranty replacement stock . if actual product demand or market conditions are less favorable than our estimates , additional inventory write-downs could be required , which would increase our cost of revenue and reduce our gross margins . valuation of deferred income taxes we have recorded a valuation allowance to reduce our net deferred tax assets to zero , primarily due to historical net operating losses and uncertainty of generating future taxable income . we consider estimated future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . if we determine that it is more likely than not that we will realize a deferred tax asset that currently has a valuation allowance , we would be required to reverse the valuation allowance , which would be reflected as an income tax benefit in our consolidated statements of operations at that time . goodwill impairment testing we evaluate goodwill for impairment on an annual basis in our fiscal fourth quarter or more frequently if we believe indicators of impairment exist that would more likely than not reduce the fair value of our single reporting unit below its carrying amount . in performing our goodwill impairment testing , we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we conduct a two-step goodwill impairment test . story_separator_special_tag the decrease in legacy product sales were driven primarily by decreased unit sales of three of our product families : ( i ) micro in the americas and asia pacific regions , ( ii ) wiport in the asia pacific region and japan , ( iii ) xport in the emea region and japan . the overall decrease in net revenue in this product line was partially offset by increased unit sales of the xpico ( new ) and xport pro product families in the americas region and the xpico wifi ( new ) product family in the emea region . enterprise solutions fiscal 2015 net revenue from our enterprise solutions product line decreased primarily due to a decrease in our legacy products , such as the slc , eds , xpress and uds , as well as a decrease in sales of the xprintserver ( new ) product family . we also saw weakness in capital spending at a few large customers . the overall decrease in this product line 's net revenues was partially offset by growth in unit sales for many of our new products , including the new slb , eds-md , slc8000 and xdirect . gross profit gross profit represents net revenue less cost of revenue . cost of revenue consists of the cost of raw material components , subcontract labor assembly from contract manufacturers , manufacturing overhead , establishing or relieving inventory reserves for excess and obsolete products or raw materials , warranty costs , royalties and share-based compensation . the following table presents gross profit : replace_table_token_4_th gross margin for fiscal 2015 decreased compared to fiscal 2014 due to ( i ) charges for excess and obsolete inventories of approximately $ 600,000 and ( ii ) changes in our product mix , as our higher-margin enterprise solutions product line comprised a smaller percentage of our total net revenue in fiscal 2015 as compared to fiscal 2014. selling , general and administrative selling , general and administrative expenses consisted of personnel-related expenses including salaries and commissions , share-based compensation , facility expenses , information technology , trade show expenses , advertising and professional legal and accounting fees . the following table presents selling , general and administrative expenses : replace_table_token_5_th the decrease in selling , general and administrative expenses for fiscal 2015 was primarily due to ( i ) lower levels of spending on trade shows and outside marketing programs , ( ii ) lower variable compensation expenses and ( iii ) a decrease in legal fees . fiscal 2015 includes severance charges of $ 230,000 that were recorded in the fourth quarter of fiscal 2015 as part of a cost-cutting effort to reduce our ongoing operating expenses . 23 research and development research and development expenses consisted of personnel-related expenses including share-based compensation , as well as expenditures to third-party vendors for research and development activities , and product certification costs . the following table presents research and development expenses : replace_table_token_6_th fiscal 2015 research and development expenses increased due to ( i ) higher personnel-related expense from headcount and merit increases , which were partially offset by lower variable compensation expenses and ( ii ) increased product certification costs related to new product development . other expense , net other expense , net , is comprised primarily of foreign currency remeasurement and transaction adjustments related to our foreign subsidiaries whose functional currency is the u.s. dollar . provision for income taxes the following table presents the income tax provision : replace_table_token_7_th the following table presents our effective tax rate based upon our income tax provision : replace_table_token_8_th we utilize the liability method of accounting for income taxes . the difference between our effective tax rate and the federal statutory rate resulted primarily from the effect of our domestic losses recorded without a tax benefit , as well as the effect of foreign earnings taxed at rates differing from the federal statutory rate . we record net deferred tax assets to the extent we believe these assets will more likely than not be realized . as a result of our cumulative losses and uncertainty of generating future taxable income , we provided a full valuation allowance against our net deferred tax assets for fiscal 2015 and 2014 . 24 due to the “ change of ownership ” provision of the tax reform act of 1986 , utilization of our net operating loss ( “ nol ” ) carryforwards and tax credit carryforwards may be subject to an annual limitation against taxable income in future periods . as a result of the annual limitation , a portion of these carryforwards may expire before ultimately becoming available to reduce future income tax liabilities . the following table summarizes our nols : june 30 , 2015 ( in thousands ) federal $ 87,726 state $ 29,517 our nol carryovers for federal income tax purposes begin to expire in the fiscal year ending june 30 , 2021. our nol carryovers for state income tax purposes began to expire in fiscal 2013. at june 30 , 2015 , our fiscal 2012 through 2015 tax years remain open to examination by the federal taxing jurisdiction and our fiscal 2011 through 2015 tax years remain open to examination by the state taxing jurisdictions . however , we have nols beginning in the fiscal year ended june 30 , 2001 which would cause the statute of limitations to remain open for the year in which the nol was incurred . liquidity and capital resources story_separator_special_tag roman , times , serif ; margin : 0 ; text-indent : 0.5in `` > the following table presents the major components of the consolidated statements of cash flows : replace_table_token_11_th operating activities net cash used by operating activities in fiscal 2015 increased as compared to the prior year due primarily to ( i ) a larger net loss and ( ii ) an increase in inventories from the end of fiscal 2014 of approximately $
| liquidity the following table presents details of our working capital and cash and cash equivalents : replace_table_token_9_th our principal sources of cash and liquidity include our existing cash and cash equivalents , borrowings and amounts available under our credit facilities , and cash generated from operations . we believe that these sources will be sufficient to fund our current requirements for working capital , capital expenditures and other financial commitments for at least the next 12 months . we anticipate that the primary factors affecting our cash and liquidity are net revenue , working capital requirements and capital expenditures . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . we maintain cash and cash equivalents balances at certain financial institutions in excess of amounts insured by federal agencies . management does not believe this concentration subjects us to any unusual financial risk beyond the normal risk associated with commercial banking relationships . we frequently monitor the third-party depository institutions that hold our cash and cash equivalents . our emphasis is primarily on safety of principal and secondarily on maximizing yield on those funds . our future working capital requirements will depend on many factors , including the timing and amount of our net revenue , research and development expenses , and expenses associated with any strategic partnerships or acquisitions and infrastructure investments . we incurred a net loss of $ 2.8 million and $ 0.9 million for fiscal 2015 and 2014 , respectively . we expect our existing cash and cash equivalents , amounts available under our credit facilities and cash generated from operations will be sufficient to fund our capital expenditures , our working capital and other cash requirements .
| 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. |
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 the following table presents details of our working capital and cash and cash equivalents : replace_table_token_9_th our principal sources of cash and liquidity include our existing cash and cash equivalents , borrowings and amounts available under our credit facilities , and cash generated from operations . we believe that these sources will be sufficient to fund our current requirements for working capital , capital expenditures and other financial commitments for at least the next 12 months . we anticipate that the primary factors affecting our cash and liquidity are net revenue , working capital requirements and capital expenditures . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . we maintain cash and cash equivalents balances at certain financial institutions in excess of amounts insured by federal agencies . management does not believe this concentration subjects us to any unusual financial risk beyond the normal risk associated with commercial banking relationships . we frequently monitor the third-party depository institutions that hold our cash and cash equivalents . our emphasis is primarily on safety of principal and secondarily on maximizing yield on those funds . our future working capital requirements will depend on many factors , including the timing and amount of our net revenue , research and development expenses , and expenses associated with any strategic partnerships or acquisitions and infrastructure investments . we incurred a net loss of $ 2.8 million and $ 0.9 million for fiscal 2015 and 2014 , respectively . we expect our existing cash and cash equivalents , amounts available under our credit facilities and cash generated from operations will be sufficient to fund our capital expenditures , our working capital and other cash requirements .
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Suspicious Activity Report : accordingly , revenue and the related cost of revenue from sales to these distributors is not recognized until the distributor resells the product . these distributor customers provide us with periodic data regarding product , price , quantity and customers when products are shipped to their customers , as well as quantities of our products that they still have in stock . from time to time , we may enter into arrangements with customers that provide for multiple deliverables that generally include the sale of products , professional engineering services and other product qualification or certification services ( collectively , the “ deliverables ” ) . pursuant to the applicable accounting guidance , when multiple deliverables in an arrangement are separated into different units of accounting , the arrangement consideration is allocated to the identified separate units that have stand-alone value at the inception of the contract based on a relative selling price hierarchy . we determine the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price ( “ vsoe ” ) , if available , third-party evidence ( “ tpe ” ) , if vsoe is not available , and our best estimate of selling price ( “ besp ” ) , if neither vsoe nor tpe is available . determining the besp for a deliverable requires significant judgment and consideration of various factors including market conditions , items contemplated during negotiation of customer arrangements as well as internally developed pricing models . significant judgment is also required in determining whether an arrangement includes multiple elements , and if so , whether vsoe or tpe of fair value exists for those elements . we recognize the relative fair value of the deliverables as they are delivered assuming all other revenue recognition criteria are met . in any period , a portion of revenue may be recorded as unearned due to elements of an arrangement that are undelivered . changes to the elements in an arrangement , the ability to identify vsoe , tpe or besp for those elements , and the fair value of the respective elements could materially impact the amounts of earned and unearned revenue we record . 20 warranty reserve the standard warranty periods for our products typically range from one to five years . we establish reserves for estimated product warranty costs at the time revenue is recognized based upon our historical warranty experience , and additionally for any known product warranty issues . although we engage in extensive product quality programs and processes , our warranty obligation is affected by product failure rates , use of materials or service delivery costs that differ from our estimates . as a result , increases or decreases to warranty reserves could be required , which could impact our gross margins . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our evaluation of the collectability of customer accounts receivable is based on various factors . in cases where we are aware of circumstances that may impair a specific customer 's ability to meet its financial obligations subsequent to the original sale , we will record an allowance against amounts due . for all other customers , we estimate an allowance for doubtful accounts based on the length of time the receivables are past due , our history of bad debts and general industry conditions . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our estimates , our financial results could be impacted . inventory valuation we value inventories at the lower of cost ( on a first-in , first-out basis ) or market , whereby we make estimates regarding the market value of our inventories , including an assessment of excess and obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future sales demand for our products within a specified time horizon , generally twelve months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing . in addition , specific reserves are recorded to cover risks in the area of end of life products , inventory located at our contract manufacturers , deferred inventory in our sales channel and warranty replacement stock . if actual product demand or market conditions are less favorable than our estimates , additional inventory write-downs could be required , which would increase our cost of revenue and reduce our gross margins . valuation of deferred income taxes we have recorded a valuation allowance to reduce our net deferred tax assets to zero , primarily due to historical net operating losses and uncertainty of generating future taxable income . we consider estimated future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . if we determine that it is more likely than not that we will realize a deferred tax asset that currently has a valuation allowance , we would be required to reverse the valuation allowance , which would be reflected as an income tax benefit in our consolidated statements of operations at that time . goodwill impairment testing we evaluate goodwill for impairment on an annual basis in our fiscal fourth quarter or more frequently if we believe indicators of impairment exist that would more likely than not reduce the fair value of our single reporting unit below its carrying amount . in performing our goodwill impairment testing , we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we conduct a two-step goodwill impairment test . story_separator_special_tag the decrease in legacy product sales were driven primarily by decreased unit sales of three of our product families : ( i ) micro in the americas and asia pacific regions , ( ii ) wiport in the asia pacific region and japan , ( iii ) xport in the emea region and japan . the overall decrease in net revenue in this product line was partially offset by increased unit sales of the xpico ( new ) and xport pro product families in the americas region and the xpico wifi ( new ) product family in the emea region . enterprise solutions fiscal 2015 net revenue from our enterprise solutions product line decreased primarily due to a decrease in our legacy products , such as the slc , eds , xpress and uds , as well as a decrease in sales of the xprintserver ( new ) product family . we also saw weakness in capital spending at a few large customers . the overall decrease in this product line 's net revenues was partially offset by growth in unit sales for many of our new products , including the new slb , eds-md , slc8000 and xdirect . gross profit gross profit represents net revenue less cost of revenue . cost of revenue consists of the cost of raw material components , subcontract labor assembly from contract manufacturers , manufacturing overhead , establishing or relieving inventory reserves for excess and obsolete products or raw materials , warranty costs , royalties and share-based compensation . the following table presents gross profit : replace_table_token_4_th gross margin for fiscal 2015 decreased compared to fiscal 2014 due to ( i ) charges for excess and obsolete inventories of approximately $ 600,000 and ( ii ) changes in our product mix , as our higher-margin enterprise solutions product line comprised a smaller percentage of our total net revenue in fiscal 2015 as compared to fiscal 2014. selling , general and administrative selling , general and administrative expenses consisted of personnel-related expenses including salaries and commissions , share-based compensation , facility expenses , information technology , trade show expenses , advertising and professional legal and accounting fees . the following table presents selling , general and administrative expenses : replace_table_token_5_th the decrease in selling , general and administrative expenses for fiscal 2015 was primarily due to ( i ) lower levels of spending on trade shows and outside marketing programs , ( ii ) lower variable compensation expenses and ( iii ) a decrease in legal fees . fiscal 2015 includes severance charges of $ 230,000 that were recorded in the fourth quarter of fiscal 2015 as part of a cost-cutting effort to reduce our ongoing operating expenses . 23 research and development research and development expenses consisted of personnel-related expenses including share-based compensation , as well as expenditures to third-party vendors for research and development activities , and product certification costs . the following table presents research and development expenses : replace_table_token_6_th fiscal 2015 research and development expenses increased due to ( i ) higher personnel-related expense from headcount and merit increases , which were partially offset by lower variable compensation expenses and ( ii ) increased product certification costs related to new product development . other expense , net other expense , net , is comprised primarily of foreign currency remeasurement and transaction adjustments related to our foreign subsidiaries whose functional currency is the u.s. dollar . provision for income taxes the following table presents the income tax provision : replace_table_token_7_th the following table presents our effective tax rate based upon our income tax provision : replace_table_token_8_th we utilize the liability method of accounting for income taxes . the difference between our effective tax rate and the federal statutory rate resulted primarily from the effect of our domestic losses recorded without a tax benefit , as well as the effect of foreign earnings taxed at rates differing from the federal statutory rate . we record net deferred tax assets to the extent we believe these assets will more likely than not be realized . as a result of our cumulative losses and uncertainty of generating future taxable income , we provided a full valuation allowance against our net deferred tax assets for fiscal 2015 and 2014 . 24 due to the “ change of ownership ” provision of the tax reform act of 1986 , utilization of our net operating loss ( “ nol ” ) carryforwards and tax credit carryforwards may be subject to an annual limitation against taxable income in future periods . as a result of the annual limitation , a portion of these carryforwards may expire before ultimately becoming available to reduce future income tax liabilities . the following table summarizes our nols : june 30 , 2015 ( in thousands ) federal $ 87,726 state $ 29,517 our nol carryovers for federal income tax purposes begin to expire in the fiscal year ending june 30 , 2021. our nol carryovers for state income tax purposes began to expire in fiscal 2013. at june 30 , 2015 , our fiscal 2012 through 2015 tax years remain open to examination by the federal taxing jurisdiction and our fiscal 2011 through 2015 tax years remain open to examination by the state taxing jurisdictions . however , we have nols beginning in the fiscal year ended june 30 , 2001 which would cause the statute of limitations to remain open for the year in which the nol was incurred . liquidity and capital resources story_separator_special_tag roman , times , serif ; margin : 0 ; text-indent : 0.5in `` > the following table presents the major components of the consolidated statements of cash flows : replace_table_token_11_th operating activities net cash used by operating activities in fiscal 2015 increased as compared to the prior year due primarily to ( i ) a larger net loss and ( ii ) an increase in inventories from the end of fiscal 2014 of approximately $
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1,024 | revenues from the iads segment were $ 1.2 million for the year ended december 31 , 2012. there were no revenues from the iads segment for the year ended december 31 , 2011. the $ 11.4 million increase in the content services segment is principally attributable to higher revenues from e-book related services that we performed for one of our significant clients . we experienced sequential declines in revenue from this client in the last three quarters of 2012. our top two clients generated $ 35 million or 41 % and $ 22.2 million or 30 % of our total revenues in the fiscal years ended december 31 , 2012 and 2011 , respectively . another client accounted for less than 10 % of our total revenues for the year ended december 31 , 2012 , but for 14 % of our total revenues for the year ended december 31 , 2011. no other client accounted for 10 % or more of revenues during these periods . further , in the years ended december 31 , 2012 and 2011 , revenues from non-u.s. clients accounted for 24 % and 30 % , respectively , of our total revenues . direct operating costs direct operating costs were approximately $ 57.4 million and $ 50.2 million for years ended december 31 , 2012 and 2011 , respectively , an increase of $ 7.2 million or approximately 14 % . direct operating costs for the content services segment were $ 53.3 million and $ 49.6 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.7 million or approximately 7 % . direct operating costs for the iads segment were approximately $ 4.1 million and $ 0.6 million for the respective periods , net of intersegment profits . 25 the increase in direct operating costs for the content services segment was principally attributable to an increase in production headcount and other operating costs in support of increased revenues . the increase in direct operating costs was partially offset by a decrease in direct labor costs achieved primarily from productivity gains . the productivity gains were principally the result of increased efficiency , improvements in our processes and innovation in our technology . the increase in direct operating costs for the iads segment represents production costs for initial engagements , increase in production labor costs to perform pilot engagements and facility overhead costs for our new delivery center in asia . direct operating costs as a percentage of total revenues declined to 66 % for the year ended december 31 , 2012 compared to 68 % for the year ended december 31 , 2011. direct operating costs for the content services segment as a percentage of content services segment revenues were approximately 62 % for the year ended december 31 , 2012 , compared to 67 % for the year ended december 31 , 2011. selling and administrative expenses selling and administrative expenses were $ 22.2 million and $ 19.1 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.1 million , or approximately 16 % . selling and administrative costs for the content services segment were $ 19.3 million and $ 17.5 million in these respective periods . selling and administrative expenses for the iads segment for the respective periods were $ 2.9 million and $ 1.6 million , net of intersegment profits . the increase in selling and administrative expenses for the content services segment for the year ended december 31 , 2012 is principally attributable to compensation costs of new hires , wage increases and an increase in other miscellaneous administrative costs . during the year ended december 31 , 2011 , we recorded approximately $ 0.5 million from the recovery of bad debts from a previously fully reserved account receivable . selling and administrative expenses for the content services segment , as a percentage of content services segment revenues , declined to 23 % for the year ended december 31 , 2012 , from 24 % for the year ended 2011 , and this was primarily as a result of higher revenues . the $ 1.3 million increase in selling and administrative expenses for the iads segment is primarily attributable to compensation costs of new personnel hired for sales and marketing and increases in other administrative costs . impairment charge docgenix provided services to three clients in 2012 and we expect to continue to provide services to some of these clients in 2013. the existing docgenix product and service offering did not gain traction in the market place beyond its initial clients . in order to reach a broader market we will need to revise our approach from that represented by the existing product and service . as a result in the fourth quarter of 2012 , we evaluated the carrying value of the fixed assets of our docgenix subsidiary compared to its fair value and concluded that the carrying value exceeds its fair value . this resulted in an impairment charge of $ 0.5 million . restructuring costs in the second half of 2012 , we restructured our operations , and recorded a one-time charge of approximately $ 0.2 million ( $ 0.1 million in direct operating costs and $ 0.1 million in selling , general and administrative costs ) representing severance and other personnel-related expenses . we expect cost savings of approximately $ 3.0 million per year from this restructuring activity . 26 income taxes for the year ended december 31 , 2012 , our u.s. entity recorded a benefit from income tax on account of losses incurred by our u.s. entity . with respect to our foreign subsidiaries , we recorded a provision for income taxes in accordance with the local tax regulations . story_separator_special_tag at present , we do not enter into any hedging instruments to mitigate foreign exchange risk on such assets , however , we may do so in the future . future liquidity and capital resource requirements we have a $ 15.0 million line of credit pursuant to which we may borrow up to 80 % of eligible accounts receivable . borrowings under the credit line bear interest at the bank 's alternate base rate plus 0.5 % or libor plus 2.5 % . the line , which expires in june 2013 , is collateralized by our accounts receivable . we have no outstanding obligations under this credit line as of december 31 , 2012. we believe that our existing cash and cash equivalents , short-term and long-term investments , funds generated from our operating activities and funds available under our credit facility will provide sufficient sources of liquidity to satisfy our financial needs for the next twelve months . however , if circumstances change , we may need to raise debt or additional equity capital in the future . we have historically funded our foreign expenditures from our u.s. corporate headquarters on an as-needed basis . in the second quarter of 2012 , we filed a shelf registration statement on form s-3 , which will give us the ability to offer from time to time up to an aggregate of $ 70 million of securities , which may consist of common stock , preferred stock , debt securities , warrants , or units consisting of any of the foregoing . the registration is intended to give us flexibility should financing opportunities arise . contractual obligations the table below summarizes our contractual obligations ( in thousands ) at december 31 , 2012 , and the effect that those obligations are expected to have on our liquidity and cash flows in future periods . 32 replace_table_token_6_th future expected obligations under our pension benefit plans have not been included in the contractual cash obligations table above . inflation , seasonality and prevailing economic conditions our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to higher inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace and begin new projects , which may have some normal start-up delays , or we may be unable to replace a project entirely . these and other factors may contribute to fluctuations in our operating results from quarter to quarter . in addition , as some of our asian facilities are closed during holidays in the fourth quarter , we typically incur higher wages , due to overtime , that reduce our margins . critical accounting policies and estimates basis of presentation and use of estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosures of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowance for doubtful accounts and billing adjustments , long-lived assets , goodwill , valuation of deferred tax assets , value of securities underlying stock-based compensation , litigation accruals , pension benefits , valuation of derivative instruments and estimated accruals for various tax exposures . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our consolidated results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . 33 allowance for doubtful accounts we establish credit terms for new clients based upon management 's review of their credit information and project terms , and perform ongoing credit evaluations of our clients , adjusting credit terms when management believes appropriate , based upon payment history and an assessment of their current credit worthiness . we record an allowance for doubtful accounts for estimated losses resulting from the inability of our clients to make required payments . we determine this allowance by considering a number of factors , including the length of time trade accounts receivable are past due , our previous loss history , our estimate of the client 's current ability to pay its obligation to us , and the condition of the general economy and the industry as a whole . while credit losses have generally been within expectations and the provisions established , we can not guarantee that credit loss rates in the future will be consistent with those experienced in the past . in addition , we would have credit exposure if the financial condition of one of our major clients were to deteriorate . in the event that the financial condition of our clients were to deteriorate ,
| liquidity and capital resources selected measures of liquidity and capital resources , expressed in thousands , are as follows : replace_table_token_5_th at december 31 , 2012 we had cash and cash equivalents of $ 25.4 million , of which $ 15.1 million was held by our foreign subsidiaries , and short term investments of $ 3.1 million which was entirely held by our operating foreign subsidiaries located in asia . a significant portion of the amounts held outside of the unites states could be repatriated to the united states , but under current law , would be subject to unites states federal income taxes , less applicable foreign tax credit . however , our intent is to permanently reinvest these funds outside the unites states . we have used , and plan to use , our existing cash for ( i ) expansion of existing operations ; ( ii ) general corporate purposes , including working capital ; ( iii ) possible business acquisitions ; and ( iv ) continuing investments in iads . as of december 31 , 2012 , we had no third party debt and had working capital of approximately $ 32.8 million compared to working capital of approximately $ 28.1 million at december 31 , 2011. we do not anticipate any near-term liquidity issues . cash balances are held in bank deposits at leading u.s. and foreign commercial banks . 30 net cash provided by ( used in ) operating activities cash provided by our operating activities in 2012 was $ 17.8 million , resulting from net income of $ 5.7 million , adjustments for non-cash items of $ 5.3 million , and $ 6.8 million provided for working capital . adjustments for non-cash items principally consisted of $ 3.9 million for depreciation and amortization , stock compensation expense of $ 1.0 million and an impairment charge of approximately $ 0.5 million relating to the iads segment .
| 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. |
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 selected measures of liquidity and capital resources , expressed in thousands , are as follows : replace_table_token_5_th at december 31 , 2012 we had cash and cash equivalents of $ 25.4 million , of which $ 15.1 million was held by our foreign subsidiaries , and short term investments of $ 3.1 million which was entirely held by our operating foreign subsidiaries located in asia . a significant portion of the amounts held outside of the unites states could be repatriated to the united states , but under current law , would be subject to unites states federal income taxes , less applicable foreign tax credit . however , our intent is to permanently reinvest these funds outside the unites states . we have used , and plan to use , our existing cash for ( i ) expansion of existing operations ; ( ii ) general corporate purposes , including working capital ; ( iii ) possible business acquisitions ; and ( iv ) continuing investments in iads . as of december 31 , 2012 , we had no third party debt and had working capital of approximately $ 32.8 million compared to working capital of approximately $ 28.1 million at december 31 , 2011. we do not anticipate any near-term liquidity issues . cash balances are held in bank deposits at leading u.s. and foreign commercial banks . 30 net cash provided by ( used in ) operating activities cash provided by our operating activities in 2012 was $ 17.8 million , resulting from net income of $ 5.7 million , adjustments for non-cash items of $ 5.3 million , and $ 6.8 million provided for working capital . adjustments for non-cash items principally consisted of $ 3.9 million for depreciation and amortization , stock compensation expense of $ 1.0 million and an impairment charge of approximately $ 0.5 million relating to the iads segment .
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Suspicious Activity Report : revenues from the iads segment were $ 1.2 million for the year ended december 31 , 2012. there were no revenues from the iads segment for the year ended december 31 , 2011. the $ 11.4 million increase in the content services segment is principally attributable to higher revenues from e-book related services that we performed for one of our significant clients . we experienced sequential declines in revenue from this client in the last three quarters of 2012. our top two clients generated $ 35 million or 41 % and $ 22.2 million or 30 % of our total revenues in the fiscal years ended december 31 , 2012 and 2011 , respectively . another client accounted for less than 10 % of our total revenues for the year ended december 31 , 2012 , but for 14 % of our total revenues for the year ended december 31 , 2011. no other client accounted for 10 % or more of revenues during these periods . further , in the years ended december 31 , 2012 and 2011 , revenues from non-u.s. clients accounted for 24 % and 30 % , respectively , of our total revenues . direct operating costs direct operating costs were approximately $ 57.4 million and $ 50.2 million for years ended december 31 , 2012 and 2011 , respectively , an increase of $ 7.2 million or approximately 14 % . direct operating costs for the content services segment were $ 53.3 million and $ 49.6 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.7 million or approximately 7 % . direct operating costs for the iads segment were approximately $ 4.1 million and $ 0.6 million for the respective periods , net of intersegment profits . 25 the increase in direct operating costs for the content services segment was principally attributable to an increase in production headcount and other operating costs in support of increased revenues . the increase in direct operating costs was partially offset by a decrease in direct labor costs achieved primarily from productivity gains . the productivity gains were principally the result of increased efficiency , improvements in our processes and innovation in our technology . the increase in direct operating costs for the iads segment represents production costs for initial engagements , increase in production labor costs to perform pilot engagements and facility overhead costs for our new delivery center in asia . direct operating costs as a percentage of total revenues declined to 66 % for the year ended december 31 , 2012 compared to 68 % for the year ended december 31 , 2011. direct operating costs for the content services segment as a percentage of content services segment revenues were approximately 62 % for the year ended december 31 , 2012 , compared to 67 % for the year ended december 31 , 2011. selling and administrative expenses selling and administrative expenses were $ 22.2 million and $ 19.1 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.1 million , or approximately 16 % . selling and administrative costs for the content services segment were $ 19.3 million and $ 17.5 million in these respective periods . selling and administrative expenses for the iads segment for the respective periods were $ 2.9 million and $ 1.6 million , net of intersegment profits . the increase in selling and administrative expenses for the content services segment for the year ended december 31 , 2012 is principally attributable to compensation costs of new hires , wage increases and an increase in other miscellaneous administrative costs . during the year ended december 31 , 2011 , we recorded approximately $ 0.5 million from the recovery of bad debts from a previously fully reserved account receivable . selling and administrative expenses for the content services segment , as a percentage of content services segment revenues , declined to 23 % for the year ended december 31 , 2012 , from 24 % for the year ended 2011 , and this was primarily as a result of higher revenues . the $ 1.3 million increase in selling and administrative expenses for the iads segment is primarily attributable to compensation costs of new personnel hired for sales and marketing and increases in other administrative costs . impairment charge docgenix provided services to three clients in 2012 and we expect to continue to provide services to some of these clients in 2013. the existing docgenix product and service offering did not gain traction in the market place beyond its initial clients . in order to reach a broader market we will need to revise our approach from that represented by the existing product and service . as a result in the fourth quarter of 2012 , we evaluated the carrying value of the fixed assets of our docgenix subsidiary compared to its fair value and concluded that the carrying value exceeds its fair value . this resulted in an impairment charge of $ 0.5 million . restructuring costs in the second half of 2012 , we restructured our operations , and recorded a one-time charge of approximately $ 0.2 million ( $ 0.1 million in direct operating costs and $ 0.1 million in selling , general and administrative costs ) representing severance and other personnel-related expenses . we expect cost savings of approximately $ 3.0 million per year from this restructuring activity . 26 income taxes for the year ended december 31 , 2012 , our u.s. entity recorded a benefit from income tax on account of losses incurred by our u.s. entity . with respect to our foreign subsidiaries , we recorded a provision for income taxes in accordance with the local tax regulations . story_separator_special_tag at present , we do not enter into any hedging instruments to mitigate foreign exchange risk on such assets , however , we may do so in the future . future liquidity and capital resource requirements we have a $ 15.0 million line of credit pursuant to which we may borrow up to 80 % of eligible accounts receivable . borrowings under the credit line bear interest at the bank 's alternate base rate plus 0.5 % or libor plus 2.5 % . the line , which expires in june 2013 , is collateralized by our accounts receivable . we have no outstanding obligations under this credit line as of december 31 , 2012. we believe that our existing cash and cash equivalents , short-term and long-term investments , funds generated from our operating activities and funds available under our credit facility will provide sufficient sources of liquidity to satisfy our financial needs for the next twelve months . however , if circumstances change , we may need to raise debt or additional equity capital in the future . we have historically funded our foreign expenditures from our u.s. corporate headquarters on an as-needed basis . in the second quarter of 2012 , we filed a shelf registration statement on form s-3 , which will give us the ability to offer from time to time up to an aggregate of $ 70 million of securities , which may consist of common stock , preferred stock , debt securities , warrants , or units consisting of any of the foregoing . the registration is intended to give us flexibility should financing opportunities arise . contractual obligations the table below summarizes our contractual obligations ( in thousands ) at december 31 , 2012 , and the effect that those obligations are expected to have on our liquidity and cash flows in future periods . 32 replace_table_token_6_th future expected obligations under our pension benefit plans have not been included in the contractual cash obligations table above . inflation , seasonality and prevailing economic conditions our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to higher inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace and begin new projects , which may have some normal start-up delays , or we may be unable to replace a project entirely . these and other factors may contribute to fluctuations in our operating results from quarter to quarter . in addition , as some of our asian facilities are closed during holidays in the fourth quarter , we typically incur higher wages , due to overtime , that reduce our margins . critical accounting policies and estimates basis of presentation and use of estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosures of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowance for doubtful accounts and billing adjustments , long-lived assets , goodwill , valuation of deferred tax assets , value of securities underlying stock-based compensation , litigation accruals , pension benefits , valuation of derivative instruments and estimated accruals for various tax exposures . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our consolidated results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . 33 allowance for doubtful accounts we establish credit terms for new clients based upon management 's review of their credit information and project terms , and perform ongoing credit evaluations of our clients , adjusting credit terms when management believes appropriate , based upon payment history and an assessment of their current credit worthiness . we record an allowance for doubtful accounts for estimated losses resulting from the inability of our clients to make required payments . we determine this allowance by considering a number of factors , including the length of time trade accounts receivable are past due , our previous loss history , our estimate of the client 's current ability to pay its obligation to us , and the condition of the general economy and the industry as a whole . while credit losses have generally been within expectations and the provisions established , we can not guarantee that credit loss rates in the future will be consistent with those experienced in the past . in addition , we would have credit exposure if the financial condition of one of our major clients were to deteriorate . in the event that the financial condition of our clients were to deteriorate ,
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1,025 | competition for new engagements and pricing pressure has been strong . throughout 2017 , many of our healthcare clients did not begin new projects when existing projects ended due to their capital constraints . the demand for the company 's information and technology-related solutions business , primarily in our healthcare vertical market in north america improved in 2018 and 2019 as spending increased along with the improving economy . the company operates in one industry segment , providing information and technology-related services to its clients . these services include information and technology-related solutions , including supplemental staffing as a solution . with solutions services , we generally take responsibility for the deliverables and some level of project and staff management , and services may include high-end advisory or business related consulting . when providing staffing services , including managed staffing , staff augmentation , and volume staffing , we typically supply personnel to our clients who then , in turn , take their direction from the clients ' managers . it solutions and it and other staffing revenue as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_8_th the company promotes a majority of its services through five vertical market focus areas : technology service providers , manufacturing , healthcare ( which includes services provided to healthcare providers , health insurers ( payers ) , and life sciences companies ) , financial services , and energy . the remainder of ctg 's revenue is derived from general markets . 19 ctg 's revenue by vertical market as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_9_th the it services industry is extremely competitive and characterized by continuous changes in client requirements and improvements in technologies . our competition varies significantly by geographic region , as well as by the type of service provided . many of our competitors are larger than ctg , and have greater financial , technical , sales , and marketing resources . in addition , the company frequently competes with a client 's own internal it staff . our industry is impacted by the growing use of lower-cost offshore delivery capabilities ( primarily india and other parts of asia ) . there can be no assurance that we will be able to continue to compete successfully with existing or future competitors or that future competition will not have a material adverse effect on our results of operations and financial condition . revenue recognition the company recognizes revenue when control of the promised good or service is transferred to clients , in an amount that reflects the consideration the company expects to be entitled to in exchange for those goods or services . for time-and-material contracts , revenue is recognized as hours are incurred and costs are expended . for contracts with progress billing schedules , primarily monthly , revenue is recognized as services are rendered to the client . revenue for fixed-price contracts is recognized over time using an input-based approach . over time revenue recognition best portrays the company 's performance in transferring control of the goods or services to the client . on most fixed price contracts , revenue recognition is supported through contractual clauses that require the client to pay for work performed to date , including cost plus a reasonable profit margin , for goods or services that have no alternative use to the company . on certain contracts , revenue recognition is supported through contractual clauses that indicate the client controls the asset , or work in process , as the company creates or enhances the asset . on a given project , actual salary and indirect labor costs incurred are measured and compared with the total estimate of costs of such items at the completion of the project . revenue is recognized based upon the percentage-of-completion calculation of total incurred costs to total estimated costs . the company infrequently works on fixed-price projects that include significant amounts of material or other non-labor related costs that could distort the percent complete within a percentage-of-completion calculation . the company 's estimate of the total labor costs it expects to incur over the term of the contract is based on the nature of the project and our experience on similar projects , and includes management judgments and estimates that affect the amount of revenue recognized on fixed-price contracts in any accounting period . losses on fixed-price projects are recorded when identified . the company 's revenue from contracts accounted for under time-and-material , progress billing , and percentage-of-completion methods as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_10_th 20 results of operations the table below sets forth percentage information calculated as a percentage of consolidated revenue as reported on the company 's consolidated statements of operations as included in item 8 , “ financial statements and supplementary data ” in this report . replace_table_token_11_th 2019 as compared with 2018 the company recorded revenue in 2019 and 2018 as follows : replace_table_token_12_th the company 's focus , throughout its operations , is to expand the amount of it solutions services it provides to its clients , as compared with it staffing services , and to become a solutions-centric company . it solutions provide significant value to our clients , and drive higher bill rates and margins for the company . our existing solutions , such as application maintenance and outsourcing , data management and testing , combined with new or expanded solutions through acquisitions , will give the company a broader set of it solutions to provide to its clients . additionally , the company will continue to expand the capabilities of its existing solutions by adding elements such as robotic process automation and artificial intelligence . story_separator_special_tag in the 2017 third quarter , the company recorded a significant increase in fringe benefit costs primarily consisting of medical expense . the increase in medical expense , which totaled approximately $ 1.0 million in direct costs , was due to much higher utilization of the company 's self-insured medical plan during the year . the company also recorded $ 0.4 million of severance charges in the 2017 second quarter . when considering these items , direct costs as a percentage of revenue in 2018 were comparable in 2017. selling , general and administrative ( sg & a ) expenses were 18.5 % of revenue in 2018 as compared with 17.2 % of revenue in 2017. the increase in sg & a expenses as a percentage of revenue in 2018 as compared with 2017 was primarily due to costs incurred by our operating units as the company continued to make investments in sales , recruiting and delivery resources in order to focus on the company 's long-term growth . additionally , sg & a in 2018 includes acquisition-related costs , including the amortization of intangible assets associated with the acquisition of soft company , totaling $ 2.0 million , and $ 0.7 million in severance . operating income was 0.6 % of revenue in 2018 as compared with 1.4 % of revenue in 2017. the operating loss from the north american operations was $ 2.4 million in 2018 compared with $ 0.1 million in 2017. the 2018 loss was impacted by investments in business development , recruiting , and marketing of nearly $ 3.5 million , some of which have yet to generate revenue and profits . additionally , the company recorded $ 2.0 million in acquisition related costs , and $ 0.7 million in severance . operating income in 2017 was reduced by a total of $ 2.0 million from unusually high utilization of the company 's self-insured medical plan , and severance . 24 operating income from our european operations was $ 5.3 million in 2018 compared with $ 4.0 million in 2017 . the increase in operating income in 2018 compared with 2017 wa s primarily due to strong demand for the company 's services in the european markets we serve , and the acquisition of soft company completed in february 2018. other income ( expense ) was 0.1 % of revenue in 2018 and 0.0 % of revenue in 2017. in 2018 and 2017 , the company recorded a non-taxable life insurance gain of approximately $ 0.8 and $ 0.4 million , respectively , as one of its former executives passed away in each year . the company 's effective tax rate ( etr ) is calculated based upon the full year 's operating results and various tax related items . the etr in 2018 was 224.2 % , while the 2017 etr was 80.1 % . the etr was high in 2018 primarily due to the company recording a valuation allowance for its deferred tax assets in the u.s. totaling $ 3.8 million as the company has recurring pre-tax losses in recent years and uncertainty as to income in future years . the company also incurred approximately $ 0.7 million of tax associated with the gilti provisions of the 2017 tax cut and jobs act , and $ 0.3 million of tax from non-deductible acquisition-related costs in our foreign operations . these items , which caused additional tax expense , were offset by a non-taxable life insurance gain , the reversal of the valuation for deferred tax assets in the united kingdom , the tax cut and jobs act which reduced the u.s. federal corporate tax rate to 21 % , and tax benefits for the work opportunity tax credit ( wotc ) and research and development tax credit ( r & d ) . the etr was high in 2017 primarily due to the effects of the tax cuts & jobs act which resulted in the company reducing its u.s. deferred tax assets by $ 1.7 million , and the adoption of asu 2016-09 , “ improvements to employee share-based payment accounting , ” which required the company to record additional tax expense of $ 0.3 million for shortfalls that would previously have been recorded to capital in excess of par value on the company 's consolidated balance sheet . this additional tax expense was partially offset by tax benefits for the work opportunity tax credit ( wotc ) and research and development tax credit ( r & d ) . net loss for 2018 was ( 0.8 ) % of revenue or $ ( 0.20 ) per diluted share , compared with net income of 0.3 % of revenue or $ 0.05 per diluted share in 2017. diluted earnings per share were calculated using 13.8 million weighted-average equivalent shares outstanding in 2018 and 15.3 million in 2017. the decrease in shares year-over-year was due to the company 's dutch auction tender offer where the company repurchased approximately 10 % of its outstanding shares in april 2018. critical accounting policies the preparation of financial statements and related disclosures in conformity with u.s. generally accepted accounting principles requires the company 's management to make estimates , judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes . the company 's significant accounting policies are included in note 1 to the consolidated financial statements contained in this annual report on form 10-k under item 8 , “ financial statements and supplementary data . ” these policies , along with the underlying assumptions and judgments made by the company 's management in their application , have a significant impact on the company 's consolidated financial statements . the company identifies its most critical accounting policies as those that are the most pervasive and important to the portrayal of the company 's financial position and results of operations , and that require the most difficult , subjective and or complex judgments by
| financial condition and liquidity cash provided by ( used in ) operating activities was $ 8.5 million , $ ( 0.3 ) million , and $ 9.2 million in 2019 , 2018 , and 2017 , respectively . in 2019 , net income was $ 4.1 million , while other non-cash adjustments , primarily consisting of depreciation and amortization expense , equity-based compensation , deferred income taxes , and deferred compensation totaled $ 4.3 million . in 2018 and 2017 , net income ( loss ) was $ ( 2.8 ) million and $ 0.8 million , respectively , while the corresponding non-cash adjustments netted to $ 6.3 million and $ 4.5 million , respectively . accounts receivable balances increased $ 3.6 million in 2019 as compared with 2018 , increased $ 8.7 million in 2018 as compared with 2017 , and decreased $ 5.2 million in 2017 as compared with 2016. the increase in the accounts receivable balance in 2019 resulted from an increase in revenue of 6.6 % in the 2019 fourth quarter as compared with the 2018 fourth quarter . in addition , the company 's days sales outstanding ( dso ) increased in 2019 as compared with 2018. dso is calculated by dividing accounts receivable obtained from the consolidated balance sheet by average daily revenue for the fourth quarter of the respective year . dso was 85 days at december 31 , 2019 as compared with dso at december 31 , 2018 of 82 days . dso was 82 days at december 31 , 2018 as compared with dso at december 31 , 2017 of 86 days .
| 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. |
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.
```financial condition and liquidity cash provided by ( used in ) operating activities was $ 8.5 million , $ ( 0.3 ) million , and $ 9.2 million in 2019 , 2018 , and 2017 , respectively . in 2019 , net income was $ 4.1 million , while other non-cash adjustments , primarily consisting of depreciation and amortization expense , equity-based compensation , deferred income taxes , and deferred compensation totaled $ 4.3 million . in 2018 and 2017 , net income ( loss ) was $ ( 2.8 ) million and $ 0.8 million , respectively , while the corresponding non-cash adjustments netted to $ 6.3 million and $ 4.5 million , respectively . accounts receivable balances increased $ 3.6 million in 2019 as compared with 2018 , increased $ 8.7 million in 2018 as compared with 2017 , and decreased $ 5.2 million in 2017 as compared with 2016. the increase in the accounts receivable balance in 2019 resulted from an increase in revenue of 6.6 % in the 2019 fourth quarter as compared with the 2018 fourth quarter . in addition , the company 's days sales outstanding ( dso ) increased in 2019 as compared with 2018. dso is calculated by dividing accounts receivable obtained from the consolidated balance sheet by average daily revenue for the fourth quarter of the respective year . dso was 85 days at december 31 , 2019 as compared with dso at december 31 , 2018 of 82 days . dso was 82 days at december 31 , 2018 as compared with dso at december 31 , 2017 of 86 days .
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Suspicious Activity Report : competition for new engagements and pricing pressure has been strong . throughout 2017 , many of our healthcare clients did not begin new projects when existing projects ended due to their capital constraints . the demand for the company 's information and technology-related solutions business , primarily in our healthcare vertical market in north america improved in 2018 and 2019 as spending increased along with the improving economy . the company operates in one industry segment , providing information and technology-related services to its clients . these services include information and technology-related solutions , including supplemental staffing as a solution . with solutions services , we generally take responsibility for the deliverables and some level of project and staff management , and services may include high-end advisory or business related consulting . when providing staffing services , including managed staffing , staff augmentation , and volume staffing , we typically supply personnel to our clients who then , in turn , take their direction from the clients ' managers . it solutions and it and other staffing revenue as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_8_th the company promotes a majority of its services through five vertical market focus areas : technology service providers , manufacturing , healthcare ( which includes services provided to healthcare providers , health insurers ( payers ) , and life sciences companies ) , financial services , and energy . the remainder of ctg 's revenue is derived from general markets . 19 ctg 's revenue by vertical market as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_9_th the it services industry is extremely competitive and characterized by continuous changes in client requirements and improvements in technologies . our competition varies significantly by geographic region , as well as by the type of service provided . many of our competitors are larger than ctg , and have greater financial , technical , sales , and marketing resources . in addition , the company frequently competes with a client 's own internal it staff . our industry is impacted by the growing use of lower-cost offshore delivery capabilities ( primarily india and other parts of asia ) . there can be no assurance that we will be able to continue to compete successfully with existing or future competitors or that future competition will not have a material adverse effect on our results of operations and financial condition . revenue recognition the company recognizes revenue when control of the promised good or service is transferred to clients , in an amount that reflects the consideration the company expects to be entitled to in exchange for those goods or services . for time-and-material contracts , revenue is recognized as hours are incurred and costs are expended . for contracts with progress billing schedules , primarily monthly , revenue is recognized as services are rendered to the client . revenue for fixed-price contracts is recognized over time using an input-based approach . over time revenue recognition best portrays the company 's performance in transferring control of the goods or services to the client . on most fixed price contracts , revenue recognition is supported through contractual clauses that require the client to pay for work performed to date , including cost plus a reasonable profit margin , for goods or services that have no alternative use to the company . on certain contracts , revenue recognition is supported through contractual clauses that indicate the client controls the asset , or work in process , as the company creates or enhances the asset . on a given project , actual salary and indirect labor costs incurred are measured and compared with the total estimate of costs of such items at the completion of the project . revenue is recognized based upon the percentage-of-completion calculation of total incurred costs to total estimated costs . the company infrequently works on fixed-price projects that include significant amounts of material or other non-labor related costs that could distort the percent complete within a percentage-of-completion calculation . the company 's estimate of the total labor costs it expects to incur over the term of the contract is based on the nature of the project and our experience on similar projects , and includes management judgments and estimates that affect the amount of revenue recognized on fixed-price contracts in any accounting period . losses on fixed-price projects are recorded when identified . the company 's revenue from contracts accounted for under time-and-material , progress billing , and percentage-of-completion methods as a percentage of consolidated revenue for the three years ended december 31 , 2019 , 2018 , and 2017 is as follows : replace_table_token_10_th 20 results of operations the table below sets forth percentage information calculated as a percentage of consolidated revenue as reported on the company 's consolidated statements of operations as included in item 8 , “ financial statements and supplementary data ” in this report . replace_table_token_11_th 2019 as compared with 2018 the company recorded revenue in 2019 and 2018 as follows : replace_table_token_12_th the company 's focus , throughout its operations , is to expand the amount of it solutions services it provides to its clients , as compared with it staffing services , and to become a solutions-centric company . it solutions provide significant value to our clients , and drive higher bill rates and margins for the company . our existing solutions , such as application maintenance and outsourcing , data management and testing , combined with new or expanded solutions through acquisitions , will give the company a broader set of it solutions to provide to its clients . additionally , the company will continue to expand the capabilities of its existing solutions by adding elements such as robotic process automation and artificial intelligence . story_separator_special_tag in the 2017 third quarter , the company recorded a significant increase in fringe benefit costs primarily consisting of medical expense . the increase in medical expense , which totaled approximately $ 1.0 million in direct costs , was due to much higher utilization of the company 's self-insured medical plan during the year . the company also recorded $ 0.4 million of severance charges in the 2017 second quarter . when considering these items , direct costs as a percentage of revenue in 2018 were comparable in 2017. selling , general and administrative ( sg & a ) expenses were 18.5 % of revenue in 2018 as compared with 17.2 % of revenue in 2017. the increase in sg & a expenses as a percentage of revenue in 2018 as compared with 2017 was primarily due to costs incurred by our operating units as the company continued to make investments in sales , recruiting and delivery resources in order to focus on the company 's long-term growth . additionally , sg & a in 2018 includes acquisition-related costs , including the amortization of intangible assets associated with the acquisition of soft company , totaling $ 2.0 million , and $ 0.7 million in severance . operating income was 0.6 % of revenue in 2018 as compared with 1.4 % of revenue in 2017. the operating loss from the north american operations was $ 2.4 million in 2018 compared with $ 0.1 million in 2017. the 2018 loss was impacted by investments in business development , recruiting , and marketing of nearly $ 3.5 million , some of which have yet to generate revenue and profits . additionally , the company recorded $ 2.0 million in acquisition related costs , and $ 0.7 million in severance . operating income in 2017 was reduced by a total of $ 2.0 million from unusually high utilization of the company 's self-insured medical plan , and severance . 24 operating income from our european operations was $ 5.3 million in 2018 compared with $ 4.0 million in 2017 . the increase in operating income in 2018 compared with 2017 wa s primarily due to strong demand for the company 's services in the european markets we serve , and the acquisition of soft company completed in february 2018. other income ( expense ) was 0.1 % of revenue in 2018 and 0.0 % of revenue in 2017. in 2018 and 2017 , the company recorded a non-taxable life insurance gain of approximately $ 0.8 and $ 0.4 million , respectively , as one of its former executives passed away in each year . the company 's effective tax rate ( etr ) is calculated based upon the full year 's operating results and various tax related items . the etr in 2018 was 224.2 % , while the 2017 etr was 80.1 % . the etr was high in 2018 primarily due to the company recording a valuation allowance for its deferred tax assets in the u.s. totaling $ 3.8 million as the company has recurring pre-tax losses in recent years and uncertainty as to income in future years . the company also incurred approximately $ 0.7 million of tax associated with the gilti provisions of the 2017 tax cut and jobs act , and $ 0.3 million of tax from non-deductible acquisition-related costs in our foreign operations . these items , which caused additional tax expense , were offset by a non-taxable life insurance gain , the reversal of the valuation for deferred tax assets in the united kingdom , the tax cut and jobs act which reduced the u.s. federal corporate tax rate to 21 % , and tax benefits for the work opportunity tax credit ( wotc ) and research and development tax credit ( r & d ) . the etr was high in 2017 primarily due to the effects of the tax cuts & jobs act which resulted in the company reducing its u.s. deferred tax assets by $ 1.7 million , and the adoption of asu 2016-09 , “ improvements to employee share-based payment accounting , ” which required the company to record additional tax expense of $ 0.3 million for shortfalls that would previously have been recorded to capital in excess of par value on the company 's consolidated balance sheet . this additional tax expense was partially offset by tax benefits for the work opportunity tax credit ( wotc ) and research and development tax credit ( r & d ) . net loss for 2018 was ( 0.8 ) % of revenue or $ ( 0.20 ) per diluted share , compared with net income of 0.3 % of revenue or $ 0.05 per diluted share in 2017. diluted earnings per share were calculated using 13.8 million weighted-average equivalent shares outstanding in 2018 and 15.3 million in 2017. the decrease in shares year-over-year was due to the company 's dutch auction tender offer where the company repurchased approximately 10 % of its outstanding shares in april 2018. critical accounting policies the preparation of financial statements and related disclosures in conformity with u.s. generally accepted accounting principles requires the company 's management to make estimates , judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes . the company 's significant accounting policies are included in note 1 to the consolidated financial statements contained in this annual report on form 10-k under item 8 , “ financial statements and supplementary data . ” these policies , along with the underlying assumptions and judgments made by the company 's management in their application , have a significant impact on the company 's consolidated financial statements . the company identifies its most critical accounting policies as those that are the most pervasive and important to the portrayal of the company 's financial position and results of operations , and that require the most difficult , subjective and or complex judgments by
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1,026 | the second group is made up of geokinetics , global geophysical services , inc. , or global geophysical , tesla exploration , ltd. , or tesla , breckenridge geophysical inc. , or breckenridge , paragon geophysical services , inc. , or paragon , lonestar geophysical surveys , or lonestar , and smaller companies which generally run one or two seismic crews and often specialize in specific regions or types of operations . 18 we provide our seismic data acquisition services primarily to onshore oil and natural gas exploration and development companies for use in the onshore drilling and production of oil and natural gas in the continental united states and canada . the main factors influencing demand for seismic data acquisition services in our industry are the level of drilling activity by oil and natural gas companies and the sizes of such companies ' exploration and development budgets , which , in turn , depend largely on current and anticipated future crude oil and natural gas prices and depletion rates . our customers are major and independent oil and natural gas exploration and development companies . the services we provide to our customers vary according to the size and needs of each customer . our services are marketed by supervisory and executive personnel who contact customers to determine their needs and respond to customer inquiries regarding the availability of crews . contacts are based principally upon professional relationships developed over a number of years . the acquisition of seismic data for the oil and natural gas industry is a highly competitive business . contracts for such services generally are awarded on the basis of price quotations , crew experience , and the availability of crews to perform in a timely manner , although factors other than price , such as crew safety , performance history , and technological and operational expertise , are often determinative . our competition includes publicly traded competitors , such as cgg ( which recently sold its north american onshore seismic contract acquisition business to geokinetics ) and sae . our other major competitors include geokinetics , global geophysical , tesla , breckenridge , paragon and lonestar . in addition to these previously named companies , we also compete for projects from time to time with smaller seismic companies which operate in local markets with only one or two crews . results of operations year ended december 31 , 2014 , compared to year ended december 31 , 2013 revenues . our revenues were $ 118,847,754 for the year ended december 31 , 2014 , compared to $ 134,534,540 for the same period of 2013 , a decrease of 11.7 % . this decrease was primarily due to the softening in the seismic market that began in early 2013 , our operation of fewer crews in the united states and canada during the twelve months ended december 31 , 2014 compared to the same period of 2013 , and the adverse winter weather conditions in parts of the united states and canada during the first quarter of 2014. we operated four crews in the united states during the first and second quarters of 2014 , added one crew during the third quarter ended september 30 , 2014 , and idled two crews during the fourth quarter , ending the quarter with three crews in the united states for the quarter ended december 31 , 2014. in canada , we operated six crews for most of this year 's first quarter and ended the first quarter with four crews . by late-april , all canadian crews had been shut down following the end of the winter season . we added one crew in canada in the beginning of june for summer work , but that crew worked intermittently during the third quarter . during the fourth quarter we added crews in canada for the winter season , ending the quarter with five crews . this compares with our operation of nine crews in the united states and six crews in canada during the first quarter of 2013. we began the second quarter of 2013 with eight crews operating in the united states and ended the quarter with two crews , and began the third quarter of 2013 with three crews operating in the united states and ended the quarter with five crews . in canada , we began the second quarter of 2013 operating six crews and ended the quarter operating two crews . in the third quarter of 2013 , we operated three crews in canada for short term work at the beginning of the quarter but had no crews operating in canada by the end of the quarter . we started and ended the fourth quarter of 2013 operating three crews in canada . cost of services . our cost of services was $ 101,582,377 for the year ended december 31 , 2014 , compared to $ 107,675,356 for the same period of 2013 , a decrease of 5.7 % . as a percentage of revenues , cost of services was 85.5 % for the year ended december 31 , 2014 , compared to 80.0 % for the same period of 2013. this decrease in cost of services was primarily attributable to our operation of fewer crews in the united states and canada as discussed above . the decrease was partially offset by costs incurred due to adverse winter weather conditions in parts of the united states and canada during the first quarter of this year and an increase in shot-hole work , which carries higher costs and lower margins than vibroseis work , in the united states during the third quarter . selling , general , and administrative expenses . sg & a expenses were $ 11,660,137 for the year ended december 31 , 2014 , compared to $ 9,593,068 for the same period of 2013 , an increase of 21.5 % . story_separator_special_tag 24 business combinations we allocate the purchase price of acquired companies to the tangible assets acquired , liabilities assumed , and intangible assets acquired , based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions . allowance for doubtful accounts we prepare our allowance for doubtful accounts receivable based on our past experience of historical write-offs , our current customer base , and our review of past due accounts . the inherent volatility of the energy industry 's business cycle can cause swift and unpredictable changes in the financial stability of our customers . in 2014 , an allowance of $ 557,867 was deemed necessary . in 2013 , and 2012 , no allowances were necessary . impairment of long-lived assets we review long-lived assets for impairment when triggering events occur suggesting deterioration in the assets ' recoverability or fair value . recognition of an impairment charge is required if future expected net cash flows are insufficient to recover the carrying value of the asset . our forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and profitability based on our historical results and analysis of future oil and natural gas prices which are fundamental to assessing demand for our services . if we are unable to achieve these cash flows , our estimates will be revised which could result in an impairment charge for the period of revision . depreciable lives of property , plant , and equipment our property , plant , and equipment are capitalized at historical cost and depreciated over the useful life of the asset . our estimate of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset . the technology of the equipment used to gather data in the seismic industry has historically evolved such that obsolescence does not occur quickly . as circumstances change and new information becomes available , these estimates could change . we amortize these capitalized items using the straight-line method . capital assets are depreciated over their useful lives ranging from one to seven years , depending on the classification of the asset . tax accounting we account for our income taxes in accordance with the recognition of amounts of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns . we determine deferred taxes by identifying the types and amounts of existing temporary differences , measuring the total deferred tax asset or liability using the applicable tax rate , and reducing the deferred tax asset by a valuation allowance if , based on available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . our methodology for recording income taxes requires judgment regarding assumptions and the use of estimates , including determining our annual effective tax rate and the valuation of deferred tax assets , which can create a variance between actual results and estimates and could have a material impact on our provision or benefit for income taxes . share-based compensation we recognize the fair value of the stock-based compensation awards , including stock options and restricted stock , as wages in the consolidated statements of earnings on a straight-line basis over the vesting period of the related stock options or restricted stock awards . this has resulted in the recognition of compensation expense , relative to stock-based awards , in wages in the consolidated statements of earnings of approximately $ 689,000 or approximately $ 0.09 per share for the year ended december 31 , 2014 , and $ 973,000 or approximately $ 0.13 per share for the year ended december 31 , 2013 . 25 shares of restricted stock were issued to employees of the company under the 2006 stock awards plan as follows : 6,000 in august of 2007 ; 3,333 in june of 2008 ; 1,666 in july of 2009 ; 1,666 in may of 2010 ; 8,443 in november of 2011 ; 7,173 in december of 2011 ; 2,000 in january of 2012 ; 71,041 in august of 2012 ; 2,000 in february of 2013 , and 5,000 shares in january 2014. in june of 2013 , 15,000 shares were rescinded from the august 2012 grant , and 10,000 shares were issued in their place . in addition , stock options were issued to employees of the company under the 2006 stock awards plan as follows : 111,666 in october of 2008 ; 45,000 in november of 2009 ; 5,000 in november of 2011 , and 118,333 in july of 2014. no incentive stock options were granted to employees in 2010 , 2012 , or 2013. as of december 31 , 2014 , there was approximately $ 353,000 of unrecognized compensation expense related to our share-based compensation plan . recently issued accounting pronouncements in july 2013 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) no . 2013-11 , income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( asu 2013-11 ) . asu 2013-11 clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific u.s. generally accepted accounting principles ( u.s . gaap ) . asu 2013-11 is applicable to all entities that have an unrecognized
| cash flows used in financing activities . net cash used in financing activities was $ 13,039,683 for the year ended december 31 , 2014 , and $ 14,996,672 for the year ended december 31 , 2013. the $ 1,956,989 decrease was due primarily to a decrease in principal payments on notes payable of $ 1,684,600 and $ 533,286 in principal payments on capital lease obligations . capital expenditures . during the year ended december 31 , 2014 , we acquired $ 7,954,973 of vehicles and equipment including the purchase in september 2014 of a 10,500-channel inova hawk seismic data acquisition system and replacing and purchasing additional vehicles and equipment . we financed these acquisitions by using a $ 6,096,173 note payable to a commercial bank to finance the inova hawk system disclosed above , $ 1,379,395 of cash on hand and by incurring $ 479,405 in capital lease obligations from a vehicle leasing company . we do not budget for our capital expenditures . early during the year ended december 31 , 2013 we adopted a maintenance capital expenditures program and incurred capital expenditures of $ 2,474,865 , primarily to maintain existing equipment . during the year ended december 31 , 2012 , capital expenditures of $ 57,107,732 were used to acquire seismic equipment and vehicles , replace similar equipment and vehicles , and to purchase our fourth and fifth gsr systems consisting of a total of 14,200 channels and related equipment , our sixth gsr system with 13,000 channels , our first next-generation 3-channel gsx system with 8,000 stations , and seven new inova vibration vehicles . cash of $ 31,970,418 , notes of $ 22,201,800 from a commercial bank , and capital lease obligations from a vehicle leasing company of $ 2,935,514 were used to finance these acquisitions . this major investment has allowed us to benefit from new technology while primarily remaining in a maintenance capital expenditures policy since 2013. capital resources historically , we have relied on cash generated from operations , short-term borrowings from commercial banks and equipment lenders , and loans from directors to fund our working capital requirements and capital expenditures .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows used in financing activities . net cash used in financing activities was $ 13,039,683 for the year ended december 31 , 2014 , and $ 14,996,672 for the year ended december 31 , 2013. the $ 1,956,989 decrease was due primarily to a decrease in principal payments on notes payable of $ 1,684,600 and $ 533,286 in principal payments on capital lease obligations . capital expenditures . during the year ended december 31 , 2014 , we acquired $ 7,954,973 of vehicles and equipment including the purchase in september 2014 of a 10,500-channel inova hawk seismic data acquisition system and replacing and purchasing additional vehicles and equipment . we financed these acquisitions by using a $ 6,096,173 note payable to a commercial bank to finance the inova hawk system disclosed above , $ 1,379,395 of cash on hand and by incurring $ 479,405 in capital lease obligations from a vehicle leasing company . we do not budget for our capital expenditures . early during the year ended december 31 , 2013 we adopted a maintenance capital expenditures program and incurred capital expenditures of $ 2,474,865 , primarily to maintain existing equipment . during the year ended december 31 , 2012 , capital expenditures of $ 57,107,732 were used to acquire seismic equipment and vehicles , replace similar equipment and vehicles , and to purchase our fourth and fifth gsr systems consisting of a total of 14,200 channels and related equipment , our sixth gsr system with 13,000 channels , our first next-generation 3-channel gsx system with 8,000 stations , and seven new inova vibration vehicles . cash of $ 31,970,418 , notes of $ 22,201,800 from a commercial bank , and capital lease obligations from a vehicle leasing company of $ 2,935,514 were used to finance these acquisitions . this major investment has allowed us to benefit from new technology while primarily remaining in a maintenance capital expenditures policy since 2013. capital resources historically , we have relied on cash generated from operations , short-term borrowings from commercial banks and equipment lenders , and loans from directors to fund our working capital requirements and capital expenditures .
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Suspicious Activity Report : the second group is made up of geokinetics , global geophysical services , inc. , or global geophysical , tesla exploration , ltd. , or tesla , breckenridge geophysical inc. , or breckenridge , paragon geophysical services , inc. , or paragon , lonestar geophysical surveys , or lonestar , and smaller companies which generally run one or two seismic crews and often specialize in specific regions or types of operations . 18 we provide our seismic data acquisition services primarily to onshore oil and natural gas exploration and development companies for use in the onshore drilling and production of oil and natural gas in the continental united states and canada . the main factors influencing demand for seismic data acquisition services in our industry are the level of drilling activity by oil and natural gas companies and the sizes of such companies ' exploration and development budgets , which , in turn , depend largely on current and anticipated future crude oil and natural gas prices and depletion rates . our customers are major and independent oil and natural gas exploration and development companies . the services we provide to our customers vary according to the size and needs of each customer . our services are marketed by supervisory and executive personnel who contact customers to determine their needs and respond to customer inquiries regarding the availability of crews . contacts are based principally upon professional relationships developed over a number of years . the acquisition of seismic data for the oil and natural gas industry is a highly competitive business . contracts for such services generally are awarded on the basis of price quotations , crew experience , and the availability of crews to perform in a timely manner , although factors other than price , such as crew safety , performance history , and technological and operational expertise , are often determinative . our competition includes publicly traded competitors , such as cgg ( which recently sold its north american onshore seismic contract acquisition business to geokinetics ) and sae . our other major competitors include geokinetics , global geophysical , tesla , breckenridge , paragon and lonestar . in addition to these previously named companies , we also compete for projects from time to time with smaller seismic companies which operate in local markets with only one or two crews . results of operations year ended december 31 , 2014 , compared to year ended december 31 , 2013 revenues . our revenues were $ 118,847,754 for the year ended december 31 , 2014 , compared to $ 134,534,540 for the same period of 2013 , a decrease of 11.7 % . this decrease was primarily due to the softening in the seismic market that began in early 2013 , our operation of fewer crews in the united states and canada during the twelve months ended december 31 , 2014 compared to the same period of 2013 , and the adverse winter weather conditions in parts of the united states and canada during the first quarter of 2014. we operated four crews in the united states during the first and second quarters of 2014 , added one crew during the third quarter ended september 30 , 2014 , and idled two crews during the fourth quarter , ending the quarter with three crews in the united states for the quarter ended december 31 , 2014. in canada , we operated six crews for most of this year 's first quarter and ended the first quarter with four crews . by late-april , all canadian crews had been shut down following the end of the winter season . we added one crew in canada in the beginning of june for summer work , but that crew worked intermittently during the third quarter . during the fourth quarter we added crews in canada for the winter season , ending the quarter with five crews . this compares with our operation of nine crews in the united states and six crews in canada during the first quarter of 2013. we began the second quarter of 2013 with eight crews operating in the united states and ended the quarter with two crews , and began the third quarter of 2013 with three crews operating in the united states and ended the quarter with five crews . in canada , we began the second quarter of 2013 operating six crews and ended the quarter operating two crews . in the third quarter of 2013 , we operated three crews in canada for short term work at the beginning of the quarter but had no crews operating in canada by the end of the quarter . we started and ended the fourth quarter of 2013 operating three crews in canada . cost of services . our cost of services was $ 101,582,377 for the year ended december 31 , 2014 , compared to $ 107,675,356 for the same period of 2013 , a decrease of 5.7 % . as a percentage of revenues , cost of services was 85.5 % for the year ended december 31 , 2014 , compared to 80.0 % for the same period of 2013. this decrease in cost of services was primarily attributable to our operation of fewer crews in the united states and canada as discussed above . the decrease was partially offset by costs incurred due to adverse winter weather conditions in parts of the united states and canada during the first quarter of this year and an increase in shot-hole work , which carries higher costs and lower margins than vibroseis work , in the united states during the third quarter . selling , general , and administrative expenses . sg & a expenses were $ 11,660,137 for the year ended december 31 , 2014 , compared to $ 9,593,068 for the same period of 2013 , an increase of 21.5 % . story_separator_special_tag 24 business combinations we allocate the purchase price of acquired companies to the tangible assets acquired , liabilities assumed , and intangible assets acquired , based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions . allowance for doubtful accounts we prepare our allowance for doubtful accounts receivable based on our past experience of historical write-offs , our current customer base , and our review of past due accounts . the inherent volatility of the energy industry 's business cycle can cause swift and unpredictable changes in the financial stability of our customers . in 2014 , an allowance of $ 557,867 was deemed necessary . in 2013 , and 2012 , no allowances were necessary . impairment of long-lived assets we review long-lived assets for impairment when triggering events occur suggesting deterioration in the assets ' recoverability or fair value . recognition of an impairment charge is required if future expected net cash flows are insufficient to recover the carrying value of the asset . our forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and profitability based on our historical results and analysis of future oil and natural gas prices which are fundamental to assessing demand for our services . if we are unable to achieve these cash flows , our estimates will be revised which could result in an impairment charge for the period of revision . depreciable lives of property , plant , and equipment our property , plant , and equipment are capitalized at historical cost and depreciated over the useful life of the asset . our estimate of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset . the technology of the equipment used to gather data in the seismic industry has historically evolved such that obsolescence does not occur quickly . as circumstances change and new information becomes available , these estimates could change . we amortize these capitalized items using the straight-line method . capital assets are depreciated over their useful lives ranging from one to seven years , depending on the classification of the asset . tax accounting we account for our income taxes in accordance with the recognition of amounts of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns . we determine deferred taxes by identifying the types and amounts of existing temporary differences , measuring the total deferred tax asset or liability using the applicable tax rate , and reducing the deferred tax asset by a valuation allowance if , based on available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . our methodology for recording income taxes requires judgment regarding assumptions and the use of estimates , including determining our annual effective tax rate and the valuation of deferred tax assets , which can create a variance between actual results and estimates and could have a material impact on our provision or benefit for income taxes . share-based compensation we recognize the fair value of the stock-based compensation awards , including stock options and restricted stock , as wages in the consolidated statements of earnings on a straight-line basis over the vesting period of the related stock options or restricted stock awards . this has resulted in the recognition of compensation expense , relative to stock-based awards , in wages in the consolidated statements of earnings of approximately $ 689,000 or approximately $ 0.09 per share for the year ended december 31 , 2014 , and $ 973,000 or approximately $ 0.13 per share for the year ended december 31 , 2013 . 25 shares of restricted stock were issued to employees of the company under the 2006 stock awards plan as follows : 6,000 in august of 2007 ; 3,333 in june of 2008 ; 1,666 in july of 2009 ; 1,666 in may of 2010 ; 8,443 in november of 2011 ; 7,173 in december of 2011 ; 2,000 in january of 2012 ; 71,041 in august of 2012 ; 2,000 in february of 2013 , and 5,000 shares in january 2014. in june of 2013 , 15,000 shares were rescinded from the august 2012 grant , and 10,000 shares were issued in their place . in addition , stock options were issued to employees of the company under the 2006 stock awards plan as follows : 111,666 in october of 2008 ; 45,000 in november of 2009 ; 5,000 in november of 2011 , and 118,333 in july of 2014. no incentive stock options were granted to employees in 2010 , 2012 , or 2013. as of december 31 , 2014 , there was approximately $ 353,000 of unrecognized compensation expense related to our share-based compensation plan . recently issued accounting pronouncements in july 2013 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) no . 2013-11 , income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( asu 2013-11 ) . asu 2013-11 clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific u.s. generally accepted accounting principles ( u.s . gaap ) . asu 2013-11 is applicable to all entities that have an unrecognized
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1,027 | we continue to invest in research and development spending , geographic expansion , and new product promotions to drive further revenue and profit growth . our ability to sustain our long-term growth will depend on a number of factors , including our ability to expand our core business ( including geographical expansion ) , develop innovative new products with higher gross profit margins across our business segments , and continue to improve operating efficiency and organizational effectiveness . the healthcare industry continues to face a challenging economic environment . the current economic conditions and other circumstances have resulted in pricing pressures for some of our products . as mentioned above , our biosciences segment continues to be impacted by an uncertain research spending environment and lack of overall demand for instruments and research reagents . in other areas of our u.s. business , healthcare utilization is stable but constrained . additionally , uncertainty in europe due to continued macroeconomic challenges has resulted in constrained healthcare utilization in that region . in addition to the economic conditions in the united states and elsewhere , numerous other factors can affect our ability to achieve our goals including , without limitation , increased competition and healthcare reform initiatives . for example , the u.s. healthcare reform law contains certain tax provisions that will affect bd . the most significant impact is the medical device excise tax , which imposes a 2.3 % tax on certain u.s. sales of medical devices , beginning in january 2013. we currently estimate that our fiscal 2013 excise tax ( impacting only three quarters for fiscal year 2013 ) will be between $ 40 million to $ 50 million and will be recorded in selling and administrative expense . our financial position remains strong , with cash flows from operating activities totaling $ 1.7 billion in 2012. at september 30 , 2012 , we had $ 2.2 billion in cash and equivalents and short-term investments . cash outflows relating to acquisitions included the purchase of kiestra lab automation bv ( kiestra ) , a netherlands-based company that manufactures and sells innovative lab automation solutions for the microbiology lab , for $ 51 million , net of cash acquired . the company also paid $ 52 million , net of cash acquired , for sirigen group limited ( sirigen ) , a developer of unique polymer dyes that are used in flow cytometry . capital expenditures were $ 487 million in 2012 as we continue to invest in capacity across our segments to support future growth . in november 2011 , we issued $ 500 million of 5-year 1.75 % notes and $ 1 billion of 10-year 3.125 % notes , as discussed further below . also , we continued to return value to our shareholders in the form of share repurchases and dividends . during 2012 , we repurchased $ 1.5 billion of our common stock and paid cash dividends of $ 368 million . we face currency exposure each reporting period that arises from translating the results of our worldwide operations to the u.s. dollar at exchange rates that fluctuate from the beginning of such period . we evaluate our results of operations on both an as reported and a foreign currency-neutral basis , which excludes the impact of fluctuations in foreign currency exchange rates . we calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior-period foreign currency exchange rates and comparing these adjusted amounts to our current-period reported results . from time to time , we may purchase forward contracts and options to partially protect against adverse foreign exchange rate movements . gains or losses on our derivative instruments are largely offset by the gains or losses on the underlying hedged transactions . we do not enter into derivative instruments for trading or speculative purposes . for further discussion refer to note 12 to the consolidated financial statements contained in item 8. financial statements and supplementary data . 20 divestiture in april 2012 , we signed a definitive agreement to sell biosciences ' discovery labware unit , excluding its advanced bioprocessing platform . the results of operations associated with this disposal group have been reclassified as discontinued operations for all periods presented in the accompanying consolidated financial statements of income and cash flows and related disclosures . we completed the sale on october 31 , 2012. gross proceeds from the sale were approximately $ 728 million , subject to post-closing adjustments , and we expect to record a gain on the sale within discontinued operations in the first quarter of fiscal year 2013. see note 10 in the notes to consolidated financial statements for additional discussion . results of continuing operations comparisons of income from continuing operations between 2012 and 2011 are affected by the following items that are reflected in our financial results : during the fourth quarter of 2012 , we recorded a pre-tax pension settlement charge of $ 20 million , or $ 0.06 diluted earnings per share from continuing operations , primarily associated with a non-cash charge due to lump sum benefit payments made from bd 's u.s. supplemental pension plan . the charge also included settlement losses associated with certain foreign pension plans . for further discussion refer to note 8 to the consolidated financial statements contained in item 8. financial statements and supplementary data . during the fourth quarter of 2011 , we recorded a pre-tax , non-cash charge of $ 9 million , or $ 0.03 diluted earnings per share from continuing operations , resulting from the discontinuance of a research program within the diagnostic systems unit . medical segment medical revenues in 2012 of $ 4.1 billion increased 2.1 % over 2011 , which reflected an estimated impact of unfavorable foreign currency translation of 3.0 % . the following is a summary of medical revenues by organizational unit : replace_table_token_6_th * amounts may not add due to rounding . story_separator_special_tag capital expenditures were $ 487 million in 2012 , compared with $ 509 million in 2011. capital spending for the medical , diagnostics and biosciences segments in 2012 was $ 363 million , $ 101 million and $ 14 million , respectively , and related primarily to manufacturing capacity expansions . 25 acquisitions of businesses cash outflows relating to acquisitions of $ 103 million in 2012 were comprised of $ 51 million relating to the kiestra acquisition and $ 52 million associated with the acquisition of sirigen . acquisitions of businesses of $ 492 million in 2011 were comprised of $ 287 million associated with carmel and $ 205 million relating to accuri . for further discussion , refer to note 9 in the notes to consolidated financial statements contained in item 8 , financial statements and supplementary data . on june 29 , 2012 , the company entered into a definitive agreement to acquire safety syringes , inc. , a privately held california-based company that specializes in the development of anti-needlestick devices for prefilled syringes . the acquisition , which is subject to the satisfaction of customary closing conditions , including regulatory approvals , is expected to close by the end of the company 's first fiscal quarter of 2013. net cash flows from continuing financing activities debt issuances and payments of obligations on november 3 , 2011 , we issued $ 500 million of 5-year 1.75 % notes and $ 1 billion of 10-year 3.125 % notes . short-term debt increased to 9.7 % of total debt at the end of 2012 , from 8.6 % at the end of 2011. floating rate debt was 9.7 % of total debt at the end of 2012 and 16 % at the end of 2011. our weighted average cost of total debt at the end of 2012 was 3.7 % , down from 4.9 % at the end of 2011. debt-to-capitalization ( ratio of total debt to the sum of total debt , shareholders ' equity and net non-current deferred income tax liabilities ) at september 30 , 2012 was 49.7 % compared with 35.8 % at september 30 , 2011. repurchase of common stock we repurchased approximately 19.9 million shares of our common stock for $ 1.5 billion in 2012 and 18.4 million shares for $ 1.5 billion in 2011. a total of approximately 8.2 million common shares remain available for purchase at september 30 , 2012 under the board of directors ' july 2011 repurchase authorization . we plan on share repurchases of approximately $ 500 million in 2013 , subject to market conditions . cash and short-term investments at september 30 , 2012 , total worldwide cash and short-term investments were $ 2.18 billion , of which $ 1.75 billion was held in jurisdictions outside of the united states . we regularly review the amount of cash and short-term investments held outside the united states and currently intend to use most of such amounts to fund our international operations and their growth initiatives . however , if these amounts were moved out of these jurisdictions or repatriated to the united states , there could be tax consequences . government receivables accounts receivable balances include sales to government-owned or government-supported healthcare facilities in several countries , which are subject to delays . payment is dependent upon the financial stability and creditworthiness of those countries ' national economies . deteriorating credit and economic conditions in parts of western europe , particularly in italy and spain , may continue to increase the average length of time it takes us to collect our accounts receivable in certain regions within these countries . outstanding governmental receivable balances , net of reserves , in italy and spain at september 30 , 2012 were $ 71 million and $ 43 million , respectively . we continually evaluate all governmental receivables for potential collection risks associated with the availability of government funding and reimbursement practices . we believe the current reserves related to all governmental receivables are adequate and that this concentration of credit risk will not have a material adverse impact on our financial position or liquidity . credit facilities we have in place a commercial paper borrowing program that is available to meet our short-term financing needs , including working capital requirements . borrowings outstanding under this program were $ 200 million at 26 september 30 , 2012. during the third quarter , we established a $ 1 billion syndicated credit facility with an expiration date of may 2017 , replacing a $ 1 billion facility due to expire in december 2012. this new credit facility , under which there were no borrowings outstanding at september 30 , 2012 , provides backup support for our commercial paper program and can also be used for other general corporate purposes . it includes a provision that enables bd , subject to additional commitments made by the lenders , to access up to an additional $ 500 million in financing through the facility , for a maximum aggregate commitment of $ 1.5 billion . the credit facility includes a single financial covenant that requires bd to maintain an interest expense coverage ratio ( ratio of earnings before income taxes , depreciation and amortization to interest expense ) of not less than 5-to-1 for the most recent four consecutive fiscal quarters . on the last eight measurement dates , this ratio has ranged from 13-to-1 to 26-to-1 . in addition , we have informal lines of credit outside the united states . access to capital and credit ratings our ability to generate cash flow from operations , issue debt , enter into other financing arrangements and attract long-term capital on acceptable terms could be adversely affected in the event there was a material decline in the demand for our products , deterioration in our key financial ratios or credit ratings , or other significantly unfavorable changes in conditions . bd 's credit ratings at september 30 ,
| senior unsecured debt a+ a2 commercial paper a-1+ p-1 outlook stable under review for downgrade on october 3 , 2012 , moody 's downgraded bd 's senior unsecured debt rating to a3 and lowered its commercial paper rating to prime-2 , while changing its outlook to stable . while further deterioration in our credit ratings would increase the costs associated with maintaining and borrowing under our existing credit arrangements , such a downgrade would not affect our ability to draw on these credit facilities , nor would it result in an acceleration of the scheduled maturities of any outstanding debt . we believe that given our debt ratings , our conservative financial management policies , our ability to generate cash flow and the non-cyclical , geographically diversified nature of our businesses , we would have access to additional short-term and long-term capital should the need arise . contractual obligations in the normal course of business , we enter into contracts and commitments that obligate us to make payments in the future . the table below sets forth bd 's significant contractual obligations and related scheduled payments : replace_table_token_8_th ( a ) long-term debt obligations include expected principal and interest obligations . 27 ( b ) purchase obligations are for purchases made in the normal course of business to meet operational and capital requirements . ( c ) unrecognized tax benefits at september 30 , 2012 of $ 123 million were all long-term in nature . due to the uncertainty related to the timing of the reversal of these tax positions , the related liability has been excluded from the table . ( d ) required funding obligations for 2013 relating to pension and other postretirement benefit plans are not expected to be material . in october 2012 , a discretionary cash contribution of $ 100 million was made to the u.s. pension plan .
| 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. |
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.
```senior unsecured debt a+ a2 commercial paper a-1+ p-1 outlook stable under review for downgrade on october 3 , 2012 , moody 's downgraded bd 's senior unsecured debt rating to a3 and lowered its commercial paper rating to prime-2 , while changing its outlook to stable . while further deterioration in our credit ratings would increase the costs associated with maintaining and borrowing under our existing credit arrangements , such a downgrade would not affect our ability to draw on these credit facilities , nor would it result in an acceleration of the scheduled maturities of any outstanding debt . we believe that given our debt ratings , our conservative financial management policies , our ability to generate cash flow and the non-cyclical , geographically diversified nature of our businesses , we would have access to additional short-term and long-term capital should the need arise . contractual obligations in the normal course of business , we enter into contracts and commitments that obligate us to make payments in the future . the table below sets forth bd 's significant contractual obligations and related scheduled payments : replace_table_token_8_th ( a ) long-term debt obligations include expected principal and interest obligations . 27 ( b ) purchase obligations are for purchases made in the normal course of business to meet operational and capital requirements . ( c ) unrecognized tax benefits at september 30 , 2012 of $ 123 million were all long-term in nature . due to the uncertainty related to the timing of the reversal of these tax positions , the related liability has been excluded from the table . ( d ) required funding obligations for 2013 relating to pension and other postretirement benefit plans are not expected to be material . in october 2012 , a discretionary cash contribution of $ 100 million was made to the u.s. pension plan .
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Suspicious Activity Report : we continue to invest in research and development spending , geographic expansion , and new product promotions to drive further revenue and profit growth . our ability to sustain our long-term growth will depend on a number of factors , including our ability to expand our core business ( including geographical expansion ) , develop innovative new products with higher gross profit margins across our business segments , and continue to improve operating efficiency and organizational effectiveness . the healthcare industry continues to face a challenging economic environment . the current economic conditions and other circumstances have resulted in pricing pressures for some of our products . as mentioned above , our biosciences segment continues to be impacted by an uncertain research spending environment and lack of overall demand for instruments and research reagents . in other areas of our u.s. business , healthcare utilization is stable but constrained . additionally , uncertainty in europe due to continued macroeconomic challenges has resulted in constrained healthcare utilization in that region . in addition to the economic conditions in the united states and elsewhere , numerous other factors can affect our ability to achieve our goals including , without limitation , increased competition and healthcare reform initiatives . for example , the u.s. healthcare reform law contains certain tax provisions that will affect bd . the most significant impact is the medical device excise tax , which imposes a 2.3 % tax on certain u.s. sales of medical devices , beginning in january 2013. we currently estimate that our fiscal 2013 excise tax ( impacting only three quarters for fiscal year 2013 ) will be between $ 40 million to $ 50 million and will be recorded in selling and administrative expense . our financial position remains strong , with cash flows from operating activities totaling $ 1.7 billion in 2012. at september 30 , 2012 , we had $ 2.2 billion in cash and equivalents and short-term investments . cash outflows relating to acquisitions included the purchase of kiestra lab automation bv ( kiestra ) , a netherlands-based company that manufactures and sells innovative lab automation solutions for the microbiology lab , for $ 51 million , net of cash acquired . the company also paid $ 52 million , net of cash acquired , for sirigen group limited ( sirigen ) , a developer of unique polymer dyes that are used in flow cytometry . capital expenditures were $ 487 million in 2012 as we continue to invest in capacity across our segments to support future growth . in november 2011 , we issued $ 500 million of 5-year 1.75 % notes and $ 1 billion of 10-year 3.125 % notes , as discussed further below . also , we continued to return value to our shareholders in the form of share repurchases and dividends . during 2012 , we repurchased $ 1.5 billion of our common stock and paid cash dividends of $ 368 million . we face currency exposure each reporting period that arises from translating the results of our worldwide operations to the u.s. dollar at exchange rates that fluctuate from the beginning of such period . we evaluate our results of operations on both an as reported and a foreign currency-neutral basis , which excludes the impact of fluctuations in foreign currency exchange rates . we calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior-period foreign currency exchange rates and comparing these adjusted amounts to our current-period reported results . from time to time , we may purchase forward contracts and options to partially protect against adverse foreign exchange rate movements . gains or losses on our derivative instruments are largely offset by the gains or losses on the underlying hedged transactions . we do not enter into derivative instruments for trading or speculative purposes . for further discussion refer to note 12 to the consolidated financial statements contained in item 8. financial statements and supplementary data . 20 divestiture in april 2012 , we signed a definitive agreement to sell biosciences ' discovery labware unit , excluding its advanced bioprocessing platform . the results of operations associated with this disposal group have been reclassified as discontinued operations for all periods presented in the accompanying consolidated financial statements of income and cash flows and related disclosures . we completed the sale on october 31 , 2012. gross proceeds from the sale were approximately $ 728 million , subject to post-closing adjustments , and we expect to record a gain on the sale within discontinued operations in the first quarter of fiscal year 2013. see note 10 in the notes to consolidated financial statements for additional discussion . results of continuing operations comparisons of income from continuing operations between 2012 and 2011 are affected by the following items that are reflected in our financial results : during the fourth quarter of 2012 , we recorded a pre-tax pension settlement charge of $ 20 million , or $ 0.06 diluted earnings per share from continuing operations , primarily associated with a non-cash charge due to lump sum benefit payments made from bd 's u.s. supplemental pension plan . the charge also included settlement losses associated with certain foreign pension plans . for further discussion refer to note 8 to the consolidated financial statements contained in item 8. financial statements and supplementary data . during the fourth quarter of 2011 , we recorded a pre-tax , non-cash charge of $ 9 million , or $ 0.03 diluted earnings per share from continuing operations , resulting from the discontinuance of a research program within the diagnostic systems unit . medical segment medical revenues in 2012 of $ 4.1 billion increased 2.1 % over 2011 , which reflected an estimated impact of unfavorable foreign currency translation of 3.0 % . the following is a summary of medical revenues by organizational unit : replace_table_token_6_th * amounts may not add due to rounding . story_separator_special_tag capital expenditures were $ 487 million in 2012 , compared with $ 509 million in 2011. capital spending for the medical , diagnostics and biosciences segments in 2012 was $ 363 million , $ 101 million and $ 14 million , respectively , and related primarily to manufacturing capacity expansions . 25 acquisitions of businesses cash outflows relating to acquisitions of $ 103 million in 2012 were comprised of $ 51 million relating to the kiestra acquisition and $ 52 million associated with the acquisition of sirigen . acquisitions of businesses of $ 492 million in 2011 were comprised of $ 287 million associated with carmel and $ 205 million relating to accuri . for further discussion , refer to note 9 in the notes to consolidated financial statements contained in item 8 , financial statements and supplementary data . on june 29 , 2012 , the company entered into a definitive agreement to acquire safety syringes , inc. , a privately held california-based company that specializes in the development of anti-needlestick devices for prefilled syringes . the acquisition , which is subject to the satisfaction of customary closing conditions , including regulatory approvals , is expected to close by the end of the company 's first fiscal quarter of 2013. net cash flows from continuing financing activities debt issuances and payments of obligations on november 3 , 2011 , we issued $ 500 million of 5-year 1.75 % notes and $ 1 billion of 10-year 3.125 % notes . short-term debt increased to 9.7 % of total debt at the end of 2012 , from 8.6 % at the end of 2011. floating rate debt was 9.7 % of total debt at the end of 2012 and 16 % at the end of 2011. our weighted average cost of total debt at the end of 2012 was 3.7 % , down from 4.9 % at the end of 2011. debt-to-capitalization ( ratio of total debt to the sum of total debt , shareholders ' equity and net non-current deferred income tax liabilities ) at september 30 , 2012 was 49.7 % compared with 35.8 % at september 30 , 2011. repurchase of common stock we repurchased approximately 19.9 million shares of our common stock for $ 1.5 billion in 2012 and 18.4 million shares for $ 1.5 billion in 2011. a total of approximately 8.2 million common shares remain available for purchase at september 30 , 2012 under the board of directors ' july 2011 repurchase authorization . we plan on share repurchases of approximately $ 500 million in 2013 , subject to market conditions . cash and short-term investments at september 30 , 2012 , total worldwide cash and short-term investments were $ 2.18 billion , of which $ 1.75 billion was held in jurisdictions outside of the united states . we regularly review the amount of cash and short-term investments held outside the united states and currently intend to use most of such amounts to fund our international operations and their growth initiatives . however , if these amounts were moved out of these jurisdictions or repatriated to the united states , there could be tax consequences . government receivables accounts receivable balances include sales to government-owned or government-supported healthcare facilities in several countries , which are subject to delays . payment is dependent upon the financial stability and creditworthiness of those countries ' national economies . deteriorating credit and economic conditions in parts of western europe , particularly in italy and spain , may continue to increase the average length of time it takes us to collect our accounts receivable in certain regions within these countries . outstanding governmental receivable balances , net of reserves , in italy and spain at september 30 , 2012 were $ 71 million and $ 43 million , respectively . we continually evaluate all governmental receivables for potential collection risks associated with the availability of government funding and reimbursement practices . we believe the current reserves related to all governmental receivables are adequate and that this concentration of credit risk will not have a material adverse impact on our financial position or liquidity . credit facilities we have in place a commercial paper borrowing program that is available to meet our short-term financing needs , including working capital requirements . borrowings outstanding under this program were $ 200 million at 26 september 30 , 2012. during the third quarter , we established a $ 1 billion syndicated credit facility with an expiration date of may 2017 , replacing a $ 1 billion facility due to expire in december 2012. this new credit facility , under which there were no borrowings outstanding at september 30 , 2012 , provides backup support for our commercial paper program and can also be used for other general corporate purposes . it includes a provision that enables bd , subject to additional commitments made by the lenders , to access up to an additional $ 500 million in financing through the facility , for a maximum aggregate commitment of $ 1.5 billion . the credit facility includes a single financial covenant that requires bd to maintain an interest expense coverage ratio ( ratio of earnings before income taxes , depreciation and amortization to interest expense ) of not less than 5-to-1 for the most recent four consecutive fiscal quarters . on the last eight measurement dates , this ratio has ranged from 13-to-1 to 26-to-1 . in addition , we have informal lines of credit outside the united states . access to capital and credit ratings our ability to generate cash flow from operations , issue debt , enter into other financing arrangements and attract long-term capital on acceptable terms could be adversely affected in the event there was a material decline in the demand for our products , deterioration in our key financial ratios or credit ratings , or other significantly unfavorable changes in conditions . bd 's credit ratings at september 30 ,
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1,028 | this includes companies that are much larger than we are and smaller companies 35 that focus on a particular niche . although we believe we are well-positioned in each of our key end markets and seek to differentiate ourselves from our competitors , competition remains intense and profitably growing our revenues has been challenging . for example revenue from our cps segment in 2017 increased $ 49.9 million , or 3.6 % from 2016 , resulting in an increase in gross profit of $ 5.5 million in 2017. this increase in gross profit is significantly below our expectations based on the contribution margin of this segment . we believe this segment is capable of delivering much higher gross margins . we continue to address these challenges on both a short-term and long-term basis . a small number of customers have historically generated a significant portion of our net sales . sales to our ten largest customers typically represent approximately 50 % of our net sales . two customers represented 10 % or more of the company 's net sales in 2017 , one customer represented 10 % or more of the company 's net sales in 2016 and no customer represented 10 % or more of the company 's net sales in 2015. we typically generate about 80 % of our net sales from products manufactured in our foreign operations . the concentration of foreign operations has resulted primarily from a desire on the part of many of our customers to manufacture in lower cost locations in regions such as asia , latin america and eastern europe . historically , we have had substantial recurring sales to existing customers . we typically enter into supply agreements with our major oem customers . these agreements generally have terms ranging from three to five years and cover the manufacture of a range of products . under these agreements , a customer typically agrees to purchase its requirements for specific products in particular geographic areas from us . however , these agreements generally do not obligate the customer to purchase minimum quantities of products , which can have the effect of reducing revenue and profitability . in addition , some customer contracts contain cost reduction objectives , which can have the effect of reducing revenue from such customers . 36 critical accounting policies and estimates management 's discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states . we review the accounting policies used in reporting our financial results on a regular basis . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , net sales and expenses and related disclosure of contingent liabilities . on an ongoing basis , we evaluate the process used to develop estimates for certain reserves and contingent liabilities , including those related to product returns , accounts receivable , inventories , income taxes , warranty obligations , environmental matters , contingencies and litigation . we base our estimates on historical experience and various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . our actual results may differ materially from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used by us in preparing our consolidated financial statements : accounts receivable and other related allowances— we estimate uncollectible accounts , product returns and other adjustments related to current period net sales to establish valuation allowances . in making these estimates , we analyze the creditworthiness of our customers , past experience , specific facts and circumstances , and the overall economic climate in the industries we serve . if actual uncollectible accounts , product returns or other adjustments differ significantly from our estimates , the amount of sales or operating expenses we report could be affected . the ultimate realization of our accounts receivable is a significant credit risk . this risk is mitigated by ( i ) making a significant portion of sales to financially sound companies , ( ii ) ongoing credit evaluation of our customers , ( iii ) frequent contact with our customers , especially our most significant customers , which enables us to monitor changes in their business operations and to respond accordingly and ( iv ) obtaining , in certain cases , a guaranty from a customer 's parent entity when our customer is not the ultimate parent entity or a letter of credit from the customer 's bank . to establish our allowance for doubtful accounts , we evaluate credit risk related to specific customers based on their financial condition and the current economic environment ; however , we are not able to predict with absolute certainty whether our customers will become unable to meet their financial obligations to us . we believe the allowances we have established are adequate under the circumstances ; however , a change in the economic environment or a customer 's financial condition could cause our estimates of allowances , and consequently the provision for doubtful accounts , to change , which could have a significant adverse impact on our financial position and or results of operations . our allowance for product returns and other adjustments is primarily established using historical data . inventories— we state inventories at the lower of cost ( first-in , first-out method ) or market value . cost includes raw materials , labor and manufacturing overhead . we regularly evaluate the carrying value of our inventories and make provisions to reduce excess and obsolete inventories to their estimated net realizable values . story_separator_special_tag the tax provisions for 2016 and 2015 were lower than the amounts expected if the federal statutory tax rate of 35 % was applied primarily due to releases of our deferred tax assets valuation allowance of $ 96.2 million and $ 288.7 million , respectively , as discussed further below . a valuation allowance is established or maintained when , based on currently available information and other factors , it is more likely than not that all or a portion of the deferred tax assets will not be realized . we regularly assess our valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis . we consider all available positive and negative evidence , including future reversals of temporary differences , projected future taxable income , tax planning strategies and recent financial results . significant judgment is required in assessing our ability to generate revenue , gross profit , operating income and jurisdictional taxable income in future periods . prior to 2012 , based on negative evidence ( primarily a cumulative history of operating losses ) , we had a full valuation allowance against our net deferred tax assets in the u.s. and certain foreign jurisdictions . from 2012 through 2016 , we have released a portion of our u.s. valuation allowances each year in recognition of our improved historical earnings and increasing future projected earnings . as of october 1 , 2016 , we had released all of our u.s. federal valuation allowance . story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; `` > $ 2.9 million , consisting of redemption premiums of $ 5.3 million and a write-off of unamortized debt issuance costs of $ 1.4 million , partially offset by a $ 3.8 million credit for the fair value hedge adjustment related to the extinguished 2019 notes . short-term debt revolving credit facility . during the third quarter of 2015 , we replaced an asset-backed lending facility ( `` abl `` ) with a $ 375 million cash flow revolver ( `` cash flow revolver `` ) , which may be increased by an additional $ 125 million upon obtaining additional commitments from lenders then party to the cash flow revolver or new lenders . the cash flow revolver expires on may 20 , 2020 , but may be terminated by the lenders as early as march 4 , 2019 if certain conditions exist . we incurred $ 1.8 million of debt issuance costs in connection with this transaction . in addition , $ 1.0 million of unamortized debt issuance costs related to the abl were carried forward and $ 0.8 million of such costs were expensed . accordingly , $ 2.8 million of debt issuance costs are being amortized to interest expense over the life of the cash flow revolver . as of september 30 , 2017 , $ 85.0 million borrowings and $ 13.1 million of letters of credit were outstanding under the cash flow revolver , and $ 276.9 million was available to borrow . short-term borrowing facilities . as of september 30 , 2017 , certain of our foreign subsidiaries had a total of $ 74.1 million of short-term borrowing facilities , under which no borrowings were outstanding . these facilities expire at various dates through the second quarter of 2019. debt covenants our cash flow revolver requires us to comply with certain financial covenants . our debt agreements contain a number of restrictive covenants , including restrictions on incurring additional debt , making investments and other restricted payments , selling assets , paying dividends and redeeming or repurchasing capital stock and debt , subject to certain exceptions . these covenants could constrain our ability to grow our business through acquisition or engage in other transactions which the covenants could otherwise restrict , including refinancing our existing debt . in addition , such agreements include covenants requiring , among other things , that we file quarterly and annual financial statements with the sec , comply with all laws , pay all taxes and maintain casualty insurance . if we are not able to comply with all of these covenants , for any reason , some or all of our outstanding debt could become immediately due and payable and the incurrence of additional debt under our cash flow revolver would not be allowed , any of which could have a material adverse effect on our liquidity and ability to conduct our business . as of september 30 , 2017 , we were in compliance with our covenants . other liquidity matters our board of directors has authorized us to repurchase shares of our common stock , subject to a dollar limitation . the timing of repurchases will depend upon capital needs to support the growth of our business , market conditions and other factors . although stock repurchases are intended to increase stockholder value , purchases of shares reduce our liquidity . we repurchased 4.3 million and 6.8 million shares of our common stock for $ 159.7 million and $ 141.2 million in the open market in 2017 and 2016 , respectively . as of september 30 , 2017 , $ 253.2 million remains available under programs authorized by the board of directors , none of which is subject to an expiration date . in the ordinary course of business , we are or may become party to legal proceedings , claims and other contingencies , including environmental , warranty and employee matters and examinations by government agencies . as of september 30 , 44 2017 , we had accrued liabilities of $ 36.1 million related to such matters . we can not accurately predict the outcome of these matters or the amount or timing of cash flows that may be required to defend ourselves or to settle such matters or that these reserves will be sufficient to fully satisfy our contingent liabilities . as of september 30 , 2017 , we had a liability of $ 107.2 million for uncertain
| liquidity and capital resources replace_table_token_11_th key working capital management measures replace_table_token_12_th ( 1 ) days sales outstanding ( a measure of how quickly we collect our accounts receivable ) , or `` dso '' , is calculated as the ratio of average accounts receivable , net , to average daily net sales for the quarter . 42 ( 2 ) inventory turns ( annualized ) are calculated as the ratio of four times our cost of sales for the quarter to average inventory . ( 3 ) days inventory on hand is calculated as the ratio of average inventory for the quarter to average daily cost of sales for the quarter . ( 4 ) accounts payable days ( a measure of how quickly we pay our suppliers ) , or `` dpo '' , is calculated as the ratio of 365 days to accounts payable turns , in which accounts payable turns is calculated as the ratio of four times our cost of sales for the quarter to average accounts payable . ( 5 ) cash cycle days is calculated as days inventory on hand plus days sales outstanding minus accounts payable days . cash and cash equivalents were $ 406.7 million at september 30 , 2017 and $ 398.3 million at october 1 , 2016 . our cash levels vary during any given period depending on the timing of collections from customers and payments to suppliers , borrowings under credit facilities , repurchases of capital stock and other factors . our working capital was approximately $ 1.0 billion at september 30 , 2017 and october 1 , 2016 . net cash provided by operating activities was $ 251.0 million , $ 390.1 million and $ 174.9 million for 2017 , 2016 and 2015 , respectively . cash flows from operating activities consists of : ( 1 ) net income adjusted to exclude non-cash items such as depreciation and amortization , deferred income taxes and stock-based compensation expense and ( 2 ) changes in net operating assets , which are comprised of accounts receivable , inventories , prepaid expenses and other assets , accounts payable and accrued liabilities .
| 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. |
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 replace_table_token_11_th key working capital management measures replace_table_token_12_th ( 1 ) days sales outstanding ( a measure of how quickly we collect our accounts receivable ) , or `` dso '' , is calculated as the ratio of average accounts receivable , net , to average daily net sales for the quarter . 42 ( 2 ) inventory turns ( annualized ) are calculated as the ratio of four times our cost of sales for the quarter to average inventory . ( 3 ) days inventory on hand is calculated as the ratio of average inventory for the quarter to average daily cost of sales for the quarter . ( 4 ) accounts payable days ( a measure of how quickly we pay our suppliers ) , or `` dpo '' , is calculated as the ratio of 365 days to accounts payable turns , in which accounts payable turns is calculated as the ratio of four times our cost of sales for the quarter to average accounts payable . ( 5 ) cash cycle days is calculated as days inventory on hand plus days sales outstanding minus accounts payable days . cash and cash equivalents were $ 406.7 million at september 30 , 2017 and $ 398.3 million at october 1 , 2016 . our cash levels vary during any given period depending on the timing of collections from customers and payments to suppliers , borrowings under credit facilities , repurchases of capital stock and other factors . our working capital was approximately $ 1.0 billion at september 30 , 2017 and october 1 , 2016 . net cash provided by operating activities was $ 251.0 million , $ 390.1 million and $ 174.9 million for 2017 , 2016 and 2015 , respectively . cash flows from operating activities consists of : ( 1 ) net income adjusted to exclude non-cash items such as depreciation and amortization , deferred income taxes and stock-based compensation expense and ( 2 ) changes in net operating assets , which are comprised of accounts receivable , inventories , prepaid expenses and other assets , accounts payable and accrued liabilities .
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Suspicious Activity Report : this includes companies that are much larger than we are and smaller companies 35 that focus on a particular niche . although we believe we are well-positioned in each of our key end markets and seek to differentiate ourselves from our competitors , competition remains intense and profitably growing our revenues has been challenging . for example revenue from our cps segment in 2017 increased $ 49.9 million , or 3.6 % from 2016 , resulting in an increase in gross profit of $ 5.5 million in 2017. this increase in gross profit is significantly below our expectations based on the contribution margin of this segment . we believe this segment is capable of delivering much higher gross margins . we continue to address these challenges on both a short-term and long-term basis . a small number of customers have historically generated a significant portion of our net sales . sales to our ten largest customers typically represent approximately 50 % of our net sales . two customers represented 10 % or more of the company 's net sales in 2017 , one customer represented 10 % or more of the company 's net sales in 2016 and no customer represented 10 % or more of the company 's net sales in 2015. we typically generate about 80 % of our net sales from products manufactured in our foreign operations . the concentration of foreign operations has resulted primarily from a desire on the part of many of our customers to manufacture in lower cost locations in regions such as asia , latin america and eastern europe . historically , we have had substantial recurring sales to existing customers . we typically enter into supply agreements with our major oem customers . these agreements generally have terms ranging from three to five years and cover the manufacture of a range of products . under these agreements , a customer typically agrees to purchase its requirements for specific products in particular geographic areas from us . however , these agreements generally do not obligate the customer to purchase minimum quantities of products , which can have the effect of reducing revenue and profitability . in addition , some customer contracts contain cost reduction objectives , which can have the effect of reducing revenue from such customers . 36 critical accounting policies and estimates management 's discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states . we review the accounting policies used in reporting our financial results on a regular basis . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , net sales and expenses and related disclosure of contingent liabilities . on an ongoing basis , we evaluate the process used to develop estimates for certain reserves and contingent liabilities , including those related to product returns , accounts receivable , inventories , income taxes , warranty obligations , environmental matters , contingencies and litigation . we base our estimates on historical experience and various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . our actual results may differ materially from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used by us in preparing our consolidated financial statements : accounts receivable and other related allowances— we estimate uncollectible accounts , product returns and other adjustments related to current period net sales to establish valuation allowances . in making these estimates , we analyze the creditworthiness of our customers , past experience , specific facts and circumstances , and the overall economic climate in the industries we serve . if actual uncollectible accounts , product returns or other adjustments differ significantly from our estimates , the amount of sales or operating expenses we report could be affected . the ultimate realization of our accounts receivable is a significant credit risk . this risk is mitigated by ( i ) making a significant portion of sales to financially sound companies , ( ii ) ongoing credit evaluation of our customers , ( iii ) frequent contact with our customers , especially our most significant customers , which enables us to monitor changes in their business operations and to respond accordingly and ( iv ) obtaining , in certain cases , a guaranty from a customer 's parent entity when our customer is not the ultimate parent entity or a letter of credit from the customer 's bank . to establish our allowance for doubtful accounts , we evaluate credit risk related to specific customers based on their financial condition and the current economic environment ; however , we are not able to predict with absolute certainty whether our customers will become unable to meet their financial obligations to us . we believe the allowances we have established are adequate under the circumstances ; however , a change in the economic environment or a customer 's financial condition could cause our estimates of allowances , and consequently the provision for doubtful accounts , to change , which could have a significant adverse impact on our financial position and or results of operations . our allowance for product returns and other adjustments is primarily established using historical data . inventories— we state inventories at the lower of cost ( first-in , first-out method ) or market value . cost includes raw materials , labor and manufacturing overhead . we regularly evaluate the carrying value of our inventories and make provisions to reduce excess and obsolete inventories to their estimated net realizable values . story_separator_special_tag the tax provisions for 2016 and 2015 were lower than the amounts expected if the federal statutory tax rate of 35 % was applied primarily due to releases of our deferred tax assets valuation allowance of $ 96.2 million and $ 288.7 million , respectively , as discussed further below . a valuation allowance is established or maintained when , based on currently available information and other factors , it is more likely than not that all or a portion of the deferred tax assets will not be realized . we regularly assess our valuation allowance against deferred tax assets on a jurisdiction by jurisdiction basis . we consider all available positive and negative evidence , including future reversals of temporary differences , projected future taxable income , tax planning strategies and recent financial results . significant judgment is required in assessing our ability to generate revenue , gross profit , operating income and jurisdictional taxable income in future periods . prior to 2012 , based on negative evidence ( primarily a cumulative history of operating losses ) , we had a full valuation allowance against our net deferred tax assets in the u.s. and certain foreign jurisdictions . from 2012 through 2016 , we have released a portion of our u.s. valuation allowances each year in recognition of our improved historical earnings and increasing future projected earnings . as of october 1 , 2016 , we had released all of our u.s. federal valuation allowance . story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; `` > $ 2.9 million , consisting of redemption premiums of $ 5.3 million and a write-off of unamortized debt issuance costs of $ 1.4 million , partially offset by a $ 3.8 million credit for the fair value hedge adjustment related to the extinguished 2019 notes . short-term debt revolving credit facility . during the third quarter of 2015 , we replaced an asset-backed lending facility ( `` abl `` ) with a $ 375 million cash flow revolver ( `` cash flow revolver `` ) , which may be increased by an additional $ 125 million upon obtaining additional commitments from lenders then party to the cash flow revolver or new lenders . the cash flow revolver expires on may 20 , 2020 , but may be terminated by the lenders as early as march 4 , 2019 if certain conditions exist . we incurred $ 1.8 million of debt issuance costs in connection with this transaction . in addition , $ 1.0 million of unamortized debt issuance costs related to the abl were carried forward and $ 0.8 million of such costs were expensed . accordingly , $ 2.8 million of debt issuance costs are being amortized to interest expense over the life of the cash flow revolver . as of september 30 , 2017 , $ 85.0 million borrowings and $ 13.1 million of letters of credit were outstanding under the cash flow revolver , and $ 276.9 million was available to borrow . short-term borrowing facilities . as of september 30 , 2017 , certain of our foreign subsidiaries had a total of $ 74.1 million of short-term borrowing facilities , under which no borrowings were outstanding . these facilities expire at various dates through the second quarter of 2019. debt covenants our cash flow revolver requires us to comply with certain financial covenants . our debt agreements contain a number of restrictive covenants , including restrictions on incurring additional debt , making investments and other restricted payments , selling assets , paying dividends and redeeming or repurchasing capital stock and debt , subject to certain exceptions . these covenants could constrain our ability to grow our business through acquisition or engage in other transactions which the covenants could otherwise restrict , including refinancing our existing debt . in addition , such agreements include covenants requiring , among other things , that we file quarterly and annual financial statements with the sec , comply with all laws , pay all taxes and maintain casualty insurance . if we are not able to comply with all of these covenants , for any reason , some or all of our outstanding debt could become immediately due and payable and the incurrence of additional debt under our cash flow revolver would not be allowed , any of which could have a material adverse effect on our liquidity and ability to conduct our business . as of september 30 , 2017 , we were in compliance with our covenants . other liquidity matters our board of directors has authorized us to repurchase shares of our common stock , subject to a dollar limitation . the timing of repurchases will depend upon capital needs to support the growth of our business , market conditions and other factors . although stock repurchases are intended to increase stockholder value , purchases of shares reduce our liquidity . we repurchased 4.3 million and 6.8 million shares of our common stock for $ 159.7 million and $ 141.2 million in the open market in 2017 and 2016 , respectively . as of september 30 , 2017 , $ 253.2 million remains available under programs authorized by the board of directors , none of which is subject to an expiration date . in the ordinary course of business , we are or may become party to legal proceedings , claims and other contingencies , including environmental , warranty and employee matters and examinations by government agencies . as of september 30 , 44 2017 , we had accrued liabilities of $ 36.1 million related to such matters . we can not accurately predict the outcome of these matters or the amount or timing of cash flows that may be required to defend ourselves or to settle such matters or that these reserves will be sufficient to fully satisfy our contingent liabilities . as of september 30 , 2017 , we had a liability of $ 107.2 million for uncertain
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1,029 | there has been a significant amount of speculation over the size , scope and potential impact of proposed fiscal stimulus measures and policy actions that may come from the new administration , but we feel there is too much uncertainty to gauge the economic impact at this time . given an increased distribution of possible economic outcomes and , as a result , ranges of possible interest rate scenarios , we chose to reduce our duration gap during the fourth quarter and to hedge the sizeable extension risk of our agency rmbs . we added pay-fixed swaps as well as sold agency rmbs , us treasuries and us treasury futures during the quarter . spreads for legacy mortgage assets ( securities issued in 2010 or earlier ) tightened through the end of the year following the u.s. election . persistently favorable fundamentals and strong net demand continue to support positive performance in the legacy mortgage sectors . spreads for the credit-risk transfer ( crt ) sector were relatively volatile during the fourth quarter as election uncertainty and a heavy new issue calendar weighed on the market . spreads reversed course following the year 's final crt deal which priced in early december . during the quarter , we chose to rotate out of a portion of our crt positions , rpl/npl securities , and residential loans . additionally , a consumer abs position was refinanced and called by the issuer in october . we made an equity investment in a seasoned pool of performing and re-performing loans through a securitization , which is included in our alt-a investment category , and purchased a commercial real estate loan during the quarter . fixed rate securities and cmbs interest only securities experienced unrealized fair value losses due to higher interest rates during the fourth quarter . those losses were partially offset by credit spread tightening and there was an overall decline in credit book value for the fourth quarter . housing , economic and interest rate trends inclusive of distressed sales , home prices nationwide increased by 7.2 % on a year-over-year basis in december 2016 as compared with december 2015 , according to data released by corelogic . this marks the 59th consecutive monthly increase year-over-year in national home prices . the housing market remains strong ; however , given the duration and strength of the recovery , we expect home price appreciation to moderate but remain positive over the course of 2017. the u.s. government agencies and the federal reserve ( the “ fed ” ) policy sponsorship of housing via lower mortgage rates and the further loosening of credit available to prospective homeowners , coupled with a stable broader domestic economy , have provided some support for the housing market recovery . 44 according to corelogic , the aggregate value of all residential properties with negative equity ( homes where the homeowner owes more on the home than the home is worth ) decreased to $ 281.9 billion in the third quarter of 2016 , from $ 306.9 billion in the third quarter of 2015 , a decrease of 8.2 % . for much of the country , the negative equity epidemic that developed during the 2008-2009 recession has lifted due to the rise in home prices over the past five years . corelogic predicts that if home prices rise an additional 5.0 % in the next twelve months , 600,000 homeowners could regain positive equity . additionally , credit performance in terms of serious delinquencies and subsequent default rates continued to improve in 2016 and is anticipated to remain stable in the near future . the fed , in its december 14 , 2016 meeting , decided to raise the federal funds interest rate by 0.25 % . progress continues to be made with respect to the fed 's dual mandate of full employment and price stability , as unemployment remains below 5 % and year-over-year core personal consumption expenditures ( core pce ) inches toward the fed 's 2 % target . at the december meeting , the fed modestly increased its median forecast for real gdp growth for 2016 , 2017 and 2019 , while lowering its median forecast for the unemployment rate in each of those same years . as a result , the fed increased their median expectation for the number of further federal funds rate increases in 2017 from two 25bp moves to three 25bps moves . u.s. dollar strength , negative demographic trends and meager productivity growth continue to constrain longer term growth prospects and hold down the neutral federal funds rate . notwithstanding the fed 's increased forecasts , the pace of federal funds rate moves beyond 2017 was unchanged from the previous gradual pace . the initial reading on fourth quarter gdp growth decelerated sharply to 1.9 % from 3.5 % in the third quarter of 2016. net exports and investment in nonresidential structures each proved to be a larger drag than expected , while personal consumption slowed in-line with expectations . a surprise inventory accumulation added one percentage point to gdp growth , however real final sales rose just 0.9 % in the fourth quarter . the rise in savings rates since the financial crisis , continued low interest rates , steady employment gains and low energy costs have all contributed to significant improvement in the consumer 's balance sheet . this continues to fuel our optimism about the prospects of further housing recovery and longer term moderate home price appreciation . the u.s. housing market still benefits from favorable supply/demand dynamics , historically low mortgage rates and a willingness on the part of federal regulators at the federal housing finance agency ( “ fhfa ” ) to further credit expansion and assist household formation . however , we expect that , without an increase in median income , the pace of home price appreciation is likely to moderate over the coming years . story_separator_special_tag million , offset by unrealized gains on tbas of $ 1.4 million during the year . other income other income pertains to certain fees we receive on our residential mortgage loans . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , other income was $ 0.4 million and $ 66,250 , respectively . the increase in other income pertains to increased fees we received on one of our residential mortgage loan pools . 49 year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 other income was $ 66,250 and $ 29,127 , respectively . the increase in other income pertains to increased fees we received for holding our residential mortgage loan pools for an entire year . management fee to affiliate our management fee is based upon a percentage of our stockholders ' equity after excluding unrealized gains or losses and other non-cash items . see the “ contractual obligations ” section of this item 7 for further detail on the calculation of our management fee . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 our management fees were $ 9.8 million and $ 10.0 million , respectively . management fees decreased slightly primarily due to the decrease in our stockholders ' equity from $ 666.9 million at december 31 , 2015 to $ 655.9 million at december 31 , 2016. year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 our management fees were $ 10.0 million and $ 10.1 million , respectively . management fees decreased slightly primarily due to the decrease in our stockholders ' equity from $ 732.7 million at december 31 , 2014 to $ 666.9 million at december 31 , 2015. other operating expenses these amounts are primarily comprised of professional fees , directors ' and officers ' ( “ d & o ” ) insurance and directors ' fees , as well as certain expenses reimbursable to the manager . we are required to reimburse our manager or its affiliates for operating expenses which are incurred by our manager or its affiliates on our behalf , including certain salary expenses and other expenses relating to accounting , legal , due diligence , and other services . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , other operating expenses were $ 10.3 million and $ 12.4 million , respectively . the decrease of $ 2.1 million is primarily a result of decreased amounts reimbursed to the manager , decreased professional fees , and decreased fees paid for d & o insurance . of the $ 10.3 million and $ 12.4 million of other operating expenses for year ended december 31 , 2016 and december 31 , 2015 , respectively , the company has expensed $ 6.0 million and $ 7.1 million , respectively , representing a reimbursement of expenses to the manager or its affiliates . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 , other operating expenses were $ 12.4 million and $ 11.9 million , respectively . the increase of $ 0.5 million is primarily a result of increased amounts reimbursed to the manager for certain deal related expenses as well as increased professional fees . of the $ 12.4 million and $ 11.9 million of other operating expenses for year ended december 31 , 2015 and december 31 , 2014 , respectively , the company has expensed $ 7.1 million and $ 6.9 million , respectively , representing a reimbursement of expenses to the manager or its affiliates . 50 servicing fees we incur servicing fee expenses in connection with the servicing of our residential mortgage loans . we previously acquired three pools of residential mortgage loans and will continue to pay fees as we hold these assets . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 our servicing fees were $ 0.4 million and $ 0.7 million , respectively . the decrease in fees primarily pertains to sales of residential mortgage loans during the period . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 our servicing fees were $ 0.7 million and $ 0.5 million , respectively . the increase in fees primarily pertains to the recognition of a full year 's worth of expense on our residential mortgage loans in 2015 , after purchases of residential mortgage loans in 2014. equity based compensation to affiliate equity based compensation to affiliates represents the amortization of the fair value of our restricted stock units remeasured quarterly , less the present value of dividends expected to be paid on the underlying shares through the requisite service period . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , our equity based compensation to affiliate was $ 0.3 million and $ 0.2 million , respectively . the increase is a result of an increased stock price for the year . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 ,
| liquidity and capital resources our liquidity determines our ability to meet our cash obligations , including commitments to make distributions to our stockholders , pay our expenses , finance our investments and satisfy other general business needs . our principal sources of cash as of december 31 , 2016 consisted of borrowings under repurchase agreements , payments of principal and interest we receive on our agency rmbs and credit portfolio , cash generated from our operating results , and proceeds from capital market transactions . we typically use cash to repay principal and interest on our repurchase agreements , to purchase real estate securities , loans and other real estate related assets , to make dividend payments on our capital stock , and to fund our operations . at december 31 , 2016 , we had $ 137.9 million available to support our liquidity needs , comprised of $ 52.5 million of cash , $ 52.4 million of agency rmbs , and $ 33.0 million of agency interest-only securities that have not been pledged as collateral under any of our financing agreements . refer to the “ contractual obligations ” section of this item 7 for additional obligations that could impact our liquidity . leverage the amount of leverage we may deploy for particular assets depends upon our manager 's assessment of the credit and other risks of those assets , and also depends on any limitations placed upon us through covenants contained in our master repurchase agreements . as of december 31 , 2016 , our non-gaap “ at-risk ” and gaap debt-to-equity leverage ratios were 2.9 to 1 and 2.9 to 1 , 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. |
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 liquidity determines our ability to meet our cash obligations , including commitments to make distributions to our stockholders , pay our expenses , finance our investments and satisfy other general business needs . our principal sources of cash as of december 31 , 2016 consisted of borrowings under repurchase agreements , payments of principal and interest we receive on our agency rmbs and credit portfolio , cash generated from our operating results , and proceeds from capital market transactions . we typically use cash to repay principal and interest on our repurchase agreements , to purchase real estate securities , loans and other real estate related assets , to make dividend payments on our capital stock , and to fund our operations . at december 31 , 2016 , we had $ 137.9 million available to support our liquidity needs , comprised of $ 52.5 million of cash , $ 52.4 million of agency rmbs , and $ 33.0 million of agency interest-only securities that have not been pledged as collateral under any of our financing agreements . refer to the “ contractual obligations ” section of this item 7 for additional obligations that could impact our liquidity . leverage the amount of leverage we may deploy for particular assets depends upon our manager 's assessment of the credit and other risks of those assets , and also depends on any limitations placed upon us through covenants contained in our master repurchase agreements . as of december 31 , 2016 , our non-gaap “ at-risk ” and gaap debt-to-equity leverage ratios were 2.9 to 1 and 2.9 to 1 , respectively .
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Suspicious Activity Report : there has been a significant amount of speculation over the size , scope and potential impact of proposed fiscal stimulus measures and policy actions that may come from the new administration , but we feel there is too much uncertainty to gauge the economic impact at this time . given an increased distribution of possible economic outcomes and , as a result , ranges of possible interest rate scenarios , we chose to reduce our duration gap during the fourth quarter and to hedge the sizeable extension risk of our agency rmbs . we added pay-fixed swaps as well as sold agency rmbs , us treasuries and us treasury futures during the quarter . spreads for legacy mortgage assets ( securities issued in 2010 or earlier ) tightened through the end of the year following the u.s. election . persistently favorable fundamentals and strong net demand continue to support positive performance in the legacy mortgage sectors . spreads for the credit-risk transfer ( crt ) sector were relatively volatile during the fourth quarter as election uncertainty and a heavy new issue calendar weighed on the market . spreads reversed course following the year 's final crt deal which priced in early december . during the quarter , we chose to rotate out of a portion of our crt positions , rpl/npl securities , and residential loans . additionally , a consumer abs position was refinanced and called by the issuer in october . we made an equity investment in a seasoned pool of performing and re-performing loans through a securitization , which is included in our alt-a investment category , and purchased a commercial real estate loan during the quarter . fixed rate securities and cmbs interest only securities experienced unrealized fair value losses due to higher interest rates during the fourth quarter . those losses were partially offset by credit spread tightening and there was an overall decline in credit book value for the fourth quarter . housing , economic and interest rate trends inclusive of distressed sales , home prices nationwide increased by 7.2 % on a year-over-year basis in december 2016 as compared with december 2015 , according to data released by corelogic . this marks the 59th consecutive monthly increase year-over-year in national home prices . the housing market remains strong ; however , given the duration and strength of the recovery , we expect home price appreciation to moderate but remain positive over the course of 2017. the u.s. government agencies and the federal reserve ( the “ fed ” ) policy sponsorship of housing via lower mortgage rates and the further loosening of credit available to prospective homeowners , coupled with a stable broader domestic economy , have provided some support for the housing market recovery . 44 according to corelogic , the aggregate value of all residential properties with negative equity ( homes where the homeowner owes more on the home than the home is worth ) decreased to $ 281.9 billion in the third quarter of 2016 , from $ 306.9 billion in the third quarter of 2015 , a decrease of 8.2 % . for much of the country , the negative equity epidemic that developed during the 2008-2009 recession has lifted due to the rise in home prices over the past five years . corelogic predicts that if home prices rise an additional 5.0 % in the next twelve months , 600,000 homeowners could regain positive equity . additionally , credit performance in terms of serious delinquencies and subsequent default rates continued to improve in 2016 and is anticipated to remain stable in the near future . the fed , in its december 14 , 2016 meeting , decided to raise the federal funds interest rate by 0.25 % . progress continues to be made with respect to the fed 's dual mandate of full employment and price stability , as unemployment remains below 5 % and year-over-year core personal consumption expenditures ( core pce ) inches toward the fed 's 2 % target . at the december meeting , the fed modestly increased its median forecast for real gdp growth for 2016 , 2017 and 2019 , while lowering its median forecast for the unemployment rate in each of those same years . as a result , the fed increased their median expectation for the number of further federal funds rate increases in 2017 from two 25bp moves to three 25bps moves . u.s. dollar strength , negative demographic trends and meager productivity growth continue to constrain longer term growth prospects and hold down the neutral federal funds rate . notwithstanding the fed 's increased forecasts , the pace of federal funds rate moves beyond 2017 was unchanged from the previous gradual pace . the initial reading on fourth quarter gdp growth decelerated sharply to 1.9 % from 3.5 % in the third quarter of 2016. net exports and investment in nonresidential structures each proved to be a larger drag than expected , while personal consumption slowed in-line with expectations . a surprise inventory accumulation added one percentage point to gdp growth , however real final sales rose just 0.9 % in the fourth quarter . the rise in savings rates since the financial crisis , continued low interest rates , steady employment gains and low energy costs have all contributed to significant improvement in the consumer 's balance sheet . this continues to fuel our optimism about the prospects of further housing recovery and longer term moderate home price appreciation . the u.s. housing market still benefits from favorable supply/demand dynamics , historically low mortgage rates and a willingness on the part of federal regulators at the federal housing finance agency ( “ fhfa ” ) to further credit expansion and assist household formation . however , we expect that , without an increase in median income , the pace of home price appreciation is likely to moderate over the coming years . story_separator_special_tag million , offset by unrealized gains on tbas of $ 1.4 million during the year . other income other income pertains to certain fees we receive on our residential mortgage loans . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , other income was $ 0.4 million and $ 66,250 , respectively . the increase in other income pertains to increased fees we received on one of our residential mortgage loan pools . 49 year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 other income was $ 66,250 and $ 29,127 , respectively . the increase in other income pertains to increased fees we received for holding our residential mortgage loan pools for an entire year . management fee to affiliate our management fee is based upon a percentage of our stockholders ' equity after excluding unrealized gains or losses and other non-cash items . see the “ contractual obligations ” section of this item 7 for further detail on the calculation of our management fee . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 our management fees were $ 9.8 million and $ 10.0 million , respectively . management fees decreased slightly primarily due to the decrease in our stockholders ' equity from $ 666.9 million at december 31 , 2015 to $ 655.9 million at december 31 , 2016. year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 our management fees were $ 10.0 million and $ 10.1 million , respectively . management fees decreased slightly primarily due to the decrease in our stockholders ' equity from $ 732.7 million at december 31 , 2014 to $ 666.9 million at december 31 , 2015. other operating expenses these amounts are primarily comprised of professional fees , directors ' and officers ' ( “ d & o ” ) insurance and directors ' fees , as well as certain expenses reimbursable to the manager . we are required to reimburse our manager or its affiliates for operating expenses which are incurred by our manager or its affiliates on our behalf , including certain salary expenses and other expenses relating to accounting , legal , due diligence , and other services . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , other operating expenses were $ 10.3 million and $ 12.4 million , respectively . the decrease of $ 2.1 million is primarily a result of decreased amounts reimbursed to the manager , decreased professional fees , and decreased fees paid for d & o insurance . of the $ 10.3 million and $ 12.4 million of other operating expenses for year ended december 31 , 2016 and december 31 , 2015 , respectively , the company has expensed $ 6.0 million and $ 7.1 million , respectively , representing a reimbursement of expenses to the manager or its affiliates . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 , other operating expenses were $ 12.4 million and $ 11.9 million , respectively . the increase of $ 0.5 million is primarily a result of increased amounts reimbursed to the manager for certain deal related expenses as well as increased professional fees . of the $ 12.4 million and $ 11.9 million of other operating expenses for year ended december 31 , 2015 and december 31 , 2014 , respectively , the company has expensed $ 7.1 million and $ 6.9 million , respectively , representing a reimbursement of expenses to the manager or its affiliates . 50 servicing fees we incur servicing fee expenses in connection with the servicing of our residential mortgage loans . we previously acquired three pools of residential mortgage loans and will continue to pay fees as we hold these assets . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 our servicing fees were $ 0.4 million and $ 0.7 million , respectively . the decrease in fees primarily pertains to sales of residential mortgage loans during the period . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 , 2014 our servicing fees were $ 0.7 million and $ 0.5 million , respectively . the increase in fees primarily pertains to the recognition of a full year 's worth of expense on our residential mortgage loans in 2015 , after purchases of residential mortgage loans in 2014. equity based compensation to affiliate equity based compensation to affiliates represents the amortization of the fair value of our restricted stock units remeasured quarterly , less the present value of dividends expected to be paid on the underlying shares through the requisite service period . year ended december 31 , 2016 compared to the year ended december 31 , 2015 for the years ended december 31 , 2016 and december 31 , 2015 , our equity based compensation to affiliate was $ 0.3 million and $ 0.2 million , respectively . the increase is a result of an increased stock price for the year . year ended december 31 , 2015 compared to the year ended december 31 , 2014 for the years ended december 31 , 2015 and december 31 ,
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1,030 | story_separator_special_tag style= `` margin-bottom : 3pt ; font-size : 10pt ; font-family : 'times new roman ' , times , serif ; text-align : justify ; margin-top : 3pt `` > we follow asc 820 , `` fair value measurements and disclosures `` , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date . asc 820 also establishes a fair value hierarchy that distinguishes between : ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) ; and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy are described below : level 1 level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities . level 2 level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets ; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions ( less active markets ) ; or model-derived valuations in which significant inputs are observable or can be derived principally from , or corroborated by , observable market data . level 3 level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities . recent accounting pronouncements in june 2014 , the financial accounting standards board issued accounting standards update no . 2014-10 , which eliminated certain financial reporting requirements of companies previously identified as `` development stage entities `` ( topic 915 ) . the amendments in this asu simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities . the amendments also reduce data maintenance and , for those entities subject to audit , audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income , cash flows , and shareholder equity . early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity 's financial statements have not yet been issued ( public business entities ) or made available for issuance ( other entities ) . upon adoption , entities will no longer present or disclose any information required by topic 915. the company has adopted this standard . in may 2014 , fasb issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers . the revenue recognition standard affects all entities that have contracts with customers , except for certain items . the new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current gaap and replaces it with a principle-based approach for determining revenue recognition . public entities are required to adopt the revenue recognition standard for reporting periods beginning after december 15 , 2016 , and interim and annual reporting periods thereafter . early adoption is not permitted for public entities . the company has reviewed the applicable asu and has not , at the current time , quantified the effects of this pronouncement , however it believes that there will be no material effect on the consolidated financial statements . in june 2014 , fasb issued accounting standards update ( asu ) no . 2014-12 compensation — stock compensation ( topic 718 ) , accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period . a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under accounting standards codification ( asc ) 718 , compensation — stock compensation . as a result , the target is not reflected in the estimation of the award 's grant date fair value . compensation cost would be recognized over the required service period , if it is probable that the performance condition will be achieved . the guidance is effective for annual periods beginning after 15 december 2015 and interim periods within those annual periods . early adoption is permitted . management has reviewed the asu and believes that they currently account for these awards in a manner consistent with the new guidance , therefore there is no anticipation of any effect to the consolidated financial statements . 13 in august 2014 , fasb issued accounting standards update ( asu ) no . 2014-15 preparation of financial statements – going concern ( subtopic 205-40 ) , disclosure of uncertainties about an entity 's ability to continue as a going concern . under generally accepted accounting principles ( gaap ) , continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity 's liquidation becomes imminent . preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting . if and when an entity 's liquidation becomes imminent , financial statements should be prepared under the liquidation basis of accounting in accordance with subtopic 205-30 , presentation of financial statements—liquidation basis of accounting . even when an entity 's story_separator_special_tag story_separator_special_tag style= `` margin-bottom : 3pt ; font-size : 10pt ; font-family : 'times new roman ' , times , serif ; text-align : justify ; margin-top : 3pt `` > we follow asc 820 , `` fair value measurements and disclosures `` , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date . asc 820 also establishes a fair value hierarchy that distinguishes between : ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) ; and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy are described below : level 1 level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities . level 2 level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets ; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions ( less active markets ) ; or model-derived valuations in which significant inputs are observable or can be derived principally from , or corroborated by , observable market data . level 3 level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities . recent accounting pronouncements in june 2014 , the financial accounting standards board issued accounting standards update no . 2014-10 , which eliminated certain financial reporting requirements of companies previously identified as `` development stage entities `` ( topic 915 ) . the amendments in this asu simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities . the amendments also reduce data maintenance and , for those entities subject to audit , audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income , cash flows , and shareholder equity . early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity 's financial statements have not yet been issued ( public business entities ) or made available for issuance ( other entities ) . upon adoption , entities will no longer present or disclose any information required by topic 915. the company has adopted this standard . in may 2014 , fasb issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers . the revenue recognition standard affects all entities that have contracts with customers , except for certain items . the new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current gaap and replaces it with a principle-based approach for determining revenue recognition . public entities are required to adopt the revenue recognition standard for reporting periods beginning after december 15 , 2016 , and interim and annual reporting periods thereafter . early adoption is not permitted for public entities . the company has reviewed the applicable asu and has not , at the current time , quantified the effects of this pronouncement , however it believes that there will be no material effect on the consolidated financial statements . in june 2014 , fasb issued accounting standards update ( asu ) no . 2014-12 compensation — stock compensation ( topic 718 ) , accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period . a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under accounting standards codification ( asc ) 718 , compensation — stock compensation . as a result , the target is not reflected in the estimation of the award 's grant date fair value . compensation cost would be recognized over the required service period , if it is probable that the performance condition will be achieved . the guidance is effective for annual periods beginning after 15 december 2015 and interim periods within those annual periods . early adoption is permitted . management has reviewed the asu and believes that they currently account for these awards in a manner consistent with the new guidance , therefore there is no anticipation of any effect to the consolidated financial statements . 13 in august 2014 , fasb issued accounting standards update ( asu ) no . 2014-15 preparation of financial statements – going concern ( subtopic 205-40 ) , disclosure of uncertainties about an entity 's ability to continue as a going concern . under generally accepted accounting principles ( gaap ) , continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity 's liquidation becomes imminent . preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting . if and when an entity 's liquidation becomes imminent , financial statements should be prepared under the liquidation basis of accounting in accordance with subtopic 205-30 , presentation of financial statements—liquidation basis of accounting . even when an entity 's
| cash flows replace_table_token_4_th cash flows from operating activities we have not generated positive cash flows from operating activities . for the year ended november 30 , 2014 , net cash flows used in operating activities was $ 78,901 consisting of a net loss of $ 90,951 and was offset by an increase in accounts payable of $ 12,050. for the year ended november 30 , 2013 , net cash flows used in operating activities was $ 36,056 consisting of a net loss of $ 39,975 and was offset by an increase in accounts payable of $ 3,919. cash flows from investing activities since inception ( april 30 , 2012 ) , we have not used any cash for investing activities . cash flows from financing activities we have financed our operations from the issuance of equity . for the year ended november 30 , 2014 , we generated $ 64,999 from financing activities as proceeds from the issuance of 250,000 shares of our common stock during november 2014 for gross proceeds of $ 25,000 and proceeds from the short-term loans of $ 39,999 from related parties . for the year ended november 30 , 2013 , we generated $ 42,500 from financing activities as proceeds from the issuance of 5,940,000 shares of our common stock during january 2013 for gross proceeds of $ 9,000 and our public offering of which closed on july 8 , 2013 , whereby we issued 22,110,000 shares of common stock for gross proceedsof $ 33,500 .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows replace_table_token_4_th cash flows from operating activities we have not generated positive cash flows from operating activities . for the year ended november 30 , 2014 , net cash flows used in operating activities was $ 78,901 consisting of a net loss of $ 90,951 and was offset by an increase in accounts payable of $ 12,050. for the year ended november 30 , 2013 , net cash flows used in operating activities was $ 36,056 consisting of a net loss of $ 39,975 and was offset by an increase in accounts payable of $ 3,919. cash flows from investing activities since inception ( april 30 , 2012 ) , we have not used any cash for investing activities . cash flows from financing activities we have financed our operations from the issuance of equity . for the year ended november 30 , 2014 , we generated $ 64,999 from financing activities as proceeds from the issuance of 250,000 shares of our common stock during november 2014 for gross proceeds of $ 25,000 and proceeds from the short-term loans of $ 39,999 from related parties . for the year ended november 30 , 2013 , we generated $ 42,500 from financing activities as proceeds from the issuance of 5,940,000 shares of our common stock during january 2013 for gross proceeds of $ 9,000 and our public offering of which closed on july 8 , 2013 , whereby we issued 22,110,000 shares of common stock for gross proceedsof $ 33,500 .
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Suspicious Activity Report : story_separator_special_tag style= `` margin-bottom : 3pt ; font-size : 10pt ; font-family : 'times new roman ' , times , serif ; text-align : justify ; margin-top : 3pt `` > we follow asc 820 , `` fair value measurements and disclosures `` , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date . asc 820 also establishes a fair value hierarchy that distinguishes between : ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) ; and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy are described below : level 1 level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities . level 2 level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets ; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions ( less active markets ) ; or model-derived valuations in which significant inputs are observable or can be derived principally from , or corroborated by , observable market data . level 3 level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities . recent accounting pronouncements in june 2014 , the financial accounting standards board issued accounting standards update no . 2014-10 , which eliminated certain financial reporting requirements of companies previously identified as `` development stage entities `` ( topic 915 ) . the amendments in this asu simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities . the amendments also reduce data maintenance and , for those entities subject to audit , audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income , cash flows , and shareholder equity . early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity 's financial statements have not yet been issued ( public business entities ) or made available for issuance ( other entities ) . upon adoption , entities will no longer present or disclose any information required by topic 915. the company has adopted this standard . in may 2014 , fasb issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers . the revenue recognition standard affects all entities that have contracts with customers , except for certain items . the new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current gaap and replaces it with a principle-based approach for determining revenue recognition . public entities are required to adopt the revenue recognition standard for reporting periods beginning after december 15 , 2016 , and interim and annual reporting periods thereafter . early adoption is not permitted for public entities . the company has reviewed the applicable asu and has not , at the current time , quantified the effects of this pronouncement , however it believes that there will be no material effect on the consolidated financial statements . in june 2014 , fasb issued accounting standards update ( asu ) no . 2014-12 compensation — stock compensation ( topic 718 ) , accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period . a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under accounting standards codification ( asc ) 718 , compensation — stock compensation . as a result , the target is not reflected in the estimation of the award 's grant date fair value . compensation cost would be recognized over the required service period , if it is probable that the performance condition will be achieved . the guidance is effective for annual periods beginning after 15 december 2015 and interim periods within those annual periods . early adoption is permitted . management has reviewed the asu and believes that they currently account for these awards in a manner consistent with the new guidance , therefore there is no anticipation of any effect to the consolidated financial statements . 13 in august 2014 , fasb issued accounting standards update ( asu ) no . 2014-15 preparation of financial statements – going concern ( subtopic 205-40 ) , disclosure of uncertainties about an entity 's ability to continue as a going concern . under generally accepted accounting principles ( gaap ) , continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity 's liquidation becomes imminent . preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting . if and when an entity 's liquidation becomes imminent , financial statements should be prepared under the liquidation basis of accounting in accordance with subtopic 205-30 , presentation of financial statements—liquidation basis of accounting . even when an entity 's story_separator_special_tag story_separator_special_tag style= `` margin-bottom : 3pt ; font-size : 10pt ; font-family : 'times new roman ' , times , serif ; text-align : justify ; margin-top : 3pt `` > we follow asc 820 , `` fair value measurements and disclosures `` , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability ( an exit price ) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date . asc 820 also establishes a fair value hierarchy that distinguishes between : ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) ; and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy are described below : level 1 level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities . level 2 level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets ; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions ( less active markets ) ; or model-derived valuations in which significant inputs are observable or can be derived principally from , or corroborated by , observable market data . level 3 level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities . recent accounting pronouncements in june 2014 , the financial accounting standards board issued accounting standards update no . 2014-10 , which eliminated certain financial reporting requirements of companies previously identified as `` development stage entities `` ( topic 915 ) . the amendments in this asu simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities . the amendments also reduce data maintenance and , for those entities subject to audit , audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income , cash flows , and shareholder equity . early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity 's financial statements have not yet been issued ( public business entities ) or made available for issuance ( other entities ) . upon adoption , entities will no longer present or disclose any information required by topic 915. the company has adopted this standard . in may 2014 , fasb issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers . the revenue recognition standard affects all entities that have contracts with customers , except for certain items . the new revenue recognition standard eliminates the transaction-and industry-specific revenue recognition guidance under current gaap and replaces it with a principle-based approach for determining revenue recognition . public entities are required to adopt the revenue recognition standard for reporting periods beginning after december 15 , 2016 , and interim and annual reporting periods thereafter . early adoption is not permitted for public entities . the company has reviewed the applicable asu and has not , at the current time , quantified the effects of this pronouncement , however it believes that there will be no material effect on the consolidated financial statements . in june 2014 , fasb issued accounting standards update ( asu ) no . 2014-12 compensation — stock compensation ( topic 718 ) , accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period . a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under accounting standards codification ( asc ) 718 , compensation — stock compensation . as a result , the target is not reflected in the estimation of the award 's grant date fair value . compensation cost would be recognized over the required service period , if it is probable that the performance condition will be achieved . the guidance is effective for annual periods beginning after 15 december 2015 and interim periods within those annual periods . early adoption is permitted . management has reviewed the asu and believes that they currently account for these awards in a manner consistent with the new guidance , therefore there is no anticipation of any effect to the consolidated financial statements . 13 in august 2014 , fasb issued accounting standards update ( asu ) no . 2014-15 preparation of financial statements – going concern ( subtopic 205-40 ) , disclosure of uncertainties about an entity 's ability to continue as a going concern . under generally accepted accounting principles ( gaap ) , continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity 's liquidation becomes imminent . preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting . if and when an entity 's liquidation becomes imminent , financial statements should be prepared under the liquidation basis of accounting in accordance with subtopic 205-30 , presentation of financial statements—liquidation basis of accounting . even when an entity 's
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1,031 | our technology and solutions include : digital merchandising systems and omni-channel customer engagement systems ; content creation , production and scheduling programs and systems ; a comprehensive series of recurring maintenance , support , and field service offerings ; interactive digital shopping assistants , advisors and kiosks ; and , other interactive marketing technologies such as mobile , social media , point-of-sale transactions , beaconing and web-based media that enable our customers to transform how they engage with consumers . our main operations are conducted directly through creative realities , inc. and our wholly owned subsidiaries allure global solutions , inc. , a georgia corporation , creative realities canada , inc. , a canadian corporation , and conexus world global , llc , a kentucky limited liability company . our other wholly owned subsidiary creative realities , llc , a delaware limited liability company , has been effectively dormant since october 2015 , the date of the merger with conexus world global , llc . we generate revenue in our business by : ● consulting with our customers to determine the technologies and solutions required to achieve their specific goals , strategies and objectives ; ● designing our customers ' digital marketing experiences , content and interfaces ; ● engineering the systems architecture delivering the digital marketing experiences we design – both software and hardware – and integrating those systems into a customized , reliable and effective digital marketing experience ; ● managing the efficient , timely and cost-effective deployment of our digital marketing technology solutions for our customers ; ● delivering and updating the content of our digital marketing technology solutions using a suite of advanced media , content and network management software products ; and ● maintaining our customers ' digital marketing technology solutions by : providing content production and related services ; creating additional software-based features and functionality ; hosting the solutions ; monitoring solution service levels ; and responding to and or managing remote or onsite field service maintenance , troubleshooting and support calls . these activities generate revenue through : bundled-solution sales ; consulting services , experience design , content development and production , software development , engineering , implementation , and field services ; software license fees ; and maintenance and support services related to our software , managed systems and solutions . our sources of revenue we generate revenue through digital marketing solution sales , which include system hardware , professional and implementation services , software design and development , software licensing , deployment , and maintenance and support services . 21 we currently market and sell our technology and solutions primarily through our sales and business development personnel , but we also utilize agents , strategic partners , and lead generators who provide us with access to additional sales , business development and licensing opportunities . our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development , and general and administrative . sales and marketing expenses include salaries and benefits for our sales , business development solution management and marketing personnel , and commissions paid on sales . this category also includes amounts spent on marketing networking events , promotional materials , hardware and software to prospective new customers , including those expenses incurred in trade shows and product demonstrations , and other related expenses . our research and development expenses represent the salaries and benefits of those individuals who develop and maintain our proprietary software platforms and other software applications we design and sell to our customers . our general and administrative expenses consist of corporate overhead , including administrative salaries , real property lease payments , salaries and benefits for our corporate officers and other expenses such as legal and accounting fees . critical accounting policies and estimates our management is responsible for our financial statements and has evaluated the accounting policies to be used in their preparation . our management believes these policies are reasonable and appropriate . the company 's significant accounting policies are described in note 2 summary of significant accounting policies of the company 's consolidated financial statements included within part ii , item 8 of this report . the following discussion identifies those accounting policies that we believe are critical in the preparation of our financial statements , the judgments and uncertainties affecting the application of those policies and the possibility that materially different amounts will be reported under different conditions or using different assumptions . the preparation of financial statements in conformity with gaap requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ from those estimates . revenue recognition on january 1 , 2018 , we adopted financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 606 , revenue from contracts with customers ( “ asc 606 ” ) using the modified retrospective method for all contracts not completed as of the date of adoption . results for reporting periods beginning on or after january 1 , 2018 are presented under asc 606 , while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period . under this method , we concluded that the cumulative effect of applying this guidance was not material to the financial statements and no adjustment to the opening balance of accumulated deficit was required on the adoption date . story_separator_special_tag interest expense see note 9 loans payable to the consolidated financial statements for a discussion of the company 's debt and related interest expense obligations . change in fair value of warrant liability all of the company 's outstanding warrants classified as liabilities expired during the three months ended september 30 , 2019. see note 6 fair value measurement to the consolidated financial statements for a discussion of the company 's non-cash change in warrant liability . gain on settlement of obligations during the year ended december 31 , 2019 , the company settled and or wrote off obligations of $ 3,178 for $ 1,132 cash payment and recognized a gain of $ 2,046 . $ 1,619 of this gain related to settlement of legacy sales commissions due to a third-party vendor which were settled with a cash payment of $ 1,100 during the three-months ended december 31 , 2019. the remaining settlements related to legacy accounts payable deemed to no longer be legal obligations to vendors . in 2018 , the company settled and or wrote off obligations of $ 313 for $ 58 cash payment and recognized a gain of $ 255. this obligation included $ 30 of accrued wage labor liabilities no longer anticipated to be pursued against the company . 26 debt conversion expense the company recorded debt conversion expense of $ 5,055 in connection with issuance of incentive shares issued upon conversion of the convertible promissory notes into common stock on november 19 , 2018 in conjunction with the public offering . see note 9 loans payable to the consolidated financial statements . there was no such corresponding activity and expense in 2019. dividends on preferred stock the company issued common stock dividends on series a convertible preferred stock of $ 345 during the year-ended december 31 , 2018. there was no outstanding preferred stock in 2019 and no such dividends were issued during the year-ended december 31 , 2019. preferred stock conversion expense the company recorded preferred stock conversion expense of $ 3,932 , which is reflected as a loss to common shareholders , in connection with issuance of incentive shares issued upon conversion of the series a preferred stock into common stock on november 19 , 2018 in conjunction with the public offering . see note 13 convertible preferred stock to the consolidated financial statements . there was no such corresponding activity and expense in 2019. summary unaudited quarterly financial information the following represents unaudited financial information derived from the company 's annual and quarterly financial statements : replace_table_token_2_th replace_table_token_3_th supplemental operating results on a non-gaap basis the following non-gaap data , which adjusts for the categories of expenses described below , is a non-gaap financial measure . our management believes that this non-gaap financial measure is useful information for investors , shareholders and other stakeholders of our company in gauging our results of operations on an ongoing basis . we believe that ebitda is a performance measure and not a liquidity measure , and therefore a reconciliation between net loss/income and ebitda and adjusted ebitda has been provided . ebitda should not be considered as an alternative to net loss/income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows , in each case as determined in accordance with gaap , or as a measure of liquidity . in addition , ebitda does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows . we do not intend the presentation of these non-gaap measures to be considered in isolation or as a substitute for results prepared in accordance with gaap . these non-gaap measures should be read only in conjunction with our consolidated financial statements prepared in accordance with gaap . 27 replace_table_token_4_th story_separator_special_tag 10pt `` > on november 9 , 2018 , slipstream extended the maturity date of our term loan and revolving loan to august 16 , 2020. in conjunction with the extension of the maturity date of our term loan , we agreed that the cash portion of the interest rate would increase from 8.0 % per annum to 10.0 % per annum effective july 1 , 2019 . 28 management believes that , based on ( i ) the extension of the maturity date on our term loan and revolving loans , and ( ii ) our operational forecast through 2021 , we can continue as a going concern through at least march 31 , 2021. however , given our net losses , cash used in operating activities and working capital deficit , we obtained a continued support letter from slipstream through march 31 , 2021. we can provide no assurance that our ongoing operational efforts will be successful which could have a material adverse effect on our results of operations and cash flows . see note 9 loans payable to the consolidated financial statements for an additional discussion of the company 's debt obligations . operating activities we do not currently generate positive cash flow . our operational costs have been greater than sales generated to date . as of december 31 , 2019 , we had an accumulated deficit of $ 35,643. the cash flows used in operating activities was ( $ 970 ) and ( $ 1,564 ) for the years ended december 31 , 2019 and 2018 , respectively . the majority of the cash consumed by operations for both periods was attributed to our net losses . for the years ended december 31 , 2019 and 2018 , our net loss attributable to common shareholders was $ ( 1,008 ) and ( $ 15,191 ) when adjusted for gain on settlements of obligations , respectively . included in our net losses were non-cash charges consisting of depreciation , amortization of debt discount related to convertible preferred stock / issued for debt-issuance costs , change in warrant liability , stock-based compensation
| liquidity and capital resources we produced net income for the year ended december 31 , 2019 but incurred a net loss for the year ended december 31 , 2018 and have negative cash flows from operating activities as of december 31 , 2019. as of december 31 , 2019 , we had cash and cash equivalents of $ 2,534 and a working capital deficit of $ 2,449. on november 6 , 2019 , slipstream extended the maturity date of our term loan and revolver loan to june 30 , 2021 through the sixth amendment to the loan and security agreement , aligning the maturity date of our term loan and revolver loan with the secured disbursed escrow promissory note . on december 30 , 2019 , we entered into the secured convertible special loan promissory note ( “ special loan ” ) as part of the seventh amendment of the loan and security agreement with slipstream , under which we obtained $ 2,000 , with interest thereon at 8 % per annum payable 6 % in cash and 2 % via the issuance of paid-in-kind ( “ slpik ” ) interest , provided however that upon occurrence of an event of default the interest rate shall automatically be increased by 6 % per annum payable in cash.
| 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. |
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 we produced net income for the year ended december 31 , 2019 but incurred a net loss for the year ended december 31 , 2018 and have negative cash flows from operating activities as of december 31 , 2019. as of december 31 , 2019 , we had cash and cash equivalents of $ 2,534 and a working capital deficit of $ 2,449. on november 6 , 2019 , slipstream extended the maturity date of our term loan and revolver loan to june 30 , 2021 through the sixth amendment to the loan and security agreement , aligning the maturity date of our term loan and revolver loan with the secured disbursed escrow promissory note . on december 30 , 2019 , we entered into the secured convertible special loan promissory note ( “ special loan ” ) as part of the seventh amendment of the loan and security agreement with slipstream , under which we obtained $ 2,000 , with interest thereon at 8 % per annum payable 6 % in cash and 2 % via the issuance of paid-in-kind ( “ slpik ” ) interest , provided however that upon occurrence of an event of default the interest rate shall automatically be increased by 6 % per annum payable in cash.
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Suspicious Activity Report : our technology and solutions include : digital merchandising systems and omni-channel customer engagement systems ; content creation , production and scheduling programs and systems ; a comprehensive series of recurring maintenance , support , and field service offerings ; interactive digital shopping assistants , advisors and kiosks ; and , other interactive marketing technologies such as mobile , social media , point-of-sale transactions , beaconing and web-based media that enable our customers to transform how they engage with consumers . our main operations are conducted directly through creative realities , inc. and our wholly owned subsidiaries allure global solutions , inc. , a georgia corporation , creative realities canada , inc. , a canadian corporation , and conexus world global , llc , a kentucky limited liability company . our other wholly owned subsidiary creative realities , llc , a delaware limited liability company , has been effectively dormant since october 2015 , the date of the merger with conexus world global , llc . we generate revenue in our business by : ● consulting with our customers to determine the technologies and solutions required to achieve their specific goals , strategies and objectives ; ● designing our customers ' digital marketing experiences , content and interfaces ; ● engineering the systems architecture delivering the digital marketing experiences we design – both software and hardware – and integrating those systems into a customized , reliable and effective digital marketing experience ; ● managing the efficient , timely and cost-effective deployment of our digital marketing technology solutions for our customers ; ● delivering and updating the content of our digital marketing technology solutions using a suite of advanced media , content and network management software products ; and ● maintaining our customers ' digital marketing technology solutions by : providing content production and related services ; creating additional software-based features and functionality ; hosting the solutions ; monitoring solution service levels ; and responding to and or managing remote or onsite field service maintenance , troubleshooting and support calls . these activities generate revenue through : bundled-solution sales ; consulting services , experience design , content development and production , software development , engineering , implementation , and field services ; software license fees ; and maintenance and support services related to our software , managed systems and solutions . our sources of revenue we generate revenue through digital marketing solution sales , which include system hardware , professional and implementation services , software design and development , software licensing , deployment , and maintenance and support services . 21 we currently market and sell our technology and solutions primarily through our sales and business development personnel , but we also utilize agents , strategic partners , and lead generators who provide us with access to additional sales , business development and licensing opportunities . our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development , and general and administrative . sales and marketing expenses include salaries and benefits for our sales , business development solution management and marketing personnel , and commissions paid on sales . this category also includes amounts spent on marketing networking events , promotional materials , hardware and software to prospective new customers , including those expenses incurred in trade shows and product demonstrations , and other related expenses . our research and development expenses represent the salaries and benefits of those individuals who develop and maintain our proprietary software platforms and other software applications we design and sell to our customers . our general and administrative expenses consist of corporate overhead , including administrative salaries , real property lease payments , salaries and benefits for our corporate officers and other expenses such as legal and accounting fees . critical accounting policies and estimates our management is responsible for our financial statements and has evaluated the accounting policies to be used in their preparation . our management believes these policies are reasonable and appropriate . the company 's significant accounting policies are described in note 2 summary of significant accounting policies of the company 's consolidated financial statements included within part ii , item 8 of this report . the following discussion identifies those accounting policies that we believe are critical in the preparation of our financial statements , the judgments and uncertainties affecting the application of those policies and the possibility that materially different amounts will be reported under different conditions or using different assumptions . the preparation of financial statements in conformity with gaap requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ from those estimates . revenue recognition on january 1 , 2018 , we adopted financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 606 , revenue from contracts with customers ( “ asc 606 ” ) using the modified retrospective method for all contracts not completed as of the date of adoption . results for reporting periods beginning on or after january 1 , 2018 are presented under asc 606 , while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period . under this method , we concluded that the cumulative effect of applying this guidance was not material to the financial statements and no adjustment to the opening balance of accumulated deficit was required on the adoption date . story_separator_special_tag interest expense see note 9 loans payable to the consolidated financial statements for a discussion of the company 's debt and related interest expense obligations . change in fair value of warrant liability all of the company 's outstanding warrants classified as liabilities expired during the three months ended september 30 , 2019. see note 6 fair value measurement to the consolidated financial statements for a discussion of the company 's non-cash change in warrant liability . gain on settlement of obligations during the year ended december 31 , 2019 , the company settled and or wrote off obligations of $ 3,178 for $ 1,132 cash payment and recognized a gain of $ 2,046 . $ 1,619 of this gain related to settlement of legacy sales commissions due to a third-party vendor which were settled with a cash payment of $ 1,100 during the three-months ended december 31 , 2019. the remaining settlements related to legacy accounts payable deemed to no longer be legal obligations to vendors . in 2018 , the company settled and or wrote off obligations of $ 313 for $ 58 cash payment and recognized a gain of $ 255. this obligation included $ 30 of accrued wage labor liabilities no longer anticipated to be pursued against the company . 26 debt conversion expense the company recorded debt conversion expense of $ 5,055 in connection with issuance of incentive shares issued upon conversion of the convertible promissory notes into common stock on november 19 , 2018 in conjunction with the public offering . see note 9 loans payable to the consolidated financial statements . there was no such corresponding activity and expense in 2019. dividends on preferred stock the company issued common stock dividends on series a convertible preferred stock of $ 345 during the year-ended december 31 , 2018. there was no outstanding preferred stock in 2019 and no such dividends were issued during the year-ended december 31 , 2019. preferred stock conversion expense the company recorded preferred stock conversion expense of $ 3,932 , which is reflected as a loss to common shareholders , in connection with issuance of incentive shares issued upon conversion of the series a preferred stock into common stock on november 19 , 2018 in conjunction with the public offering . see note 13 convertible preferred stock to the consolidated financial statements . there was no such corresponding activity and expense in 2019. summary unaudited quarterly financial information the following represents unaudited financial information derived from the company 's annual and quarterly financial statements : replace_table_token_2_th replace_table_token_3_th supplemental operating results on a non-gaap basis the following non-gaap data , which adjusts for the categories of expenses described below , is a non-gaap financial measure . our management believes that this non-gaap financial measure is useful information for investors , shareholders and other stakeholders of our company in gauging our results of operations on an ongoing basis . we believe that ebitda is a performance measure and not a liquidity measure , and therefore a reconciliation between net loss/income and ebitda and adjusted ebitda has been provided . ebitda should not be considered as an alternative to net loss/income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows , in each case as determined in accordance with gaap , or as a measure of liquidity . in addition , ebitda does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows . we do not intend the presentation of these non-gaap measures to be considered in isolation or as a substitute for results prepared in accordance with gaap . these non-gaap measures should be read only in conjunction with our consolidated financial statements prepared in accordance with gaap . 27 replace_table_token_4_th story_separator_special_tag 10pt `` > on november 9 , 2018 , slipstream extended the maturity date of our term loan and revolving loan to august 16 , 2020. in conjunction with the extension of the maturity date of our term loan , we agreed that the cash portion of the interest rate would increase from 8.0 % per annum to 10.0 % per annum effective july 1 , 2019 . 28 management believes that , based on ( i ) the extension of the maturity date on our term loan and revolving loans , and ( ii ) our operational forecast through 2021 , we can continue as a going concern through at least march 31 , 2021. however , given our net losses , cash used in operating activities and working capital deficit , we obtained a continued support letter from slipstream through march 31 , 2021. we can provide no assurance that our ongoing operational efforts will be successful which could have a material adverse effect on our results of operations and cash flows . see note 9 loans payable to the consolidated financial statements for an additional discussion of the company 's debt obligations . operating activities we do not currently generate positive cash flow . our operational costs have been greater than sales generated to date . as of december 31 , 2019 , we had an accumulated deficit of $ 35,643. the cash flows used in operating activities was ( $ 970 ) and ( $ 1,564 ) for the years ended december 31 , 2019 and 2018 , respectively . the majority of the cash consumed by operations for both periods was attributed to our net losses . for the years ended december 31 , 2019 and 2018 , our net loss attributable to common shareholders was $ ( 1,008 ) and ( $ 15,191 ) when adjusted for gain on settlements of obligations , respectively . included in our net losses were non-cash charges consisting of depreciation , amortization of debt discount related to convertible preferred stock / issued for debt-issuance costs , change in warrant liability , stock-based compensation
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1,032 | we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : ● initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; ● expand clinical trials for pur1800 focused on copd and lung cancer prevention ; ● continue preclinical studies of pur3100 for treatment of acute migraine to enable a phase 2 study start in early 2022 ● seek regulatory approval for our product candidates ; ● hire personnel to support our product development , commercialization and administrative efforts ; and ● advance the research and development related activities for inhaled therapeutic products in our pipeline . we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( “ cros ” ) to carry out our clinical development activities and third-party contract manufacturing organizations ( “ cmos ” ) to carry out our clinical manufacturing activities as we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . recent developments license , development and commercialization agreement with jjei on december 26 , 2019 , we entered into a license , development and commercialization agreement ( the “ jjei license agreement ” ) with johnson & johnson enterprise innovation , inc. ( “ jjei ” ) . under the terms of the jjei license agreement , we have granted jjei an option to acquire ( 1 ) the company 's rights to an intellectual property portfolio of materials and technology related to narrow spectrum kinase inhibitor compounds ( the “ licensed product ” ) and ( 2 ) an exclusive , worldwide , royalty bearing license to pur1800 , our inhaled isperse drug delivery system as formulated with one of the kinase inhibitor compounds . we will conduct a clinical and chronic toxicology program in 2021 focused on copd and lung cancer interception . 30 as consideration for our entry into the jjei license agreement , jjei paid an upfront fee of $ 7.2 million to conduct the research on the phase 1b clinical study and will also fund $ 3.4 million for the toxicology study costs . we are also eligible to earn a $ 2.0 million milestone payment for the completion of the phase 1b study of the licensed product . if jjei exercises the license option under the jjei license agreement , pulmatrix is also eligible to receive a $ 14.0 million option exercise payment , up to an additional $ 32.0 million in development milestone payments , $ 45.0 million in commercial milestones , as well as royalty payments ranging from 1 % to 2 % of sales . under the terms of the jjei license agreement , jjei will have three months from the later of ( 1 ) the completion of a phase 1b clinical study for the licensed product and jjei 's receipt of audited final reports and ( 2 ) jjei 's receipt of audited draft reports for a toxicology study of the licensed product to exercise the option . if the option is not exercised , we may terminate the jjei license agreement by providing a 30-day written notice , and all licenses will revert back to pulmatrix . the agreement may otherwise be terminated by jjei for any reason upon 90 days advance notice , or upon notice of our entering into insolvency or bankruptcy proceedings . either party may terminate the agreement for material breach of contract that is not cured within 60 days . in february 2021 , the first patient was dosed in the phase 1b safety , tolerability and biomarker study that will enroll 15 patients with stable moderate-severe copd . the phase 1b study will be randomized and double-blind and will include 14 days of daily dosing with a 28 day follow up period . the covid-19 pandemic could delay enrollment to the extent patients remain or become subject to government “ stay at home ” mandates , patients feel like they can not safely visit trial sites or patients drop out due issues related to covid-19 . development and commercialization agreement with cipla on april 15 , 2019 , we entered into a development and commercialization agreement ( the “ cipla agreement ” ) with cipla technologies llc ( “ cipla ” ) for the co-development and commercialization , on a worldwide exclusive basis , of pulmazole , our inhaled isperse drug delivery system enabled formulation of the antifungal drug , itraconazole , for the treatment of all pulmonary indications , including abpa in patients with asthma . story_separator_special_tag however , certain adjustments to the right-of-use asset may be required for items , such as incentives received . the interest rate implicit in lease contracts is typically not readily determinable . as a result , we utilize our incremental borrowing rates , which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment . goodwill goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired , and liabilities assumed under the acquisition method of accounting for push-down accounting . goodwill is not amortized but is evaluated for impairment within our single reporting unit on an annual basis during the fourth quarter , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below our carrying amount . when performing the impairment assessment , the accounting standard for testing goodwill for impairment permits a company to first assess the qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill is impaired . if we believe , as a result of the qualitative assessment , that it is more likely than not that the fair value of goodwill is impaired , we must perform a quantitative analysis to determine if the carrying value of the goodwill exceeds the fair value of the company . based on a quantitative analysis , goodwill was not deemed to be impaired as of december 31 , 2020. based on a qualitative and quantitative analysis performed at the end of 2019 , goodwill was deemed impaired and a charge of $ 7.3 million was recorded as of december 31 , 2019 . 34 basic and diluted net loss per share basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period . diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period . in periods in which we report a net loss , diluted net loss per share is the same as basic net loss per share because common stock equivalents are excluded as their inclusion would be anti-dilutive . income taxes income taxes are recorded in accordance with financial accounting standards board , or fasb , accounting standards codification , or asc , topic 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse . a valuation allowance is provided if , based upon the weight of available evidence , it is more likely than not that some or all of the net deferred tax assets will not be realized . we account for uncertain tax positions in accordance with the provisions of asc 740. when uncertain tax positions exist , we recognize the tax benefit of tax positions to the extent that the benefit will more likely than not be realized . the determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position , as well as consideration of the available facts and circumstances . as of december 31 , 2020 , and 2019 , we did not have any significant uncertain tax positions . we recognize interest and penalties related to uncertain tax positions in income tax expense . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table sets forth our results of operations for each of the periods set forth below ( in thousands ) : replace_table_token_1_th revenue — revenue was $ 12.6 million for the year ended december 31 , 2020 as compared to $ 7.9 million for the year ended december 31 , 2019 , an increase of $ 4.7 million . the increase resulted from an increase in revenue recorded of $ 6.9 million as a result of the jjei license agreement which was executed in late 2019 and includes reimbursement of pass-through expenses , partially offset by a decrease in revenue recorded of $ 2.2 million as a result of the cipla agreement . research and development expenses — research and development expense was $ 15.6 million for the year ended december 31 , 2020 as compared to $ 12.8 million for the year ended december 31 , 2019 an increase of $ 2.8 million . the increase was primarily due to increased spending on manufacturing , clinical , and preclinical study costs of $ 4.4 million and $ 0.3 million , on the pur1800 and pur3100 programs , respectively , $ 1.1 million on employment costs in support of our programs , $ 0.6 million in allocated fixed expenses and lab services which were partially offset by a decrease of $ 3.6 million on the phase 2 pulmazole clinical trial costs . general and administrative expenses — general and administrative expense was $ 6.9 million for the year ended december 31 , 2020 , compared to $ 8.5 million for the year ended december 31 , 2019 , a decrease of $ 1.6 million the decrease was primarily due to decreased employment costs of $ 1.2 million because of lower share-based compensation expense and salary costs , $ 0.1 million in patent and legal expenses and $ 0.3 million of a milestone payment to the cfft made in 2019. impairment of goodwill — in 2020
| cash flows from financing activities net cash provided by financing activities for the year ended december 31 , 2020 was $ 21.0 million and was due to the issuance of common stock in two capital raises , exercises of warrants , pre-funded warrants and stock options . net cash provided by financing activities for the year ended december 31 , 2019 was $ 17.7 million and was due to the issuance of common stock in multiple capital raises during the first half of 2019 and the exercise of pre-funded warrants . financings based on our planned use for our existing cash resources , we believe that our available funds will enable us to support administrative , preclinical , clinical , and chemistry manufacturing and control activities in support our programs for at least 12 months following the filing date of this annual report on form 10-k. we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from financing activities net cash provided by financing activities for the year ended december 31 , 2020 was $ 21.0 million and was due to the issuance of common stock in two capital raises , exercises of warrants , pre-funded warrants and stock options . net cash provided by financing activities for the year ended december 31 , 2019 was $ 17.7 million and was due to the issuance of common stock in multiple capital raises during the first half of 2019 and the exercise of pre-funded warrants . financings based on our planned use for our existing cash resources , we believe that our available funds will enable us to support administrative , preclinical , clinical , and chemistry manufacturing and control activities in support our programs for at least 12 months following the filing date of this annual report on form 10-k. we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements .
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Suspicious Activity Report : we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : ● initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; ● expand clinical trials for pur1800 focused on copd and lung cancer prevention ; ● continue preclinical studies of pur3100 for treatment of acute migraine to enable a phase 2 study start in early 2022 ● seek regulatory approval for our product candidates ; ● hire personnel to support our product development , commercialization and administrative efforts ; and ● advance the research and development related activities for inhaled therapeutic products in our pipeline . we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( “ cros ” ) to carry out our clinical development activities and third-party contract manufacturing organizations ( “ cmos ” ) to carry out our clinical manufacturing activities as we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . recent developments license , development and commercialization agreement with jjei on december 26 , 2019 , we entered into a license , development and commercialization agreement ( the “ jjei license agreement ” ) with johnson & johnson enterprise innovation , inc. ( “ jjei ” ) . under the terms of the jjei license agreement , we have granted jjei an option to acquire ( 1 ) the company 's rights to an intellectual property portfolio of materials and technology related to narrow spectrum kinase inhibitor compounds ( the “ licensed product ” ) and ( 2 ) an exclusive , worldwide , royalty bearing license to pur1800 , our inhaled isperse drug delivery system as formulated with one of the kinase inhibitor compounds . we will conduct a clinical and chronic toxicology program in 2021 focused on copd and lung cancer interception . 30 as consideration for our entry into the jjei license agreement , jjei paid an upfront fee of $ 7.2 million to conduct the research on the phase 1b clinical study and will also fund $ 3.4 million for the toxicology study costs . we are also eligible to earn a $ 2.0 million milestone payment for the completion of the phase 1b study of the licensed product . if jjei exercises the license option under the jjei license agreement , pulmatrix is also eligible to receive a $ 14.0 million option exercise payment , up to an additional $ 32.0 million in development milestone payments , $ 45.0 million in commercial milestones , as well as royalty payments ranging from 1 % to 2 % of sales . under the terms of the jjei license agreement , jjei will have three months from the later of ( 1 ) the completion of a phase 1b clinical study for the licensed product and jjei 's receipt of audited final reports and ( 2 ) jjei 's receipt of audited draft reports for a toxicology study of the licensed product to exercise the option . if the option is not exercised , we may terminate the jjei license agreement by providing a 30-day written notice , and all licenses will revert back to pulmatrix . the agreement may otherwise be terminated by jjei for any reason upon 90 days advance notice , or upon notice of our entering into insolvency or bankruptcy proceedings . either party may terminate the agreement for material breach of contract that is not cured within 60 days . in february 2021 , the first patient was dosed in the phase 1b safety , tolerability and biomarker study that will enroll 15 patients with stable moderate-severe copd . the phase 1b study will be randomized and double-blind and will include 14 days of daily dosing with a 28 day follow up period . the covid-19 pandemic could delay enrollment to the extent patients remain or become subject to government “ stay at home ” mandates , patients feel like they can not safely visit trial sites or patients drop out due issues related to covid-19 . development and commercialization agreement with cipla on april 15 , 2019 , we entered into a development and commercialization agreement ( the “ cipla agreement ” ) with cipla technologies llc ( “ cipla ” ) for the co-development and commercialization , on a worldwide exclusive basis , of pulmazole , our inhaled isperse drug delivery system enabled formulation of the antifungal drug , itraconazole , for the treatment of all pulmonary indications , including abpa in patients with asthma . story_separator_special_tag however , certain adjustments to the right-of-use asset may be required for items , such as incentives received . the interest rate implicit in lease contracts is typically not readily determinable . as a result , we utilize our incremental borrowing rates , which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment . goodwill goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired , and liabilities assumed under the acquisition method of accounting for push-down accounting . goodwill is not amortized but is evaluated for impairment within our single reporting unit on an annual basis during the fourth quarter , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below our carrying amount . when performing the impairment assessment , the accounting standard for testing goodwill for impairment permits a company to first assess the qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill is impaired . if we believe , as a result of the qualitative assessment , that it is more likely than not that the fair value of goodwill is impaired , we must perform a quantitative analysis to determine if the carrying value of the goodwill exceeds the fair value of the company . based on a quantitative analysis , goodwill was not deemed to be impaired as of december 31 , 2020. based on a qualitative and quantitative analysis performed at the end of 2019 , goodwill was deemed impaired and a charge of $ 7.3 million was recorded as of december 31 , 2019 . 34 basic and diluted net loss per share basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period . diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period . in periods in which we report a net loss , diluted net loss per share is the same as basic net loss per share because common stock equivalents are excluded as their inclusion would be anti-dilutive . income taxes income taxes are recorded in accordance with financial accounting standards board , or fasb , accounting standards codification , or asc , topic 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse . a valuation allowance is provided if , based upon the weight of available evidence , it is more likely than not that some or all of the net deferred tax assets will not be realized . we account for uncertain tax positions in accordance with the provisions of asc 740. when uncertain tax positions exist , we recognize the tax benefit of tax positions to the extent that the benefit will more likely than not be realized . the determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position , as well as consideration of the available facts and circumstances . as of december 31 , 2020 , and 2019 , we did not have any significant uncertain tax positions . we recognize interest and penalties related to uncertain tax positions in income tax expense . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table sets forth our results of operations for each of the periods set forth below ( in thousands ) : replace_table_token_1_th revenue — revenue was $ 12.6 million for the year ended december 31 , 2020 as compared to $ 7.9 million for the year ended december 31 , 2019 , an increase of $ 4.7 million . the increase resulted from an increase in revenue recorded of $ 6.9 million as a result of the jjei license agreement which was executed in late 2019 and includes reimbursement of pass-through expenses , partially offset by a decrease in revenue recorded of $ 2.2 million as a result of the cipla agreement . research and development expenses — research and development expense was $ 15.6 million for the year ended december 31 , 2020 as compared to $ 12.8 million for the year ended december 31 , 2019 an increase of $ 2.8 million . the increase was primarily due to increased spending on manufacturing , clinical , and preclinical study costs of $ 4.4 million and $ 0.3 million , on the pur1800 and pur3100 programs , respectively , $ 1.1 million on employment costs in support of our programs , $ 0.6 million in allocated fixed expenses and lab services which were partially offset by a decrease of $ 3.6 million on the phase 2 pulmazole clinical trial costs . general and administrative expenses — general and administrative expense was $ 6.9 million for the year ended december 31 , 2020 , compared to $ 8.5 million for the year ended december 31 , 2019 , a decrease of $ 1.6 million the decrease was primarily due to decreased employment costs of $ 1.2 million because of lower share-based compensation expense and salary costs , $ 0.1 million in patent and legal expenses and $ 0.3 million of a milestone payment to the cfft made in 2019. impairment of goodwill — in 2020
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1,033 | we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . 37 recent developments on october 20 , 2017 , we completed our acquisition of cornerstone bancorp ( “ cornerstone ” ) and its wholly-owned subsidiary , cornerstone national bank . under the terms of the merger agreement , cornerstone shareholders received either $ 11.00 in cash or 0.54 shares of the company 's common stock , or a combination thereof , for each share of cornerstone common stock they owned immediately prior to the merger , subject to the limitation that 30 % of the outstanding shares of cornerstone common stock were exchanged for cash and 70 % of the outstanding shares of cornerstone common stock were exchanged for shares of the company 's common stock . the company issued 877,318 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . allowance for loan losses we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . goodwill and other intangibles goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . an impairment loss is recognized to the extent that the carrying amount exceeds the asset 's fair value . qualitative factors are assessed to first determine if it is more likely than not ( more than 50 % ) that the carrying value of goodwill is less than fair value . these qualitative factors include but are not limited to overall deterioration in general economic conditions , industry and market conditions , and overall financial performance . if determined that it is more likely than not that there has been a deterioration in the fair value of the carrying value than the first of a two-step process would be performed . the first step , used to identify potential impairment , involves comparing each reporting unit 's estimated fair value to its carrying value , including goodwill . if the estimated fair value of a reporting unit exceeds its carrying value , goodwill is considered not to be impaired . if the carrying value exceeds estimated fair value , there is an indication of potential impairment and the second step is performed to measure the amount of impairment . if required , the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment . the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , by measuring the excess of the estimated fair value of the reporting unit , as determined in the first step , over the aggregate estimated fair values of the individual assets , liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination . if the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit , there is no impairment . if the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying value of goodwill assigned to a reporting unit , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . management has determined that the company has four reporting units ( see note 24 to the consolidated financial statements ) . story_separator_special_tag based on the many factors and assumptions used in simulating the effect of changes in interest rates , the following table estimates the hypothetical percentage change in net interest income at december 31 , 2017 and 2016 over the subsequent 12 months . at december 31 , 2017 , we are slightly liability sensitive over the first three month period and over the balance of a twelve month period are asset sensitive on a cumulative basis . as a result , our modeling reflects modest decline in our net interest income in a rising rate environment over the first twelve months . this negative impact of rising rates reverses and net interest income is favorably impacted over a twenty four month period . in a declining rate environment , the model reflects a decline in net interest income . this primarily results from the current level of interest rates being paid on our interest bearing transaction accounts as well as money market accounts . the interest rates on these accounts are at a level where they can not be repriced in proportion to the change in interest rates . the increase and decrease of 100 and 200 basis points , respectively , reflected in the table below assume a simultaneous and parallel change in interest rates along the entire yield curve . net interest income sensitivity replace_table_token_8_th 44 we perform a valuation analysis projecting future cash flows from assets and liabilities to determine the present value of equity ( “ pve ” ) over a range of changes in market interest rates . the sensitivity of pve to changes in interest rates is a measure of the sensitivity of earnings over a longer time horizon . at december 31 , 2017 and 2016 , the pve exposure in a plus 200 basis point increase in market interest rates was estimated to be ( 0.09 ) % and 0.78 % , respectively . provision and allowance for loan losses at december 31 , 2017 , the allowance for loan losses amounted to $ 5.8 million , or 0.90 % of loans ( excludes loans held for sale ) , as compared $ 5.2 million , or 0.95 % of loans , at december 31 , 2016. loans that were acquired in the acquisition of cornerstone in 2017 and savannah river in 2014 are accounted for under financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 310-30. these acquired loans are initially measured at fair value , which includes estimated future credit losses expected to be incurred over the life of the loans . the credit component on loans related to cash flows not expected to be collected is not subsequently accreted ( non-accretable difference ) into interest income . any remaining portion representing the excess of a loan 's or pool 's cash flows expected to be collected over the fair value is accreted ( accretable difference ) into interest income . subsequent to the acquisition date , increases in cash flows expected to be received in excess of the company 's initial estimates are reclassified from non-accretable difference to accretable difference and are accreted into interest income on a level-yield basis over the remaining life of the loan . decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses . during 2017 and 2016 , there were no adjustments to our initial estimates or impairments recorded on purchased loans . the recorded investment in loans acquired in the cornerstone and savannah river transactions at december 31 , 2017 and 2016 amounted to approximately $ 101.8 million and $ 57.1 million , respectively . december 31 , 2017 and 2016 , the credit component on loans attributable to these acquired loans was $ 1.5 million and $ 334 thousand , respectively . our provision for loan loss was $ 530 thousand for the year ended december 31 , 2017 , as compared to $ 774 thousand and $ 1.1 million for the years ended december 31 , 2016 and 2015 , respectively . the provision is made based on our assessment of general loan loss risk and asset quality . the allowance for loan losses represents an amount which we believe will be adequate to absorb probable losses on existing loans that may become uncollectible . our judgment as to the adequacy of the allowance for loan losses is based on a number of assumptions about future events , which we believe to be reasonable , but which may or may not prove to be accurate . our determination of the allowance for loan losses is based on evaluations of the collectability of loans , including consideration of factors such as the balance of impaired loans , the quality , mix , and size of our overall loan portfolio , economic conditions that may affect the borrower 's ability to repay , the amount and quality of collateral securing the loans , our historical loan loss experience , and a review of specific problem loans . we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess
| liquidity management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time .
| 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. |
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 management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time .
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Suspicious Activity Report : we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . 37 recent developments on october 20 , 2017 , we completed our acquisition of cornerstone bancorp ( “ cornerstone ” ) and its wholly-owned subsidiary , cornerstone national bank . under the terms of the merger agreement , cornerstone shareholders received either $ 11.00 in cash or 0.54 shares of the company 's common stock , or a combination thereof , for each share of cornerstone common stock they owned immediately prior to the merger , subject to the limitation that 30 % of the outstanding shares of cornerstone common stock were exchanged for cash and 70 % of the outstanding shares of cornerstone common stock were exchanged for shares of the company 's common stock . the company issued 877,318 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . allowance for loan losses we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . goodwill and other intangibles goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . an impairment loss is recognized to the extent that the carrying amount exceeds the asset 's fair value . qualitative factors are assessed to first determine if it is more likely than not ( more than 50 % ) that the carrying value of goodwill is less than fair value . these qualitative factors include but are not limited to overall deterioration in general economic conditions , industry and market conditions , and overall financial performance . if determined that it is more likely than not that there has been a deterioration in the fair value of the carrying value than the first of a two-step process would be performed . the first step , used to identify potential impairment , involves comparing each reporting unit 's estimated fair value to its carrying value , including goodwill . if the estimated fair value of a reporting unit exceeds its carrying value , goodwill is considered not to be impaired . if the carrying value exceeds estimated fair value , there is an indication of potential impairment and the second step is performed to measure the amount of impairment . if required , the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment . the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , by measuring the excess of the estimated fair value of the reporting unit , as determined in the first step , over the aggregate estimated fair values of the individual assets , liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination . if the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit , there is no impairment . if the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying value of goodwill assigned to a reporting unit , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . management has determined that the company has four reporting units ( see note 24 to the consolidated financial statements ) . story_separator_special_tag based on the many factors and assumptions used in simulating the effect of changes in interest rates , the following table estimates the hypothetical percentage change in net interest income at december 31 , 2017 and 2016 over the subsequent 12 months . at december 31 , 2017 , we are slightly liability sensitive over the first three month period and over the balance of a twelve month period are asset sensitive on a cumulative basis . as a result , our modeling reflects modest decline in our net interest income in a rising rate environment over the first twelve months . this negative impact of rising rates reverses and net interest income is favorably impacted over a twenty four month period . in a declining rate environment , the model reflects a decline in net interest income . this primarily results from the current level of interest rates being paid on our interest bearing transaction accounts as well as money market accounts . the interest rates on these accounts are at a level where they can not be repriced in proportion to the change in interest rates . the increase and decrease of 100 and 200 basis points , respectively , reflected in the table below assume a simultaneous and parallel change in interest rates along the entire yield curve . net interest income sensitivity replace_table_token_8_th 44 we perform a valuation analysis projecting future cash flows from assets and liabilities to determine the present value of equity ( “ pve ” ) over a range of changes in market interest rates . the sensitivity of pve to changes in interest rates is a measure of the sensitivity of earnings over a longer time horizon . at december 31 , 2017 and 2016 , the pve exposure in a plus 200 basis point increase in market interest rates was estimated to be ( 0.09 ) % and 0.78 % , respectively . provision and allowance for loan losses at december 31 , 2017 , the allowance for loan losses amounted to $ 5.8 million , or 0.90 % of loans ( excludes loans held for sale ) , as compared $ 5.2 million , or 0.95 % of loans , at december 31 , 2016. loans that were acquired in the acquisition of cornerstone in 2017 and savannah river in 2014 are accounted for under financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 310-30. these acquired loans are initially measured at fair value , which includes estimated future credit losses expected to be incurred over the life of the loans . the credit component on loans related to cash flows not expected to be collected is not subsequently accreted ( non-accretable difference ) into interest income . any remaining portion representing the excess of a loan 's or pool 's cash flows expected to be collected over the fair value is accreted ( accretable difference ) into interest income . subsequent to the acquisition date , increases in cash flows expected to be received in excess of the company 's initial estimates are reclassified from non-accretable difference to accretable difference and are accreted into interest income on a level-yield basis over the remaining life of the loan . decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses . during 2017 and 2016 , there were no adjustments to our initial estimates or impairments recorded on purchased loans . the recorded investment in loans acquired in the cornerstone and savannah river transactions at december 31 , 2017 and 2016 amounted to approximately $ 101.8 million and $ 57.1 million , respectively . december 31 , 2017 and 2016 , the credit component on loans attributable to these acquired loans was $ 1.5 million and $ 334 thousand , respectively . our provision for loan loss was $ 530 thousand for the year ended december 31 , 2017 , as compared to $ 774 thousand and $ 1.1 million for the years ended december 31 , 2016 and 2015 , respectively . the provision is made based on our assessment of general loan loss risk and asset quality . the allowance for loan losses represents an amount which we believe will be adequate to absorb probable losses on existing loans that may become uncollectible . our judgment as to the adequacy of the allowance for loan losses is based on a number of assumptions about future events , which we believe to be reasonable , but which may or may not prove to be accurate . our determination of the allowance for loan losses is based on evaluations of the collectability of loans , including consideration of factors such as the balance of impaired loans , the quality , mix , and size of our overall loan portfolio , economic conditions that may affect the borrower 's ability to repay , the amount and quality of collateral securing the loans , our historical loan loss experience , and a review of specific problem loans . we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess
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1,034 | ( 2 ) rent is presented on a cash basis and consists of base minimum rent and common area costs . lease spread metrics the following table summarizes signed leases compared to expiring leases in the same suite , for leases where ( 1 ) the downtime between new and previous tenant was less than 24 months , ( 2 ) the occupied space between the previous tenant and new tenant did not change by more than 10,000 square feet and ( 3 ) the new lease term is at least a year . replace_table_token_18_th _ ( 1 ) represents initial annual rent over the lease consisting of base minimum rent and common area maintenance . ( 2 ) represents expiring rent at end of lease consisting of base minimum rent and common area maintenance . year ended december 31 , 2018 and 2017 the following table is a breakout of the components of minimum rents : replace_table_token_19_th base minimum rents decreased $ 175.5 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 158.3 million decrease in permanent base minimum rents during 2018 compared to 2017 . in addition , the disposition of three operating properties during 2017 resulted in a $ 9.0 million decrease in base minimum rents . tenant recoveries decreased $ 103.2 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter 2018. the joint ventures resulted in $ 85.6 million decrease in tenant recoveries during 2018 compared to 2017 . 32 in addition , the disposition of three operating properties during 2017 resulted in a $ 6.0 million decrease in tenant recoveries during 2018 compared to 2017 . management fees and other corporate revenues increased $ 20.6 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 13.4 million increase in property management fees . in addition , property and asset management fees related to the seritage joint venture increased by $ 11.0 million in 2018 compared to 2017 ( note 3 ) . real estate taxes decreased $ 16.0 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 28.5 million decrease in real estate taxes during 2018 compared to 2017 . this was partially offset by 218 west 57th street , 530 fifth avenue and 685 fifth avenue becoming consolidated properties during the third quarter of 2017. this resulted in a $ 5.1 million increase in 2018 compared to 2017. property management and other costs increased $ 27.3 million primarily due to an increase in salaries and bonuses , corporate office rent and management fees . provision for impairment of $ 45.9 million is related to impairment charges recorded on one operating property ( note 2 ) . depreciation and amortization decreased $ 60.3 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 ( note 3 ) . interest expense increased $ 34.8 million primarily due to a $ 85.5 million increase in interest expense on the new credit agreement entered into during the third quarter of 2018 ( note 6 ) . in addition , 218 west 57th street , 530 fifth avenue and 685 fifth avenue became consolidated properties during the third quarter of 2017. this resulted in a $ 19.6 million increase in interest expense during 2018 compared to 2017. this was partially offset by the joint venture transactions related to the bpy transaction in the third quarter of 2018. this resulted in a $ 72.2 million decrease in interest expense during 2018 compared to 2017 ( note 3 ) . the gain from changes in control of investment properties and other , net of $ 3.1 billion during 2018 relates to the joint venture transactions related to the bpy transaction in the third quarter of 2018 , the sale of an anchor box at the oaks mall , the sale of commercial office unit at 685 fifth avenue , the sale of a 49 % interest in fashion place , and the sale of a 49.9 % joint venture interest in the sears box at oakbrook center ( note 3 ) . the gain on extinguishment of debt during 2018 primarily relates to one property which was conveyed to the lender in full satisfaction of the debt ( note 3 ) . benefit from income taxes increased $ 583.3 million during 2018 primarily due to the recognition of deferred taxes related to certain transactions effectuated in the bpy transaction ( note 3 ) . equity in income of unconsolidated real estate affiliates decreased by $ 66.2 million primarily due to a decrease in income recognition on condominiums and demolition work at one property and income related to joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 ( note 3 ) . unconsolidated real estate affiliates - gain on investment of $ 487.2 million during 2018 is due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 and the sale of a portion of our interest in aeropostale ( note 3 ) . 33 year ended december 31 , 2017 and 2016 the following table is a breakout of the components of minimum rents : replace_table_token_20_th base minimum rents decreased by $ 7.6 million primarily due to our sale of a 50 % interest in fashion show during the third quarter of 2016. this resulted in $ 45.0 million less base minimum rents during 2017 compared to 2016 as the property is now accounted for as unconsolidated real estate affiliates . story_separator_special_tag specifically , the `` if vacant `` value of the buildings and equipment was calculated using a cost approach utilizing published guidelines for current replacement cost or actual construction costs for similar , recently developed properties ; and an income approach . assumptions used in the income approach to the value of buildings include : capitalization and discount rates , lease-up time , market rents , make ready costs , land value , and site improvement value . the estimated fair value of in-place tenant leases includes lease origination costs ( the costs we would have incurred to lease the property to the current occupancy level of the property ) and the lost revenues during the period necessary to lease-up from vacant to the current occupancy level . such estimates include the fair value of leasing commissions , legal costs and tenant coordination 40 costs that would be incurred to lease the property to this occupancy level . additionally , we evaluate the time period over which such occupancy level would be achieved and include an estimate of the net operating costs ( primarily real estate taxes , insurance and utilities ) incurred during the lease-up period , which generally ranges up to one year . the fair value of acquired in-place tenant leases is included in the balance of buildings and equipment and amortized over the remaining lease term for each tenant . identifiable intangible assets and liabilities are calculated for above-market and below-market tenant and ground leases where we are either the lessor or the lessee . the difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases , including significantly below-market renewal options for which exercise of the renewal option appears to be reasonably assured . the remaining term of leases with renewal options at terms significantly below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term . the above-market tenant leases and below-market ground leases are included in prepaid expenses and other assets ( note 15 ) ; the below-market tenant leases , above-market ground leases and above-market headquarters office lease are included in accounts payable and accrued expenses ( note 16 ) in our consolidated balance sheets . investments in unconsolidated real estate affiliates ( note 5 ) we account for investments in joint ventures where we own a non-controlling joint interest using either the equity method or the cost method . if we have significant influence but not control over the investment , we utilize the equity method . if we have neither control nor significant influence , we utilize the cost method . under the equity method , the cost of our investment is adjusted for our share of the earnings of such unconsolidated real estate affiliates from the date of acquisition , increased by our contributions and reduced by distributions received . under the cost method , the cost of our investment is not adjusted for our share of the earnings of such unconsolidated real estate affiliates from the date of acquisition and distributions are treated as earnings when received . to determine the method of accounting for partially owned joint ventures , we evaluate the characteristics of associated entities and determine whether an entity is a variable interest entity ( `` vie `` ) . a limited partnership or other similar entity is considered a vie unless a simple majority of limited partners ( excluding limited partners that are under common control with the general partner ) have substantive kick-out rights or participating rights . accounting guidance amended the following : ( i ) modified the evaluation of whether limited partnerships and similar legal entities are vies or voting interest entities , ( ii ) eliminated the presumption that a general partner should consolidate a limited partnership , ( iii ) affected the consolidation analysis of reporting entities that are involved with vies , and ( iv ) provided a scope exception for certain entities . if an entity is determined to be a vie , we determine which party is the primary beneficiary by analyzing whether we have both the power to direct the entity 's significant economic activities and the obligation to absorb potentially significant losses or receive potentially significant benefits . significant judgments and assumptions inherent in this analysis include the nature of the entity 's operations , future cash flow projections , the entity 's financing and capital structure , and contractual relationship and terms . primary risks associated with our vies include the potential of funding the entities ' debt obligations or making additional contributions to fund the entities ' operations . partially owned , non-variable interest joint ventures over which we have controlling financial interest are consolidated in our consolidated financial statements . in determining if we have a controlling financial interest , we consider factors such as ownership interest , authority to make decisions , kick-out rights and substantive participating rights . partially owned joint ventures where we do not have a controlling financial interest , but have the ability to exercise significant influence , are accounted for using the equity method . we continually analyze and assess reconsideration events , including changes in the factors mentioned above , to determine if the consolidation treatment remains appropriate . decisions regarding consolidation of partially owned entities frequently require significant judgment by our management . errors in the assessment of consolidation could result in material changes to our consolidated financial statements . revenue recognition and related matters minimum rents are recognized on a straight-line basis over the terms of the related operating leases , including the effect of any free rent periods . minimum rents also include lease termination income collected from tenants to allow for the tenant to vacate their space prior to their scheduled termination dates , as well as accretion related to above-market
| cash flows from operating activities net cash provided by operating activities was $ 584.5 million for the year ended december 31 , 2018 , $ 1,294.6 million for the year ended december 31 , 2017 , and $ 1,136.2 million for the year ended december 31 , 2016 . significant components of net cash provided by operating activities include : in 2018 , an increase in cash outflows from transaction expenses ; in 2017 , increase in distributions received from unconsolidated real estate affiliates ; and in 2017 , an increase in cash inflows from tenant recoveries . cash flows from investing activities net cash provided by ( used in ) investing activities was $ 2.7 billion for the year ended december 31 , 2018 , $ ( 855.3 ) million for the year ended december 31 , 2017 , and $ 521.4 million for the year ended december 31 , 2016 . significant components of net cash provided by ( used in ) investing activities include : 2018 activity proceeds from sales of investments properties and unconsolidated real estate affiliates , $ 3,050.3 million ; development of real estate and property improvements , $ ( 674.5 ) million ; net proceeds from distributions received from unconsolidated real estate in excess of income , $ 410.6 million ; contributions to unconsolidated real estate affiliates , $ ( 218.0 ) million ; and proceeds from repayment of loans to joint ventures and joint venture partners , $ 204.9 million .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from operating activities net cash provided by operating activities was $ 584.5 million for the year ended december 31 , 2018 , $ 1,294.6 million for the year ended december 31 , 2017 , and $ 1,136.2 million for the year ended december 31 , 2016 . significant components of net cash provided by operating activities include : in 2018 , an increase in cash outflows from transaction expenses ; in 2017 , increase in distributions received from unconsolidated real estate affiliates ; and in 2017 , an increase in cash inflows from tenant recoveries . cash flows from investing activities net cash provided by ( used in ) investing activities was $ 2.7 billion for the year ended december 31 , 2018 , $ ( 855.3 ) million for the year ended december 31 , 2017 , and $ 521.4 million for the year ended december 31 , 2016 . significant components of net cash provided by ( used in ) investing activities include : 2018 activity proceeds from sales of investments properties and unconsolidated real estate affiliates , $ 3,050.3 million ; development of real estate and property improvements , $ ( 674.5 ) million ; net proceeds from distributions received from unconsolidated real estate in excess of income , $ 410.6 million ; contributions to unconsolidated real estate affiliates , $ ( 218.0 ) million ; and proceeds from repayment of loans to joint ventures and joint venture partners , $ 204.9 million .
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Suspicious Activity Report : ( 2 ) rent is presented on a cash basis and consists of base minimum rent and common area costs . lease spread metrics the following table summarizes signed leases compared to expiring leases in the same suite , for leases where ( 1 ) the downtime between new and previous tenant was less than 24 months , ( 2 ) the occupied space between the previous tenant and new tenant did not change by more than 10,000 square feet and ( 3 ) the new lease term is at least a year . replace_table_token_18_th _ ( 1 ) represents initial annual rent over the lease consisting of base minimum rent and common area maintenance . ( 2 ) represents expiring rent at end of lease consisting of base minimum rent and common area maintenance . year ended december 31 , 2018 and 2017 the following table is a breakout of the components of minimum rents : replace_table_token_19_th base minimum rents decreased $ 175.5 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 158.3 million decrease in permanent base minimum rents during 2018 compared to 2017 . in addition , the disposition of three operating properties during 2017 resulted in a $ 9.0 million decrease in base minimum rents . tenant recoveries decreased $ 103.2 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter 2018. the joint ventures resulted in $ 85.6 million decrease in tenant recoveries during 2018 compared to 2017 . 32 in addition , the disposition of three operating properties during 2017 resulted in a $ 6.0 million decrease in tenant recoveries during 2018 compared to 2017 . management fees and other corporate revenues increased $ 20.6 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 13.4 million increase in property management fees . in addition , property and asset management fees related to the seritage joint venture increased by $ 11.0 million in 2018 compared to 2017 ( note 3 ) . real estate taxes decreased $ 16.0 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018. the joint ventures resulted in a $ 28.5 million decrease in real estate taxes during 2018 compared to 2017 . this was partially offset by 218 west 57th street , 530 fifth avenue and 685 fifth avenue becoming consolidated properties during the third quarter of 2017. this resulted in a $ 5.1 million increase in 2018 compared to 2017. property management and other costs increased $ 27.3 million primarily due to an increase in salaries and bonuses , corporate office rent and management fees . provision for impairment of $ 45.9 million is related to impairment charges recorded on one operating property ( note 2 ) . depreciation and amortization decreased $ 60.3 million primarily due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 ( note 3 ) . interest expense increased $ 34.8 million primarily due to a $ 85.5 million increase in interest expense on the new credit agreement entered into during the third quarter of 2018 ( note 6 ) . in addition , 218 west 57th street , 530 fifth avenue and 685 fifth avenue became consolidated properties during the third quarter of 2017. this resulted in a $ 19.6 million increase in interest expense during 2018 compared to 2017. this was partially offset by the joint venture transactions related to the bpy transaction in the third quarter of 2018. this resulted in a $ 72.2 million decrease in interest expense during 2018 compared to 2017 ( note 3 ) . the gain from changes in control of investment properties and other , net of $ 3.1 billion during 2018 relates to the joint venture transactions related to the bpy transaction in the third quarter of 2018 , the sale of an anchor box at the oaks mall , the sale of commercial office unit at 685 fifth avenue , the sale of a 49 % interest in fashion place , and the sale of a 49.9 % joint venture interest in the sears box at oakbrook center ( note 3 ) . the gain on extinguishment of debt during 2018 primarily relates to one property which was conveyed to the lender in full satisfaction of the debt ( note 3 ) . benefit from income taxes increased $ 583.3 million during 2018 primarily due to the recognition of deferred taxes related to certain transactions effectuated in the bpy transaction ( note 3 ) . equity in income of unconsolidated real estate affiliates decreased by $ 66.2 million primarily due to a decrease in income recognition on condominiums and demolition work at one property and income related to joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 ( note 3 ) . unconsolidated real estate affiliates - gain on investment of $ 487.2 million during 2018 is due to the joint ventures formed in conjunction with the bpy transaction in the third quarter of 2018 and the sale of a portion of our interest in aeropostale ( note 3 ) . 33 year ended december 31 , 2017 and 2016 the following table is a breakout of the components of minimum rents : replace_table_token_20_th base minimum rents decreased by $ 7.6 million primarily due to our sale of a 50 % interest in fashion show during the third quarter of 2016. this resulted in $ 45.0 million less base minimum rents during 2017 compared to 2016 as the property is now accounted for as unconsolidated real estate affiliates . story_separator_special_tag specifically , the `` if vacant `` value of the buildings and equipment was calculated using a cost approach utilizing published guidelines for current replacement cost or actual construction costs for similar , recently developed properties ; and an income approach . assumptions used in the income approach to the value of buildings include : capitalization and discount rates , lease-up time , market rents , make ready costs , land value , and site improvement value . the estimated fair value of in-place tenant leases includes lease origination costs ( the costs we would have incurred to lease the property to the current occupancy level of the property ) and the lost revenues during the period necessary to lease-up from vacant to the current occupancy level . such estimates include the fair value of leasing commissions , legal costs and tenant coordination 40 costs that would be incurred to lease the property to this occupancy level . additionally , we evaluate the time period over which such occupancy level would be achieved and include an estimate of the net operating costs ( primarily real estate taxes , insurance and utilities ) incurred during the lease-up period , which generally ranges up to one year . the fair value of acquired in-place tenant leases is included in the balance of buildings and equipment and amortized over the remaining lease term for each tenant . identifiable intangible assets and liabilities are calculated for above-market and below-market tenant and ground leases where we are either the lessor or the lessee . the difference between the contractual rental rates and our estimate of market rental rates is measured over a period equal to the remaining non-cancelable term of the leases , including significantly below-market renewal options for which exercise of the renewal option appears to be reasonably assured . the remaining term of leases with renewal options at terms significantly below market reflect the assumed exercise of such below-market renewal options and assume the amortization period would coincide with the extended lease term . the above-market tenant leases and below-market ground leases are included in prepaid expenses and other assets ( note 15 ) ; the below-market tenant leases , above-market ground leases and above-market headquarters office lease are included in accounts payable and accrued expenses ( note 16 ) in our consolidated balance sheets . investments in unconsolidated real estate affiliates ( note 5 ) we account for investments in joint ventures where we own a non-controlling joint interest using either the equity method or the cost method . if we have significant influence but not control over the investment , we utilize the equity method . if we have neither control nor significant influence , we utilize the cost method . under the equity method , the cost of our investment is adjusted for our share of the earnings of such unconsolidated real estate affiliates from the date of acquisition , increased by our contributions and reduced by distributions received . under the cost method , the cost of our investment is not adjusted for our share of the earnings of such unconsolidated real estate affiliates from the date of acquisition and distributions are treated as earnings when received . to determine the method of accounting for partially owned joint ventures , we evaluate the characteristics of associated entities and determine whether an entity is a variable interest entity ( `` vie `` ) . a limited partnership or other similar entity is considered a vie unless a simple majority of limited partners ( excluding limited partners that are under common control with the general partner ) have substantive kick-out rights or participating rights . accounting guidance amended the following : ( i ) modified the evaluation of whether limited partnerships and similar legal entities are vies or voting interest entities , ( ii ) eliminated the presumption that a general partner should consolidate a limited partnership , ( iii ) affected the consolidation analysis of reporting entities that are involved with vies , and ( iv ) provided a scope exception for certain entities . if an entity is determined to be a vie , we determine which party is the primary beneficiary by analyzing whether we have both the power to direct the entity 's significant economic activities and the obligation to absorb potentially significant losses or receive potentially significant benefits . significant judgments and assumptions inherent in this analysis include the nature of the entity 's operations , future cash flow projections , the entity 's financing and capital structure , and contractual relationship and terms . primary risks associated with our vies include the potential of funding the entities ' debt obligations or making additional contributions to fund the entities ' operations . partially owned , non-variable interest joint ventures over which we have controlling financial interest are consolidated in our consolidated financial statements . in determining if we have a controlling financial interest , we consider factors such as ownership interest , authority to make decisions , kick-out rights and substantive participating rights . partially owned joint ventures where we do not have a controlling financial interest , but have the ability to exercise significant influence , are accounted for using the equity method . we continually analyze and assess reconsideration events , including changes in the factors mentioned above , to determine if the consolidation treatment remains appropriate . decisions regarding consolidation of partially owned entities frequently require significant judgment by our management . errors in the assessment of consolidation could result in material changes to our consolidated financial statements . revenue recognition and related matters minimum rents are recognized on a straight-line basis over the terms of the related operating leases , including the effect of any free rent periods . minimum rents also include lease termination income collected from tenants to allow for the tenant to vacate their space prior to their scheduled termination dates , as well as accretion related to above-market
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1,035 | net sales of $ 22.7 million in 2014 increased 140.9 percent in comparison to $ 9.4 million in 2013 , primarily due to a $ 13.2 million increase in military maritime sales as a result of high-volume sales to a distributor for the u.s. navy . commercial sales increased $ 2.0 million , or 54.3 percent , in 2014 compared to 2013 , as we built our pipeline and began to penetrate our targeted commercial and industrial markets . the increase in commercial sales was offset by a decrease of $ 2.0 million in r & d services , as we shifted our focus away from research contracts and grants . international sales with the sale of cll , our subsidiary in the united kingdom , we no longer generate significant sales from customers outside the united states . international net sales accounted for less than 1.0 percent of net sales in 2015 and in 2014 , respectively . international net sales accounted for approximately 1.4 percent of net sales in 2013 . the effect of changes in currency exchange rates was not material in 2015 , 2014 , or 2013 , respectively . gross profit gross profit was $ 29.3 million , or 45.5 percent of net sales in 2015 , compared to $ 7.8 million , or 34.3 percent of net sales in 2014 . the increase resulted from our higher sales volume , engaging new suppliers to lower our product costs at increased sales volumes , performing value analysis/engineering processes , and our continued development of operating efficiencies . gross profit in 2014 increased $ 5.7 million over the gross profit of $ 2.1 million in 2013. the increase resulted from higher net sales due to a higher mix of commercial and military maritime products sales , compared to r & d services sales , which carry low to no gross margins . additionally , gross margins on our products improved 12.2 percentage points as a result of continuous development of efficiencies , improvements in our supply chain , and building our economies of scale from sales volume increases . operating expenses product development product development expenses include salaries , contractor and consulting fees , legal fees , supplies and materials , as well as overhead items , such as depreciation and facilities costs . product development costs are expensed as they are incurred . total government reimbursements are the combination of revenues and credits from government contracts . total gross and net product development spending , including credits from government contracts , is shown in the following table ( in thousands ) : replace_table_token_5_th gross product development expenses were $ 3.0 million in 2015 , a 74.0 percent increase compared to $ 1.7 million in 2014 . the increase resulted from higher outside testing and legal fees of approximately $ 541 thousand related to our proprietary commercial intellitube® product line , and higher salaries and related benefits of approximately $ 554 thousand due to hiring additional product engineers as we continue to dedicate resources toward the development of our led lighting technology products in the united states and taiwan . gross product development expenses in 2014 decreased 50.4 percent compared to $ 3.5 million in 2013 . the decrease resulted from focusing our resources exclusively on projects and contracts that support led technologies . 23 selling , general , and administrative selling , general , and administrative expenses were $ 16.8 million , or 26.1 percent of net sales in 2015 , compared to $ 7.8 million , or 34.5 percent of net sales in 2014 . the dollar increase resulted from incurring higher salaries and related benefits of approximately $ 2.0 million and higher recruiting fees of $ 548 thousand as we essentially doubled our sales force in 2015 compared to 2014 , higher consulting services of approximately $ 1.4 million as we seek to grow our business , higher commissions and bonus incentives of approximately $ 1.7 million related to higher sales and earnings , higher severance costs of $ 502 thousand , higher trade show and other marketing costs of approximately $ 478 thousand to support our continued growth , and higher legal and professional fees of approximately $ 463 thousand . selling , general , and administrative expenses in 2014 increased 21.8 percent from $ 6.4 million 2013 . the dollar increase resulted from higher salaries and related benefits , higher stock-based compensation , higher incentive bonuses and commissions , and higher recruiting costs due primarily to building our direct sales force . this was partially offset by lower severance charges , lower amortization expense , and lower project marketing costs . loss on impairment due to the sale of our pool products business in november 2013 and the closing of our facilities in pleasanton , california , we performed an evaluation of property and equipment located in california . in performing this review , we sought a buyer for the assets which we no longer had use , and recorded an impairment loss of $ 608 thousand . the impairment loss represented the difference between the fair value and the carrying value of the asset group . these assets were subsequently sold in 2014 for $ 130 thousand ; the carrying value of the assets after the impairment charge . change in estimate of contingent liabilities in connection with the acquisition of efls in december 2009 , we recorded a performance-related contingent obligation related to a 2.5 percent payout payable over 42 months commencing january 1 , 2010. the payout was based on the fair value of projected annual billings of the acquired business . we accrued for this contingent liability at its estimated fair value at the time of the acquisition . story_separator_special_tag when assets are sold or otherwise disposed of , the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statement of operations . refer to note 5 , `` property and equipment , `` included in item 8 for additional information . long-lived assets are reviewed for impairment whenever events or circumstances indicate the carrying amount may not be recoverable . events or circumstances that would result in an impairment review primarily include operations reporting losses , a significant change in the use of an asset , or the planned disposal or sale of the asset . the asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value . an impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value , as determined by quoted market prices ( if available ) or the present value of expected future cash flows . on december 31 , 2013 , we recorded an impairment charge of $ 608 thousand for assets that were held for sale at december 31 , 2013. these assets were subsequently sold in the first quarter of 2014 for $ 130 thousand , which was the carrying value after the impairment charge . valuation of inventories we state inventories at the lower of standard cost ( which approximates actual cost determined using the first-in-first-out method ) or market . we establish provisions for excess and obsolete inventories after evaluation of historical sales , current economic trends , forecasted sales , product lifecycles , and current inventory levels . during 2015 , 2014 , and 2013 , we charged $ 1.5 million , $ 194 thousand , and $ 146 thousand , respectively , to cost of sales from continuing operations for excess and obsolete inventories . adjustments to our estimates , such as forecasted sales and expected product lifecycles , could harm our operating results and financial position . accounting for income taxes 31 as part of the process of preparing the consolidated financial statements , we are required to estimate our income tax liability in each of the jurisdictions in which we do business . this process involves estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items , such as deferred revenues , for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included in our consolidated balance sheets . we then assess the likelihood of the deferred tax assets being recovered from future taxable income and , to the extent we believe it is more likely than not that the deferred tax assets will not be recovered , or is unknown , we establish a valuation allowance . significant management judgment is required in determining our provision for income taxes , deferred tax assets and liabilities , and any valuation allowance recorded against our deferred tax assets . at december 31 , 2015 and 2014 , we have recorded a full valuation allowance against our deferred tax assets in the united states due to uncertainties related to our ability to utilize our deferred tax assets , primarily consisting of certain net operating losses carried forward . the valuation allowance is based upon our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable . in considering the need for a valuation allowance , we assess all evidence , both positive and negative , available to determine whether all or some portion of the deferred tax assets will not be realized . such evidence includes , but is not limited to , recent earnings history , projections of future income or loss , reversal patterns of existing taxable and deductible temporary differences , and tax planning strategies . we continue to evaluate the need for a valuation allowance on a quarterly basis . as of december 31 , 2015 , we had net operating loss carry-forwards of approximately $ 69.1 million for federal , state , and local income tax purposes . however , due to changes in the company 's capital structure , approximately $ 14.8 million of this amount is available after the application of irc section 382 limitations . as a result of this limitation , in 2016 , we only expect to have approximately $ 6.0 million of the net operating loss carry-forward available for use . if not utilized , these carry-forwards will begin to expire in 2021 for federal and have begun to expire for state and local purposes . please refer to note 12 , `` income taxes , `` included in item 8 for additional information . share-based payments the cost of employee and director stock options and restricted stock units , as well as other share-based compensation arrangements , is reflected in the consolidated financial statements based on the estimated grant date fair value method under the authoritative guidance . management applies the black-scholes option pricing model to options issued to employees and directors to determine the fair value of stock options and apply judgment in estimating key assumptions that are important elements of the model in expense recognition . these elements include the expected life of the option , the expected stock-price volatility , and expected forfeiture rates . the assumptions used in calculating the fair value of share-based awards under black-scholes represent our best estimates , but these estimates involve inherent uncertainties and the application of management judgment . although we believe the assumptions and estimates we have made are reasonable and appropriate , changes in assumptions could materially impact our reported financial results . restricted stock units and stock options issued to non-employees are valued based upon the intrinsic value of the award . see note 11 , `` stockholders ' equity , `` included in item 8 for
| liquidity and capital resources while we generated net income of $ 8.8 million in 2015 , we have incurred substantial losses in the past , and as of december 31 , 2015 , we had an accumulated deficit of $ 80.1 million . in the third quarter of 2015 , we raised approximately $ 23.6 million , net of fees , from a follow-on public offering of 1,500,000 shares of our common stock . we also raised approximately $ 18 million between 2012 and 2014 through the issuance of common stock and debt , including $ 5.15 million in cash , net of related expenses , from a public offering and sale of our common stock in august 2014. additionally , we received $ 4.8 million in cash , net of related expenses , through the sale of our pool products business in 2013. while we were profitable in 2015 , in order for us to continue to grow our business profitably , we will need to continue executing our marketing and sales plans for our energy-efficient led lighting products to expand our customer base , and develop new technologies into sustainable product lines . there is a risk that our business may not be as successful as we envision as we work to expand our customer base and grow net sales from commercial clients in our targeted vertical markets . additionally , there is no guarantee that the u.s. navy will continue on its current pace with the adoption of our led lighting products for its fighting fleet . we terminated our revolving credit facility effective december 31 , 2015 , and are not actively pursuing securing a new line of credit at this time . there can be no assurance that we will generate sufficient cash flows to sustain and grow our operations or , if necessary , obtain funding on acceptable terms or in a timely fashion or at all .
| 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. |
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 while we generated net income of $ 8.8 million in 2015 , we have incurred substantial losses in the past , and as of december 31 , 2015 , we had an accumulated deficit of $ 80.1 million . in the third quarter of 2015 , we raised approximately $ 23.6 million , net of fees , from a follow-on public offering of 1,500,000 shares of our common stock . we also raised approximately $ 18 million between 2012 and 2014 through the issuance of common stock and debt , including $ 5.15 million in cash , net of related expenses , from a public offering and sale of our common stock in august 2014. additionally , we received $ 4.8 million in cash , net of related expenses , through the sale of our pool products business in 2013. while we were profitable in 2015 , in order for us to continue to grow our business profitably , we will need to continue executing our marketing and sales plans for our energy-efficient led lighting products to expand our customer base , and develop new technologies into sustainable product lines . there is a risk that our business may not be as successful as we envision as we work to expand our customer base and grow net sales from commercial clients in our targeted vertical markets . additionally , there is no guarantee that the u.s. navy will continue on its current pace with the adoption of our led lighting products for its fighting fleet . we terminated our revolving credit facility effective december 31 , 2015 , and are not actively pursuing securing a new line of credit at this time . there can be no assurance that we will generate sufficient cash flows to sustain and grow our operations or , if necessary , obtain funding on acceptable terms or in a timely fashion or at all .
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Suspicious Activity Report : net sales of $ 22.7 million in 2014 increased 140.9 percent in comparison to $ 9.4 million in 2013 , primarily due to a $ 13.2 million increase in military maritime sales as a result of high-volume sales to a distributor for the u.s. navy . commercial sales increased $ 2.0 million , or 54.3 percent , in 2014 compared to 2013 , as we built our pipeline and began to penetrate our targeted commercial and industrial markets . the increase in commercial sales was offset by a decrease of $ 2.0 million in r & d services , as we shifted our focus away from research contracts and grants . international sales with the sale of cll , our subsidiary in the united kingdom , we no longer generate significant sales from customers outside the united states . international net sales accounted for less than 1.0 percent of net sales in 2015 and in 2014 , respectively . international net sales accounted for approximately 1.4 percent of net sales in 2013 . the effect of changes in currency exchange rates was not material in 2015 , 2014 , or 2013 , respectively . gross profit gross profit was $ 29.3 million , or 45.5 percent of net sales in 2015 , compared to $ 7.8 million , or 34.3 percent of net sales in 2014 . the increase resulted from our higher sales volume , engaging new suppliers to lower our product costs at increased sales volumes , performing value analysis/engineering processes , and our continued development of operating efficiencies . gross profit in 2014 increased $ 5.7 million over the gross profit of $ 2.1 million in 2013. the increase resulted from higher net sales due to a higher mix of commercial and military maritime products sales , compared to r & d services sales , which carry low to no gross margins . additionally , gross margins on our products improved 12.2 percentage points as a result of continuous development of efficiencies , improvements in our supply chain , and building our economies of scale from sales volume increases . operating expenses product development product development expenses include salaries , contractor and consulting fees , legal fees , supplies and materials , as well as overhead items , such as depreciation and facilities costs . product development costs are expensed as they are incurred . total government reimbursements are the combination of revenues and credits from government contracts . total gross and net product development spending , including credits from government contracts , is shown in the following table ( in thousands ) : replace_table_token_5_th gross product development expenses were $ 3.0 million in 2015 , a 74.0 percent increase compared to $ 1.7 million in 2014 . the increase resulted from higher outside testing and legal fees of approximately $ 541 thousand related to our proprietary commercial intellitube® product line , and higher salaries and related benefits of approximately $ 554 thousand due to hiring additional product engineers as we continue to dedicate resources toward the development of our led lighting technology products in the united states and taiwan . gross product development expenses in 2014 decreased 50.4 percent compared to $ 3.5 million in 2013 . the decrease resulted from focusing our resources exclusively on projects and contracts that support led technologies . 23 selling , general , and administrative selling , general , and administrative expenses were $ 16.8 million , or 26.1 percent of net sales in 2015 , compared to $ 7.8 million , or 34.5 percent of net sales in 2014 . the dollar increase resulted from incurring higher salaries and related benefits of approximately $ 2.0 million and higher recruiting fees of $ 548 thousand as we essentially doubled our sales force in 2015 compared to 2014 , higher consulting services of approximately $ 1.4 million as we seek to grow our business , higher commissions and bonus incentives of approximately $ 1.7 million related to higher sales and earnings , higher severance costs of $ 502 thousand , higher trade show and other marketing costs of approximately $ 478 thousand to support our continued growth , and higher legal and professional fees of approximately $ 463 thousand . selling , general , and administrative expenses in 2014 increased 21.8 percent from $ 6.4 million 2013 . the dollar increase resulted from higher salaries and related benefits , higher stock-based compensation , higher incentive bonuses and commissions , and higher recruiting costs due primarily to building our direct sales force . this was partially offset by lower severance charges , lower amortization expense , and lower project marketing costs . loss on impairment due to the sale of our pool products business in november 2013 and the closing of our facilities in pleasanton , california , we performed an evaluation of property and equipment located in california . in performing this review , we sought a buyer for the assets which we no longer had use , and recorded an impairment loss of $ 608 thousand . the impairment loss represented the difference between the fair value and the carrying value of the asset group . these assets were subsequently sold in 2014 for $ 130 thousand ; the carrying value of the assets after the impairment charge . change in estimate of contingent liabilities in connection with the acquisition of efls in december 2009 , we recorded a performance-related contingent obligation related to a 2.5 percent payout payable over 42 months commencing january 1 , 2010. the payout was based on the fair value of projected annual billings of the acquired business . we accrued for this contingent liability at its estimated fair value at the time of the acquisition . story_separator_special_tag when assets are sold or otherwise disposed of , the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statement of operations . refer to note 5 , `` property and equipment , `` included in item 8 for additional information . long-lived assets are reviewed for impairment whenever events or circumstances indicate the carrying amount may not be recoverable . events or circumstances that would result in an impairment review primarily include operations reporting losses , a significant change in the use of an asset , or the planned disposal or sale of the asset . the asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value . an impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value , as determined by quoted market prices ( if available ) or the present value of expected future cash flows . on december 31 , 2013 , we recorded an impairment charge of $ 608 thousand for assets that were held for sale at december 31 , 2013. these assets were subsequently sold in the first quarter of 2014 for $ 130 thousand , which was the carrying value after the impairment charge . valuation of inventories we state inventories at the lower of standard cost ( which approximates actual cost determined using the first-in-first-out method ) or market . we establish provisions for excess and obsolete inventories after evaluation of historical sales , current economic trends , forecasted sales , product lifecycles , and current inventory levels . during 2015 , 2014 , and 2013 , we charged $ 1.5 million , $ 194 thousand , and $ 146 thousand , respectively , to cost of sales from continuing operations for excess and obsolete inventories . adjustments to our estimates , such as forecasted sales and expected product lifecycles , could harm our operating results and financial position . accounting for income taxes 31 as part of the process of preparing the consolidated financial statements , we are required to estimate our income tax liability in each of the jurisdictions in which we do business . this process involves estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items , such as deferred revenues , for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included in our consolidated balance sheets . we then assess the likelihood of the deferred tax assets being recovered from future taxable income and , to the extent we believe it is more likely than not that the deferred tax assets will not be recovered , or is unknown , we establish a valuation allowance . significant management judgment is required in determining our provision for income taxes , deferred tax assets and liabilities , and any valuation allowance recorded against our deferred tax assets . at december 31 , 2015 and 2014 , we have recorded a full valuation allowance against our deferred tax assets in the united states due to uncertainties related to our ability to utilize our deferred tax assets , primarily consisting of certain net operating losses carried forward . the valuation allowance is based upon our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable . in considering the need for a valuation allowance , we assess all evidence , both positive and negative , available to determine whether all or some portion of the deferred tax assets will not be realized . such evidence includes , but is not limited to , recent earnings history , projections of future income or loss , reversal patterns of existing taxable and deductible temporary differences , and tax planning strategies . we continue to evaluate the need for a valuation allowance on a quarterly basis . as of december 31 , 2015 , we had net operating loss carry-forwards of approximately $ 69.1 million for federal , state , and local income tax purposes . however , due to changes in the company 's capital structure , approximately $ 14.8 million of this amount is available after the application of irc section 382 limitations . as a result of this limitation , in 2016 , we only expect to have approximately $ 6.0 million of the net operating loss carry-forward available for use . if not utilized , these carry-forwards will begin to expire in 2021 for federal and have begun to expire for state and local purposes . please refer to note 12 , `` income taxes , `` included in item 8 for additional information . share-based payments the cost of employee and director stock options and restricted stock units , as well as other share-based compensation arrangements , is reflected in the consolidated financial statements based on the estimated grant date fair value method under the authoritative guidance . management applies the black-scholes option pricing model to options issued to employees and directors to determine the fair value of stock options and apply judgment in estimating key assumptions that are important elements of the model in expense recognition . these elements include the expected life of the option , the expected stock-price volatility , and expected forfeiture rates . the assumptions used in calculating the fair value of share-based awards under black-scholes represent our best estimates , but these estimates involve inherent uncertainties and the application of management judgment . although we believe the assumptions and estimates we have made are reasonable and appropriate , changes in assumptions could materially impact our reported financial results . restricted stock units and stock options issued to non-employees are valued based upon the intrinsic value of the award . see note 11 , `` stockholders ' equity , `` included in item 8 for
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1,036 | this required the mj # 1 to be drilled to a much greater depth than previously expected . zion has tied these revised formation depths to seismic data which will allow for more accurate interpretation and mapping in the future . a summary of what zion believes to be some key questions left to be answered are : 1. is the missing shallow senonian age source rock a result of regional erosion , or is it missing because of a fault that cut the well-bore and could be reasonably expected to be encountered in the vicinity of the mj # 1 drill site ? zion believes this is an important question to answer because if the senonian source rocks do exist in this area , the high temperatures encountered are sufficient to mature these source rocks and generate oil . 2. do the unusually high shallow subsurface temperatures extend regionally beyond the mj # 1 well , which could allow for the generation of hydrocarbons in the senonian age source rock within our license area ? 3. as a consequence of seismic remapping , where does the mj # 1 well lie relative to the potential traps at the jurassic and triassic levels and was the well location too low on the structures and deeper than the potential hydrocarbons within those traps ? 26 as a result of these unanswered questions and with the information gained drilling the mj # 1 well , zion now believes it is prudent and consistent with good industry practice to try and answer some of these questions with a focused 3d seismic imaging shoot of approximately 50 square kilometers surrounding the mj # 1 well . zion received a multi-year license extension through december 2 , 2020. zion made its annual license fee payment on december 31 , 2018 , thereby confirming the company 's commitment to further exploration in the license area . the company has commenced preliminary scouting and survey design to help identify the geologic boundaries of the proposed 3d seismic survey . additionally , zion held initial meetings with potential vendors to aid in the 3d seismic planning and acquisition process . once the survey design and surface layout are completed , zion intends to acquire the necessary government permits and negotiate potential surface damages to crops , irrigation piping , and other surface features . zion believes it will be necessary to import seismic source equipment and autonomous wireless geophones ( to record the signal ) to acquire the 3d data . once data acquisition is completed , interpretation is the final step and will involve integration with , and modification of , previous work by zion technical staff . zion recognizes the financial and time commitment that zion 's shareholders have made in their support . zion 's ability to fully undertake all of these aforementioned activities is subject to its raising the needed capital from its continuing offerings , of which no assurance can be provided . zion 's ability to fully undertake all of these aforementioned activities is subject to its raising the needed capital from its continuing offerings through the issuance of our securities , and we anticipate we will continue to need to raise funds through the issuance of equity securities ( or securities convertible into or exchangeable for equity securities ) . no assurance can be provided that we will be successful in raising the needed equity on favorable terms ( or at all ) . our executive offices are located at 12655 n central expressway , suite 1000 , dallas , texas 75243 , and our telephone number is ( 214 ) 221-4610. our field office in israel is located at 9 halamish street , north industrial park , caesarea 3088900 , and the telephone number is +972-4-623-8500 . principal components of our cost structure our operating and other expenses primarily consist of the following : ● impairment of unproved oil and gas properties : impairment expense is recognized if a determination is made that a well will not be commercially productive . the amounts include amounts paid in respect of the drilling operations as well as geological and geophysical costs and various amounts that were paid to israeli regulatory authorities . ● general and administrative expenses : overhead , including payroll and benefits for our corporate staff , costs of managing our exploratory operations , audit and other professional fees , and legal compliance are included in general and administrative expense . general and administrative expenses also include non-cash stock-based compensation expense , investor relations related expenses , lease and insurance and related expenses . ● depreciation , depletion , amortization and accretion : the systematic expensing of the capital costs incurred to explore for natural gas and oil represents a principal component of our cost structure . as a full cost company , we capitalize all costs associated with our exploration , and apportion these costs to each unit of production , if any , through depreciation , depletion and amortization expense . as we have yet to have production , the costs of abandoned wells are written off immediately versus being included in this amortization pool . going concern basis since we have limited capital resources , no revenue to date and a loss from operations , our financial statements have been prepared on a going concern basis , which contemplates realization of assets and liquidation of liabilities in the ordinary course of business . the appropriateness of using the going concern basis is dependent upon our ability to obtain additional financing or equity capital and , ultimately , to achieve profitable operations . therefore , there is substantial doubt about our ability to continue as a going concern . the financial statements do not include any adjustments that might result from the outcome of this uncertainty . story_separator_special_tag ” the warrants became exercisable on january 8 , 2018 and continue to be exercisable through january 8 , 2021 at a per share exercise price of $ 1.00. the warrant terms provide that if the company 's common stock trades above $ 5.00 per share as the closing price for 15 consecutive trading days at any time prior to the expiration date of the warrant , the company has the sole discretion to accelerate the termination date of the warrant upon providing 60 days advanced notice to the warrant holders . on february 1 , 2018 , the company initiated another unit option program which terminated on february 28 , 2018. the unit option consisted of units of our securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) 50 shares of common stock and ( ii ) common stock purchase warrants to purchase an additional 50 shares of common stock . the investor 's plan account was credited with the number of shares of the company 's common stock acquired under the units purchased . each warrant affords the investor the opportunity to purchase one share of company common stock at a warrant exercise price of $ 5.00. the warrant is referred to as “ znwah . ” the warrants became exercisable on april 2 , 2018 and continue to be exercisable through april 2 , 2020 at a per share exercise price of $ 5.00 , after the company , on december 4 , 2018 , extended the termination date of the warrant by one ( 1 ) year from the expiration date of april 19 , 2019 to april 19 , 2020 . 33 on august 21 , 2018 , the company initiated another unit option and terminated on september 26 , 2018. the unit option consisted of units of the company 's securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) a certain number of shares of common stock determined by dividing $ 250.00 ( the price of one unit ) by the average of the high and low sale prices of the company 's publicly traded common stock as reported on the nasdaq on the unit purchase date and ( ii ) common stock purchase warrants to purchase an additional twenty-five ( 25 ) shares of common stock . the investor 's plan account was credited with the number of shares of the company 's common stock acquired under the units purchased . each warrant affords the investor the opportunity to purchase one share of company common stock at a warrant exercise price of $ 1.00. the warrant is referred to as “ znwaj . ” the warrants became exercisable on october 29 , 2018 and continue to be exercisable through october 29 , 2020 at a per share exercise price of $ 1.00 , after the company , on december 4 , 2018 , extended the termination date of the warrant by one ( 1 ) year from the expiration date of april 19 , 2019 to april 19 , 2020. on december 10 , 2018 , the company 's most recent unit option began and was terminated on january 23 , 2019. the unit option consisted of units of the company 's securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) two hundred and fifty ( 250 ) shares of common stock and ( ii ) common stock purchase warrants to purchase an additional two hundred and fifty ( 250 ) shares of common stock at a per share exercise price of $ 0.01. the investor 's plan account would be credited with the number of shares of the company 's common stock and warrants that are acquired under the units purchased . each warrant affords the participant the opportunity to purchase one share of our common stock at a warrant exercise price of $ 0.01. the warrant is referred to as “ znwak . ” the warrants become exercisable on february 25 , 2019 and continue to be exercisable through february 25 , 2020 at a per share exercise price of $ 0.01. the company raised approximately $ 2,000,000 from the period december 10 , 2018 through january 23 , 2019 , under the dspp and its most recently completed unit offering . for the years ended december 31 , 2018 , 2017 and 2016 , approximately $ 13,781,000 , $ 22,994,000 and $ 4,338,000 was raised under the dspp program , respectively . the warrants represented by the ticker znwaa are tradable on the nasdaq market . however , all of the other warrants characterized above , in the table below , and throughout this form 10-k , are not tradeable and are used internally for classification and accounting purposes only . 2018 subscription rights offering on april 2 , 2018 the company announced an offering ( “ 2018 subscription rights offering ” ) through american stock transfer & trust company , llc ( the “ subscription agent ” ) , at no cost to the shareholders , of non-transferable subscription rights to purchase rights ( each “ right ” and collectively , the “ rights ” ) of its securities to persons who owned shares of our common stock on april 13 , 2018 ( “ the record date ” ) . pursuant to the 2018 subscription rights offering , each holder of shares of common stock on the record date received non-transferable rights to subscribe for rights , with each right comprised of one share of the company common stock , par value $ 0.01 per share ( the “ common stock ” ) and one common stock purchase warrant to purchase an additional one share of common stock . each right could be purchased at a per right subscription price of $ 5.00. each warrant afforded the investor the opportunity to purchase one share
| liquidity and capital resources liquidity is a measure of a company 's ability to meet potential cash requirements . as discussed above , we have historically met our capital requirements through the issuance of common stock as well as proceeds from the exercise of warrants and options to purchase common shares . our ability to continue as a going concern is dependent upon obtaining the necessary financing to complete further exploration and development activities and generate profitable operations from our oil and natural gas interests in the future . our current operations are dependent upon the adequacy of our current assets to meet our current expenditure requirements and the accuracy of management 's estimates of those requirements . should those estimates be materially incorrect , our ability to continue as a going concern will be impaired . our financial statements for the year ended december 31 , 2018 have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . we have incurred a history of operating losses and negative cash flows from operations . therefore , there is substantial doubt about our ability to continue as a going concern . at december 31 , 2018 , we had approximately $ 2,791,000 in cash and cash equivalents compared to $ 6,892,000 at december 31 , 2017. our working capital ( current assets minus current liabilities ) was $ 537,000 at december 31 , 2018 and $ 3,646,000 at december 31 , 2017. the derivative liability at december 31 , 2018 was $ 345,000 , and this non-cash liability negatively impacts the working capital figure .
| 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. |
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 liquidity is a measure of a company 's ability to meet potential cash requirements . as discussed above , we have historically met our capital requirements through the issuance of common stock as well as proceeds from the exercise of warrants and options to purchase common shares . our ability to continue as a going concern is dependent upon obtaining the necessary financing to complete further exploration and development activities and generate profitable operations from our oil and natural gas interests in the future . our current operations are dependent upon the adequacy of our current assets to meet our current expenditure requirements and the accuracy of management 's estimates of those requirements . should those estimates be materially incorrect , our ability to continue as a going concern will be impaired . our financial statements for the year ended december 31 , 2018 have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . we have incurred a history of operating losses and negative cash flows from operations . therefore , there is substantial doubt about our ability to continue as a going concern . at december 31 , 2018 , we had approximately $ 2,791,000 in cash and cash equivalents compared to $ 6,892,000 at december 31 , 2017. our working capital ( current assets minus current liabilities ) was $ 537,000 at december 31 , 2018 and $ 3,646,000 at december 31 , 2017. the derivative liability at december 31 , 2018 was $ 345,000 , and this non-cash liability negatively impacts the working capital figure .
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Suspicious Activity Report : this required the mj # 1 to be drilled to a much greater depth than previously expected . zion has tied these revised formation depths to seismic data which will allow for more accurate interpretation and mapping in the future . a summary of what zion believes to be some key questions left to be answered are : 1. is the missing shallow senonian age source rock a result of regional erosion , or is it missing because of a fault that cut the well-bore and could be reasonably expected to be encountered in the vicinity of the mj # 1 drill site ? zion believes this is an important question to answer because if the senonian source rocks do exist in this area , the high temperatures encountered are sufficient to mature these source rocks and generate oil . 2. do the unusually high shallow subsurface temperatures extend regionally beyond the mj # 1 well , which could allow for the generation of hydrocarbons in the senonian age source rock within our license area ? 3. as a consequence of seismic remapping , where does the mj # 1 well lie relative to the potential traps at the jurassic and triassic levels and was the well location too low on the structures and deeper than the potential hydrocarbons within those traps ? 26 as a result of these unanswered questions and with the information gained drilling the mj # 1 well , zion now believes it is prudent and consistent with good industry practice to try and answer some of these questions with a focused 3d seismic imaging shoot of approximately 50 square kilometers surrounding the mj # 1 well . zion received a multi-year license extension through december 2 , 2020. zion made its annual license fee payment on december 31 , 2018 , thereby confirming the company 's commitment to further exploration in the license area . the company has commenced preliminary scouting and survey design to help identify the geologic boundaries of the proposed 3d seismic survey . additionally , zion held initial meetings with potential vendors to aid in the 3d seismic planning and acquisition process . once the survey design and surface layout are completed , zion intends to acquire the necessary government permits and negotiate potential surface damages to crops , irrigation piping , and other surface features . zion believes it will be necessary to import seismic source equipment and autonomous wireless geophones ( to record the signal ) to acquire the 3d data . once data acquisition is completed , interpretation is the final step and will involve integration with , and modification of , previous work by zion technical staff . zion recognizes the financial and time commitment that zion 's shareholders have made in their support . zion 's ability to fully undertake all of these aforementioned activities is subject to its raising the needed capital from its continuing offerings , of which no assurance can be provided . zion 's ability to fully undertake all of these aforementioned activities is subject to its raising the needed capital from its continuing offerings through the issuance of our securities , and we anticipate we will continue to need to raise funds through the issuance of equity securities ( or securities convertible into or exchangeable for equity securities ) . no assurance can be provided that we will be successful in raising the needed equity on favorable terms ( or at all ) . our executive offices are located at 12655 n central expressway , suite 1000 , dallas , texas 75243 , and our telephone number is ( 214 ) 221-4610. our field office in israel is located at 9 halamish street , north industrial park , caesarea 3088900 , and the telephone number is +972-4-623-8500 . principal components of our cost structure our operating and other expenses primarily consist of the following : ● impairment of unproved oil and gas properties : impairment expense is recognized if a determination is made that a well will not be commercially productive . the amounts include amounts paid in respect of the drilling operations as well as geological and geophysical costs and various amounts that were paid to israeli regulatory authorities . ● general and administrative expenses : overhead , including payroll and benefits for our corporate staff , costs of managing our exploratory operations , audit and other professional fees , and legal compliance are included in general and administrative expense . general and administrative expenses also include non-cash stock-based compensation expense , investor relations related expenses , lease and insurance and related expenses . ● depreciation , depletion , amortization and accretion : the systematic expensing of the capital costs incurred to explore for natural gas and oil represents a principal component of our cost structure . as a full cost company , we capitalize all costs associated with our exploration , and apportion these costs to each unit of production , if any , through depreciation , depletion and amortization expense . as we have yet to have production , the costs of abandoned wells are written off immediately versus being included in this amortization pool . going concern basis since we have limited capital resources , no revenue to date and a loss from operations , our financial statements have been prepared on a going concern basis , which contemplates realization of assets and liquidation of liabilities in the ordinary course of business . the appropriateness of using the going concern basis is dependent upon our ability to obtain additional financing or equity capital and , ultimately , to achieve profitable operations . therefore , there is substantial doubt about our ability to continue as a going concern . the financial statements do not include any adjustments that might result from the outcome of this uncertainty . story_separator_special_tag ” the warrants became exercisable on january 8 , 2018 and continue to be exercisable through january 8 , 2021 at a per share exercise price of $ 1.00. the warrant terms provide that if the company 's common stock trades above $ 5.00 per share as the closing price for 15 consecutive trading days at any time prior to the expiration date of the warrant , the company has the sole discretion to accelerate the termination date of the warrant upon providing 60 days advanced notice to the warrant holders . on february 1 , 2018 , the company initiated another unit option program which terminated on february 28 , 2018. the unit option consisted of units of our securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) 50 shares of common stock and ( ii ) common stock purchase warrants to purchase an additional 50 shares of common stock . the investor 's plan account was credited with the number of shares of the company 's common stock acquired under the units purchased . each warrant affords the investor the opportunity to purchase one share of company common stock at a warrant exercise price of $ 5.00. the warrant is referred to as “ znwah . ” the warrants became exercisable on april 2 , 2018 and continue to be exercisable through april 2 , 2020 at a per share exercise price of $ 5.00 , after the company , on december 4 , 2018 , extended the termination date of the warrant by one ( 1 ) year from the expiration date of april 19 , 2019 to april 19 , 2020 . 33 on august 21 , 2018 , the company initiated another unit option and terminated on september 26 , 2018. the unit option consisted of units of the company 's securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) a certain number of shares of common stock determined by dividing $ 250.00 ( the price of one unit ) by the average of the high and low sale prices of the company 's publicly traded common stock as reported on the nasdaq on the unit purchase date and ( ii ) common stock purchase warrants to purchase an additional twenty-five ( 25 ) shares of common stock . the investor 's plan account was credited with the number of shares of the company 's common stock acquired under the units purchased . each warrant affords the investor the opportunity to purchase one share of company common stock at a warrant exercise price of $ 1.00. the warrant is referred to as “ znwaj . ” the warrants became exercisable on october 29 , 2018 and continue to be exercisable through october 29 , 2020 at a per share exercise price of $ 1.00 , after the company , on december 4 , 2018 , extended the termination date of the warrant by one ( 1 ) year from the expiration date of april 19 , 2019 to april 19 , 2020. on december 10 , 2018 , the company 's most recent unit option began and was terminated on january 23 , 2019. the unit option consisted of units of the company 's securities where each unit ( priced at $ 250.00 each ) was comprised of ( i ) two hundred and fifty ( 250 ) shares of common stock and ( ii ) common stock purchase warrants to purchase an additional two hundred and fifty ( 250 ) shares of common stock at a per share exercise price of $ 0.01. the investor 's plan account would be credited with the number of shares of the company 's common stock and warrants that are acquired under the units purchased . each warrant affords the participant the opportunity to purchase one share of our common stock at a warrant exercise price of $ 0.01. the warrant is referred to as “ znwak . ” the warrants become exercisable on february 25 , 2019 and continue to be exercisable through february 25 , 2020 at a per share exercise price of $ 0.01. the company raised approximately $ 2,000,000 from the period december 10 , 2018 through january 23 , 2019 , under the dspp and its most recently completed unit offering . for the years ended december 31 , 2018 , 2017 and 2016 , approximately $ 13,781,000 , $ 22,994,000 and $ 4,338,000 was raised under the dspp program , respectively . the warrants represented by the ticker znwaa are tradable on the nasdaq market . however , all of the other warrants characterized above , in the table below , and throughout this form 10-k , are not tradeable and are used internally for classification and accounting purposes only . 2018 subscription rights offering on april 2 , 2018 the company announced an offering ( “ 2018 subscription rights offering ” ) through american stock transfer & trust company , llc ( the “ subscription agent ” ) , at no cost to the shareholders , of non-transferable subscription rights to purchase rights ( each “ right ” and collectively , the “ rights ” ) of its securities to persons who owned shares of our common stock on april 13 , 2018 ( “ the record date ” ) . pursuant to the 2018 subscription rights offering , each holder of shares of common stock on the record date received non-transferable rights to subscribe for rights , with each right comprised of one share of the company common stock , par value $ 0.01 per share ( the “ common stock ” ) and one common stock purchase warrant to purchase an additional one share of common stock . each right could be purchased at a per right subscription price of $ 5.00. each warrant afforded the investor the opportunity to purchase one share
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1,037 | we began operating as a reit for federal income tax purposes effective january 1 , 2012 . 29 the following table details the number of communications sites we own or operate in the countries in which we operate as of december 31 , 2012 : replace_table_token_8_th ( 1 ) all of the sites we operate are held pursuant to long-term capital leases , including those subject to purchase options . the majority of our tenant leases with wireless carriers are typically for an initial non-cancellable term of five to ten years , with multiple five-year renewal terms thereafter . accordingly , nearly all of the revenue generated by our rental and management operations during the year ended december 31 , 2012 is recurring revenue that we should continue to receive in future periods . based upon foreign currency exchange rates and the tenant leases in place as of december 31 , 2012 , we expect to generate approximately $ 20 billion of non-cancellable tenant lease revenue over future periods , excluding the impact of straight-line lease accounting . in addition , most of our tenant leases have provisions that periodically increase the rent due under the lease , typically annually based on a fixed percentage ( on average approximately 3.5 % in the united states ) , inflation , or inflation with a fixed minimum or maximum escalation for the year . revenue generated by rent increases based on fixed escalation clauses is recognized on a straight line basis over the non-cancellable term of the applicable agreement . we also routinely seek to extend our leases with our tenants , which increases the non-cancellable term of the lease and creates incremental growth in our revenues . the revenues generated by our rental and management operations may also be affected by cancellations of existing tenant leases . as discussed above , most of our tenant leases with wireless carriers and broadcasters are multi-year contracts , which typically are non-cancellable ; however in some instances , a lease may be cancelled upon the payment of a termination fee . revenue lost from either cancellations of leases at the end of their terms or rent negotiations historically have not had a material adverse effect on the revenues generated by our rental and management operations . during the year ended december 31 , 2012 , loss of annual revenue from tenant lease cancellations or renegotiations represented less than 1.3 % of our rental and management operations revenues . rental and management operations revenue growth . the primary factors affecting the revenue growth for our domestic and international rental and management segments are : recurring revenues from tenant leases generated from sites which existed in our portfolio as of the beginning of the prior year period ( legacy sites ) ; contractual rent escalations on existing tenant leases , net of cancellations ; new revenue generated from leasing additional space on our legacy sites ; and new revenue generated from new sites acquired or constructed since the beginning of the prior year period ( new sites ) . 30 we continue to believe that our site leasing revenue is likely to increase due to the growing use of wireless communications services and our ability to meet that demand by adding new tenants and new equipment for existing tenants on our legacy sites , which increases the utilization and profitability of our sites . in addition , we believe the majority of our site leasing activity will continue to come from wireless service providers . our legacy site portfolio and our established tenant base provide us with new business opportunities , which have historically resulted in consistent and predictable organic revenue growth as wireless carriers seek to increase the coverage and capacity of their networks as well as roll out next generation wireless technologies . in addition , we intend to continue to supplement the organic growth on our legacy sites by selectively developing or acquiring new sites in our existing and new markets where we can achieve our risk adjusted return on investment criteria . rental and management operations organic revenue growth . consistent with our strategy to increase the utilization and return on investment of our legacy sites , our objective is to add new tenants and new equipment for existing tenants through collocation . our ability to lease additional space on our sites is primarily a function of the rate at which wireless carriers deploy capital to improve and expand their wireless networks . this rate , in turn , is influenced by the growth of wireless communications services and related infrastructure needs , the financial performance of our tenants and their access to capital , and general economic conditions . the following key trends within each market that we serve provide opportunities for organic revenue growth : domestic . as a result of the rapid subscriber adoption of wireless data applications , wireless service providers in the united states continue to invest in their wireless networks by adding new cell sites as well as additional equipment to their existing cell sites . this level of wireless communications services growth has driven wireless providers in the united states to deploy consistent levels of annual wireless capital investment and as a result , we have experienced strong demand for our communications sites . we expect the following key industry trends will result in incremental revenue opportunities for us : the deployment of advanced wireless technology across existing wireless networks will provide higher speed data services and enable fixed broadband substitution . as a result , our tenants continue to deploy additional equipment across their existing networks . wireless service providers compete based on the overall capacity and coverage of their existing wireless networks . to maintain or improve their network performance as overall network usage increases , our tenants continue to deploy additional equipment across their existing sites as well as add new cell sites . story_separator_special_tag the growth was primarily attributable to the increase in network development services segment gross margin and the decrease in sg & a , as described above . depreciation , amortization and accretion year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 depreciation , amortization and accretion $ 644,276 $ 555,517 $ 88,759 16 % 36 depreciation , amortization and accretion for the year ended december 31 , 2012 increased 16 % to $ 644.3 million . the increase was primarily attributable to the depreciation , amortization and accretion associated with the acquisition or construction of approximately 19,280 sites since january 1 , 2011 , which resulted in an increase in property and equipment . other operating expenses year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 other operating expenses $ 62,185 $ 58,103 $ 4,082 7 % other operating expenses for the year ended december 31 , 2012 increased 7 % to $ 62.2 million . this change was primarily attributable to an increase of approximately $ 17.0 million in impairment charges and loss on disposal of assets , which included an impairment charge of $ 10.8 million of one of our outdoor das networks , upon the termination of a tenant lease during the year ended december 31 , 2012. this increase was partially offset by a decrease of approximately $ 12.9 million in acquisition related costs and non-recurring consulting and legal costs incurred in 2011 associated with our reit conversion . interest expense year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 interest expense $ 401,665 $ 311,854 $ 89,811 29 % interest expense for the year ended december 31 , 2012 increased 29 % to $ 401.7 million . the increase was primarily attributable to an increase in our average debt outstanding of approximately $ 1,617.3 million , which was primarily used to fund our recent acquisitions , and an increase in our annualized weighted average cost of borrowing from 5.32 % to 5.37 % . other expense year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 other expense $ 38,300 $ 122,975 $ ( 84,675 ) ( 69 ) % other expense for the year ended december 31 , 2012 decreased 69 % to $ 38.3 million . the decrease was primarily a result of a decline in unrealized currency losses of $ 96.8 million . during the year ended december 31 , 2012 , we recorded unrealized foreign currency losses of approximately $ 34.3 million resulting primarily from fluctuations in the foreign currency exchange rates associated with our intercompany notes and similar unaffiliated balances denominated in a currency other than the subsidiaries ' functional currencies and other expenses of approximately $ 4.0 million . during the year ended december 31 , 2011 , we recorded unrealized foreign currency losses of approximately $ 131.1 million and other miscellaneous income of $ 8.1 million . income tax provision replace_table_token_14_th 37 the income tax provision for the year ended december 31 , 2012 decreased 14 % to $ 107.3 million . the effective tax rate ( etr ) for the year ended december 31 , 2012 decreased to 15.3 % from 24.7 % . this decrease was primarily attributable to our dividend paid deduction and decreased state taxes during the year ended december 31 , 2012 , partially offset by an increase in foreign taxes and valuation allowance on certain deferred tax assets . the deferred tax assets arose primarily as a result of purchase accounting and existing nols , which were generated partly from interest on intercompany debt . as a reit , we may deduct earnings distributed to stockholders against the income generated in our qrss and , in addition , we are able to offset income in both our trss and qrss by utilizing our nols , subject to specified limitations . the etr on income from continuing operations for the years ended december 31 , 2012 and 2011 differs from the federal statutory rate primarily due to our expected qualification for taxation as a reit effective as of january 1 , 2012 and to adjustments for foreign items . net income/adjusted ebitda replace_table_token_15_th net income for the year ended december 31 , 2012 increased 56 % to $ 594.0 million . the increase was primarily attributable to an increase in our rental and management segments operating profit , as described above , as well as decreases in unrealized foreign currency losses and income tax provision , partially offset by increases in depreciation , amortization and accretion and interest expense . adjusted ebitda for the year ended december 31 , 2012 increased 19 % to $ 1,892.4 million . adjusted ebitda growth was primarily attributable to the increase in our rental and management segments gross margin , and was partially offset by an increase in sg & a . years ended december 31 , 2011 and 2010 ( in thousands , except percentages ) revenue replace_table_token_16_th 38 total revenues for the year ended december 31 , 2011 increased 23 % to $ 2,443.5 million . the increase was primarily attributable to an increase in both of our rental and management segments , including organic revenue growth attributable to our legacy sites and revenue growth attributable to the approximately 18,290 new communications sites , and property interests that we lease to communications service providers and third-party tower operators under approximately 1,810 communications sites , acquired since january 1 , 2010. domestic rental and management segment revenue for the year ended december 31 , 2011 increased 11 % to $ 1,744.3 million . this growth was comprised of : approximately 9 % from organic revenue growth , which was due to the incremental revenue generated from adding new tenants to legacy sites , existing tenants adding more equipment to legacy sites
| cash flows from investing activities for the year ended december 31 , 2012 , cash used for investing activities was $ 2,558.4 million , a decrease of approximately $ 232.4 million , as compared to the year ended december 31 , 2011. this decrease was primarily attributable to a decrease in acquisition-related activity during the year ended december 31 , 2012. during the year ended december 31 , 2012 , payments for purchases of property and equipment and construction activities totaled $ 568.0 million , including $ 279.0 million of capital expenditures for discretionary capital projects , such as completion of the construction of approximately 2,360 communications sites and the installation of approximately 600 shared generators domestically , $ 82.3 million spent to acquire land under our towers that was subject to ground agreements ( including leases ) , $ 120.0 million of capital expenditures related to capital improvements and corporate capital expenditures primarily attributable to information technology improvements and $ 86.7 million for the redevelopment of existing sites to accommodate new tenant equipment . in addition , during the year ended december 31 , 2012 , we spent $ 1,998.0 million to acquire approximately 6,450 communications sites in our served markets , approximately 24 property interests under third-party communications sites in the united states and for the payment of amounts previously recognized in accounts payable or accrued expenses in the consolidated balance sheets for communications sites we acquired in chile , colombia , ghana and south africa during the year ended december 31 , 2011. for the year ended december 31 , 2011 , cash used for investing activities was $ 2,790.8 million , an increase of approximately $ 1,489.9 million , as compared to the year ended december 31 , 2010. this increase was primarily comprised of increased spending for acquisitions during the year ended december 31 , 2011. during the year ended december 31 , 2011 , payments for purchases of property and equipment and construction activities totaled $ 523.0 million , including $ 296.9 million of capital expenditures for discretionary capital projects , such as completion of the construction of approximately 1,850 communications sites , $ 91.3 million spent to acquire land under our towers that was subject to ground
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from investing activities for the year ended december 31 , 2012 , cash used for investing activities was $ 2,558.4 million , a decrease of approximately $ 232.4 million , as compared to the year ended december 31 , 2011. this decrease was primarily attributable to a decrease in acquisition-related activity during the year ended december 31 , 2012. during the year ended december 31 , 2012 , payments for purchases of property and equipment and construction activities totaled $ 568.0 million , including $ 279.0 million of capital expenditures for discretionary capital projects , such as completion of the construction of approximately 2,360 communications sites and the installation of approximately 600 shared generators domestically , $ 82.3 million spent to acquire land under our towers that was subject to ground agreements ( including leases ) , $ 120.0 million of capital expenditures related to capital improvements and corporate capital expenditures primarily attributable to information technology improvements and $ 86.7 million for the redevelopment of existing sites to accommodate new tenant equipment . in addition , during the year ended december 31 , 2012 , we spent $ 1,998.0 million to acquire approximately 6,450 communications sites in our served markets , approximately 24 property interests under third-party communications sites in the united states and for the payment of amounts previously recognized in accounts payable or accrued expenses in the consolidated balance sheets for communications sites we acquired in chile , colombia , ghana and south africa during the year ended december 31 , 2011. for the year ended december 31 , 2011 , cash used for investing activities was $ 2,790.8 million , an increase of approximately $ 1,489.9 million , as compared to the year ended december 31 , 2010. this increase was primarily comprised of increased spending for acquisitions during the year ended december 31 , 2011. during the year ended december 31 , 2011 , payments for purchases of property and equipment and construction activities totaled $ 523.0 million , including $ 296.9 million of capital expenditures for discretionary capital projects , such as completion of the construction of approximately 1,850 communications sites , $ 91.3 million spent to acquire land under our towers that was subject to ground
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Suspicious Activity Report : we began operating as a reit for federal income tax purposes effective january 1 , 2012 . 29 the following table details the number of communications sites we own or operate in the countries in which we operate as of december 31 , 2012 : replace_table_token_8_th ( 1 ) all of the sites we operate are held pursuant to long-term capital leases , including those subject to purchase options . the majority of our tenant leases with wireless carriers are typically for an initial non-cancellable term of five to ten years , with multiple five-year renewal terms thereafter . accordingly , nearly all of the revenue generated by our rental and management operations during the year ended december 31 , 2012 is recurring revenue that we should continue to receive in future periods . based upon foreign currency exchange rates and the tenant leases in place as of december 31 , 2012 , we expect to generate approximately $ 20 billion of non-cancellable tenant lease revenue over future periods , excluding the impact of straight-line lease accounting . in addition , most of our tenant leases have provisions that periodically increase the rent due under the lease , typically annually based on a fixed percentage ( on average approximately 3.5 % in the united states ) , inflation , or inflation with a fixed minimum or maximum escalation for the year . revenue generated by rent increases based on fixed escalation clauses is recognized on a straight line basis over the non-cancellable term of the applicable agreement . we also routinely seek to extend our leases with our tenants , which increases the non-cancellable term of the lease and creates incremental growth in our revenues . the revenues generated by our rental and management operations may also be affected by cancellations of existing tenant leases . as discussed above , most of our tenant leases with wireless carriers and broadcasters are multi-year contracts , which typically are non-cancellable ; however in some instances , a lease may be cancelled upon the payment of a termination fee . revenue lost from either cancellations of leases at the end of their terms or rent negotiations historically have not had a material adverse effect on the revenues generated by our rental and management operations . during the year ended december 31 , 2012 , loss of annual revenue from tenant lease cancellations or renegotiations represented less than 1.3 % of our rental and management operations revenues . rental and management operations revenue growth . the primary factors affecting the revenue growth for our domestic and international rental and management segments are : recurring revenues from tenant leases generated from sites which existed in our portfolio as of the beginning of the prior year period ( legacy sites ) ; contractual rent escalations on existing tenant leases , net of cancellations ; new revenue generated from leasing additional space on our legacy sites ; and new revenue generated from new sites acquired or constructed since the beginning of the prior year period ( new sites ) . 30 we continue to believe that our site leasing revenue is likely to increase due to the growing use of wireless communications services and our ability to meet that demand by adding new tenants and new equipment for existing tenants on our legacy sites , which increases the utilization and profitability of our sites . in addition , we believe the majority of our site leasing activity will continue to come from wireless service providers . our legacy site portfolio and our established tenant base provide us with new business opportunities , which have historically resulted in consistent and predictable organic revenue growth as wireless carriers seek to increase the coverage and capacity of their networks as well as roll out next generation wireless technologies . in addition , we intend to continue to supplement the organic growth on our legacy sites by selectively developing or acquiring new sites in our existing and new markets where we can achieve our risk adjusted return on investment criteria . rental and management operations organic revenue growth . consistent with our strategy to increase the utilization and return on investment of our legacy sites , our objective is to add new tenants and new equipment for existing tenants through collocation . our ability to lease additional space on our sites is primarily a function of the rate at which wireless carriers deploy capital to improve and expand their wireless networks . this rate , in turn , is influenced by the growth of wireless communications services and related infrastructure needs , the financial performance of our tenants and their access to capital , and general economic conditions . the following key trends within each market that we serve provide opportunities for organic revenue growth : domestic . as a result of the rapid subscriber adoption of wireless data applications , wireless service providers in the united states continue to invest in their wireless networks by adding new cell sites as well as additional equipment to their existing cell sites . this level of wireless communications services growth has driven wireless providers in the united states to deploy consistent levels of annual wireless capital investment and as a result , we have experienced strong demand for our communications sites . we expect the following key industry trends will result in incremental revenue opportunities for us : the deployment of advanced wireless technology across existing wireless networks will provide higher speed data services and enable fixed broadband substitution . as a result , our tenants continue to deploy additional equipment across their existing networks . wireless service providers compete based on the overall capacity and coverage of their existing wireless networks . to maintain or improve their network performance as overall network usage increases , our tenants continue to deploy additional equipment across their existing sites as well as add new cell sites . story_separator_special_tag the growth was primarily attributable to the increase in network development services segment gross margin and the decrease in sg & a , as described above . depreciation , amortization and accretion year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 depreciation , amortization and accretion $ 644,276 $ 555,517 $ 88,759 16 % 36 depreciation , amortization and accretion for the year ended december 31 , 2012 increased 16 % to $ 644.3 million . the increase was primarily attributable to the depreciation , amortization and accretion associated with the acquisition or construction of approximately 19,280 sites since january 1 , 2011 , which resulted in an increase in property and equipment . other operating expenses year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 other operating expenses $ 62,185 $ 58,103 $ 4,082 7 % other operating expenses for the year ended december 31 , 2012 increased 7 % to $ 62.2 million . this change was primarily attributable to an increase of approximately $ 17.0 million in impairment charges and loss on disposal of assets , which included an impairment charge of $ 10.8 million of one of our outdoor das networks , upon the termination of a tenant lease during the year ended december 31 , 2012. this increase was partially offset by a decrease of approximately $ 12.9 million in acquisition related costs and non-recurring consulting and legal costs incurred in 2011 associated with our reit conversion . interest expense year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 interest expense $ 401,665 $ 311,854 $ 89,811 29 % interest expense for the year ended december 31 , 2012 increased 29 % to $ 401.7 million . the increase was primarily attributable to an increase in our average debt outstanding of approximately $ 1,617.3 million , which was primarily used to fund our recent acquisitions , and an increase in our annualized weighted average cost of borrowing from 5.32 % to 5.37 % . other expense year ended december 31 , amount of increase ( decrease ) percent increase ( decrease ) 2012 2011 other expense $ 38,300 $ 122,975 $ ( 84,675 ) ( 69 ) % other expense for the year ended december 31 , 2012 decreased 69 % to $ 38.3 million . the decrease was primarily a result of a decline in unrealized currency losses of $ 96.8 million . during the year ended december 31 , 2012 , we recorded unrealized foreign currency losses of approximately $ 34.3 million resulting primarily from fluctuations in the foreign currency exchange rates associated with our intercompany notes and similar unaffiliated balances denominated in a currency other than the subsidiaries ' functional currencies and other expenses of approximately $ 4.0 million . during the year ended december 31 , 2011 , we recorded unrealized foreign currency losses of approximately $ 131.1 million and other miscellaneous income of $ 8.1 million . income tax provision replace_table_token_14_th 37 the income tax provision for the year ended december 31 , 2012 decreased 14 % to $ 107.3 million . the effective tax rate ( etr ) for the year ended december 31 , 2012 decreased to 15.3 % from 24.7 % . this decrease was primarily attributable to our dividend paid deduction and decreased state taxes during the year ended december 31 , 2012 , partially offset by an increase in foreign taxes and valuation allowance on certain deferred tax assets . the deferred tax assets arose primarily as a result of purchase accounting and existing nols , which were generated partly from interest on intercompany debt . as a reit , we may deduct earnings distributed to stockholders against the income generated in our qrss and , in addition , we are able to offset income in both our trss and qrss by utilizing our nols , subject to specified limitations . the etr on income from continuing operations for the years ended december 31 , 2012 and 2011 differs from the federal statutory rate primarily due to our expected qualification for taxation as a reit effective as of january 1 , 2012 and to adjustments for foreign items . net income/adjusted ebitda replace_table_token_15_th net income for the year ended december 31 , 2012 increased 56 % to $ 594.0 million . the increase was primarily attributable to an increase in our rental and management segments operating profit , as described above , as well as decreases in unrealized foreign currency losses and income tax provision , partially offset by increases in depreciation , amortization and accretion and interest expense . adjusted ebitda for the year ended december 31 , 2012 increased 19 % to $ 1,892.4 million . adjusted ebitda growth was primarily attributable to the increase in our rental and management segments gross margin , and was partially offset by an increase in sg & a . years ended december 31 , 2011 and 2010 ( in thousands , except percentages ) revenue replace_table_token_16_th 38 total revenues for the year ended december 31 , 2011 increased 23 % to $ 2,443.5 million . the increase was primarily attributable to an increase in both of our rental and management segments , including organic revenue growth attributable to our legacy sites and revenue growth attributable to the approximately 18,290 new communications sites , and property interests that we lease to communications service providers and third-party tower operators under approximately 1,810 communications sites , acquired since january 1 , 2010. domestic rental and management segment revenue for the year ended december 31 , 2011 increased 11 % to $ 1,744.3 million . this growth was comprised of : approximately 9 % from organic revenue growth , which was due to the incremental revenue generated from adding new tenants to legacy sites , existing tenants adding more equipment to legacy sites
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1,038 | a significant portion of our revenues are derived from the sale of products and services within the banking ( including consumer credit ) industry , and 69 % and 74 % of our revenues were derived from within this industry during fiscal 2015 and 2014 , respectively . in addition , we derive a significant share of revenue from transactional or unit-based software license fees , transactional fees derived under scoring , network service or internal hosted software arrangements , annual software maintenance fees and annual license fees under long-term software license arrangements . arrangements with transactional or unit-based pricing accounted for 67 % of our revenues during fiscal 2015 and 2014 . revenue fluctuations in our business are primarily driven by changes in the transactional volume and license fees . 27 operating income for fiscal 2015 was $ 137.5 million , a decrease of 15 % from $ 161.9 million in fiscal 2014 . operating margin decreased to 16 % from 21 % . the margin decrease was primarily attributable to an increase in our restructuring cost related to the write-down of facilities , our continued investment in the areas of cloud computing and saas , and an increase in our professional services delivery cost , partially offset by a higher percentage of revenues derived from our higher-margin products including revenues generated from our experian agreement . net income decreased 9 % to $ 86.5 million in fiscal 2015 from $ 94.9 million in fiscal 2014 primarily due to the decrease in operating margin , partially offset by lower income tax expense , largely driven by a favorable tax adjustment in fiscal 2015. diluted earnings per share for fiscal 2015 was $ 2.65 , a decrease of 3 % from $ 2.72 in fiscal 2014 . bookings management regards the volume of bookings achieved as an important indicator of future revenues , but they are not comparable to nor a substitute for an analysis of our revenues . bookings represent contracts signed in the current reporting period that generate current and future revenue streams . we estimate bookings as of the end of the period in which a contract is signed and initial booking estimates are not updated in future periods for changes between estimated and actual results . our calculations have varying degrees of certainty depending on the revenue type and individual contract terms . they are subject to a number of risks and uncertainties concerning timing and contingencies affecting product delivery and performance , and estimates consider contract terms , knowledge of the marketplace and experience with our customers , among other factors . actual revenue and the timing thereof could differ materially from our initial estimates . although many of our contracts contain non-cancelable terms , most of our bookings are transactional or service related that are dependent upon estimates such as volume of transactions , number of active accounts , or number of hours incurred . since these estimates can not be considered fixed or firm , we do not believe it is appropriate to characterize bookings as backlog . the following paragraphs discuss the key assumptions used to calculate bookings and the susceptibility of these assumptions to variability for each revenue type . transactional and maintenance bookings we calculate transactional bookings as the total estimated volume of transactions or number of accounts under contract , multiplied by the contractual rate . transactional contracts generally span multiple years and require estimates of future transaction volumes or number of active accounts . we develop estimates from discussions with our customers and examinations of historical data from similar products and customer arrangements . differences between estimated bookings and actual results occur due to variability in the volume of transactions or number of active accounts estimated . this variability is primarily caused by the economic trends in our customers ' industries ; individual performance of our customers relative to their competitors ; and regulatory and other factors that affect the business environment in which our customers operate . we calculate maintenance bookings directly from the terms stated in the contract . professional services bookings we calculate professional services bookings as the estimated number of hours to complete a project multiplied by the rate per hour . we estimate the number of hours based on our understanding of the project scope , conversations with customer personnel and our experience in estimating professional services projects . estimated bookings may differ from actual results primarily due to differences in the actual number of hours incurred . license bookings licenses are sold on a perpetual or term basis and bookings generally equal the fixed amount stated in the contract . 28 bookings trend analysis replace_table_token_4_th ( 1 ) bookings yield represents the percentage of revenue recognized from bookings for the periods indicated . ( 2 ) weighted-average term of bookings measures the average term over which bookings are expected to be recognized as revenue . ( a ) nm - measure is not meaningful as our estimate of bookings is as of the end of the period in which a contract is signed , and we do not update our initial booking estimates in future periods for changes between estimated and actual results . transactional and maintenance bookings were 31 % and 29 % of total bookings for the years ended september 30 , 2015 and 2014 , respectively . professional services bookings were 47 % of total bookings for the years ended september 30 , 2015 and 2014 . license bookings were 22 % and 24 % of total bookings for the years ended september 30 , 2015 and 2014 , respectively . results of operations we are organized into the following three reportable segments : applications , scores and tools . story_separator_special_tag the decrease in our effective tax rate in fiscal 2015 compared to fiscal 2014 was due primarily to the favorable settlement of the fiscal 2006 - 2009 state audits and the favorable settlement of the 2010 foreign transfer pricing assessment , as well as the december 2014 reenactment of the calendar 2014 u.s. federal research and development credit , which resulted in a catch up adjustment for the r & d credit during fiscal 2015. the decrease in our effective tax rate in fiscal 2014 compared to fiscal 2013 was due primarily to the favorable settlement of the fiscal 2010 - 2012 federal irs audits and secondarily to a higher percentage of revenue in lower taxing jurisdictions . as of september 30 , 2015 we have reported $ 52.8 million of unremitted earnings of the international subsidiaries in our consolidated income . u.s. income taxes have not been provided on undistributed earnings of international subsidiaries . it is our intention to reinvest these earnings permanently or to repatriate the earnings only when it is tax efficient to do so . the amount of the unrecognized deferred tax liability depends on judgment required to analyze the withholding tax due , the applicable tax law and related tax treaties , and factual circumstances in effect at the time of any such distribution , therefore , we believe it is not practicable at this time to reliably determine the amount of the unrecognized deferred tax liability related to our undistributed earnings . if circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted in the next twelve months and income taxes have not been recognized by the parent entity , the parent entity shall accrue as an expense of the current period income taxes attributable to that remittance . 35 operating income the following tables set forth certain summary information on a segment basis related to our operating income for the fiscal 2015 , 2014 and 2013 : replace_table_token_13_th applications replace_table_token_14_th scores replace_table_token_15_th tools replace_table_token_16_th 36 the decrease in operating income between fiscal 2015 and 2014 of $ 24.4 million was attributable to a $ 61.3 million increase in segment operating expenses , a $ 14.0 million increase in restructuring and acquisition-related expenses , an $ 8.9 million increase in share-based compensation expense and a $ 1.8 million increase in amortization expense , partially offset by a $ 49.8 million increase in segment revenues and an $ 11.8 million decrease in unallocated corporate expenses . at the segment level , the $ 0.3 million increase in segment operating income was driven by an $ 11.8 million decrease in unallocated corporate expenses and an $ 8.9 million increase in our scores segment , partially offset by a $ 10.5 million decrease in our tools segment and a $ 9.9 million decrease in our applications segment . the $ 9.9 million decrease in applications segment operating income was attributable to a $ 31.9 million increase in segment operating expenses , partially offset by a $ 22.0 million increase in segment revenues . segment operating income as a percentage of segment revenues for applications decreased to 30 % from 34 % primarily due to an increase in professional services delivery cost , as well as an increase in salaries and benefits cost as a result of our increased headcount , partially offset by an increase in sales of our higher-margin software products . the $ 8.9 million increase in scores segment operating income was attributable to a $ 20.5 million increase in segment revenues , partially offset by an $ 11.6 million increase in segment operating expenses . segment operating income as a percentage of segment revenues for scores decreased to 73 % from 76 % mainly due to a decrease in sales of our higher-margin software products , an increase in salaries and benefits cost as a result of our increased headcount , and a nonrecurring charge in third-party data cost . in addition , the margin was positively impacted by an increase in our higher-margin revenues generated from the experian agreement . the $ 10.5 million decrease in tools segment operating income ( loss ) was attributable to a $ 17.8 million increase in segment operating expenses , partially offset by a $ 7.3 million increase in segment revenues . segment operating income as a percentage of segment revenues for tools was a negative 6 % for fiscal 2015 compared to a positive 4 % for fiscal 2014 mainly due to an increase in the research and development efforts related to our cloud-based fico ® decision management platform and several new products in the tools segment , as well as an increase in professional services delivery cost , partially offset by an increase in sales of higher-margin software products . the $ 11.8 million decrease in unallocated corporate expenses was primarily attributable to a decrease in incentive cost , as well as a decrease in certain corporate charges including bad debt . the increase in operating income between fiscal 2014 and 2013 of $ 0.3 million was attributable to a $ 45.5 million increase in segment revenues and a $ 1.6 million decrease in amortization expense , partially offset by a $ 20.4 million increase in segment operating expenses , a $ 15.1 million increase in unallocated corporate expenses , a $ 10.5 million increase in share-based compensation expense and a $ 0.8 million increase in restructuring and acquisition-related expenses . at the segment level , the $ 10.0 million increase in segment operating income was driven by a $ 28.4 million increase in our applications segment and a $ 12.0 million increase in our scores segment , partially offset by a $ 15.1 million increase in unallocated corporate expenses and a $ 15.3 million decrease in our tools segment . the $ 28.4 million increase in applications segment operating income was attributable to a $ 28.2 million increase in segment revenues and a
| cash flows from operating activities our primary method for funding operations and growth has been through cash flows generated from operating activities . net cash provided by operating activities totaled $ 133.0 million in fiscal 2015 compared to $ 175.0 million in fiscal 2014. the $ 42.0 million decrease was mainly attributable to a $ 27.6 million decrease caused by timing of receipts and payments in our ordinary course of business , a $ 15.2 million increase in payment associated with our accrued incentive from prior year and an $ 11.4 million increase in our income tax payments . net cash provided by operating activities totaled $ 175.0 million in fiscal 2014 compared to $ 136.1 million in fiscal 2013. the $ 38.9 million increase was mainly attributable to a $ 40.4 million increase caused by the timing of receipts and payments in our ordinary course of business , including a $ 29.2 million increase caused by timing of payment on accrued compensation and employee benefits . cash flows from investing activities net cash used in investing activities totaled $ 81.9 million in fiscal 2015 compared to $ 19.8 million in fiscal 2014. the $ 62.1 million increase was attributable to a $ 49.7 million increase in net cash used for acquisitions and a $ 12.4 million increase in net cash used for purchases of property and equipment . net cash used in investing activities totaled $ 19.8 million in fiscal 2014 compared to $ 35.0 million in fiscal 2013. the $ 15.2 million decrease was attributable to a $ 25.6 million decrease in net cash used for acquisitions and an $ 11.6 million decrease in net cash used for purchases of property and equipment , partially offset by a $ 22.0 million decrease in proceeds from maturities of marketable securities .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from operating activities our primary method for funding operations and growth has been through cash flows generated from operating activities . net cash provided by operating activities totaled $ 133.0 million in fiscal 2015 compared to $ 175.0 million in fiscal 2014. the $ 42.0 million decrease was mainly attributable to a $ 27.6 million decrease caused by timing of receipts and payments in our ordinary course of business , a $ 15.2 million increase in payment associated with our accrued incentive from prior year and an $ 11.4 million increase in our income tax payments . net cash provided by operating activities totaled $ 175.0 million in fiscal 2014 compared to $ 136.1 million in fiscal 2013. the $ 38.9 million increase was mainly attributable to a $ 40.4 million increase caused by the timing of receipts and payments in our ordinary course of business , including a $ 29.2 million increase caused by timing of payment on accrued compensation and employee benefits . cash flows from investing activities net cash used in investing activities totaled $ 81.9 million in fiscal 2015 compared to $ 19.8 million in fiscal 2014. the $ 62.1 million increase was attributable to a $ 49.7 million increase in net cash used for acquisitions and a $ 12.4 million increase in net cash used for purchases of property and equipment . net cash used in investing activities totaled $ 19.8 million in fiscal 2014 compared to $ 35.0 million in fiscal 2013. the $ 15.2 million decrease was attributable to a $ 25.6 million decrease in net cash used for acquisitions and an $ 11.6 million decrease in net cash used for purchases of property and equipment , partially offset by a $ 22.0 million decrease in proceeds from maturities of marketable securities .
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Suspicious Activity Report : a significant portion of our revenues are derived from the sale of products and services within the banking ( including consumer credit ) industry , and 69 % and 74 % of our revenues were derived from within this industry during fiscal 2015 and 2014 , respectively . in addition , we derive a significant share of revenue from transactional or unit-based software license fees , transactional fees derived under scoring , network service or internal hosted software arrangements , annual software maintenance fees and annual license fees under long-term software license arrangements . arrangements with transactional or unit-based pricing accounted for 67 % of our revenues during fiscal 2015 and 2014 . revenue fluctuations in our business are primarily driven by changes in the transactional volume and license fees . 27 operating income for fiscal 2015 was $ 137.5 million , a decrease of 15 % from $ 161.9 million in fiscal 2014 . operating margin decreased to 16 % from 21 % . the margin decrease was primarily attributable to an increase in our restructuring cost related to the write-down of facilities , our continued investment in the areas of cloud computing and saas , and an increase in our professional services delivery cost , partially offset by a higher percentage of revenues derived from our higher-margin products including revenues generated from our experian agreement . net income decreased 9 % to $ 86.5 million in fiscal 2015 from $ 94.9 million in fiscal 2014 primarily due to the decrease in operating margin , partially offset by lower income tax expense , largely driven by a favorable tax adjustment in fiscal 2015. diluted earnings per share for fiscal 2015 was $ 2.65 , a decrease of 3 % from $ 2.72 in fiscal 2014 . bookings management regards the volume of bookings achieved as an important indicator of future revenues , but they are not comparable to nor a substitute for an analysis of our revenues . bookings represent contracts signed in the current reporting period that generate current and future revenue streams . we estimate bookings as of the end of the period in which a contract is signed and initial booking estimates are not updated in future periods for changes between estimated and actual results . our calculations have varying degrees of certainty depending on the revenue type and individual contract terms . they are subject to a number of risks and uncertainties concerning timing and contingencies affecting product delivery and performance , and estimates consider contract terms , knowledge of the marketplace and experience with our customers , among other factors . actual revenue and the timing thereof could differ materially from our initial estimates . although many of our contracts contain non-cancelable terms , most of our bookings are transactional or service related that are dependent upon estimates such as volume of transactions , number of active accounts , or number of hours incurred . since these estimates can not be considered fixed or firm , we do not believe it is appropriate to characterize bookings as backlog . the following paragraphs discuss the key assumptions used to calculate bookings and the susceptibility of these assumptions to variability for each revenue type . transactional and maintenance bookings we calculate transactional bookings as the total estimated volume of transactions or number of accounts under contract , multiplied by the contractual rate . transactional contracts generally span multiple years and require estimates of future transaction volumes or number of active accounts . we develop estimates from discussions with our customers and examinations of historical data from similar products and customer arrangements . differences between estimated bookings and actual results occur due to variability in the volume of transactions or number of active accounts estimated . this variability is primarily caused by the economic trends in our customers ' industries ; individual performance of our customers relative to their competitors ; and regulatory and other factors that affect the business environment in which our customers operate . we calculate maintenance bookings directly from the terms stated in the contract . professional services bookings we calculate professional services bookings as the estimated number of hours to complete a project multiplied by the rate per hour . we estimate the number of hours based on our understanding of the project scope , conversations with customer personnel and our experience in estimating professional services projects . estimated bookings may differ from actual results primarily due to differences in the actual number of hours incurred . license bookings licenses are sold on a perpetual or term basis and bookings generally equal the fixed amount stated in the contract . 28 bookings trend analysis replace_table_token_4_th ( 1 ) bookings yield represents the percentage of revenue recognized from bookings for the periods indicated . ( 2 ) weighted-average term of bookings measures the average term over which bookings are expected to be recognized as revenue . ( a ) nm - measure is not meaningful as our estimate of bookings is as of the end of the period in which a contract is signed , and we do not update our initial booking estimates in future periods for changes between estimated and actual results . transactional and maintenance bookings were 31 % and 29 % of total bookings for the years ended september 30 , 2015 and 2014 , respectively . professional services bookings were 47 % of total bookings for the years ended september 30 , 2015 and 2014 . license bookings were 22 % and 24 % of total bookings for the years ended september 30 , 2015 and 2014 , respectively . results of operations we are organized into the following three reportable segments : applications , scores and tools . story_separator_special_tag the decrease in our effective tax rate in fiscal 2015 compared to fiscal 2014 was due primarily to the favorable settlement of the fiscal 2006 - 2009 state audits and the favorable settlement of the 2010 foreign transfer pricing assessment , as well as the december 2014 reenactment of the calendar 2014 u.s. federal research and development credit , which resulted in a catch up adjustment for the r & d credit during fiscal 2015. the decrease in our effective tax rate in fiscal 2014 compared to fiscal 2013 was due primarily to the favorable settlement of the fiscal 2010 - 2012 federal irs audits and secondarily to a higher percentage of revenue in lower taxing jurisdictions . as of september 30 , 2015 we have reported $ 52.8 million of unremitted earnings of the international subsidiaries in our consolidated income . u.s. income taxes have not been provided on undistributed earnings of international subsidiaries . it is our intention to reinvest these earnings permanently or to repatriate the earnings only when it is tax efficient to do so . the amount of the unrecognized deferred tax liability depends on judgment required to analyze the withholding tax due , the applicable tax law and related tax treaties , and factual circumstances in effect at the time of any such distribution , therefore , we believe it is not practicable at this time to reliably determine the amount of the unrecognized deferred tax liability related to our undistributed earnings . if circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted in the next twelve months and income taxes have not been recognized by the parent entity , the parent entity shall accrue as an expense of the current period income taxes attributable to that remittance . 35 operating income the following tables set forth certain summary information on a segment basis related to our operating income for the fiscal 2015 , 2014 and 2013 : replace_table_token_13_th applications replace_table_token_14_th scores replace_table_token_15_th tools replace_table_token_16_th 36 the decrease in operating income between fiscal 2015 and 2014 of $ 24.4 million was attributable to a $ 61.3 million increase in segment operating expenses , a $ 14.0 million increase in restructuring and acquisition-related expenses , an $ 8.9 million increase in share-based compensation expense and a $ 1.8 million increase in amortization expense , partially offset by a $ 49.8 million increase in segment revenues and an $ 11.8 million decrease in unallocated corporate expenses . at the segment level , the $ 0.3 million increase in segment operating income was driven by an $ 11.8 million decrease in unallocated corporate expenses and an $ 8.9 million increase in our scores segment , partially offset by a $ 10.5 million decrease in our tools segment and a $ 9.9 million decrease in our applications segment . the $ 9.9 million decrease in applications segment operating income was attributable to a $ 31.9 million increase in segment operating expenses , partially offset by a $ 22.0 million increase in segment revenues . segment operating income as a percentage of segment revenues for applications decreased to 30 % from 34 % primarily due to an increase in professional services delivery cost , as well as an increase in salaries and benefits cost as a result of our increased headcount , partially offset by an increase in sales of our higher-margin software products . the $ 8.9 million increase in scores segment operating income was attributable to a $ 20.5 million increase in segment revenues , partially offset by an $ 11.6 million increase in segment operating expenses . segment operating income as a percentage of segment revenues for scores decreased to 73 % from 76 % mainly due to a decrease in sales of our higher-margin software products , an increase in salaries and benefits cost as a result of our increased headcount , and a nonrecurring charge in third-party data cost . in addition , the margin was positively impacted by an increase in our higher-margin revenues generated from the experian agreement . the $ 10.5 million decrease in tools segment operating income ( loss ) was attributable to a $ 17.8 million increase in segment operating expenses , partially offset by a $ 7.3 million increase in segment revenues . segment operating income as a percentage of segment revenues for tools was a negative 6 % for fiscal 2015 compared to a positive 4 % for fiscal 2014 mainly due to an increase in the research and development efforts related to our cloud-based fico ® decision management platform and several new products in the tools segment , as well as an increase in professional services delivery cost , partially offset by an increase in sales of higher-margin software products . the $ 11.8 million decrease in unallocated corporate expenses was primarily attributable to a decrease in incentive cost , as well as a decrease in certain corporate charges including bad debt . the increase in operating income between fiscal 2014 and 2013 of $ 0.3 million was attributable to a $ 45.5 million increase in segment revenues and a $ 1.6 million decrease in amortization expense , partially offset by a $ 20.4 million increase in segment operating expenses , a $ 15.1 million increase in unallocated corporate expenses , a $ 10.5 million increase in share-based compensation expense and a $ 0.8 million increase in restructuring and acquisition-related expenses . at the segment level , the $ 10.0 million increase in segment operating income was driven by a $ 28.4 million increase in our applications segment and a $ 12.0 million increase in our scores segment , partially offset by a $ 15.1 million increase in unallocated corporate expenses and a $ 15.3 million decrease in our tools segment . the $ 28.4 million increase in applications segment operating income was attributable to a $ 28.2 million increase in segment revenues and a
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1,039 | the government/surveillance market consists of key segments that include state and local law enforcement agencies , federal agencies and military system integrators . customers within the government/surveillance market include recognizable state police forces , sheriff 's departments , fire departments , first responders , the department of justice and the department of homeland security . the key solutions imt provides to this market are mission-critical wireless video solutions for applications , including manned and unmanned aerial and ground systems , mobile and handheld receive systems and transmitters for concealed video surveillance . imt 's products in this market are sold under the brand name imt . 17 vislink the company originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , the company completed the acquisition of the net assets that constituted the business of vislink , pursuant to an asset purchase agreement by and among the company , vislink plc , an england and wales registered limited company , vislink international limited , an england and wales registered limited liability company , and vislink inc. , a delaware corporation , dated december 16 , 2016 , as amended on january 13 , 2017. vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : ( i ) broadcast and media and ( ii ) law enforcement , public safety and surveillance . in the broadcast and media market , vislink provides broadcast communication links for the collection of live news and sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety and surveillance market , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its law enforcement , public safety and surveillance customers include metropolitan , regional and national law enforcement agencies , as well as domestic and international defense agencies and organizations . in 2017 , we merged vislink 's product offerings and operations with those of imt into vislink technologies . we have completed the co-branding of imt and vislink , while still preserving the vislink brand and its legacy brands , including gigawave , link , advent and mrc , in markets where strong brand identification still exists . imt has assumed the vislink product warranties and support for all the vislink and imt product offerings . vislink 's business in the americas has become part of imt , while its business in the rest of the world is operated by vislink 's u.k. operation . 18 results of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2018 , and 2017. vislink technologies , inc. ( f/k/a xg technology , inc. ) and subsidiaries consolidated statements of operations and comprehensive loss ( in thousands ) replace_table_token_1_th revenue revenues for the year ended december 31 , 2018 were $ 38.3 million compared to $ 47.8 million for the year ended december 31 , 2017 , representing a decrease of $ 9.5 million or 20 % . the decrease can be attributed to one-time sales being recorded in the second quarter of 2017 which included a $ 2.4 million government sale in south america to upgrade their systems from analog to digital . the company experienced a decline in revenue for the north american , europe , asia and rest of world markets in the amount of approximately $ 3.8 million for the year ended december 31 , 2018. part of the decrease in sales was the result of the cost reduction programs implemented in the second through fourth quarters of 2018 which led to specific actions to also rationalize our best revenue opportunities and eliminate low value sales . efforts were also focused on relieving supply chain shortages in order to be able to deliver backorders to customers on a timely basis . 19 cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the year ended december 31 , 2018 were $ 19.2 million compared to $ 28.2 million for the year ended december 31 , 2017 , representing a decrease of $ 9.0 million or 32 % . the decrease is primarily due to a decline in revenue resulting in less cost of components . however , we did have increased margins on revenue for the year ended december 31 , 2018 as the inclusion of the amortization of “ inventory step-up ” generated by the fair value assessed by third-party appraisals associated with the acquisition of imt and vislink was included in cost of components for the year ended december 31 , 2017 and fully amortized by the end of fiscal year 2018. the assigned fair value associated with our business acquisitions have been amortized and included in cost of components and personnel in the amounts $ -0- for the year ended december 31 , 2018 , compared to $ 3.5 million for the year ended december 31 , 2017. inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or written down to their net realizable value . story_separator_special_tag on december 3 , 2018 , the company entered into an agreement with the majority investors to modify the first amended may debentures by issuing the second amended and restated debentures ( the “ second amended may debentures ” ; and together with the original may debentures and the first amended may debentures , the “ may debentures ” ) to the majority investors . the may warrants are exercisable to purchase up to an aggregate of 3,000,000 shares of common stock commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ exercise price ” ) . the may warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes . a.g.p./alliance global partners served as the placement agent for the company ( “ agp ” or the “ placement agent ” ) . the placement agent received warrants to purchase 200,000 shares of common stock ( the “ placement agent warrants ” ) . the placement agent warrants are exercisable commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ placement agent exercise price ” ) . the placement agent warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the placement agent exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes description of the second amended may debentures the second amended may debentures contain a five percent ( 5 % ) original issue discount to the principal amounts contained therein . prior to the may debentures maturity date ( as defined below ) , the second amended may debentures bear interest at 10 % per annum , with 12 months interest guaranteed . interest shall be paid quarterly in cash on january 1 , april 1 , july 1 , and october 1 beginning on the first such date after the issuance of the second amended may debentures , on each conversion date ( as defined in the second amended may debentures ) , on each redemption date ( as set forth in the second amended may debentures ) , and on the may debentures maturity date ( as defined below ) . the second amended may debentures rank senior to the company 's existing and future indebtedness and are secured to the extent and as provided in the may security agreement and the may subsidiary guarantee . 24 the second amended may debentures are convertible at any time after their date of issuance at the option of the majority investors into shares of common stock at $ 0.45 per share ( the “ may conversion price ” ) . the second amended may debentures mature on september 30 , 2019 ( the “ may debentures maturity date ” ) . commencing on december 1 , 2018 , and continuing for each fiscal month thereafter through the may debentures maturity date , the company will make payments of principal and interest as monthly redemptions ( as defined in the second amended may debentures ) to the majority investors in order to fully amortize the second amended may debentures . the may conversion price is subject to adjustment for events of default ( as defined in the second amended may debentures ) and upon stock splits , reverse stock splits , and similar capital changes . at any time after issuance of the second amended may debentures , and subject to the certain equity conditions ( as defined in the second amended may debentures ) the company may redeem any portion of the principal amount of the second amended may debentures , any accrued and unpaid , and any other amounts due under the second amended may debentures . if the company exercises its right to prepay the second amended may debentures , the company will pay to the majority investors an amount in cash equal to the sum of the then outstanding principal amount of the second amended may debentures and guaranteed interest as follows : ( i ) from the initial issuance date of the second amended may debentures to the day prior to the 181-day anniversary of the issuance of the second amended may debentures , a 110 % premium ; and ( ii ) from the 181-day anniversary of the issuance of the second amended may debentures to the may debentures maturity date , a 115 % premium . the majority investors may continue to convert the second amended may debentures until the optional redemption payment ( as defined in the second amended may debentures ) is paid . at any time after issuance of the second amended may debentures , in the event that the company consummates a subsequent financing ( as defined in the second amended may debentures ) , the company must make a mandatory redemption in full of the second amended may debentures , in cash , to the majority investors at the same premiums described with respect to the optional redemption ( as defined in the second amended may debentures ) . until the 60-day anniversary of the issuance of the second amended may debentures , the company may not consummate a subsequent financing ( as defined in the second amended may debentures ) . so long as the second amended may debentures are outstanding , the company is prohibited from entering into any variable rate transactions ( as defined in the second amended may debentures ) . the conversion of the second amended may debentures are subject to beneficial ownership limitations such that a majority investor may not convert a second amended may debenture to the extent that such conversion would result in the majority investor being the beneficial owner in excess of 4.99
| cash flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2018 totaled $ 6.4 million as compared to $ 4.5 million for the year ended december 31 , 2017 , an increase of $ 1.9 million or 42.22 % . the increase of $ 1.9 million is attributable to an increase in net loss of $ 4.5 million ; a decrease of $ 6.4 million in accounts payable ; an increase of $ 3.1 million in the change in fair value of derivative liabilities ; a decrease of $ 1.8 million in due to related parties ; a decrease of $ 1.5 million of accrued expense and interest expense ; a decrease of $ 1.2 million of inventory ; a decrease of $ 1.4 million of depreciation and amortization ; a decrease of $ 1.3 million of inventory valuation adjustments ; a decrease of $ 1.2 million of stock-based compensation payroll and consultants ; a decrease of $ 0.7 million of prepaid expenses and other current assets ; a decrease of $ 0.4 million of guaranteed interest and debt issuance costs ; a decrease of $ 0.3 million of a line of credit commitment fee ; a decrease of $ 0.2 million each for stock issuance commitments and provision for bad debts , respectively ; and an increase of $ 0.1 million for the gain on sale of property and equipment .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2018 totaled $ 6.4 million as compared to $ 4.5 million for the year ended december 31 , 2017 , an increase of $ 1.9 million or 42.22 % . the increase of $ 1.9 million is attributable to an increase in net loss of $ 4.5 million ; a decrease of $ 6.4 million in accounts payable ; an increase of $ 3.1 million in the change in fair value of derivative liabilities ; a decrease of $ 1.8 million in due to related parties ; a decrease of $ 1.5 million of accrued expense and interest expense ; a decrease of $ 1.2 million of inventory ; a decrease of $ 1.4 million of depreciation and amortization ; a decrease of $ 1.3 million of inventory valuation adjustments ; a decrease of $ 1.2 million of stock-based compensation payroll and consultants ; a decrease of $ 0.7 million of prepaid expenses and other current assets ; a decrease of $ 0.4 million of guaranteed interest and debt issuance costs ; a decrease of $ 0.3 million of a line of credit commitment fee ; a decrease of $ 0.2 million each for stock issuance commitments and provision for bad debts , respectively ; and an increase of $ 0.1 million for the gain on sale of property and equipment .
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Suspicious Activity Report : the government/surveillance market consists of key segments that include state and local law enforcement agencies , federal agencies and military system integrators . customers within the government/surveillance market include recognizable state police forces , sheriff 's departments , fire departments , first responders , the department of justice and the department of homeland security . the key solutions imt provides to this market are mission-critical wireless video solutions for applications , including manned and unmanned aerial and ground systems , mobile and handheld receive systems and transmitters for concealed video surveillance . imt 's products in this market are sold under the brand name imt . 17 vislink the company originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , the company completed the acquisition of the net assets that constituted the business of vislink , pursuant to an asset purchase agreement by and among the company , vislink plc , an england and wales registered limited company , vislink international limited , an england and wales registered limited liability company , and vislink inc. , a delaware corporation , dated december 16 , 2016 , as amended on january 13 , 2017. vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : ( i ) broadcast and media and ( ii ) law enforcement , public safety and surveillance . in the broadcast and media market , vislink provides broadcast communication links for the collection of live news and sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety and surveillance market , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its law enforcement , public safety and surveillance customers include metropolitan , regional and national law enforcement agencies , as well as domestic and international defense agencies and organizations . in 2017 , we merged vislink 's product offerings and operations with those of imt into vislink technologies . we have completed the co-branding of imt and vislink , while still preserving the vislink brand and its legacy brands , including gigawave , link , advent and mrc , in markets where strong brand identification still exists . imt has assumed the vislink product warranties and support for all the vislink and imt product offerings . vislink 's business in the americas has become part of imt , while its business in the rest of the world is operated by vislink 's u.k. operation . 18 results of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2018 , and 2017. vislink technologies , inc. ( f/k/a xg technology , inc. ) and subsidiaries consolidated statements of operations and comprehensive loss ( in thousands ) replace_table_token_1_th revenue revenues for the year ended december 31 , 2018 were $ 38.3 million compared to $ 47.8 million for the year ended december 31 , 2017 , representing a decrease of $ 9.5 million or 20 % . the decrease can be attributed to one-time sales being recorded in the second quarter of 2017 which included a $ 2.4 million government sale in south america to upgrade their systems from analog to digital . the company experienced a decline in revenue for the north american , europe , asia and rest of world markets in the amount of approximately $ 3.8 million for the year ended december 31 , 2018. part of the decrease in sales was the result of the cost reduction programs implemented in the second through fourth quarters of 2018 which led to specific actions to also rationalize our best revenue opportunities and eliminate low value sales . efforts were also focused on relieving supply chain shortages in order to be able to deliver backorders to customers on a timely basis . 19 cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the year ended december 31 , 2018 were $ 19.2 million compared to $ 28.2 million for the year ended december 31 , 2017 , representing a decrease of $ 9.0 million or 32 % . the decrease is primarily due to a decline in revenue resulting in less cost of components . however , we did have increased margins on revenue for the year ended december 31 , 2018 as the inclusion of the amortization of “ inventory step-up ” generated by the fair value assessed by third-party appraisals associated with the acquisition of imt and vislink was included in cost of components for the year ended december 31 , 2017 and fully amortized by the end of fiscal year 2018. the assigned fair value associated with our business acquisitions have been amortized and included in cost of components and personnel in the amounts $ -0- for the year ended december 31 , 2018 , compared to $ 3.5 million for the year ended december 31 , 2017. inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or written down to their net realizable value . story_separator_special_tag on december 3 , 2018 , the company entered into an agreement with the majority investors to modify the first amended may debentures by issuing the second amended and restated debentures ( the “ second amended may debentures ” ; and together with the original may debentures and the first amended may debentures , the “ may debentures ” ) to the majority investors . the may warrants are exercisable to purchase up to an aggregate of 3,000,000 shares of common stock commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ exercise price ” ) . the may warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes . a.g.p./alliance global partners served as the placement agent for the company ( “ agp ” or the “ placement agent ” ) . the placement agent received warrants to purchase 200,000 shares of common stock ( the “ placement agent warrants ” ) . the placement agent warrants are exercisable commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ placement agent exercise price ” ) . the placement agent warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the placement agent exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes description of the second amended may debentures the second amended may debentures contain a five percent ( 5 % ) original issue discount to the principal amounts contained therein . prior to the may debentures maturity date ( as defined below ) , the second amended may debentures bear interest at 10 % per annum , with 12 months interest guaranteed . interest shall be paid quarterly in cash on january 1 , april 1 , july 1 , and october 1 beginning on the first such date after the issuance of the second amended may debentures , on each conversion date ( as defined in the second amended may debentures ) , on each redemption date ( as set forth in the second amended may debentures ) , and on the may debentures maturity date ( as defined below ) . the second amended may debentures rank senior to the company 's existing and future indebtedness and are secured to the extent and as provided in the may security agreement and the may subsidiary guarantee . 24 the second amended may debentures are convertible at any time after their date of issuance at the option of the majority investors into shares of common stock at $ 0.45 per share ( the “ may conversion price ” ) . the second amended may debentures mature on september 30 , 2019 ( the “ may debentures maturity date ” ) . commencing on december 1 , 2018 , and continuing for each fiscal month thereafter through the may debentures maturity date , the company will make payments of principal and interest as monthly redemptions ( as defined in the second amended may debentures ) to the majority investors in order to fully amortize the second amended may debentures . the may conversion price is subject to adjustment for events of default ( as defined in the second amended may debentures ) and upon stock splits , reverse stock splits , and similar capital changes . at any time after issuance of the second amended may debentures , and subject to the certain equity conditions ( as defined in the second amended may debentures ) the company may redeem any portion of the principal amount of the second amended may debentures , any accrued and unpaid , and any other amounts due under the second amended may debentures . if the company exercises its right to prepay the second amended may debentures , the company will pay to the majority investors an amount in cash equal to the sum of the then outstanding principal amount of the second amended may debentures and guaranteed interest as follows : ( i ) from the initial issuance date of the second amended may debentures to the day prior to the 181-day anniversary of the issuance of the second amended may debentures , a 110 % premium ; and ( ii ) from the 181-day anniversary of the issuance of the second amended may debentures to the may debentures maturity date , a 115 % premium . the majority investors may continue to convert the second amended may debentures until the optional redemption payment ( as defined in the second amended may debentures ) is paid . at any time after issuance of the second amended may debentures , in the event that the company consummates a subsequent financing ( as defined in the second amended may debentures ) , the company must make a mandatory redemption in full of the second amended may debentures , in cash , to the majority investors at the same premiums described with respect to the optional redemption ( as defined in the second amended may debentures ) . until the 60-day anniversary of the issuance of the second amended may debentures , the company may not consummate a subsequent financing ( as defined in the second amended may debentures ) . so long as the second amended may debentures are outstanding , the company is prohibited from entering into any variable rate transactions ( as defined in the second amended may debentures ) . the conversion of the second amended may debentures are subject to beneficial ownership limitations such that a majority investor may not convert a second amended may debenture to the extent that such conversion would result in the majority investor being the beneficial owner in excess of 4.99
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1,040 | the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews . greater than expected costs or difficulties related to the integration of new products and lines of business . the company 's success at managing the risks involved in the foregoing items . forward-looking statements speak only as of the date on which such statements are made . the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events . recent market developments the dodd-frank act was signed into law on july 21 , 2010. this new law has and will continue to significantly change the current bank regulatory structure and affect the lending , deposit , investment , trading and operating activities of financial institutions and their holding companies , and will fundamentally change the system of regulatory oversight of the company , including through the creation of the financial stability oversight council . the dodd-frank act requires various federal agencies to adopt a broad range of new implementing rules and regulations , and to prepare numerous studies and reports for congress . the federal agencies are given significant discretion in drafting the implementing rules and regulations , and , as a result , many of the details and much of the impact of the dodd-frank act is not yet known . the dodd-frank act , however , could have a material adverse impact either on the financial services industry as a whole , or on first defiance 's business , results of operations , financial condition and liquidity . the dodd-frank act broadens the base for fdic insurance assessments . assessments will now be based on the average consolidated total assets less tangible equity capital of a financial institution . the dodd-frank act also permanently increases the maximum amount of deposit insurance for banks , savings institutions and credit unions to $ 250,000 per depositor , retroactive to january 1 , 2009 , and non-interest bearing transaction accounts have unlimited deposit insurance through december 31 , 2013. the legislation also requires that publicly traded companies give shareholders a non-binding vote on executive compensation and golden parachute payments , and authorizes the securities and exchange commission to promulgate rules that would allow shareholders to nominate their own candidates using a company 's proxy materials . the dodd-frank act also directs the federal reserve board to promulgate rules prohibiting excessive compensation paid to bank holding company executives , regardless of whether the company is publicly traded . the dodd-frank act established a new bureau of consumer financial protection with broad powers to supervise and enforce consumer protection laws . the bureau of consumer financial protection has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions , including the authority to prohibit unfair , deceptive or abusive acts and practices . the bureau of consumer financial protection has examination and enforcement authority over all banks and savings institutions with more than $ 10 billion in assets . in addition , the dodd-frank act , among other things : -40- amends the electronic fund transfer act ( efta ) which has resulted in , among other things , the federal reserve board issuing rules aimed at limiting debit-card interchange fees ; applies the same leverage and risk-based capital requirements that apply to insured depository institutions to most financial holding companies ; changes the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital , eliminates the ceiling on the size of the dif , and increases the floor on the size of the dif , which generally will require an increase in the level of assessments for institutions with assets in excess of $ 10 billion ; repeals the federal prohibitions on the payment of interest on demand deposits , thereby permitting depository institutions to pay interest on business transaction and other accounts ; provides mortgage reform provisions regarding a customer 's ability to repay , restricting variable-rate lending by requiring the ability to repay to be determined for variable-rate loans by using the maximum rate that will apply during the first five years of a variable-rate loan term , and making more loans subject to provisions for higher cost loans , new disclosures , and certain other revisions ; creates the financial stability oversight council , which will recommend to the federal reserve board increasingly strict rules for capital , leverage , liquidity , risk management and other requirements as companies grow in size and complexity ; and eliminate the ots one year from the date of the new law 's enactment , making the occ , which is currently the primary federal regulator for national banks , the primary federal regulator for federal thrifts , including first federal . in addition , the board of governors of the federal reserve system will supervise and regulate all savings and loan holding companies that were formerly regulated by the ots , including first defiance . the environment in which banking organizations will operate after the financial crisis , including legislative and regulatory changes affecting capital , liquidity , supervision , permissible activities , corporate governance and compensation , changes in fiscal policy and steps to eliminate government support for banking organizations , may have long-term effects on the business model and profitability of banking organizations , the full extent of which can not now be foreseen . many aspects of the dodd-frank act remain subject to rulemaking and will take effect over several years , making it difficult to anticipate the overall financial impact on first defiance , its customers or the financial industry more generally . story_separator_special_tag management utilizes the results of this outside loan review to assess the effectiveness of its internal loan grading system as well as to assist in the assessment of the overall adequacy of the allowance for loan losses associated with these types of loans . the provision for loan losses is determined by management as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level which , in management 's best estimate , is necessary to absorb probable credit losses within the existing loan portfolio in the normal course of business . the allowance for loan loss is made up of two basic components . the first component is the specific allowance in which the company sets aside reserves based on the analysis of individual credits . the second component is the general reserve . the general reserve is used to record loan loss reserves for groups of homogenous loans in which the company estimates the losses incurred in the portfolios based on quantitative and qualitative factors . due to the uncertainty of risks in the loan portfolio , the company 's judgment on the amount of the allowance necessary to absorb loans losses is approximate . table 3 presents the allocation of the specific and general components of the allowance by signification loan types . in establishing specific reserves , first federal analyzes all loans on its classified and special mention lists at least quarterly and makes judgments about the risk of loss based on the cash flow of the borrower , the value of any collateral and the financial strength of any guarantor in determining the amount of impairment of individual loans and the specific reserve to be recorded . for purpose of the general reserve analysis , the loan portfolio is stratified into ten different loan pools based on loan type and by market area to allocate historic loss experience . the loss experience factor applied to the non-impaired loan portfolio was based upon historical losses of the most recent weighted two years used at december 31 , 2010. the stratification of the loan portfolio resulted in a quantitative general allowance of $ 14.0 million at december 31 , 2010 compared to $ 10.5 million at december 31 , 2009. the increase in the quantitative allowance was due to the increase in the historical loss factors relating to commercial , commercial real estate , residential and credit card loans . in addition to the quantitative analysis , a qualitative analysis is performed each quarter to provide additional general reserves on the non-impaired loan portfolio for various factors that have a bearing on its loss content , including but not limited to the following : changes in international , national and local economic and business conditions and developments , including the condition of various market segments changes in the nature and volume of the loan portfolio changes in the trends of the volume and severity of past due and classified loans ; and changes in trends in the volume of non-accrual loans , troubled debt restructurings and other loan modifications the existence and effect of any concentrations of credit and changes in the level of such concentrations changes in the value of underlying collateral for collateral dependent loans changes in the political and regulatory environment changes in lending policies and procedures , including underwriting standards and collection , charge-off and recovery practices changes in the experience , ability and depth of lending management and staff changes in the quality and breadth of the loan review process -46- the qualitative analysis at december 31 , 2010 indicated a general reserve of $ 10.5 million compared with $ 8.7 million at december 31 , 2009. this decrease was mainly driven by improved cash flows and operating results of borrowers in 2010. in light of the continued environment of high unemployment , declining real estate values and sustained economic weakness in the midwest , management feels it is prudent to maintain a higher level of general loan loss reserves . all 14 counties that represent the footprint of the company have seen improvements in their unemployment rates in 2010 , with only three below the national average of 9.1 % . the company operated one branch in hillsdale county in 2009 , but that office was closed in january 2010 , therefore , that data is not being presented in this comparison . the unemployment rates in december 2010 for the following counties in ohio were : allen 9.8 % , defiance 9.9 % , fulton 10.6 % , hancock 8.1 % , henry 11.1 % , lucas 10.1 % , ottawa 16.3 % , paulding 9.8 % , putnam 8.4 % , seneca 10.2 % , williams 11.1 % and wood 9.0 % , compared to december 2009 in allen 11.6 % , defiance 12.8 % , fulton 14.3 % , hancock 9.6 % , henry 13.9 % , lucas 12.3 % , ottawa 17.3 % , paulding 12.7 % , putnam 11.0 % , seneca 13.0 % , williams 14.9 % and wood 11.1 % . the company operates in one county in michigan , lenawee which had an unemployment rate of 12.4 % in december 2010 compared to 16.6 % in december 2009. the company operates in one county in indiana , allen , which had an unemployment rate of 9.4 % in december 2010 compared to 10.0 % in december 2009. first defiance 's general reserve percentages for main loan segments not otherwise classified ranged from 0.29 % for construction loans to 1.70 % for commercial loans . credit cards were 10.56 % . as a result of the quantitative and qualitative analyses , along with the change in specific reserves , the company 's provision for loan losses for 2010 was $ 23.2 million , which is unchanged since december 31 , 2009. the allowance for loan losses was $ 41.1 million and
| capital resources total shareholders ' equity increased $ 6.2 million to $ 240.3 million at december 31 , 2010. this increase is primarily the result of the company 's $ 8.1 million of net income . this increase was mostly offset by a $ 1.9 million of preferred stock dividends at december 31 , 2010. in 2003 , the company 's board of directors authorized the repurchase of 640,000 shares , 93,124 of which remain available for repurchase . during 2010 , no shares were repurchased but a total of 250 stock options were exercised by three employees , resulting in a $ 3,000 increase in shareholders equity . during 2009 , no shares were repurchased but a total of 400 stock options were exercised by one employee , resulting in a $ 5,000 increase in shareholders equity . participation in the cpp prohibits the company from buying back any of its common shares during the period it has cpp funds outstanding . further , the ots has required first defiance to obtain ots approval prior to the repurchase of any of its common stock . -53- results of operations summary first defiance reported net income of $ 8.1 million for the year ended december 31 , 2010 compared to $ 7.2 million and $ 7.4 million for the years ended december 31 , 2009 and 2008 , respectively . net income applicable to common shares was $ 6.1 million in 2010 compared with $ 5.2 million in 2009 and $ 7.2 million in 2008. on a diluted per common share basis , first defiance earned $ 0.75 in 2010 , $ 0.63 in 2009 and $ 0.91 in 2008. first defiance 's 2010 net income of $ 8.1 million included $ 63,000 of acquisition related costs resulting from the andres o'neil & lowe insurance agency ( aol ) acquisition earlier in 2010. the 2009 net income did not include any acquisition related costs . the 2008 net income amount includes $ 1.1 million of acquisition related costs that were incurred as part of the pavilion acquisition .
| 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. |
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.
```capital resources total shareholders ' equity increased $ 6.2 million to $ 240.3 million at december 31 , 2010. this increase is primarily the result of the company 's $ 8.1 million of net income . this increase was mostly offset by a $ 1.9 million of preferred stock dividends at december 31 , 2010. in 2003 , the company 's board of directors authorized the repurchase of 640,000 shares , 93,124 of which remain available for repurchase . during 2010 , no shares were repurchased but a total of 250 stock options were exercised by three employees , resulting in a $ 3,000 increase in shareholders equity . during 2009 , no shares were repurchased but a total of 400 stock options were exercised by one employee , resulting in a $ 5,000 increase in shareholders equity . participation in the cpp prohibits the company from buying back any of its common shares during the period it has cpp funds outstanding . further , the ots has required first defiance to obtain ots approval prior to the repurchase of any of its common stock . -53- results of operations summary first defiance reported net income of $ 8.1 million for the year ended december 31 , 2010 compared to $ 7.2 million and $ 7.4 million for the years ended december 31 , 2009 and 2008 , respectively . net income applicable to common shares was $ 6.1 million in 2010 compared with $ 5.2 million in 2009 and $ 7.2 million in 2008. on a diluted per common share basis , first defiance earned $ 0.75 in 2010 , $ 0.63 in 2009 and $ 0.91 in 2008. first defiance 's 2010 net income of $ 8.1 million included $ 63,000 of acquisition related costs resulting from the andres o'neil & lowe insurance agency ( aol ) acquisition earlier in 2010. the 2009 net income did not include any acquisition related costs . the 2008 net income amount includes $ 1.1 million of acquisition related costs that were incurred as part of the pavilion acquisition .
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Suspicious Activity Report : the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews . greater than expected costs or difficulties related to the integration of new products and lines of business . the company 's success at managing the risks involved in the foregoing items . forward-looking statements speak only as of the date on which such statements are made . the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events . recent market developments the dodd-frank act was signed into law on july 21 , 2010. this new law has and will continue to significantly change the current bank regulatory structure and affect the lending , deposit , investment , trading and operating activities of financial institutions and their holding companies , and will fundamentally change the system of regulatory oversight of the company , including through the creation of the financial stability oversight council . the dodd-frank act requires various federal agencies to adopt a broad range of new implementing rules and regulations , and to prepare numerous studies and reports for congress . the federal agencies are given significant discretion in drafting the implementing rules and regulations , and , as a result , many of the details and much of the impact of the dodd-frank act is not yet known . the dodd-frank act , however , could have a material adverse impact either on the financial services industry as a whole , or on first defiance 's business , results of operations , financial condition and liquidity . the dodd-frank act broadens the base for fdic insurance assessments . assessments will now be based on the average consolidated total assets less tangible equity capital of a financial institution . the dodd-frank act also permanently increases the maximum amount of deposit insurance for banks , savings institutions and credit unions to $ 250,000 per depositor , retroactive to january 1 , 2009 , and non-interest bearing transaction accounts have unlimited deposit insurance through december 31 , 2013. the legislation also requires that publicly traded companies give shareholders a non-binding vote on executive compensation and golden parachute payments , and authorizes the securities and exchange commission to promulgate rules that would allow shareholders to nominate their own candidates using a company 's proxy materials . the dodd-frank act also directs the federal reserve board to promulgate rules prohibiting excessive compensation paid to bank holding company executives , regardless of whether the company is publicly traded . the dodd-frank act established a new bureau of consumer financial protection with broad powers to supervise and enforce consumer protection laws . the bureau of consumer financial protection has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions , including the authority to prohibit unfair , deceptive or abusive acts and practices . the bureau of consumer financial protection has examination and enforcement authority over all banks and savings institutions with more than $ 10 billion in assets . in addition , the dodd-frank act , among other things : -40- amends the electronic fund transfer act ( efta ) which has resulted in , among other things , the federal reserve board issuing rules aimed at limiting debit-card interchange fees ; applies the same leverage and risk-based capital requirements that apply to insured depository institutions to most financial holding companies ; changes the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital , eliminates the ceiling on the size of the dif , and increases the floor on the size of the dif , which generally will require an increase in the level of assessments for institutions with assets in excess of $ 10 billion ; repeals the federal prohibitions on the payment of interest on demand deposits , thereby permitting depository institutions to pay interest on business transaction and other accounts ; provides mortgage reform provisions regarding a customer 's ability to repay , restricting variable-rate lending by requiring the ability to repay to be determined for variable-rate loans by using the maximum rate that will apply during the first five years of a variable-rate loan term , and making more loans subject to provisions for higher cost loans , new disclosures , and certain other revisions ; creates the financial stability oversight council , which will recommend to the federal reserve board increasingly strict rules for capital , leverage , liquidity , risk management and other requirements as companies grow in size and complexity ; and eliminate the ots one year from the date of the new law 's enactment , making the occ , which is currently the primary federal regulator for national banks , the primary federal regulator for federal thrifts , including first federal . in addition , the board of governors of the federal reserve system will supervise and regulate all savings and loan holding companies that were formerly regulated by the ots , including first defiance . the environment in which banking organizations will operate after the financial crisis , including legislative and regulatory changes affecting capital , liquidity , supervision , permissible activities , corporate governance and compensation , changes in fiscal policy and steps to eliminate government support for banking organizations , may have long-term effects on the business model and profitability of banking organizations , the full extent of which can not now be foreseen . many aspects of the dodd-frank act remain subject to rulemaking and will take effect over several years , making it difficult to anticipate the overall financial impact on first defiance , its customers or the financial industry more generally . story_separator_special_tag management utilizes the results of this outside loan review to assess the effectiveness of its internal loan grading system as well as to assist in the assessment of the overall adequacy of the allowance for loan losses associated with these types of loans . the provision for loan losses is determined by management as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level which , in management 's best estimate , is necessary to absorb probable credit losses within the existing loan portfolio in the normal course of business . the allowance for loan loss is made up of two basic components . the first component is the specific allowance in which the company sets aside reserves based on the analysis of individual credits . the second component is the general reserve . the general reserve is used to record loan loss reserves for groups of homogenous loans in which the company estimates the losses incurred in the portfolios based on quantitative and qualitative factors . due to the uncertainty of risks in the loan portfolio , the company 's judgment on the amount of the allowance necessary to absorb loans losses is approximate . table 3 presents the allocation of the specific and general components of the allowance by signification loan types . in establishing specific reserves , first federal analyzes all loans on its classified and special mention lists at least quarterly and makes judgments about the risk of loss based on the cash flow of the borrower , the value of any collateral and the financial strength of any guarantor in determining the amount of impairment of individual loans and the specific reserve to be recorded . for purpose of the general reserve analysis , the loan portfolio is stratified into ten different loan pools based on loan type and by market area to allocate historic loss experience . the loss experience factor applied to the non-impaired loan portfolio was based upon historical losses of the most recent weighted two years used at december 31 , 2010. the stratification of the loan portfolio resulted in a quantitative general allowance of $ 14.0 million at december 31 , 2010 compared to $ 10.5 million at december 31 , 2009. the increase in the quantitative allowance was due to the increase in the historical loss factors relating to commercial , commercial real estate , residential and credit card loans . in addition to the quantitative analysis , a qualitative analysis is performed each quarter to provide additional general reserves on the non-impaired loan portfolio for various factors that have a bearing on its loss content , including but not limited to the following : changes in international , national and local economic and business conditions and developments , including the condition of various market segments changes in the nature and volume of the loan portfolio changes in the trends of the volume and severity of past due and classified loans ; and changes in trends in the volume of non-accrual loans , troubled debt restructurings and other loan modifications the existence and effect of any concentrations of credit and changes in the level of such concentrations changes in the value of underlying collateral for collateral dependent loans changes in the political and regulatory environment changes in lending policies and procedures , including underwriting standards and collection , charge-off and recovery practices changes in the experience , ability and depth of lending management and staff changes in the quality and breadth of the loan review process -46- the qualitative analysis at december 31 , 2010 indicated a general reserve of $ 10.5 million compared with $ 8.7 million at december 31 , 2009. this decrease was mainly driven by improved cash flows and operating results of borrowers in 2010. in light of the continued environment of high unemployment , declining real estate values and sustained economic weakness in the midwest , management feels it is prudent to maintain a higher level of general loan loss reserves . all 14 counties that represent the footprint of the company have seen improvements in their unemployment rates in 2010 , with only three below the national average of 9.1 % . the company operated one branch in hillsdale county in 2009 , but that office was closed in january 2010 , therefore , that data is not being presented in this comparison . the unemployment rates in december 2010 for the following counties in ohio were : allen 9.8 % , defiance 9.9 % , fulton 10.6 % , hancock 8.1 % , henry 11.1 % , lucas 10.1 % , ottawa 16.3 % , paulding 9.8 % , putnam 8.4 % , seneca 10.2 % , williams 11.1 % and wood 9.0 % , compared to december 2009 in allen 11.6 % , defiance 12.8 % , fulton 14.3 % , hancock 9.6 % , henry 13.9 % , lucas 12.3 % , ottawa 17.3 % , paulding 12.7 % , putnam 11.0 % , seneca 13.0 % , williams 14.9 % and wood 11.1 % . the company operates in one county in michigan , lenawee which had an unemployment rate of 12.4 % in december 2010 compared to 16.6 % in december 2009. the company operates in one county in indiana , allen , which had an unemployment rate of 9.4 % in december 2010 compared to 10.0 % in december 2009. first defiance 's general reserve percentages for main loan segments not otherwise classified ranged from 0.29 % for construction loans to 1.70 % for commercial loans . credit cards were 10.56 % . as a result of the quantitative and qualitative analyses , along with the change in specific reserves , the company 's provision for loan losses for 2010 was $ 23.2 million , which is unchanged since december 31 , 2009. the allowance for loan losses was $ 41.1 million and
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1,041 | we intend to gradually form motor load performance for peak and low-hours , which will account for about 3 % of the annual maximum power load on the demand side and to ensure the electricity supply and demand balance for situations of non-severe power shortages . in december 2019 , a novel strain of coronavirus ( covid-19 ) was reported in wuhan , china . the world health organization has declared the outbreak to constitute a “ public health emergency of international concern . ” this pandemic , which continues to spread to additional countries , and is disrupting supply chains and affecting production and sales across a range of industries as a result of quarantines , facility closures , and travel and logistics restrictions in connection with the outbreak . therefore , the company expects this matter to negatively impact its operating results even though china is opening up most of the cities and industries as of this report date . however , the related financial impact can not be reasonably estimated at this time . for the years ended december 31 , 2019 and 2018 , the company had a net loss of $ 8.77 million and $ 66.00 million , respectively . the company has an accumulated deficit of $ 46.45 million as of december 31 , 2019. the company is in the process of transforming and expanding into an energy storage integrated solution provider as described above . the historical operating results indicate substantial doubt exists related to the company 's ability to continue as a going concern . however , the company had $ 16.22 million cash on hand at december 31 , 2019 and has collected rmb 327.60 million ( $ 46.96 million ) in 2020 up to this report date , this also satisfies the company 's estimated liquidity needs 12 months from the issuance of the financial statements . the company believes that the actions discussed above are probable of occurring and the occurrence , as well as the cash flow discussed , mitigate the substantial doubt raised by its historical operating results . management also intends to raise additional funds by way of a private or public offering , or by obtaining loans from banks or others . while the company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions , there can be no assurances to that effect . the ability of the company to continue as a going concern is dependent upon the company 's ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering , or debt financing including bank loans . our subsidiaries our business is primarily conducted through our wholly-owned subsidiaries , sifang holdings co. , ltd. ( “ sifang ” ) and shanghai yinghua financial leasing co. , ltd ( “ yinghua ” ) ; sifang 's wholly-owned subsidiaries , huahong new energy technology co. , ltd. ( “ huahong ” ) and shanghai tch energy tech co. , ltd. ( “ shanghai tch ” ) ; shanghai tch 's wholly-owned subsidiary , xi'an tch energy technology company , ltd ( “ xi'an tch ” ) ; xi'an tch 's wholly-owned subsidiaries , erdos tch energy saving development co. , ltd ( “ erdos tch ” ) and zhongxun energy investment ( beijing ) co. , ltd ( “ zhongxun ” ) ; and xi'an tch 's 90 % and shanghai tch 's 10 % owned subsidiary , xi'an zhonghong new energy technology co. , ltd. ( “ zhonghong ” ) . zhonghong provides energy saving solutions and services , including constructing , selling and leasing energy saving systems and equipment to customers , project investment . 33 the company 's organizational chart as of december 31 , 2019 is as follows : creg legal structure shanghai tch and its subsidiaries shanghai tch was established as a foreign investment enterprise in shanghai under the laws of the prc on may 25 , 2004 and has registered capital of $ 29.80 million . xi'an tch was incorporated in xi'an , shaanxi province under the laws of the prc on november 8 , 2007. in february 2009 , huahong was incorporated in xi'an , shaanxi province . erdos tch was incorporated in april 2009 in erdos , inner mongolia autonomous region . on july 19 , 2013 , xi'an tch formed xi'an zhonghong new energy technology co. , ltd ( “ zhonghong ” ) . xi'an tch owns 90 % and shanghai tch owns 10 % of zhonghong . as of december 31 , 2019 , shanghai tch , through its subsidiaries , had sales or sales-type leases with pucheng for two biomass power generation ( “ bmpg ” ) systems . the fund management company and the hyref fund on june 25 , 2013 , xi'an tch and hongyuan huifu venture capital co. ltd ( “ hongyuan huifu ” ) established beijing hongyuan recycling energy investment management company ltd. ( the “ fund management company ” ) with registered capital of rmb 10 million ( $ 1.45 million ) . xi'an tch made an initial capital contribution of rmb 4 million ( $ 650,000 ) and has 40 % ownership interest in the fund management company . with respect to the fund management company , voting rights and dividend rights are allocated 80 % and 20 % between hongyuan huifu and xi'an tch , respectively . 34 the fund management company is the general partner of beijing hongyuan recycling energy investment center , llp ( the “ hyref fund ” ) , a limited liability partnership established july 18 , 2013 in beijing . the fund management company made an initial capital contribution of rmb 5 million ( $ 830,000 ) to the hyref fund . story_separator_special_tag 37 on july 24 , 2013 , zhonghong entered into a cooperative agreement of cdq and cdq whpg project with boxing county chengli gas supply co. , ltd. ( “ chengli ” ) . the parties entered into a supplement agreement on july 26 , 2013. pursuant to these agreements , zhonghong agreed to design , build and maintain a 25 mw cdq system and a cdq whpg system to supply power to chengli , and chengli agreed to pay energy saving fees ( the “ chengli project ” ) . chengli will contract the operation of the system to a third party contractor that is mutually agreed to by zhonghong . in addition , chengli will provide the land for the cdq system and cdq whpg system at no cost to zhonghong . the term of these agreements is 20 years . the watt hours generated by the chengli project will be charged at rmb 0.42 ( $ 0.068 ) per kwh ( excluding tax ) . the operating time shall be based upon an average 8,000 hours annually . if the operating time is less than 8,000 hours per year due to a reason attributable to chengli , then time charged shall be 8,000 hours a year , and if it is less than 8,000 hours due to a reason attributable to zhonghong , then it shall be charged at actual operating hours . the construction of the chengli project was completed in the second quarter of 2015 and the project successfully completed commissioning tests in the first quarter of 2017. the chengli project is now operational , however , due to intensifying environmental protection , the local environmental authorities required the project owner constructing cdq sewage treatment to complete supporting works , which were completed and passed through acceptance inspection during the quarter ended september 30 , 2018. however , the owner of chengli project changed from chengli to shandong boxing shengli technology company ltd. ( “ shengli ” ) . this change resulted from transfer of the equity ownership of chengli to shengli ( a private company ) in march 2014. chengli , a 100 % state-owned enterprise that is 100 % owned by the local power supply bureau , is no longer allowed to carry out business activities , and shengli , the new owner , is not entitled to the high on-grid prices , and thus demanded a renegotiation of the settlement terms for the project . the company negotiated with the new project owner on the lease term , settlement method and settlement price , but no agreement has been reached . on july 22 , 2013 , zhonghong entered into an engineering , procurement and construction ( “ epc ” ) general contractor agreement for the boxing county chengli gas supply co. , ltd. cdq power generation project ( the “ chengli project ” ) with xi'an huaxin new energy co. , ltd. ( “ huaxin ” ) . zhonghong , as the owner of the chengli project , contracted epc services for a cdq system and a 25 mw cdq whpg system for chengli to huaxin . huaxin shall provide construction , equipment procurement , transportation , installation and adjustment , test run , construction engineering management and other necessary services to complete the chengli project and ensure the cdq system and cdq whpg system for chengli meet the inspection and acceptance requirements and work normally . the chengli project is a turn-key project in which huaxin is responsible for monitoring the quality , safety , duration and cost of the chengli project . the total contract price is rmb 200 million ( $ 33.34 million ) , which includes all materials , equipment , labor , transportation , electricity , water , waste disposal , machinery and safety costs . on december 29 , 2018 , xi'an zhonghong , xi'an tch , the “ hyref ” , guohua ku , and mr. chonggong bai entered into a cdq whpg station fixed assets transfer agreement , pursuant to which xi'an zhonghong transferred chengli cdq whpg station as the repayment for the loan of rmb 188,639,400 ( $ 27.54 million ) to hyref . xi'an zhonghong , xi'an tch , guohua ku and chonggong bai also agreed to buy back the cdq whpg station when conditions under the buy back agreement are met ( see note 10 ) . the transfer was completed january 22 , 2019 , and the company recorded $ 624,133 loss from this transfer . since the original terms of buy back agreement are still valid , the buy back possibility is uncertain ; therefore , the assets of chengli cdq whpg station , and the corresponding loan principal and interest , can not be terminated due to the existence of buy back clauses . 38 tianyu waste heat power generation project on july 19 , 2013 , zhonghong entered into a cooperative agreement ( the “ tianyu agreement ” ) for energy management of cdq and cdq whpg with jiangsu tianyu energy and chemical group co. , ltd ( “ tianyu ” ) . pursuant to the tianyu agreement , zhonghong will design , build , operate and maintain two sets of 25 mw cdq and cdq whpg systems for two subsidiaries of tianyu – xuzhou tian'an chemical co. , ltd ( “ xuzhou tian'an ” ) and xuzhou huayu coking co. , ltd. ( “ xuzhou huayu ” ) – to be located at xuzhou tian'an and xuzhou huayu 's respective locations ( the “ tianyu project ” ) . upon completion of the tianyu project , zhonghong will charge tianyu an energy saving fee of rmb 0.534 ( $ 0.087 ) per kwh ( excluding tax ) . the operating time will be based upon an average 8,000 hours annually for each of xuzhou tian'an and xuzhou huayu . if the operating time is less than 8,000 hours per year due to a reason attributable
| liquidity and capital resources comparison of years ended december 31 , 2019 and 2018 as of december 31 , 2019 , the company had cash and equivalents of $ 16.22 million , other current assets of $ 48.40 million , current liabilities of $ 36.25 million , working capital of $ 28.37 million , a current ratio of 1.78:1 and a liability-to-equity ratio of 0.57:1. the following is a summary of cash provided by or used in each of the indicated types of activities during the years ended december 31 , 2019 and 2018 : 2019 2018 cash provided by ( used in ) : operating activities $ ( 14,649,028 ) $ 2,168,285 investing activities 5,074 - financing activities ( 21,816,293 ) 3,689,190 45 net cash used in operating activities was $ 14.65 million during the year ended december 31 , 2019 , compared to $ 2.17 million cash provided by operating activities for the year ended december 31 , 2018. the increase in net cash outflow for the year ended december 31 , 2019 was mainly due to increased cash outflow of interest payable on entrusted loan by $ 19,185,209 which was partly offset by decrease cash inflow of accounts receivable by $ 2,542,534. net cash provided by investing activities was $ 5,074 and $ nil , respectively , for the years ended december 31 , 2019 and 2018. for the year endeddecember 31 , 2019 , $ 5,074 was the proceeds from disposal of the fixed assets .
| 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. |
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 comparison of years ended december 31 , 2019 and 2018 as of december 31 , 2019 , the company had cash and equivalents of $ 16.22 million , other current assets of $ 48.40 million , current liabilities of $ 36.25 million , working capital of $ 28.37 million , a current ratio of 1.78:1 and a liability-to-equity ratio of 0.57:1. the following is a summary of cash provided by or used in each of the indicated types of activities during the years ended december 31 , 2019 and 2018 : 2019 2018 cash provided by ( used in ) : operating activities $ ( 14,649,028 ) $ 2,168,285 investing activities 5,074 - financing activities ( 21,816,293 ) 3,689,190 45 net cash used in operating activities was $ 14.65 million during the year ended december 31 , 2019 , compared to $ 2.17 million cash provided by operating activities for the year ended december 31 , 2018. the increase in net cash outflow for the year ended december 31 , 2019 was mainly due to increased cash outflow of interest payable on entrusted loan by $ 19,185,209 which was partly offset by decrease cash inflow of accounts receivable by $ 2,542,534. net cash provided by investing activities was $ 5,074 and $ nil , respectively , for the years ended december 31 , 2019 and 2018. for the year endeddecember 31 , 2019 , $ 5,074 was the proceeds from disposal of the fixed assets .
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Suspicious Activity Report : we intend to gradually form motor load performance for peak and low-hours , which will account for about 3 % of the annual maximum power load on the demand side and to ensure the electricity supply and demand balance for situations of non-severe power shortages . in december 2019 , a novel strain of coronavirus ( covid-19 ) was reported in wuhan , china . the world health organization has declared the outbreak to constitute a “ public health emergency of international concern . ” this pandemic , which continues to spread to additional countries , and is disrupting supply chains and affecting production and sales across a range of industries as a result of quarantines , facility closures , and travel and logistics restrictions in connection with the outbreak . therefore , the company expects this matter to negatively impact its operating results even though china is opening up most of the cities and industries as of this report date . however , the related financial impact can not be reasonably estimated at this time . for the years ended december 31 , 2019 and 2018 , the company had a net loss of $ 8.77 million and $ 66.00 million , respectively . the company has an accumulated deficit of $ 46.45 million as of december 31 , 2019. the company is in the process of transforming and expanding into an energy storage integrated solution provider as described above . the historical operating results indicate substantial doubt exists related to the company 's ability to continue as a going concern . however , the company had $ 16.22 million cash on hand at december 31 , 2019 and has collected rmb 327.60 million ( $ 46.96 million ) in 2020 up to this report date , this also satisfies the company 's estimated liquidity needs 12 months from the issuance of the financial statements . the company believes that the actions discussed above are probable of occurring and the occurrence , as well as the cash flow discussed , mitigate the substantial doubt raised by its historical operating results . management also intends to raise additional funds by way of a private or public offering , or by obtaining loans from banks or others . while the company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions , there can be no assurances to that effect . the ability of the company to continue as a going concern is dependent upon the company 's ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering , or debt financing including bank loans . our subsidiaries our business is primarily conducted through our wholly-owned subsidiaries , sifang holdings co. , ltd. ( “ sifang ” ) and shanghai yinghua financial leasing co. , ltd ( “ yinghua ” ) ; sifang 's wholly-owned subsidiaries , huahong new energy technology co. , ltd. ( “ huahong ” ) and shanghai tch energy tech co. , ltd. ( “ shanghai tch ” ) ; shanghai tch 's wholly-owned subsidiary , xi'an tch energy technology company , ltd ( “ xi'an tch ” ) ; xi'an tch 's wholly-owned subsidiaries , erdos tch energy saving development co. , ltd ( “ erdos tch ” ) and zhongxun energy investment ( beijing ) co. , ltd ( “ zhongxun ” ) ; and xi'an tch 's 90 % and shanghai tch 's 10 % owned subsidiary , xi'an zhonghong new energy technology co. , ltd. ( “ zhonghong ” ) . zhonghong provides energy saving solutions and services , including constructing , selling and leasing energy saving systems and equipment to customers , project investment . 33 the company 's organizational chart as of december 31 , 2019 is as follows : creg legal structure shanghai tch and its subsidiaries shanghai tch was established as a foreign investment enterprise in shanghai under the laws of the prc on may 25 , 2004 and has registered capital of $ 29.80 million . xi'an tch was incorporated in xi'an , shaanxi province under the laws of the prc on november 8 , 2007. in february 2009 , huahong was incorporated in xi'an , shaanxi province . erdos tch was incorporated in april 2009 in erdos , inner mongolia autonomous region . on july 19 , 2013 , xi'an tch formed xi'an zhonghong new energy technology co. , ltd ( “ zhonghong ” ) . xi'an tch owns 90 % and shanghai tch owns 10 % of zhonghong . as of december 31 , 2019 , shanghai tch , through its subsidiaries , had sales or sales-type leases with pucheng for two biomass power generation ( “ bmpg ” ) systems . the fund management company and the hyref fund on june 25 , 2013 , xi'an tch and hongyuan huifu venture capital co. ltd ( “ hongyuan huifu ” ) established beijing hongyuan recycling energy investment management company ltd. ( the “ fund management company ” ) with registered capital of rmb 10 million ( $ 1.45 million ) . xi'an tch made an initial capital contribution of rmb 4 million ( $ 650,000 ) and has 40 % ownership interest in the fund management company . with respect to the fund management company , voting rights and dividend rights are allocated 80 % and 20 % between hongyuan huifu and xi'an tch , respectively . 34 the fund management company is the general partner of beijing hongyuan recycling energy investment center , llp ( the “ hyref fund ” ) , a limited liability partnership established july 18 , 2013 in beijing . the fund management company made an initial capital contribution of rmb 5 million ( $ 830,000 ) to the hyref fund . story_separator_special_tag 37 on july 24 , 2013 , zhonghong entered into a cooperative agreement of cdq and cdq whpg project with boxing county chengli gas supply co. , ltd. ( “ chengli ” ) . the parties entered into a supplement agreement on july 26 , 2013. pursuant to these agreements , zhonghong agreed to design , build and maintain a 25 mw cdq system and a cdq whpg system to supply power to chengli , and chengli agreed to pay energy saving fees ( the “ chengli project ” ) . chengli will contract the operation of the system to a third party contractor that is mutually agreed to by zhonghong . in addition , chengli will provide the land for the cdq system and cdq whpg system at no cost to zhonghong . the term of these agreements is 20 years . the watt hours generated by the chengli project will be charged at rmb 0.42 ( $ 0.068 ) per kwh ( excluding tax ) . the operating time shall be based upon an average 8,000 hours annually . if the operating time is less than 8,000 hours per year due to a reason attributable to chengli , then time charged shall be 8,000 hours a year , and if it is less than 8,000 hours due to a reason attributable to zhonghong , then it shall be charged at actual operating hours . the construction of the chengli project was completed in the second quarter of 2015 and the project successfully completed commissioning tests in the first quarter of 2017. the chengli project is now operational , however , due to intensifying environmental protection , the local environmental authorities required the project owner constructing cdq sewage treatment to complete supporting works , which were completed and passed through acceptance inspection during the quarter ended september 30 , 2018. however , the owner of chengli project changed from chengli to shandong boxing shengli technology company ltd. ( “ shengli ” ) . this change resulted from transfer of the equity ownership of chengli to shengli ( a private company ) in march 2014. chengli , a 100 % state-owned enterprise that is 100 % owned by the local power supply bureau , is no longer allowed to carry out business activities , and shengli , the new owner , is not entitled to the high on-grid prices , and thus demanded a renegotiation of the settlement terms for the project . the company negotiated with the new project owner on the lease term , settlement method and settlement price , but no agreement has been reached . on july 22 , 2013 , zhonghong entered into an engineering , procurement and construction ( “ epc ” ) general contractor agreement for the boxing county chengli gas supply co. , ltd. cdq power generation project ( the “ chengli project ” ) with xi'an huaxin new energy co. , ltd. ( “ huaxin ” ) . zhonghong , as the owner of the chengli project , contracted epc services for a cdq system and a 25 mw cdq whpg system for chengli to huaxin . huaxin shall provide construction , equipment procurement , transportation , installation and adjustment , test run , construction engineering management and other necessary services to complete the chengli project and ensure the cdq system and cdq whpg system for chengli meet the inspection and acceptance requirements and work normally . the chengli project is a turn-key project in which huaxin is responsible for monitoring the quality , safety , duration and cost of the chengli project . the total contract price is rmb 200 million ( $ 33.34 million ) , which includes all materials , equipment , labor , transportation , electricity , water , waste disposal , machinery and safety costs . on december 29 , 2018 , xi'an zhonghong , xi'an tch , the “ hyref ” , guohua ku , and mr. chonggong bai entered into a cdq whpg station fixed assets transfer agreement , pursuant to which xi'an zhonghong transferred chengli cdq whpg station as the repayment for the loan of rmb 188,639,400 ( $ 27.54 million ) to hyref . xi'an zhonghong , xi'an tch , guohua ku and chonggong bai also agreed to buy back the cdq whpg station when conditions under the buy back agreement are met ( see note 10 ) . the transfer was completed january 22 , 2019 , and the company recorded $ 624,133 loss from this transfer . since the original terms of buy back agreement are still valid , the buy back possibility is uncertain ; therefore , the assets of chengli cdq whpg station , and the corresponding loan principal and interest , can not be terminated due to the existence of buy back clauses . 38 tianyu waste heat power generation project on july 19 , 2013 , zhonghong entered into a cooperative agreement ( the “ tianyu agreement ” ) for energy management of cdq and cdq whpg with jiangsu tianyu energy and chemical group co. , ltd ( “ tianyu ” ) . pursuant to the tianyu agreement , zhonghong will design , build , operate and maintain two sets of 25 mw cdq and cdq whpg systems for two subsidiaries of tianyu – xuzhou tian'an chemical co. , ltd ( “ xuzhou tian'an ” ) and xuzhou huayu coking co. , ltd. ( “ xuzhou huayu ” ) – to be located at xuzhou tian'an and xuzhou huayu 's respective locations ( the “ tianyu project ” ) . upon completion of the tianyu project , zhonghong will charge tianyu an energy saving fee of rmb 0.534 ( $ 0.087 ) per kwh ( excluding tax ) . the operating time will be based upon an average 8,000 hours annually for each of xuzhou tian'an and xuzhou huayu . if the operating time is less than 8,000 hours per year due to a reason attributable
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1,042 | million of cash and cash equivalents and $ 182.8 million of total assets as of september 30 , 2014 as compared to $ 19.1 million and $ 37.3 million as of september 30 , 2013 , respectively . 46 critical accounting policies and estimates management makes certain judgments and uses certain estimates and assumptions when applying accounting principles generally accepted in the united states in the preparation of our consolidated financial statements . we evaluate our estimates and judgments on an ongoing basis and base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what we anticipate and different assumptions or estimates about the future could change our reported results . we believe the following accounting policies are the most critical to us , in that they are important to the portrayal of our consolidated financial statements and require our most difficult , subjective or complex judgments in the preparation of our consolidated financial statements . for further information , see note 1 , organization and significant accounting policies , to our consolidated financial statements , which outlines our application of significant accounting policies and new accounting standards . revenue recognition revenue from product sales are recorded when persuasive evidence of an arrangement exists , title has passed and delivery has occurred , a price is fixed and determinable , and collection is reasonably assured . we may generate revenue from technology licenses , collaborative research and development arrangements , research grants and product sales . revenue under technology licenses and collaborative agreements typically consists of nonrefundable and or guaranteed technology license fees , collaborative research funding , and various milestone and future product royalty or profit-sharing payments . revenue associated with research and development funding payments under collaborative agreements is recognized ratably over the relevant periods specified in the agreement , generally the research and development period . revenue from up-front license fees , milestones and product royalties are recognized as earned based on the completion of the milestones and product sales , as defined in the respective agreements . payments received in advance of recognition as revenue are recorded as deferred revenue . business combinations in october 2011 , we acquired all of the outstanding common stock of roche madison , inc. and certain related intellectual property assets in exchange for a $ 50,000 promissory note , 1,288,158 shares of arrowhead common stock and certain contingent consideration , altogether an estimated value of $ 5.1 million on the date of the acquisition . we assigned the value of the consideration to the tangible assets and identifiable intangible assets and the liabilities assumed on the basis of their fair values on the date of acquisition . the excess of net assets over the consideration was recorded as a non-operating gain . in april 2012 , we acquired all of the outstanding common stock of alvos therapeutics , inc. in exchange for the issuance of 315,457 shares of arrowhead common stock , valued at $ 2.0 million at the time of acquisition . the consideration was assigned to its tangible and intangible assets , and liabilities based on estimated fair values at the time of acquisition . the allocation of value to certain items , including property and equipment , intangible assets and certain liabilities require management judgment , and is based upon the information available at the time of acquisition . impairment of long-lived assets we review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that our assumptions about the useful lives of these assets are no longer appropriate . if impairment is indicated , recoverability is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . impairment of intangible assets intangible assets consist of in-process research and development and license agreements acquired in conjunction with a business acquisition . intangible assets are monitored for potential impairment whenever events or circumstances indicate that the carrying amount may not be recoverable , and are also reviewed annually to determine whether any impairment is necessary . based on asu 2012-02 , the annual review of intangible assets is performed via a two-step process . first , a qualitative assessment is performed to determine if it is more likely than not that the intangible asset is impaired . if required , a quantitative assessment is performed and , if necessary , impairment is recorded . 47 stock-based compensation we recognize stock-based compensation expense for stock options based on the grant date fair value using the black-scholes options pricing model , which requires us to make assumptions regarding certain variables including the risk-free interest rate , expected stock price volatility , assumed forfeitures , and the expected life of the award . the grant date fair value of restricted stock units granted is based upon the quoted closing market price per share on the date of grant , adjusted for assumed forfeitures . expense for stock options and restricted stock units is recognized over the requisite service period . the assumptions used in calculating stock-based compensation expense represent management 's best estimates , but these estimates involve inherent uncertainties , and if factors change or the company used different assumptions , its stock-based compensation expense could be materially different in the future . story_separator_special_tag the decrease in expense is primarily due to a $ 1.0 million write down of a note receivable related to the sale of our former subsidiary , unidym , in 2013 , which was not repeated in the current year . additionally , the company received increased interest income during 2014 as it has invested its excess cash balances in short and long-term corporate bonds . the largest component of this line item is related to the change in the value of derivative liabilities related to certain warrants with a price adjustment feature , which requires derivative accounting . the change in value of derivative liabilities was approximately $ 6.0 million in 2014 and $ 5.3 million in 2013. results of operations comparison for 2013 and 2012 the company had a net loss of $ 31.7 million for the year ended september 30 , 201 3 , compared to a net loss of $ 22.1 million for the year ended september 30 , 201 2 , an increase of $ 9.6 million . the increase in the net loss was the result of a number of factors . from an operating standpoint , the main factor was higher r & d expenses of $ 3.3 million for preclinical glp toxicology studies and cgmp drug manufacturing in preparation of the clinical trial for arc-520 , as well as costs for the phase 1 clinical trial of arc-520 . general and administrative expenses were lower in 2013 by $ 2.9 million . this change was primarily due to the prior year write down of certain receivables from minority interest companies . salaries and payroll related expenses increased nominally in 2013 , primarily due to headcount increases and general salary adjustments . in 2013 , the company recorded a noncash impairment expense of $ 1.3 million to write off certain patents as a result of a termination of a license agreement . other expense was higher in 2013 by $ 6.1 million primarily due to noncash losses from the change in value of derivatives , as well as the write down of a note receivable obtained as part of our disposition of unidym in 2011. details of the results of operations are presented below . 52 revenues total revenue was $ 290,000 for the year ended september 30 , 2013 and $ 147,000 for the year ended september 30 , 2012. revenue is primarily composed of amortization of up-front patent license fee payments . in addition , the company had collaboration revenue of $ 115,000 during the year ended september 30 , 2013. operating expenses the analysis below details the operating expenses and discusses the expenditures of the company within the major expense categories . certain reclassifications have been made to prior period operating expense categories to conform to the current period presentation . for purposes of comparison , the amounts for the years ended september 30 , 201 3 and 201 2 are shown in the tables below . research and development expenses r & d expenses are related to the company 's on-going research and development efforts , primarily related to its laboratory research facility in madison , wisconsin , and also include outsourced r & d services . the following table provides details of research and development expense for the periods indicated below : ( in thousands ) replace_table_token_10_th laboratory supplies and services expense was $ 1,058,000 during the year ended september 30 , 2013 , compared to $ 794,000 in the comparable prior period . this increase in expense is associated with research and development efforts related to pre-clinical programs including sirna synthesis for the identification and screening of new liver and extra-hepatic targets , subcutaneous formulations to be utilized in therapeutic areas where chronic dosing may be required and assessing the interaction of arc-520 with other hepatitis therapeutics . in vivo studies expense was $ 303,00 0 during the year ended september 30 , 201 3 , compared to 232 ,000 in the comparable prior period . the current period expense relates to preclinical animal studies at our madison research facility , as the company tests formulations of new potential clinical candidates . outside lab and contract services expense was $ 533,000 during the year ended september 30 , 201 3 , compared to $ 496,000 in the comparable prior period . the increase was primarily related to oligonucleotide synthesis related to development of new clinical candidates . as arc-520 and other clinical candidates progress through clinical trials , outside lab and contract service expense is expected to increase . toxicology and efficacy studies expense was $ 1,588,000 during the year ended september 30 , 2013 , compared to $ 43,000 in the comparable prior period . the increase is primarily due to glp toxicology studies related to arc-520 , our hepatitis b clinical candidate in preparation for a phase 1 clinical trial . additionally , we initiated long-term toxicology studies to support a phase 2b , multi-dose clinical study for arc-520 . outside toxicology work fluctuates depending on the number of clinical candidates the company is developing and on the specific needs of each development candidate . 53 drug manufacturing expense was $ 2.6 million during the year ended september 30 , 201 3 , compared to $ 1.6 million in the comparable prior period . drug manufacturing expense for fiscal 2013 was related to the manufacturing campaign to produce materials for the arc-520 glp toxicology studies and the phase 1 clinical trial . the company utilized outside manufactures to produce these components . in the prior year , approximately half of the drug manufacturing expense was related to the production of polymer components for rondel . further development of rondel and calaa-01 was suspended as the company focused on its dpc delivery platform . clinical trial expense was $ 1,093,000 during the year ended september 30 , 2013 , compared to $ 599,000 in the comparable prior period . expenses relating to clinical trials increased as
| liquidity and cash resources arrowhead has historically financed its operations through the sale of securities of arrowhead and its subsidiaries . research and development activities have required significant capital investment since the company 's inception , and are expected to continue to require significant cash investment in fiscal 201 5 , and beyond . at september 30 , 201 4 , the company had cash on hand of approximately $ 132.5 million as compared to $ 19.1 million at september 30 , 2013. excess cash invested in fixed income securities was $ 44.7 million at september 30 , 2014 , compared to $ 10.7 million at september 30 , 2013. the company believes its current financial resources are sufficient to fund its operations through at least the next twelve months . a summary of cash flows for the years ended september 30 , 2014 , 2013 , and 2012 is as follows : replace_table_token_13_th 56 during 2014 , the company used $ 35.4 million in cash from operating activities , which represents the on-going expenses of its research and development programs and corporate overhead . cash outlays were primarily composed of the following : research and development costs were $ 21.7 million , salary and payroll-related expenses were $ 9.1 million , and general and administrative costs were $ 4.6 million . cash used by investing activities was $ 36.5 million , primarily related to net cash investments in fixed income securities of $ 34.8 million . capital expenditures were $ 1.7 million .
| 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. |
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 cash resources arrowhead has historically financed its operations through the sale of securities of arrowhead and its subsidiaries . research and development activities have required significant capital investment since the company 's inception , and are expected to continue to require significant cash investment in fiscal 201 5 , and beyond . at september 30 , 201 4 , the company had cash on hand of approximately $ 132.5 million as compared to $ 19.1 million at september 30 , 2013. excess cash invested in fixed income securities was $ 44.7 million at september 30 , 2014 , compared to $ 10.7 million at september 30 , 2013. the company believes its current financial resources are sufficient to fund its operations through at least the next twelve months . a summary of cash flows for the years ended september 30 , 2014 , 2013 , and 2012 is as follows : replace_table_token_13_th 56 during 2014 , the company used $ 35.4 million in cash from operating activities , which represents the on-going expenses of its research and development programs and corporate overhead . cash outlays were primarily composed of the following : research and development costs were $ 21.7 million , salary and payroll-related expenses were $ 9.1 million , and general and administrative costs were $ 4.6 million . cash used by investing activities was $ 36.5 million , primarily related to net cash investments in fixed income securities of $ 34.8 million . capital expenditures were $ 1.7 million .
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Suspicious Activity Report : million of cash and cash equivalents and $ 182.8 million of total assets as of september 30 , 2014 as compared to $ 19.1 million and $ 37.3 million as of september 30 , 2013 , respectively . 46 critical accounting policies and estimates management makes certain judgments and uses certain estimates and assumptions when applying accounting principles generally accepted in the united states in the preparation of our consolidated financial statements . we evaluate our estimates and judgments on an ongoing basis and base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what we anticipate and different assumptions or estimates about the future could change our reported results . we believe the following accounting policies are the most critical to us , in that they are important to the portrayal of our consolidated financial statements and require our most difficult , subjective or complex judgments in the preparation of our consolidated financial statements . for further information , see note 1 , organization and significant accounting policies , to our consolidated financial statements , which outlines our application of significant accounting policies and new accounting standards . revenue recognition revenue from product sales are recorded when persuasive evidence of an arrangement exists , title has passed and delivery has occurred , a price is fixed and determinable , and collection is reasonably assured . we may generate revenue from technology licenses , collaborative research and development arrangements , research grants and product sales . revenue under technology licenses and collaborative agreements typically consists of nonrefundable and or guaranteed technology license fees , collaborative research funding , and various milestone and future product royalty or profit-sharing payments . revenue associated with research and development funding payments under collaborative agreements is recognized ratably over the relevant periods specified in the agreement , generally the research and development period . revenue from up-front license fees , milestones and product royalties are recognized as earned based on the completion of the milestones and product sales , as defined in the respective agreements . payments received in advance of recognition as revenue are recorded as deferred revenue . business combinations in october 2011 , we acquired all of the outstanding common stock of roche madison , inc. and certain related intellectual property assets in exchange for a $ 50,000 promissory note , 1,288,158 shares of arrowhead common stock and certain contingent consideration , altogether an estimated value of $ 5.1 million on the date of the acquisition . we assigned the value of the consideration to the tangible assets and identifiable intangible assets and the liabilities assumed on the basis of their fair values on the date of acquisition . the excess of net assets over the consideration was recorded as a non-operating gain . in april 2012 , we acquired all of the outstanding common stock of alvos therapeutics , inc. in exchange for the issuance of 315,457 shares of arrowhead common stock , valued at $ 2.0 million at the time of acquisition . the consideration was assigned to its tangible and intangible assets , and liabilities based on estimated fair values at the time of acquisition . the allocation of value to certain items , including property and equipment , intangible assets and certain liabilities require management judgment , and is based upon the information available at the time of acquisition . impairment of long-lived assets we review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that our assumptions about the useful lives of these assets are no longer appropriate . if impairment is indicated , recoverability is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . impairment of intangible assets intangible assets consist of in-process research and development and license agreements acquired in conjunction with a business acquisition . intangible assets are monitored for potential impairment whenever events or circumstances indicate that the carrying amount may not be recoverable , and are also reviewed annually to determine whether any impairment is necessary . based on asu 2012-02 , the annual review of intangible assets is performed via a two-step process . first , a qualitative assessment is performed to determine if it is more likely than not that the intangible asset is impaired . if required , a quantitative assessment is performed and , if necessary , impairment is recorded . 47 stock-based compensation we recognize stock-based compensation expense for stock options based on the grant date fair value using the black-scholes options pricing model , which requires us to make assumptions regarding certain variables including the risk-free interest rate , expected stock price volatility , assumed forfeitures , and the expected life of the award . the grant date fair value of restricted stock units granted is based upon the quoted closing market price per share on the date of grant , adjusted for assumed forfeitures . expense for stock options and restricted stock units is recognized over the requisite service period . the assumptions used in calculating stock-based compensation expense represent management 's best estimates , but these estimates involve inherent uncertainties , and if factors change or the company used different assumptions , its stock-based compensation expense could be materially different in the future . story_separator_special_tag the decrease in expense is primarily due to a $ 1.0 million write down of a note receivable related to the sale of our former subsidiary , unidym , in 2013 , which was not repeated in the current year . additionally , the company received increased interest income during 2014 as it has invested its excess cash balances in short and long-term corporate bonds . the largest component of this line item is related to the change in the value of derivative liabilities related to certain warrants with a price adjustment feature , which requires derivative accounting . the change in value of derivative liabilities was approximately $ 6.0 million in 2014 and $ 5.3 million in 2013. results of operations comparison for 2013 and 2012 the company had a net loss of $ 31.7 million for the year ended september 30 , 201 3 , compared to a net loss of $ 22.1 million for the year ended september 30 , 201 2 , an increase of $ 9.6 million . the increase in the net loss was the result of a number of factors . from an operating standpoint , the main factor was higher r & d expenses of $ 3.3 million for preclinical glp toxicology studies and cgmp drug manufacturing in preparation of the clinical trial for arc-520 , as well as costs for the phase 1 clinical trial of arc-520 . general and administrative expenses were lower in 2013 by $ 2.9 million . this change was primarily due to the prior year write down of certain receivables from minority interest companies . salaries and payroll related expenses increased nominally in 2013 , primarily due to headcount increases and general salary adjustments . in 2013 , the company recorded a noncash impairment expense of $ 1.3 million to write off certain patents as a result of a termination of a license agreement . other expense was higher in 2013 by $ 6.1 million primarily due to noncash losses from the change in value of derivatives , as well as the write down of a note receivable obtained as part of our disposition of unidym in 2011. details of the results of operations are presented below . 52 revenues total revenue was $ 290,000 for the year ended september 30 , 2013 and $ 147,000 for the year ended september 30 , 2012. revenue is primarily composed of amortization of up-front patent license fee payments . in addition , the company had collaboration revenue of $ 115,000 during the year ended september 30 , 2013. operating expenses the analysis below details the operating expenses and discusses the expenditures of the company within the major expense categories . certain reclassifications have been made to prior period operating expense categories to conform to the current period presentation . for purposes of comparison , the amounts for the years ended september 30 , 201 3 and 201 2 are shown in the tables below . research and development expenses r & d expenses are related to the company 's on-going research and development efforts , primarily related to its laboratory research facility in madison , wisconsin , and also include outsourced r & d services . the following table provides details of research and development expense for the periods indicated below : ( in thousands ) replace_table_token_10_th laboratory supplies and services expense was $ 1,058,000 during the year ended september 30 , 2013 , compared to $ 794,000 in the comparable prior period . this increase in expense is associated with research and development efforts related to pre-clinical programs including sirna synthesis for the identification and screening of new liver and extra-hepatic targets , subcutaneous formulations to be utilized in therapeutic areas where chronic dosing may be required and assessing the interaction of arc-520 with other hepatitis therapeutics . in vivo studies expense was $ 303,00 0 during the year ended september 30 , 201 3 , compared to 232 ,000 in the comparable prior period . the current period expense relates to preclinical animal studies at our madison research facility , as the company tests formulations of new potential clinical candidates . outside lab and contract services expense was $ 533,000 during the year ended september 30 , 201 3 , compared to $ 496,000 in the comparable prior period . the increase was primarily related to oligonucleotide synthesis related to development of new clinical candidates . as arc-520 and other clinical candidates progress through clinical trials , outside lab and contract service expense is expected to increase . toxicology and efficacy studies expense was $ 1,588,000 during the year ended september 30 , 2013 , compared to $ 43,000 in the comparable prior period . the increase is primarily due to glp toxicology studies related to arc-520 , our hepatitis b clinical candidate in preparation for a phase 1 clinical trial . additionally , we initiated long-term toxicology studies to support a phase 2b , multi-dose clinical study for arc-520 . outside toxicology work fluctuates depending on the number of clinical candidates the company is developing and on the specific needs of each development candidate . 53 drug manufacturing expense was $ 2.6 million during the year ended september 30 , 201 3 , compared to $ 1.6 million in the comparable prior period . drug manufacturing expense for fiscal 2013 was related to the manufacturing campaign to produce materials for the arc-520 glp toxicology studies and the phase 1 clinical trial . the company utilized outside manufactures to produce these components . in the prior year , approximately half of the drug manufacturing expense was related to the production of polymer components for rondel . further development of rondel and calaa-01 was suspended as the company focused on its dpc delivery platform . clinical trial expense was $ 1,093,000 during the year ended september 30 , 2013 , compared to $ 599,000 in the comparable prior period . expenses relating to clinical trials increased as
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1,043 | the increase/ ( decrease ) in purchased power costs in 2017 , as compared to 2016 , was due primarily to the following : the decrease at cl & p was due primarily to a decrease in the price of standard offer supply associated with the gsc . the decrease at nstar electric was due primarily to lower prices associated with the procurement of energy supply , lower sales volumes and the expiration of certain purchase power agreements . the increase at psnh was due primarily to higher purchased power energy expenses that are recovered as a component of the energy service rate , and regional greenhouse gas initiative related expenses recovered in the scrc . transmission costs : included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generating plants to substations , including costs allocated by iso-ne to maintain the wholesale electric market . the increase/ ( decrease ) in transmission costs in 2017 , as compared to 2016 , was due primarily to the following : the increase at cl & p was primarily the result of an increase in costs billed by iso-ne that support regional grid investment , local network service charges , which reflect the cost of transmission service , and the retail transmission cost deferral , which reflects the actual costs of transmission service compared to estimated amounts billed to customers . the decrease at nstar electric was primarily the result of a decrease in the retail transmission cost deferral . this was partially offset by an increase in costs billed by iso-ne . the increase at psnh was primarily the result of increases in costs billed by iso-ne , local network service charges , and the retail transmission cost deferral . 52 operations and maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings ( non-tracked costs ) . operations and maintenance expense increased/ ( decreased ) in 2017 , as compared to 2016 , due primarily to the following : replace_table_token_38_th depreciation increased at cl & p , nstar electric and psnh in 2017 , as compared to 2016 , due primarily to higher utility plant in service balances . amortization of regulatory assets/ ( liabilities ) , net expense includes the deferral of energy supply and energy-related costs and the amortization of storm and other costs . amortization of regulatory assets/ ( liabilities ) , net increased at cl & p and decreased for both nstar electric and psnh in 2017 , as compared to 2016 , due primarily to the deferral adjustment of energy supply and energy-related costs , which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs . the deferral adjusts expense to match the corresponding revenues . energy supply and energy-related costs , which are the primary drivers of amortization , are recovered from customers in rates and have no impact on earnings . energy efficiency programs expense includes costs for various state policy initiatives and are recovered from customers in rates and have no impact on earnings . energy efficiency programs expense decreased in 2017 , as compared to 2016 , due primarily to the following : the decrease at cl & p is due primarily to a state of connecticut policy change requiring the remittance of $ 25.4 million of 2017 energy efficiency funds to the state . these amounts collected from customers were reclassified to taxes other than income taxes . the decrease at nstar electric is due to the deferral adjustment , which reflects the actual cost of energy efficiency programs compared to the estimated amounts billed to customers and the timing of the recovery of energy efficiency costs . the deferral adjusts costs to match energy efficiency revenue billed to customers . taxes other than income taxes increased in 2017 , as compared to 2016 , due primarily to the following : the increase at cl & p is due primarily to a state of connecticut policy change requiring the remittance of $ 25.4 million of 2017 energy efficiency funds to the state and higher utility plant balances , partially offset by a decrease in gross earnings taxes . gross earnings taxes are recovered from customers in rates and have no impact on earnings . the increase at nstar electric is due primarily to higher property taxes resulting from disallowed costs in the november 30 , 2017 nstar electric dpu distribution rate case decision and higher employee-related payroll taxes , partially offset by a decrease in property tax rates in boston . the increase at psnh is due to an increase in property taxes as a result of higher utility plant balances . interest expense at nstar electric decreased in 2017 , as compared to 2016 , due primarily to lower deferred regulatory interest expense ( $ 14.0 million ) , primarily as a result of the november 30 , 2017 nstar electric dpu distribution rate case decision , which allowed for a higher interest rate on carrying charges for past storm costs , partially offset by an increase in interest on long-term debt ( $ 9.6 million ) . other income , net increased in 2017 , as compared to 2016 , due primarily to the following : the increase at cl & p is due to higher afudc related to equity funds ( $ 5.9 million ) and market value changes related to the deferred compensation plans ( $ 6.3 million ) , partially offset by lower interest income ( $ 4.4 million ) . the increase at nstar electric is due to market value changes related to the deferred compensation plans ( $ 1.6 million ) , an increase in amounts related to officer life insurance policies ( $ 1.3 million ) and an increase in interest income ( $ 1.2 million ) . story_separator_special_tag 59 results of operations – the connecticut light and power company the following provides the amounts and variances in operating revenues and expense line items in the statements of income for cl & p for the years ended december 31 , 2016 and 2015 included in this annual report on form 10-k : replace_table_token_43_th ( a ) percent greater than 100 not shown as it is not meaningful . operating revenues cl & p 's retail sales volumes were as follows : replace_table_token_44_th cl & p 's operating revenues , which consist of base distribution revenues and tracked revenues further described below , increased by $ 3.3 million in 2016 , as compared to 2015. base distribution revenues increased by $ 30.1 million due to a higher rate base resulting from the 2015 pura adit settlement agreement that is being collected from customers in distribution rates ( $ 26.1 million ) and the absence of a required roe reduction , as stipulated in the pura 2014 rate case decision , recorded in 2015 ( $ 4 million ) . this increase was partially offset by the absence of the benefit recognized in 2015 in operating revenues due to the pura adit settlement agreement . fluctuations in cl & p 's sales volumes do not impact the level of base distribution revenue realized or earnings due to the pura approved revenue decoupling mechanism . cl & p 's revenue decoupling mechanism permits recovery of a base amount of distribution revenues ( $ 1.059 billion annually ) and breaks the relationship between sales volumes and revenues recognized . the revenue decoupling mechanism results in the recovery of approved base distribution revenue requirements . fluctuations in the overall level of operating revenues are primarily related to tracked revenues . tracked revenues consist of certain costs that are recovered from customers in rates through pura-approved cost tracking mechanisms and therefore have no impact on earnings . costs recovered through cost tracking mechanisms include energy supply procurement and other energy-related costs , retail transmission charges , energy efficiency program costs and restructuring and stranded cost recovery revenues . in addition , tracked revenues include certain incentives earned and carrying charges . tracked distribution revenues decreased primarily as a result of a decrease in energy supply costs ( $ 222.4 million ) driven by decreased average retail rates and lower sales volumes . partially offsetting this decrease was an increase in federally mandated congestion charges ( $ 103.0 million ) and an increase in competitive transition assessment charges ( $ 31.7 million ) . in addition , as a result of a change to the amounts collected in the system benefits charge , cl & p 's calculated rate base increased , providing an increase to distribution revenues that impacted earnings of $ 23.2 million . transmission revenues increased by $ 62.7 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure and the absence in 2016 of a $ 12.5 million reserve charge recorded in 2015 associated with the march 2015 ferc roe order . 60 purchased power and transmission expense includes costs associated with purchasing electricity on behalf of cl & p 's customers . these energy supply costs are recovered from customers in pura-approved cost tracking mechanisms , which have no impact on earnings ( tracked costs ) . purchased power and transmission expense decreased in 2016 , as compared to 2015 , due primarily to the following : ( millions of dollars ) ( decrease ) /increase purchased power costs $ ( 173.1 ) transmission costs 38.5 total purchased power and transmission $ ( 134.6 ) included in purchased power costs are the costs associated with cl & p 's gsc and deferred energy supply costs . the gsc recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to third party suppliers . the decrease in purchased power costs in 2016 , compared to 2015 , was due primarily to a decrease in the price of standard offer supply , as well as lower sales volumes . the increase in transmission costs was primarily the result of an increase in costs billed by iso-ne that support regional grid investment . operations and maintenance expense increased in 2016 , as compared to 2015 , driven by a $ 9.2 million increase in tracked costs , which have no earnings impact , that was primarily attributable to higher transmission expenses , partially offset by a $ 6.4 million decrease in non-tracked costs , which was primarily attributable to lower employee-related expenses , partially offset by higher storm restoration costs and the write-off of software design costs . depreciation increased in 2016 , as compared to 2015 , due primarily to higher utility plant in service balances . amortization of regulatory assets , net expense includes the deferral of energy supply and energy-related costs and the amortization of storm and other costs . amortization of regulatory assets , net increased in 2016 , as compared to 2015 , due primarily to the deferral adjustment of energy supply and energy-related costs , which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs . the deferral adjusts expense to match the corresponding revenues . energy supply and energy-related costs , which are the primary drivers of amortization , are recovered from customers in rates and have no impact on earnings . taxes other than income taxes expense increased in 2016 , as compared to 2015 , due primarily to an increase in property taxes as a result of both an increase in utility plant balances and an increase in gross earnings taxes . gross earnings taxes are recovered from customers in rates and have no impact on earnings . interest expense decreased in 2016 , as compared to 2015 , due primarily to lower deferred regulatory interest expense (
| cash totaled $ 6.0 million as of december 31 , 2017 , compared with $ 6.6 million as of december 31 , 2016. cl & p had cash flows provided by operating activities of $ 804.6 million in 2017 , compared with $ 811.5 million in 2016. the decrease in operating cash flows was due primarily to income tax payments of $ 68.8 million made in 2017 , compared to the income tax refunds of $ 73.9 million received in 2016. partially offsetting this decrease was the timing of regulatory recoveries , an increase in distribution rates due to higher rate base , and the timing of collections and payments related to our working capital items . eversource parent has a $ 1.45 billion commercial paper program allowing eversource parent to issue commercial paper as a form of short-term debt , with intercompany loans to certain subsidiaries , including cl & p . the weighted-average interest rate on the commercial paper borrowings as of december 31 , 2017 and 2016 was 1.86 percent and 0.88 percent , respectively . as of december 31 , 2017 and 2016 , there were intercompany loans from eversource parent to cl & p of $ 69.5 million and $ 80.1 million , respectively . eversource parent , and certain of its subsidiaries , including cl & p , are parties to a five-year $ 1.45 billion revolving credit facility . on december 8 , 2017 , eversource parent amended and restated the revolving credit facility .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash totaled $ 6.0 million as of december 31 , 2017 , compared with $ 6.6 million as of december 31 , 2016. cl & p had cash flows provided by operating activities of $ 804.6 million in 2017 , compared with $ 811.5 million in 2016. the decrease in operating cash flows was due primarily to income tax payments of $ 68.8 million made in 2017 , compared to the income tax refunds of $ 73.9 million received in 2016. partially offsetting this decrease was the timing of regulatory recoveries , an increase in distribution rates due to higher rate base , and the timing of collections and payments related to our working capital items . eversource parent has a $ 1.45 billion commercial paper program allowing eversource parent to issue commercial paper as a form of short-term debt , with intercompany loans to certain subsidiaries , including cl & p . the weighted-average interest rate on the commercial paper borrowings as of december 31 , 2017 and 2016 was 1.86 percent and 0.88 percent , respectively . as of december 31 , 2017 and 2016 , there were intercompany loans from eversource parent to cl & p of $ 69.5 million and $ 80.1 million , respectively . eversource parent , and certain of its subsidiaries , including cl & p , are parties to a five-year $ 1.45 billion revolving credit facility . on december 8 , 2017 , eversource parent amended and restated the revolving credit facility .
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Suspicious Activity Report : the increase/ ( decrease ) in purchased power costs in 2017 , as compared to 2016 , was due primarily to the following : the decrease at cl & p was due primarily to a decrease in the price of standard offer supply associated with the gsc . the decrease at nstar electric was due primarily to lower prices associated with the procurement of energy supply , lower sales volumes and the expiration of certain purchase power agreements . the increase at psnh was due primarily to higher purchased power energy expenses that are recovered as a component of the energy service rate , and regional greenhouse gas initiative related expenses recovered in the scrc . transmission costs : included in transmission costs are charges that recover the cost of transporting electricity over high-voltage lines from generating plants to substations , including costs allocated by iso-ne to maintain the wholesale electric market . the increase/ ( decrease ) in transmission costs in 2017 , as compared to 2016 , was due primarily to the following : the increase at cl & p was primarily the result of an increase in costs billed by iso-ne that support regional grid investment , local network service charges , which reflect the cost of transmission service , and the retail transmission cost deferral , which reflects the actual costs of transmission service compared to estimated amounts billed to customers . the decrease at nstar electric was primarily the result of a decrease in the retail transmission cost deferral . this was partially offset by an increase in costs billed by iso-ne . the increase at psnh was primarily the result of increases in costs billed by iso-ne , local network service charges , and the retail transmission cost deferral . 52 operations and maintenance expense includes tracked costs and costs that are part of base distribution rates with changes impacting earnings ( non-tracked costs ) . operations and maintenance expense increased/ ( decreased ) in 2017 , as compared to 2016 , due primarily to the following : replace_table_token_38_th depreciation increased at cl & p , nstar electric and psnh in 2017 , as compared to 2016 , due primarily to higher utility plant in service balances . amortization of regulatory assets/ ( liabilities ) , net expense includes the deferral of energy supply and energy-related costs and the amortization of storm and other costs . amortization of regulatory assets/ ( liabilities ) , net increased at cl & p and decreased for both nstar electric and psnh in 2017 , as compared to 2016 , due primarily to the deferral adjustment of energy supply and energy-related costs , which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs . the deferral adjusts expense to match the corresponding revenues . energy supply and energy-related costs , which are the primary drivers of amortization , are recovered from customers in rates and have no impact on earnings . energy efficiency programs expense includes costs for various state policy initiatives and are recovered from customers in rates and have no impact on earnings . energy efficiency programs expense decreased in 2017 , as compared to 2016 , due primarily to the following : the decrease at cl & p is due primarily to a state of connecticut policy change requiring the remittance of $ 25.4 million of 2017 energy efficiency funds to the state . these amounts collected from customers were reclassified to taxes other than income taxes . the decrease at nstar electric is due to the deferral adjustment , which reflects the actual cost of energy efficiency programs compared to the estimated amounts billed to customers and the timing of the recovery of energy efficiency costs . the deferral adjusts costs to match energy efficiency revenue billed to customers . taxes other than income taxes increased in 2017 , as compared to 2016 , due primarily to the following : the increase at cl & p is due primarily to a state of connecticut policy change requiring the remittance of $ 25.4 million of 2017 energy efficiency funds to the state and higher utility plant balances , partially offset by a decrease in gross earnings taxes . gross earnings taxes are recovered from customers in rates and have no impact on earnings . the increase at nstar electric is due primarily to higher property taxes resulting from disallowed costs in the november 30 , 2017 nstar electric dpu distribution rate case decision and higher employee-related payroll taxes , partially offset by a decrease in property tax rates in boston . the increase at psnh is due to an increase in property taxes as a result of higher utility plant balances . interest expense at nstar electric decreased in 2017 , as compared to 2016 , due primarily to lower deferred regulatory interest expense ( $ 14.0 million ) , primarily as a result of the november 30 , 2017 nstar electric dpu distribution rate case decision , which allowed for a higher interest rate on carrying charges for past storm costs , partially offset by an increase in interest on long-term debt ( $ 9.6 million ) . other income , net increased in 2017 , as compared to 2016 , due primarily to the following : the increase at cl & p is due to higher afudc related to equity funds ( $ 5.9 million ) and market value changes related to the deferred compensation plans ( $ 6.3 million ) , partially offset by lower interest income ( $ 4.4 million ) . the increase at nstar electric is due to market value changes related to the deferred compensation plans ( $ 1.6 million ) , an increase in amounts related to officer life insurance policies ( $ 1.3 million ) and an increase in interest income ( $ 1.2 million ) . story_separator_special_tag 59 results of operations – the connecticut light and power company the following provides the amounts and variances in operating revenues and expense line items in the statements of income for cl & p for the years ended december 31 , 2016 and 2015 included in this annual report on form 10-k : replace_table_token_43_th ( a ) percent greater than 100 not shown as it is not meaningful . operating revenues cl & p 's retail sales volumes were as follows : replace_table_token_44_th cl & p 's operating revenues , which consist of base distribution revenues and tracked revenues further described below , increased by $ 3.3 million in 2016 , as compared to 2015. base distribution revenues increased by $ 30.1 million due to a higher rate base resulting from the 2015 pura adit settlement agreement that is being collected from customers in distribution rates ( $ 26.1 million ) and the absence of a required roe reduction , as stipulated in the pura 2014 rate case decision , recorded in 2015 ( $ 4 million ) . this increase was partially offset by the absence of the benefit recognized in 2015 in operating revenues due to the pura adit settlement agreement . fluctuations in cl & p 's sales volumes do not impact the level of base distribution revenue realized or earnings due to the pura approved revenue decoupling mechanism . cl & p 's revenue decoupling mechanism permits recovery of a base amount of distribution revenues ( $ 1.059 billion annually ) and breaks the relationship between sales volumes and revenues recognized . the revenue decoupling mechanism results in the recovery of approved base distribution revenue requirements . fluctuations in the overall level of operating revenues are primarily related to tracked revenues . tracked revenues consist of certain costs that are recovered from customers in rates through pura-approved cost tracking mechanisms and therefore have no impact on earnings . costs recovered through cost tracking mechanisms include energy supply procurement and other energy-related costs , retail transmission charges , energy efficiency program costs and restructuring and stranded cost recovery revenues . in addition , tracked revenues include certain incentives earned and carrying charges . tracked distribution revenues decreased primarily as a result of a decrease in energy supply costs ( $ 222.4 million ) driven by decreased average retail rates and lower sales volumes . partially offsetting this decrease was an increase in federally mandated congestion charges ( $ 103.0 million ) and an increase in competitive transition assessment charges ( $ 31.7 million ) . in addition , as a result of a change to the amounts collected in the system benefits charge , cl & p 's calculated rate base increased , providing an increase to distribution revenues that impacted earnings of $ 23.2 million . transmission revenues increased by $ 62.7 million due primarily to higher revenue requirements associated with ongoing investments in our transmission infrastructure and the absence in 2016 of a $ 12.5 million reserve charge recorded in 2015 associated with the march 2015 ferc roe order . 60 purchased power and transmission expense includes costs associated with purchasing electricity on behalf of cl & p 's customers . these energy supply costs are recovered from customers in pura-approved cost tracking mechanisms , which have no impact on earnings ( tracked costs ) . purchased power and transmission expense decreased in 2016 , as compared to 2015 , due primarily to the following : ( millions of dollars ) ( decrease ) /increase purchased power costs $ ( 173.1 ) transmission costs 38.5 total purchased power and transmission $ ( 134.6 ) included in purchased power costs are the costs associated with cl & p 's gsc and deferred energy supply costs . the gsc recovers energy-related costs incurred as a result of providing electric generation service supply to all customers who have not migrated to third party suppliers . the decrease in purchased power costs in 2016 , compared to 2015 , was due primarily to a decrease in the price of standard offer supply , as well as lower sales volumes . the increase in transmission costs was primarily the result of an increase in costs billed by iso-ne that support regional grid investment . operations and maintenance expense increased in 2016 , as compared to 2015 , driven by a $ 9.2 million increase in tracked costs , which have no earnings impact , that was primarily attributable to higher transmission expenses , partially offset by a $ 6.4 million decrease in non-tracked costs , which was primarily attributable to lower employee-related expenses , partially offset by higher storm restoration costs and the write-off of software design costs . depreciation increased in 2016 , as compared to 2015 , due primarily to higher utility plant in service balances . amortization of regulatory assets , net expense includes the deferral of energy supply and energy-related costs and the amortization of storm and other costs . amortization of regulatory assets , net increased in 2016 , as compared to 2015 , due primarily to the deferral adjustment of energy supply and energy-related costs , which can fluctuate from period to period based on the timing of costs incurred and related rate changes to recover these costs . the deferral adjusts expense to match the corresponding revenues . energy supply and energy-related costs , which are the primary drivers of amortization , are recovered from customers in rates and have no impact on earnings . taxes other than income taxes expense increased in 2016 , as compared to 2015 , due primarily to an increase in property taxes as a result of both an increase in utility plant balances and an increase in gross earnings taxes . gross earnings taxes are recovered from customers in rates and have no impact on earnings . interest expense decreased in 2016 , as compared to 2015 , due primarily to lower deferred regulatory interest expense (
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1,044 | our platform and its associated solutions are sold to customers on a subscription basis and can be deployed through our unique cloud-based architecture that leverages both our global data centers as well as optional points-of-presence behind our customers ' firewalls . our flexible deployment model enables us to deliver superior security and compliance while maintaining the favorable economics afforded by cloud computing , creating a competitive advantage for us over legacy on-premises and cloud-only offerings . 35 we were founded in 2002 to provide a unified solution to help enterprises address their growing data security requirements . our first solution was commercially released in 2003 to combat the burgeoning problem of spam and viruses and their impact on corporate email systems . to address the evolving threat landscape and the adoption of communication and collaboration systems beyond corporate email and networks , we have broadened our solutions to defend against a wide range of threats , including email , mobile apps and social media , to protect the information people create from both compromise and compliance risks , and to archive and govern corporate information . today , our solutions are used worldwide to protect well over 100 million end users at enterprise customers , and millions more via service providers through our cloudmark division . as the threat environment has continued to evolve , we have dedicated significant resources to meet the ongoing challenges that this highly dynamic environment creates for our customers such as investing significantly to expand the breadth of our data protection platform as these expenditures are primarily in connection with the replacement and upgrade of equipment to lower the cost of deployment as well as to improve the efficiency for our cloud-based architecture . our business is based on a recurring revenue model . our customers pay a subscription fee to license the various components of our saas platform for a contract term that is typically one to three years . at the end of the license term , customers may renew their subscription and in each year since the launch of our first solution in 2003 , we have maintained a renewal rate with our existing customers of over 90 % . we derive this retention rate by calculating the total annually recurring subscription revenue from customers currently using our saas platform and dividing it by the total annually recurring subscription revenue from both these current customers as well as all business lost through non-renewal . we market and sell our solutions worldwide both directly through our sales teams and indirectly through a hybrid model where our sales organization actively assists our network of distributors and resellers . we also derive a lesser portion of our total revenue from the license of our solutions to strategic partners who offer our solutions in conjunction with one or more of their own products or services . our solutions are designed to be implemented , configured and operated without the need for any training or professional services . we offer various training and professional services for those customers that seek to develop deeper expertise in the use of our solutions or would like assistance with complex configurations or the importing of data . in some cases , we provide a hardware appliance to those customers that elect to host elements of our solution behind their firewall . increasing adoption of virtualization in the data center has led to a decline in the sales of our hardware appliances and a shift towards our software-based virtual appliances , which are delivered as a download via the internet . our hardware and services offerings carry lower margins and are provided as a courtesy to our customers . we expect the overall proportion of revenue derived from the hardware and services offerings to generally remain below 5 % of our total revenue . historically , the majority of our revenue was derived from our customers in the united states . we believe the markets outside of the united states offer an opportunity for growth and we intend to make additional investments in sales and marketing to expand in these markets . revenue from customers outside of the united states grew 32 % for the year ended december 31 , 2019 as compared to the prior year . in terms of customer concentration , there were two partners who accounted for 12 % and 11 % , respectively , of our total revenue in 2019. in 2018 and 2017 , one partner accounted for 12 % of our total revenue in each year . these partners sold to a number of end users , none of which accounted for more than 10 % of our total revenue in 2019 , 2018 and 2017. we have not been profitable to date and will need to grow revenue at a rate faster than our investments in cost of revenue and operating expenses in order to achieve profitability , as discussed in more detail below . key opportunities and challenges the total costs associated with the teams tasked with closing business with new customers and additional business with our existing customers have represented more than 90 % of our total sales and marketing costs since 2008. although we expect customers to be profitable over the duration of the customer relationship , the upfront costs typically exceed related revenue during the earlier periods of a contract . as a result , while our practice of invoicing our customers for the entire amount of the contract at the start of the term provides us with a relatively immediate contribution to cash flow , the revenue is recognized ratably over the term of the contract , and hence contributions toward operating income are limited in the period where the sales and marketing costs are incurred . accordingly , an increase in the mix of new customers as a percentage of total customers would likely negatively impact our near-term operating results . story_separator_special_tag for the software developed for use on our customers ' premises , the costs associated with the development work between technological feasibility and the general availability has not been material and as such we have not capitalized any of these development costs to date . sales and marketing . sales and marketing expenses include personnel costs , sales commissions , and other costs including travel and entertainment , marketing and promotional events , public relations and marketing activities . these costs also include amortization of intangible assets as a result of our past acquisitions . due to our continued investment in growing our sales and marketing operations , both domestically and internationally , headcount increases were reflected in higher compensation expense consistent with our revenue growth . our sales personnel are typically not immediately productive , and therefore the increase in sales and marketing expenses we incur when we add new sales representatives is not immediately offset by increased revenue and may not result in increased revenue over the long-term if these new sales people fail to become productive . the timing of our hiring of new sales personnel and the rate at which they generate incremental revenue will affect our future financial performance . we expect that sales and marketing expenses will continue to increase in absolute dollars and be among the most significant components of our operating expenses . general and administrative . general and administrative expenses consist of personnel costs , consulting services , audit fees , tax services , legal expenses and other general corporate items . as a result of our operational growth , we expect our general and administrative expenses to increase in absolute dollars in future periods as we continue to expand our operations and hire additional personnel . interest expense interest expense consists of interest expense and loss on conversion related to our convertible senior notes . other income , net other income , net , consists primarily of interest income earned on our cash , cash equivalents and short-term investments , and the net effect of foreign currency transaction gains and losses . ( provision for ) benefit from income taxes for most of the prior years , our income tax expense or benefit were primarily related to state and foreign income taxes . as we have incurred operating losses in all periods to date and recorded a full valuation allowance against our deferred tax assets , we had not historically recorded a provision for federal income taxes . however , in the year ended december 31 , 2017 , we recognized $ 0.2 million of deferred tax benefit in the u.s. related to amortization of tax goodwill on business acquisitions and $ 12.3 million of deferred tax benefit in the u.s. related to changes in the company 's valuation allowance resulting from the cloudmark , inc. and weblife balance , inc. business acquisitions . for the year ended december 31 , 2018 , we recognized $ 14.7 million of deferred tax benefit in the u.s. related to changes in the company 's valuation allowance resulting from the wombat security technologies , inc. acquisition . for the year ended december 31 , 2019 , we recognized $ 0.3 million of deferred tax benefit in the u.s. related to amortization of tax goodwill on certain business acquisitions . realization of any of our deferred tax assets depends upon future earnings , the timing and amount of which are uncertain . utilization of our net operating losses and research and development credits may be subject to substantial annual limitation due to the ownership change limitations provided by the internal revenue code and similar state provisions . analyses have been conducted to determine whether an ownership change had occurred since inception . the analyses have indicated that although ownership changes have occurred in prior years , the net operating losses and research and development credits would not expire before utilization as a result of the ownership change . in the event we have subsequent changes in ownership , net operating losses and research and development credit carryovers could be limited and may expire unutilized as a result of the subsequent ownership change . 41 results of operations the following table is a summary of our consolidated statements of operations . replace_table_token_9_th the following table sets forth our consolidated results of operations for the specified periods as a percentage of our total revenue for those periods . replace_table_token_10_th ( 1 ) includes stock-based compensation and amortization of intangible assets as follows : 42 replace_table_token_11_th revenue replace_table_token_12_th subscription revenue increased $ 170.6 million and $ 198.0 million , or 24 % and 39 % , respectively , for 2019 and 2018. these increases were due to a $ 128.6 million and $ 153.1 million increase in revenue from the united states and a $ 42.0 million and $ 44.9 million increase from international customers for 2019 and 2018 , respectively . the increases in subscription revenue for 2019 and 2018 were due to the ongoing demand for our solutions , increase in add-on activity and renewal rate being higher than 90 % . our enterprise customer count , which consists of customers that generate more than $ 10,000 in annual recurring revenue , increased from approximately 6,100 at the end of 2018 to approximately 7,100 , or 16 % , at the end of 2019. in addition , the number of customers with three or more products increased 38 % in 2019 as compared to 2018. our enterprise customer count increased from approximately 4,400 at the end of 2017 to approximately 6,100 , or 39 % , at the end of 2018. the revenue recognized from acquired deferred revenue related to the acquisitions we made was $ 5.8 million , $ 20.8 million and $ 3.2 million in 2019 , 2018 and 2017 , respectively . the change in subscription revenue due to pricing was not significant for either period . hardware and services revenue for
| cash flows the following table sets forth a summary of our consolidated cash flows for the periods indicated : replace_table_token_23_th net cash flows provided by operating activities our net loss and cash flows from operating activities are significantly influenced by our investments in headcount and data center operations to support anticipated growth . our cash flows are also influenced by cash payments from customers . we invoice customers for the entire contract amount at the start of the term , and as such our cash flow from operations is also affected by the length of a customer contract . net cash provided by operating activities was $ 242.5 million in 2019 as compared to $ 184.7 million in 2018. the increase of $ 57.8 million was primarily due to : an increase in amortization of intangible assets of $ 4.5 million due to acquired businesses , and an increase in depreciation of fixed assets of $ 2.3 million due to an increase in capital expenditures ; an increase in stock-based compensation expense of $ 33.6 million due to the increase in headcount and grants made ; an increase in amortization of debt issuance costs and accretion of debt discount of $ 3.3 million due to the issuance of the 2024 notes ( see note 10 “ convertible senior notes ” to the consolidated financial statements ) ; an increase in amortization of deferred commissions of $ 13.3 million due to an increase in revenue ; a $ 23.3 million increase in noncash lease costs primarily due to the adoption of asc 842 effective january 1 , 2019 ; a decrease in benefit from deferred income taxes of $ 12.9 million primarily due to a decrease in valuation allowance due to the business acquisition made in 2018 ; a decrease in accounts receivable change of $ 19.7 million due to the timing of payments ; an increase in accounts payable and accrued liabilities changes of $ 4.0 million primarily due to the timing of compensation and other payments ; and an increase in deferred revenue change of $ 23.6 million due to higher billings .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table sets forth a summary of our consolidated cash flows for the periods indicated : replace_table_token_23_th net cash flows provided by operating activities our net loss and cash flows from operating activities are significantly influenced by our investments in headcount and data center operations to support anticipated growth . our cash flows are also influenced by cash payments from customers . we invoice customers for the entire contract amount at the start of the term , and as such our cash flow from operations is also affected by the length of a customer contract . net cash provided by operating activities was $ 242.5 million in 2019 as compared to $ 184.7 million in 2018. the increase of $ 57.8 million was primarily due to : an increase in amortization of intangible assets of $ 4.5 million due to acquired businesses , and an increase in depreciation of fixed assets of $ 2.3 million due to an increase in capital expenditures ; an increase in stock-based compensation expense of $ 33.6 million due to the increase in headcount and grants made ; an increase in amortization of debt issuance costs and accretion of debt discount of $ 3.3 million due to the issuance of the 2024 notes ( see note 10 “ convertible senior notes ” to the consolidated financial statements ) ; an increase in amortization of deferred commissions of $ 13.3 million due to an increase in revenue ; a $ 23.3 million increase in noncash lease costs primarily due to the adoption of asc 842 effective january 1 , 2019 ; a decrease in benefit from deferred income taxes of $ 12.9 million primarily due to a decrease in valuation allowance due to the business acquisition made in 2018 ; a decrease in accounts receivable change of $ 19.7 million due to the timing of payments ; an increase in accounts payable and accrued liabilities changes of $ 4.0 million primarily due to the timing of compensation and other payments ; and an increase in deferred revenue change of $ 23.6 million due to higher billings .
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Suspicious Activity Report : our platform and its associated solutions are sold to customers on a subscription basis and can be deployed through our unique cloud-based architecture that leverages both our global data centers as well as optional points-of-presence behind our customers ' firewalls . our flexible deployment model enables us to deliver superior security and compliance while maintaining the favorable economics afforded by cloud computing , creating a competitive advantage for us over legacy on-premises and cloud-only offerings . 35 we were founded in 2002 to provide a unified solution to help enterprises address their growing data security requirements . our first solution was commercially released in 2003 to combat the burgeoning problem of spam and viruses and their impact on corporate email systems . to address the evolving threat landscape and the adoption of communication and collaboration systems beyond corporate email and networks , we have broadened our solutions to defend against a wide range of threats , including email , mobile apps and social media , to protect the information people create from both compromise and compliance risks , and to archive and govern corporate information . today , our solutions are used worldwide to protect well over 100 million end users at enterprise customers , and millions more via service providers through our cloudmark division . as the threat environment has continued to evolve , we have dedicated significant resources to meet the ongoing challenges that this highly dynamic environment creates for our customers such as investing significantly to expand the breadth of our data protection platform as these expenditures are primarily in connection with the replacement and upgrade of equipment to lower the cost of deployment as well as to improve the efficiency for our cloud-based architecture . our business is based on a recurring revenue model . our customers pay a subscription fee to license the various components of our saas platform for a contract term that is typically one to three years . at the end of the license term , customers may renew their subscription and in each year since the launch of our first solution in 2003 , we have maintained a renewal rate with our existing customers of over 90 % . we derive this retention rate by calculating the total annually recurring subscription revenue from customers currently using our saas platform and dividing it by the total annually recurring subscription revenue from both these current customers as well as all business lost through non-renewal . we market and sell our solutions worldwide both directly through our sales teams and indirectly through a hybrid model where our sales organization actively assists our network of distributors and resellers . we also derive a lesser portion of our total revenue from the license of our solutions to strategic partners who offer our solutions in conjunction with one or more of their own products or services . our solutions are designed to be implemented , configured and operated without the need for any training or professional services . we offer various training and professional services for those customers that seek to develop deeper expertise in the use of our solutions or would like assistance with complex configurations or the importing of data . in some cases , we provide a hardware appliance to those customers that elect to host elements of our solution behind their firewall . increasing adoption of virtualization in the data center has led to a decline in the sales of our hardware appliances and a shift towards our software-based virtual appliances , which are delivered as a download via the internet . our hardware and services offerings carry lower margins and are provided as a courtesy to our customers . we expect the overall proportion of revenue derived from the hardware and services offerings to generally remain below 5 % of our total revenue . historically , the majority of our revenue was derived from our customers in the united states . we believe the markets outside of the united states offer an opportunity for growth and we intend to make additional investments in sales and marketing to expand in these markets . revenue from customers outside of the united states grew 32 % for the year ended december 31 , 2019 as compared to the prior year . in terms of customer concentration , there were two partners who accounted for 12 % and 11 % , respectively , of our total revenue in 2019. in 2018 and 2017 , one partner accounted for 12 % of our total revenue in each year . these partners sold to a number of end users , none of which accounted for more than 10 % of our total revenue in 2019 , 2018 and 2017. we have not been profitable to date and will need to grow revenue at a rate faster than our investments in cost of revenue and operating expenses in order to achieve profitability , as discussed in more detail below . key opportunities and challenges the total costs associated with the teams tasked with closing business with new customers and additional business with our existing customers have represented more than 90 % of our total sales and marketing costs since 2008. although we expect customers to be profitable over the duration of the customer relationship , the upfront costs typically exceed related revenue during the earlier periods of a contract . as a result , while our practice of invoicing our customers for the entire amount of the contract at the start of the term provides us with a relatively immediate contribution to cash flow , the revenue is recognized ratably over the term of the contract , and hence contributions toward operating income are limited in the period where the sales and marketing costs are incurred . accordingly , an increase in the mix of new customers as a percentage of total customers would likely negatively impact our near-term operating results . story_separator_special_tag for the software developed for use on our customers ' premises , the costs associated with the development work between technological feasibility and the general availability has not been material and as such we have not capitalized any of these development costs to date . sales and marketing . sales and marketing expenses include personnel costs , sales commissions , and other costs including travel and entertainment , marketing and promotional events , public relations and marketing activities . these costs also include amortization of intangible assets as a result of our past acquisitions . due to our continued investment in growing our sales and marketing operations , both domestically and internationally , headcount increases were reflected in higher compensation expense consistent with our revenue growth . our sales personnel are typically not immediately productive , and therefore the increase in sales and marketing expenses we incur when we add new sales representatives is not immediately offset by increased revenue and may not result in increased revenue over the long-term if these new sales people fail to become productive . the timing of our hiring of new sales personnel and the rate at which they generate incremental revenue will affect our future financial performance . we expect that sales and marketing expenses will continue to increase in absolute dollars and be among the most significant components of our operating expenses . general and administrative . general and administrative expenses consist of personnel costs , consulting services , audit fees , tax services , legal expenses and other general corporate items . as a result of our operational growth , we expect our general and administrative expenses to increase in absolute dollars in future periods as we continue to expand our operations and hire additional personnel . interest expense interest expense consists of interest expense and loss on conversion related to our convertible senior notes . other income , net other income , net , consists primarily of interest income earned on our cash , cash equivalents and short-term investments , and the net effect of foreign currency transaction gains and losses . ( provision for ) benefit from income taxes for most of the prior years , our income tax expense or benefit were primarily related to state and foreign income taxes . as we have incurred operating losses in all periods to date and recorded a full valuation allowance against our deferred tax assets , we had not historically recorded a provision for federal income taxes . however , in the year ended december 31 , 2017 , we recognized $ 0.2 million of deferred tax benefit in the u.s. related to amortization of tax goodwill on business acquisitions and $ 12.3 million of deferred tax benefit in the u.s. related to changes in the company 's valuation allowance resulting from the cloudmark , inc. and weblife balance , inc. business acquisitions . for the year ended december 31 , 2018 , we recognized $ 14.7 million of deferred tax benefit in the u.s. related to changes in the company 's valuation allowance resulting from the wombat security technologies , inc. acquisition . for the year ended december 31 , 2019 , we recognized $ 0.3 million of deferred tax benefit in the u.s. related to amortization of tax goodwill on certain business acquisitions . realization of any of our deferred tax assets depends upon future earnings , the timing and amount of which are uncertain . utilization of our net operating losses and research and development credits may be subject to substantial annual limitation due to the ownership change limitations provided by the internal revenue code and similar state provisions . analyses have been conducted to determine whether an ownership change had occurred since inception . the analyses have indicated that although ownership changes have occurred in prior years , the net operating losses and research and development credits would not expire before utilization as a result of the ownership change . in the event we have subsequent changes in ownership , net operating losses and research and development credit carryovers could be limited and may expire unutilized as a result of the subsequent ownership change . 41 results of operations the following table is a summary of our consolidated statements of operations . replace_table_token_9_th the following table sets forth our consolidated results of operations for the specified periods as a percentage of our total revenue for those periods . replace_table_token_10_th ( 1 ) includes stock-based compensation and amortization of intangible assets as follows : 42 replace_table_token_11_th revenue replace_table_token_12_th subscription revenue increased $ 170.6 million and $ 198.0 million , or 24 % and 39 % , respectively , for 2019 and 2018. these increases were due to a $ 128.6 million and $ 153.1 million increase in revenue from the united states and a $ 42.0 million and $ 44.9 million increase from international customers for 2019 and 2018 , respectively . the increases in subscription revenue for 2019 and 2018 were due to the ongoing demand for our solutions , increase in add-on activity and renewal rate being higher than 90 % . our enterprise customer count , which consists of customers that generate more than $ 10,000 in annual recurring revenue , increased from approximately 6,100 at the end of 2018 to approximately 7,100 , or 16 % , at the end of 2019. in addition , the number of customers with three or more products increased 38 % in 2019 as compared to 2018. our enterprise customer count increased from approximately 4,400 at the end of 2017 to approximately 6,100 , or 39 % , at the end of 2018. the revenue recognized from acquired deferred revenue related to the acquisitions we made was $ 5.8 million , $ 20.8 million and $ 3.2 million in 2019 , 2018 and 2017 , respectively . the change in subscription revenue due to pricing was not significant for either period . hardware and services revenue for
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1,045 | ” 36 revenues , operations , cyclicality , seasonality and financing our operating revenues are derived primarily from broadcast and internet advertising and retransmission consent fees and , to a lesser extent , from other sources such as production of commercials , tower rentals and management fees . broadcast advertising is sold for placement either preceding or following a television station 's network programming and within local and syndicated programming . broadcast advertising is sold in time increments and is priced primarily on the basis of a program 's popularity among the specific audience an advertiser desires to reach , as measured by nielsen . in addition , broadcast advertising rates are affected by the number of advertisers competing for the available time , the size and demographic makeup of the market served by the station and the availability of alternative advertising media in the market area . broadcast advertising rates are generally the highest during the most desirable viewing hours , with corresponding reductions during other hours . the ratings of a local station affiliated with a major network can be affected by ratings of network programming . we also sell internet advertising on our stations ' websites . these advertisements may be sold as banner advertisements , pre-roll advertisements or video and other types of advertisements or sponsorships . most advertising contracts are short-term , and generally run only for a few weeks . approximately 65 % of the net revenues of our television stations for the year ended december 31 , 2014 were generated from local advertising ( including political advertising revenues ) , which is sold primarily by a station 's sales staff directly to local accounts , and the remainder was represented primarily by national advertising , which is sold by a station 's national advertising sales representative . the stations generally pay commissions to advertising agencies on local , regional and national advertising and the stations also pay commissions to the national sales representative on national advertising , including certain political advertising . broadcast advertising revenue is generally highest in the second and fourth quarters each year . this seasonality results partly from increases in advertising in the spring and in the period leading up to and including the holiday season . broadcast advertising revenue is also generally higher in even-numbered years , due to spending by political candidates , political parties and special interest groups during the “ on year ” of the two-year political advertising cycle . this political spending typically is heaviest during the fourth quarter of such years . our primary broadcasting operating expenses are employee compensation , related benefits and programming costs . in addition , the broadcasting operations incur overhead expenses , such as maintenance , supplies , insurance , rent and utilities . a large portion of the operating expenses of our broadcasting operations is fixed . 37 our total revenue for 2014 increased from 2013. this increase was expected due primarily to a substantial increase in the number of national , state and local elections in the “ on year ” of the two-year political advertising cycle and therefore political advertising revenue , as well as the impact from our acquired stations . our retransmission consent revenue increased in 2014 compared to 2013 due to improved terms of our retransmission consent contracts , as well as the impact from our acquired stations . our 2014 local and internet advertising revenue increased over 2013 amounts due primarily to our acquired stations and improvement in the economy in 2014 as compared to 2013. local and national advertising revenue benefited from the broadcast of the 2014 winter olympic games on our then 14 nbc affiliated stations . local and national advertising revenue included revenue from the broadcast of the 2014 super bowl on our then five fox channels , which earned us approximately $ 0.2 million , a decrease of approximately $ 0.9 million compared to the broadcast of the 2013 super bowl on our then 20 cbs channels that earned us approximately $ 1.1 million . in 2013 , we recorded certain incentive consulting revenue under a consulting agreement that expired on december 31 , 2012 , although we received no consulting revenue in 2014. automotive advertisers have traditionally accounted for a significant portion of our revenue . for the years ended december 31 , 2014 and 2013 , we derived approximately 21 % and 25 % , respectively , of our total broadcast advertising revenue from customers in the automotive industry . strong demand for our advertising inventory from political advertisers required significant use of available inventory , which in turn lowered our advertising revenue from our non-political advertising revenue categories in the even numbered “ on-year ” of the two year political advertising cycle . we expect these temporary declines to reverse themselves in odd numbered “ off-year ” of the two year political advertising cycle . while our revenues have experienced a gradual improvement as a result of improvements in general economic conditions in recent years , revenue remains under pressure from the internet as a competitor for advertising spending . we continue to enhance and market our internet websites in an effort to generate additional revenue . our aggregate internet revenue is derived from two sources . the first is advertising or sponsorship opportunities directly on our websites , referred to as “ direct internet revenue . ” the other source is television advertising time purchased by our clients to directly promote their involvement in our websites , referred to as “ internet-related commercial time sales . ” we continue to monitor our operating expenses and reduce them where possible . story_separator_special_tag net cash provided by ( used in ) operating , investing and financing activities net cash provided by operating activities increased $ 74.0 million to $ 134.2 million in 2014 compared to net cash provided by operating activities of $ 60.2 million in 2013. the increase in cash provided by operating activities was due primarily to several factors , including an increase in operating income of $ 69.9 million and an increase of $ 9.9 million due to changes in certain current asset and current liability balances . net cash used in investing activities increased $ 441.4 million to $ 501.9 million for 2014 compared to $ 60.5 million for 2013 due primarily to an increase in cash used to acquire television businesses and licenses . 46 net cash provided by financing activities was $ 385.0 million in 2014 compared to net cash provided by financing activities of $ 2.7 million in 2013. this change of $ 382.3 million was due primarily to our refinancing activities . during 2014 , we borrowed $ 394.4 million more in long-term debt than we repaid , which was partially offset by our payment of $ 9.4 million in costs primarily associated with the refinancing of our senior credit facility . during december 2014 , we made voluntary principal pre-payments totaling $ 67.0 million on the outstanding balance of the 2014 term loan and as a result we are not required to make any additional principal payments until the 2014 term loan matures on june 13 , 2021. retirement plans we have three defined benefit pension plans . two of these plans were assumed by us as a result of our acquisitions in prior years and are frozen plans . our active defined benefit pension plan , which we consider to be our primary pension plan , covers substantially all of our full-time employees . retirement benefits under our active plan are based on years of service and the employees ' highest average compensation for five consecutive years during the last ten years of employment . our funding policy is consistent with the funding requirements of existing federal laws and regulations under the employee retirement income security act of 1974. a discount rate is selected annually to measure the present value of the benefit obligations . in determining the selection of a discount rate , we estimated the timing and amounts of expected future benefit payments and applied a yield curve developed to reflect yields available on high-quality bonds . the yield curve is based on an externally published index specifically designed to meet the criteria of gaap . the discount rate selected for determining benefit obligations as of december 31 , 2014 was 4.00 % , which reflects the results of this yield curve analysis . the discount rate used for determining benefit obligations as of december 31 , 2013 was 4.97 % . our assumptions regarding expected return on plan assets reflects asset allocations , the investment strategy and the views of investment managers , as well as historical experience . we use an assumed rate of return of 7.00 % for our assets invested in our active pension plan . in 2014 and 2013 , actual asset returns for this plan , calculated on a mean market value , increased in value 6.5 % and 17.1 % , respectively . other significant assumptions relate to inflation , salary growth , retirement and mortality rates . our inflation assumption is based on an evaluation of external market indicators . the salary growth assumptions reflect our long-term actual experience , the near-term outlook and assumed inflation . compensation increases over the most recent five-year period have been in line with assumptions . retirement and mortality rates are based on actual plan experience . during 2014 and 2013 , we contributed an aggregate of $ 6.8 million and $ 4.7 million , respectively , to our pension plans and we anticipate making an aggregate contribution of approximately $ 5.3 million to such plans in 2015. the use of significantly different assumptions , or if actual experienced results differ significantly from those assumed , could result in our funding obligations being materially different . see note 9 “ retirement plans ” of our audited consolidated financial statements included elsewhere herein for further information concerning the retirement plans . capital expenditures capital expenditures for the years ended december 31 , 2014 and 2013 were $ 32.2 million and $ 24.1 million , respectively . we expect that our capital expenditures will be approximately $ 25.0 million in the year ending december 31 , 2015. we expect to fund future capital expenditures with cash from operations . 47 off-balance sheet arrangements operating commitments we have various operating lease commitments for equipment , land and office space . we also have commitments for various syndicated television programs . we have two types of syndicated television program contracts : first run programs and off network reruns . the first run programs are programs such as jeopardy and the off network programs are programs such as that ‘ 70s show . a difference between the two types of syndicated television programming is that the first run programs have not been produced at the time the contract to air such programming is signed but the off network programs have already been produced . for all syndicated television contracts , we record an asset and corresponding liability for payments to be made for the entire “ off network ” contract period and for only the current year of the “ first run ” contract period . only an estimate of the payments anticipated to be made in the year following the balance sheet date of the “ first run ” contracts are recorded on the current balance sheet , because the programs for the later years of the contract period have not been produced and delivered . tabular disclosure of contractual obligations as of december 31 , 2014 replace_table_token_12_th 48 the following
| loss from early extinguishment of debt in 2012 , we amended the 2012 senior credit facility and repurchased our then-outstanding 2015 notes . as a result , we incurred costs of approximately $ 48.5 million , including tender offer premiums , bank fees and legal fees . in connection with these transactions , we incurred a loss on early extinguishment of debt of $ 46.7 million for 2012. we did not incur any losses from early extinguishment of debt in 2013. income tax expense our effective income tax rate increased to 41.8 % for 2013 from 40.6 % for 2012. our effective income tax rates differed from the statutory rate due to the following items : replace_table_token_9_th preferred stock dividends in 2012 , we repurchased all then-outstanding shares of our series d perpetual preferred stock . as a result , preferred stock dividends decreased $ 4.1 million , or 100 % , to $ 0.0 million in 2013 compared to 2012 . 43 liquidity and capital resources general the following tables present data that we believe is helpful in evaluating our liquidity and capital resources ( dollars in thousands ) : replace_table_token_10_th replace_table_token_11_th 2014 senior credit facility gray entered into the 2014 senior credit facility on june 13 , 2014 ( the “ closing date ” ) . as of the closing date , the 2014 senior credit facility provided total commitments of $ 575.0 million , consisting of a $ 525.0 million term loan facility ( the “ 2014 term loan ” ) and a $ 50.0 million revolving credit facility ( the “ 2014 revolving credit facility ” ) . on the closing date , we borrowed $ 525.0 million under the 2014 term loan . proceeds from borrowings under the 2014 term loan were used to repay all amounts outstanding under the 2012 senior credit facility , to fund the cash purchase price to complete the hoak acquisition and to pay related fees and expenses , as well as for general corporate purposes . on september 15 , 2014 , we amended the 2014 senior credit facility to increase the commitments under the 2014 term loan to $ 625.0 million and we borrowed an additional $ 100.0 million under the 2014 term loan .
| 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. |
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.
```loss from early extinguishment of debt in 2012 , we amended the 2012 senior credit facility and repurchased our then-outstanding 2015 notes . as a result , we incurred costs of approximately $ 48.5 million , including tender offer premiums , bank fees and legal fees . in connection with these transactions , we incurred a loss on early extinguishment of debt of $ 46.7 million for 2012. we did not incur any losses from early extinguishment of debt in 2013. income tax expense our effective income tax rate increased to 41.8 % for 2013 from 40.6 % for 2012. our effective income tax rates differed from the statutory rate due to the following items : replace_table_token_9_th preferred stock dividends in 2012 , we repurchased all then-outstanding shares of our series d perpetual preferred stock . as a result , preferred stock dividends decreased $ 4.1 million , or 100 % , to $ 0.0 million in 2013 compared to 2012 . 43 liquidity and capital resources general the following tables present data that we believe is helpful in evaluating our liquidity and capital resources ( dollars in thousands ) : replace_table_token_10_th replace_table_token_11_th 2014 senior credit facility gray entered into the 2014 senior credit facility on june 13 , 2014 ( the “ closing date ” ) . as of the closing date , the 2014 senior credit facility provided total commitments of $ 575.0 million , consisting of a $ 525.0 million term loan facility ( the “ 2014 term loan ” ) and a $ 50.0 million revolving credit facility ( the “ 2014 revolving credit facility ” ) . on the closing date , we borrowed $ 525.0 million under the 2014 term loan . proceeds from borrowings under the 2014 term loan were used to repay all amounts outstanding under the 2012 senior credit facility , to fund the cash purchase price to complete the hoak acquisition and to pay related fees and expenses , as well as for general corporate purposes . on september 15 , 2014 , we amended the 2014 senior credit facility to increase the commitments under the 2014 term loan to $ 625.0 million and we borrowed an additional $ 100.0 million under the 2014 term loan .
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Suspicious Activity Report : ” 36 revenues , operations , cyclicality , seasonality and financing our operating revenues are derived primarily from broadcast and internet advertising and retransmission consent fees and , to a lesser extent , from other sources such as production of commercials , tower rentals and management fees . broadcast advertising is sold for placement either preceding or following a television station 's network programming and within local and syndicated programming . broadcast advertising is sold in time increments and is priced primarily on the basis of a program 's popularity among the specific audience an advertiser desires to reach , as measured by nielsen . in addition , broadcast advertising rates are affected by the number of advertisers competing for the available time , the size and demographic makeup of the market served by the station and the availability of alternative advertising media in the market area . broadcast advertising rates are generally the highest during the most desirable viewing hours , with corresponding reductions during other hours . the ratings of a local station affiliated with a major network can be affected by ratings of network programming . we also sell internet advertising on our stations ' websites . these advertisements may be sold as banner advertisements , pre-roll advertisements or video and other types of advertisements or sponsorships . most advertising contracts are short-term , and generally run only for a few weeks . approximately 65 % of the net revenues of our television stations for the year ended december 31 , 2014 were generated from local advertising ( including political advertising revenues ) , which is sold primarily by a station 's sales staff directly to local accounts , and the remainder was represented primarily by national advertising , which is sold by a station 's national advertising sales representative . the stations generally pay commissions to advertising agencies on local , regional and national advertising and the stations also pay commissions to the national sales representative on national advertising , including certain political advertising . broadcast advertising revenue is generally highest in the second and fourth quarters each year . this seasonality results partly from increases in advertising in the spring and in the period leading up to and including the holiday season . broadcast advertising revenue is also generally higher in even-numbered years , due to spending by political candidates , political parties and special interest groups during the “ on year ” of the two-year political advertising cycle . this political spending typically is heaviest during the fourth quarter of such years . our primary broadcasting operating expenses are employee compensation , related benefits and programming costs . in addition , the broadcasting operations incur overhead expenses , such as maintenance , supplies , insurance , rent and utilities . a large portion of the operating expenses of our broadcasting operations is fixed . 37 our total revenue for 2014 increased from 2013. this increase was expected due primarily to a substantial increase in the number of national , state and local elections in the “ on year ” of the two-year political advertising cycle and therefore political advertising revenue , as well as the impact from our acquired stations . our retransmission consent revenue increased in 2014 compared to 2013 due to improved terms of our retransmission consent contracts , as well as the impact from our acquired stations . our 2014 local and internet advertising revenue increased over 2013 amounts due primarily to our acquired stations and improvement in the economy in 2014 as compared to 2013. local and national advertising revenue benefited from the broadcast of the 2014 winter olympic games on our then 14 nbc affiliated stations . local and national advertising revenue included revenue from the broadcast of the 2014 super bowl on our then five fox channels , which earned us approximately $ 0.2 million , a decrease of approximately $ 0.9 million compared to the broadcast of the 2013 super bowl on our then 20 cbs channels that earned us approximately $ 1.1 million . in 2013 , we recorded certain incentive consulting revenue under a consulting agreement that expired on december 31 , 2012 , although we received no consulting revenue in 2014. automotive advertisers have traditionally accounted for a significant portion of our revenue . for the years ended december 31 , 2014 and 2013 , we derived approximately 21 % and 25 % , respectively , of our total broadcast advertising revenue from customers in the automotive industry . strong demand for our advertising inventory from political advertisers required significant use of available inventory , which in turn lowered our advertising revenue from our non-political advertising revenue categories in the even numbered “ on-year ” of the two year political advertising cycle . we expect these temporary declines to reverse themselves in odd numbered “ off-year ” of the two year political advertising cycle . while our revenues have experienced a gradual improvement as a result of improvements in general economic conditions in recent years , revenue remains under pressure from the internet as a competitor for advertising spending . we continue to enhance and market our internet websites in an effort to generate additional revenue . our aggregate internet revenue is derived from two sources . the first is advertising or sponsorship opportunities directly on our websites , referred to as “ direct internet revenue . ” the other source is television advertising time purchased by our clients to directly promote their involvement in our websites , referred to as “ internet-related commercial time sales . ” we continue to monitor our operating expenses and reduce them where possible . story_separator_special_tag net cash provided by ( used in ) operating , investing and financing activities net cash provided by operating activities increased $ 74.0 million to $ 134.2 million in 2014 compared to net cash provided by operating activities of $ 60.2 million in 2013. the increase in cash provided by operating activities was due primarily to several factors , including an increase in operating income of $ 69.9 million and an increase of $ 9.9 million due to changes in certain current asset and current liability balances . net cash used in investing activities increased $ 441.4 million to $ 501.9 million for 2014 compared to $ 60.5 million for 2013 due primarily to an increase in cash used to acquire television businesses and licenses . 46 net cash provided by financing activities was $ 385.0 million in 2014 compared to net cash provided by financing activities of $ 2.7 million in 2013. this change of $ 382.3 million was due primarily to our refinancing activities . during 2014 , we borrowed $ 394.4 million more in long-term debt than we repaid , which was partially offset by our payment of $ 9.4 million in costs primarily associated with the refinancing of our senior credit facility . during december 2014 , we made voluntary principal pre-payments totaling $ 67.0 million on the outstanding balance of the 2014 term loan and as a result we are not required to make any additional principal payments until the 2014 term loan matures on june 13 , 2021. retirement plans we have three defined benefit pension plans . two of these plans were assumed by us as a result of our acquisitions in prior years and are frozen plans . our active defined benefit pension plan , which we consider to be our primary pension plan , covers substantially all of our full-time employees . retirement benefits under our active plan are based on years of service and the employees ' highest average compensation for five consecutive years during the last ten years of employment . our funding policy is consistent with the funding requirements of existing federal laws and regulations under the employee retirement income security act of 1974. a discount rate is selected annually to measure the present value of the benefit obligations . in determining the selection of a discount rate , we estimated the timing and amounts of expected future benefit payments and applied a yield curve developed to reflect yields available on high-quality bonds . the yield curve is based on an externally published index specifically designed to meet the criteria of gaap . the discount rate selected for determining benefit obligations as of december 31 , 2014 was 4.00 % , which reflects the results of this yield curve analysis . the discount rate used for determining benefit obligations as of december 31 , 2013 was 4.97 % . our assumptions regarding expected return on plan assets reflects asset allocations , the investment strategy and the views of investment managers , as well as historical experience . we use an assumed rate of return of 7.00 % for our assets invested in our active pension plan . in 2014 and 2013 , actual asset returns for this plan , calculated on a mean market value , increased in value 6.5 % and 17.1 % , respectively . other significant assumptions relate to inflation , salary growth , retirement and mortality rates . our inflation assumption is based on an evaluation of external market indicators . the salary growth assumptions reflect our long-term actual experience , the near-term outlook and assumed inflation . compensation increases over the most recent five-year period have been in line with assumptions . retirement and mortality rates are based on actual plan experience . during 2014 and 2013 , we contributed an aggregate of $ 6.8 million and $ 4.7 million , respectively , to our pension plans and we anticipate making an aggregate contribution of approximately $ 5.3 million to such plans in 2015. the use of significantly different assumptions , or if actual experienced results differ significantly from those assumed , could result in our funding obligations being materially different . see note 9 “ retirement plans ” of our audited consolidated financial statements included elsewhere herein for further information concerning the retirement plans . capital expenditures capital expenditures for the years ended december 31 , 2014 and 2013 were $ 32.2 million and $ 24.1 million , respectively . we expect that our capital expenditures will be approximately $ 25.0 million in the year ending december 31 , 2015. we expect to fund future capital expenditures with cash from operations . 47 off-balance sheet arrangements operating commitments we have various operating lease commitments for equipment , land and office space . we also have commitments for various syndicated television programs . we have two types of syndicated television program contracts : first run programs and off network reruns . the first run programs are programs such as jeopardy and the off network programs are programs such as that ‘ 70s show . a difference between the two types of syndicated television programming is that the first run programs have not been produced at the time the contract to air such programming is signed but the off network programs have already been produced . for all syndicated television contracts , we record an asset and corresponding liability for payments to be made for the entire “ off network ” contract period and for only the current year of the “ first run ” contract period . only an estimate of the payments anticipated to be made in the year following the balance sheet date of the “ first run ” contracts are recorded on the current balance sheet , because the programs for the later years of the contract period have not been produced and delivered . tabular disclosure of contractual obligations as of december 31 , 2014 replace_table_token_12_th 48 the following
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1,046 | verification services revenue is transaction based and is derived primarily from employment , income and social security number verifications . employer services revenues are derived from our provision of certain human resources business process outsourcing services that include both transaction- and subscription-based product offerings . these services assist our clients with the administration of unemployment claims and employer-based tax credits and the handling of certain payroll-related transaction processing . north america personal solutions revenue is both transaction- and subscription-based and is derived from the sale of credit monitoring and identity theft protection products , which we deliver electronically to consumers primarily via the internet and to a lesser extent through mail . 29 geographic information . we currently operate in the following countries : argentina , brazil , canada , chile , costa rica , ecuador , el salvador , honduras , mexico , paraguay , peru , portugal , the republic of ireland , spain , the u.k. , uruguay , and the u.s. our operations in the republic of ireland focus on data handling and customer support activities . we have an investment in the second largest consumer and commercial credit information company in brazil and offer consumer credit services in india and russia through joint ventures . of the countries we operate in , 74 % of our revenue was generated in the u.s. during the twelve months ended december 31 , 2014 . key performance indicators . management focuses on a variety of key indicators to monitor operating and financial performance . these performance indicators include measurements of operating revenue , change in operating revenue , operating income , operating margin , net income , diluted earnings per share , cash provided by operating activities and capital expenditures . key performance indicators for the twelve months ended december 31 , 2014 , 2013 and 2012 , include the following : replace_table_token_6_th business environment and company outlook demand for our services tends to be correlated to general levels of economic activity , to consumer credit activity , to a lesser extent small commercial credit and marketing activity , in addition to our initiatives to expand our product offering and markets served . in 2014 , the united states experienced modest growth in overall economic activity and a year-over-year decline in consumer mortgage activity . in this environment , equifax revenue growth continued to benefit from our product development and market initiatives which more than offset the declines in mortgage related revenues . in 2015 , we continue to expect modest growth in overall economic activity and consumer credit . we expect mortgage market origination activity to grow modestly for the year , largely in the first half , due to continued low interest rates . internationally , the environment continues to be challenging as various countries address their particular political , fiscal and economic issues . in addition , continued weakening in foreign exchange rates will negatively impact growth in revenue and profit when reported in u.s. dollars . offsetting these challenges , we expect that our ongoing investments in new product innovation , business execution , enterprise growth initiatives , technology infrastructure , and continuous process improvement will enable us to deliver long-term average organic revenue growth ranging between 6 % and 8 % with additional growth of 1 % to 2 % derived from strategic acquisitions consistent with our long term business strategy . we also expect to grow earnings per share at a somewhat faster rate than revenue over time as a result of both operating and financial leverage . 30 results of operations — twelve months ended december 31 , 2014 , 2013 and 2012 consolidated financial results operating revenue from continuing operations replace_table_token_7_th revenue for 2014 increased by 6 % compared to 2013. the growth was driven by the acquisition of tdx in the first quarter of 2014 ( “ tdx acquisition ” ) and the impact of strategic growth initiatives across our businesses . the growth was offset by the expected decline in mortgage market activity . the fourth quarter of 2014 benefited from the relative improvement in mortgage activity in the u.s. , which declined in the second half of 2013 through 2014 , but at a lesser rate in fourth quarter of 2014. this expected decline reduced reported growth rates in our usis and workforce solutions business units for 2014 as compared to the same period for 2013. the effect of foreign exchange rates reduced revenue by $ 34.9 million or 1 % in the 2014 compared to 2013. revenue for 2013 increased by 11 % compared to 2012. the growth was driven by the acquisition of csc credit services in the fourth quarter of 2012 ( “ csc credit services acquisition ” ) and the impact of strategic growth initiatives across our businesses . the growth was offset by the expected net decline in mortgage market activity . the first half of 2013 benefited from the impact of increased mortgage refinancing activity in the u.s. , which , as expected , began to decline in the second half of 2013 as compared to the prior year . this expected decline reduced reported growth rates in our usis and workforce solutions business units for the second half of 2013 as compared to the first half of 2013. the effect of foreign exchange rates reduced revenue by $ 20.4 million in the 2013 compared to 2012. operating expenses replace_table_token_8_th cost of services . cost of services increased $ 57.4 million in 2014 compared to the prior year . the increase in cost of services , when compared to 2013 , was due primarily to the acquisition of tdx in the first quarter of 2014 and the 2013 acquisitions . the effect of changes in foreign exchange rates reduced cost of services by $ 7.7 million . 31 cost of services increased $ 27.8 million in 2013 compared to the prior year . story_separator_special_tag reported revenue also increased 11 % in 2013. canada . local currency revenue increased 6 % in 2014 compared to 2013 , primarily due to new customers within marketing and decision solutions and monitoring services as a result of breach business , as well as , growth in information services . local currency fluctuations against the u.s. dollar negatively impacted revenue by $ 11.1 million , or 7 % , in 2014. reported revenue decreased 1 % in 2014. local currency revenue increased 4 % in 2013 compared to 2012 primarily due to new customers within our technology services sector along with growth in information and analytical services . local currency fluctuations against the u.s. dollar negatively impacted revenue by $ 4.7 million , or 3 % , which resulted in 1 % reported revenue growth in 2013 as compared to 2012. international operating margin . operating margin decreased to 22.4 % in 2014 as compared to 29.2 % in 2013. the decline primarily resulted from the recent acquisitions , including increased acquisition-related amortization expense of $ 23.3 million in 2014 , related to the recent acquisitions . the decline in margin was also a result of inflation-driven pressures on margin in argentina . operating margin decreased in 2013 as compared to 2012 as the revenue growth was more than offset by increased investments in new business and strategic initiatives across most geographies in order to support future revenue growth . workforce solutions replace_table_token_15_th verification services . revenue increased 5 % in 2014 compared to prior year , due to strong growth in non-mortgage verticals , which was partially offset by the expected decline in mortgage-related verification revenue in 2014 driven by the anticipated decline in mortgage market activity in 2014. the revenue growth in non-mortgage verticals was primarily a result of increased revenue mostly related to government , pre-employment and auto segments . 37 revenue increased 8 % in 2013 compared to the prior year period . in 2013 , strong growth in non-mortgage verticals was offset by a slight decline in mortgage-related verification revenue due to the expected decline in mortgage market activity in the second half of 2013. the growth in non-mortgage verticals was primarily a result of increased revenue mostly related to government , pre-employment and consumer finance customer segments . employer services . revenue grew 1 % in 2014 , as compared to 2013. revenue growth was due to growth in our transaction-based services business and workforce analytics business . the growth in 2014 was partially offset by lower unemployment claims activity and a decline in revenue related to the non-renewal of the federal work opportunity tax credit program in 2014 . 2013 revenue increased 6 % as compared to 2012. revenue growth due to the renewal of the federal work opportunity tax credit program at the end of 2012 and growth in our transaction-based services business was partially offset by lower overall claims activity in our unemployment cost management business and the expiration of the hire act tax credit . workforce solutions operating margin . operating margin for 2014 increased compared to prior year . margin expansion in 2014 was driven by a higher mix of high margin business compared to 2013 , as well as cost management initiatives executed during the year . margin improvement was also driven by lower acquisition-related amortization due to certain purchased intangible assets related to our talx corporation acquisition in 2007 that became fully amortized during the second quarter of 2013. operating margin for 2013 increased significantly compared to 2012. margin expansion was driven by strong revenue growth in products with a high degree of fixed costs , strategic initiatives implemented to reduce costs , and from lower acquisition-related amortization . north america personal solutions replace_table_token_16_th revenue increased 4 % for 2014 , as compared to prior year , principally due to the acquisition of trustedid in the third quarter of 2013 and subscription revenue in canada . direct to consumer , equifax-branded u.s.-based subscription service revenue was up 1 % in 2014 as a result of higher average revenue per subscriber . this growth was largely offset by declines primarily in transaction revenue , as well as revenue from legacy partners and breach . operating margin increased in 2014 as compared to prior year , as increased salaries , legal expenses and acquisition-related amortization due to the acquisition of trustedid in the third quarter of 2013 was more than offset by lower marketing expenses . revenue increased 12 % in 2013 as compared to the prior year primarily due to increased direct to consumer , equifax-branded u.s.-based subscription service revenue which was up 10 % in 2013 as well as strong growth of services in the canadian market and the acquisition of trustedid completed in the third quarter of 2013. the increase in the direct to consumer , equifax-branded u.s.-based subscription service revenue was driven by new product sales and higher average revenue per subscriber , reflecting additional features in the equifax product offering , as well as growth in subscribers . transaction sales , breach services , and revenue from traditional partners each declined slightly . operating margin increased in 2013 as compared to the prior year due to lower monitoring and credit file expenses resulting from the csc credit services acquisition , partially offset by the increased investment in sales and marketing expenses and the impact of the third quarter 2013 acquisition . 38 general corporate expense replace_table_token_17_th our general corporate expenses are unallocated costs that are incurred at the corporate level and include those expenses impacted by corporate direction , including shared services , administrative , legal , restructuring , and the portion of management incentive compensation determined by total company-wide performance . general corporate expense was comparable to 2013. general corporate expenses decreased by $ 28.5 million in 2013 , compared to 2012 , primarily due to the $ 38.7 million pension settlement recorded in 2012 partially offset by higher salary , benefit
| debt covenants . our outstanding indentures and comparable instruments contain customary covenants including , for example , limits on secured debt and sale/leaseback transactions . in addition , our senior credit facility requires us to maintain a maximum leverage ratio of not more than 3.5 to 1.0 , and limits the amount of subsidiary debt . our leverage ratio was 1.74 at december 31 , 2014 . none of these covenants are considered restrictive to our operations and , as of december 31 , 2014 , we were in compliance with all of our debt covenants . we do not have any credit rating triggers that would accelerate the maturity of a material amount of our outstanding debt ; however , our 6.3 % senior notes due 2017 , 3.3 % senior notes due 2022 and 7.0 % senior notes due 2037 ( together , the “ senior notes ” ) contain change in control provisions . if we experience a change of control or publicly announce our intention to effect a change of control and the rating on the senior notes is lowered by standard & poor 's , or s & p , and moody 's investors service , or moody 's , below an investment grade rating within 60 days of such change of control or notice thereof , then we will be required to offer to repurchase the senior notes at a price equal to 101 % of the aggregate principal amount of the senior notes plus accrued and unpaid interest . credit ratings .
| 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. |
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.
```debt covenants . our outstanding indentures and comparable instruments contain customary covenants including , for example , limits on secured debt and sale/leaseback transactions . in addition , our senior credit facility requires us to maintain a maximum leverage ratio of not more than 3.5 to 1.0 , and limits the amount of subsidiary debt . our leverage ratio was 1.74 at december 31 , 2014 . none of these covenants are considered restrictive to our operations and , as of december 31 , 2014 , we were in compliance with all of our debt covenants . we do not have any credit rating triggers that would accelerate the maturity of a material amount of our outstanding debt ; however , our 6.3 % senior notes due 2017 , 3.3 % senior notes due 2022 and 7.0 % senior notes due 2037 ( together , the “ senior notes ” ) contain change in control provisions . if we experience a change of control or publicly announce our intention to effect a change of control and the rating on the senior notes is lowered by standard & poor 's , or s & p , and moody 's investors service , or moody 's , below an investment grade rating within 60 days of such change of control or notice thereof , then we will be required to offer to repurchase the senior notes at a price equal to 101 % of the aggregate principal amount of the senior notes plus accrued and unpaid interest . credit ratings .
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Suspicious Activity Report : verification services revenue is transaction based and is derived primarily from employment , income and social security number verifications . employer services revenues are derived from our provision of certain human resources business process outsourcing services that include both transaction- and subscription-based product offerings . these services assist our clients with the administration of unemployment claims and employer-based tax credits and the handling of certain payroll-related transaction processing . north america personal solutions revenue is both transaction- and subscription-based and is derived from the sale of credit monitoring and identity theft protection products , which we deliver electronically to consumers primarily via the internet and to a lesser extent through mail . 29 geographic information . we currently operate in the following countries : argentina , brazil , canada , chile , costa rica , ecuador , el salvador , honduras , mexico , paraguay , peru , portugal , the republic of ireland , spain , the u.k. , uruguay , and the u.s. our operations in the republic of ireland focus on data handling and customer support activities . we have an investment in the second largest consumer and commercial credit information company in brazil and offer consumer credit services in india and russia through joint ventures . of the countries we operate in , 74 % of our revenue was generated in the u.s. during the twelve months ended december 31 , 2014 . key performance indicators . management focuses on a variety of key indicators to monitor operating and financial performance . these performance indicators include measurements of operating revenue , change in operating revenue , operating income , operating margin , net income , diluted earnings per share , cash provided by operating activities and capital expenditures . key performance indicators for the twelve months ended december 31 , 2014 , 2013 and 2012 , include the following : replace_table_token_6_th business environment and company outlook demand for our services tends to be correlated to general levels of economic activity , to consumer credit activity , to a lesser extent small commercial credit and marketing activity , in addition to our initiatives to expand our product offering and markets served . in 2014 , the united states experienced modest growth in overall economic activity and a year-over-year decline in consumer mortgage activity . in this environment , equifax revenue growth continued to benefit from our product development and market initiatives which more than offset the declines in mortgage related revenues . in 2015 , we continue to expect modest growth in overall economic activity and consumer credit . we expect mortgage market origination activity to grow modestly for the year , largely in the first half , due to continued low interest rates . internationally , the environment continues to be challenging as various countries address their particular political , fiscal and economic issues . in addition , continued weakening in foreign exchange rates will negatively impact growth in revenue and profit when reported in u.s. dollars . offsetting these challenges , we expect that our ongoing investments in new product innovation , business execution , enterprise growth initiatives , technology infrastructure , and continuous process improvement will enable us to deliver long-term average organic revenue growth ranging between 6 % and 8 % with additional growth of 1 % to 2 % derived from strategic acquisitions consistent with our long term business strategy . we also expect to grow earnings per share at a somewhat faster rate than revenue over time as a result of both operating and financial leverage . 30 results of operations — twelve months ended december 31 , 2014 , 2013 and 2012 consolidated financial results operating revenue from continuing operations replace_table_token_7_th revenue for 2014 increased by 6 % compared to 2013. the growth was driven by the acquisition of tdx in the first quarter of 2014 ( “ tdx acquisition ” ) and the impact of strategic growth initiatives across our businesses . the growth was offset by the expected decline in mortgage market activity . the fourth quarter of 2014 benefited from the relative improvement in mortgage activity in the u.s. , which declined in the second half of 2013 through 2014 , but at a lesser rate in fourth quarter of 2014. this expected decline reduced reported growth rates in our usis and workforce solutions business units for 2014 as compared to the same period for 2013. the effect of foreign exchange rates reduced revenue by $ 34.9 million or 1 % in the 2014 compared to 2013. revenue for 2013 increased by 11 % compared to 2012. the growth was driven by the acquisition of csc credit services in the fourth quarter of 2012 ( “ csc credit services acquisition ” ) and the impact of strategic growth initiatives across our businesses . the growth was offset by the expected net decline in mortgage market activity . the first half of 2013 benefited from the impact of increased mortgage refinancing activity in the u.s. , which , as expected , began to decline in the second half of 2013 as compared to the prior year . this expected decline reduced reported growth rates in our usis and workforce solutions business units for the second half of 2013 as compared to the first half of 2013. the effect of foreign exchange rates reduced revenue by $ 20.4 million in the 2013 compared to 2012. operating expenses replace_table_token_8_th cost of services . cost of services increased $ 57.4 million in 2014 compared to the prior year . the increase in cost of services , when compared to 2013 , was due primarily to the acquisition of tdx in the first quarter of 2014 and the 2013 acquisitions . the effect of changes in foreign exchange rates reduced cost of services by $ 7.7 million . 31 cost of services increased $ 27.8 million in 2013 compared to the prior year . story_separator_special_tag reported revenue also increased 11 % in 2013. canada . local currency revenue increased 6 % in 2014 compared to 2013 , primarily due to new customers within marketing and decision solutions and monitoring services as a result of breach business , as well as , growth in information services . local currency fluctuations against the u.s. dollar negatively impacted revenue by $ 11.1 million , or 7 % , in 2014. reported revenue decreased 1 % in 2014. local currency revenue increased 4 % in 2013 compared to 2012 primarily due to new customers within our technology services sector along with growth in information and analytical services . local currency fluctuations against the u.s. dollar negatively impacted revenue by $ 4.7 million , or 3 % , which resulted in 1 % reported revenue growth in 2013 as compared to 2012. international operating margin . operating margin decreased to 22.4 % in 2014 as compared to 29.2 % in 2013. the decline primarily resulted from the recent acquisitions , including increased acquisition-related amortization expense of $ 23.3 million in 2014 , related to the recent acquisitions . the decline in margin was also a result of inflation-driven pressures on margin in argentina . operating margin decreased in 2013 as compared to 2012 as the revenue growth was more than offset by increased investments in new business and strategic initiatives across most geographies in order to support future revenue growth . workforce solutions replace_table_token_15_th verification services . revenue increased 5 % in 2014 compared to prior year , due to strong growth in non-mortgage verticals , which was partially offset by the expected decline in mortgage-related verification revenue in 2014 driven by the anticipated decline in mortgage market activity in 2014. the revenue growth in non-mortgage verticals was primarily a result of increased revenue mostly related to government , pre-employment and auto segments . 37 revenue increased 8 % in 2013 compared to the prior year period . in 2013 , strong growth in non-mortgage verticals was offset by a slight decline in mortgage-related verification revenue due to the expected decline in mortgage market activity in the second half of 2013. the growth in non-mortgage verticals was primarily a result of increased revenue mostly related to government , pre-employment and consumer finance customer segments . employer services . revenue grew 1 % in 2014 , as compared to 2013. revenue growth was due to growth in our transaction-based services business and workforce analytics business . the growth in 2014 was partially offset by lower unemployment claims activity and a decline in revenue related to the non-renewal of the federal work opportunity tax credit program in 2014 . 2013 revenue increased 6 % as compared to 2012. revenue growth due to the renewal of the federal work opportunity tax credit program at the end of 2012 and growth in our transaction-based services business was partially offset by lower overall claims activity in our unemployment cost management business and the expiration of the hire act tax credit . workforce solutions operating margin . operating margin for 2014 increased compared to prior year . margin expansion in 2014 was driven by a higher mix of high margin business compared to 2013 , as well as cost management initiatives executed during the year . margin improvement was also driven by lower acquisition-related amortization due to certain purchased intangible assets related to our talx corporation acquisition in 2007 that became fully amortized during the second quarter of 2013. operating margin for 2013 increased significantly compared to 2012. margin expansion was driven by strong revenue growth in products with a high degree of fixed costs , strategic initiatives implemented to reduce costs , and from lower acquisition-related amortization . north america personal solutions replace_table_token_16_th revenue increased 4 % for 2014 , as compared to prior year , principally due to the acquisition of trustedid in the third quarter of 2013 and subscription revenue in canada . direct to consumer , equifax-branded u.s.-based subscription service revenue was up 1 % in 2014 as a result of higher average revenue per subscriber . this growth was largely offset by declines primarily in transaction revenue , as well as revenue from legacy partners and breach . operating margin increased in 2014 as compared to prior year , as increased salaries , legal expenses and acquisition-related amortization due to the acquisition of trustedid in the third quarter of 2013 was more than offset by lower marketing expenses . revenue increased 12 % in 2013 as compared to the prior year primarily due to increased direct to consumer , equifax-branded u.s.-based subscription service revenue which was up 10 % in 2013 as well as strong growth of services in the canadian market and the acquisition of trustedid completed in the third quarter of 2013. the increase in the direct to consumer , equifax-branded u.s.-based subscription service revenue was driven by new product sales and higher average revenue per subscriber , reflecting additional features in the equifax product offering , as well as growth in subscribers . transaction sales , breach services , and revenue from traditional partners each declined slightly . operating margin increased in 2013 as compared to the prior year due to lower monitoring and credit file expenses resulting from the csc credit services acquisition , partially offset by the increased investment in sales and marketing expenses and the impact of the third quarter 2013 acquisition . 38 general corporate expense replace_table_token_17_th our general corporate expenses are unallocated costs that are incurred at the corporate level and include those expenses impacted by corporate direction , including shared services , administrative , legal , restructuring , and the portion of management incentive compensation determined by total company-wide performance . general corporate expense was comparable to 2013. general corporate expenses decreased by $ 28.5 million in 2013 , compared to 2012 , primarily due to the $ 38.7 million pension settlement recorded in 2012 partially offset by higher salary , benefit
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1,047 | we intend for the following discussion of our financial condition and results of operations to provide information that will assist in understanding our consolidated financial statements , the changes in certain key items in those financial statements from period to period , and the primary factors that accounted for those changes , as well as how certain accounting principles , policies and estimates affect our consolidated financial statements . critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and judgments that affect the reported amounts of assets and liabilities , 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 . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , income taxes and stock-based compensation expense . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . 25 an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of infrared codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . story_separator_special_tag net sales in our business lines in 2014 increased by 6.6 % to $ 507.1 million from $ 475.7 million in 2013 . the increase was primarily due to an increase in remote control sales to consumer electronics companies in asia , an increase in licensing revenue , growth in sales of our embedded chip solutions to smart device manufacturers , and increased market share in european subscription broadcasting . net sales in our consumer lines ( one for all ® retail and private label ) were 9.8 % of net sales in 2014 compared to 10.1 % in 2013 . net sales in our consumer lines in 2014 increased by 2.8 % to $ 55.2 million from $ 53.7 million in 2013 . international retail sales increased 3.8 % from $ 49.6 million in 2013 to $ 51.5 million in 2014 due primarily to increased distribution in southern european countries and latin america as well as increased demand resulting from the 2014 fifa world cup . gross profit . gross profit in 2014 was $ 166.9 million compared to $ 151.5 million in 2013 . gross profit as a percent of sales increased to 29.7 % in 2014 from 28.6 % in 2013 . the gross margin percentage was favorably impacted by an increase in licensing revenue associated with the smart device channel and , to a lesser extent , the strengthening of the british pound compared to the u.s. dollar . partially offsetting these favorable items was an increase in sales to certain large customers that yield a lower gross margin than our company 's average . research and development ( `` r & d `` ) expenses . r & d expenses increased 3.2 % to $ 17.0 million in 2014 from $ 16.4 million in 2013 . this increase was in line with our strategic initiatives and was primarily driven by additional r & d efforts dedicated to developing new product offerings for new and existing product categories . selling , general and administrative ( `` sg & a `` ) expenses . sg & a expenses increased 5.6 % to $ 108.6 million in 2014 from $ 102.9 million in 2013 . this increase was driven primarily by increased incentive compensation costs as a result of our strong financial performance in the current year as well as an increase in external legal expenses related to patent litigation cases . in addition , in an effort to further support the smart device channel , we increased headcount within our global engineering team which resulted in higher payroll costs in 2014 . 29 interest income ( expense ) , net . net interest income was $ 11 thousand in 2014 compared net interest income of $ 51 thousand in 2013 . other income ( expense ) , net . net other expense was $ 0.8 million in 2014 compared to net other expense of $ 3.2 million in 2013 . this decrease was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency rates related to the chinese yuan renminbi , argentinian peso and brazilian real . income tax expense . income tax expense was $ 7.9 million in 2014 compared to $ 6.1 million in 2013 and our effective tax rate was 19.6 % in 2014 compared to 20.9 % in 2013 . the decrease in our effective tax rate was due primarily to the recording of $ 0.4 million of additional tax reserves in the second quarter of 2013 resulting from a tax audit in hong kong for years preceding our 2010 acquisition of enson assets limited . year ended december 31 , 2013 compared to year ended december 31 , 2012 ( `` 2012 `` ) net sales . net sales for 2013 were $ 529.4 million , an increase of 14.3 % compared to $ 463.1 million in 2012. net sales by our business and consumer lines were as follows : replace_table_token_7_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 89.9 % of net sales in 2013 compared to 88.7 % in 2012. net sales in our business lines in 2013 increased by 15.8 % to $ 475.7 million from $ 410.9 million in 2012. the increase was driven primarily by strong demand and increased market share in north american subscription broadcasting and latin american subscription broadcasting , particularly in brazil , as well as growth in net sales to consumer electronic companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 10.1 % of net sales in 2013 compared to 11.3 % in 2012. net sales in our consumer lines in 2013 increased by 2.9 % to $ 53.7 million from $ 52.2 million in 2012. international retail sales increased 3.8 % from $ 47.8 million in 2012 to $ 49.6 million in 2013 due primarily to increased sales in the u.k , australia and latin america . gross profit . gross profit in 2013 was $ 151.5 million compared to $ 133.4 million in 2012. gross profit as a percent of sales remained relatively consistent at 28.6 % in 2013 compared to 28.8 % in 2012. factors that improved our gross margin percentage throughout 2013 include increasing the number of units produced internally versus at third-party manufacturers as well as increased license revenues , primarily in the fourth quarter , relating to the smart device channel . these improvements in our gross margin percentage were offset primarily by the strengthening of the chinese yuan renminbi versus the u.s. dollar . research and development expenses . r & d expenses increased 16.2 % to $ 16.4 million in 2013 from $ 14.2 million in 2012. this increase was in line with our strategic initiatives and was primarily driven by additional r & d efforts dedicated to developing new product offerings for new and existing product categories .
| liquidity and capital resources sources and uses of cash replace_table_token_8_th replace_table_token_9_th net cash provided by operating activities increased $ 32.8 million in 2014 when compared to 2013 , primarily due to a $ 20.8 million increase in cash flows associated with operating assets and liabilities and a $ 9.6 million increase in net income . with respect to operating assets and liabilities , improved vendor management helped drive a $ 17.7 million increase in cash flows associated with accounts payable and accrued expenses . additionally , cash flows associated with inventories improved by $ 7.2 million as our inventory turns increased to 4.1 turns for 2014 , compared to 3.9 turns for 2013 , primarily as a result of more tightly managed inventory levels . net cash provided by operating activities decreased $ 12.9 million in 2013 when compared to 2012 , driven largely by an increase of $ 18.3 million in cash outflows associated with inventory as we increased inventory levels in 2013 to support a higher level of expected sales . we also experienced a $ 5.9 million decrease in cash flows associated with accounts payable due to the timing of payments . these cash outflows were partially offset by a $ 6.4 million increase in net income as well as a $ 4.5 million decrease in cash outflows associated with accounts receivable . with respect to accounts receivable , although net sales increased by 14.3 % in 2013 compared to 2012 , accounts receivable increased by only 4.8 % as days sales outstanding improved from 69 days for the quarter ended december 31 , 2012 to 63 days for the quarter ended december 31 , 2013. net cash used for investing activities during 2014 was $ 18.4 million compared to $ 11.7 million and $ 11.6 million of net cash used during 2013 and 2012 , respectively . during 2014 , 2013 and 2012 , cash used for investing activities consisted primarily of our investments in property , plant , and equipment as well as internally developed patents .
| 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. |
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 sources and uses of cash replace_table_token_8_th replace_table_token_9_th net cash provided by operating activities increased $ 32.8 million in 2014 when compared to 2013 , primarily due to a $ 20.8 million increase in cash flows associated with operating assets and liabilities and a $ 9.6 million increase in net income . with respect to operating assets and liabilities , improved vendor management helped drive a $ 17.7 million increase in cash flows associated with accounts payable and accrued expenses . additionally , cash flows associated with inventories improved by $ 7.2 million as our inventory turns increased to 4.1 turns for 2014 , compared to 3.9 turns for 2013 , primarily as a result of more tightly managed inventory levels . net cash provided by operating activities decreased $ 12.9 million in 2013 when compared to 2012 , driven largely by an increase of $ 18.3 million in cash outflows associated with inventory as we increased inventory levels in 2013 to support a higher level of expected sales . we also experienced a $ 5.9 million decrease in cash flows associated with accounts payable due to the timing of payments . these cash outflows were partially offset by a $ 6.4 million increase in net income as well as a $ 4.5 million decrease in cash outflows associated with accounts receivable . with respect to accounts receivable , although net sales increased by 14.3 % in 2013 compared to 2012 , accounts receivable increased by only 4.8 % as days sales outstanding improved from 69 days for the quarter ended december 31 , 2012 to 63 days for the quarter ended december 31 , 2013. net cash used for investing activities during 2014 was $ 18.4 million compared to $ 11.7 million and $ 11.6 million of net cash used during 2013 and 2012 , respectively . during 2014 , 2013 and 2012 , cash used for investing activities consisted primarily of our investments in property , plant , and equipment as well as internally developed patents .
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Suspicious Activity Report : we intend for the following discussion of our financial condition and results of operations to provide information that will assist in understanding our consolidated financial statements , the changes in certain key items in those financial statements from period to period , and the primary factors that accounted for those changes , as well as how certain accounting principles , policies and estimates affect our consolidated financial statements . critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and judgments that affect the reported amounts of assets and liabilities , 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 . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , income taxes and stock-based compensation expense . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . 25 an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of infrared codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . story_separator_special_tag net sales in our business lines in 2014 increased by 6.6 % to $ 507.1 million from $ 475.7 million in 2013 . the increase was primarily due to an increase in remote control sales to consumer electronics companies in asia , an increase in licensing revenue , growth in sales of our embedded chip solutions to smart device manufacturers , and increased market share in european subscription broadcasting . net sales in our consumer lines ( one for all ® retail and private label ) were 9.8 % of net sales in 2014 compared to 10.1 % in 2013 . net sales in our consumer lines in 2014 increased by 2.8 % to $ 55.2 million from $ 53.7 million in 2013 . international retail sales increased 3.8 % from $ 49.6 million in 2013 to $ 51.5 million in 2014 due primarily to increased distribution in southern european countries and latin america as well as increased demand resulting from the 2014 fifa world cup . gross profit . gross profit in 2014 was $ 166.9 million compared to $ 151.5 million in 2013 . gross profit as a percent of sales increased to 29.7 % in 2014 from 28.6 % in 2013 . the gross margin percentage was favorably impacted by an increase in licensing revenue associated with the smart device channel and , to a lesser extent , the strengthening of the british pound compared to the u.s. dollar . partially offsetting these favorable items was an increase in sales to certain large customers that yield a lower gross margin than our company 's average . research and development ( `` r & d `` ) expenses . r & d expenses increased 3.2 % to $ 17.0 million in 2014 from $ 16.4 million in 2013 . this increase was in line with our strategic initiatives and was primarily driven by additional r & d efforts dedicated to developing new product offerings for new and existing product categories . selling , general and administrative ( `` sg & a `` ) expenses . sg & a expenses increased 5.6 % to $ 108.6 million in 2014 from $ 102.9 million in 2013 . this increase was driven primarily by increased incentive compensation costs as a result of our strong financial performance in the current year as well as an increase in external legal expenses related to patent litigation cases . in addition , in an effort to further support the smart device channel , we increased headcount within our global engineering team which resulted in higher payroll costs in 2014 . 29 interest income ( expense ) , net . net interest income was $ 11 thousand in 2014 compared net interest income of $ 51 thousand in 2013 . other income ( expense ) , net . net other expense was $ 0.8 million in 2014 compared to net other expense of $ 3.2 million in 2013 . this decrease was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency rates related to the chinese yuan renminbi , argentinian peso and brazilian real . income tax expense . income tax expense was $ 7.9 million in 2014 compared to $ 6.1 million in 2013 and our effective tax rate was 19.6 % in 2014 compared to 20.9 % in 2013 . the decrease in our effective tax rate was due primarily to the recording of $ 0.4 million of additional tax reserves in the second quarter of 2013 resulting from a tax audit in hong kong for years preceding our 2010 acquisition of enson assets limited . year ended december 31 , 2013 compared to year ended december 31 , 2012 ( `` 2012 `` ) net sales . net sales for 2013 were $ 529.4 million , an increase of 14.3 % compared to $ 463.1 million in 2012. net sales by our business and consumer lines were as follows : replace_table_token_7_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 89.9 % of net sales in 2013 compared to 88.7 % in 2012. net sales in our business lines in 2013 increased by 15.8 % to $ 475.7 million from $ 410.9 million in 2012. the increase was driven primarily by strong demand and increased market share in north american subscription broadcasting and latin american subscription broadcasting , particularly in brazil , as well as growth in net sales to consumer electronic companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 10.1 % of net sales in 2013 compared to 11.3 % in 2012. net sales in our consumer lines in 2013 increased by 2.9 % to $ 53.7 million from $ 52.2 million in 2012. international retail sales increased 3.8 % from $ 47.8 million in 2012 to $ 49.6 million in 2013 due primarily to increased sales in the u.k , australia and latin america . gross profit . gross profit in 2013 was $ 151.5 million compared to $ 133.4 million in 2012. gross profit as a percent of sales remained relatively consistent at 28.6 % in 2013 compared to 28.8 % in 2012. factors that improved our gross margin percentage throughout 2013 include increasing the number of units produced internally versus at third-party manufacturers as well as increased license revenues , primarily in the fourth quarter , relating to the smart device channel . these improvements in our gross margin percentage were offset primarily by the strengthening of the chinese yuan renminbi versus the u.s. dollar . research and development expenses . r & d expenses increased 16.2 % to $ 16.4 million in 2013 from $ 14.2 million in 2012. this increase was in line with our strategic initiatives and was primarily driven by additional r & d efforts dedicated to developing new product offerings for new and existing product categories .
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1,048 | in the 52-week period ended december 26 , 2020 , the company recorded covid-19 related pre-tax reductions in net revenue and increases in other costs that total $ 16.0 million , of which $ 1.8 million was recorded in the fourth quarter . the total amount consists of a $ 3.3 million reduction in net revenue for estimated keg returns from distributors and retailers and $ 12.7 million of other covid-19 related direct costs , of which $ 8.2 million are recorded in cost of goods sold and $ 4.5 million are recorded in operating expenses . in addition to these direct financial impacts , covid-19 related safety measures resulted in a reduction of brewery productivity . this has shifted more volume to third-party breweries , which increased production costs and negatively impacted gross margins . the company will continue to assess and manage this situation and will provide a further update in each quarterly earnings release , to the extent that the effects of the covid-19 pandemic are then known more clearly . outlook year-to-date depletions reported to the company for the 6 weeks ended february 6 , 2021 are estimated by the company to have increased approximately 53 % from the comparable weeks in 2020. the company is targeting non-gaap earnings per diluted share for 2021 of between $ 20.00 and $ 24.00 , excluding the impact of asu 2016-09 , stock compensation ( topic 718 ) , improvements to employee share-based payment accounting , but actual results could vary significantly from this target . the company is forecasting 2021 depletions and shipments percentage increases of between 35 % and 45 % . the company is targeting national price increases of between 1 % and 2 % . full-year 2021 gross margins are currently expected to be between 45 % and 47 % , a decrease from the previously communicated estimate of between 46 % and 48 % . the company intends to increase advertising , promotional and selling expenses by between $ 120 million and $ 140 million for the full year 2021 , a decrease from the previously communicated estimate of between $ 130 million and $ 150 million , which does not include any increases in freight costs for the shipment of products to its distributors . the company intends to increase its investment in its brands in 2021 commensurate with the 29 opportunities for growth that it sees , but there is no guarantee that such increased investments will result in increased volumes . the company estimates a full-year 202 1 non-gaap effective tax rate of approximately 2 6 .5 % , excluding the impact of asu 2016-09. this effective tax rate estimate also , excludes the potential impact of changes to current federal income tax laws and regulations that could occur later in 2021. non-gaap earnings per diluted share and non-gaap effective tax rate are not defined terms under u.s. generally accepted accounting principles ( “ gaap ” ) . these non-gaap measures should not be considered in isolation or as a substitute for diluted earnings per share and effective tax rate data prepared in accordance with gaap , and may not be comparable to calculations of similarly titled measures by other companies . management believes these non-gaap measures provide meaningful and useful information to investors and analysts regarding our outlook and facilitate period to period comparisons of our forecasted financial performance . non-gaap earnings per diluted share and non-gaap effective tax rate exclude the potential impact of asu 2016-09 , which could be significant and will depend largely upon unpredictable future events outside the company 's control , including the timing and value realized upon exercise of stock options versus the fair value of those options when granted . therefore , because of the uncertainty and variability of the impact of asu 2016-09 , the company is unable to provide , without unreasonable effort , a reconciliation of these non-gaap measures on a forward-looking basis . the company is continuing to evaluate 2021 capital expenditures . its current estimates are between $ 300 million and $ 400 million , consisting mostly of continued investments in capacity and efficiency improvements at the company 's breweries . the actual total amount spent on 2021 capital expenditures may well be different from these estimates . based on information currently available , the company believes that its capacity requirements for 2021 can be covered by its company-owned breweries and contracted capacity at third-party brewers . results of operations year ended december 26 , 2020 compared to year ended december 28 , 2019 replace_table_token_4_th net revenue . net revenue increased by $ 486.6 million , or 38.9 % , to $ 1,736.4 million for the year ended december 26 , 2020 , as compared to $ 1,249.8 million for the year ended december 28 , 2019 , due primarily to increased shipments . volume . total shipment volume of 7,368,000 barrels for the year ended december 26 , 2020 increased by 38.8 % over 2019 levels of 5,307,000 barrels , due primarily to increases in shipments of truly hard seltzer and twisted tea and the addition of the dogfish head brands , partially offset by decreases in its samuel adamas and angry orchard brands . 30 depletions , or sales by distributors to retailers , of the company 's products for the year ended december 28 , 2019 increased by approximately 3 7 % compared to the prior year , primarily due to increases in depletions of truly hard seltzer and twisted tea brands and the addition of the dogfish head brands , partially offset by decreases in its samuel adams and angry orchard brands . net revenue per barrel . story_separator_special_tag historically , the cost of actual stale beer returns has been in line with established reserves , however , the cost could differ materially from the estimated reserve which would impact revenue . as of december 26 , 2020 and december 28 , 2019 , the stale beer reserve was $ 3.1 million and $ 1.8 million , respectively . customer programs and incentives are a common practice in the alcohol beverage industry . amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising , promotional and selling expenses , based on the nature of the expenditure . customer incentives and other payments made to distributors are primarily based upon performance of certain marketing and advertising activities . depending on applicable state laws and regulations , these activities promoting the company 's products may include , but are not limited to point-of-sale and merchandise placement , samples , product displays , promotional programs at retail locations and meals , travel and entertainment . amounts paid to customers in connection with these programs that were recorded as reductions to net revenue or as advertising , promotional and selling expenses totaled $ 85.0 million , $ 75.2 million and $ 55.5 million in fiscal year 2020 , 2019 and 2018 , respectively . estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred . customer promotional discount programs are entered into with distributors for certain periods of time . amounts paid to distributors in connection with these programs in fiscal years 2020 , 2019 and 2018 were $ 59.3 million , $ 43.9 million and $ 34.5 million , respectively . the reimbursements for discounts to distributors are recorded as reductions to net revenue . the agreed-upon discount rates are applied to certain distributors ' sales to retailers , based on volume metrics , in order to determine the total discounted amount . the computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded . actual promotional discounts owed and paid have historically been in line with allowances recorded by the company , however , the amounts could differ from the estimated allowance . customer incentives and other payments are made primarily to distributors based upon performance of certain marketing and advertising activities . depending on applicable state laws and regulations , these activities promoting the company 's products may include , but are not limited to point-of-sale and merchandise placement , samples , product displays , promotional programs at retail locations and meals , travel and entertainment . amounts paid to customers in connection with these programs in fiscal years 2020 , 2019 and 2018 were $ 25.7 million , $ 31.2 million and $ 21.0 million , respectively . in fiscal 2020 , 2019 and 2018 , the company recorded certain of these costs in the total amount of $ 23.1 million , $ 21.6 million , and $ 13.9 million , respectively , as reductions to net revenue . costs recognized in net revenues include , but are not limited to , promotional discounts , sales incentives and certain other promotional activities . costs recognized in advertising , promotional and selling expenses include point of sale materials , samples and media advertising expenditures in local markets . these costs are recorded as incurred , generally when invoices are received ; however certain estimates are required at period end . estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred . in connection with its preparation of financial statements and other financial reporting , management is required to make certain estimates and assumptions regarding the amount , timing and classification of expenditures resulting from these activities . actual expenditures incurred could differ from management 's estimates and assumptions . 35 stock-based compensation the company accounts for share-based awards in accordance with asc topic 718 , compensation – stock compensation ( “ asc 718 ” ) , which generally requires recognition of share-based compensation costs in financial statements based on fair value . compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award ( the requisite service period ) . the amount of compensation cost recognized in the consolidated statements of comprehensive income is based on the awards ultimately expected to vest , and therefore , reduced for estimated forfeitures . stock-based compensation was $ 15.3 million , $ 12.3 million and $ 10.0 million in fiscal years 2020 , 2019 and 2018 , respectively . as permitted by asc 718 , the company elected to use a lattice model , such as the trinomial option-pricing model , to estimate the fair values of stock options . all option-pricing models require the input of subjective assumptions . these assumptions include the estimated volatility of the company 's common stock price over the expected term , the expected dividend rate , the estimated post-vesting forfeiture rate , the risk-free interest rate and expected exercise behavior . see note n of the notes to consolidated financial statements for further discussion of the application of the option-pricing models . in addition , an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge . periodically , the company grants performance-based stock options , related to which it only recognizes compensation expense if it is probable that performance targets will be met . consequently , at the end of each reporting period , the company estimates whether it is probable that performance targets will be met . changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income . business environment the alcoholic beverage industry
| liquidity and capital resources cash increased to $ 163.3 million as of december 26 , 2020 from $ 36.7 million as of december 28 , 2019 , reflecting cash provided by operating activities and proceeds from exercise of stock options and sale of investment shares , partially offset by purchases of property , plant and equipment . cash provided by or used in operating activities consists of net income , adjusted for certain non-cash items , such as depreciation and amortization , stock-based compensation expense and related excess tax benefit , other non-cash items included in operating results , and changes in operating assets and liabilities , such as accounts receivable , inventory , accounts payable and accrued expenses . cash provided by operating activities increased from $ 178.2 million in 2019 to $ 253.3 million in 2020 principally as a result of increases in shipments and operating income , partially offset by higher investments in working capital , particularly higher inventory and third party brewery prepayments due under production agreements to support increased demand . cash used in investing activities decreased from $ 258.8 million in 2019 to $ 139.1 million in 2020 , primarily as a result of the investment in dogfish head in fiscal 2019. investing activities in 2020 primarily consisted of capital investments made mostly in the company 's breweries to increase capacity , drive efficiencies and cost reductions , and support product innovation . cash provided by financing activities was $ 12.3 million during 2020 , as compared to $ 8.9 million provided by financing activities during 2019. the $ 3.4 million increase in cash provided by financing activities in 2020 from 2019 is primarily due to higher proceeds from exercise of stock options and sale of investment shares .
| 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. |
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 cash increased to $ 163.3 million as of december 26 , 2020 from $ 36.7 million as of december 28 , 2019 , reflecting cash provided by operating activities and proceeds from exercise of stock options and sale of investment shares , partially offset by purchases of property , plant and equipment . cash provided by or used in operating activities consists of net income , adjusted for certain non-cash items , such as depreciation and amortization , stock-based compensation expense and related excess tax benefit , other non-cash items included in operating results , and changes in operating assets and liabilities , such as accounts receivable , inventory , accounts payable and accrued expenses . cash provided by operating activities increased from $ 178.2 million in 2019 to $ 253.3 million in 2020 principally as a result of increases in shipments and operating income , partially offset by higher investments in working capital , particularly higher inventory and third party brewery prepayments due under production agreements to support increased demand . cash used in investing activities decreased from $ 258.8 million in 2019 to $ 139.1 million in 2020 , primarily as a result of the investment in dogfish head in fiscal 2019. investing activities in 2020 primarily consisted of capital investments made mostly in the company 's breweries to increase capacity , drive efficiencies and cost reductions , and support product innovation . cash provided by financing activities was $ 12.3 million during 2020 , as compared to $ 8.9 million provided by financing activities during 2019. the $ 3.4 million increase in cash provided by financing activities in 2020 from 2019 is primarily due to higher proceeds from exercise of stock options and sale of investment shares .
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Suspicious Activity Report : in the 52-week period ended december 26 , 2020 , the company recorded covid-19 related pre-tax reductions in net revenue and increases in other costs that total $ 16.0 million , of which $ 1.8 million was recorded in the fourth quarter . the total amount consists of a $ 3.3 million reduction in net revenue for estimated keg returns from distributors and retailers and $ 12.7 million of other covid-19 related direct costs , of which $ 8.2 million are recorded in cost of goods sold and $ 4.5 million are recorded in operating expenses . in addition to these direct financial impacts , covid-19 related safety measures resulted in a reduction of brewery productivity . this has shifted more volume to third-party breweries , which increased production costs and negatively impacted gross margins . the company will continue to assess and manage this situation and will provide a further update in each quarterly earnings release , to the extent that the effects of the covid-19 pandemic are then known more clearly . outlook year-to-date depletions reported to the company for the 6 weeks ended february 6 , 2021 are estimated by the company to have increased approximately 53 % from the comparable weeks in 2020. the company is targeting non-gaap earnings per diluted share for 2021 of between $ 20.00 and $ 24.00 , excluding the impact of asu 2016-09 , stock compensation ( topic 718 ) , improvements to employee share-based payment accounting , but actual results could vary significantly from this target . the company is forecasting 2021 depletions and shipments percentage increases of between 35 % and 45 % . the company is targeting national price increases of between 1 % and 2 % . full-year 2021 gross margins are currently expected to be between 45 % and 47 % , a decrease from the previously communicated estimate of between 46 % and 48 % . the company intends to increase advertising , promotional and selling expenses by between $ 120 million and $ 140 million for the full year 2021 , a decrease from the previously communicated estimate of between $ 130 million and $ 150 million , which does not include any increases in freight costs for the shipment of products to its distributors . the company intends to increase its investment in its brands in 2021 commensurate with the 29 opportunities for growth that it sees , but there is no guarantee that such increased investments will result in increased volumes . the company estimates a full-year 202 1 non-gaap effective tax rate of approximately 2 6 .5 % , excluding the impact of asu 2016-09. this effective tax rate estimate also , excludes the potential impact of changes to current federal income tax laws and regulations that could occur later in 2021. non-gaap earnings per diluted share and non-gaap effective tax rate are not defined terms under u.s. generally accepted accounting principles ( “ gaap ” ) . these non-gaap measures should not be considered in isolation or as a substitute for diluted earnings per share and effective tax rate data prepared in accordance with gaap , and may not be comparable to calculations of similarly titled measures by other companies . management believes these non-gaap measures provide meaningful and useful information to investors and analysts regarding our outlook and facilitate period to period comparisons of our forecasted financial performance . non-gaap earnings per diluted share and non-gaap effective tax rate exclude the potential impact of asu 2016-09 , which could be significant and will depend largely upon unpredictable future events outside the company 's control , including the timing and value realized upon exercise of stock options versus the fair value of those options when granted . therefore , because of the uncertainty and variability of the impact of asu 2016-09 , the company is unable to provide , without unreasonable effort , a reconciliation of these non-gaap measures on a forward-looking basis . the company is continuing to evaluate 2021 capital expenditures . its current estimates are between $ 300 million and $ 400 million , consisting mostly of continued investments in capacity and efficiency improvements at the company 's breweries . the actual total amount spent on 2021 capital expenditures may well be different from these estimates . based on information currently available , the company believes that its capacity requirements for 2021 can be covered by its company-owned breweries and contracted capacity at third-party brewers . results of operations year ended december 26 , 2020 compared to year ended december 28 , 2019 replace_table_token_4_th net revenue . net revenue increased by $ 486.6 million , or 38.9 % , to $ 1,736.4 million for the year ended december 26 , 2020 , as compared to $ 1,249.8 million for the year ended december 28 , 2019 , due primarily to increased shipments . volume . total shipment volume of 7,368,000 barrels for the year ended december 26 , 2020 increased by 38.8 % over 2019 levels of 5,307,000 barrels , due primarily to increases in shipments of truly hard seltzer and twisted tea and the addition of the dogfish head brands , partially offset by decreases in its samuel adamas and angry orchard brands . 30 depletions , or sales by distributors to retailers , of the company 's products for the year ended december 28 , 2019 increased by approximately 3 7 % compared to the prior year , primarily due to increases in depletions of truly hard seltzer and twisted tea brands and the addition of the dogfish head brands , partially offset by decreases in its samuel adams and angry orchard brands . net revenue per barrel . story_separator_special_tag historically , the cost of actual stale beer returns has been in line with established reserves , however , the cost could differ materially from the estimated reserve which would impact revenue . as of december 26 , 2020 and december 28 , 2019 , the stale beer reserve was $ 3.1 million and $ 1.8 million , respectively . customer programs and incentives are a common practice in the alcohol beverage industry . amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising , promotional and selling expenses , based on the nature of the expenditure . customer incentives and other payments made to distributors are primarily based upon performance of certain marketing and advertising activities . depending on applicable state laws and regulations , these activities promoting the company 's products may include , but are not limited to point-of-sale and merchandise placement , samples , product displays , promotional programs at retail locations and meals , travel and entertainment . amounts paid to customers in connection with these programs that were recorded as reductions to net revenue or as advertising , promotional and selling expenses totaled $ 85.0 million , $ 75.2 million and $ 55.5 million in fiscal year 2020 , 2019 and 2018 , respectively . estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred . customer promotional discount programs are entered into with distributors for certain periods of time . amounts paid to distributors in connection with these programs in fiscal years 2020 , 2019 and 2018 were $ 59.3 million , $ 43.9 million and $ 34.5 million , respectively . the reimbursements for discounts to distributors are recorded as reductions to net revenue . the agreed-upon discount rates are applied to certain distributors ' sales to retailers , based on volume metrics , in order to determine the total discounted amount . the computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded . actual promotional discounts owed and paid have historically been in line with allowances recorded by the company , however , the amounts could differ from the estimated allowance . customer incentives and other payments are made primarily to distributors based upon performance of certain marketing and advertising activities . depending on applicable state laws and regulations , these activities promoting the company 's products may include , but are not limited to point-of-sale and merchandise placement , samples , product displays , promotional programs at retail locations and meals , travel and entertainment . amounts paid to customers in connection with these programs in fiscal years 2020 , 2019 and 2018 were $ 25.7 million , $ 31.2 million and $ 21.0 million , respectively . in fiscal 2020 , 2019 and 2018 , the company recorded certain of these costs in the total amount of $ 23.1 million , $ 21.6 million , and $ 13.9 million , respectively , as reductions to net revenue . costs recognized in net revenues include , but are not limited to , promotional discounts , sales incentives and certain other promotional activities . costs recognized in advertising , promotional and selling expenses include point of sale materials , samples and media advertising expenditures in local markets . these costs are recorded as incurred , generally when invoices are received ; however certain estimates are required at period end . estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred . in connection with its preparation of financial statements and other financial reporting , management is required to make certain estimates and assumptions regarding the amount , timing and classification of expenditures resulting from these activities . actual expenditures incurred could differ from management 's estimates and assumptions . 35 stock-based compensation the company accounts for share-based awards in accordance with asc topic 718 , compensation – stock compensation ( “ asc 718 ” ) , which generally requires recognition of share-based compensation costs in financial statements based on fair value . compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award ( the requisite service period ) . the amount of compensation cost recognized in the consolidated statements of comprehensive income is based on the awards ultimately expected to vest , and therefore , reduced for estimated forfeitures . stock-based compensation was $ 15.3 million , $ 12.3 million and $ 10.0 million in fiscal years 2020 , 2019 and 2018 , respectively . as permitted by asc 718 , the company elected to use a lattice model , such as the trinomial option-pricing model , to estimate the fair values of stock options . all option-pricing models require the input of subjective assumptions . these assumptions include the estimated volatility of the company 's common stock price over the expected term , the expected dividend rate , the estimated post-vesting forfeiture rate , the risk-free interest rate and expected exercise behavior . see note n of the notes to consolidated financial statements for further discussion of the application of the option-pricing models . in addition , an estimated pre-vesting forfeiture rate is applied in the recognition of the compensation charge . periodically , the company grants performance-based stock options , related to which it only recognizes compensation expense if it is probable that performance targets will be met . consequently , at the end of each reporting period , the company estimates whether it is probable that performance targets will be met . changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of comprehensive income . business environment the alcoholic beverage industry
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1,049 | our license agreements also require licensees to support the brands by either paying or spending contractually guaranteed minimum amounts for the marketing and advertising of the respective licensed brands . as of march 7 , 2017 we had contractual rights to receive an aggregate of $ 462.0 million in minimum royalty and marketing and advertising revenue from our licensees through the balance of the current terms of such licenses , excluding any renewals . items affecting comparability of periods presented we were formed on june 5 , 2015 , for the purpose of effecting the merger of singer merger sub , inc. with and into sqbg , inc. ( previously known as sequential brands group , inc. ) ( sec file no . 001-36082 ) ( “ old sequential ” ) and the merger of madeline merger sub , inc. with and into mslo ( sec file no . 001-15395 ) , with old sequential and mslo each surviving the merger as wholly owned subsidiaries of us ( the “ mergers ” ) . prior to the mergers , we did not conduct any activities other than those incidental to its formation and the matters contemplated in the agreement and plan of merger , dated as of june 22 , 2015 , as amended , by and among mslo , old sequential , us , singer merger sub , inc. , and madeline merger sub , inc. ( the “ merger agreement ” ) . on december 4 , 2015 , pursuant to the merger agreement , old sequential and mslo completed the strategic combination of their respective businesses and became wholly owned subsidiaries of the company . old sequential was the accounting acquirer in the mergers ; therefore , the historical consolidated financial statements for old sequential for period prior to the mergers are considered to be the historical financial statements of sequential brands group , inc. and thus , our consolidated financial statements for fiscal 2015 reflect old sequential 's consolidated financial statements for period from january 1 , 2015 through december 4 , 2015 and for fiscal year 2014 , and sequential brands group inc. 's thereafter . 23 recently issued accounting standards asu no . 2017-04 , “ simplifying the test for goodwill impairment ” in january 2017 , the fasb issued asu no . 2017-04 , “ simplifying the test for goodwill impairment ” ( “ asu 2017-04 ” ) . asu 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test . as a result , under asu 2017-04 , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value ; however , the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit . asu 2017-04 is effective prospectively for annual and interim periods beginning on or after december 15 , 2019 , and early adoption is permitted on testing dates after january 1 , 2017. we are currently evaluating the impact the adoption of asu 2017-04 will have on our consolidated financial statements . asu no . 2017-01 , “ fasb clarifies the definition of a business ” in january 2017 , the fasb issued asu no . 2017-01 , “ fasb clarifies the definition of a business ” ( “ asu 2017-01 ” ) . asu 2017-01 clarifies the definition of a business in asc 805. the amendments in asu 2017-01 are intended to make application of the guidance more consistent and cost-efficient . asu 2017-01 is effective for annual and interim periods beginning after december 15 , 2017 , with early adoption permitted for transactions that occurred before the issuance date of effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance . we do not expect the adoption of asu 2017-01 to have a material impact on our consolidated financial statements . asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” in november 2016 , the fasb issued asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” ( “ asu 2016-18 ” ) . asu 2016-18 amends asc 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows . upon adoption of asu 2016-18 , an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents . asu 2016-18 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . we do not expect the adoption of asu 2016-18 to have a material impact on our consolidated financial statements . asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” in august 2016 , the fasb issued asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” ( “ asu 2016-15 ” ) . asu 2016-15 amends the guidance in asc 230 on the classification of certain cash receipts and payments in the statement of cash flows . the primary purpose of asu 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic . asu 2016-15 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . story_separator_special_tag indefinite-lived intangible assets are not amortized , but instead are subject to impairment evaluation . the carrying value of intangible assets and other finite-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . indefinite-lived intangible assets are tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that indicate that the carrying amount of the indefinite-lived intangible asset may not be recoverable . when conducting our impairment assessment , we initially perform a qualitative evaluation of whether it is more likely than not that the asset is impaired . if it is determined by a qualitative evaluation that it is more likely than not that the asset is impaired , we then test the asset for recoverability . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its future undiscounted net cash flows . if the carrying amount of such assets are considered to be impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the recoverability of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . during the year ended december 31 , 2016 , we changed our annual impairment testing date from december 31 to october 1. we believe this new date is preferable because it allows for more timely completion of the annual impairment test prior to the end of our annual financial reporting period . this change in accounting principle does not delay , accelerate or avoid an impairment charge . we have determined that it would be impracticable to objectively determine projected cash flow and related valuation estimates that would have been used as of each october 1 of prior reporting periods without the use of hindsight . as such , we applied the change in annual impairment testing date prospectively beginning october 1 , 2016 . 27 income taxes . current income taxes are based on the respective periods ' taxable income for federal , foreign and state income tax reporting purposes . deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities , using statutory tax rates in effect for the year in which the differences are expected to reverse . in accordance with asu no . 2015-17 “ balance sheet classification of deferred taxes ” , all deferred income taxes are reported and classified as non-current . a valuation allowance is required if , based on the weight of available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . the company applies the fasb guidance on accounting for uncertainty in income taxes . the guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise 's financial statements in accordance with other authoritative gaap and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . the guidance also addresses derecognition , classification , interest and penalties , accounting in interim periods , disclosure and transition . during the year ended december 31 , 2016 , the company released its $ 0.3 million reserve of certain unrecognized tax benefits along with $ 0.3 million of accrued interest and penalties through current income tax expense in accordance with asc 740 , income taxes ( “ asc 740 ” ) . at december 31 , 2015 , the company had $ 0.6 million of certain unrecognized tax benefits , included as a component of long-term liabilities held for disposition from discontinued operations of wholesale operations subsidiary . interest and penalties related to uncertain tax positions , if any , are recorded in income tax expense . tax years that remain open for assessment for federal and state tax purposes include the years ended december 31 , 2013 through december 31 , 2016. stock-based compensation . we account for stock-based compensation under asc topic 718 , compensation - stock compensation , which requires companies to measure and recognize compensation expense for all stock-based payments at fair value . compensation cost for restricted stock is measured using the quoted market price of our common stock at the date the common stock is granted . for restricted stock and restricted stock units , for which restrictions lapse with the passage of time ( “ time-based restricted stock ” ) , compensation cost is recognized on a straight-line basis over the period between the issue date and the date that restrictions lapse . time-based restricted stock is included in total shares of common stock outstanding upon the lapse of applicable restrictions . for restricted stock , for which restrictions are based on performance measures ( “ performance stock units ” or “ psu 's ” ) , restrictions lapse when those performance measures have been deemed achieved . compensation cost for psus is recognized on a straight-line basis during the period from the date on which the likelihood of the psus being earned is deemed probable and ( x ) the end of the fiscal year during which such psus are granted or ( y ) the date on which awards of such psus may be approved by the compensation committee of the company 's board of directors ( the “ compensation committee ” ) on a discretionary basis , as applicable . psus are included in total shares of common stock outstanding upon the lapse of applicable restrictions . psus are included in total diluted shares of common stock outstanding when the performance measures have been deemed achieved but the psus have not yet been issued . compensation cost
| liquidity as of december 31 , 2016 , we had cash on hand , including restricted cash , of $ 20.7 million and a net working capital balance ( defined below ) of $ 26.8 million . additionally , we had outstanding debt obligations under our loan agreements of $ 663.0 million excluding $ 18.0 million of deferred financing fees . as of december 31 , 2015 , we had cash on hand of $ 41.6 million and a net working capital balance of $ 49.6 million . additionally , we had outstanding debt obligations under our loan agreements of $ 550.0 million excluding $ 7.9 million of deferred financing fees . net working capital is defined as current assets minus current liabilities , excluding restricted cash and discontinued operations . we believe that cash from continuing operations and our currently available cash ( including available borrowings under our existing financing arrangements and available-for-sale securities ) will be sufficient to satisfy our anticipated working capital requirements for the foreseeable future . overall , we do not expect any negative effects to our funding sources that would have a material effect on our liquidity . we intend to continue financing future brand acquisitions through a combination of cash from operations , bank financing and the issuance of additional equity and or debt securities . see note 9 to our consolidated financial statements for a description of certain financing transactions consummated by us . there are no material capital expenditure commitments as of december 31 , 2016 .
| 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. |
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 as of december 31 , 2016 , we had cash on hand , including restricted cash , of $ 20.7 million and a net working capital balance ( defined below ) of $ 26.8 million . additionally , we had outstanding debt obligations under our loan agreements of $ 663.0 million excluding $ 18.0 million of deferred financing fees . as of december 31 , 2015 , we had cash on hand of $ 41.6 million and a net working capital balance of $ 49.6 million . additionally , we had outstanding debt obligations under our loan agreements of $ 550.0 million excluding $ 7.9 million of deferred financing fees . net working capital is defined as current assets minus current liabilities , excluding restricted cash and discontinued operations . we believe that cash from continuing operations and our currently available cash ( including available borrowings under our existing financing arrangements and available-for-sale securities ) will be sufficient to satisfy our anticipated working capital requirements for the foreseeable future . overall , we do not expect any negative effects to our funding sources that would have a material effect on our liquidity . we intend to continue financing future brand acquisitions through a combination of cash from operations , bank financing and the issuance of additional equity and or debt securities . see note 9 to our consolidated financial statements for a description of certain financing transactions consummated by us . there are no material capital expenditure commitments as of december 31 , 2016 .
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Suspicious Activity Report : our license agreements also require licensees to support the brands by either paying or spending contractually guaranteed minimum amounts for the marketing and advertising of the respective licensed brands . as of march 7 , 2017 we had contractual rights to receive an aggregate of $ 462.0 million in minimum royalty and marketing and advertising revenue from our licensees through the balance of the current terms of such licenses , excluding any renewals . items affecting comparability of periods presented we were formed on june 5 , 2015 , for the purpose of effecting the merger of singer merger sub , inc. with and into sqbg , inc. ( previously known as sequential brands group , inc. ) ( sec file no . 001-36082 ) ( “ old sequential ” ) and the merger of madeline merger sub , inc. with and into mslo ( sec file no . 001-15395 ) , with old sequential and mslo each surviving the merger as wholly owned subsidiaries of us ( the “ mergers ” ) . prior to the mergers , we did not conduct any activities other than those incidental to its formation and the matters contemplated in the agreement and plan of merger , dated as of june 22 , 2015 , as amended , by and among mslo , old sequential , us , singer merger sub , inc. , and madeline merger sub , inc. ( the “ merger agreement ” ) . on december 4 , 2015 , pursuant to the merger agreement , old sequential and mslo completed the strategic combination of their respective businesses and became wholly owned subsidiaries of the company . old sequential was the accounting acquirer in the mergers ; therefore , the historical consolidated financial statements for old sequential for period prior to the mergers are considered to be the historical financial statements of sequential brands group , inc. and thus , our consolidated financial statements for fiscal 2015 reflect old sequential 's consolidated financial statements for period from january 1 , 2015 through december 4 , 2015 and for fiscal year 2014 , and sequential brands group inc. 's thereafter . 23 recently issued accounting standards asu no . 2017-04 , “ simplifying the test for goodwill impairment ” in january 2017 , the fasb issued asu no . 2017-04 , “ simplifying the test for goodwill impairment ” ( “ asu 2017-04 ” ) . asu 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test . as a result , under asu 2017-04 , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value ; however , the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit . asu 2017-04 is effective prospectively for annual and interim periods beginning on or after december 15 , 2019 , and early adoption is permitted on testing dates after january 1 , 2017. we are currently evaluating the impact the adoption of asu 2017-04 will have on our consolidated financial statements . asu no . 2017-01 , “ fasb clarifies the definition of a business ” in january 2017 , the fasb issued asu no . 2017-01 , “ fasb clarifies the definition of a business ” ( “ asu 2017-01 ” ) . asu 2017-01 clarifies the definition of a business in asc 805. the amendments in asu 2017-01 are intended to make application of the guidance more consistent and cost-efficient . asu 2017-01 is effective for annual and interim periods beginning after december 15 , 2017 , with early adoption permitted for transactions that occurred before the issuance date of effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance . we do not expect the adoption of asu 2017-01 to have a material impact on our consolidated financial statements . asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” in november 2016 , the fasb issued asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” ( “ asu 2016-18 ” ) . asu 2016-18 amends asc 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows . upon adoption of asu 2016-18 , an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents . asu 2016-18 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . we do not expect the adoption of asu 2016-18 to have a material impact on our consolidated financial statements . asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” in august 2016 , the fasb issued asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” ( “ asu 2016-15 ” ) . asu 2016-15 amends the guidance in asc 230 on the classification of certain cash receipts and payments in the statement of cash flows . the primary purpose of asu 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic . asu 2016-15 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . story_separator_special_tag indefinite-lived intangible assets are not amortized , but instead are subject to impairment evaluation . the carrying value of intangible assets and other finite-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . indefinite-lived intangible assets are tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that indicate that the carrying amount of the indefinite-lived intangible asset may not be recoverable . when conducting our impairment assessment , we initially perform a qualitative evaluation of whether it is more likely than not that the asset is impaired . if it is determined by a qualitative evaluation that it is more likely than not that the asset is impaired , we then test the asset for recoverability . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its future undiscounted net cash flows . if the carrying amount of such assets are considered to be impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the recoverability of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . during the year ended december 31 , 2016 , we changed our annual impairment testing date from december 31 to october 1. we believe this new date is preferable because it allows for more timely completion of the annual impairment test prior to the end of our annual financial reporting period . this change in accounting principle does not delay , accelerate or avoid an impairment charge . we have determined that it would be impracticable to objectively determine projected cash flow and related valuation estimates that would have been used as of each october 1 of prior reporting periods without the use of hindsight . as such , we applied the change in annual impairment testing date prospectively beginning october 1 , 2016 . 27 income taxes . current income taxes are based on the respective periods ' taxable income for federal , foreign and state income tax reporting purposes . deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities , using statutory tax rates in effect for the year in which the differences are expected to reverse . in accordance with asu no . 2015-17 “ balance sheet classification of deferred taxes ” , all deferred income taxes are reported and classified as non-current . a valuation allowance is required if , based on the weight of available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . the company applies the fasb guidance on accounting for uncertainty in income taxes . the guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise 's financial statements in accordance with other authoritative gaap and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . the guidance also addresses derecognition , classification , interest and penalties , accounting in interim periods , disclosure and transition . during the year ended december 31 , 2016 , the company released its $ 0.3 million reserve of certain unrecognized tax benefits along with $ 0.3 million of accrued interest and penalties through current income tax expense in accordance with asc 740 , income taxes ( “ asc 740 ” ) . at december 31 , 2015 , the company had $ 0.6 million of certain unrecognized tax benefits , included as a component of long-term liabilities held for disposition from discontinued operations of wholesale operations subsidiary . interest and penalties related to uncertain tax positions , if any , are recorded in income tax expense . tax years that remain open for assessment for federal and state tax purposes include the years ended december 31 , 2013 through december 31 , 2016. stock-based compensation . we account for stock-based compensation under asc topic 718 , compensation - stock compensation , which requires companies to measure and recognize compensation expense for all stock-based payments at fair value . compensation cost for restricted stock is measured using the quoted market price of our common stock at the date the common stock is granted . for restricted stock and restricted stock units , for which restrictions lapse with the passage of time ( “ time-based restricted stock ” ) , compensation cost is recognized on a straight-line basis over the period between the issue date and the date that restrictions lapse . time-based restricted stock is included in total shares of common stock outstanding upon the lapse of applicable restrictions . for restricted stock , for which restrictions are based on performance measures ( “ performance stock units ” or “ psu 's ” ) , restrictions lapse when those performance measures have been deemed achieved . compensation cost for psus is recognized on a straight-line basis during the period from the date on which the likelihood of the psus being earned is deemed probable and ( x ) the end of the fiscal year during which such psus are granted or ( y ) the date on which awards of such psus may be approved by the compensation committee of the company 's board of directors ( the “ compensation committee ” ) on a discretionary basis , as applicable . psus are included in total shares of common stock outstanding upon the lapse of applicable restrictions . psus are included in total diluted shares of common stock outstanding when the performance measures have been deemed achieved but the psus have not yet been issued . compensation cost
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1,050 | of san jose del cabo , mexico , a $ 743,000 decrease in banking network installation and services resulting in reduced network construction revenues in 2008 and offset with an increase of $ 2,020,000 in recurring wireless broadband services with the increased growth attributed to recent wisp acquisitions . for the year ended december 31 , 2008 , the company had a gross profit margin of 39 % , compared to a gross profit margin of 26 % for the prior-year period ended december 31 , 2007. the $ 598,000 increased in gross profit margin percentage is primarily due to net increase sales volume which attributed to margins as follows ; ( i ) approximately $ 919,000 increase in gross margin attributable to the increased wireless customer base and strong margins as result of recent acquisitions ( ii ) offset by approximately $ 187,000 decreased in gross margin due to lower sales expectation in our wireless infrastructure construction , and ( iii ) by $ 134,000 decrease in gross margins for banking network services . the company incurred a net loss of $ 8,162,000 for the year ended december 31 , 2008. the company 's principal components of the net loss for the year ended december 31 , 2008 , included approximately $ 1,776,000 in depreciation and amortization expenses , $ 887,000 of interest expense , $ 306,000 of derivative income , $ 1,744,000 of other general and administrative expense , $ 4,735,000 in employment expenses and $ 1,868,000 in professional services . sales information set forth below is a table presenting summarized sales information for our business segments for the years ended december 31 , 2008 and 2007 : replace_table_token_3_th for the year ended december 31 , 2008 , net sales decreased to $ 5,155,000 from $ 5,569,000 for the year ended december 31 , 2007. the overall decrease of 7 % was primarily attributable to decrease sales in wms of $ 1,691,000 due to lower than expected sales in our wireless infrastructure construction , a decrease in sales of ens of $ 743,000 due to a slow down in banking installations and offset with an increase in sales of wbs of $ 2,020,000 due to increase recurring wireless broadband services growth through asset acquisitions . 23 cost of goods sold the following tables set forth summarized cost of goods sold information for the years ended december 31 , 2008 and 2007 : replace_table_token_4_th replace_table_token_5_th for the year ended december 31 , 2008 , cost of goods sold decrease by $ 1,012,000 , or 24 % , to $ 3,121,000 from $ 4,133,000 as compared to the year ended december 31 , 2007. the decrease of $ 1,012,000 in cost of goods sold is primarily attributable to a decrease of cost of goods sold $ 1,504,000 in wms due to lower than expected sales in wireless infrastructure construction , a decrease of cost of goods sold $ 610,000 in our ens due to slow down in banking installations and offset with an increase of $ 1,102,000 in cost of goods sold in the wbs due to increase recurring wireless broadband services growth through asset acquisitions . operations expenses the following table sets forth summarized operating expense information for the years ended december 31 , 2008 and 2007 : replace_table_token_6_th for the year ended december 31 , 2008 , operating expenses increased by 34 % to $ 9,653,000 , as compared to $ 7,209,000 for the year ended december 31 , 2007. the increases that occurred , as evidenced by the immediately preceding table , are discussed below : · a $ 1,278,000 increase in employment expense , primarily attributable to increased work force to 81 employees from 67 employees from a year ago primarily associated with our recent acquisitions . · a $ 152,000 decrease in professional services primarily related to a decrease in legal expenses ; · a $ 122,000 increase in rent and maintenance primarily attributable to growth of the company ; · a $ 25,000 increase in research and development expense primarily attributable to expense in improving efficiencies of voip data encryption ; · a $ 491,000 increase in depreciation and amortization primarily attributable to growth of the company through recent acquisitions ; and · a $ 680,000 increase in other general and administrative expense . 24 other ( income ) expense , net for the year ended december 31 , 2008 , the increase in other expense is primarily attributable to interest expense , net on debt obligations totaling $ 887,000 and offset with a net derivative income of $ 306,000 as compared to interest expense , net of $ 883,000 and derivative expense of $ 408,000 for the year ended december 31 , 2007. the derivative expense represents the net unrealized ( non-cash ) charge during the year ended december 31 , 2008 and 2007 , in the fair value of our derivative instrument liabilities related to warrants and embedded derivatives in our debt instruments that have been bifurcated and accounted for separately . net loss for the year ended december 31 , 2008 , our net loss was $ 8,162,000 compared to a loss of $ 7,067,000 for the year ended december 31 , 2007. the increase in the loss for the year ended december 31 , 2008 , as compared to the year ended december 31 , 2007 is primarily attributable to increase in employment , depreciation and amortization and general and administrative . story_separator_special_tag critical accounting policies and estimates property and equipment property and equipment are stated at cost less accumulated depreciation . major renewals and improvements are capitalized ; minor replacements , maintenance and repairs are charged to current operations . depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amount . no impairment losses have been recorded since inception . long-lived assets we review our long-lived assets , to include intangible assets subject to amortization , for recoverability whenever events or changes in circumstances indicate that the carrying amount of such long-lived asset or group of long-lived assets ( collectively referred to as `` the asset `` ) may not be recoverable . such circumstances include , but are not limited to : · a significant decrease in the market price of the asset ; · a significant change in the extent or manner in which the asset is being used ; · a significant change in the business climate that could affect the value of the asset ; · a current period loss combined with projection of continuing loss associated with use of the asset ; · a current expectation that , more likely than not , the asset will be sold or otherwise disposed of before the end of its previously estimated useful life ; we continually evaluate whether such events and circumstances have occurred . when such events or circumstances exist , the recoverability of the asset 's carrying value shall be determined by estimating the undiscounted future cash flows ( cash inflows less associated cash outflows ) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset . to date , no such impairment has occurred . to the extent such events or circumstances occur that could affect the recoverability of our long-lived assets , we may incur charges for impairment in the future . 29 derivative instruments in connection with the sale of debt or equity instruments , the company may sell options or warrants to purchase our common stock . in certain circumstances , these options or warrants may be classified as derivative liabilities , rather than as equity . additionally , the debt or equity instruments may contain embedded derivative instruments , such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability . the company 's derivative instrument liabilities are re-valued at the end of each reporting period , with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur . for options , warrants and bifurcated embedded derivative features that are accounted for as derivative instrument liabilities , the company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques . the valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return , our current common stock price and expected dividend yield , and the expected volatility of our common stock price over the life of the option . because of the limited trading history for our common stock , the company estimates the future volatility of its common stock price based on not only the history of its stock price but also the experience of other entities considered comparable to the company . recent accounting pronouncements in december 2007 , the fasb issued sfas no . 141r , business combinations . sfas 141r establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquiree . sfas no . 141r also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statement to evaluate the nature and financial effects of the business combination . sfas 141r is effective for financial statements issued for fiscal years beginning after december 15 , 2008. we expect sfas no . 141r will have an impact on our consolidated financial statements when effective , but the nature and magnitude of the specific effects will depend upon the nature , terms and size of the acquisitions we consummate after the effective date . we are still assessing the impact of this standard on our future consolidated financial statements . in july 2006 , the fasb issued fasb interpretation ( `` fin `` ) no . 48 accounting for uncertainly in income taxes - an interpretation of fasb statement no . 109. fin 48 prescribes detailed guidance for the financial statement recognition , measurement , and disclosure of uncertain tax positions recognized in an enterprise 's financial statements in accordance with sfas no . 109 , accounting for income taxes . tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of fin 48 and in subsequent periods . fin 48 will be effective for fiscal years beginning after december 15 , 2006 , and the provisions of fin 48 will be applied to all positions upon the adoption of the interpretation . the cumulative effect of this applying the provisions of this interpretation will be reported as an adjustment to the opening balance of retained earnings for that fiscal year . management is currently evaluating the impact of fin 48 on the financial statements but does not believe that its adoption will have a material effect on the companies ' financial position , results of
| cash flows the company 's operating activities increased net cash used by operating activities to $ 4,048,000 in the year ended december 31 , 2008 , compared to net cash used of $ 2,739,000 in the year ended december 31 , 2007. the increase in net cash used by operating activities was primarily attributable to fund an increase in the company 's net operating loss $ 8,162,000 , net of $ 4,624,000 non-cash charges combined with derivative income $ 306,000 to equal net non-cash charge of $ 4,318,000 , combine together with $ 204,000 of cash used by fluctuations in working capital requirements consisting of the combination of accounts receivable , inventory , prepaid expenses , accounts payable , accrued expenses , cost and profit in excess of billings , deferred liability lease and deferred revenue . the company 's investing activities used net cash of $ 974,000 in the year ended december 31 , 2008 , compared to use of net cash of $ 729,000 in the year ended december 31 , 2007. the increase in investing activities is primarily growing as a result wireless capabilities through asset acquisition and expansion of our infrastructure in texas , new mexico and louisiana .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the company 's operating activities increased net cash used by operating activities to $ 4,048,000 in the year ended december 31 , 2008 , compared to net cash used of $ 2,739,000 in the year ended december 31 , 2007. the increase in net cash used by operating activities was primarily attributable to fund an increase in the company 's net operating loss $ 8,162,000 , net of $ 4,624,000 non-cash charges combined with derivative income $ 306,000 to equal net non-cash charge of $ 4,318,000 , combine together with $ 204,000 of cash used by fluctuations in working capital requirements consisting of the combination of accounts receivable , inventory , prepaid expenses , accounts payable , accrued expenses , cost and profit in excess of billings , deferred liability lease and deferred revenue . the company 's investing activities used net cash of $ 974,000 in the year ended december 31 , 2008 , compared to use of net cash of $ 729,000 in the year ended december 31 , 2007. the increase in investing activities is primarily growing as a result wireless capabilities through asset acquisition and expansion of our infrastructure in texas , new mexico and louisiana .
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Suspicious Activity Report : of san jose del cabo , mexico , a $ 743,000 decrease in banking network installation and services resulting in reduced network construction revenues in 2008 and offset with an increase of $ 2,020,000 in recurring wireless broadband services with the increased growth attributed to recent wisp acquisitions . for the year ended december 31 , 2008 , the company had a gross profit margin of 39 % , compared to a gross profit margin of 26 % for the prior-year period ended december 31 , 2007. the $ 598,000 increased in gross profit margin percentage is primarily due to net increase sales volume which attributed to margins as follows ; ( i ) approximately $ 919,000 increase in gross margin attributable to the increased wireless customer base and strong margins as result of recent acquisitions ( ii ) offset by approximately $ 187,000 decreased in gross margin due to lower sales expectation in our wireless infrastructure construction , and ( iii ) by $ 134,000 decrease in gross margins for banking network services . the company incurred a net loss of $ 8,162,000 for the year ended december 31 , 2008. the company 's principal components of the net loss for the year ended december 31 , 2008 , included approximately $ 1,776,000 in depreciation and amortization expenses , $ 887,000 of interest expense , $ 306,000 of derivative income , $ 1,744,000 of other general and administrative expense , $ 4,735,000 in employment expenses and $ 1,868,000 in professional services . sales information set forth below is a table presenting summarized sales information for our business segments for the years ended december 31 , 2008 and 2007 : replace_table_token_3_th for the year ended december 31 , 2008 , net sales decreased to $ 5,155,000 from $ 5,569,000 for the year ended december 31 , 2007. the overall decrease of 7 % was primarily attributable to decrease sales in wms of $ 1,691,000 due to lower than expected sales in our wireless infrastructure construction , a decrease in sales of ens of $ 743,000 due to a slow down in banking installations and offset with an increase in sales of wbs of $ 2,020,000 due to increase recurring wireless broadband services growth through asset acquisitions . 23 cost of goods sold the following tables set forth summarized cost of goods sold information for the years ended december 31 , 2008 and 2007 : replace_table_token_4_th replace_table_token_5_th for the year ended december 31 , 2008 , cost of goods sold decrease by $ 1,012,000 , or 24 % , to $ 3,121,000 from $ 4,133,000 as compared to the year ended december 31 , 2007. the decrease of $ 1,012,000 in cost of goods sold is primarily attributable to a decrease of cost of goods sold $ 1,504,000 in wms due to lower than expected sales in wireless infrastructure construction , a decrease of cost of goods sold $ 610,000 in our ens due to slow down in banking installations and offset with an increase of $ 1,102,000 in cost of goods sold in the wbs due to increase recurring wireless broadband services growth through asset acquisitions . operations expenses the following table sets forth summarized operating expense information for the years ended december 31 , 2008 and 2007 : replace_table_token_6_th for the year ended december 31 , 2008 , operating expenses increased by 34 % to $ 9,653,000 , as compared to $ 7,209,000 for the year ended december 31 , 2007. the increases that occurred , as evidenced by the immediately preceding table , are discussed below : · a $ 1,278,000 increase in employment expense , primarily attributable to increased work force to 81 employees from 67 employees from a year ago primarily associated with our recent acquisitions . · a $ 152,000 decrease in professional services primarily related to a decrease in legal expenses ; · a $ 122,000 increase in rent and maintenance primarily attributable to growth of the company ; · a $ 25,000 increase in research and development expense primarily attributable to expense in improving efficiencies of voip data encryption ; · a $ 491,000 increase in depreciation and amortization primarily attributable to growth of the company through recent acquisitions ; and · a $ 680,000 increase in other general and administrative expense . 24 other ( income ) expense , net for the year ended december 31 , 2008 , the increase in other expense is primarily attributable to interest expense , net on debt obligations totaling $ 887,000 and offset with a net derivative income of $ 306,000 as compared to interest expense , net of $ 883,000 and derivative expense of $ 408,000 for the year ended december 31 , 2007. the derivative expense represents the net unrealized ( non-cash ) charge during the year ended december 31 , 2008 and 2007 , in the fair value of our derivative instrument liabilities related to warrants and embedded derivatives in our debt instruments that have been bifurcated and accounted for separately . net loss for the year ended december 31 , 2008 , our net loss was $ 8,162,000 compared to a loss of $ 7,067,000 for the year ended december 31 , 2007. the increase in the loss for the year ended december 31 , 2008 , as compared to the year ended december 31 , 2007 is primarily attributable to increase in employment , depreciation and amortization and general and administrative . story_separator_special_tag critical accounting policies and estimates property and equipment property and equipment are stated at cost less accumulated depreciation . major renewals and improvements are capitalized ; minor replacements , maintenance and repairs are charged to current operations . depreciation is computed by applying the straight-line method over the estimated useful lives which are generally three to seven years . impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amount . no impairment losses have been recorded since inception . long-lived assets we review our long-lived assets , to include intangible assets subject to amortization , for recoverability whenever events or changes in circumstances indicate that the carrying amount of such long-lived asset or group of long-lived assets ( collectively referred to as `` the asset `` ) may not be recoverable . such circumstances include , but are not limited to : · a significant decrease in the market price of the asset ; · a significant change in the extent or manner in which the asset is being used ; · a significant change in the business climate that could affect the value of the asset ; · a current period loss combined with projection of continuing loss associated with use of the asset ; · a current expectation that , more likely than not , the asset will be sold or otherwise disposed of before the end of its previously estimated useful life ; we continually evaluate whether such events and circumstances have occurred . when such events or circumstances exist , the recoverability of the asset 's carrying value shall be determined by estimating the undiscounted future cash flows ( cash inflows less associated cash outflows ) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset . to date , no such impairment has occurred . to the extent such events or circumstances occur that could affect the recoverability of our long-lived assets , we may incur charges for impairment in the future . 29 derivative instruments in connection with the sale of debt or equity instruments , the company may sell options or warrants to purchase our common stock . in certain circumstances , these options or warrants may be classified as derivative liabilities , rather than as equity . additionally , the debt or equity instruments may contain embedded derivative instruments , such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability . the company 's derivative instrument liabilities are re-valued at the end of each reporting period , with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur . for options , warrants and bifurcated embedded derivative features that are accounted for as derivative instrument liabilities , the company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques . the valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return , our current common stock price and expected dividend yield , and the expected volatility of our common stock price over the life of the option . because of the limited trading history for our common stock , the company estimates the future volatility of its common stock price based on not only the history of its stock price but also the experience of other entities considered comparable to the company . recent accounting pronouncements in december 2007 , the fasb issued sfas no . 141r , business combinations . sfas 141r establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquiree . sfas no . 141r also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statement to evaluate the nature and financial effects of the business combination . sfas 141r is effective for financial statements issued for fiscal years beginning after december 15 , 2008. we expect sfas no . 141r will have an impact on our consolidated financial statements when effective , but the nature and magnitude of the specific effects will depend upon the nature , terms and size of the acquisitions we consummate after the effective date . we are still assessing the impact of this standard on our future consolidated financial statements . in july 2006 , the fasb issued fasb interpretation ( `` fin `` ) no . 48 accounting for uncertainly in income taxes - an interpretation of fasb statement no . 109. fin 48 prescribes detailed guidance for the financial statement recognition , measurement , and disclosure of uncertain tax positions recognized in an enterprise 's financial statements in accordance with sfas no . 109 , accounting for income taxes . tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of fin 48 and in subsequent periods . fin 48 will be effective for fiscal years beginning after december 15 , 2006 , and the provisions of fin 48 will be applied to all positions upon the adoption of the interpretation . the cumulative effect of this applying the provisions of this interpretation will be reported as an adjustment to the opening balance of retained earnings for that fiscal year . management is currently evaluating the impact of fin 48 on the financial statements but does not believe that its adoption will have a material effect on the companies ' financial position , results of
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1,051 | under participation agreements , the business location holds the applicable gaming license and retains a percentage of the gaming revenue that it generates from our gaming devices . our branded taverns offer a casually upscale environment catering to local patrons offering superior food , beer and other alcoholic beverages and typically include 15 onsite gaming devices . as of december 31 , 2015 , we operated 48 taverns , which offered a total of 764 onsite gaming devices . most of our taverns are located in the greater las vegas , nevada metropolitan area and cater to locals seeking to avoid the congestion of the las vegas strip . our tavern brands include pt 's pub , pt 's gold , pt 's place , sierra gold and sean patrick 's . our taverns also serve as an incubator for new games and technology that can then be rolled out to our third party distributed gaming customers within the segment and to our casinos segment . we also opened our first brewery in las vegas , pt 's brewing company , during the first quarter of 2016 to produce craft beer for our taverns and casinos , as well as other establishments licensed to sell liquor for on-premises consumption . 23 casinos we own and operate rocky gap in flintstone , maryland and , as a result of the merger , three casinos in pahrump , nevada : pahrump nugget , gold town casino and lakeside casino & rv park . pahrump is located approximately 60 miles from las vegas and is a gateway to death valley national park . all of our casinos emphasize gaming device play . we acquired rocky gap in august 2012 , and converted the then-existing convention center into a gaming facility which opened to the public in may 2013. rocky gap is situated on approximately 270 acres in the rocky gap state park , which are leased from the maryland dnr under a 40-year operating ground lease expiring in 2052 ( plus a 20-year option renewal ) . as of december 31 , 2015 , rocky gap offered 631 gaming devices , 19 table games , two casino bars , three restaurants , a spa and the only jack nicklaus signature golf course in maryland . rocky gap is a aaa four diamond award® winning resort with approximately 200 hotel rooms , as well as an event and conference center that opened in the fourth quarter of 2013. as of december 31 , 2015 , our pahrump nugget casino offered 513 gaming devices , as well as 14 table games ( which include four live poker tables ) , a race and sports book , a 208-seat bingo facility and a bowling center . pahrump nugget also features pahrump 's only aaa three diamond award® winning hotel with approximately 70 hotel rooms . as of december 31 , 2015 , our gold town casino offered 288 gaming devices and a 125-seat bingo facility . our lakeside casino & rv park offered 192 gaming devices and a recreational vehicle park surrounding a lake with approximately 160 rv hook-up sites as of december 31 , 2015. results of operations the following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this annual report on form 10-k for the year ended december 31 , 2015. replace_table_token_2_th 24 year ended december 31 , 2015 compared to year ended december 28 , 2014 net revenues net revenues were $ 177.0 million for the year ended december 31 , 2015 compared to $ 55.2 million for the prior year period . the increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of five months of net revenues related to sartini gaming 's distributed gaming and casino businesses during 2015. net revenues related to our distributed gaming segment were $ 103.6 million for the year ended december 31 , 2015 , all of which related to sartini gaming 's distributed gaming business acquired through the merger . there were no net revenues related to our distributed gaming segment during the prior year period . net revenues related to our casinos segment were $ 73.2 million for the year ended december 31 , 2015 compared to $ 55.0 million for the prior year period . the $ 18.2 million increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of approximately $ 14.0 million of net revenues related to sartini gaming 's casino business during 2015 , as well as an increase of approximately $ 4.2 million in net revenues related to our rocky gap casino compared to the prior year period . property operating expenses property operating expenses were $ 120.9 million for the year ended december 31 , 2015 compared to $ 31.9 million for the prior year period . the $ 89.0 million increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of five months of property operating expenses related to sartini gaming 's distributed gaming and casino businesses during 2015. included in gaming expenses and food and beverage expenses for the year ended december 31 , 2015 were $ 72.0 million and $ 14.5 million , respectively , related to sartini gaming 's distributed gaming and casino businesses . property operating expenses comprise gaming , food and beverage , rooms and other operating expenses . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses were $ 38.7 million for the year ended december 31 , 2015 compared to $ 22.1 million for the prior year period . story_separator_special_tag we define “ adjusted ebitda ” as earnings before interest and other non-operating income ( expense ) , taxes , depreciation and amortization , preopening expenses , merger expenses , share-based compensation expenses , impairments and other gains and losses . the following table presents a reconciliation of adjusted ebitda to net income ( loss ) : replace_table_token_3_th story_separator_special_tag 0pt ; line-height : 1.25 `` > in december 2012 , we closed on the $ 17.5 million rocky gap financing facility to finance a portion of rocky gap project costs . in connection with the entry into the credit agreement on july 31 , 2015 and the borrowings thereunder , as more fully described above , on july 31 , 2015 we repaid all principal amounts outstanding under the rocky gap financing facility , which amounted to approximately $ 10.7 million , together with accrued interest . in connection with such repayment , we terminated the rocky gap financing facility . as a result of the payoff of the rocky gap financing facility , we recognized a loss on extinguishment of debt of $ 1.2 million , related to the unamortized discount under the facility , during the year ended december 31 , 2015. as of december 28 , 2014 , we had $ 11.7 million in principal amount of outstanding borrowings under the rocky gap financing facility . 30 sale of jamul tribe promissory note on december 9 , 2015 , we sold our $ 60.0 million jamul note to a subsidiary of penn national for $ 24.0 million in cash . we determined the fair value of the jamul note to be zero as of december 28 , 2014. under the terms of the merger agreement and subject to applicable law , the proceeds received from the sale of the jamul note , net of related costs , will be distributed in a cash dividend to our shareholders that hold shares as of the record date for such dividend ( other than shareholders that have waived their right to receive such dividend ) . under the terms of the merger agreement , sartini gaming 's former sole shareholder , for itself and any related party transferees of its shares ( which total approximately 8.0 million shares , in the aggregate ) , waived their right to receive such dividend with respect to their shares , except for a potential tax distribution , if any , unless their shares are sold to an unaffiliated third party prior to the record date for any such dividend . also in connection with the merger , holders of an additional approximately 0.5 million shares waived their right to receive such dividend , unless such shares are sold to an unaffiliated third party prior to the record date for any such dividend . we anticipate that the net proceeds received from the sale of the jamul note will be distributed to shareholders during the summer of 2016. the record date for such dividend will follow the board of directors ' declaration of any such dividend and will be announced at such time . commitments and contractual obligations the following table summarizes our contractual obligations as of december 31 , 2015 : replace_table_token_4_th ( 1 ) as of december 31 , 2015 , under the credit agreement , we had a $ 118.5 million in principal amount of outstanding term loan borrowings and $ 25.0 million in principal amount of outstanding borrowings under our revolving credit facility . the facilities mature on july 31 , 2020. see “ liquidity and capital resources – credit agreement , ” above , for a discussion of the credit agreement . ( 2 ) in 2012 , we entered into a 40-year operating ground lease with the maryland dnr for approximately 270 acres in the rocky gap state park in which rocky gap is situated . the lease expires in 2052 , with an option to renew for an additional 20 years . rent payments under the lease include variable amounts based on rocky gap gaming revenue and surcharges on amounts billed to and collected from guests . see note 17 , commitments and contingencies – rocky gap lease , in the accompanying consolidated financial statements for information regarding the lease . ( 3 ) we lease the approximately nine acres of land on which our gold town casino is located from several unrelated parties . ( 4 ) we lease taverns , equipment and vehicles under noncancelable operating leases . the terms of the leases range from one to 14 years , with various renewal options from one to 15 years . additionally , included in operating leases are our obligations under our space lease agreements to pay fixed monthly rental fees for the right to install , maintain and operate gaming devices as part of our distributed gaming business . ( 5 ) relates to notes payable on equipment purchases and previous tavern acquisitions . 31 critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations discusses our consolidated financial statements , which have been prepared in accordance with gaap . the preparation of these financial statements requires us to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet date and reported amounts of revenue and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition and promotional allowances , short-term investments , investments in unconsolidated investees , litigation costs , income taxes and share-based compensation . we base our estimates and judgments on historical experience and on various other factors that are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ materially from
| liquidity and capital resources as of december 31 , 2015 , we had $ 69.2 million in cash and cash equivalents and no short-term investments . we currently believe that our cash and cash equivalents , cash flows from operations and additional term loan or revolving credit borrowings will be sufficient to meet our capital requirements during the next 12 months . our operating results and performance depend significantly on national , regional and local economic conditions and their effect on consumer spending . declines in consumer spending would cause revenues generated in both our distributed gaming and casinos segments to be adversely affected . we incurred a total of approximately $ 12.0 million in transaction-related costs associated with the merger , which consist primarily of severance , financial advisor , legal , accounting and consulting costs . we incurred approximately $ 11.5 million and $ 0.5 million of transaction-related costs associated with the merger during the years ended december 31 , 2015 and december 28 , 2014 , respectively . 29 to further enhance our liquidity position or to finance any future acquisition or other business investment initiatives , in the near future we may obtain additional financing , which could consist of an increase in the size of our revolving credit facility or additional or increased term loans under our credit agreement and or other debt financing from credit and capital markets . credit agreement on july 31 , 2015 , we entered into a credit agreement with the lenders named therein and capital one , national association ( as administrative agent ) . the facilities under the credit agreement consist of a $ 120.0 million senior secured term loan ( “ term loan ” ) and a $ 40.0 million revolving credit facility ( together with the term loan facility , the “ facilities ” ) .
| 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. |
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 as of december 31 , 2015 , we had $ 69.2 million in cash and cash equivalents and no short-term investments . we currently believe that our cash and cash equivalents , cash flows from operations and additional term loan or revolving credit borrowings will be sufficient to meet our capital requirements during the next 12 months . our operating results and performance depend significantly on national , regional and local economic conditions and their effect on consumer spending . declines in consumer spending would cause revenues generated in both our distributed gaming and casinos segments to be adversely affected . we incurred a total of approximately $ 12.0 million in transaction-related costs associated with the merger , which consist primarily of severance , financial advisor , legal , accounting and consulting costs . we incurred approximately $ 11.5 million and $ 0.5 million of transaction-related costs associated with the merger during the years ended december 31 , 2015 and december 28 , 2014 , respectively . 29 to further enhance our liquidity position or to finance any future acquisition or other business investment initiatives , in the near future we may obtain additional financing , which could consist of an increase in the size of our revolving credit facility or additional or increased term loans under our credit agreement and or other debt financing from credit and capital markets . credit agreement on july 31 , 2015 , we entered into a credit agreement with the lenders named therein and capital one , national association ( as administrative agent ) . the facilities under the credit agreement consist of a $ 120.0 million senior secured term loan ( “ term loan ” ) and a $ 40.0 million revolving credit facility ( together with the term loan facility , the “ facilities ” ) .
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Suspicious Activity Report : under participation agreements , the business location holds the applicable gaming license and retains a percentage of the gaming revenue that it generates from our gaming devices . our branded taverns offer a casually upscale environment catering to local patrons offering superior food , beer and other alcoholic beverages and typically include 15 onsite gaming devices . as of december 31 , 2015 , we operated 48 taverns , which offered a total of 764 onsite gaming devices . most of our taverns are located in the greater las vegas , nevada metropolitan area and cater to locals seeking to avoid the congestion of the las vegas strip . our tavern brands include pt 's pub , pt 's gold , pt 's place , sierra gold and sean patrick 's . our taverns also serve as an incubator for new games and technology that can then be rolled out to our third party distributed gaming customers within the segment and to our casinos segment . we also opened our first brewery in las vegas , pt 's brewing company , during the first quarter of 2016 to produce craft beer for our taverns and casinos , as well as other establishments licensed to sell liquor for on-premises consumption . 23 casinos we own and operate rocky gap in flintstone , maryland and , as a result of the merger , three casinos in pahrump , nevada : pahrump nugget , gold town casino and lakeside casino & rv park . pahrump is located approximately 60 miles from las vegas and is a gateway to death valley national park . all of our casinos emphasize gaming device play . we acquired rocky gap in august 2012 , and converted the then-existing convention center into a gaming facility which opened to the public in may 2013. rocky gap is situated on approximately 270 acres in the rocky gap state park , which are leased from the maryland dnr under a 40-year operating ground lease expiring in 2052 ( plus a 20-year option renewal ) . as of december 31 , 2015 , rocky gap offered 631 gaming devices , 19 table games , two casino bars , three restaurants , a spa and the only jack nicklaus signature golf course in maryland . rocky gap is a aaa four diamond award® winning resort with approximately 200 hotel rooms , as well as an event and conference center that opened in the fourth quarter of 2013. as of december 31 , 2015 , our pahrump nugget casino offered 513 gaming devices , as well as 14 table games ( which include four live poker tables ) , a race and sports book , a 208-seat bingo facility and a bowling center . pahrump nugget also features pahrump 's only aaa three diamond award® winning hotel with approximately 70 hotel rooms . as of december 31 , 2015 , our gold town casino offered 288 gaming devices and a 125-seat bingo facility . our lakeside casino & rv park offered 192 gaming devices and a recreational vehicle park surrounding a lake with approximately 160 rv hook-up sites as of december 31 , 2015. results of operations the following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this annual report on form 10-k for the year ended december 31 , 2015. replace_table_token_2_th 24 year ended december 31 , 2015 compared to year ended december 28 , 2014 net revenues net revenues were $ 177.0 million for the year ended december 31 , 2015 compared to $ 55.2 million for the prior year period . the increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of five months of net revenues related to sartini gaming 's distributed gaming and casino businesses during 2015. net revenues related to our distributed gaming segment were $ 103.6 million for the year ended december 31 , 2015 , all of which related to sartini gaming 's distributed gaming business acquired through the merger . there were no net revenues related to our distributed gaming segment during the prior year period . net revenues related to our casinos segment were $ 73.2 million for the year ended december 31 , 2015 compared to $ 55.0 million for the prior year period . the $ 18.2 million increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of approximately $ 14.0 million of net revenues related to sartini gaming 's casino business during 2015 , as well as an increase of approximately $ 4.2 million in net revenues related to our rocky gap casino compared to the prior year period . property operating expenses property operating expenses were $ 120.9 million for the year ended december 31 , 2015 compared to $ 31.9 million for the prior year period . the $ 89.0 million increase resulted primarily from the completion of the merger on july 31 , 2015 , which resulted in the inclusion of five months of property operating expenses related to sartini gaming 's distributed gaming and casino businesses during 2015. included in gaming expenses and food and beverage expenses for the year ended december 31 , 2015 were $ 72.0 million and $ 14.5 million , respectively , related to sartini gaming 's distributed gaming and casino businesses . property operating expenses comprise gaming , food and beverage , rooms and other operating expenses . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses were $ 38.7 million for the year ended december 31 , 2015 compared to $ 22.1 million for the prior year period . story_separator_special_tag we define “ adjusted ebitda ” as earnings before interest and other non-operating income ( expense ) , taxes , depreciation and amortization , preopening expenses , merger expenses , share-based compensation expenses , impairments and other gains and losses . the following table presents a reconciliation of adjusted ebitda to net income ( loss ) : replace_table_token_3_th story_separator_special_tag 0pt ; line-height : 1.25 `` > in december 2012 , we closed on the $ 17.5 million rocky gap financing facility to finance a portion of rocky gap project costs . in connection with the entry into the credit agreement on july 31 , 2015 and the borrowings thereunder , as more fully described above , on july 31 , 2015 we repaid all principal amounts outstanding under the rocky gap financing facility , which amounted to approximately $ 10.7 million , together with accrued interest . in connection with such repayment , we terminated the rocky gap financing facility . as a result of the payoff of the rocky gap financing facility , we recognized a loss on extinguishment of debt of $ 1.2 million , related to the unamortized discount under the facility , during the year ended december 31 , 2015. as of december 28 , 2014 , we had $ 11.7 million in principal amount of outstanding borrowings under the rocky gap financing facility . 30 sale of jamul tribe promissory note on december 9 , 2015 , we sold our $ 60.0 million jamul note to a subsidiary of penn national for $ 24.0 million in cash . we determined the fair value of the jamul note to be zero as of december 28 , 2014. under the terms of the merger agreement and subject to applicable law , the proceeds received from the sale of the jamul note , net of related costs , will be distributed in a cash dividend to our shareholders that hold shares as of the record date for such dividend ( other than shareholders that have waived their right to receive such dividend ) . under the terms of the merger agreement , sartini gaming 's former sole shareholder , for itself and any related party transferees of its shares ( which total approximately 8.0 million shares , in the aggregate ) , waived their right to receive such dividend with respect to their shares , except for a potential tax distribution , if any , unless their shares are sold to an unaffiliated third party prior to the record date for any such dividend . also in connection with the merger , holders of an additional approximately 0.5 million shares waived their right to receive such dividend , unless such shares are sold to an unaffiliated third party prior to the record date for any such dividend . we anticipate that the net proceeds received from the sale of the jamul note will be distributed to shareholders during the summer of 2016. the record date for such dividend will follow the board of directors ' declaration of any such dividend and will be announced at such time . commitments and contractual obligations the following table summarizes our contractual obligations as of december 31 , 2015 : replace_table_token_4_th ( 1 ) as of december 31 , 2015 , under the credit agreement , we had a $ 118.5 million in principal amount of outstanding term loan borrowings and $ 25.0 million in principal amount of outstanding borrowings under our revolving credit facility . the facilities mature on july 31 , 2020. see “ liquidity and capital resources – credit agreement , ” above , for a discussion of the credit agreement . ( 2 ) in 2012 , we entered into a 40-year operating ground lease with the maryland dnr for approximately 270 acres in the rocky gap state park in which rocky gap is situated . the lease expires in 2052 , with an option to renew for an additional 20 years . rent payments under the lease include variable amounts based on rocky gap gaming revenue and surcharges on amounts billed to and collected from guests . see note 17 , commitments and contingencies – rocky gap lease , in the accompanying consolidated financial statements for information regarding the lease . ( 3 ) we lease the approximately nine acres of land on which our gold town casino is located from several unrelated parties . ( 4 ) we lease taverns , equipment and vehicles under noncancelable operating leases . the terms of the leases range from one to 14 years , with various renewal options from one to 15 years . additionally , included in operating leases are our obligations under our space lease agreements to pay fixed monthly rental fees for the right to install , maintain and operate gaming devices as part of our distributed gaming business . ( 5 ) relates to notes payable on equipment purchases and previous tavern acquisitions . 31 critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations discusses our consolidated financial statements , which have been prepared in accordance with gaap . the preparation of these financial statements requires us to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet date and reported amounts of revenue and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition and promotional allowances , short-term investments , investments in unconsolidated investees , litigation costs , income taxes and share-based compensation . we base our estimates and judgments on historical experience and on various other factors that are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ materially from
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1,052 | product revenue will depend on our ability to receive regulatory approvals for , and successfully market , our drug candidates . we have yet to generate any revenues from product sales and have recorded an accumulated deficit of $ 699.7 million at december 31 , 2015. these losses have resulted principally from costs incurred in connection with research and development activities , compensation and other related personnel costs and general corporate expenses . research and development activities include costs of outside contracted services including clinical trial costs , manufacturing and process development costs , research costs and other consulting services . salaries and other personnel-related costs include non-cash stock-based compensation associated with options and other equity awards granted to employees . general corporate expenses include outside services such as accounting , consulting , business development , commercial , investor relations , insurance services and legal costs . our operating results may fluctuate substantially from period to period principally as a result of the timing of preclinical activities and other activities related to clinical trials for our drug candidates . since our inception , we have relied primarily on the proceeds from public and private sales of our equity securities , government grants and revenues from collaboration agreements to fund our operations . we expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates , particularly heplisav-b and our investigational cancer immunotherapeutic product candidate , sd-101 , human clinical trials for our other product candidates and additional applications and advancement of our technology . costs relating to hbv-23 declined following the last subject visit in october 2015 , but costs relating to seeking regulatory approval and preparing for the anticipated commercial launch of heplisav-b in the united states , as well as costs related to the ongoing development of sd-101 and our other cancer immunotherapeutic research and development programs , are increasing . in order to continue these activities , we may need to raise additional funds . this may occur through strategic alliance and licensing arrangements and or future public or private debt and equity financings . if adequate funds are not available in the future , we may need to delay , reduce the scope of or put on hold the heplisav-b program or other development programs while we seek strategic alternatives . 29 critical accounting policies and the use of estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the related disclosures , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates , assumptions and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented . on an ongoing basis , we evaluate our estimates , assumptions and judgments described below that have the greatest potential impact on our consolidated financial statements , including those related to revenue recognition , research and development activities and stock-based compensation . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . accounting assumptions and estimates are inherently uncertain and actual results may differ materially from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in note 2 to the consolidated financial statements , we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements . revenue recognition our revenues consist of amounts earned from collaborations , grants and fees from services and licenses . we enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may involve multiple deliverables . our arrangements may include one or more of the following elements : upfront license payments , cost reimbursement for the performance of research and development activities , milestone payments , other contingent payments , contract manufacturing service fees , royalties and license fees . each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables . in order to account for the multiple-element arrangements , the company identifies the deliverables included within the arrangement and evaluates which deliverables represent separate units of accounting . analyzing the arrangement to identify deliverables requires the use of judgment , and each deliverable may be an obligation to deliver services , a right or license to use an asset , or another performance obligation . we recognize revenue when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collectability is reasonably assured . non-refundable upfront fees received for license and collaborative agreements entered into prior to january 1 , 2011 and other payments under collaboration agreements where we have continuing performance obligations related to the payments are deferred and recognized over our estimated performance period . revenue is recognized on a ratable basis , unless we determine that another method is more appropriate , through the date at which our performance obligations are completed . management makes its best estimate of the period over which we expect to fulfill our performance obligations , which may include clinical development activities . given the uncertainties of research and development collaborations , significant judgment is required to determine the duration of the performance period . story_separator_special_tag the following is a summary of our interest income and expense , other income , and loss on extinguishment of debt ( in thousands , except for percentages ) : replace_table_token_7_th interest income for the year ended december 31 , 2015 , remained flat compared to the same period in 2014. interest income for the year ended december 31 , 2014 , increased by $ 0.1 million , or 65 % , compared to the same period in 2013 due to higher average marketable securities balance in 2014 as compared to 2013 , resulting from the october 2013 common stock and preferred stock offerings which resulted in net proceeds of approximately $ 80.9 and $ 44.2 million , respectively . 34 interest expense for the year ended december 31 , 2015 in creased by $ 0.5 million or 1,534 % compared to the same period in 201 4 due to interest expense related to the loan and security agreement ( the “ loan agreement ” ) entered into with hercules technology growth capital , inc. ( “ hercules ” ) in december 2014 . interest expense for the year ended december 31 , 2014 increa sed over the same period in 2013 due to the accretion of interest expense related t o the loan agreement with hercules . other income ( loss ) for the year ended december 31 , 2015 decreased by $ 0.1 million or 27 % , compared to the same period in 2014 due to gain on foreign currency transactions resulting from fluctuations in the value of the euro compared to the u.s. dollar and withholding taxes paid in europe . other income ( loss ) for the year ended december 31 , 2014 increased by $ 0.8 million or 224 % , compared to the same period in 2013 due to gain on foreign currency transactions in 2014 related to fluctuations in the value of the euro compared to the u.s. dollar . during the year ended december 31 , 2015 , we recognized a one-time loss on extinguishment of debt of $ 1.7 million related to the early repayment of the outstanding loan from hercules . as of december 31 , 2015 , we have no debt outstanding . story_separator_special_tag roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > net c ash used in the purchases of equipment increased an additi o nal $ 38 thousand compared to the prior year and totaled $ 1.7 million a nd $ 1.6 million in 2014 and 2013 , respectively . during the year ended december 31 , 2014 , cash provided by financing activities decreased by $ 115.5 million , totaling $ 9.9 million , compared to $ 125.4 million for the year ended december 31 , 2013. cash provided by financing activities for the year ended december 31 , 2014 included net proceeds of $ 9.6 million drawn down under the loan agreement with hercules . cash provided by financing activities in 2013 included the sale of 7,957,000 shares of common stock and 43,430 shares of series b convertible preferred stock in separate underwritten public offerings for net proceeds of $ 125.1 million . additionally , proceeds from warrant exercises for the year ended december 31 , 2014 increased $ 0.2 million as compared to the same period in 2013. we currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash and cash equivalents and marketable securities on hand as of december 31 , 2015 , and anticipated revenues and expenditures . we expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates , particularly heplisav-b and our investigational cancer immunotherapeutic product candidate , sd-101 , human clinical trials for our other product candidates and additional applications and advancement of our technology . costs relating to hbv-23 r & d expense are declining following the last subject visit in october 2015 , and costs relating to seeking regulatory approval and preparing for the anticipated commercial launch of heplisav-b in the united states , as well as costs related to the ongoing development of sd-101 , are increasing . in order to continue these activities , we may need to raise additional funds . this may occur through strategic alliance and licensing arrangements and or future public or private debt or equity financings . sufficient funding may not be available , or if available , may be on terms that significantly dilute or otherwise adversely affect the rights of existing stockholders . if adequate funds are not available in the future , we may need to delay , reduce the scope of or put on hold the heplisav-b program or other development programs while we seek strategic alternatives , which could have an adverse impact on our ability to achieve our intended business objectives . contractual obligations the following summarizes our significant contractual obligations at december 31 , 2015 and the effect those obligations are expected to have on our liquidity and cash flows in future periods ( in thousands ) : replace_table_token_8_th we lease our facilities in berkeley , california ( the “ berkeley lease ” ) , and düsseldorf , germany ( the “ düsseldorf lease ” ) under operating leases that expire in june 2018 and march 2023 , respectively . during 2004 , we established a letter of credit with silicon valley bank as security for the berkeley lease in the amount of $ 0.4 million . the letter of credit remained outstanding as of december 31 , 2015 and is collateralized by a certificate of deposit for $ 0.4 million which has been included in restricted cash in the consolidated balance sheets as of december 31 , 2015 and 2014. under the terms of the berkeley lease , if the total amount of our cash , cash equivalents
| liquidity and capital resources as of december 31 , 2015 , we had $ 196.1 million in cash , cash equivalents and marketable securities . since our inception , we have relied primarily on the proceeds from public and private sales of our equity securities , government grants and revenues from collaboration agreements to fund our operations . our funds are currently invested in short-term money market funds , u.s. government agency securities and corporate debt securities . on november 12 , 2015 , we entered into an at market issuance sales agreement ( the “ agreement ” ) with cowen and company , llc ( “ cowen ” ) under which we may offer and sell our common stock having aggregate sales proceeds of up to $ 90 million from time to time through cowen as our sales agent . sales of our common stock through cowen , if any , will be made by means of ordinary brokers ' transactions on the nasdaq capital market or otherwise at market prices prevailing at the time of sale , in block transactions , or as otherwise agreed upon by us and cowen . cowen will use commercially reasonable efforts to sell our common stock from time to time , based upon instructions from us ( including any price , time or size limits or other customary parameters or conditions we may impose ) . we will pay cowen a commission of up to 3.0 % of the gross sales proceeds of any common stock sold through cowen under the agreement .
| 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. |
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 as of december 31 , 2015 , we had $ 196.1 million in cash , cash equivalents and marketable securities . since our inception , we have relied primarily on the proceeds from public and private sales of our equity securities , government grants and revenues from collaboration agreements to fund our operations . our funds are currently invested in short-term money market funds , u.s. government agency securities and corporate debt securities . on november 12 , 2015 , we entered into an at market issuance sales agreement ( the “ agreement ” ) with cowen and company , llc ( “ cowen ” ) under which we may offer and sell our common stock having aggregate sales proceeds of up to $ 90 million from time to time through cowen as our sales agent . sales of our common stock through cowen , if any , will be made by means of ordinary brokers ' transactions on the nasdaq capital market or otherwise at market prices prevailing at the time of sale , in block transactions , or as otherwise agreed upon by us and cowen . cowen will use commercially reasonable efforts to sell our common stock from time to time , based upon instructions from us ( including any price , time or size limits or other customary parameters or conditions we may impose ) . we will pay cowen a commission of up to 3.0 % of the gross sales proceeds of any common stock sold through cowen under the agreement .
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Suspicious Activity Report : product revenue will depend on our ability to receive regulatory approvals for , and successfully market , our drug candidates . we have yet to generate any revenues from product sales and have recorded an accumulated deficit of $ 699.7 million at december 31 , 2015. these losses have resulted principally from costs incurred in connection with research and development activities , compensation and other related personnel costs and general corporate expenses . research and development activities include costs of outside contracted services including clinical trial costs , manufacturing and process development costs , research costs and other consulting services . salaries and other personnel-related costs include non-cash stock-based compensation associated with options and other equity awards granted to employees . general corporate expenses include outside services such as accounting , consulting , business development , commercial , investor relations , insurance services and legal costs . our operating results may fluctuate substantially from period to period principally as a result of the timing of preclinical activities and other activities related to clinical trials for our drug candidates . since our inception , we have relied primarily on the proceeds from public and private sales of our equity securities , government grants and revenues from collaboration agreements to fund our operations . we expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates , particularly heplisav-b and our investigational cancer immunotherapeutic product candidate , sd-101 , human clinical trials for our other product candidates and additional applications and advancement of our technology . costs relating to hbv-23 declined following the last subject visit in october 2015 , but costs relating to seeking regulatory approval and preparing for the anticipated commercial launch of heplisav-b in the united states , as well as costs related to the ongoing development of sd-101 and our other cancer immunotherapeutic research and development programs , are increasing . in order to continue these activities , we may need to raise additional funds . this may occur through strategic alliance and licensing arrangements and or future public or private debt and equity financings . if adequate funds are not available in the future , we may need to delay , reduce the scope of or put on hold the heplisav-b program or other development programs while we seek strategic alternatives . 29 critical accounting policies and the use of estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the related disclosures , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates , assumptions and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented . on an ongoing basis , we evaluate our estimates , assumptions and judgments described below that have the greatest potential impact on our consolidated financial statements , including those related to revenue recognition , research and development activities and stock-based compensation . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . accounting assumptions and estimates are inherently uncertain and actual results may differ materially from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in note 2 to the consolidated financial statements , we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements . revenue recognition our revenues consist of amounts earned from collaborations , grants and fees from services and licenses . we enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may involve multiple deliverables . our arrangements may include one or more of the following elements : upfront license payments , cost reimbursement for the performance of research and development activities , milestone payments , other contingent payments , contract manufacturing service fees , royalties and license fees . each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables . in order to account for the multiple-element arrangements , the company identifies the deliverables included within the arrangement and evaluates which deliverables represent separate units of accounting . analyzing the arrangement to identify deliverables requires the use of judgment , and each deliverable may be an obligation to deliver services , a right or license to use an asset , or another performance obligation . we recognize revenue when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collectability is reasonably assured . non-refundable upfront fees received for license and collaborative agreements entered into prior to january 1 , 2011 and other payments under collaboration agreements where we have continuing performance obligations related to the payments are deferred and recognized over our estimated performance period . revenue is recognized on a ratable basis , unless we determine that another method is more appropriate , through the date at which our performance obligations are completed . management makes its best estimate of the period over which we expect to fulfill our performance obligations , which may include clinical development activities . given the uncertainties of research and development collaborations , significant judgment is required to determine the duration of the performance period . story_separator_special_tag the following is a summary of our interest income and expense , other income , and loss on extinguishment of debt ( in thousands , except for percentages ) : replace_table_token_7_th interest income for the year ended december 31 , 2015 , remained flat compared to the same period in 2014. interest income for the year ended december 31 , 2014 , increased by $ 0.1 million , or 65 % , compared to the same period in 2013 due to higher average marketable securities balance in 2014 as compared to 2013 , resulting from the october 2013 common stock and preferred stock offerings which resulted in net proceeds of approximately $ 80.9 and $ 44.2 million , respectively . 34 interest expense for the year ended december 31 , 2015 in creased by $ 0.5 million or 1,534 % compared to the same period in 201 4 due to interest expense related to the loan and security agreement ( the “ loan agreement ” ) entered into with hercules technology growth capital , inc. ( “ hercules ” ) in december 2014 . interest expense for the year ended december 31 , 2014 increa sed over the same period in 2013 due to the accretion of interest expense related t o the loan agreement with hercules . other income ( loss ) for the year ended december 31 , 2015 decreased by $ 0.1 million or 27 % , compared to the same period in 2014 due to gain on foreign currency transactions resulting from fluctuations in the value of the euro compared to the u.s. dollar and withholding taxes paid in europe . other income ( loss ) for the year ended december 31 , 2014 increased by $ 0.8 million or 224 % , compared to the same period in 2013 due to gain on foreign currency transactions in 2014 related to fluctuations in the value of the euro compared to the u.s. dollar . during the year ended december 31 , 2015 , we recognized a one-time loss on extinguishment of debt of $ 1.7 million related to the early repayment of the outstanding loan from hercules . as of december 31 , 2015 , we have no debt outstanding . story_separator_special_tag roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > net c ash used in the purchases of equipment increased an additi o nal $ 38 thousand compared to the prior year and totaled $ 1.7 million a nd $ 1.6 million in 2014 and 2013 , respectively . during the year ended december 31 , 2014 , cash provided by financing activities decreased by $ 115.5 million , totaling $ 9.9 million , compared to $ 125.4 million for the year ended december 31 , 2013. cash provided by financing activities for the year ended december 31 , 2014 included net proceeds of $ 9.6 million drawn down under the loan agreement with hercules . cash provided by financing activities in 2013 included the sale of 7,957,000 shares of common stock and 43,430 shares of series b convertible preferred stock in separate underwritten public offerings for net proceeds of $ 125.1 million . additionally , proceeds from warrant exercises for the year ended december 31 , 2014 increased $ 0.2 million as compared to the same period in 2013. we currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash and cash equivalents and marketable securities on hand as of december 31 , 2015 , and anticipated revenues and expenditures . we expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates , particularly heplisav-b and our investigational cancer immunotherapeutic product candidate , sd-101 , human clinical trials for our other product candidates and additional applications and advancement of our technology . costs relating to hbv-23 r & d expense are declining following the last subject visit in october 2015 , and costs relating to seeking regulatory approval and preparing for the anticipated commercial launch of heplisav-b in the united states , as well as costs related to the ongoing development of sd-101 , are increasing . in order to continue these activities , we may need to raise additional funds . this may occur through strategic alliance and licensing arrangements and or future public or private debt or equity financings . sufficient funding may not be available , or if available , may be on terms that significantly dilute or otherwise adversely affect the rights of existing stockholders . if adequate funds are not available in the future , we may need to delay , reduce the scope of or put on hold the heplisav-b program or other development programs while we seek strategic alternatives , which could have an adverse impact on our ability to achieve our intended business objectives . contractual obligations the following summarizes our significant contractual obligations at december 31 , 2015 and the effect those obligations are expected to have on our liquidity and cash flows in future periods ( in thousands ) : replace_table_token_8_th we lease our facilities in berkeley , california ( the “ berkeley lease ” ) , and düsseldorf , germany ( the “ düsseldorf lease ” ) under operating leases that expire in june 2018 and march 2023 , respectively . during 2004 , we established a letter of credit with silicon valley bank as security for the berkeley lease in the amount of $ 0.4 million . the letter of credit remained outstanding as of december 31 , 2015 and is collateralized by a certificate of deposit for $ 0.4 million which has been included in restricted cash in the consolidated balance sheets as of december 31 , 2015 and 2014. under the terms of the berkeley lease , if the total amount of our cash , cash equivalents
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1,053 | it contained substantial tax and spending provisions intended to address the impact of the covid-19 pandemic . the cares act included the ppp , a nearly $ 350 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed through banks . these loans were intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills . the initial $ 350 billion program was supplemented in late april 2020 with $ 310 billion in additional funding . on june 5 , 2020 , the paycheck protection program flexibility act ( the “ new act ” ) was signed into law and made significant changes to the ppp to provide additional relief for small businesses . the new act increased flexibility for small businesses that have been unable to rehire employees due to lack of employee availability or have been unable to operate as normal due to covid-19 related restrictions . it extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules . the new act also relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness . in addition , the new act extended the payment deferral period for ppp loans until the date when the amount of loan forgiveness is determined and remitted to the lender . for ppp recipients who do not apply for forgiveness , the loan deferral period is 10 months after the applicable forgiveness period ends . the ppp program expired august 8 , 2020 . ● on december 21 , 2020 , the bipartisan-bicameral omnibus covid relief deal , included as a component of appropriations legislation , was passed by congress to provide economic stimulus to individuals and businesses in further response to the economic distress caused by the covid-19 pandemic . among other things , the legislation includes ( i ) payments of $ 600 for individuals making up to $ 75,000 per year , ( ii ) extension of the federal pandemic unemployment compensation program to include a $ 300 weekly enhancement in unemployment benefits beginning after december 26 , 2020 up to march 14 , 2021 , ( iii ) a temporary and targeted rental assistance program , and extends the eviction moratorium through january 31 , 2021 , ( iv ) targeted funding related to transportation , education , agriculture , nutrition and other public health measures and ( v ) approximately $ 325 billion for small business relief , including approximately $ 284 billion for a second round of ppp loans and a new simplified forgiveness procedure for ppp loans of $ 150,000 or less . we are continuing to monitor the potential development of additional legislation and further actions taken by the u.s. government . analysis of results of operations 2020 compared to 2019 net income was $ 24.3 million , or $ 1.62 per diluted common share in 2020 , compared to $ 26.5 million , or $ 1.89 per diluted common share in 2019. the tax equivalent net interest margin for 2020 was 3.61 % compared to 3.95 % for 2019. noninterest income to average assets was 0.50 % for 2020 , decreasing from 0.65 % for 2019. noninterest expense to average assets decreased to 2.50 % in 2020 , from 2.70 % in 2019. the results above include operating effects of the pfg acquisition , which was completed on march 1 , 2020. income tax expense was $ 6.6 million in 2020 with an effective tax rate of 21.2 % , compared to $ 6.9 million in 2019 with an effective tax rate of 20.6 % . 2019 compared to 2018 net income was $ 26.5 million in 2019 , compared to $ 18.1 million in 2018. net income available to common shareholders was $ 26.5 million , or $ 1.89 per diluted common share , in 2019 , compared to $ 18.1 million , or $ 1.45 per diluted common share , in 2018. the net interest margin , taxable equivalent , for 2019 was 3.95 % compared to 4.43 % for 2018. noninterest income to average assets increased from 0.34 % in 2018 , to 0.65 % in 2019 , primarily due to the $ 6.4 million termination 35 fee from the termination of the entegra merger . noninterest expense to average assets decreased from 3.00 % in 2018 to 2.70 % in 2019 as the company continued to capture economies of scale following the mergers with foothills bancorp , inc. ( “ foothills ” ) and tennessee bancshares , inc. ( “ tennessee bancshares ” ) . income tax expense was $ 6.9 million in 2019 with an effective tax rate of 20.6 % , compared to $ 3.2 million in 2018 with an effective tax rate of 15.2 % . net interest income and yield analysis the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-earning assets and interest-bearing liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . 2020 compared to 2019 net interest income , taxable equivalent , increased to $ 101.4 million in 2020 from $ 84.3 story_separator_special_tag subsequent modification of a pci loan accounted for in a pool that would otherwise meet the definition of a tdr is not reported , or accounted for , as a tdr since pooled pci loans are excluded from the scope of tdr accounting . a pci loan not accounted for in a pool would be reported , and accounted for , as a tdr if modified in a manner that meets the definition of a tdr after the acquisition date . nonperforming loans as a percentage of gross loans , net of deferred fees , was 0.24 % as of december 31 , 2020 , and 0.18 % as of december 31 , 2019 , respectively . total nonperforming assets as a percentage of total assets as of december 31 , 2020 totaled 0.31 % compared to 0.21 % as of december 31 , 2019. pci loans that are included in loan pools are reclassified at acquisition to accrual status and thus are not included as nonperforming assets . in 2020 , there was $ 30 thousand in interest income recognized on nonaccrual and restructured loans compared to the $ 358 thousand in gross interest income that would have been recognized if the loans had been current in accordance with their original terms . 43 the following table summarizes the company 's nonperforming assets as of december 31 for the periods presented ( dollars in thousands ) : replace_table_token_11_th potential problem loans at december 31 , 2020 problem loans amounted to approximately $ 6.6 million or 0.27 % of total loans outstanding . potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses the allowance for loan losses is an estimate of probable incurred losses in the loan portfolio . loans are charged-off against the allowance when management believes a loan balance is uncollectible . subsequent recoveries , if any , are credited to the allowance for loan losses . management 's methodology for estimating the allowance balance consists of several key elements , which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics . allocations of the allowance may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged-off . we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2020 , and december 31 , 2019 , our allowance for loan losses was $ 18.3 million and $ 10.2 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2020 as compared to 2019 is primarily attributable to the ongoing economic uncertainties related to the covid-19 pandemic . also , during 2020 , the company updated the allowance for loan loss policy to increase the additional basis points allowed for the unallocated risk portion from 100 basis points to 125 basis points . in addition , the company added two new qualitative factors ; 1 . ) based on the percentage of covid modified loans to total loans and 2 . ) the average number of covid cases within our footprint . the qualitative factors were also expanded to provide additional granularity related to the hospitality and restaurant industries which are most impacted by the pandemic within our footprint . the changes in our economic factors and the addition of the covid modified factors equated to an additional $ 8.3 million in reserve . our allowance for loan loss as a percentage of total loans has increased from 0.54 % at december 31 , 2019 , to 0.77 % at december 31 , 2020. this increase is primarily due to the economic uncertainties related to the covid-19 pandemic and the modified and additional qualitive factors , as discussed above for 2020 . 44 our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2020 , the remaining accretable yield was approximately $ 16.9 million . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . also , at the end of 2020 , the outstanding principal balance on pci loans was $ 45.0 million and the carrying value
| borrowings and subordinated debt other than deposits , the company uses short-term borrowings and long-term debt to provide both funding and , to a lesser extent , regulatory capital using debt at the company level which can be downstreamed as tier 1 capital to the bank . total borrowings at december 31 , 2020 totaled $ 81.2 million , which is an increase of $ 49.6 million from december 31 , 2019 , the increase primarily consisted of a $ 50.0 million advance from the fhlb during 2020. short-term borrowings , included in borrowings , totaled $ 5.8 million at december 31 , 2020 and $ 6.2 million at december 31,2019 and consisted entirely of securities sold under repurchase agreements . long-term debt totaled $ 39.3 million at december 31 , 2020 and december 31 , 2019 , respectively and consisted entirely of subordinated debt . for more information regarding our borrowings and subordinated debt , see `` part i - item 1. consolidated financial statements - note 9 – borrowings and line of credit and note 10 – subordinated debt . '' liquidity liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window .
| 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. |
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.
```borrowings and subordinated debt other than deposits , the company uses short-term borrowings and long-term debt to provide both funding and , to a lesser extent , regulatory capital using debt at the company level which can be downstreamed as tier 1 capital to the bank . total borrowings at december 31 , 2020 totaled $ 81.2 million , which is an increase of $ 49.6 million from december 31 , 2019 , the increase primarily consisted of a $ 50.0 million advance from the fhlb during 2020. short-term borrowings , included in borrowings , totaled $ 5.8 million at december 31 , 2020 and $ 6.2 million at december 31,2019 and consisted entirely of securities sold under repurchase agreements . long-term debt totaled $ 39.3 million at december 31 , 2020 and december 31 , 2019 , respectively and consisted entirely of subordinated debt . for more information regarding our borrowings and subordinated debt , see `` part i - item 1. consolidated financial statements - note 9 – borrowings and line of credit and note 10 – subordinated debt . '' liquidity liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window .
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Suspicious Activity Report : it contained substantial tax and spending provisions intended to address the impact of the covid-19 pandemic . the cares act included the ppp , a nearly $ 350 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed through banks . these loans were intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills . the initial $ 350 billion program was supplemented in late april 2020 with $ 310 billion in additional funding . on june 5 , 2020 , the paycheck protection program flexibility act ( the “ new act ” ) was signed into law and made significant changes to the ppp to provide additional relief for small businesses . the new act increased flexibility for small businesses that have been unable to rehire employees due to lack of employee availability or have been unable to operate as normal due to covid-19 related restrictions . it extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules . the new act also relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness . in addition , the new act extended the payment deferral period for ppp loans until the date when the amount of loan forgiveness is determined and remitted to the lender . for ppp recipients who do not apply for forgiveness , the loan deferral period is 10 months after the applicable forgiveness period ends . the ppp program expired august 8 , 2020 . ● on december 21 , 2020 , the bipartisan-bicameral omnibus covid relief deal , included as a component of appropriations legislation , was passed by congress to provide economic stimulus to individuals and businesses in further response to the economic distress caused by the covid-19 pandemic . among other things , the legislation includes ( i ) payments of $ 600 for individuals making up to $ 75,000 per year , ( ii ) extension of the federal pandemic unemployment compensation program to include a $ 300 weekly enhancement in unemployment benefits beginning after december 26 , 2020 up to march 14 , 2021 , ( iii ) a temporary and targeted rental assistance program , and extends the eviction moratorium through january 31 , 2021 , ( iv ) targeted funding related to transportation , education , agriculture , nutrition and other public health measures and ( v ) approximately $ 325 billion for small business relief , including approximately $ 284 billion for a second round of ppp loans and a new simplified forgiveness procedure for ppp loans of $ 150,000 or less . we are continuing to monitor the potential development of additional legislation and further actions taken by the u.s. government . analysis of results of operations 2020 compared to 2019 net income was $ 24.3 million , or $ 1.62 per diluted common share in 2020 , compared to $ 26.5 million , or $ 1.89 per diluted common share in 2019. the tax equivalent net interest margin for 2020 was 3.61 % compared to 3.95 % for 2019. noninterest income to average assets was 0.50 % for 2020 , decreasing from 0.65 % for 2019. noninterest expense to average assets decreased to 2.50 % in 2020 , from 2.70 % in 2019. the results above include operating effects of the pfg acquisition , which was completed on march 1 , 2020. income tax expense was $ 6.6 million in 2020 with an effective tax rate of 21.2 % , compared to $ 6.9 million in 2019 with an effective tax rate of 20.6 % . 2019 compared to 2018 net income was $ 26.5 million in 2019 , compared to $ 18.1 million in 2018. net income available to common shareholders was $ 26.5 million , or $ 1.89 per diluted common share , in 2019 , compared to $ 18.1 million , or $ 1.45 per diluted common share , in 2018. the net interest margin , taxable equivalent , for 2019 was 3.95 % compared to 4.43 % for 2018. noninterest income to average assets increased from 0.34 % in 2018 , to 0.65 % in 2019 , primarily due to the $ 6.4 million termination 35 fee from the termination of the entegra merger . noninterest expense to average assets decreased from 3.00 % in 2018 to 2.70 % in 2019 as the company continued to capture economies of scale following the mergers with foothills bancorp , inc. ( “ foothills ” ) and tennessee bancshares , inc. ( “ tennessee bancshares ” ) . income tax expense was $ 6.9 million in 2019 with an effective tax rate of 20.6 % , compared to $ 3.2 million in 2018 with an effective tax rate of 15.2 % . net interest income and yield analysis the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-earning assets and interest-bearing liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . 2020 compared to 2019 net interest income , taxable equivalent , increased to $ 101.4 million in 2020 from $ 84.3 story_separator_special_tag subsequent modification of a pci loan accounted for in a pool that would otherwise meet the definition of a tdr is not reported , or accounted for , as a tdr since pooled pci loans are excluded from the scope of tdr accounting . a pci loan not accounted for in a pool would be reported , and accounted for , as a tdr if modified in a manner that meets the definition of a tdr after the acquisition date . nonperforming loans as a percentage of gross loans , net of deferred fees , was 0.24 % as of december 31 , 2020 , and 0.18 % as of december 31 , 2019 , respectively . total nonperforming assets as a percentage of total assets as of december 31 , 2020 totaled 0.31 % compared to 0.21 % as of december 31 , 2019. pci loans that are included in loan pools are reclassified at acquisition to accrual status and thus are not included as nonperforming assets . in 2020 , there was $ 30 thousand in interest income recognized on nonaccrual and restructured loans compared to the $ 358 thousand in gross interest income that would have been recognized if the loans had been current in accordance with their original terms . 43 the following table summarizes the company 's nonperforming assets as of december 31 for the periods presented ( dollars in thousands ) : replace_table_token_11_th potential problem loans at december 31 , 2020 problem loans amounted to approximately $ 6.6 million or 0.27 % of total loans outstanding . potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses the allowance for loan losses is an estimate of probable incurred losses in the loan portfolio . loans are charged-off against the allowance when management believes a loan balance is uncollectible . subsequent recoveries , if any , are credited to the allowance for loan losses . management 's methodology for estimating the allowance balance consists of several key elements , which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics . allocations of the allowance may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged-off . we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2020 , and december 31 , 2019 , our allowance for loan losses was $ 18.3 million and $ 10.2 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2020 as compared to 2019 is primarily attributable to the ongoing economic uncertainties related to the covid-19 pandemic . also , during 2020 , the company updated the allowance for loan loss policy to increase the additional basis points allowed for the unallocated risk portion from 100 basis points to 125 basis points . in addition , the company added two new qualitative factors ; 1 . ) based on the percentage of covid modified loans to total loans and 2 . ) the average number of covid cases within our footprint . the qualitative factors were also expanded to provide additional granularity related to the hospitality and restaurant industries which are most impacted by the pandemic within our footprint . the changes in our economic factors and the addition of the covid modified factors equated to an additional $ 8.3 million in reserve . our allowance for loan loss as a percentage of total loans has increased from 0.54 % at december 31 , 2019 , to 0.77 % at december 31 , 2020. this increase is primarily due to the economic uncertainties related to the covid-19 pandemic and the modified and additional qualitive factors , as discussed above for 2020 . 44 our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2020 , the remaining accretable yield was approximately $ 16.9 million . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . also , at the end of 2020 , the outstanding principal balance on pci loans was $ 45.0 million and the carrying value
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1,054 | retained earnings increased $ 2.2 million related to net income less preferred and common stock dividends and accumulated other comprehensive income increased $ 2.2 million resulting from a change in the net unrealized losses on securities available for sale and to a lesser extent the funded status of the corporation 's defined benefit plan . changes in results of operations the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million in 2011 and 2010 , respectively . the following average balance sheet and yield/rate analysis and analysis of changes in net interest income tables should be utilized in conjunction with the discussion of the net interest income and interest expense components of net income . k-22 average balance sheet and yield/rate analysis . the following table sets forth , for the periods indicated , information concerning the total dollar amounts of interest income from interest-earning assets and the resulting average yields , the total dollar amounts of interest expense on interest-bearing liabilities and the resulting average costs , net interest income , interest rate spread and the net interest margin earned on average interest-earning assets . for purposes of this table , average loan balances include non-accrual loans and exclude the allowance for loan losses and interest income includes accretion of net deferred loan fees . interest and yields on tax-exempt loans and securities ( tax-exempt for federal income tax purposes ) are shown on a fully tax equivalent basis . the information is based on average daily balances during the periods presented . replace_table_token_12_th k-23 analysis of changes in net interest income . the following table analyzes the changes in interest income and interest expense in terms of : ( 1 ) changes in volume of interest-earning assets and interest-bearing liabilities and ( 2 ) changes in yields and rates . the table reflects the extent to which changes in the corporation 's interest income and interest expense are attributable to changes in rate ( change in rate multiplied by prior year volume ) , changes in volume ( changes in volume multiplied by prior year rate ) and changes attributable to the combined impact of volume/rate ( change in rate multiplied by change in volume ) . the changes attributable to the combined impact of volume/rate are allocated on a consistent basis between the volume and rate variances . changes in interest income on loans and securities reflect the changes in interest income on a fully tax equivalent basis . replace_table_token_13_th 2011 results compared to 2010 results the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million for 2011 and 2010 , respectively . the $ 764,000 or 24.9 % increase in net income was attributed to an increase in net interest income of $ 624,000 and a decrease in provision for loan losses of $ 886,000 , partially offset by a decrease in noninterest income of $ 365,000 and increases in noninterest expense and provision for income taxes of $ 232,000 and $ 149,000 , respectively . net interest income . the primary source of the corporation 's revenue is net interest income . net interest income is the difference between interest income on earning assets such as loans and securities , and interest expense on liabilities , such as deposits and borrowed funds , used to fund the earning assets . net interest income is impacted by the volume and composition of interest-earning assets and interest-bearing liabilities , and changes in the level of interest rates . tax equivalent net interest income increased $ 749,000 or 4.9 % to $ 16.2 million for 2011 , compared to $ 15.4 million for 2010. this increase in net interest income can be attributed to a decrease in interest expense of $ 1.2 million , partially offset by a decrease in tax equivalent interest income of $ 448,000. interest income . tax equivalent interest income decreased $ 448,000 or 2.0 % to $ 22.0 million for 2011 , compared to $ 22.5 million for 2010. this decrease can be attributed to decreases in interest earned on loans and interest earning deposits of $ 381,000 and $ 104,000 , respectively , partially offset by increases in interest earned on securities and federal bank stocks of $ 28,000 and $ 9,000 , respectively . tax equivalent interest earned on loans receivable decreased $ 381,000 or 2.1 % to $ 17.6 million for 2011 , compared to $ 18.0 million for 2010. during that time , the yield on loans decreased 34 basis points to 5.69 % for 2011 , versus 6.03 % for 2010 causing a $ 1.0 million decrease in interest income . offsetting this unfavorable yield decline , average loans increased $ 11.1 million or 3.7 % , generating $ 651,000 of additional loan interest income . k-24 tax equivalent interest earned on securities increased $ 28,000 to $ 4.2 million for 2011 and 2010. during this time , average securities increased $ 1.6 million or 1.3 % accounting for $ 53,000 in additional security interest income . the average yield on securities decreased 2 basis points to 3.31 % for 2011 , versus 3.33 % for 2010 causing a $ 25,000 decrease in interest income . interest earned on interest-earning deposit accounts decreased $ 104,000 or 37.5 % to $ 173,000 for 2011 , compared to $ 277,000 for 2010. the average yield on these accounts decreased 34 basis points or 32.7 % resulting in an $ 85,000 decrease in interest income . average interest-earning deposits decreased $ 2.0 million or 7.3 % . this decrease caused a $ 19,000 decrease in interest income . interest earned on federal bank stocks increased $ 9,000 or 19.6 % to $ 55,000 for 2011 , compared to $ 46,000 for 2010. interest expense . story_separator_special_tag in the current interest rate environment , liquidity and the maturity structure of the corporation 's assets and liabilities are critical to the maintenance of acceptable performance levels . capital resources total stockholders ' equity increased $ 11.6 million or 29.7 % to $ 50.7 million at december 31 , 2011 from $ 39.1 million at december 31 , 2010. net income of $ 3.8 million in 2011 represented an increase in earnings of $ 764,000 or 24.9 % compared to 2010. returns on average equity and assets were 8.44 % and 0.78 % , respectively , for 2011. the corporation enhanced its already strong capital position as its capital to assets ratio increased to 10.3 % at december 31 , 2011 from 8.1 % at december 31 , 2010. during the first quarter of 2011 , the corporation raised $ 4.6 million in capital , net of expenses through the issuance of 290,004 shares of common stock in a private placement to accredited investors . during the third quarter of 2011 , the corporation received a $ 10.0 million investment from the u.s. treasury department under the sblf , a portion of which was used to fully redeem the $ 7.5 million of preferred stock issued to the u.s. treasury under the cpp . in addition , stockholders have taken part in the corporation 's dividend reinvestment plan introduced during 2003 with 46 % of registered shareholder accounts active in the plan at december 31 , 2011. capital adequacy is intended to enhance the corporation 's ability to support growth while protecting the interest of shareholders and depositors and to ensure that capital ratios are in compliance with regulatory minimum requirements . regulatory agencies have developed certain capital ratio requirements that are used to assist them in monitoring the safety and soundness of financial institutions . at december 31 , 2011 , the corporation and the bank were in excess of all regulatory capital requirements . liquidity the corporation 's primary sources of funds generally have been deposits obtained through the offices of the bank , borrowings from the fhlb , and amortization and prepayments of outstanding loans and maturing securities . during 2011 , the corporation used its sources of funds primarily to fund loan commitments . as of december 31 , 2011 , the corporation had outstanding loan commitments , including undisbursed loans and amounts available under credit lines , totaling $ 43.8 million , and standby letters of credit totaling $ 245,000. the bank is required by the occ to establish policies to monitor and manage liquidity levels to ensure the bank 's ability to meet demands for customer withdrawals and the repayment of short-term borrowings , and the bank is currently in compliance with all liquidity policy limits . at december 31 , 2011 , time deposits amounted to $ 145.5 million or 34.9 % of the corporation 's total consolidated deposits , including approximately $ 40.4 million scheduled to mature within the next year . management of the corporation believes that the corporation has adequate resources to fund all of its commitments , that all of its commitments will be funded as required by related maturity dates and that , based upon past experience and current pricing policies , it can adjust the rates of time deposits to retain a substantial portion of maturing liabilities . k-29 aside from liquidity available from customer deposits or through sales and maturities of securities , the corporation has alternative sources of funds . these sources include a $ 5.5 million line of credit with a correspondent bank of which $ 0 is outstanding , a line of credit and term borrowing capacity from the fhlb and , to a more limited extent , through the sale of loans . at december 31 , 2011 , the corporation 's borrowing capacity with the fhlb , net of funds borrowed , was $ 139.3 million . the corporation paid quarterly cash dividends over the past two years . the corporation paid dividends of $ 0.16 and $ 0.14 per common share for the four quarters of 2011 and 2010 , respectively . on february 15 , 2012 , the corporation declared a quarterly dividend of $ 0.18 per common share payable on march 23 , 2012 to shareholders of record on march 1 , 2012. the determination of future dividends on the corporation 's common stock will depend on conditions existing at that time with consideration given to the corporation 's earnings , capital and liquidity needs , among other factors . management is not aware of any conditions , including any regulatory recommendations or requirements , which would adversely impact its liquidity or its ability to meet funding needs in the ordinary course of business . critical accounting policies the corporation 's consolidated financial statements are prepared in accordance with gaap and follow general practices within the industry in which it operates . application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes . these estimates are based on information available as of the date of the financial statements ; accordingly , as this information changes , the financial statements could reflect different estimates or judgments . certain policies inherently have a greater reliance on the use of estimates , and as such have a greater possibility of producing results that could be materially different than originally reported . estimates or judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . the fair values and the information used to record
| cash and cash equivalents . these accounts increased $ 9.2 million or 48.2 % to $ 28.2 million at december 31 , 2011 from $ 19.0 million at december 31 , 2010. this increase primarily related to proceeds from investment security calls received in late december 2011 , which were not redeployed into securities or loans before year-end . typically , cash accounts are increased by net operating results , deposits by customers into savings and checking accounts , loan and security repayments and proceeds from borrowed funds . decreases result from customer deposit withdrawals , new loan originations or other loan fundings , security purchases , repayments of borrowed funds and cash dividends to stockholders . securities . securities decreased $ 2.7 million or 2.1 % to $ 123.2 million at december 31 , 2011 from $ 125.8 million at december 31 , 2010. this decrease was partly related to the utilization of cash received from investment security calls to fund loan originations rather than security purchases . partially offsetting this deployment strategy , net unrealized gains associated with the investment portfolio increased $ 4.2 million to $ 4.5 million at december 31 , 2011 from $ 260,000 at december 31 , 2010 primarily due to the decline in market interest rates during 2011. k-20 loans receivable . net loans receivable increased $ 6.4 million or 2.1 % to $ 312.5 million at december 31 , 2011 from $ 306.2 million at december 31 , 2010 as residential first mortgages increased $ 9.0 million or 10.7 % , commercial real estate loans increased $ 1.7 million or 1.9 % and commercial business loans increased $ 46,000 , partially offset by a $ 4.2 million or 5.6 % decrease in home equity loans and lines of credit and an $ 801,000 decrease in consumer loans . non-performing assets . non-performing assets include non-accrual loans , loans 90 days past due and still accruing , repossessions and real estate owned .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents . these accounts increased $ 9.2 million or 48.2 % to $ 28.2 million at december 31 , 2011 from $ 19.0 million at december 31 , 2010. this increase primarily related to proceeds from investment security calls received in late december 2011 , which were not redeployed into securities or loans before year-end . typically , cash accounts are increased by net operating results , deposits by customers into savings and checking accounts , loan and security repayments and proceeds from borrowed funds . decreases result from customer deposit withdrawals , new loan originations or other loan fundings , security purchases , repayments of borrowed funds and cash dividends to stockholders . securities . securities decreased $ 2.7 million or 2.1 % to $ 123.2 million at december 31 , 2011 from $ 125.8 million at december 31 , 2010. this decrease was partly related to the utilization of cash received from investment security calls to fund loan originations rather than security purchases . partially offsetting this deployment strategy , net unrealized gains associated with the investment portfolio increased $ 4.2 million to $ 4.5 million at december 31 , 2011 from $ 260,000 at december 31 , 2010 primarily due to the decline in market interest rates during 2011. k-20 loans receivable . net loans receivable increased $ 6.4 million or 2.1 % to $ 312.5 million at december 31 , 2011 from $ 306.2 million at december 31 , 2010 as residential first mortgages increased $ 9.0 million or 10.7 % , commercial real estate loans increased $ 1.7 million or 1.9 % and commercial business loans increased $ 46,000 , partially offset by a $ 4.2 million or 5.6 % decrease in home equity loans and lines of credit and an $ 801,000 decrease in consumer loans . non-performing assets . non-performing assets include non-accrual loans , loans 90 days past due and still accruing , repossessions and real estate owned .
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Suspicious Activity Report : retained earnings increased $ 2.2 million related to net income less preferred and common stock dividends and accumulated other comprehensive income increased $ 2.2 million resulting from a change in the net unrealized losses on securities available for sale and to a lesser extent the funded status of the corporation 's defined benefit plan . changes in results of operations the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million in 2011 and 2010 , respectively . the following average balance sheet and yield/rate analysis and analysis of changes in net interest income tables should be utilized in conjunction with the discussion of the net interest income and interest expense components of net income . k-22 average balance sheet and yield/rate analysis . the following table sets forth , for the periods indicated , information concerning the total dollar amounts of interest income from interest-earning assets and the resulting average yields , the total dollar amounts of interest expense on interest-bearing liabilities and the resulting average costs , net interest income , interest rate spread and the net interest margin earned on average interest-earning assets . for purposes of this table , average loan balances include non-accrual loans and exclude the allowance for loan losses and interest income includes accretion of net deferred loan fees . interest and yields on tax-exempt loans and securities ( tax-exempt for federal income tax purposes ) are shown on a fully tax equivalent basis . the information is based on average daily balances during the periods presented . replace_table_token_12_th k-23 analysis of changes in net interest income . the following table analyzes the changes in interest income and interest expense in terms of : ( 1 ) changes in volume of interest-earning assets and interest-bearing liabilities and ( 2 ) changes in yields and rates . the table reflects the extent to which changes in the corporation 's interest income and interest expense are attributable to changes in rate ( change in rate multiplied by prior year volume ) , changes in volume ( changes in volume multiplied by prior year rate ) and changes attributable to the combined impact of volume/rate ( change in rate multiplied by change in volume ) . the changes attributable to the combined impact of volume/rate are allocated on a consistent basis between the volume and rate variances . changes in interest income on loans and securities reflect the changes in interest income on a fully tax equivalent basis . replace_table_token_13_th 2011 results compared to 2010 results the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million for 2011 and 2010 , respectively . the $ 764,000 or 24.9 % increase in net income was attributed to an increase in net interest income of $ 624,000 and a decrease in provision for loan losses of $ 886,000 , partially offset by a decrease in noninterest income of $ 365,000 and increases in noninterest expense and provision for income taxes of $ 232,000 and $ 149,000 , respectively . net interest income . the primary source of the corporation 's revenue is net interest income . net interest income is the difference between interest income on earning assets such as loans and securities , and interest expense on liabilities , such as deposits and borrowed funds , used to fund the earning assets . net interest income is impacted by the volume and composition of interest-earning assets and interest-bearing liabilities , and changes in the level of interest rates . tax equivalent net interest income increased $ 749,000 or 4.9 % to $ 16.2 million for 2011 , compared to $ 15.4 million for 2010. this increase in net interest income can be attributed to a decrease in interest expense of $ 1.2 million , partially offset by a decrease in tax equivalent interest income of $ 448,000. interest income . tax equivalent interest income decreased $ 448,000 or 2.0 % to $ 22.0 million for 2011 , compared to $ 22.5 million for 2010. this decrease can be attributed to decreases in interest earned on loans and interest earning deposits of $ 381,000 and $ 104,000 , respectively , partially offset by increases in interest earned on securities and federal bank stocks of $ 28,000 and $ 9,000 , respectively . tax equivalent interest earned on loans receivable decreased $ 381,000 or 2.1 % to $ 17.6 million for 2011 , compared to $ 18.0 million for 2010. during that time , the yield on loans decreased 34 basis points to 5.69 % for 2011 , versus 6.03 % for 2010 causing a $ 1.0 million decrease in interest income . offsetting this unfavorable yield decline , average loans increased $ 11.1 million or 3.7 % , generating $ 651,000 of additional loan interest income . k-24 tax equivalent interest earned on securities increased $ 28,000 to $ 4.2 million for 2011 and 2010. during this time , average securities increased $ 1.6 million or 1.3 % accounting for $ 53,000 in additional security interest income . the average yield on securities decreased 2 basis points to 3.31 % for 2011 , versus 3.33 % for 2010 causing a $ 25,000 decrease in interest income . interest earned on interest-earning deposit accounts decreased $ 104,000 or 37.5 % to $ 173,000 for 2011 , compared to $ 277,000 for 2010. the average yield on these accounts decreased 34 basis points or 32.7 % resulting in an $ 85,000 decrease in interest income . average interest-earning deposits decreased $ 2.0 million or 7.3 % . this decrease caused a $ 19,000 decrease in interest income . interest earned on federal bank stocks increased $ 9,000 or 19.6 % to $ 55,000 for 2011 , compared to $ 46,000 for 2010. interest expense . story_separator_special_tag in the current interest rate environment , liquidity and the maturity structure of the corporation 's assets and liabilities are critical to the maintenance of acceptable performance levels . capital resources total stockholders ' equity increased $ 11.6 million or 29.7 % to $ 50.7 million at december 31 , 2011 from $ 39.1 million at december 31 , 2010. net income of $ 3.8 million in 2011 represented an increase in earnings of $ 764,000 or 24.9 % compared to 2010. returns on average equity and assets were 8.44 % and 0.78 % , respectively , for 2011. the corporation enhanced its already strong capital position as its capital to assets ratio increased to 10.3 % at december 31 , 2011 from 8.1 % at december 31 , 2010. during the first quarter of 2011 , the corporation raised $ 4.6 million in capital , net of expenses through the issuance of 290,004 shares of common stock in a private placement to accredited investors . during the third quarter of 2011 , the corporation received a $ 10.0 million investment from the u.s. treasury department under the sblf , a portion of which was used to fully redeem the $ 7.5 million of preferred stock issued to the u.s. treasury under the cpp . in addition , stockholders have taken part in the corporation 's dividend reinvestment plan introduced during 2003 with 46 % of registered shareholder accounts active in the plan at december 31 , 2011. capital adequacy is intended to enhance the corporation 's ability to support growth while protecting the interest of shareholders and depositors and to ensure that capital ratios are in compliance with regulatory minimum requirements . regulatory agencies have developed certain capital ratio requirements that are used to assist them in monitoring the safety and soundness of financial institutions . at december 31 , 2011 , the corporation and the bank were in excess of all regulatory capital requirements . liquidity the corporation 's primary sources of funds generally have been deposits obtained through the offices of the bank , borrowings from the fhlb , and amortization and prepayments of outstanding loans and maturing securities . during 2011 , the corporation used its sources of funds primarily to fund loan commitments . as of december 31 , 2011 , the corporation had outstanding loan commitments , including undisbursed loans and amounts available under credit lines , totaling $ 43.8 million , and standby letters of credit totaling $ 245,000. the bank is required by the occ to establish policies to monitor and manage liquidity levels to ensure the bank 's ability to meet demands for customer withdrawals and the repayment of short-term borrowings , and the bank is currently in compliance with all liquidity policy limits . at december 31 , 2011 , time deposits amounted to $ 145.5 million or 34.9 % of the corporation 's total consolidated deposits , including approximately $ 40.4 million scheduled to mature within the next year . management of the corporation believes that the corporation has adequate resources to fund all of its commitments , that all of its commitments will be funded as required by related maturity dates and that , based upon past experience and current pricing policies , it can adjust the rates of time deposits to retain a substantial portion of maturing liabilities . k-29 aside from liquidity available from customer deposits or through sales and maturities of securities , the corporation has alternative sources of funds . these sources include a $ 5.5 million line of credit with a correspondent bank of which $ 0 is outstanding , a line of credit and term borrowing capacity from the fhlb and , to a more limited extent , through the sale of loans . at december 31 , 2011 , the corporation 's borrowing capacity with the fhlb , net of funds borrowed , was $ 139.3 million . the corporation paid quarterly cash dividends over the past two years . the corporation paid dividends of $ 0.16 and $ 0.14 per common share for the four quarters of 2011 and 2010 , respectively . on february 15 , 2012 , the corporation declared a quarterly dividend of $ 0.18 per common share payable on march 23 , 2012 to shareholders of record on march 1 , 2012. the determination of future dividends on the corporation 's common stock will depend on conditions existing at that time with consideration given to the corporation 's earnings , capital and liquidity needs , among other factors . management is not aware of any conditions , including any regulatory recommendations or requirements , which would adversely impact its liquidity or its ability to meet funding needs in the ordinary course of business . critical accounting policies the corporation 's consolidated financial statements are prepared in accordance with gaap and follow general practices within the industry in which it operates . application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes . these estimates are based on information available as of the date of the financial statements ; accordingly , as this information changes , the financial statements could reflect different estimates or judgments . certain policies inherently have a greater reliance on the use of estimates , and as such have a greater possibility of producing results that could be materially different than originally reported . estimates or judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . the fair values and the information used to record
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1,055 | note 7 - income taxes for the years ended march 31 , 2018 and 2017 , the company has incurred net losses before and , therefore , has no tax liability . the net deferred tax asset generated by the loss carry-forward has been fully reserved . the cumulative net operating loss carry-forward is approximately $ 536,000 and $ 446,000 at march 31 , 2018 and 2017 , respectively , and will expire beginning in the year 2034. the primary difference between the company 's statutory and effective tax rate relates to non-deductible stock based compensation charges and a full valuation allowance being recorded . deferred tax assets as of march 31 , 2018 and 2017 consisted of tax effected net operating losses of $ 160,087 and $ 151,729 , respectively . during the years ended march 31 , 2018 and 2017 , the valuation allowance increased by $ 8,358 and $ 94,011 , respectively . the approximate reduction of the tax effected net operating losses due to the change in the corporate income tax rates was approximately $ 22,000 during the year ended march 31 , 2018. the company has identified the united states federal tax returns as its major tax jurisdiction . the united states federal return years 2014 through 2017 are still subject to tax examination by the united states internal revenue service ; however , we do not currently have any ongoing tax examinations . the company is subject to examination by the california franchise tax board for the years ended 2014 through 2017 and currently does not have any ongoing tax examinations . on december 22 , 2017 , the 2017 tax cuts and jobs act ( the tax act ) was enacted into law and the new legislation contains several key tax provisions that affected us , including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21 % effective january 1 , 2018 , among others . we are required to recognize the effect of the tax law changes in the period of enactment , such as determining the transition tax , remeasuring our u.s. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation are expected over the next 12 months , we consider the accounting of the transition tax , deferred tax re-measurements , and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions . we expect to complete our analysis within the measurement period in accordance with sab 118. note 8 - related party transactions during the year ended march 31 , 2018 and 2017 , the company recorded revenues of $ 43,510 and $ 198,074 for services performed for two entities partially owned by the company 's former chief executive officer , respectively . the company performed engineering services for the related entities and billed its services based upon time and expenses incurred . the company 's management maintained that the fees charged to the related party are no less favorable than would be charged to unrelated parties for similar services . in addition , during the year ended march 31 , 2018 , the company paid $ 9,600 to one of these related entities in connection with testing services . the revenues and expense are included within discontinued operations . 32 geo point resources , inc. notes to the consolidated financial story_separator_special_tag when used in this annual report , the words may , will , expect , anticipate , continue , estimate , project , intend , and similar expressions are intended to identify forward-looking statements regarding events , conditions , and financial trends that may affect our future plans of operations , business strategy , operating results , and financial position . persons reviewing this annual report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors . our future results and shareholder values may differ materially from those expressed in these forward-looking statements . many of the factors that will determine these results and values are beyond our ability to control or predict . we may be required to update these forward-looking statements from time to time as circumstances change ; however , we undertake no duty to do so . plan of operation we discontinued our business operations comprising the engineering and environmental divisions ' operations in february 2018 when our former ceo died . we now intend to focus our efforts on the tor-technology business described in item 1. business above , and are waiting for the delivery of the tornado m machine in july 2018. results of operations year ended march 31 , 2018 , compared to year ended march 31 , 2017 during the fiscal year ended march 31 , 2018 , we terminated our environmental remediation business and commenced our tortec technology business . as a result we had a loss from discontinued operations of $ 82,580 in the fiscal year ended march 31 , 2018 compared to a gain of $ 48,216 in the prior year . because of the discontinued operations , we reported no sales in either fiscal year ended march 31 , 2018 or 2017. general and administrative expenses during the fiscal year ended march 31 story_separator_special_tag note 7 - income taxes for the years ended march 31 , 2018 and 2017 , the company has incurred net losses before and , therefore , has no tax liability . the net deferred tax asset generated by the loss carry-forward has been fully reserved . the cumulative net operating loss carry-forward is approximately $ 536,000 and $ 446,000 at march 31 , 2018 and 2017 , respectively , and will expire beginning in the year 2034. the primary difference between the company 's statutory and effective tax rate relates to non-deductible stock based compensation charges and a full valuation allowance being recorded . deferred tax assets as of march 31 , 2018 and 2017 consisted of tax effected net operating losses of $ 160,087 and $ 151,729 , respectively . during the years ended march 31 , 2018 and 2017 , the valuation allowance increased by $ 8,358 and $ 94,011 , respectively . the approximate reduction of the tax effected net operating losses due to the change in the corporate income tax rates was approximately $ 22,000 during the year ended march 31 , 2018. the company has identified the united states federal tax returns as its major tax jurisdiction . the united states federal return years 2014 through 2017 are still subject to tax examination by the united states internal revenue service ; however , we do not currently have any ongoing tax examinations . the company is subject to examination by the california franchise tax board for the years ended 2014 through 2017 and currently does not have any ongoing tax examinations . on december 22 , 2017 , the 2017 tax cuts and jobs act ( the tax act ) was enacted into law and the new legislation contains several key tax provisions that affected us , including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21 % effective january 1 , 2018 , among others . we are required to recognize the effect of the tax law changes in the period of enactment , such as determining the transition tax , remeasuring our u.s. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation are expected over the next 12 months , we consider the accounting of the transition tax , deferred tax re-measurements , and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions . we expect to complete our analysis within the measurement period in accordance with sab 118. note 8 - related party transactions during the year ended march 31 , 2018 and 2017 , the company recorded revenues of $ 43,510 and $ 198,074 for services performed for two entities partially owned by the company 's former chief executive officer , respectively . the company performed engineering services for the related entities and billed its services based upon time and expenses incurred . the company 's management maintained that the fees charged to the related party are no less favorable than would be charged to unrelated parties for similar services . in addition , during the year ended march 31 , 2018 , the company paid $ 9,600 to one of these related entities in connection with testing services . the revenues and expense are included within discontinued operations . 32 geo point resources , inc. notes to the consolidated financial story_separator_special_tag when used in this annual report , the words may , will , expect , anticipate , continue , estimate , project , intend , and similar expressions are intended to identify forward-looking statements regarding events , conditions , and financial trends that may affect our future plans of operations , business strategy , operating results , and financial position . persons reviewing this annual report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors . our future results and shareholder values may differ materially from those expressed in these forward-looking statements . many of the factors that will determine these results and values are beyond our ability to control or predict . we may be required to update these forward-looking statements from time to time as circumstances change ; however , we undertake no duty to do so . plan of operation we discontinued our business operations comprising the engineering and environmental divisions ' operations in february 2018 when our former ceo died . we now intend to focus our efforts on the tor-technology business described in item 1. business above , and are waiting for the delivery of the tornado m machine in july 2018. results of operations year ended march 31 , 2018 , compared to year ended march 31 , 2017 during the fiscal year ended march 31 , 2018 , we terminated our environmental remediation business and commenced our tortec technology business . as a result we had a loss from discontinued operations of $ 82,580 in the fiscal year ended march 31 , 2018 compared to a gain of $ 48,216 in the prior year . because of the discontinued operations , we reported no sales in either fiscal year ended march 31 , 2018 or 2017. general and administrative expenses during the fiscal year ended march 31
| liquidity and capital resources current assets at march 31 , 2018 , included $ 31,684 in cash , a decrease of $ 7,615 from total current assets of $ 39,299 at march 31 , 2017. at march 31 , 2018 , we had a negative working capital of $ 28,759 , as compared to negative working capital of $ 484,495 at march 31 , 2017. capital resources during the fiscal year ended march 31 , 2018 , operating activities used cash of $ 157,164 , as compared to $ 267 in net cash used for the fiscal year ended march 31 , 2017. during the fiscal year ended march 31 , 2018 , investing activities provided cash of $ 93,910 , as compared to $ 78,400 cash used in investing activities during the fiscal year ended march 31 , 2017. in 2018 , we received cash from reserved note receivable of $ 20,000 and $ 72,910 cash received in the tortec acquisition . we also received $ 1,000 in other assets . in 2017 we purchased equipment which we needed for various jobs for $ 78,400. during the fiscal year ended march 31 , 2018 , financing activities provided cash of $ 55,639 , as compared to $ 85,600 in cash provided for the fiscal year ended march 31 , 2017. financing activities consisted of $ 21,000 in proceeds from short term advances related parties and $ 34,639in an increase in the line of credit in fiscal year 2018. in fiscal year 2017 , we received $ 40,000 in proceeds from note payable and $ 45,600 in an increase in proceeds from our line of credit , the proceeds of which were used for operations .
| 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. |
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 current assets at march 31 , 2018 , included $ 31,684 in cash , a decrease of $ 7,615 from total current assets of $ 39,299 at march 31 , 2017. at march 31 , 2018 , we had a negative working capital of $ 28,759 , as compared to negative working capital of $ 484,495 at march 31 , 2017. capital resources during the fiscal year ended march 31 , 2018 , operating activities used cash of $ 157,164 , as compared to $ 267 in net cash used for the fiscal year ended march 31 , 2017. during the fiscal year ended march 31 , 2018 , investing activities provided cash of $ 93,910 , as compared to $ 78,400 cash used in investing activities during the fiscal year ended march 31 , 2017. in 2018 , we received cash from reserved note receivable of $ 20,000 and $ 72,910 cash received in the tortec acquisition . we also received $ 1,000 in other assets . in 2017 we purchased equipment which we needed for various jobs for $ 78,400. during the fiscal year ended march 31 , 2018 , financing activities provided cash of $ 55,639 , as compared to $ 85,600 in cash provided for the fiscal year ended march 31 , 2017. financing activities consisted of $ 21,000 in proceeds from short term advances related parties and $ 34,639in an increase in the line of credit in fiscal year 2018. in fiscal year 2017 , we received $ 40,000 in proceeds from note payable and $ 45,600 in an increase in proceeds from our line of credit , the proceeds of which were used for operations .
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Suspicious Activity Report : note 7 - income taxes for the years ended march 31 , 2018 and 2017 , the company has incurred net losses before and , therefore , has no tax liability . the net deferred tax asset generated by the loss carry-forward has been fully reserved . the cumulative net operating loss carry-forward is approximately $ 536,000 and $ 446,000 at march 31 , 2018 and 2017 , respectively , and will expire beginning in the year 2034. the primary difference between the company 's statutory and effective tax rate relates to non-deductible stock based compensation charges and a full valuation allowance being recorded . deferred tax assets as of march 31 , 2018 and 2017 consisted of tax effected net operating losses of $ 160,087 and $ 151,729 , respectively . during the years ended march 31 , 2018 and 2017 , the valuation allowance increased by $ 8,358 and $ 94,011 , respectively . the approximate reduction of the tax effected net operating losses due to the change in the corporate income tax rates was approximately $ 22,000 during the year ended march 31 , 2018. the company has identified the united states federal tax returns as its major tax jurisdiction . the united states federal return years 2014 through 2017 are still subject to tax examination by the united states internal revenue service ; however , we do not currently have any ongoing tax examinations . the company is subject to examination by the california franchise tax board for the years ended 2014 through 2017 and currently does not have any ongoing tax examinations . on december 22 , 2017 , the 2017 tax cuts and jobs act ( the tax act ) was enacted into law and the new legislation contains several key tax provisions that affected us , including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21 % effective january 1 , 2018 , among others . we are required to recognize the effect of the tax law changes in the period of enactment , such as determining the transition tax , remeasuring our u.s. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation are expected over the next 12 months , we consider the accounting of the transition tax , deferred tax re-measurements , and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions . we expect to complete our analysis within the measurement period in accordance with sab 118. note 8 - related party transactions during the year ended march 31 , 2018 and 2017 , the company recorded revenues of $ 43,510 and $ 198,074 for services performed for two entities partially owned by the company 's former chief executive officer , respectively . the company performed engineering services for the related entities and billed its services based upon time and expenses incurred . the company 's management maintained that the fees charged to the related party are no less favorable than would be charged to unrelated parties for similar services . in addition , during the year ended march 31 , 2018 , the company paid $ 9,600 to one of these related entities in connection with testing services . the revenues and expense are included within discontinued operations . 32 geo point resources , inc. notes to the consolidated financial story_separator_special_tag when used in this annual report , the words may , will , expect , anticipate , continue , estimate , project , intend , and similar expressions are intended to identify forward-looking statements regarding events , conditions , and financial trends that may affect our future plans of operations , business strategy , operating results , and financial position . persons reviewing this annual report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors . our future results and shareholder values may differ materially from those expressed in these forward-looking statements . many of the factors that will determine these results and values are beyond our ability to control or predict . we may be required to update these forward-looking statements from time to time as circumstances change ; however , we undertake no duty to do so . plan of operation we discontinued our business operations comprising the engineering and environmental divisions ' operations in february 2018 when our former ceo died . we now intend to focus our efforts on the tor-technology business described in item 1. business above , and are waiting for the delivery of the tornado m machine in july 2018. results of operations year ended march 31 , 2018 , compared to year ended march 31 , 2017 during the fiscal year ended march 31 , 2018 , we terminated our environmental remediation business and commenced our tortec technology business . as a result we had a loss from discontinued operations of $ 82,580 in the fiscal year ended march 31 , 2018 compared to a gain of $ 48,216 in the prior year . because of the discontinued operations , we reported no sales in either fiscal year ended march 31 , 2018 or 2017. general and administrative expenses during the fiscal year ended march 31 story_separator_special_tag note 7 - income taxes for the years ended march 31 , 2018 and 2017 , the company has incurred net losses before and , therefore , has no tax liability . the net deferred tax asset generated by the loss carry-forward has been fully reserved . the cumulative net operating loss carry-forward is approximately $ 536,000 and $ 446,000 at march 31 , 2018 and 2017 , respectively , and will expire beginning in the year 2034. the primary difference between the company 's statutory and effective tax rate relates to non-deductible stock based compensation charges and a full valuation allowance being recorded . deferred tax assets as of march 31 , 2018 and 2017 consisted of tax effected net operating losses of $ 160,087 and $ 151,729 , respectively . during the years ended march 31 , 2018 and 2017 , the valuation allowance increased by $ 8,358 and $ 94,011 , respectively . the approximate reduction of the tax effected net operating losses due to the change in the corporate income tax rates was approximately $ 22,000 during the year ended march 31 , 2018. the company has identified the united states federal tax returns as its major tax jurisdiction . the united states federal return years 2014 through 2017 are still subject to tax examination by the united states internal revenue service ; however , we do not currently have any ongoing tax examinations . the company is subject to examination by the california franchise tax board for the years ended 2014 through 2017 and currently does not have any ongoing tax examinations . on december 22 , 2017 , the 2017 tax cuts and jobs act ( the tax act ) was enacted into law and the new legislation contains several key tax provisions that affected us , including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21 % effective january 1 , 2018 , among others . we are required to recognize the effect of the tax law changes in the period of enactment , such as determining the transition tax , remeasuring our u.s. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation are expected over the next 12 months , we consider the accounting of the transition tax , deferred tax re-measurements , and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions . we expect to complete our analysis within the measurement period in accordance with sab 118. note 8 - related party transactions during the year ended march 31 , 2018 and 2017 , the company recorded revenues of $ 43,510 and $ 198,074 for services performed for two entities partially owned by the company 's former chief executive officer , respectively . the company performed engineering services for the related entities and billed its services based upon time and expenses incurred . the company 's management maintained that the fees charged to the related party are no less favorable than would be charged to unrelated parties for similar services . in addition , during the year ended march 31 , 2018 , the company paid $ 9,600 to one of these related entities in connection with testing services . the revenues and expense are included within discontinued operations . 32 geo point resources , inc. notes to the consolidated financial story_separator_special_tag when used in this annual report , the words may , will , expect , anticipate , continue , estimate , project , intend , and similar expressions are intended to identify forward-looking statements regarding events , conditions , and financial trends that may affect our future plans of operations , business strategy , operating results , and financial position . persons reviewing this annual report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors . our future results and shareholder values may differ materially from those expressed in these forward-looking statements . many of the factors that will determine these results and values are beyond our ability to control or predict . we may be required to update these forward-looking statements from time to time as circumstances change ; however , we undertake no duty to do so . plan of operation we discontinued our business operations comprising the engineering and environmental divisions ' operations in february 2018 when our former ceo died . we now intend to focus our efforts on the tor-technology business described in item 1. business above , and are waiting for the delivery of the tornado m machine in july 2018. results of operations year ended march 31 , 2018 , compared to year ended march 31 , 2017 during the fiscal year ended march 31 , 2018 , we terminated our environmental remediation business and commenced our tortec technology business . as a result we had a loss from discontinued operations of $ 82,580 in the fiscal year ended march 31 , 2018 compared to a gain of $ 48,216 in the prior year . because of the discontinued operations , we reported no sales in either fiscal year ended march 31 , 2018 or 2017. general and administrative expenses during the fiscal year ended march 31
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1,056 | further insurance recoveries will be recorded when considered probable for recovery . 2019 overview sales for 2019 were $ 2.3 billion , a 12 % decrease from sales of $ 2.6 billion in 2018. during 2019 , sales to customers in our various industry sectors fluctuated from 2018 as follows : · industrials decreased by 8 % , · a & d increased by 6 % , · medical increased by 14 % , · semi-cap decreased by 22 % , · computing decreased by 38 % , and · telecommunications decreased by 12 % . the overall revenue decrease was due primarily to our planned exit of a legacy computing contract which was completed in 2019 ( as discussed below ) , in addition to the decline in the overall semi-cap market , reduced revenues 33 from other computing and telecommunications customers and the impact of the ransomware incident ( as discussed below ) . our sales depend on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , can adversely affect us . a substantial percentage of our sales are made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 38 % and 44 % of our sales in 2019 and 2018 , respectively . in 2019 , there was no single customer with sales over 10 % of our sales . in 2018 , sales to international business machines corporation ( ibm ) represented 13 % of our sales . as part of our ongoing process to review contracts that are marginal and dilutive to our gross margin , we made the decision to not renew the contract with a large computing customer that was to expire at the end of 2019. during the second quarter of 2019 , we completed the final build out of this legacy contract and in the third quarter had an immaterial amount of revenue from this contract as the transition was completed . during 2019 , we incurred an $ 11.0 million charge for the write-down of inventory and a provision for accounts receivable associated with the insolvency of a customer . these charges increased cost of sales by $ 0.9 million and selling , general and administrative expenses by $ 10.1 million . in 2019 , we also recovered $ 1.7 million of amounts written down in 2018 associated with the insolvency of another customer . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on the type of services involved , location of production , size of the program , complexity of the product and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and unabsorbed manufacturing overhead costs . in addition , a number of our new and higher-volume programs remain subject to competitive constraints that can exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . gross profit can also be impacted by other situations , such as the ransomware incident experienced in 2019. we have undertaken initiatives to restructure our business operations with the intention of improving utilization and reducing costs . during 2019 , we recognized $ 8.5 million of restructuring charges in connection with the announced closure of two facilities and other reductions in workforce of certain facilities primarily in the americas . in addition , we incurred $ 4.6 million in charges primarily related to our ceo transition and our 2019 proxy activity . during 2019 , we incurred $ 7.7 million in ransomware incident related costs , net of estimated insurance recoveries . results of operations the following table presents the percentage relationship that certain items in our consolidated statements of income bear to sales for the periods indicated . the financial information and the discussion below should be read in conjunction with the consolidated financial statements and notes thereto in item 8 of this report . 34 replace_table_token_7_th 2019 compared with 2018 sales as noted above , sales decreased 12 % in 2019. the percentages of our sales by sector were as follows : replace_table_token_8_th industrials . 2019 sales decreased 8 % to $ 453.6 million from $ 493.1 million in 2018. the decreases were primarily from softer demand from customers in the industrial transportation market and the ramp delays from previously booked new programs . aerospace and defense . 2019 sales increased 6 % to $ 431.9 million from $ 406.4 million in 2018 primarily due to increased demand from our defense customers . medical . 2019 sales increased 14 % to $ 448.2 million from $ 394.0 million in 2018 from higher demand and program ramps from new and existing customers . semiconductor capital equipment . 2019 sales decreased 22 % to $ 277.8 million from $ 355.0 million in 2018. the decrease reflected is due to declines in demand throughout the broader semi-capital equipment market . computing . 2019 sales decreased 38 % to $ 361.2 million from $ 580.8 million in 2018. the decrease is primarily due from our planned exit of a legacy computing contract that was completed in 2019 . 35 telecommunications . 2019 sales decreased 12 % to $ 295.4 million from $ 337.2 million in 2018. the decrease is primarily due to decreased demand from existing customers . our international operations are subject to the risks of doing business abroad . story_separator_special_tag for these contracts , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided . we use a cost-based input measurement of progress because is best represents the transfer of assets to the customer . for our other contracts , revenue is recognized upon transfer of control of the product or service , which is generally upon shipment or delivery pending on the terms of the underlying contract . revenue from design , development and engineering services is generally recognized over time as the services are performed . generally , there are no subjective customer acceptance requirements or further obligations related to goods of services provided . our contracts with customer do not allow for a general right of return . income taxes we estimate our income tax provision in each of the jurisdictions where we operate , including estimating exposures related to uncertain tax positions . we must also make judgments regarding the ability to realize our deferred tax assets . we record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized . our valuation allowance as of december 31 , 2019 of $ 16.0 million primarily relates to deferred tax assets from our foreign and u.s. state net operating loss tax carryforwards of $ 15.4 million . differences in our future operating results as compared to the estimates utilized in the determination of the valuation allowances could result in adjustments in valuation allowances in future periods . for example , a significant increase in our operations in the united states , future accretive acquisitions in the united states and any movement in the mix of profits from our international operations to the united states would result in a reduction in the valuation allowance and would increase income in the period such determination was made . alternatively , significant economic downturns in the united states generating additional operating loss carryforwards and potential movements in the mix of profits to international locations would result in an increase in the valuation allowance and would decrease income in the period such determination was made . on december 22 , 2017 , the sec staff issued staff accounting bulletin no . 118 ( sab 118 ) , which provides guidance on accounting for the tax effects of the u.s. tax reform . sab 118 provided a measurement period that would not extend beyond one year from the u.s. tax reform enactment date for companies to complete their accounting of the impact on income taxes . until the accounting was complete , companies could record provisional estimates . as a result of the u.s. tax reform , we recorded provisional amounts in relation to the accounting of the transition tax in 2017. we have finalized our accounting for sab 118 as of december 31 , 2018 within the measurement period . see note 10 to the consolidated financial statements in item 8 of this report . 40 we are subject to examination by tax authorities for different periods in various u.s. and foreign tax jurisdictions . during the course of such examinations , disputes may occur as to matters of fact and or law . in most tax jurisdictions the passage of time without examination will result in the expiration of applicable statutes of limitations , thereby precluding the taxing authority from examining the relevant tax period ( s ) . we believe that we have adequately provided for our tax liabilities . impairment of long-lived assets and goodwill long-lived assets , such as property , plant , and equipment and purchased intangibles subject to amortization , are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset . goodwill is tested for impairment on an annual basis , at a minimum , and whenever events and circumstances indicate that the carrying amount may be impaired . circumstances that may lead to impairment include unforeseen decreases in future performance or industry demand or the restructuring of our operations as a result of a change in our business strategy . we perform a qualitative assessment to determine if goodwill is potentially impaired . if the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , or if we elect not to perform a qualitative assessment , then we would be required to perform a quantitative impairment test for goodwill . this two-step process involves determining the fair values of the reporting units and comparing those fair values to the carrying values , including goodwill , of the reporting unit . an impairment loss would be recognized to the extent that the carrying amount exceeds the asset 's fair value . for purposes of performing our goodwill impairment assessment , our reporting units are the same as our operating segments as defined in note 15 to the consolidated financial statements in item 8 of this report . as of december 31 , 2019 and 2018 , we had goodwill of approximately $ 192.1 million , respectively , associated with our americas and asia business segments . based on our qualitative assessments of goodwill as of december 31 , 2019 , 2018 and 2017 , we concluded that it was more likely than not that the fair value of our americas and asia business segments were greater
| liquidity and capital resources we have historically financed our organic growth and operations through funds generated from operations and occasional borrowings under our revolving credit facility . cash and cash equivalents and restricted cash totaled $ 364.0 million at december 31 , 2019 and $ 458.1 million at december 31 , 2018 , of which $ 197.8 million and $ 154.4 million , respectively , were held outside the u.s. in various foreign subsidiaries . during 2019 and 2018 , we repatriated $ 52.1 million and $ 560.6 million , respectively , of foreign earnings to the u.s. cash provided by operating activities was $ 93.1 million in 2019. the cash provided by operations during 2019 consisted primarily of $ 23.4 million of net income , adjusted for $ 48.4 million of depreciation and amortization , a $ 134.9 million decrease in accounts receivable , a $ 5.2 million increase in inventories , a $ 10.3 million decrease in income tax liabilities , net and a $ 121.9 million decrease in accounts payable . the decrease in accounts receivable and accounts payable was primarily a result of the impact of our exit from a legacy computing contract described above . working capital was $ 0.7 billion at december 31 , 2019 and $ 0.9 billion at december 31 , 2018. we purchase components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production , and we may be forced to delay shipments , which can increase backorders and impact cash flows . cash used in investing activities was $ 34.9 million in 2019 primarily due to purchases of additional property , plant and equipment totaling $ 32.6 million .
| 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. |
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 we have historically financed our organic growth and operations through funds generated from operations and occasional borrowings under our revolving credit facility . cash and cash equivalents and restricted cash totaled $ 364.0 million at december 31 , 2019 and $ 458.1 million at december 31 , 2018 , of which $ 197.8 million and $ 154.4 million , respectively , were held outside the u.s. in various foreign subsidiaries . during 2019 and 2018 , we repatriated $ 52.1 million and $ 560.6 million , respectively , of foreign earnings to the u.s. cash provided by operating activities was $ 93.1 million in 2019. the cash provided by operations during 2019 consisted primarily of $ 23.4 million of net income , adjusted for $ 48.4 million of depreciation and amortization , a $ 134.9 million decrease in accounts receivable , a $ 5.2 million increase in inventories , a $ 10.3 million decrease in income tax liabilities , net and a $ 121.9 million decrease in accounts payable . the decrease in accounts receivable and accounts payable was primarily a result of the impact of our exit from a legacy computing contract described above . working capital was $ 0.7 billion at december 31 , 2019 and $ 0.9 billion at december 31 , 2018. we purchase components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production , and we may be forced to delay shipments , which can increase backorders and impact cash flows . cash used in investing activities was $ 34.9 million in 2019 primarily due to purchases of additional property , plant and equipment totaling $ 32.6 million .
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Suspicious Activity Report : further insurance recoveries will be recorded when considered probable for recovery . 2019 overview sales for 2019 were $ 2.3 billion , a 12 % decrease from sales of $ 2.6 billion in 2018. during 2019 , sales to customers in our various industry sectors fluctuated from 2018 as follows : · industrials decreased by 8 % , · a & d increased by 6 % , · medical increased by 14 % , · semi-cap decreased by 22 % , · computing decreased by 38 % , and · telecommunications decreased by 12 % . the overall revenue decrease was due primarily to our planned exit of a legacy computing contract which was completed in 2019 ( as discussed below ) , in addition to the decline in the overall semi-cap market , reduced revenues 33 from other computing and telecommunications customers and the impact of the ransomware incident ( as discussed below ) . our sales depend on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , can adversely affect us . a substantial percentage of our sales are made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 38 % and 44 % of our sales in 2019 and 2018 , respectively . in 2019 , there was no single customer with sales over 10 % of our sales . in 2018 , sales to international business machines corporation ( ibm ) represented 13 % of our sales . as part of our ongoing process to review contracts that are marginal and dilutive to our gross margin , we made the decision to not renew the contract with a large computing customer that was to expire at the end of 2019. during the second quarter of 2019 , we completed the final build out of this legacy contract and in the third quarter had an immaterial amount of revenue from this contract as the transition was completed . during 2019 , we incurred an $ 11.0 million charge for the write-down of inventory and a provision for accounts receivable associated with the insolvency of a customer . these charges increased cost of sales by $ 0.9 million and selling , general and administrative expenses by $ 10.1 million . in 2019 , we also recovered $ 1.7 million of amounts written down in 2018 associated with the insolvency of another customer . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on the type of services involved , location of production , size of the program , complexity of the product and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and unabsorbed manufacturing overhead costs . in addition , a number of our new and higher-volume programs remain subject to competitive constraints that can exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . gross profit can also be impacted by other situations , such as the ransomware incident experienced in 2019. we have undertaken initiatives to restructure our business operations with the intention of improving utilization and reducing costs . during 2019 , we recognized $ 8.5 million of restructuring charges in connection with the announced closure of two facilities and other reductions in workforce of certain facilities primarily in the americas . in addition , we incurred $ 4.6 million in charges primarily related to our ceo transition and our 2019 proxy activity . during 2019 , we incurred $ 7.7 million in ransomware incident related costs , net of estimated insurance recoveries . results of operations the following table presents the percentage relationship that certain items in our consolidated statements of income bear to sales for the periods indicated . the financial information and the discussion below should be read in conjunction with the consolidated financial statements and notes thereto in item 8 of this report . 34 replace_table_token_7_th 2019 compared with 2018 sales as noted above , sales decreased 12 % in 2019. the percentages of our sales by sector were as follows : replace_table_token_8_th industrials . 2019 sales decreased 8 % to $ 453.6 million from $ 493.1 million in 2018. the decreases were primarily from softer demand from customers in the industrial transportation market and the ramp delays from previously booked new programs . aerospace and defense . 2019 sales increased 6 % to $ 431.9 million from $ 406.4 million in 2018 primarily due to increased demand from our defense customers . medical . 2019 sales increased 14 % to $ 448.2 million from $ 394.0 million in 2018 from higher demand and program ramps from new and existing customers . semiconductor capital equipment . 2019 sales decreased 22 % to $ 277.8 million from $ 355.0 million in 2018. the decrease reflected is due to declines in demand throughout the broader semi-capital equipment market . computing . 2019 sales decreased 38 % to $ 361.2 million from $ 580.8 million in 2018. the decrease is primarily due from our planned exit of a legacy computing contract that was completed in 2019 . 35 telecommunications . 2019 sales decreased 12 % to $ 295.4 million from $ 337.2 million in 2018. the decrease is primarily due to decreased demand from existing customers . our international operations are subject to the risks of doing business abroad . story_separator_special_tag for these contracts , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided . we use a cost-based input measurement of progress because is best represents the transfer of assets to the customer . for our other contracts , revenue is recognized upon transfer of control of the product or service , which is generally upon shipment or delivery pending on the terms of the underlying contract . revenue from design , development and engineering services is generally recognized over time as the services are performed . generally , there are no subjective customer acceptance requirements or further obligations related to goods of services provided . our contracts with customer do not allow for a general right of return . income taxes we estimate our income tax provision in each of the jurisdictions where we operate , including estimating exposures related to uncertain tax positions . we must also make judgments regarding the ability to realize our deferred tax assets . we record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized . our valuation allowance as of december 31 , 2019 of $ 16.0 million primarily relates to deferred tax assets from our foreign and u.s. state net operating loss tax carryforwards of $ 15.4 million . differences in our future operating results as compared to the estimates utilized in the determination of the valuation allowances could result in adjustments in valuation allowances in future periods . for example , a significant increase in our operations in the united states , future accretive acquisitions in the united states and any movement in the mix of profits from our international operations to the united states would result in a reduction in the valuation allowance and would increase income in the period such determination was made . alternatively , significant economic downturns in the united states generating additional operating loss carryforwards and potential movements in the mix of profits to international locations would result in an increase in the valuation allowance and would decrease income in the period such determination was made . on december 22 , 2017 , the sec staff issued staff accounting bulletin no . 118 ( sab 118 ) , which provides guidance on accounting for the tax effects of the u.s. tax reform . sab 118 provided a measurement period that would not extend beyond one year from the u.s. tax reform enactment date for companies to complete their accounting of the impact on income taxes . until the accounting was complete , companies could record provisional estimates . as a result of the u.s. tax reform , we recorded provisional amounts in relation to the accounting of the transition tax in 2017. we have finalized our accounting for sab 118 as of december 31 , 2018 within the measurement period . see note 10 to the consolidated financial statements in item 8 of this report . 40 we are subject to examination by tax authorities for different periods in various u.s. and foreign tax jurisdictions . during the course of such examinations , disputes may occur as to matters of fact and or law . in most tax jurisdictions the passage of time without examination will result in the expiration of applicable statutes of limitations , thereby precluding the taxing authority from examining the relevant tax period ( s ) . we believe that we have adequately provided for our tax liabilities . impairment of long-lived assets and goodwill long-lived assets , such as property , plant , and equipment and purchased intangibles subject to amortization , are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset . goodwill is tested for impairment on an annual basis , at a minimum , and whenever events and circumstances indicate that the carrying amount may be impaired . circumstances that may lead to impairment include unforeseen decreases in future performance or industry demand or the restructuring of our operations as a result of a change in our business strategy . we perform a qualitative assessment to determine if goodwill is potentially impaired . if the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount , or if we elect not to perform a qualitative assessment , then we would be required to perform a quantitative impairment test for goodwill . this two-step process involves determining the fair values of the reporting units and comparing those fair values to the carrying values , including goodwill , of the reporting unit . an impairment loss would be recognized to the extent that the carrying amount exceeds the asset 's fair value . for purposes of performing our goodwill impairment assessment , our reporting units are the same as our operating segments as defined in note 15 to the consolidated financial statements in item 8 of this report . as of december 31 , 2019 and 2018 , we had goodwill of approximately $ 192.1 million , respectively , associated with our americas and asia business segments . based on our qualitative assessments of goodwill as of december 31 , 2019 , 2018 and 2017 , we concluded that it was more likely than not that the fair value of our americas and asia business segments were greater
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1,057 | products shipped to asia accounted for 82 % , 84 % and 81 % of net revenue during the years ended december 31 , 2020 , 2019 and 2018 , respectively , including for 42 % , 46 % , and 43 % , respectively , from products shipped to hong kong and 17 % , 14 % and 19 % , respectively , from products shipped to china . although a large percentage of our products is shipped to asia , we believe that a significant number of the systems designed by these customers and incorporating our semiconductor products are then sold outside asia . for example , revenue generated from sales of our cable modem products during the years ended december 31 , 2020 , 2019 and 2018 related principally to sales to asian odms and contract manufacturers delivering products into european and north american markets . to date , all of our sales have been denominated in united states dollars . a significant portion of our net revenue has historically been generated by a limited number of customers . sales to customers comprise both direct sales to customers and indirect sales through distributors . in the year ended december 31 , 2020 , two of our direct customers accounted for 28 % of our net revenue , and our ten largest customers collectively accounted for 68 % of our net revenue , of which distributor customers comprised 41 % of our net revenue . in the year ended december 31 , 2019 , one of our direct customers , commscope , accounted for 14 % of our net revenue , and our ten largest customers collectively accounted for 63 % of our net revenue , of which distributor customers comprised 38 % of our net revenue . in the year ended december 31 , 2018 , commscope accounted for 18 % of our net revenue , and our ten largest customers collectively accounted for 61 % of our net revenue , of which distributor customers comprised 29 % of our net revenue . for certain customers , we sell multiple products into disparate end user applications such as cable modems , satellite set-top boxes and broadband gateways . our business depends on winning competitive bid selection processes , known as design wins , to develop semiconductors for use in our customers ' products . these selection processes are typically lengthy , and as a result , our sales cycles will vary based on the specific market served , whether the design win is with an existing or a new customer and whether our product being designed in our customer 's device is a first generation or subsequent generation product . our customers ' products can be complex and , if our engagement results in a design win , can require significant time to define , design and result in volume production . because the sales cycle for our products is long , we can incur significant design and development expenditures in circumstances where we do not ultimately recognize any revenue . we do not have any long-term purchase commitments with any of our customers , all of whom purchase our products on a purchase order basis . once one of our products is incorporated into a customer 's design , however , we believe that our product is likely to remain a component of the customer 's product for its life cycle because of the time and expense associated with redesigning the product or substituting an alternative chip . product life cycles in our target markets will vary by application . for example , in the cable operator modem and gateway sectors , a design-in can have a product life cycle of 24 to 48 months . in the industrial and wired and wireless infrastructure markets , a design-in can have a product life cycle of 24 to 60 months and beyond . impact of covid-19 in late january 2020 and early february 2020 , in response to a severe outbreak of the novel coronavirus disease , or covid-19 , the government of china instituted mandatory quarantines in wuhan , china , extended lunar new year holiday closures , and restricted shipments out of the country . this resulted in a temporary delay in our product shipments in the first quarter of 2020. on march 11 , 2020 , the world health organization declared a global pandemic regarding covid-19 . the covid-19 pandemic has reached all of the countries and states in which we operate , including in california where our headquarters and central engineering team are located , as well as massachusetts , spain , india , singapore , taiwan , canada , france , japan , south korea , hong kong , israel , germany , and austria , where additional engineering , sales , and administrative personnel are located . in many of these jurisdictions , local authorities have instituted stay-at-home or shelter-in-place orders . to protect the health and safety of our employees , we adopted social distancing policies including suspending employee travel and implementing remote work arrangements for substantially all of our workforce worldwide . as of december 31 , 2020 , some of our workforce has returned to the office at a reduced capacity adhering to local health authority guidelines . while we experienced some negative impact to our net revenue and gross profits in the first half of 2020 due to several industry-wide dynamics related to covid-19 , including the supply constraints described above , as well as certain customer order push-out requests , we are currently benefiting from the work-from-home environment that is driving an increase in demand for certain of our products . further , global financial markets reacted negatively to the covid-19 pandemic 's impacts causing significant declines in the stock price and market capitalization of many companies across all industries , although some have recovered . story_separator_special_tag technologies acquired or licensed from other companies , customer relationships , noncompete covenants , backlog , and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement , or estimated useful life . we capitalize ipr & d projects acquired as part of a business combination . on completion of each project , ipr & d assets are reclassified to developed technology and amortized over their estimated useful lives . impairment of goodwill and long-lived assets goodwill is not amortized but is tested for impairment using either a qualitative assessment , and or quantitative assessment , which effective with our october 31 , 2020 impairment test , is based on comparing the fair value of a reporting unit with its carrying amount . if the carrying amount of a reporting unit exceeds its fair value , a goodwill impairment loss is recorded . we test by reporting unit , goodwill and other indefinite-lived intangible assets for impairment at october 31 each year or more frequently if we believe indicators of impairment exist . during development , ipr & d is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired . we review indefinite-lived intangible assets each year for impairment using a qualitative assessment , followed by a quantitative assessment , as needed , each year as of october 31 , the date of our annual goodwill impairment review , or whenever events or changes in circumstances indicate the carrying value may not be recoverable . recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount of the asset to its fair value . in certain cases , we utilize the relief-from-royalty method when appropriate , and a fair value will be obtained based on analysis over the costs saved by owning the right instead of leasing it . once an ipr & d project is complete , it becomes a finite-lived intangible asset and is evaluated for impairment both immediately prior to its change in classification and thereafter in accordance with our policy for long-lived assets . we regularly review the carrying amount of our long-lived assets subject to depreciation and amortization , as well as the useful lives , to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives . an impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset . should impairment exist , the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset 's fair value . income taxes we provide for income taxes utilizing the asset and liability approach of accounting for income taxes . under this approach , deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid . deferred taxes are presented net as noncurrent . the provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year . deferred taxes result from the differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted . valuation allowances are recorded to reduce deferred tax assets when a judgment is made that is considered more likely than not that a tax benefit will not be realized . a decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit . if the valuation allowance is released in a future period , income tax expense will be reduced accordingly . the calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations . the impact of an uncertain income tax position is recognized at the largest amount that is “ more likely than not ” to be sustained upon audit by the relevant taxing authority . an uncertain income tax position will not be recognized if it has less than a 50 % likelihood of being sustained . if the estimate of tax liabilities proves to be less than the ultimate assessment , a further charge to expense would result . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . we continue to assess the need for a valuation allowance on the deferred tax asset by evaluating both positive and negative evidence that may 50 exist . any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required . on december 22 , 2017 , the tax cuts and jobs act , or the tax act , was enacted into u.s. tax law . in 2018 , we made an accounting policy election to treat global intangible low taxed income in accordance with the tax act as a period cost . stock-based compensation we measure the cost of employee services received in exchange for equity incentive awards , including restricted stock units and restricted stock awards , employee stock purchase rights and stock options , based on the grant date fair value of the award . we calculate the fair value of restricted stock units and performance-based restricted stock units based on the fair market value of our common stock on the grant date . stock-based compensation expense is then determined based on the number of restricted stock units that are expected to vest
| cash flows from operating activities net cash provided by operating activities was $ 73.6 million for the year ended december 31 , 2020. net cash provided by operating activities primarily consisted of the positive impact from $ 162.5 million in non-cash items and $ 28.9 million in changes in operating assets and liabilities , partially offset by the negative impact of net loss of $ 98.6 million and deferred income taxes and excess tax benefits totaling $ 19.2 million . non-cash items included in net loss for the year ended december 31 , 2020 primarily consisted of depreciation and amortization of property , equipment , acquired intangible assets and leased right-of-use assets of $ 76.5 million , stock-based compensation of $ 47.6 million , and inventory fair value adjustments of $ 32.9 million . 58 net cash provided by operating activities was $ 78.3 million for the year ended december 31 , 2019. net cash provided by operating activities consisted of positive cash flow from operations including $ 101.1 million in non-cash operating expenses and $ 16.9 million in changes in operating assets and liabilities , partially offset by net loss of $ 19.9 million and deferred income taxes and excess tax benefits from stock-based compensation of $ 19.8 million . non-cash items included in net loss for the year ended december 31 , 2019 primarily included depreciation and amortization of property , equipment and intangible assets and leased right-of-use assets of $ 66.4 million , stock-based compensation of $ 32.1 million . during the year ended december 31 , 2019 , we also exited certain leased facilities , which resulted in impairment of leased right-of-use assets of $ 9.2 million and leasehold impairments of $ 1.4 million , which was partially offset by a gain on extinguishment of related lease liabilities of $ 10.4 million , all of which are non-cash items that did not affect cash flows .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from operating activities net cash provided by operating activities was $ 73.6 million for the year ended december 31 , 2020. net cash provided by operating activities primarily consisted of the positive impact from $ 162.5 million in non-cash items and $ 28.9 million in changes in operating assets and liabilities , partially offset by the negative impact of net loss of $ 98.6 million and deferred income taxes and excess tax benefits totaling $ 19.2 million . non-cash items included in net loss for the year ended december 31 , 2020 primarily consisted of depreciation and amortization of property , equipment , acquired intangible assets and leased right-of-use assets of $ 76.5 million , stock-based compensation of $ 47.6 million , and inventory fair value adjustments of $ 32.9 million . 58 net cash provided by operating activities was $ 78.3 million for the year ended december 31 , 2019. net cash provided by operating activities consisted of positive cash flow from operations including $ 101.1 million in non-cash operating expenses and $ 16.9 million in changes in operating assets and liabilities , partially offset by net loss of $ 19.9 million and deferred income taxes and excess tax benefits from stock-based compensation of $ 19.8 million . non-cash items included in net loss for the year ended december 31 , 2019 primarily included depreciation and amortization of property , equipment and intangible assets and leased right-of-use assets of $ 66.4 million , stock-based compensation of $ 32.1 million . during the year ended december 31 , 2019 , we also exited certain leased facilities , which resulted in impairment of leased right-of-use assets of $ 9.2 million and leasehold impairments of $ 1.4 million , which was partially offset by a gain on extinguishment of related lease liabilities of $ 10.4 million , all of which are non-cash items that did not affect cash flows .
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Suspicious Activity Report : products shipped to asia accounted for 82 % , 84 % and 81 % of net revenue during the years ended december 31 , 2020 , 2019 and 2018 , respectively , including for 42 % , 46 % , and 43 % , respectively , from products shipped to hong kong and 17 % , 14 % and 19 % , respectively , from products shipped to china . although a large percentage of our products is shipped to asia , we believe that a significant number of the systems designed by these customers and incorporating our semiconductor products are then sold outside asia . for example , revenue generated from sales of our cable modem products during the years ended december 31 , 2020 , 2019 and 2018 related principally to sales to asian odms and contract manufacturers delivering products into european and north american markets . to date , all of our sales have been denominated in united states dollars . a significant portion of our net revenue has historically been generated by a limited number of customers . sales to customers comprise both direct sales to customers and indirect sales through distributors . in the year ended december 31 , 2020 , two of our direct customers accounted for 28 % of our net revenue , and our ten largest customers collectively accounted for 68 % of our net revenue , of which distributor customers comprised 41 % of our net revenue . in the year ended december 31 , 2019 , one of our direct customers , commscope , accounted for 14 % of our net revenue , and our ten largest customers collectively accounted for 63 % of our net revenue , of which distributor customers comprised 38 % of our net revenue . in the year ended december 31 , 2018 , commscope accounted for 18 % of our net revenue , and our ten largest customers collectively accounted for 61 % of our net revenue , of which distributor customers comprised 29 % of our net revenue . for certain customers , we sell multiple products into disparate end user applications such as cable modems , satellite set-top boxes and broadband gateways . our business depends on winning competitive bid selection processes , known as design wins , to develop semiconductors for use in our customers ' products . these selection processes are typically lengthy , and as a result , our sales cycles will vary based on the specific market served , whether the design win is with an existing or a new customer and whether our product being designed in our customer 's device is a first generation or subsequent generation product . our customers ' products can be complex and , if our engagement results in a design win , can require significant time to define , design and result in volume production . because the sales cycle for our products is long , we can incur significant design and development expenditures in circumstances where we do not ultimately recognize any revenue . we do not have any long-term purchase commitments with any of our customers , all of whom purchase our products on a purchase order basis . once one of our products is incorporated into a customer 's design , however , we believe that our product is likely to remain a component of the customer 's product for its life cycle because of the time and expense associated with redesigning the product or substituting an alternative chip . product life cycles in our target markets will vary by application . for example , in the cable operator modem and gateway sectors , a design-in can have a product life cycle of 24 to 48 months . in the industrial and wired and wireless infrastructure markets , a design-in can have a product life cycle of 24 to 60 months and beyond . impact of covid-19 in late january 2020 and early february 2020 , in response to a severe outbreak of the novel coronavirus disease , or covid-19 , the government of china instituted mandatory quarantines in wuhan , china , extended lunar new year holiday closures , and restricted shipments out of the country . this resulted in a temporary delay in our product shipments in the first quarter of 2020. on march 11 , 2020 , the world health organization declared a global pandemic regarding covid-19 . the covid-19 pandemic has reached all of the countries and states in which we operate , including in california where our headquarters and central engineering team are located , as well as massachusetts , spain , india , singapore , taiwan , canada , france , japan , south korea , hong kong , israel , germany , and austria , where additional engineering , sales , and administrative personnel are located . in many of these jurisdictions , local authorities have instituted stay-at-home or shelter-in-place orders . to protect the health and safety of our employees , we adopted social distancing policies including suspending employee travel and implementing remote work arrangements for substantially all of our workforce worldwide . as of december 31 , 2020 , some of our workforce has returned to the office at a reduced capacity adhering to local health authority guidelines . while we experienced some negative impact to our net revenue and gross profits in the first half of 2020 due to several industry-wide dynamics related to covid-19 , including the supply constraints described above , as well as certain customer order push-out requests , we are currently benefiting from the work-from-home environment that is driving an increase in demand for certain of our products . further , global financial markets reacted negatively to the covid-19 pandemic 's impacts causing significant declines in the stock price and market capitalization of many companies across all industries , although some have recovered . story_separator_special_tag technologies acquired or licensed from other companies , customer relationships , noncompete covenants , backlog , and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement , or estimated useful life . we capitalize ipr & d projects acquired as part of a business combination . on completion of each project , ipr & d assets are reclassified to developed technology and amortized over their estimated useful lives . impairment of goodwill and long-lived assets goodwill is not amortized but is tested for impairment using either a qualitative assessment , and or quantitative assessment , which effective with our october 31 , 2020 impairment test , is based on comparing the fair value of a reporting unit with its carrying amount . if the carrying amount of a reporting unit exceeds its fair value , a goodwill impairment loss is recorded . we test by reporting unit , goodwill and other indefinite-lived intangible assets for impairment at october 31 each year or more frequently if we believe indicators of impairment exist . during development , ipr & d is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired . we review indefinite-lived intangible assets each year for impairment using a qualitative assessment , followed by a quantitative assessment , as needed , each year as of october 31 , the date of our annual goodwill impairment review , or whenever events or changes in circumstances indicate the carrying value may not be recoverable . recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount of the asset to its fair value . in certain cases , we utilize the relief-from-royalty method when appropriate , and a fair value will be obtained based on analysis over the costs saved by owning the right instead of leasing it . once an ipr & d project is complete , it becomes a finite-lived intangible asset and is evaluated for impairment both immediately prior to its change in classification and thereafter in accordance with our policy for long-lived assets . we regularly review the carrying amount of our long-lived assets subject to depreciation and amortization , as well as the useful lives , to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives . an impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset . should impairment exist , the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset 's fair value . income taxes we provide for income taxes utilizing the asset and liability approach of accounting for income taxes . under this approach , deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid . deferred taxes are presented net as noncurrent . the provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year . deferred taxes result from the differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted . valuation allowances are recorded to reduce deferred tax assets when a judgment is made that is considered more likely than not that a tax benefit will not be realized . a decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit . if the valuation allowance is released in a future period , income tax expense will be reduced accordingly . the calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations . the impact of an uncertain income tax position is recognized at the largest amount that is “ more likely than not ” to be sustained upon audit by the relevant taxing authority . an uncertain income tax position will not be recognized if it has less than a 50 % likelihood of being sustained . if the estimate of tax liabilities proves to be less than the ultimate assessment , a further charge to expense would result . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . we continue to assess the need for a valuation allowance on the deferred tax asset by evaluating both positive and negative evidence that may 50 exist . any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required . on december 22 , 2017 , the tax cuts and jobs act , or the tax act , was enacted into u.s. tax law . in 2018 , we made an accounting policy election to treat global intangible low taxed income in accordance with the tax act as a period cost . stock-based compensation we measure the cost of employee services received in exchange for equity incentive awards , including restricted stock units and restricted stock awards , employee stock purchase rights and stock options , based on the grant date fair value of the award . we calculate the fair value of restricted stock units and performance-based restricted stock units based on the fair market value of our common stock on the grant date . stock-based compensation expense is then determined based on the number of restricted stock units that are expected to vest
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1,058 | through an innovative platform sharing partnership strategy , fisker believes that it will be able to significantly reduce the capital intensity typically associated with 53 index to financial statements developing and manufacturing vehicles , while maintaining flexibility and optionality in component sourcing and manufacturing due to fisker 's ff-pad proprietary process . through fisker 's ff-pad proprietary process , fisker is currently working with magna to develop a proprietary electric vehicle platform called fm29 that will underpin fisker ocean and at least one additional nameplate . fisker intends to cooperate with one or more additional industry-leading original equipment manufacturers ( “ oems ” ) , technology companies , and or tier-one automotive suppliers for platform sharing and access to procurement networks , while focusing on key differentiators in innovative design , software and user interface . multiple platform-sharing partners is intended to accelerate growth in fisker 's portfolio of electric vehicle offerings . fisker envisions a go-to-market strategy with both web- and app-based digital sales , loan financing approvals , leasing , and service management , with limited reliance on traditional brick-and-mortar “ sales-and-service ” dealer networks . fisker believes that this customer-focused approach will drive revenue , user satisfaction and higher margins than competitors . the business combination fisker inc. ( “ fisker ” or the “ company ” ) was originally incorporated in the state of delaware in october 13 , 2017 as a special purpose acquisition company under the name spartan energy acquisition corp. ( “ spartan ” ) , formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , recapitalization , reorganization or similar business combination with one or more businesses . spartan completed its ipo in august 2018. in october 2020 , spartan 's wholly-owned subsidiary merged with and into fisker inc. , a delaware corporation ( “ legacy fisker ” ) , with legacy fisker surviving the merger as a wholly-owned subsidiary of spartan ( the “ business combination ” ) . in connection with the business combination , spartan changed its name to fisker inc. in connection with the consummation of the business combination ( the “ closing ” ) , the registrant changed its name from spartan energy acquisition corp. to fisker inc. the business combination was accounted for as a reverse recapitalization , in accordance with gaap . under this method of accounting , spartan was treated as the “ acquired ” company for financial reporting purposes . accordingly , the business combination was treated as the equivalent of legacy fisker issuing stock for the net assets of spartan , accompanied by a recapitalization , whereby no goodwill or other intangible assets was recorded . operations prior to the business combination are those of legacy fisker . key trends , opportunities and uncertainties fisker is a pre-revenue company and believes that its future performance and success depends to a substantial extent on the ability to capitalize on the following opportunities , which in turn is subject to significant risks and challenges , including those discussed below and in the section of this form 10-k titled “ risk factors . ” partnering with industry-leading oems and or tier-one automotive suppliers on october 14 , 2020 , fisker and spartan entered into a cooperation agreement with magna setting forth certain terms for the development of a full electric vehicle ( the “ cooperation agreement ” ) . the cooperation agreement sets out the main terms and conditions of the upcoming operational phase agreements ( the “ operational phase agreements ” ) that will extend from the cooperation agreement and other agreements with magna ( or its affiliates ) that are expected to be entered into by and between fisker and magna ( or its affiliates ) . on december 17 , 2020 , fisker entered into the platform-sharing and initial manufacturing operational phase agreements referenced in the cooperation agreement . fisker is currently in negotiations with magna and several other industry-leading oems and tier-one automotive suppliers for platform sharing , component sourcing and manufacturing . on february 24 , 2021 , fisker entered into a memorandum of understanding with hon hai technology group ( “ foxconn ” ) supporting a project to develop a breakthrough electric vehicle . the companies expect to complete definitive agreements related to this effort in q2 2021 . 54 index to financial statements these co-operations allow fisker to focus on vehicle design , strong brand affiliation and a differentiated customer experience . fisker intends to leverage multiple ev platforms to accelerate its time to market , reduce vehicle development costs and gain access to an established global supply chain of batteries and other components . fisker believes that its business model will reduce the considerable execution risk typically associated with new car companies . through such platform sharing , component sourcing and manufacturing partnerships , fisker believes it will be able to accelerate its time to market and reduce vehicle development costs . fisker remains on-track for fisker ocean start-of-production in q4 2022 and intends to meet timing , cost and quality expectations while optimally matching its cost structure with its projected production ramp by leveraging such partnerships and trained workforces . remaining hardware agnostic allows for selection of partners , components , and manufacturing decisions to be based on both timeline and cost advantages and enables fisker to focus on delivering truly innovative design features , a superior customer experience , and a leading user interface that leverages sophisticated software and other technology advancements . fisker continues to negotiate a potential relationship with several other industry-leading oems and tier-one automotive suppliers . fisker has entered into agreements covering the magna base platform , development and engineering services , and manufacturing , among others . story_separator_special_tag interest expense interest expense was $ 1.6 million during the year ended december 31 , 2020 and $ 0.2 million during the year ended december 31 , 2019. the $ 1.4 million increase reflected the issuance of convertible bridge notes , starting in the second half of 2019 through the first nine months of 2020. change in fair value of derivatives and convertible security the change in fair value of embedded derivatives and convertible security amounted to $ 10.1 million during the year ended december 31 , 2020 compared to $ 0.1 million during the year ended december 31 , 2019 , reflecting the change in value of the embedded derivative relating to fisker 's convertible bridge notes and convertible security , which was issued in july 2020. the bridge notes and convertible security converted into class a common shares at the close of the business combination . foreign currency gain ( loss ) fisker recorded immaterial foreign currency gains or losses during the years ended december 31 , 2020 and 2019. in 2021 , fisker expects its eur denominated transactions associated with our foreign operations and services provided by suppliers will increase significantly and will subject fisker to greater fluctuation in realized gain and losses from foreign currencies . net loss net loss was $ 54.6 million during the year ended december 31 , 2020 , an increase of $ 43.7 million or 402 % from $ 10.9 million during the year ended december 31 , 2019 , for the reasons discussed above . liquidity and capital resources as of the date of this form 10-k , fisker has yet to generate any revenue from its business operations . to date , fisker has funded its capital expenditure and working capital requirements through equity and convertible notes , as further discussed below . fisker 's ability to successfully commence commercial operations and expand its business will depend on many factors , including its working capital needs , the availability of equity or debt financing and , over time , its ability to generate cash flows from operations . as of december 31 , 2020 , fisker 's cash and cash equivalents amounted to $ 991 million and no debt outstanding . fisker expects its capital expenditures and working capital requirements to increase substantially in 2021 , as it progresses toward production of the fisker ocean ev model , develop its customer support and marketing infrastructure and expand its research and development efforts . for example , fisker expects cash usage to fund capital expenditures and other investing activities to be in the range of $ 210 million to $ 240 million in the fiscal year ended december 31 , 2021 compared to $ 677,000 in the fiscal year ended december 31 , 2020. fisker believes that its cash on hand following the consummation of the business combination will be sufficient to meet its working capital and capital expenditure requirements for a period of at least twelve months from the date 60 index to financial statements of this form 10-k and sufficient to fund its operations until it commences production of the fisker ocean . fisker may , however , need additional cash resources due to changed business conditions or other developments , including unanticipated delays in negotiations with oems and tier-one automotive suppliers or other suppliers , supply chain challenges , disruptions due to covid-19 , competitive pressures , and regulatory developments , among other developments such as the collaboration on “ project pear ” ( personal electric automotive revolution ) with hon hai technology group announced on february 24 , 2021. to the extent that fisker 's current resources are insufficient to satisfy its cash requirements , fisker may need to seek additional equity or debt financing . if the financing is not available , or if the terms of financing are less desirable than fisker expects , fisker may be forced to decrease its level of investment in product development or scale back its operations , which could have an adverse impact on its business and financial prospects . cash flows the following table provides a summary of fisker 's cash flow data for the periods indicated : replace_table_token_2_th story_separator_special_tag 0px ; top : 0px ; ; display : inline ; `` > non-gaap financial measure the accompanying table references non-gaap adjusted loss from operations . this non-gaap financial measures differs from the directly comparable gaap financial measures due to adjustments made to exclude stock-based compensation expense . this non-gaap financial measures is not a substitute for or superior to measures of financial performance prepared in accordance with gaap and should not be considered as an alternative to any other performance measures derived in accordance with gaap . the company believes that presenting this non-gaap financial measure provides useful supplemental information to investors about the company in understanding and evaluating its operating results , enhancing the overall understanding of its past performance and future prospects , and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making . however , there are a number of limitations related to the use of a non-gaap measure and its nearest gaap equivalents . for example , other 62 index to financial statements companies may calculate non-gaap measures differently , or may use other measures to calculate their financial performance , and therefore any non-gaap measures the company uses may not be directly comparable to similarly titled measures of other companies . therefore , both gaap financial measures of fisker 's financial performance and the respective non-gaap measures should be considered together . please see the reconciliation of non-gaap financial measures to the most directly comparable gaap measure in the tables below . replace_table_token_3_th critical accounting policies and estimates fisker 's financial statements have been prepared in accordance with gaap . in the preparation of these financial statements , fisker is required to use judgment in making estimates and assumptions that affect
| cash flows used in operating activities fisker 's cash flows used in operating activities to date have been primarily comprised of costs related to research and development , payroll and other general and administrative activities . as fisker continues to accelerate hiring in line with development and production of the ocean , fisker expects its cash used in operating activities to increase significantly before it starts to generate any material cash flows from its business . operating lease commitments at december 31 , 2020 will result in cash payments of $ 0.7 million in 2021 and $ 2.2 million after 2021. fisker 's new headquarter , inception , located in manhattan beach , california , will commence in the first quarter of 2021 resulting incremental operating lease commitments of $ 1.2 million for the remainder of 2021 , $ 3.8 million for 2022 , and $ 15.9 million for 2023 and thereafter . it is expected that fisker will execute a new lease in europe and at least one new lease for a u.s.-based experience center . in total , fisker is projecting to use cash in excess of $ 210 million for combined sg & a and r & d activities during 2021. net cash used in operating activities was $ 38 million during the year ended december 31 , 2020 , down from $ 7.3 million net cash used during the year ended december 31 , 2019. cash flows used in investing activities fisker 's cash flows from investing activities , to date , have been comprised mainly of purchases of property and equipment and have not been material .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows used in operating activities fisker 's cash flows used in operating activities to date have been primarily comprised of costs related to research and development , payroll and other general and administrative activities . as fisker continues to accelerate hiring in line with development and production of the ocean , fisker expects its cash used in operating activities to increase significantly before it starts to generate any material cash flows from its business . operating lease commitments at december 31 , 2020 will result in cash payments of $ 0.7 million in 2021 and $ 2.2 million after 2021. fisker 's new headquarter , inception , located in manhattan beach , california , will commence in the first quarter of 2021 resulting incremental operating lease commitments of $ 1.2 million for the remainder of 2021 , $ 3.8 million for 2022 , and $ 15.9 million for 2023 and thereafter . it is expected that fisker will execute a new lease in europe and at least one new lease for a u.s.-based experience center . in total , fisker is projecting to use cash in excess of $ 210 million for combined sg & a and r & d activities during 2021. net cash used in operating activities was $ 38 million during the year ended december 31 , 2020 , down from $ 7.3 million net cash used during the year ended december 31 , 2019. cash flows used in investing activities fisker 's cash flows from investing activities , to date , have been comprised mainly of purchases of property and equipment and have not been material .
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Suspicious Activity Report : through an innovative platform sharing partnership strategy , fisker believes that it will be able to significantly reduce the capital intensity typically associated with 53 index to financial statements developing and manufacturing vehicles , while maintaining flexibility and optionality in component sourcing and manufacturing due to fisker 's ff-pad proprietary process . through fisker 's ff-pad proprietary process , fisker is currently working with magna to develop a proprietary electric vehicle platform called fm29 that will underpin fisker ocean and at least one additional nameplate . fisker intends to cooperate with one or more additional industry-leading original equipment manufacturers ( “ oems ” ) , technology companies , and or tier-one automotive suppliers for platform sharing and access to procurement networks , while focusing on key differentiators in innovative design , software and user interface . multiple platform-sharing partners is intended to accelerate growth in fisker 's portfolio of electric vehicle offerings . fisker envisions a go-to-market strategy with both web- and app-based digital sales , loan financing approvals , leasing , and service management , with limited reliance on traditional brick-and-mortar “ sales-and-service ” dealer networks . fisker believes that this customer-focused approach will drive revenue , user satisfaction and higher margins than competitors . the business combination fisker inc. ( “ fisker ” or the “ company ” ) was originally incorporated in the state of delaware in october 13 , 2017 as a special purpose acquisition company under the name spartan energy acquisition corp. ( “ spartan ” ) , formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , recapitalization , reorganization or similar business combination with one or more businesses . spartan completed its ipo in august 2018. in october 2020 , spartan 's wholly-owned subsidiary merged with and into fisker inc. , a delaware corporation ( “ legacy fisker ” ) , with legacy fisker surviving the merger as a wholly-owned subsidiary of spartan ( the “ business combination ” ) . in connection with the business combination , spartan changed its name to fisker inc. in connection with the consummation of the business combination ( the “ closing ” ) , the registrant changed its name from spartan energy acquisition corp. to fisker inc. the business combination was accounted for as a reverse recapitalization , in accordance with gaap . under this method of accounting , spartan was treated as the “ acquired ” company for financial reporting purposes . accordingly , the business combination was treated as the equivalent of legacy fisker issuing stock for the net assets of spartan , accompanied by a recapitalization , whereby no goodwill or other intangible assets was recorded . operations prior to the business combination are those of legacy fisker . key trends , opportunities and uncertainties fisker is a pre-revenue company and believes that its future performance and success depends to a substantial extent on the ability to capitalize on the following opportunities , which in turn is subject to significant risks and challenges , including those discussed below and in the section of this form 10-k titled “ risk factors . ” partnering with industry-leading oems and or tier-one automotive suppliers on october 14 , 2020 , fisker and spartan entered into a cooperation agreement with magna setting forth certain terms for the development of a full electric vehicle ( the “ cooperation agreement ” ) . the cooperation agreement sets out the main terms and conditions of the upcoming operational phase agreements ( the “ operational phase agreements ” ) that will extend from the cooperation agreement and other agreements with magna ( or its affiliates ) that are expected to be entered into by and between fisker and magna ( or its affiliates ) . on december 17 , 2020 , fisker entered into the platform-sharing and initial manufacturing operational phase agreements referenced in the cooperation agreement . fisker is currently in negotiations with magna and several other industry-leading oems and tier-one automotive suppliers for platform sharing , component sourcing and manufacturing . on february 24 , 2021 , fisker entered into a memorandum of understanding with hon hai technology group ( “ foxconn ” ) supporting a project to develop a breakthrough electric vehicle . the companies expect to complete definitive agreements related to this effort in q2 2021 . 54 index to financial statements these co-operations allow fisker to focus on vehicle design , strong brand affiliation and a differentiated customer experience . fisker intends to leverage multiple ev platforms to accelerate its time to market , reduce vehicle development costs and gain access to an established global supply chain of batteries and other components . fisker believes that its business model will reduce the considerable execution risk typically associated with new car companies . through such platform sharing , component sourcing and manufacturing partnerships , fisker believes it will be able to accelerate its time to market and reduce vehicle development costs . fisker remains on-track for fisker ocean start-of-production in q4 2022 and intends to meet timing , cost and quality expectations while optimally matching its cost structure with its projected production ramp by leveraging such partnerships and trained workforces . remaining hardware agnostic allows for selection of partners , components , and manufacturing decisions to be based on both timeline and cost advantages and enables fisker to focus on delivering truly innovative design features , a superior customer experience , and a leading user interface that leverages sophisticated software and other technology advancements . fisker continues to negotiate a potential relationship with several other industry-leading oems and tier-one automotive suppliers . fisker has entered into agreements covering the magna base platform , development and engineering services , and manufacturing , among others . story_separator_special_tag interest expense interest expense was $ 1.6 million during the year ended december 31 , 2020 and $ 0.2 million during the year ended december 31 , 2019. the $ 1.4 million increase reflected the issuance of convertible bridge notes , starting in the second half of 2019 through the first nine months of 2020. change in fair value of derivatives and convertible security the change in fair value of embedded derivatives and convertible security amounted to $ 10.1 million during the year ended december 31 , 2020 compared to $ 0.1 million during the year ended december 31 , 2019 , reflecting the change in value of the embedded derivative relating to fisker 's convertible bridge notes and convertible security , which was issued in july 2020. the bridge notes and convertible security converted into class a common shares at the close of the business combination . foreign currency gain ( loss ) fisker recorded immaterial foreign currency gains or losses during the years ended december 31 , 2020 and 2019. in 2021 , fisker expects its eur denominated transactions associated with our foreign operations and services provided by suppliers will increase significantly and will subject fisker to greater fluctuation in realized gain and losses from foreign currencies . net loss net loss was $ 54.6 million during the year ended december 31 , 2020 , an increase of $ 43.7 million or 402 % from $ 10.9 million during the year ended december 31 , 2019 , for the reasons discussed above . liquidity and capital resources as of the date of this form 10-k , fisker has yet to generate any revenue from its business operations . to date , fisker has funded its capital expenditure and working capital requirements through equity and convertible notes , as further discussed below . fisker 's ability to successfully commence commercial operations and expand its business will depend on many factors , including its working capital needs , the availability of equity or debt financing and , over time , its ability to generate cash flows from operations . as of december 31 , 2020 , fisker 's cash and cash equivalents amounted to $ 991 million and no debt outstanding . fisker expects its capital expenditures and working capital requirements to increase substantially in 2021 , as it progresses toward production of the fisker ocean ev model , develop its customer support and marketing infrastructure and expand its research and development efforts . for example , fisker expects cash usage to fund capital expenditures and other investing activities to be in the range of $ 210 million to $ 240 million in the fiscal year ended december 31 , 2021 compared to $ 677,000 in the fiscal year ended december 31 , 2020. fisker believes that its cash on hand following the consummation of the business combination will be sufficient to meet its working capital and capital expenditure requirements for a period of at least twelve months from the date 60 index to financial statements of this form 10-k and sufficient to fund its operations until it commences production of the fisker ocean . fisker may , however , need additional cash resources due to changed business conditions or other developments , including unanticipated delays in negotiations with oems and tier-one automotive suppliers or other suppliers , supply chain challenges , disruptions due to covid-19 , competitive pressures , and regulatory developments , among other developments such as the collaboration on “ project pear ” ( personal electric automotive revolution ) with hon hai technology group announced on february 24 , 2021. to the extent that fisker 's current resources are insufficient to satisfy its cash requirements , fisker may need to seek additional equity or debt financing . if the financing is not available , or if the terms of financing are less desirable than fisker expects , fisker may be forced to decrease its level of investment in product development or scale back its operations , which could have an adverse impact on its business and financial prospects . cash flows the following table provides a summary of fisker 's cash flow data for the periods indicated : replace_table_token_2_th story_separator_special_tag 0px ; top : 0px ; ; display : inline ; `` > non-gaap financial measure the accompanying table references non-gaap adjusted loss from operations . this non-gaap financial measures differs from the directly comparable gaap financial measures due to adjustments made to exclude stock-based compensation expense . this non-gaap financial measures is not a substitute for or superior to measures of financial performance prepared in accordance with gaap and should not be considered as an alternative to any other performance measures derived in accordance with gaap . the company believes that presenting this non-gaap financial measure provides useful supplemental information to investors about the company in understanding and evaluating its operating results , enhancing the overall understanding of its past performance and future prospects , and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making . however , there are a number of limitations related to the use of a non-gaap measure and its nearest gaap equivalents . for example , other 62 index to financial statements companies may calculate non-gaap measures differently , or may use other measures to calculate their financial performance , and therefore any non-gaap measures the company uses may not be directly comparable to similarly titled measures of other companies . therefore , both gaap financial measures of fisker 's financial performance and the respective non-gaap measures should be considered together . please see the reconciliation of non-gaap financial measures to the most directly comparable gaap measure in the tables below . replace_table_token_3_th critical accounting policies and estimates fisker 's financial statements have been prepared in accordance with gaap . in the preparation of these financial statements , fisker is required to use judgment in making estimates and assumptions that affect
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1,059 | we also have three other operating segments : cdw advanced services ; canada ; and kelway , each of which do not meet the reportable segment quantitative thresholds and , accordingly , are included in an all other category ( “ other ” ) . for additional information relating to kelway , see note 3 ( acquisition ) to these consolidated financial statements . the cdw advanced services business consists primarily of customized engineering services delivered by technology specialists and engineers , and managed services that include infrastructure as a service ( “ iaas ” ) offerings . effective january 1 , 2016 , the cdw advanced services business will be included in our corporate and public segments and other will be comprised of canada and kelway . revenues in the u.s. from the sale of hardware , software , custom configuration and third-party provided services are recorded within our corporate and public segments . we may sell all or only select products that our vendor partners offer . each vendor partner agreement provides for specific terms and conditions , which may include one or more of the following : product return privileges , price protection policies , purchase discounts and vendor incentive programs , such as purchase or sales rebates and cooperative advertising reimbursements . we also resell software for major software publishers . our agreements with software publishers allow the end-user customer to acquire software or licensed products and services . in addition to helping our customers determine the best software solutions for their needs , we help them manage their software agreements , including warranties and renewals . a significant portion of our advertising and marketing expenses is reimbursed through cooperative advertising programs with our vendor partners . these programs are at the discretion of our vendor partners and are typically tied to sales or other commitments to be met by us within a specified period of time . 30 trends and key factors affecting our financial performance we believe the following trends may have an important impact on our financial performance : our public segment sales are impacted by government spending policies , budget priorities and revenue levels . an adverse change in any of these factors could cause our public segment customers to reduce their purchases or to terminate or not renew contracts with us , which could adversely affect our business , results of operations or cash flows . for the year ended december 31 , 2015 , sales to federal customers increased year-over-year in the mid-teens as we continued to benefit from strategic changes made to better align with new federal government purchasing programs implemented last year . during the same period , sales to state and local customers also increased year-over-year in the mid-teens , driven by the continued focus on public safety . meeting k-12 customer digital curriculum testing needs through sales of client devices was a significant contributor to education sales throughout 2014 and into early 2015. education sales decreased slightly in 2015 as a decline in k-12 client device sales was partially offset by an increase in netcomm sales . in 2015 , we were named as provider on both the largest number of applications and the largest dollar amounts requested for funds by k-12 customers to support internal connections for the 2014-2015 program year of the u.s. federal communications commission e-rate program . the amount and timing of e-rate funds approval and customer implementation is not certain . an important factor affecting our ability to generate sales and achieve our targeted operating results is the impact of general economic conditions on our customers ' willingness to spend on information technology . during the year ended december 31 , 2015 , global economic signals were mixed . we continue to closely monitor macroeconomic conditions . uncertainties related to potential changes in tax and regulatory policy , potential interest rate increases , weakening consumer and business confidence or increased unemployment could result in reduced or deferred spending on information technology products and services by our customers and result in increased competitive pricing pressures . we believe that our customers ' transition to more complex technology solutions will continue to be an important growth area for us in the future . however , because the market for technology products and services is highly competitive , our success at capitalizing on this transition will be based on our ability to tailor specific solutions to customer needs , the quality and breadth of our product and service offerings , the knowledge and expertise of our sales force , price , product availability and speed of delivery . during the year ended december 31 , 2015 , customer priorities continued to shift away from last year 's focus on client devices towards more integrated solutions , which grew substantially faster than transactional sales . key business metrics our management monitors a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary . we believe that the most important of these measures and ratios include average daily sales , gross margin , operating margin , net income , non-gaap net income , net income per common share , non-gaap net income per diluted share , ebitda and adjusted ebitda , free cash flow , return on invested capital , cash and cash equivalents , net working capital , cash conversion cycle ( defined to be days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable , based on a rolling three-month average ) , debt levels including available credit and leverage ratios , sales per coworker , and coworker turnover . these measures and ratios are compared to standards or objectives set by management , so that actions can be taken , as necessary , in order to achieve the standards and objectives . story_separator_special_tag adjusted ebitda is also the primary measure used in certain key covenants and definitions contained in the credit agreement governing our term loan , including the excess cash flow payment provision , the restricted payment covenant and the net leverage ratio . these covenants and definitions are material components of the term loan as they are used in determining the interest rate applicable to the term loan , our ability to make certain investments , incur additional debt and make restricted payments , such as dividends and share repurchases , as well as whether we are required to make additional principal prepayments on the term loan beyond the quarterly amortization payments . for further details regarding the term loan , see note 8 ( long-term debt ) to the accompanying consolidated financial statements . non-gaap net income non-gaap net income was $ 503.5 million for the year ended december 31 , 2015 , an increase of $ 93.6 million , or 22.8 % , compared to $ 409.9 million for the year ended december 31 , 2014 . 36 replace_table_token_11_th ( 1 ) includes amortization expense for acquisition-related intangible assets , primarily customer relationships , customer contracts and trade names . ( 2 ) represents our 35 % share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to our acquisition of kelway . ( 3 ) primarily includes expenses related to the acquisition of kelway . ( 4 ) represents the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway . ( 5 ) primarily includes expenses related to the consolidation of office locations north of chicago and secondary-offering-related expenses . ( 6 ) based on a normalized effective tax rate of 38.0 % ( 39.0 % prior to the kelway acquisition ) , except for the non-cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway , which were tax effected at a rate of 35.4 % . the aggregate adjustment for income taxes also includes a $ 4.0 million deferred tax benefit recorded during the year ended december 31 , 2015 as a result of a tax rate reduction in the united kingdom and additional tax expense during the year ended december 31 , 2015 of $ 3.3 million as a result of recording withholding tax on the unremitted earnings of our canadian subsidiary . additionally , note that certain acquisition costs are non-deductible . ( 7 ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 's financial results . adjusted ebitda adjusted ebitda was $ 1,018.5 million for the year ended december 31 , 2015 , an increase of $ 111.5 million , or 12.3 % , compared to $ 907.0 million for the year ended december 31 , 2014 . as a percentage of net sales , adjusted ebitda was 7.8 % and 7.5 % for the years ended december 31 , 2015 and 2014 , respectively . 37 replace_table_token_12_th ( 1 ) represents our share of net ( income ) loss from our equity investments . our share of kelway 's net loss includes our 35 % share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to the acquisition . ( 2 ) primarily includes expenses related to the acquisition of kelway . ( 3 ) represents the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway . ( 4 ) primarily includes certain historical retention costs , unusual , non-recurring litigation matters , secondary-offering-related expenses and expenses related to the consolidation of office locations north of chicago . ( 5 ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 's financial results . organic net sales growth and organic net sales growth on constant currency basis organic net sales , which excludes the impact of the acquisition of kelway , increased $ 563.5 million , or 4.7 % , to $ 12,638.0 million for the year ended december 31 , 2015 , compared to $ 12,074.5 million for the year ended december 31 , 2014 . organic net sales on a constant currency basis , which excludes the impact of foreign currency translation , for the year ended december 31 , 2015 increased $ 635.0 million , or 5.3 % , to $ 12,638.0 million , compared to $ 12,003.0 million for the year ended december 31 , 2014 . replace_table_token_13_th ( 1 ) represents five months for the year ended december 31 , 2015 of kelway 's financial results . ( 2 ) represents the effect of translating the prior year results of our canadian subsidiary at the average exchange rates applicable in the current year . 38 year ended december 31 , 2014 compared to year ended december 31 , 2013 results of operations , in dollars and as a percentage of net sales , for the years ended december 31 , 2014 and 2013 are as follows : replace_table_token_14_th net sales net sales by segment , in dollars and as a percentage of total net sales , and the year-over-year dollar and percentage change in net sales for the years ended december 31 , 2014 and 2013 are as follows : replace_table_token_15_th ( 1 ) there were 254 selling days for the years ended december 31 , 2014 and 2013. total net sales in 2014 increased $ 1,305.9 million , or 12.1 % , to $ 12,074.5 million , compared to $ 10,768.6 million in 2013. the increase in total net sales was primarily
| cash flows cash flows from operating , investing and financing activities are as follows : replace_table_token_21_th 45 operating activities cash flows from operating activities are as follows : replace_table_token_22_th ( 1 ) includes items such as deferred income taxes , depreciation and amortization , equity-based compensation expense , gain on remeasurement of equity method investment , loss ( income ) from equity method investment and net loss on extinguishments of long-term debt . ( 2 ) the increase in cash flows reflected stronger operating results driven by organic sales growth and the impact of consolidating five months of kelway financial results . a decrease in the net loss on extinguishments of long-term debt , as a result of fewer debt refinancing activities in 2015 as compared to 2014 , and lower interest expense , partially offset by higher income tax expense , also contributed to the strong operating results . ( 3 ) the decrease in cash flows was driven by a higher accounts receivable balance at december 31 , 2015 driven by higher sales in our public segment where customers generally take longer to pay than customers in our corporate segment , slower government payments in certain states due to budget issues and the lower accounts receivable balance at december 31 , 2014 driven by early payments from certain customers . ( 4 ) the decrease in cash flows was primarily due to the lower inventory balance as of december 31 , 2014 as a result of the timing of inventory receipts and earlier than expected inventory shipments at the end of 2014 due to accelerated customer roll-outs and an increase in inventory on-hand as of december 31 , 2015 to support the growth in the business . ( 5 ) the increase in cash flows was primarily due to the timing of inventory purchases , longer payment terms with certain vendors and growth in the business . replace_table_token_23_th ( 1 ) includes items such as depreciation and amortization , equity-based compensation expense and net loss on extinguishments of long-term debt . ( 2 ) the increase in cash flows reflected stronger operating results in 2014 compared to 2013 .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows cash flows from operating , investing and financing activities are as follows : replace_table_token_21_th 45 operating activities cash flows from operating activities are as follows : replace_table_token_22_th ( 1 ) includes items such as deferred income taxes , depreciation and amortization , equity-based compensation expense , gain on remeasurement of equity method investment , loss ( income ) from equity method investment and net loss on extinguishments of long-term debt . ( 2 ) the increase in cash flows reflected stronger operating results driven by organic sales growth and the impact of consolidating five months of kelway financial results . a decrease in the net loss on extinguishments of long-term debt , as a result of fewer debt refinancing activities in 2015 as compared to 2014 , and lower interest expense , partially offset by higher income tax expense , also contributed to the strong operating results . ( 3 ) the decrease in cash flows was driven by a higher accounts receivable balance at december 31 , 2015 driven by higher sales in our public segment where customers generally take longer to pay than customers in our corporate segment , slower government payments in certain states due to budget issues and the lower accounts receivable balance at december 31 , 2014 driven by early payments from certain customers . ( 4 ) the decrease in cash flows was primarily due to the lower inventory balance as of december 31 , 2014 as a result of the timing of inventory receipts and earlier than expected inventory shipments at the end of 2014 due to accelerated customer roll-outs and an increase in inventory on-hand as of december 31 , 2015 to support the growth in the business . ( 5 ) the increase in cash flows was primarily due to the timing of inventory purchases , longer payment terms with certain vendors and growth in the business . replace_table_token_23_th ( 1 ) includes items such as depreciation and amortization , equity-based compensation expense and net loss on extinguishments of long-term debt . ( 2 ) the increase in cash flows reflected stronger operating results in 2014 compared to 2013 .
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Suspicious Activity Report : we also have three other operating segments : cdw advanced services ; canada ; and kelway , each of which do not meet the reportable segment quantitative thresholds and , accordingly , are included in an all other category ( “ other ” ) . for additional information relating to kelway , see note 3 ( acquisition ) to these consolidated financial statements . the cdw advanced services business consists primarily of customized engineering services delivered by technology specialists and engineers , and managed services that include infrastructure as a service ( “ iaas ” ) offerings . effective january 1 , 2016 , the cdw advanced services business will be included in our corporate and public segments and other will be comprised of canada and kelway . revenues in the u.s. from the sale of hardware , software , custom configuration and third-party provided services are recorded within our corporate and public segments . we may sell all or only select products that our vendor partners offer . each vendor partner agreement provides for specific terms and conditions , which may include one or more of the following : product return privileges , price protection policies , purchase discounts and vendor incentive programs , such as purchase or sales rebates and cooperative advertising reimbursements . we also resell software for major software publishers . our agreements with software publishers allow the end-user customer to acquire software or licensed products and services . in addition to helping our customers determine the best software solutions for their needs , we help them manage their software agreements , including warranties and renewals . a significant portion of our advertising and marketing expenses is reimbursed through cooperative advertising programs with our vendor partners . these programs are at the discretion of our vendor partners and are typically tied to sales or other commitments to be met by us within a specified period of time . 30 trends and key factors affecting our financial performance we believe the following trends may have an important impact on our financial performance : our public segment sales are impacted by government spending policies , budget priorities and revenue levels . an adverse change in any of these factors could cause our public segment customers to reduce their purchases or to terminate or not renew contracts with us , which could adversely affect our business , results of operations or cash flows . for the year ended december 31 , 2015 , sales to federal customers increased year-over-year in the mid-teens as we continued to benefit from strategic changes made to better align with new federal government purchasing programs implemented last year . during the same period , sales to state and local customers also increased year-over-year in the mid-teens , driven by the continued focus on public safety . meeting k-12 customer digital curriculum testing needs through sales of client devices was a significant contributor to education sales throughout 2014 and into early 2015. education sales decreased slightly in 2015 as a decline in k-12 client device sales was partially offset by an increase in netcomm sales . in 2015 , we were named as provider on both the largest number of applications and the largest dollar amounts requested for funds by k-12 customers to support internal connections for the 2014-2015 program year of the u.s. federal communications commission e-rate program . the amount and timing of e-rate funds approval and customer implementation is not certain . an important factor affecting our ability to generate sales and achieve our targeted operating results is the impact of general economic conditions on our customers ' willingness to spend on information technology . during the year ended december 31 , 2015 , global economic signals were mixed . we continue to closely monitor macroeconomic conditions . uncertainties related to potential changes in tax and regulatory policy , potential interest rate increases , weakening consumer and business confidence or increased unemployment could result in reduced or deferred spending on information technology products and services by our customers and result in increased competitive pricing pressures . we believe that our customers ' transition to more complex technology solutions will continue to be an important growth area for us in the future . however , because the market for technology products and services is highly competitive , our success at capitalizing on this transition will be based on our ability to tailor specific solutions to customer needs , the quality and breadth of our product and service offerings , the knowledge and expertise of our sales force , price , product availability and speed of delivery . during the year ended december 31 , 2015 , customer priorities continued to shift away from last year 's focus on client devices towards more integrated solutions , which grew substantially faster than transactional sales . key business metrics our management monitors a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary . we believe that the most important of these measures and ratios include average daily sales , gross margin , operating margin , net income , non-gaap net income , net income per common share , non-gaap net income per diluted share , ebitda and adjusted ebitda , free cash flow , return on invested capital , cash and cash equivalents , net working capital , cash conversion cycle ( defined to be days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable , based on a rolling three-month average ) , debt levels including available credit and leverage ratios , sales per coworker , and coworker turnover . these measures and ratios are compared to standards or objectives set by management , so that actions can be taken , as necessary , in order to achieve the standards and objectives . story_separator_special_tag adjusted ebitda is also the primary measure used in certain key covenants and definitions contained in the credit agreement governing our term loan , including the excess cash flow payment provision , the restricted payment covenant and the net leverage ratio . these covenants and definitions are material components of the term loan as they are used in determining the interest rate applicable to the term loan , our ability to make certain investments , incur additional debt and make restricted payments , such as dividends and share repurchases , as well as whether we are required to make additional principal prepayments on the term loan beyond the quarterly amortization payments . for further details regarding the term loan , see note 8 ( long-term debt ) to the accompanying consolidated financial statements . non-gaap net income non-gaap net income was $ 503.5 million for the year ended december 31 , 2015 , an increase of $ 93.6 million , or 22.8 % , compared to $ 409.9 million for the year ended december 31 , 2014 . 36 replace_table_token_11_th ( 1 ) includes amortization expense for acquisition-related intangible assets , primarily customer relationships , customer contracts and trade names . ( 2 ) represents our 35 % share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to our acquisition of kelway . ( 3 ) primarily includes expenses related to the acquisition of kelway . ( 4 ) represents the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway . ( 5 ) primarily includes expenses related to the consolidation of office locations north of chicago and secondary-offering-related expenses . ( 6 ) based on a normalized effective tax rate of 38.0 % ( 39.0 % prior to the kelway acquisition ) , except for the non-cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway , which were tax effected at a rate of 35.4 % . the aggregate adjustment for income taxes also includes a $ 4.0 million deferred tax benefit recorded during the year ended december 31 , 2015 as a result of a tax rate reduction in the united kingdom and additional tax expense during the year ended december 31 , 2015 of $ 3.3 million as a result of recording withholding tax on the unremitted earnings of our canadian subsidiary . additionally , note that certain acquisition costs are non-deductible . ( 7 ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 's financial results . adjusted ebitda adjusted ebitda was $ 1,018.5 million for the year ended december 31 , 2015 , an increase of $ 111.5 million , or 12.3 % , compared to $ 907.0 million for the year ended december 31 , 2014 . as a percentage of net sales , adjusted ebitda was 7.8 % and 7.5 % for the years ended december 31 , 2015 and 2014 , respectively . 37 replace_table_token_12_th ( 1 ) represents our share of net ( income ) loss from our equity investments . our share of kelway 's net loss includes our 35 % share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to the acquisition . ( 2 ) primarily includes expenses related to the acquisition of kelway . ( 3 ) represents the gain resulting from the remeasurement of our previously held 35 % equity investment to fair value upon the completion of the acquisition of kelway . ( 4 ) primarily includes certain historical retention costs , unusual , non-recurring litigation matters , secondary-offering-related expenses and expenses related to the consolidation of office locations north of chicago . ( 5 ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 's financial results . organic net sales growth and organic net sales growth on constant currency basis organic net sales , which excludes the impact of the acquisition of kelway , increased $ 563.5 million , or 4.7 % , to $ 12,638.0 million for the year ended december 31 , 2015 , compared to $ 12,074.5 million for the year ended december 31 , 2014 . organic net sales on a constant currency basis , which excludes the impact of foreign currency translation , for the year ended december 31 , 2015 increased $ 635.0 million , or 5.3 % , to $ 12,638.0 million , compared to $ 12,003.0 million for the year ended december 31 , 2014 . replace_table_token_13_th ( 1 ) represents five months for the year ended december 31 , 2015 of kelway 's financial results . ( 2 ) represents the effect of translating the prior year results of our canadian subsidiary at the average exchange rates applicable in the current year . 38 year ended december 31 , 2014 compared to year ended december 31 , 2013 results of operations , in dollars and as a percentage of net sales , for the years ended december 31 , 2014 and 2013 are as follows : replace_table_token_14_th net sales net sales by segment , in dollars and as a percentage of total net sales , and the year-over-year dollar and percentage change in net sales for the years ended december 31 , 2014 and 2013 are as follows : replace_table_token_15_th ( 1 ) there were 254 selling days for the years ended december 31 , 2014 and 2013. total net sales in 2014 increased $ 1,305.9 million , or 12.1 % , to $ 12,074.5 million , compared to $ 10,768.6 million in 2013. the increase in total net sales was primarily
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1,060 | see discussion on gain on sale of subsidiary to joint venture . o net income for the year ended december 31 , 2015 includes a gain of $ 3.3 million , net of tax , on the sale of the infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded during the third quarter . see discussion on other income . o the results for 2014 include credits to federal income taxes of $ 2.5 million as a result of the reduction in amic 's valuation allowance related to its net deferred tax asset at december 31 , 2014 ; · consolidated investment yield ( on an annualized basis ) of 2.8 % in 2015 compared to 3.3 % in 2014 ; and · book value of $ 18.73 per common share at december 31 , 2015 compared to $ 17.25 at december 31 , 2014. the following is a summary of key performance information by segment : · the medical stop-loss segment reported income before taxes of $ 23.1 million and $ 21.9 million for the years ended december 31 , 2015 and 2014 , respectively ; o premiums earned increased $ 32.8 million for the year ended december 31 , 2015 when compared to 2014. the increase in premiums earned is primarily due to increased volume of business produced by ihc risk solutions . o underwriting experience for the medical stop-loss segment , as indicated by its u.s. gaap combined ratios , is as follows for the years indicated ( in thousands ) : replace_table_token_6_th ( a ) loss ratio represents insurance benefits claims and reserves divided by premiums earned . ( b ) expense ratio represents net commissions , administrative fees , premium taxes and other underwriting expenses divided by premiums earned . ( c ) the combined ratio is equal to the sum of the loss ratio and the expenses ratio . o loss ratios increased primarily from the assumed lines of medical stop-loss business and from our affiliated owned mgu due to higher claims experience while expense ratios decreased due to lower commission expenses . · the fully insured health segment reported $ 6.5 million of income before taxes for the year ended december 31 , 2015 compared to losses before taxes of $ 2.0 million for the comparable period in 2014. the increase in profitability is largely due to lower loss ratios and lower combined ratios in 2015 primarily as a result of exiting the market for major medical health plans for individuals and families and small group major medical ( collectively major medical ) and a $ 0.5 million gain recorded upon the acquisition of a controlling interest in global accident facilities , llc ( gaf ) ; o for the year ended december 31 , 2015 , premiums earned in the fully insured health segment decreased by $ 47.0 million over the comparable period in 2014. a decrease in the premiums earned from major medical of $ 58.4 million is largely the result of the strategic decision to focus on specialty health products . the decrease in major medical premiums was partially offset by increases in the specialty health business as a result of new product launches and broader marketing of our short-term medical plans , and by growth in pet insurance and occupational accident lines of business ; o underwriting experience , as indicated by its u.s. gaap combined ratios , for the fully insured segment are as follows for the years indicated ( in thousands ) : replace_table_token_7_th o the lower loss ratios in 2015 are primarily attributable to the effects of exiting major medical . in 2014 , we began to adjust our mix of business from major medical to specialty health insurance lines of business and , as a result , loss ratios have improved although expense ratios associated with these types of products are somewhat higher . · income before taxes from the group disability , life and dbl segment in 2015 increased $ 3.6 million compared to prior year results . the increase is primarily the result of increased volume and retentions in the long term disability ( ltd ) line combined with lower loss ratios ; · losses before taxes from the individual life , annuities and other segment decreased $ 6.5 million for the year ended december 31 , 2015 primarily due to a $ 5.1 million pre-tax gain recorded in connection with the sale of infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded during the third quarter of 2015 in addition to less amortization of deferred costs in correlation to the coinsurance and assumptions of certain ceded life and annuity policies ; · losses before tax from the corporate segment for the year ended december 31 , 2015 were comparable to the same period in 2014 ; and · premiums by principal product for the years indicated are as follows ( in thousands ) : replace_table_token_8_th replace_table_token_9_th information pertaining to the company 's business segments is provided in note 17 of notes to consolidated financial statements included in item 8. critical accounting policies the accounting and reporting policies of the company conform to u.s. gaap . the preparation of the consolidated financial statements in conformity with u.s. gaap requires the company 's management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . a summary of the company 's significant accounting policies and practices is provided in note 1 of the notes to the consolidated financial statements included in item 8 of this report . management has identified the accounting policies described below as those that , due to the judgments , estimates and assumptions inherent in those policies , are critical to an understanding of the company 's consolidated financial statements and this management 's discussion and analysis . story_separator_special_tag all dac within a particular product type is amortized on the same basis using the following methods : for traditional life insurance and other premium paying policies , amortization of dac is charged to expense over the related premium revenue recognition period . assumptions used in the amortization of dac are determined based upon the conditions as of the date of policy issue or assumption and are not generally revised during the life of the policy . for long duration type contracts , such as annuities and universal life business , amortization of dac is charged to expense over the life of the underlying contracts based on the present value of the estimated gross profits ( `` egps `` ) expected to be realized over the life of the book of contracts . egps consist of margins based on expected mortality rates , persistency rates , interest rate spreads , and other revenues and expenses . the company regularly evaluates its egps to determine if actual experience or other evidence suggests that earlier estimates should be revised . if the company determines that the current assumptions underlying the egps are no longer the best estimate for the future due to changes in actual versus expected mortality rates , persistency rates , interest rate spreads , or other revenues and expenses , the future egps are updated using the new assumptions and prospective unlocking occurs . these updated egps are utilized for future amortization calculations . the total amortization recorded to date is adjusted through a current charge or credit to the consolidated statements of income . internal replacements of insurance and investment contracts determined to result in a replacement contract that is substantially changed from the original contract will be accounted for as an extinguishment of the original contract , resulting in a release of the unamortized deferred acquisition costs , unearned revenue , and deferral of sales inducements associated with the replaced contract . investments the company has classified all of its investments as either available-for-sale or trading securities . these investments are carried at fair value with unrealized gains and losses reported through other comprehensive income ( loss ) for available-for-sale securities or as unrealized gains or losses in the consolidated statements of income for trading securities . available-for-sale securities totaled $ 437.0 million and $ 597.8 million at december 31 , 2015 and 2014 , respectively . premiums and discounts on debt securities purchased at other than par value are amortized and accreted , respectively , to interest income in the consolidated statements of income , using the constant yield method over the period to maturity . net realized gains and losses on investments are computed using the specific identification method and are reported in the consolidated statements of income on the trade date . fair value is determined using quoted market prices when available . in some cases , we use quoted market prices for similar instruments in active markets and or model-derived valuations where inputs are observable in active markets . when there are limited or inactive trading markets , we use industry-standard pricing methodologies , including discounted cash flow models , whose inputs are based on management assumptions and available current market information . further , we retain independent pricing vendors to assist in valuing certain instruments . most of the securities in our portfolio are classified in either level 1 or level 2 of the fair value hierarchy . the company periodically reviews and assesses the vendor 's qualifications and the design and appropriateness of its pricing methodologies . management will on occasion challenge pricing information on certain individual securities and , through communications with the vendor , obtain information about the assumptions , inputs and methodologies used in pricing those securities , and corroborate it against documented pricing methodologies . validation procedures are in place to determine completeness and accuracy of pricing information , including , but not limited to : ( i ) review of exception reports that ( a ) identify any zero or un-priced securities ; ( b ) identify securities with no price change ; and ( c ) identify securities with significant price changes ; ( ii ) performance of trend analyses ; ( iii ) periodic comparison of pricing to alternative pricing sources ; and ( iv ) comparison of pricing changes to expectations based on rating changes , benchmarks or control groups . in certain circumstances , pricing is unavailable from the vendor and broker pricing information is used to determine fair value . in these instances , management will assess the quality of the data sources , the underlying assumptions and the reasonableness of the broker quotes based on the current market information available . to determine if an exception represents an error , management will often have to exercise judgment . procedures to resolve an exception vary depending on the significance of the security and its related class , the frequency of the exception , the risk of material misstatement , and the availability of information for the security . these procedures include , but are not limited to : ( i ) a price challenge process with the vendor ; ( ii ) pricing from a different vendor ; ( iii ) a reasonableness review ; and ( iv ) a change in price based on better information , such as an actual market trade , among other things . management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the fair value hierarchy . declines in value of securities available-for-sale that are judged to be other-than-temporary are determined based on the specific identification method . the company reviews its investment securities regularly and determines whether other-than-temporary impairments have occurred . the factors considered by management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include , but are not limited to : the length of
| liquidity insurance group the insurance group normally provides cash flow from : ( i ) operations ; ( ii ) the receipt of scheduled principal payments on its portfolio of fixed maturities ; and ( iii ) earnings on investments . such cash flow is partially used to fund liabilities for insurance policy benefits . these liabilities represent long-term and short-term obligations . corporate corporate derives its funds principally from : ( i ) dividends from the insurance group ; ( ii ) management fees from its subsidiaries ; and ( iii ) investment income from corporate liquidity . regulatory constraints historically have not affected the company 's consolidated liquidity , although state insurance laws have provisions relating to the ability of the parent company to use cash generated by the insurance group . the insurance group declared and paid $ 10.6 million , $ 10.0 million and $ 12.0 million of cash dividends to corporate in 2015 , 2014 and 2013 , respectively . corporate utilizes cash primarily for the payment of general overhead expenses , common stock dividends , common stock repurchases and debt repayment . cash flows the company had $ 19.2 million and $ 25.1 million of cash and cash equivalents as of december 30 , 2015 and december 31 , 2014 , respectively . for year ended december 31 , 2015 , operating activities of the company utilized $ 164.7 million of cash , investment activities provided $ 168.3 million , and $ 9.5 million of cash was utilized for financing activities . the decrease in cash from operating activities , and the corresponding increase in cash from investing activities , primarily reflects the transfer of approximately $ 208.0 million of cash to an unaffiliated reinsurer during the third quarter of 2015 in connection with a reinsurance and sale transaction . investing activities also reflect $ 4.5 million of proceeds received from the deconsolidation of subsidiaries , net of the cash divested in the transactions .
| 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. |
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 insurance group the insurance group normally provides cash flow from : ( i ) operations ; ( ii ) the receipt of scheduled principal payments on its portfolio of fixed maturities ; and ( iii ) earnings on investments . such cash flow is partially used to fund liabilities for insurance policy benefits . these liabilities represent long-term and short-term obligations . corporate corporate derives its funds principally from : ( i ) dividends from the insurance group ; ( ii ) management fees from its subsidiaries ; and ( iii ) investment income from corporate liquidity . regulatory constraints historically have not affected the company 's consolidated liquidity , although state insurance laws have provisions relating to the ability of the parent company to use cash generated by the insurance group . the insurance group declared and paid $ 10.6 million , $ 10.0 million and $ 12.0 million of cash dividends to corporate in 2015 , 2014 and 2013 , respectively . corporate utilizes cash primarily for the payment of general overhead expenses , common stock dividends , common stock repurchases and debt repayment . cash flows the company had $ 19.2 million and $ 25.1 million of cash and cash equivalents as of december 30 , 2015 and december 31 , 2014 , respectively . for year ended december 31 , 2015 , operating activities of the company utilized $ 164.7 million of cash , investment activities provided $ 168.3 million , and $ 9.5 million of cash was utilized for financing activities . the decrease in cash from operating activities , and the corresponding increase in cash from investing activities , primarily reflects the transfer of approximately $ 208.0 million of cash to an unaffiliated reinsurer during the third quarter of 2015 in connection with a reinsurance and sale transaction . investing activities also reflect $ 4.5 million of proceeds received from the deconsolidation of subsidiaries , net of the cash divested in the transactions .
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Suspicious Activity Report : see discussion on gain on sale of subsidiary to joint venture . o net income for the year ended december 31 , 2015 includes a gain of $ 3.3 million , net of tax , on the sale of the infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded during the third quarter . see discussion on other income . o the results for 2014 include credits to federal income taxes of $ 2.5 million as a result of the reduction in amic 's valuation allowance related to its net deferred tax asset at december 31 , 2014 ; · consolidated investment yield ( on an annualized basis ) of 2.8 % in 2015 compared to 3.3 % in 2014 ; and · book value of $ 18.73 per common share at december 31 , 2015 compared to $ 17.25 at december 31 , 2014. the following is a summary of key performance information by segment : · the medical stop-loss segment reported income before taxes of $ 23.1 million and $ 21.9 million for the years ended december 31 , 2015 and 2014 , respectively ; o premiums earned increased $ 32.8 million for the year ended december 31 , 2015 when compared to 2014. the increase in premiums earned is primarily due to increased volume of business produced by ihc risk solutions . o underwriting experience for the medical stop-loss segment , as indicated by its u.s. gaap combined ratios , is as follows for the years indicated ( in thousands ) : replace_table_token_6_th ( a ) loss ratio represents insurance benefits claims and reserves divided by premiums earned . ( b ) expense ratio represents net commissions , administrative fees , premium taxes and other underwriting expenses divided by premiums earned . ( c ) the combined ratio is equal to the sum of the loss ratio and the expenses ratio . o loss ratios increased primarily from the assumed lines of medical stop-loss business and from our affiliated owned mgu due to higher claims experience while expense ratios decreased due to lower commission expenses . · the fully insured health segment reported $ 6.5 million of income before taxes for the year ended december 31 , 2015 compared to losses before taxes of $ 2.0 million for the comparable period in 2014. the increase in profitability is largely due to lower loss ratios and lower combined ratios in 2015 primarily as a result of exiting the market for major medical health plans for individuals and families and small group major medical ( collectively major medical ) and a $ 0.5 million gain recorded upon the acquisition of a controlling interest in global accident facilities , llc ( gaf ) ; o for the year ended december 31 , 2015 , premiums earned in the fully insured health segment decreased by $ 47.0 million over the comparable period in 2014. a decrease in the premiums earned from major medical of $ 58.4 million is largely the result of the strategic decision to focus on specialty health products . the decrease in major medical premiums was partially offset by increases in the specialty health business as a result of new product launches and broader marketing of our short-term medical plans , and by growth in pet insurance and occupational accident lines of business ; o underwriting experience , as indicated by its u.s. gaap combined ratios , for the fully insured segment are as follows for the years indicated ( in thousands ) : replace_table_token_7_th o the lower loss ratios in 2015 are primarily attributable to the effects of exiting major medical . in 2014 , we began to adjust our mix of business from major medical to specialty health insurance lines of business and , as a result , loss ratios have improved although expense ratios associated with these types of products are somewhat higher . · income before taxes from the group disability , life and dbl segment in 2015 increased $ 3.6 million compared to prior year results . the increase is primarily the result of increased volume and retentions in the long term disability ( ltd ) line combined with lower loss ratios ; · losses before taxes from the individual life , annuities and other segment decreased $ 6.5 million for the year ended december 31 , 2015 primarily due to a $ 5.1 million pre-tax gain recorded in connection with the sale of infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded during the third quarter of 2015 in addition to less amortization of deferred costs in correlation to the coinsurance and assumptions of certain ceded life and annuity policies ; · losses before tax from the corporate segment for the year ended december 31 , 2015 were comparable to the same period in 2014 ; and · premiums by principal product for the years indicated are as follows ( in thousands ) : replace_table_token_8_th replace_table_token_9_th information pertaining to the company 's business segments is provided in note 17 of notes to consolidated financial statements included in item 8. critical accounting policies the accounting and reporting policies of the company conform to u.s. gaap . the preparation of the consolidated financial statements in conformity with u.s. gaap requires the company 's management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . a summary of the company 's significant accounting policies and practices is provided in note 1 of the notes to the consolidated financial statements included in item 8 of this report . management has identified the accounting policies described below as those that , due to the judgments , estimates and assumptions inherent in those policies , are critical to an understanding of the company 's consolidated financial statements and this management 's discussion and analysis . story_separator_special_tag all dac within a particular product type is amortized on the same basis using the following methods : for traditional life insurance and other premium paying policies , amortization of dac is charged to expense over the related premium revenue recognition period . assumptions used in the amortization of dac are determined based upon the conditions as of the date of policy issue or assumption and are not generally revised during the life of the policy . for long duration type contracts , such as annuities and universal life business , amortization of dac is charged to expense over the life of the underlying contracts based on the present value of the estimated gross profits ( `` egps `` ) expected to be realized over the life of the book of contracts . egps consist of margins based on expected mortality rates , persistency rates , interest rate spreads , and other revenues and expenses . the company regularly evaluates its egps to determine if actual experience or other evidence suggests that earlier estimates should be revised . if the company determines that the current assumptions underlying the egps are no longer the best estimate for the future due to changes in actual versus expected mortality rates , persistency rates , interest rate spreads , or other revenues and expenses , the future egps are updated using the new assumptions and prospective unlocking occurs . these updated egps are utilized for future amortization calculations . the total amortization recorded to date is adjusted through a current charge or credit to the consolidated statements of income . internal replacements of insurance and investment contracts determined to result in a replacement contract that is substantially changed from the original contract will be accounted for as an extinguishment of the original contract , resulting in a release of the unamortized deferred acquisition costs , unearned revenue , and deferral of sales inducements associated with the replaced contract . investments the company has classified all of its investments as either available-for-sale or trading securities . these investments are carried at fair value with unrealized gains and losses reported through other comprehensive income ( loss ) for available-for-sale securities or as unrealized gains or losses in the consolidated statements of income for trading securities . available-for-sale securities totaled $ 437.0 million and $ 597.8 million at december 31 , 2015 and 2014 , respectively . premiums and discounts on debt securities purchased at other than par value are amortized and accreted , respectively , to interest income in the consolidated statements of income , using the constant yield method over the period to maturity . net realized gains and losses on investments are computed using the specific identification method and are reported in the consolidated statements of income on the trade date . fair value is determined using quoted market prices when available . in some cases , we use quoted market prices for similar instruments in active markets and or model-derived valuations where inputs are observable in active markets . when there are limited or inactive trading markets , we use industry-standard pricing methodologies , including discounted cash flow models , whose inputs are based on management assumptions and available current market information . further , we retain independent pricing vendors to assist in valuing certain instruments . most of the securities in our portfolio are classified in either level 1 or level 2 of the fair value hierarchy . the company periodically reviews and assesses the vendor 's qualifications and the design and appropriateness of its pricing methodologies . management will on occasion challenge pricing information on certain individual securities and , through communications with the vendor , obtain information about the assumptions , inputs and methodologies used in pricing those securities , and corroborate it against documented pricing methodologies . validation procedures are in place to determine completeness and accuracy of pricing information , including , but not limited to : ( i ) review of exception reports that ( a ) identify any zero or un-priced securities ; ( b ) identify securities with no price change ; and ( c ) identify securities with significant price changes ; ( ii ) performance of trend analyses ; ( iii ) periodic comparison of pricing to alternative pricing sources ; and ( iv ) comparison of pricing changes to expectations based on rating changes , benchmarks or control groups . in certain circumstances , pricing is unavailable from the vendor and broker pricing information is used to determine fair value . in these instances , management will assess the quality of the data sources , the underlying assumptions and the reasonableness of the broker quotes based on the current market information available . to determine if an exception represents an error , management will often have to exercise judgment . procedures to resolve an exception vary depending on the significance of the security and its related class , the frequency of the exception , the risk of material misstatement , and the availability of information for the security . these procedures include , but are not limited to : ( i ) a price challenge process with the vendor ; ( ii ) pricing from a different vendor ; ( iii ) a reasonableness review ; and ( iv ) a change in price based on better information , such as an actual market trade , among other things . management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the fair value hierarchy . declines in value of securities available-for-sale that are judged to be other-than-temporary are determined based on the specific identification method . the company reviews its investment securities regularly and determines whether other-than-temporary impairments have occurred . the factors considered by management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include , but are not limited to : the length of
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1,061 | the decrease of $ 25.1 million , or 43.3 percent , in net income for the year ended december 31 , 2019 as compared with the year ended december 31 , 2018 , was primarily due to a $ 26.2 million increase in the provision for loan losses relating to a troubled loan relationship and impaired leases receivable . effective january 1 , 2020 , the company adopted accounting standards update ( “ asu ” ) 2016-13 , financial instruments – credit losses , which replaced the incurred loss methodology for estimating credit losses with a forward-looking current expected credit losses ( “ cecl ” ) methodology . the adoption resulted in a $ 17.4 million increase to the beginning balance of the allowance for credit losses , a $ 335,000 decrease to the beginning balance of the allowance for off-balance sheet-items and an after-tax charge of $ 12.2 million to the beginning balance of retained earnings . for the years ended december 31 , 2020 , 2019 and 2018 , our earnings per diluted share were $ 1.38 , $ 1.06 and $ 1.79 , respectively . 28 additional s ignificant financial highlights include : cash and due from banks increased $ 270.2 million to $ 391.8 million as of december 31 , 2020 from $ 121.7 million at december 31 , 2019 , primarily from higher volume of non-interest bearing deposits . the increase in deposits reflects depositors placing proceeds from ppp loans and proceeds from other government assistance programs with the bank , as well as an increase from our marketing efforts and depositors seeking safety for their funds . loans receivable increased by $ 270.0 million , or 5.9 percent , to $ 4.88 billion as of december 31 , 2020 , compared with $ 4.61 billion as of december 31 , 2019. the increase includes hanmi 's participation in the ppp where we originated $ 301.8 million of ppp loans in 2020. deposits were $ 5.28 billion at december 31 , 2020 compared with $ 4.70 billion at december 31 , 2019 as noninterest-bearing deposits increased $ 507.1 million and interest-bearing deposits increased by $ 68.9 million . cash dividends of $ 0.52 per share of common stock were declared for the year ended december 31 , 2020 compared with $ 0.96 per share of common stock for the years ended december 31 , 2019 and 2018. results of operations net interest income our primary source of revenue is net interest income , which is the difference between interest and fees derived from earning assets , and interest paid on liabilities obtained to fund those assets . our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities , referred to as volume changes . net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities , referred to as rate changes . interest rates charged on loans are affected principally by changes to market interest rates , the demand for such loans , the supply of money available for lending purposes , and other competitive factors . those factors are , in turn , affected by general economic conditions and other factors beyond our control , such as federal economic policies , the general supply of money in the economy , legislative tax policies , governmental budgetary matters , and the actions of the federal reserve . 29 the following table shows the average balances of assets , liabilities and stockholders ' equity ; the amount of interest income , on a tax equivalent basis and interest expense ; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities ; and the net interest spread and the net interest margin for the periods indicated . all average balances are daily average balances . replace_table_token_3_th ( 1 ) loans receivable include loans held for sale and exclude the allowance for credit losses . nonaccrual loans receivable are included in the average loans receivable balance . ( 2 ) amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate . ( 3 ) represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits . ( 4 ) represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 5 ) represents net interest income as a percentage of average interest-earning assets . 30 the table below shows changes in interest income and interest expense and the amounts attributable to variations in interest rates and volumes for the periods indicated . the variances attributable to simultaneous volume and rate changes have been allocated to the change due to volume and the change due to rate categories in proportion to the relationship of the absolute dollar amount attributable solely to the change in volume and to the change in rate . replace_table_token_4_th ( 1 ) loans receivable include loans held for sale and exclude the allowance for credit losses . nonaccrual loans receivable are included in the average loans receivable balance . ( 2 ) amounts calculated on a fully equivalent basis using the current statutory federal tax rate . 2020 compared to 2019 interest income , on a taxable equivalent basis , decreased $ 23.1 million , or 9.3 percent , to $ 223.9 million for the year ended december 31 , 2020 from $ 246.9 million for the year ended december 31 , 2019. interest expense decreased $ 27.9 million or 39.4 percent , to $ 43.0 million in 2020 from $ 70.9 million in 2019. net interest income , on a taxable equivalent basis , was $ 180.9 million and $ 176.0 million in 2020 and 2019 , respectively . story_separator_special_tag loans are placed on nonaccrual status when , in the opinion of management , the full timely collection of principal or interest is in doubt . generally , the accrual of interest is discontinued when principal or interest payments become more than 90 days past due , unless management believes the loan or lease is adequately collateralized and in the process of collection . however , in certain instances , we may place a particular loan or lease on nonaccrual status earlier , depending upon the individual circumstances surrounding the delinquency of the loan or lease . when a loan or lease is placed on nonaccrual status , previously accrued but unpaid interest is reversed against current income . subsequent collections of cash are applied as principal reductions when received , except when the ultimate collectability of principal is probable , in which case interest payments are credited to income . nonaccrual loans may be restored to accrual status when principal and interest become current and full repayment is expected , which generally occurs after sustained payment of six months . interest income is recognized on the accrual basis for impaired loans not meeting the criteria for nonaccrual . oreo consists of properties acquired by foreclosure or similar means or are vacant bank properties for which their usage for operations has ceased and management intends to offer for sale . except for nonperforming loans set forth below , management is not aware of any loans as of december 31 , 2020 for which known credit problems of the borrower would cause serious doubts as to the ability of such borrowers to comply with their present loan or lease repayment terms , or any known events that would result in the loan or lease being designated as nonperforming at some future date . management can not , however , predict the extent to which a deterioration in general economic conditions , real estate values , increases in general rates of interest , or changes in the financial condition or business of borrower may adversely affect a borrower 's ability to pay . as of december 31 , 2020 , the company had loans receivable modified under the cares act of $ 155.6 million . approximately 13.6 % , or $ 21.1 million , of modified loans and leases were under deferred payment arrangements , with the remainder making payments that were less than the contractually required amount . of the modified loans receivable portfolio , 20.1 % were special mention and 15.7 % were classified . in addition , 4.6 % were on nonaccrual status at december 31 , 2020. nonaccrual loans were $ 83.0 million , $ 63.8 million and $ 15.5 million as of december 31 , 2020 , 2019 and 2018 , respectively , representing an increase of $ 19.2 million , or 30.1 percent , in 2020 and an increase of $ 48.3 million , or 311.6 percent , in 2019. the increase in nonaccrual loans in 2020 was primarily due to the addition of $ 33.8 million for five hospitality loans and $ 12.4 million for two film tax credit loans , offset by a $ 25.3 million charge-off on a troubled relationship . at december 31 , 2020 , $ 33.0 million of nonaccrual loans and leases related to loans adversely affected by the covid-19 pandemic . as of december 31 , 2020 and 2019 , all loans and leases 90 days or more past due were classified as nonaccrual . all of the $ 83.0 million nonperforming loans as of december 31 , 2020 were considered nonperforming and resulted in aggregate individually evaluated allowances of $ 14.0 million . the allowance for collateral-dependent loans is calculated as the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals less estimated costs to sell . the allowance for collateral-dependent loans varies based on the collateral coverage of the loan at the time of designation as nonperforming . we continue to monitor the collateral coverage , based on recent appraisals , on these loans on a quarterly basis and adjust the allowance accordingly . as of december 31 , 2020 , oreo consisted of four properties with a combined carrying value of $ 2.4 million . as of december 31 , 2019 , there were two properties with a combined carrying value of $ 63,000 in oreo . individually evaluated loans prior to the adoption of asu 2016-13 , individually evaluated loans were measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate or , as a practical expedient , at the loan 's observable market price or the fair value of the collateral if the loan was collateral dependent , less estimated costs to sell . if the estimated value of the individually evaluated loan was less than the recorded investment in the loan , we charged-off the deficiency against the allowance for credit losses or we established a specific allowance in the allowance for credit losses . additionally , we excluded from the quarterly migration analysis individually evaluated loans when determining the amount of the allowance for credit losses required for the period . individually evaluated loans were $ 91.0 million , $ 64.8 million and $ 25.1 million as of december 31 , 2020 , 2019 and 2018 , respectively , representing an increase of $ 26.2 million , or 40.4 percent , in 2020 , and an increase of $ 39.6 million , or 157.8 percent , in 2019. specific allowance allocations associated with individually evaluated loans decreased $ 11.8 million to $ 14.0 million as of december 31 , 2020 , compared with $ 25.8 million as of december 31 , 2019 . 36 for the year ended december 31 , 2020 , we restructured monthly payments for five loans , with a net carrying value of $ 4.5 million at the time of modification
| capital resources and liquidity capital resources historically , our primary source of capital has been the retention of operating earnings . in order to ensure adequate levels of capital , management periodically assesses projected sources and uses of capital in conjunction with projected increases in assets and levels of risk . management considers , among other things , earnings generated from operations , and access to capital from financial markets through the issuance of additional securities , including common stock or notes , to meet our capital needs . 41 in response to the uncertainty surrounding the covid-19 pandemic , the board reduced the quarterly cash dividend paid on common stock for the third and fourth quarter of 2020 to $ 0.08 per share , from $ 0.12 per share paid in the second quarter of 2020 and $ 0.24 per share paid in the first quarter of 2020. the board believes these actions were the most prudent course of action as it continues to monitor the results of operations and financial condition of the company and expects to continue to re-evaluate quarterly the level of any subsequent regular quarterly dividend . we can not assure you that future dividends will not be reduced or eliminated based on such re-evaluation . the company 's ability to pay dividends to shareholders depends in part upon dividends it receives from the bank . california law restricts the amount available for cash dividends to the lesser of a bank 's retained earnings or net income for its last three fiscal years ( less any distributions to shareholders made during such period ) .
| 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. |
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.
```capital resources and liquidity capital resources historically , our primary source of capital has been the retention of operating earnings . in order to ensure adequate levels of capital , management periodically assesses projected sources and uses of capital in conjunction with projected increases in assets and levels of risk . management considers , among other things , earnings generated from operations , and access to capital from financial markets through the issuance of additional securities , including common stock or notes , to meet our capital needs . 41 in response to the uncertainty surrounding the covid-19 pandemic , the board reduced the quarterly cash dividend paid on common stock for the third and fourth quarter of 2020 to $ 0.08 per share , from $ 0.12 per share paid in the second quarter of 2020 and $ 0.24 per share paid in the first quarter of 2020. the board believes these actions were the most prudent course of action as it continues to monitor the results of operations and financial condition of the company and expects to continue to re-evaluate quarterly the level of any subsequent regular quarterly dividend . we can not assure you that future dividends will not be reduced or eliminated based on such re-evaluation . the company 's ability to pay dividends to shareholders depends in part upon dividends it receives from the bank . california law restricts the amount available for cash dividends to the lesser of a bank 's retained earnings or net income for its last three fiscal years ( less any distributions to shareholders made during such period ) .
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Suspicious Activity Report : the decrease of $ 25.1 million , or 43.3 percent , in net income for the year ended december 31 , 2019 as compared with the year ended december 31 , 2018 , was primarily due to a $ 26.2 million increase in the provision for loan losses relating to a troubled loan relationship and impaired leases receivable . effective january 1 , 2020 , the company adopted accounting standards update ( “ asu ” ) 2016-13 , financial instruments – credit losses , which replaced the incurred loss methodology for estimating credit losses with a forward-looking current expected credit losses ( “ cecl ” ) methodology . the adoption resulted in a $ 17.4 million increase to the beginning balance of the allowance for credit losses , a $ 335,000 decrease to the beginning balance of the allowance for off-balance sheet-items and an after-tax charge of $ 12.2 million to the beginning balance of retained earnings . for the years ended december 31 , 2020 , 2019 and 2018 , our earnings per diluted share were $ 1.38 , $ 1.06 and $ 1.79 , respectively . 28 additional s ignificant financial highlights include : cash and due from banks increased $ 270.2 million to $ 391.8 million as of december 31 , 2020 from $ 121.7 million at december 31 , 2019 , primarily from higher volume of non-interest bearing deposits . the increase in deposits reflects depositors placing proceeds from ppp loans and proceeds from other government assistance programs with the bank , as well as an increase from our marketing efforts and depositors seeking safety for their funds . loans receivable increased by $ 270.0 million , or 5.9 percent , to $ 4.88 billion as of december 31 , 2020 , compared with $ 4.61 billion as of december 31 , 2019. the increase includes hanmi 's participation in the ppp where we originated $ 301.8 million of ppp loans in 2020. deposits were $ 5.28 billion at december 31 , 2020 compared with $ 4.70 billion at december 31 , 2019 as noninterest-bearing deposits increased $ 507.1 million and interest-bearing deposits increased by $ 68.9 million . cash dividends of $ 0.52 per share of common stock were declared for the year ended december 31 , 2020 compared with $ 0.96 per share of common stock for the years ended december 31 , 2019 and 2018. results of operations net interest income our primary source of revenue is net interest income , which is the difference between interest and fees derived from earning assets , and interest paid on liabilities obtained to fund those assets . our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities , referred to as volume changes . net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities , referred to as rate changes . interest rates charged on loans are affected principally by changes to market interest rates , the demand for such loans , the supply of money available for lending purposes , and other competitive factors . those factors are , in turn , affected by general economic conditions and other factors beyond our control , such as federal economic policies , the general supply of money in the economy , legislative tax policies , governmental budgetary matters , and the actions of the federal reserve . 29 the following table shows the average balances of assets , liabilities and stockholders ' equity ; the amount of interest income , on a tax equivalent basis and interest expense ; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities ; and the net interest spread and the net interest margin for the periods indicated . all average balances are daily average balances . replace_table_token_3_th ( 1 ) loans receivable include loans held for sale and exclude the allowance for credit losses . nonaccrual loans receivable are included in the average loans receivable balance . ( 2 ) amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate . ( 3 ) represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits . ( 4 ) represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 5 ) represents net interest income as a percentage of average interest-earning assets . 30 the table below shows changes in interest income and interest expense and the amounts attributable to variations in interest rates and volumes for the periods indicated . the variances attributable to simultaneous volume and rate changes have been allocated to the change due to volume and the change due to rate categories in proportion to the relationship of the absolute dollar amount attributable solely to the change in volume and to the change in rate . replace_table_token_4_th ( 1 ) loans receivable include loans held for sale and exclude the allowance for credit losses . nonaccrual loans receivable are included in the average loans receivable balance . ( 2 ) amounts calculated on a fully equivalent basis using the current statutory federal tax rate . 2020 compared to 2019 interest income , on a taxable equivalent basis , decreased $ 23.1 million , or 9.3 percent , to $ 223.9 million for the year ended december 31 , 2020 from $ 246.9 million for the year ended december 31 , 2019. interest expense decreased $ 27.9 million or 39.4 percent , to $ 43.0 million in 2020 from $ 70.9 million in 2019. net interest income , on a taxable equivalent basis , was $ 180.9 million and $ 176.0 million in 2020 and 2019 , respectively . story_separator_special_tag loans are placed on nonaccrual status when , in the opinion of management , the full timely collection of principal or interest is in doubt . generally , the accrual of interest is discontinued when principal or interest payments become more than 90 days past due , unless management believes the loan or lease is adequately collateralized and in the process of collection . however , in certain instances , we may place a particular loan or lease on nonaccrual status earlier , depending upon the individual circumstances surrounding the delinquency of the loan or lease . when a loan or lease is placed on nonaccrual status , previously accrued but unpaid interest is reversed against current income . subsequent collections of cash are applied as principal reductions when received , except when the ultimate collectability of principal is probable , in which case interest payments are credited to income . nonaccrual loans may be restored to accrual status when principal and interest become current and full repayment is expected , which generally occurs after sustained payment of six months . interest income is recognized on the accrual basis for impaired loans not meeting the criteria for nonaccrual . oreo consists of properties acquired by foreclosure or similar means or are vacant bank properties for which their usage for operations has ceased and management intends to offer for sale . except for nonperforming loans set forth below , management is not aware of any loans as of december 31 , 2020 for which known credit problems of the borrower would cause serious doubts as to the ability of such borrowers to comply with their present loan or lease repayment terms , or any known events that would result in the loan or lease being designated as nonperforming at some future date . management can not , however , predict the extent to which a deterioration in general economic conditions , real estate values , increases in general rates of interest , or changes in the financial condition or business of borrower may adversely affect a borrower 's ability to pay . as of december 31 , 2020 , the company had loans receivable modified under the cares act of $ 155.6 million . approximately 13.6 % , or $ 21.1 million , of modified loans and leases were under deferred payment arrangements , with the remainder making payments that were less than the contractually required amount . of the modified loans receivable portfolio , 20.1 % were special mention and 15.7 % were classified . in addition , 4.6 % were on nonaccrual status at december 31 , 2020. nonaccrual loans were $ 83.0 million , $ 63.8 million and $ 15.5 million as of december 31 , 2020 , 2019 and 2018 , respectively , representing an increase of $ 19.2 million , or 30.1 percent , in 2020 and an increase of $ 48.3 million , or 311.6 percent , in 2019. the increase in nonaccrual loans in 2020 was primarily due to the addition of $ 33.8 million for five hospitality loans and $ 12.4 million for two film tax credit loans , offset by a $ 25.3 million charge-off on a troubled relationship . at december 31 , 2020 , $ 33.0 million of nonaccrual loans and leases related to loans adversely affected by the covid-19 pandemic . as of december 31 , 2020 and 2019 , all loans and leases 90 days or more past due were classified as nonaccrual . all of the $ 83.0 million nonperforming loans as of december 31 , 2020 were considered nonperforming and resulted in aggregate individually evaluated allowances of $ 14.0 million . the allowance for collateral-dependent loans is calculated as the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals less estimated costs to sell . the allowance for collateral-dependent loans varies based on the collateral coverage of the loan at the time of designation as nonperforming . we continue to monitor the collateral coverage , based on recent appraisals , on these loans on a quarterly basis and adjust the allowance accordingly . as of december 31 , 2020 , oreo consisted of four properties with a combined carrying value of $ 2.4 million . as of december 31 , 2019 , there were two properties with a combined carrying value of $ 63,000 in oreo . individually evaluated loans prior to the adoption of asu 2016-13 , individually evaluated loans were measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate or , as a practical expedient , at the loan 's observable market price or the fair value of the collateral if the loan was collateral dependent , less estimated costs to sell . if the estimated value of the individually evaluated loan was less than the recorded investment in the loan , we charged-off the deficiency against the allowance for credit losses or we established a specific allowance in the allowance for credit losses . additionally , we excluded from the quarterly migration analysis individually evaluated loans when determining the amount of the allowance for credit losses required for the period . individually evaluated loans were $ 91.0 million , $ 64.8 million and $ 25.1 million as of december 31 , 2020 , 2019 and 2018 , respectively , representing an increase of $ 26.2 million , or 40.4 percent , in 2020 , and an increase of $ 39.6 million , or 157.8 percent , in 2019. specific allowance allocations associated with individually evaluated loans decreased $ 11.8 million to $ 14.0 million as of december 31 , 2020 , compared with $ 25.8 million as of december 31 , 2019 . 36 for the year ended december 31 , 2020 , we restructured monthly payments for five loans , with a net carrying value of $ 4.5 million at the time of modification
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1,062 | revenue from ip licensing and royalties represented the majority of our revenues for 2012 , and we expect revenue from ip licensing and royalties to represent a significant portion of our revenues in 2013. due to the shift in our engineering and research and development focus and the decline in major consumer electronics applications utilizing customized versions of our 1t-sram technology , our competitiveness and the demand for our ip have declined since the beginning of 2011. as a result of our reduced licensing activities , we expect our licensing and royalty revenue to decrease in future periods . our expectation is that our revenue will transition from primarily licensing and royalty to predominately ic product sales . to date , we have substantially completed our performance obligations under our existing agreements , and we expect licensing revenues to decline in 2013. we have also been focused on monetizing our ip portfolio to fund the change in our business . towards this end , we have completed asset sales for proceeds of approximately $ 39.3 million , including our december 2011 patent sale and march 2012 serdes technology sale . 30 the 1t-sram is our high-density , high-performance patented memory solution that represents an alternative to traditional volatile embedded memory . our i/o ip includes physical layer ( phy ) circuitry that allows ics to communicate with one another in the networking , storage , computer and consumer market segments . our phy ip supports serial interface technologies , such as 10 gbps base kr , xaui , pci express and sata , as well as parallel interfaces like ddr3 . our ip customers typically include fabless semiconductor companies , integrated device manufacturers ( idms ) and foundries . critical accounting policies and use of estimates our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america . note 1 to the consolidated financial statements in item 15 of this report describes the significant accounting policies and methods used in the preparation of our consolidated financial statements . we have identified the accounting policies below as some of the more critical to our business and the understanding of our results of operations . these policies may involve estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses . although we believe our judgments and estimates are appropriate , actual future results may differ from our estimates , and if different assumptions or conditions were to prevail , the results could be materially different from our reported results . revenue recognition licensing licensing revenue consists of fees earned from license agreements , development services and support and maintenance . license fees generally range from $ 100,000 to several million dollars per contract , depending on the scope and complexity of the development project , and the extent of the licensee 's rights . the vast majority of our contracts allow for milestone billing based on work performed . fees billed prior to revenue recognition are recorded as deferred revenue . we recognize revenue when persuasive evidence of an arrangement exists , delivery or performance has occurred , the sales price is fixed or determinable , and collectibility is reasonably assured . evidence of an arrangement generally consists of signed agreements . when sales arrangements contain multiple elements ( e.g . , license and services ) , we review each element to determine the separate units of accounting that exist within the agreement . if more than one unit of accounting exists , the consideration payable to us under the agreement is allocated to each unit of accounting using the relative fair value method . revenue is recognized for each unit of accounting when the revenue recognition criteria have been met for that unit of accounting . for stand-alone license agreements or license deliverables in multi-deliverable arrangements that do not require significant development , modification or customization , revenue is recognized when all revenue recognition criteria have been met . delivery of the licensed technology is typically the final revenue recognition criterion met , at which time revenue is recognized . if any of the criteria are not met , revenue recognition is deferred until such time as all criteria have been met . for license agreements that include deliverables requiring significant production , modification or customization , and where we have significant experience in meeting the design specifications involved in the contract and the direct labor hours related to services under the contract can be reasonably estimated , we recognize revenue over the period in which the contract services are performed . for these arrangements , we recognize revenue using the percentage of completion method . revenue recognized in any period is dependent on our progress toward completion of projects in progress . significant management judgment and discretion are used to estimate total direct labor hours . these judgmental elements include determining that we have the experience to meet the design specifications and estimating the total direct labor hours . we follow this method because we can obtain reasonably 31 dependable estimates of the direct labor hours to perform the contract services . the direct labor hours for the development of the licensee 's design are estimated at the beginning of the contract . as these direct labor hours are incurred , they are used as a measure of progress towards completion . we have the ability to reasonably estimate the direct labor hours on a contract-by-contract basis based on our experience in developing prior licensees ' designs . during the contract performance period , we review estimates of direct labor hours to complete the contracts as the contract progresses to completion and will revise our estimates of revenue and gross profit under the contract if we revise the estimations of the direct labor hours to complete . story_separator_special_tag royalty revenue decreased $ 1.0 million in 2011 primarily due to a decrease in shipments by an idm licensee whose product is used in the nintendo wii® game console , although we did experience an increase in royalties received from tsmc and from another licensee due to higher manufacturing volumes for their products . cost of net revenue and gross profit . replace_table_token_7_th replace_table_token_8_th cost of net revenue consists of personnel and related overhead allocation costs for engineers assigned to revenue-generating licensing arrangements and direct and indirect costs related to the sale of ic products . cost of net revenue decreased in 2012 , primarily due to the lack of new licensing agreements and reduced requirements for engineering services on existing contracts . cost of net revenue in 2012 included stock-based compensation expense of $ 0.1 million , a decrease of $ 0.3 million compared with 2011. total gross profit decreased to $ 5.7 million in 2012 primarily due to the decrease in license and royalty revenues . we expect that the cost of licensing revenue will decrease in absolute dollars in the future because we anticipate entering into few , if any , license agreements . this decrease will be offset by increased ic cost of net revenue from sales of our bandwidth engine ics . we expect cost as a percentage of total net revenue to increase as we generate additional revenue from the sale of ics rather than the licensing of ip . cost of net revenue increased in 2011 primarily due to two 1t-sram projects that were substantially completed in the fourth quarter of 2011 in which we expensed $ 1.2 million of previously capitalized deferred costs . cost of net revenue in 2011 included stock-based compensation expense of $ 0.4 million , an increase of $ 0.1 million compared with 2010. total gross profit decreased to 35 $ 10.8 million in 2011 primarily due to the lower margin contribution from the two 1t-sram projects and the decrease in royalty revenues . research and development . replace_table_token_9_th our research and development expenses include costs related to the development of our ic products and amortization of technology-based intangible assets . we expense research and development costs as they are incurred . the $ 2.3 million increase in 2012 was primarily due to increases in our mask tooling and other fabrication costs and stock-based compensation charges , partially offset by decreases in personnel-related costs resulting from lower headcount and lower amortization costs related to acquired intangible assets . the $ 0.7 million increase in 2011 was primarily due to increases in license costs for our cad software tools , costs related to the development of our bandwidth engine ic and stock-based compensation charges , offset by a decrease in acquisition-related contingent compensation charges . research and development expenses included stock-based compensation expense of $ 2.7 million , $ 2.0 million and $ 1.5 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . we expect that research and development expenses will remain flat or decrease slightly in absolute dollars and as a percentage of total revenue as our average headcount and related personnel costs are expected to be lower in 2013 as compared to 2012. the primary driver of research and development expense will be our continued investment in our current and next generation ic products . selling , general and administrative . replace_table_token_10_th selling , general and administrative expenses consist primarily of personnel and related overhead costs for sales , marketing , finance , human resources and general management . the $ 0.7 million decrease for 2012 was primarily due to a decrease in personnel-related , legal and stock-based compensation costs . the $ 1.5 million decrease for 2011 was primarily due to a decrease in personnel-related , acquisition-related and consulting costs . selling , general and administrative expenses included stock-based compensation expense of $ 1.1 million , $ 1.4 million and $ 1.5 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . we expect total selling , general and administrative expenses to remain flat or slightly decrease in absolute dollars . 36 gain on sale of assets . replace_table_token_11_th in march 2012 , we entered into an asset purchase agreement for an exclusive license of a portion of our intellectual property pertaining to our high-speed serial i/o technology for approximately $ 4.3 million . as part of the agreement , we provided certain technology transfer support services , and 15 employees of our india subsidiary accepted employment with the purchaser . in 2012 , we received approximately $ 3.4 million in cash , net of transaction costs , from this agreement , and we expect to receive an additional $ 0.6 million in march 2013. in december 2011 , we entered into a patent purchase agreement for the sale of 43 united states and 30 related foreign memory technology patents for $ 35.0 million in cash . we recognized a $ 35.6 million gain on this transaction . the gain was comprised of the $ 35.0 million of proceeds , plus $ 0.8 million , which we determined to be the value of our retained license to these patents , net of transaction costs . other income and expense , net . replace_table_token_12_th other income and expense , net primarily consisted of interest income on our investments , which was $ 0.2 million , $ 0.1 million and $ 0.3 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . interest income increased by $ 28,000 in 2012 due to a higher average investment balance and declined by $ 129,000 in 2011 primarily due to lower average investment balances and lower interest rates earned . the increase in interest income was offset by increases in other expenses . income tax provision . replace_table_token_13_th our 2012 and 2010 income tax provisions were primarily attributable to foreign jurisdictions .
| liquidity and capital resources as of december 31 , 2012 , we had cash , cash equivalents and investments totaling $ 40.7 million compared with a combined balance of $ 58.0 million at december 31 , 2011. our principal source of cash in 2011 was the sale of patents for $ 35 million in december 2011. in december 2010 , we sold approximately 5 million shares of common stock in a registered direct equity offering , raising approximately $ 20 million , net of transaction expenses of approximately $ 0.1 million . the offering was made under our $ 50 million shelf registration statement that became effective in november 2010. our primary capital requirements are to fund working capital , including development of our ic products , and any acquisitions that we make that require cash consideration or expenditures . in 2012 , we used $ 22.0 million in operating activities , which primarily resulted from the net loss of $ 27.6 million and the $ 3.3 million gain on the sale of assets , adjusted for non-cash charges consisting of stock-based compensation of $ 3.8 million , depreciation and amortization of $ 2.7 million and $ 2.4 million generated from changes in operating assets and liabilities . the changes in assets and liabilities primarily related to the timing of billing our customers , collection of receivables , recognition of revenue related to deferred revenues and payments to vendors . in 2011 , we used $ 15.7 million in operating activities , which primarily resulted from the net income of $ 11.3 million and $ 1.3 million generated from changes in operating assets and liabilities , reduced by the $ 35.6 million gain on the sale of patents and adjusted for non-cash charges consisting of stock-based compensation of $ 3.8 million and depreciation and amortization of $ 3.7 million . the changes in assets and liabilities primarily related to the timing of billing our customers , collection of receivables and payments to vendors .
| 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. |
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 as of december 31 , 2012 , we had cash , cash equivalents and investments totaling $ 40.7 million compared with a combined balance of $ 58.0 million at december 31 , 2011. our principal source of cash in 2011 was the sale of patents for $ 35 million in december 2011. in december 2010 , we sold approximately 5 million shares of common stock in a registered direct equity offering , raising approximately $ 20 million , net of transaction expenses of approximately $ 0.1 million . the offering was made under our $ 50 million shelf registration statement that became effective in november 2010. our primary capital requirements are to fund working capital , including development of our ic products , and any acquisitions that we make that require cash consideration or expenditures . in 2012 , we used $ 22.0 million in operating activities , which primarily resulted from the net loss of $ 27.6 million and the $ 3.3 million gain on the sale of assets , adjusted for non-cash charges consisting of stock-based compensation of $ 3.8 million , depreciation and amortization of $ 2.7 million and $ 2.4 million generated from changes in operating assets and liabilities . the changes in assets and liabilities primarily related to the timing of billing our customers , collection of receivables , recognition of revenue related to deferred revenues and payments to vendors . in 2011 , we used $ 15.7 million in operating activities , which primarily resulted from the net income of $ 11.3 million and $ 1.3 million generated from changes in operating assets and liabilities , reduced by the $ 35.6 million gain on the sale of patents and adjusted for non-cash charges consisting of stock-based compensation of $ 3.8 million and depreciation and amortization of $ 3.7 million . the changes in assets and liabilities primarily related to the timing of billing our customers , collection of receivables and payments to vendors .
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Suspicious Activity Report : revenue from ip licensing and royalties represented the majority of our revenues for 2012 , and we expect revenue from ip licensing and royalties to represent a significant portion of our revenues in 2013. due to the shift in our engineering and research and development focus and the decline in major consumer electronics applications utilizing customized versions of our 1t-sram technology , our competitiveness and the demand for our ip have declined since the beginning of 2011. as a result of our reduced licensing activities , we expect our licensing and royalty revenue to decrease in future periods . our expectation is that our revenue will transition from primarily licensing and royalty to predominately ic product sales . to date , we have substantially completed our performance obligations under our existing agreements , and we expect licensing revenues to decline in 2013. we have also been focused on monetizing our ip portfolio to fund the change in our business . towards this end , we have completed asset sales for proceeds of approximately $ 39.3 million , including our december 2011 patent sale and march 2012 serdes technology sale . 30 the 1t-sram is our high-density , high-performance patented memory solution that represents an alternative to traditional volatile embedded memory . our i/o ip includes physical layer ( phy ) circuitry that allows ics to communicate with one another in the networking , storage , computer and consumer market segments . our phy ip supports serial interface technologies , such as 10 gbps base kr , xaui , pci express and sata , as well as parallel interfaces like ddr3 . our ip customers typically include fabless semiconductor companies , integrated device manufacturers ( idms ) and foundries . critical accounting policies and use of estimates our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america . note 1 to the consolidated financial statements in item 15 of this report describes the significant accounting policies and methods used in the preparation of our consolidated financial statements . we have identified the accounting policies below as some of the more critical to our business and the understanding of our results of operations . these policies may involve estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses . although we believe our judgments and estimates are appropriate , actual future results may differ from our estimates , and if different assumptions or conditions were to prevail , the results could be materially different from our reported results . revenue recognition licensing licensing revenue consists of fees earned from license agreements , development services and support and maintenance . license fees generally range from $ 100,000 to several million dollars per contract , depending on the scope and complexity of the development project , and the extent of the licensee 's rights . the vast majority of our contracts allow for milestone billing based on work performed . fees billed prior to revenue recognition are recorded as deferred revenue . we recognize revenue when persuasive evidence of an arrangement exists , delivery or performance has occurred , the sales price is fixed or determinable , and collectibility is reasonably assured . evidence of an arrangement generally consists of signed agreements . when sales arrangements contain multiple elements ( e.g . , license and services ) , we review each element to determine the separate units of accounting that exist within the agreement . if more than one unit of accounting exists , the consideration payable to us under the agreement is allocated to each unit of accounting using the relative fair value method . revenue is recognized for each unit of accounting when the revenue recognition criteria have been met for that unit of accounting . for stand-alone license agreements or license deliverables in multi-deliverable arrangements that do not require significant development , modification or customization , revenue is recognized when all revenue recognition criteria have been met . delivery of the licensed technology is typically the final revenue recognition criterion met , at which time revenue is recognized . if any of the criteria are not met , revenue recognition is deferred until such time as all criteria have been met . for license agreements that include deliverables requiring significant production , modification or customization , and where we have significant experience in meeting the design specifications involved in the contract and the direct labor hours related to services under the contract can be reasonably estimated , we recognize revenue over the period in which the contract services are performed . for these arrangements , we recognize revenue using the percentage of completion method . revenue recognized in any period is dependent on our progress toward completion of projects in progress . significant management judgment and discretion are used to estimate total direct labor hours . these judgmental elements include determining that we have the experience to meet the design specifications and estimating the total direct labor hours . we follow this method because we can obtain reasonably 31 dependable estimates of the direct labor hours to perform the contract services . the direct labor hours for the development of the licensee 's design are estimated at the beginning of the contract . as these direct labor hours are incurred , they are used as a measure of progress towards completion . we have the ability to reasonably estimate the direct labor hours on a contract-by-contract basis based on our experience in developing prior licensees ' designs . during the contract performance period , we review estimates of direct labor hours to complete the contracts as the contract progresses to completion and will revise our estimates of revenue and gross profit under the contract if we revise the estimations of the direct labor hours to complete . story_separator_special_tag royalty revenue decreased $ 1.0 million in 2011 primarily due to a decrease in shipments by an idm licensee whose product is used in the nintendo wii® game console , although we did experience an increase in royalties received from tsmc and from another licensee due to higher manufacturing volumes for their products . cost of net revenue and gross profit . replace_table_token_7_th replace_table_token_8_th cost of net revenue consists of personnel and related overhead allocation costs for engineers assigned to revenue-generating licensing arrangements and direct and indirect costs related to the sale of ic products . cost of net revenue decreased in 2012 , primarily due to the lack of new licensing agreements and reduced requirements for engineering services on existing contracts . cost of net revenue in 2012 included stock-based compensation expense of $ 0.1 million , a decrease of $ 0.3 million compared with 2011. total gross profit decreased to $ 5.7 million in 2012 primarily due to the decrease in license and royalty revenues . we expect that the cost of licensing revenue will decrease in absolute dollars in the future because we anticipate entering into few , if any , license agreements . this decrease will be offset by increased ic cost of net revenue from sales of our bandwidth engine ics . we expect cost as a percentage of total net revenue to increase as we generate additional revenue from the sale of ics rather than the licensing of ip . cost of net revenue increased in 2011 primarily due to two 1t-sram projects that were substantially completed in the fourth quarter of 2011 in which we expensed $ 1.2 million of previously capitalized deferred costs . cost of net revenue in 2011 included stock-based compensation expense of $ 0.4 million , an increase of $ 0.1 million compared with 2010. total gross profit decreased to 35 $ 10.8 million in 2011 primarily due to the lower margin contribution from the two 1t-sram projects and the decrease in royalty revenues . research and development . replace_table_token_9_th our research and development expenses include costs related to the development of our ic products and amortization of technology-based intangible assets . we expense research and development costs as they are incurred . the $ 2.3 million increase in 2012 was primarily due to increases in our mask tooling and other fabrication costs and stock-based compensation charges , partially offset by decreases in personnel-related costs resulting from lower headcount and lower amortization costs related to acquired intangible assets . the $ 0.7 million increase in 2011 was primarily due to increases in license costs for our cad software tools , costs related to the development of our bandwidth engine ic and stock-based compensation charges , offset by a decrease in acquisition-related contingent compensation charges . research and development expenses included stock-based compensation expense of $ 2.7 million , $ 2.0 million and $ 1.5 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . we expect that research and development expenses will remain flat or decrease slightly in absolute dollars and as a percentage of total revenue as our average headcount and related personnel costs are expected to be lower in 2013 as compared to 2012. the primary driver of research and development expense will be our continued investment in our current and next generation ic products . selling , general and administrative . replace_table_token_10_th selling , general and administrative expenses consist primarily of personnel and related overhead costs for sales , marketing , finance , human resources and general management . the $ 0.7 million decrease for 2012 was primarily due to a decrease in personnel-related , legal and stock-based compensation costs . the $ 1.5 million decrease for 2011 was primarily due to a decrease in personnel-related , acquisition-related and consulting costs . selling , general and administrative expenses included stock-based compensation expense of $ 1.1 million , $ 1.4 million and $ 1.5 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . we expect total selling , general and administrative expenses to remain flat or slightly decrease in absolute dollars . 36 gain on sale of assets . replace_table_token_11_th in march 2012 , we entered into an asset purchase agreement for an exclusive license of a portion of our intellectual property pertaining to our high-speed serial i/o technology for approximately $ 4.3 million . as part of the agreement , we provided certain technology transfer support services , and 15 employees of our india subsidiary accepted employment with the purchaser . in 2012 , we received approximately $ 3.4 million in cash , net of transaction costs , from this agreement , and we expect to receive an additional $ 0.6 million in march 2013. in december 2011 , we entered into a patent purchase agreement for the sale of 43 united states and 30 related foreign memory technology patents for $ 35.0 million in cash . we recognized a $ 35.6 million gain on this transaction . the gain was comprised of the $ 35.0 million of proceeds , plus $ 0.8 million , which we determined to be the value of our retained license to these patents , net of transaction costs . other income and expense , net . replace_table_token_12_th other income and expense , net primarily consisted of interest income on our investments , which was $ 0.2 million , $ 0.1 million and $ 0.3 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . interest income increased by $ 28,000 in 2012 due to a higher average investment balance and declined by $ 129,000 in 2011 primarily due to lower average investment balances and lower interest rates earned . the increase in interest income was offset by increases in other expenses . income tax provision . replace_table_token_13_th our 2012 and 2010 income tax provisions were primarily attributable to foreign jurisdictions .
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1,063 | separately , under the terms of the joint venture agreement , yuhan contributed an initial investment of $ 10.0 million to immuneoncia , and we granted immuneoncia an exclusive license to one of our immune checkpoint antibodies for specified countries while retaining the rights for the u.s. , european and japanese markets , as well as global rights for immuneoncia to two additional antibodies that will be selected by immuneoncia from a group of pre-specified antibodies from our immuno-oncology antibody portfolio . yuhan owns 51 % of immuneoncia , while we own 49 % . 3sbio term sheet in june 2016 , we and tnk entered into a binding term sheet with shenyang sunshine pharmaceutical company ltd ( “ 3sbio ” ) , a china based company , to form a joint venture to develop and commercialize proprietary immunotherapies , including those developed from , including or using tnk 's car-t technology targeting cea positive cancers . due diligence and negotiations between 3sbio and us for the definitive agreement ( s ) are currently ongoing . in june 2016 , 3sbio purchased $ 10.0 million of common stock and warrants as part of our private placement offering . servier license and collaboration agreement in july 2016 , we announced a license and collaboration agreement with les laboratoires servier , sas , a corporation incorporated under the laws of france , and institut de recherches internationales servier , a company duly organized and existing under the laws of france ( individually and collectively , “ servier ” ) for the development , manufacture and commercialization of products using our fully human immuno-oncology anti-pd-1 mab sti-a1110 . the financial terms of the agreement include , among other things , a non-refundable upfront payment to sorrento of 25 million , or $ 27.4 million , which we received in july 2016. we may also receive development milestone payments for the initial product and each additional product . we may receive up to 710 million in various payments based on commercial sales milestones related to annual net sales levels for the initial product and then also for each additional product . in addition to the commercial sales milestones , we will be entitled to receive variable royalties on the sales of all commercialized products ranging from high single-digit to double-digit percentages . during the twelve months ended december 31 , 2016 , we recognized $ 3.8 million in license fee revenue pursuant to the agreement . cha biotech term sheet in august 2016 , we announced a binding term sheet to create a joint venture ( the “ jv ” ) with cha biotech co. , ltd. ( “ cbt ” ) of south korea to develop and commercialize proprietary car modified cellular therapies based on cbt 's activated killer cell ( “ akc ” ) technology in combination with five of our cars for all disease conditions , including oncology and infectious diseases . the jv will cover products on a global basis with the exception of the greater chinese market , which includes mainland china , hong kong , macau and taiwan . in addition , we will obtain an exclusive license to develop and commercialize cbt 's novel investigator-initiated trial stage akc technology in major territories , including the united states and europe , and with a co-exclusive license in china . under the terms of the term sheet , we and cbt will make contributions of $ 2 million to the jv , and we will grant the jv an 51 exclusive license to five cars solely for combination with the akc technology , while cbt will contribute its akc technology . cbt will initi ally own 51 % of the jv while we will initially hold the remaining 49 % . we , under a royalty bearing license , will also gain access to the akc technology for the use outside the jv alone or with any other of our product candidates . due diligence and negotiat ions between cbt and us for the definitive agreement ( s ) are currently ongoing . however , the binding term sheet is currently terminable by either party at will and no assurances can be made that the transaction will be completed . scilex acquisition on november 8 , 2016 , we entered into a stock purchase agreement with scilex pharmaceuticals inc. ( “ scilex ” ) and a majority of the stockholders of scilex ( the “ scilex stockholders ” ) pursuant to which we acquired from the scilex stockholders approximately 72 % of the outstanding capital stock of scilex . scilex 's lead product candidate , ztlido , is a next-generation lidocaine patch currently in development for the treatment of postherpetic neuralgia ( “ phn ” ) , a severe neuropathic pain condition . ztlido is manufactured by our collaboration partner in their state of the art manufacturing facility . celularity transaction in november 2016 , we entered into a non-binding term sheet between us , our subsidiary , tnk , and celularity , inc. ( “ celularity ” ) , a research and development company , setting forth the terms and conditions by which we or tnk with one or more third parties would contribute certain assets to celularity ( the “ celularity transaction ” ) . in addition , at this time , we loaned $ 5.0 million to celularity pursuant to a promissory note issued to us ( the “ celularity note ” ) . pursuant to the terms of the celularity note , the loan will be due and payable in full on the earlier of november 1 , 2017 and the occurrence of an event of default under the celularity note ( the “ maturity date ” ) . the celularity note also provides that , in certain circumstances , we shall loan celularity up to an additional $ 5.0 million over the next 12 months . story_separator_special_tag gain on derivative liability for the year ended december 31 , 2016 was $ 5,520 thousand compared to a loss on derivative liability of $ 3,360 thousand for the year ended december 31 , 2015. the increase in the year ended december 31 , 2016 as compared to the same period in 2015 is due to the expiration of the unexercised derivative liability on march 31 , 2016 associated with the cancelled call option on shares of nantkwest , inc. stock . gain or loss on equity investments . gain on equity investments for the year ended december 31 , 2016 was $ 435 thousand compared to a loss on equity investments of $ 4,041 thousand for the year ended december 31 , 2015. the increase was primarily due to the recognition of our portion of the loss from operations from our joint venture entities which did not exist during the same period in 2015. interest expense . interest expense for the years ended december 31 , 2016 and 2015 was $ 1,610 thousand and $ 1,652 thousand , respectively . interest income . interest income for the years ended december 31 , 2016 and 2015 was $ 272 thousand and $ 24 thousand , respectively . the increase in interest income resulted in an increase in notes receivables in the current year compared to prior period . we expect that continued low interest rates will significantly limit our interest income in the near term . income tax expense ( benefit ) . income tax benefit for the year ended december 31 , 2016 was $ 896 thousand . income tax expense for the year ended december 31 , 2015 was $ 36,314 thousand . net loss . net loss for the years ended december 31 , 2016 and 2015 was $ 63,937 thousand and $ 50,074 thousand , respectively . the increase in net loss is mainly attributable to the expanded research and development activities , and an increase in acquired in-process research and development and general and administrative activities . comparison of the years ended december 31 , 2015 and 2014 revenues . revenues were $ 4,590 thousand for the year ended december 31 , 2015 , as compared to $ 3,825 thousand for the year ended december 31 , 2014. the net increase of $ 765 thousand is primarily due to an increase in activities under our active grants for the year ended december 31 , 2015 compared to the corresponding period of 2014 due primarily to an increase in active grants in the year ending december 31 , 2015. sales and service revenues generated from the sale of customized reagents and providing contract development services decreased $ 277 thousand for the year ended december 2015 as compared to the same period of 2014. in june 2012 , we were awarded a third advanced technology sttr grant , with an initial award of $ 300 thousand , to support our program to generate and develop novel human antibody therapeutics to combat staph infections , including methicillin-resistant staph ( the “ staph grant ii award ” ) . the project period for the staph grant ii award covered a two-year period which commenced in june 2012 , with a total grant award of $ 600 thousand . the staph grant ii award revenues for the years ended december 31 , 2015 , 2014 and 2013 , were $ 0 , $ 150 thousand and $ 308 thousand , respectively . in june 2014 , the niaid , a division of the nih awarded us the staph grant iii award , a phase ii sttr grant to support the advanced preclinical development of human bispecific antibody therapeutics to prevent and treat staph infections , including mrsa . the project period for the staph grant iii award covered a two-year period which commenced in june 2014 , with total funds available of approximately $ 1 million per year for up to 2 years . during the years ended december 31 , 2015 and 2014 , we recorded $ 884 thousand and $ 220 thousand of revenue , respectively , associated with the staph grant iii award . 55 in june 2014 , we were awarded the phase i sttr grant award , a phase i sttr grant entitled “ anti-pseudomonas immunotherapy and targ eted drug delivery ” from the niaid . the phase i sttr grant award was to support the preclinical development of novel anti- pseudomonas aeruginosa mab immunotherapy or an antibody-mediated targeted antibiotic delivery vehicle . each modality may be an effecti ve and safe stand-alone therapy and or a component of a “ cocktail ” therapeutic option for prevention and treatment of p. aeruginosa infections . the project period for the phase i sttr grant award covered a two-year period which commenced in july 2014 , with total funds available of approximately $ 300 thousand per year for up to 2 years . during the years ended december 31 , 2015 and 2014 , we recorded $ 302 thousand and $ 28 thousand of revenue , respectively , associated with the phase i sttr grant award . in july 2014 , we were awarded the phase i myc grant award , a phase i sttr grant from the nci , a division of the nih , entitled “ targeting of myc-max dimerization for the treatment of cancer ” . the phase i myc grant award was to support the preclinical development of the myc inhibitor , which interferes with the ppi between myc and its obligatory dimerization partner , max , preventing sequence-specific binding to dna and subsequent initiation of oncogenic transformation . the project period for the phase i myc grant award covered a one-year period which commenced in august 2014 , with total funds available of approximately $ 225 thousand . during the years ended december 31 , 2015 and 2014 , we recorded $ 139 thousand and $ 86 thousand of revenue , respectively
| cash flows from investing activities . net cash used for investing activities was $ 17.5 million for 2016 as compared to cash provided of $ 12.6 million for 2015. the net cash provided related primarily to purchases of investments of $ 6.0 million and fixed assets of $ 6.9 million . we expect to increase our investment in equipment as we seek to expand and progress our research and development capabilities . cash flows from financing activities . net cash provided by financing activities was $ 131.7 million for 2016 , which was primarily from the net proceeds from the issuance of common stock and the loan and security agreement and proceeds from the issuance of common stock , partially offset by cash payments for treasury shares . future liquidity needs . we have principally financed our operations through underwritten public offerings and private equity financings with aggregate net proceeds of $ 153.4 million , as we have not generated any product related revenue from our principal operations to date , and do not expect to generate significant revenue for several years , if ever . we will need to raise additional capital before we exhaust our current cash resources in order to continue to fund our research and development , including our plans for clinical and preclinical trials and new product development , as well as to fund operations generally . as and if necessary , we will seek to raise additional funds through various potential sources , such as equity and debt financings , or through corporate collaboration and license agreements . we can give no assurances that we will be able to secure such additional sources of funds to support our operations , or , if such funds are available to us , that such additional financing will be sufficient to meet our needs .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from investing activities . net cash used for investing activities was $ 17.5 million for 2016 as compared to cash provided of $ 12.6 million for 2015. the net cash provided related primarily to purchases of investments of $ 6.0 million and fixed assets of $ 6.9 million . we expect to increase our investment in equipment as we seek to expand and progress our research and development capabilities . cash flows from financing activities . net cash provided by financing activities was $ 131.7 million for 2016 , which was primarily from the net proceeds from the issuance of common stock and the loan and security agreement and proceeds from the issuance of common stock , partially offset by cash payments for treasury shares . future liquidity needs . we have principally financed our operations through underwritten public offerings and private equity financings with aggregate net proceeds of $ 153.4 million , as we have not generated any product related revenue from our principal operations to date , and do not expect to generate significant revenue for several years , if ever . we will need to raise additional capital before we exhaust our current cash resources in order to continue to fund our research and development , including our plans for clinical and preclinical trials and new product development , as well as to fund operations generally . as and if necessary , we will seek to raise additional funds through various potential sources , such as equity and debt financings , or through corporate collaboration and license agreements . we can give no assurances that we will be able to secure such additional sources of funds to support our operations , or , if such funds are available to us , that such additional financing will be sufficient to meet our needs .
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Suspicious Activity Report : separately , under the terms of the joint venture agreement , yuhan contributed an initial investment of $ 10.0 million to immuneoncia , and we granted immuneoncia an exclusive license to one of our immune checkpoint antibodies for specified countries while retaining the rights for the u.s. , european and japanese markets , as well as global rights for immuneoncia to two additional antibodies that will be selected by immuneoncia from a group of pre-specified antibodies from our immuno-oncology antibody portfolio . yuhan owns 51 % of immuneoncia , while we own 49 % . 3sbio term sheet in june 2016 , we and tnk entered into a binding term sheet with shenyang sunshine pharmaceutical company ltd ( “ 3sbio ” ) , a china based company , to form a joint venture to develop and commercialize proprietary immunotherapies , including those developed from , including or using tnk 's car-t technology targeting cea positive cancers . due diligence and negotiations between 3sbio and us for the definitive agreement ( s ) are currently ongoing . in june 2016 , 3sbio purchased $ 10.0 million of common stock and warrants as part of our private placement offering . servier license and collaboration agreement in july 2016 , we announced a license and collaboration agreement with les laboratoires servier , sas , a corporation incorporated under the laws of france , and institut de recherches internationales servier , a company duly organized and existing under the laws of france ( individually and collectively , “ servier ” ) for the development , manufacture and commercialization of products using our fully human immuno-oncology anti-pd-1 mab sti-a1110 . the financial terms of the agreement include , among other things , a non-refundable upfront payment to sorrento of 25 million , or $ 27.4 million , which we received in july 2016. we may also receive development milestone payments for the initial product and each additional product . we may receive up to 710 million in various payments based on commercial sales milestones related to annual net sales levels for the initial product and then also for each additional product . in addition to the commercial sales milestones , we will be entitled to receive variable royalties on the sales of all commercialized products ranging from high single-digit to double-digit percentages . during the twelve months ended december 31 , 2016 , we recognized $ 3.8 million in license fee revenue pursuant to the agreement . cha biotech term sheet in august 2016 , we announced a binding term sheet to create a joint venture ( the “ jv ” ) with cha biotech co. , ltd. ( “ cbt ” ) of south korea to develop and commercialize proprietary car modified cellular therapies based on cbt 's activated killer cell ( “ akc ” ) technology in combination with five of our cars for all disease conditions , including oncology and infectious diseases . the jv will cover products on a global basis with the exception of the greater chinese market , which includes mainland china , hong kong , macau and taiwan . in addition , we will obtain an exclusive license to develop and commercialize cbt 's novel investigator-initiated trial stage akc technology in major territories , including the united states and europe , and with a co-exclusive license in china . under the terms of the term sheet , we and cbt will make contributions of $ 2 million to the jv , and we will grant the jv an 51 exclusive license to five cars solely for combination with the akc technology , while cbt will contribute its akc technology . cbt will initi ally own 51 % of the jv while we will initially hold the remaining 49 % . we , under a royalty bearing license , will also gain access to the akc technology for the use outside the jv alone or with any other of our product candidates . due diligence and negotiat ions between cbt and us for the definitive agreement ( s ) are currently ongoing . however , the binding term sheet is currently terminable by either party at will and no assurances can be made that the transaction will be completed . scilex acquisition on november 8 , 2016 , we entered into a stock purchase agreement with scilex pharmaceuticals inc. ( “ scilex ” ) and a majority of the stockholders of scilex ( the “ scilex stockholders ” ) pursuant to which we acquired from the scilex stockholders approximately 72 % of the outstanding capital stock of scilex . scilex 's lead product candidate , ztlido , is a next-generation lidocaine patch currently in development for the treatment of postherpetic neuralgia ( “ phn ” ) , a severe neuropathic pain condition . ztlido is manufactured by our collaboration partner in their state of the art manufacturing facility . celularity transaction in november 2016 , we entered into a non-binding term sheet between us , our subsidiary , tnk , and celularity , inc. ( “ celularity ” ) , a research and development company , setting forth the terms and conditions by which we or tnk with one or more third parties would contribute certain assets to celularity ( the “ celularity transaction ” ) . in addition , at this time , we loaned $ 5.0 million to celularity pursuant to a promissory note issued to us ( the “ celularity note ” ) . pursuant to the terms of the celularity note , the loan will be due and payable in full on the earlier of november 1 , 2017 and the occurrence of an event of default under the celularity note ( the “ maturity date ” ) . the celularity note also provides that , in certain circumstances , we shall loan celularity up to an additional $ 5.0 million over the next 12 months . story_separator_special_tag gain on derivative liability for the year ended december 31 , 2016 was $ 5,520 thousand compared to a loss on derivative liability of $ 3,360 thousand for the year ended december 31 , 2015. the increase in the year ended december 31 , 2016 as compared to the same period in 2015 is due to the expiration of the unexercised derivative liability on march 31 , 2016 associated with the cancelled call option on shares of nantkwest , inc. stock . gain or loss on equity investments . gain on equity investments for the year ended december 31 , 2016 was $ 435 thousand compared to a loss on equity investments of $ 4,041 thousand for the year ended december 31 , 2015. the increase was primarily due to the recognition of our portion of the loss from operations from our joint venture entities which did not exist during the same period in 2015. interest expense . interest expense for the years ended december 31 , 2016 and 2015 was $ 1,610 thousand and $ 1,652 thousand , respectively . interest income . interest income for the years ended december 31 , 2016 and 2015 was $ 272 thousand and $ 24 thousand , respectively . the increase in interest income resulted in an increase in notes receivables in the current year compared to prior period . we expect that continued low interest rates will significantly limit our interest income in the near term . income tax expense ( benefit ) . income tax benefit for the year ended december 31 , 2016 was $ 896 thousand . income tax expense for the year ended december 31 , 2015 was $ 36,314 thousand . net loss . net loss for the years ended december 31 , 2016 and 2015 was $ 63,937 thousand and $ 50,074 thousand , respectively . the increase in net loss is mainly attributable to the expanded research and development activities , and an increase in acquired in-process research and development and general and administrative activities . comparison of the years ended december 31 , 2015 and 2014 revenues . revenues were $ 4,590 thousand for the year ended december 31 , 2015 , as compared to $ 3,825 thousand for the year ended december 31 , 2014. the net increase of $ 765 thousand is primarily due to an increase in activities under our active grants for the year ended december 31 , 2015 compared to the corresponding period of 2014 due primarily to an increase in active grants in the year ending december 31 , 2015. sales and service revenues generated from the sale of customized reagents and providing contract development services decreased $ 277 thousand for the year ended december 2015 as compared to the same period of 2014. in june 2012 , we were awarded a third advanced technology sttr grant , with an initial award of $ 300 thousand , to support our program to generate and develop novel human antibody therapeutics to combat staph infections , including methicillin-resistant staph ( the “ staph grant ii award ” ) . the project period for the staph grant ii award covered a two-year period which commenced in june 2012 , with a total grant award of $ 600 thousand . the staph grant ii award revenues for the years ended december 31 , 2015 , 2014 and 2013 , were $ 0 , $ 150 thousand and $ 308 thousand , respectively . in june 2014 , the niaid , a division of the nih awarded us the staph grant iii award , a phase ii sttr grant to support the advanced preclinical development of human bispecific antibody therapeutics to prevent and treat staph infections , including mrsa . the project period for the staph grant iii award covered a two-year period which commenced in june 2014 , with total funds available of approximately $ 1 million per year for up to 2 years . during the years ended december 31 , 2015 and 2014 , we recorded $ 884 thousand and $ 220 thousand of revenue , respectively , associated with the staph grant iii award . 55 in june 2014 , we were awarded the phase i sttr grant award , a phase i sttr grant entitled “ anti-pseudomonas immunotherapy and targ eted drug delivery ” from the niaid . the phase i sttr grant award was to support the preclinical development of novel anti- pseudomonas aeruginosa mab immunotherapy or an antibody-mediated targeted antibiotic delivery vehicle . each modality may be an effecti ve and safe stand-alone therapy and or a component of a “ cocktail ” therapeutic option for prevention and treatment of p. aeruginosa infections . the project period for the phase i sttr grant award covered a two-year period which commenced in july 2014 , with total funds available of approximately $ 300 thousand per year for up to 2 years . during the years ended december 31 , 2015 and 2014 , we recorded $ 302 thousand and $ 28 thousand of revenue , respectively , associated with the phase i sttr grant award . in july 2014 , we were awarded the phase i myc grant award , a phase i sttr grant from the nci , a division of the nih , entitled “ targeting of myc-max dimerization for the treatment of cancer ” . the phase i myc grant award was to support the preclinical development of the myc inhibitor , which interferes with the ppi between myc and its obligatory dimerization partner , max , preventing sequence-specific binding to dna and subsequent initiation of oncogenic transformation . the project period for the phase i myc grant award covered a one-year period which commenced in august 2014 , with total funds available of approximately $ 225 thousand . during the years ended december 31 , 2015 and 2014 , we recorded $ 139 thousand and $ 86 thousand of revenue , respectively
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1,064 | due to the lower levels in housing starts versus historical norms , increased competition for homebuilder business and cyclical fluctuations in commodity prices we have seen and may continue to experience pressure on our gross margins . in addition to these factors , there has been a trend of consolidation within the building products supply industry . however , our industry remains highly fragmented and competitive and we will continue to face significant competition from local and regional suppliers . we still believe there are several meaningful trends that indicate u.s. housing demand will continue to trend towards recovering to the historical average . these trends include relatively low interest rates , the aging of housing stock , and normal population growth due to immigration and birthrate exceeding death rate . while the rate of market growth has recently eased , industry forecasters , including the national association of homebuilders ( “ nahb ” ) , expect to see continued increases in housing demand over the next year . 24 targeting large product ion homebuilders . in recent years , the homebuilding industry has undergone consolidation , and the larger homebuilders have increased their market share . we expect that trend to continue as larger homebuilders have better liquidity and land positions relati ve to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in servicing large homebuilders with certain profitability expectation s. additionally , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . repair and remodel end market . although the repair and remodel end market is influenced by housing starts to a lesser degree than the homebuilding market , the repair and remodel end market is still dependent upon some of the same factors as the homebuilding market , including demographic trends , interest rates , consumer confidence , employment rates , foreclosure rates , and the health of the economy and home financing markets . we expect that our ability to remain competitive in this space will depend on our continued ability to provide a high level of customer service coupled with a broad product offering . use of prefabricated components . homebuilders are increasingly using prefabricated components in order to realize increased efficiency , overcome skilled construction labor shortages and improve quality . shortening cycle time from start to completion is a key imperative of the homebuilders during periods of strong consumer demand . we see the demand for prefabricated components increasing as the residential new construction market continues to strengthen and the availability of skilled construction labor remains limited . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs and availability , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , housing starts , the high cost of land development , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . housing affordability . the affordability of housing can be a key driver in demand for our products . home affordability is influenced by a number of economic factors , such as the level of employment , consumer confidence , consumer income , supply of houses , the availability of financing and interest rates . changes in the inventory of available homes as well as economic factors relative to home prices could result in changes to the affordability of homes . as a result , homebuyer demand may shift towards smaller , or larger , homes creating fluctuations in demand for our products . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are oftentimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and striving to be the low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs multi-family and light commercial business . our primary focus has been , and continues to be , on single-family residential new construction and the repair and remodel end market . however , we will continue to identify opportunities for profitable growth in the multi-family and light commercial markets . capital structure : as a result of our historical growth through acquisitions , we have substantial indebtedness . we strive to optimize our capital structure to ensure that our financial needs are met in light of economic conditions , business activities , organic investments , opportunities for growth through acquisition and the overall risk characteristics of our underlying assets . we evaluate our capital structure on the basis of our leverage ratio as well as the factors described above . story_separator_special_tag the amounts reflected in the table above for operating leases represent future minimum lease payments under non-cancelable operating leases with an initial or remaining term in excess of one year at december 31 , 2018. purchase orders entered into in the ordinary course of business are excluded from the above table because they are payable within one year . amounts for which we are liable under purchase orders are reflected on our consolidated balance sheet as accounts payable and accrued liabilities . where it makes economic sense to do so , we plan to lease certain equipment during 2019 to support anticipated sales growth . these operating leases are not included in the table above . other cash obligations not reflected in the balance sheet in accordance with accounting principles generally accepted in the united states , commonly referred to as gaap , our operating leases are not recorded in our balance sheet . as described in note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k , effective january 1 , 2019 the company will adopt updated guidance issued by the fasb under the leases topic of the codification that will require us to recognize a lease liability in our balance sheet related to our operating lease obligations . the adoption of this guidance will have no impact to our remaining other finance obligations and capital lease obligations . in addition to the lease obligations included in the above table , we have residual value guarantees on certain equipment leases . under these leases we have the option of ( 1 ) purchasing the equipment at the end of the lease term , ( 2 ) arranging for the sale of the equipment to a third party , or ( 3 ) returning the equipment to the lessor to sell the equipment . if the sales proceeds in either case are less than the residual value , then we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement . the guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $ 5.7 million as of december 31 , 2018. based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term , we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements . accordingly , no accruals have been recognized for these guarantees . in addition , the company is party to certain agreements related to its other finance obligations which commit the company to perform certain repairs and maintenance obligations under the leases in a specified manner and timeframe that generally will occur throughout the next year . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . 32 we have identified the following accounting policy that requires us to mak e the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . goodwill . goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2018 , our goodwill balance was $ 740.4 million , representing 25.3 % of our total assets . we test goodwill for impairment in the fourth quarter of each year or at any other time when impairment indicators exist by comparing the estimated implied value of a reporting units ' goodwill to its book value . examples of such indicators that could cause us to test goodwill for impairment between annual tests include a significant change in the business climate , unexpected competition or a significant deterioration in market share . we may also consider market capitalization relative to our net assets . housing starts are a significant sales driver for us . if there is a significant decline or an expected decline in housing starts , this could adversely affect our expectations for a reporting unit and the value of that reporting unit . the process of evaluating goodwill for impairment involves the determination of the fair value of our reporting units . our reporting units are aligned with our nine geographic regions which are also determined to be our operating segments . in evaluating goodwill for impairment , the company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value . if it is concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying value , then no further testing of the goodwill is required . however , if we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying amount , we perform a quantitative goodwill impairment test . this test identifies both the existence of and the amount of goodwill impairment by comparing the fair value
| liquidity our liquidity at december 31 , 2018 was $ 595.5 million , which consists of net borrowing availability under the 2022 facility and cash on hand . we have substantial indebtedness following our recent acquisitions , which increased our interest expense and could have the effect of , among other things , reducing our flexibility to respond to changing business and economic conditions . from time to time , based on market conditions and other factors and subject to compliance with applicable laws and regulations , the company may repurchase or call the 2024 notes , repay debt , or otherwise enter into transactions regarding its capital structure . should the current industry conditions deteriorate or we pursue additional acquisitions , we may be required to raise additional funds through the sale of capital stock or debt in the public capital markets or in privately negotiated transactions . there can be no assurance that any of these financing options would be available on favorable terms , if at all . alternatives to help supplement our liquidity position could include , but are not limited to , idling or permanently closing additional facilities , adjusting our headcount in response to current business conditions , attempts to renegotiate leases , managing our working capital and or divesting of non-core businesses . there are no assurances that these steps would prove successful or materially improve our liquidity position . consolidated cash flows 2018 compared with 2017 cash provided by operating activities was $ 282.8 million and $ 178.5 million in 2018 and 2017 , respectively . the increase in cash provided by operations is due to increased sales and profitability as well as a $ 37.2 million decrease in cash interest payments during the year ended december 31 , 2018 compared to the prior year . working capital increased $ 92.2 million in 2018 compared to an increase of $ 93.9 million in 2017. the increase in working capital for the year ended december 31 , 2018 was largely due to the timing and value of both inventory purchases and cash paid to vendors during the year .
| 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. |
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 our liquidity at december 31 , 2018 was $ 595.5 million , which consists of net borrowing availability under the 2022 facility and cash on hand . we have substantial indebtedness following our recent acquisitions , which increased our interest expense and could have the effect of , among other things , reducing our flexibility to respond to changing business and economic conditions . from time to time , based on market conditions and other factors and subject to compliance with applicable laws and regulations , the company may repurchase or call the 2024 notes , repay debt , or otherwise enter into transactions regarding its capital structure . should the current industry conditions deteriorate or we pursue additional acquisitions , we may be required to raise additional funds through the sale of capital stock or debt in the public capital markets or in privately negotiated transactions . there can be no assurance that any of these financing options would be available on favorable terms , if at all . alternatives to help supplement our liquidity position could include , but are not limited to , idling or permanently closing additional facilities , adjusting our headcount in response to current business conditions , attempts to renegotiate leases , managing our working capital and or divesting of non-core businesses . there are no assurances that these steps would prove successful or materially improve our liquidity position . consolidated cash flows 2018 compared with 2017 cash provided by operating activities was $ 282.8 million and $ 178.5 million in 2018 and 2017 , respectively . the increase in cash provided by operations is due to increased sales and profitability as well as a $ 37.2 million decrease in cash interest payments during the year ended december 31 , 2018 compared to the prior year . working capital increased $ 92.2 million in 2018 compared to an increase of $ 93.9 million in 2017. the increase in working capital for the year ended december 31 , 2018 was largely due to the timing and value of both inventory purchases and cash paid to vendors during the year .
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Suspicious Activity Report : due to the lower levels in housing starts versus historical norms , increased competition for homebuilder business and cyclical fluctuations in commodity prices we have seen and may continue to experience pressure on our gross margins . in addition to these factors , there has been a trend of consolidation within the building products supply industry . however , our industry remains highly fragmented and competitive and we will continue to face significant competition from local and regional suppliers . we still believe there are several meaningful trends that indicate u.s. housing demand will continue to trend towards recovering to the historical average . these trends include relatively low interest rates , the aging of housing stock , and normal population growth due to immigration and birthrate exceeding death rate . while the rate of market growth has recently eased , industry forecasters , including the national association of homebuilders ( “ nahb ” ) , expect to see continued increases in housing demand over the next year . 24 targeting large product ion homebuilders . in recent years , the homebuilding industry has undergone consolidation , and the larger homebuilders have increased their market share . we expect that trend to continue as larger homebuilders have better liquidity and land positions relati ve to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in servicing large homebuilders with certain profitability expectation s. additionally , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . repair and remodel end market . although the repair and remodel end market is influenced by housing starts to a lesser degree than the homebuilding market , the repair and remodel end market is still dependent upon some of the same factors as the homebuilding market , including demographic trends , interest rates , consumer confidence , employment rates , foreclosure rates , and the health of the economy and home financing markets . we expect that our ability to remain competitive in this space will depend on our continued ability to provide a high level of customer service coupled with a broad product offering . use of prefabricated components . homebuilders are increasingly using prefabricated components in order to realize increased efficiency , overcome skilled construction labor shortages and improve quality . shortening cycle time from start to completion is a key imperative of the homebuilders during periods of strong consumer demand . we see the demand for prefabricated components increasing as the residential new construction market continues to strengthen and the availability of skilled construction labor remains limited . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs and availability , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , housing starts , the high cost of land development , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . housing affordability . the affordability of housing can be a key driver in demand for our products . home affordability is influenced by a number of economic factors , such as the level of employment , consumer confidence , consumer income , supply of houses , the availability of financing and interest rates . changes in the inventory of available homes as well as economic factors relative to home prices could result in changes to the affordability of homes . as a result , homebuyer demand may shift towards smaller , or larger , homes creating fluctuations in demand for our products . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are oftentimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and striving to be the low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs multi-family and light commercial business . our primary focus has been , and continues to be , on single-family residential new construction and the repair and remodel end market . however , we will continue to identify opportunities for profitable growth in the multi-family and light commercial markets . capital structure : as a result of our historical growth through acquisitions , we have substantial indebtedness . we strive to optimize our capital structure to ensure that our financial needs are met in light of economic conditions , business activities , organic investments , opportunities for growth through acquisition and the overall risk characteristics of our underlying assets . we evaluate our capital structure on the basis of our leverage ratio as well as the factors described above . story_separator_special_tag the amounts reflected in the table above for operating leases represent future minimum lease payments under non-cancelable operating leases with an initial or remaining term in excess of one year at december 31 , 2018. purchase orders entered into in the ordinary course of business are excluded from the above table because they are payable within one year . amounts for which we are liable under purchase orders are reflected on our consolidated balance sheet as accounts payable and accrued liabilities . where it makes economic sense to do so , we plan to lease certain equipment during 2019 to support anticipated sales growth . these operating leases are not included in the table above . other cash obligations not reflected in the balance sheet in accordance with accounting principles generally accepted in the united states , commonly referred to as gaap , our operating leases are not recorded in our balance sheet . as described in note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k , effective january 1 , 2019 the company will adopt updated guidance issued by the fasb under the leases topic of the codification that will require us to recognize a lease liability in our balance sheet related to our operating lease obligations . the adoption of this guidance will have no impact to our remaining other finance obligations and capital lease obligations . in addition to the lease obligations included in the above table , we have residual value guarantees on certain equipment leases . under these leases we have the option of ( 1 ) purchasing the equipment at the end of the lease term , ( 2 ) arranging for the sale of the equipment to a third party , or ( 3 ) returning the equipment to the lessor to sell the equipment . if the sales proceeds in either case are less than the residual value , then we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement . the guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $ 5.7 million as of december 31 , 2018. based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term , we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements . accordingly , no accruals have been recognized for these guarantees . in addition , the company is party to certain agreements related to its other finance obligations which commit the company to perform certain repairs and maintenance obligations under the leases in a specified manner and timeframe that generally will occur throughout the next year . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . 32 we have identified the following accounting policy that requires us to mak e the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . goodwill . goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2018 , our goodwill balance was $ 740.4 million , representing 25.3 % of our total assets . we test goodwill for impairment in the fourth quarter of each year or at any other time when impairment indicators exist by comparing the estimated implied value of a reporting units ' goodwill to its book value . examples of such indicators that could cause us to test goodwill for impairment between annual tests include a significant change in the business climate , unexpected competition or a significant deterioration in market share . we may also consider market capitalization relative to our net assets . housing starts are a significant sales driver for us . if there is a significant decline or an expected decline in housing starts , this could adversely affect our expectations for a reporting unit and the value of that reporting unit . the process of evaluating goodwill for impairment involves the determination of the fair value of our reporting units . our reporting units are aligned with our nine geographic regions which are also determined to be our operating segments . in evaluating goodwill for impairment , the company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value . if it is concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying value , then no further testing of the goodwill is required . however , if we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying amount , we perform a quantitative goodwill impairment test . this test identifies both the existence of and the amount of goodwill impairment by comparing the fair value
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1,065 | license revenue we currently derive a substantial majority of our revenue from cash collected on the sale of our content management and web building software licenses at workshop events held throughout the year , as well as principal collected on the sale of software licenses sold through extended payment term arrangements ( eptas ) . in the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a software as a service ( saas ) model . however , as we recognize revenue on our epta contracts as cash is collected , we will continue to derive software license revenue for the next two to three years as the original sale that derived the epta contract was a software license . 34 professional services revenue we generate professional services revenue primarily from website design and development , search engine optimization services , link building , paid search management services , and conversion rate optimization services . these services are typically billed on a fixed price basis or on a monthly recurring basis with an initial term of six to twelve months . subscription and hosting revenue during the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a saas model which provides access to our software for a monthly fee . we also derive revenue from monthly web hosting fees from our software license customers who utilize our hosting services . revenue is recognized ratably on a daily basis over the life of the contract for all subscription and hosting services . the typical contract is a recurring monthly contract , although terms range up to 12 months . as we progress in this transition from a software license model to a saas model , key metrics , such as net subscriber additions and monthly churn become increasingly important metrics in measuring fluctuations in revenue . product revenue we generate product revenue from the sale of dvd training courses covering a host of online marketing topics , including affiliate marketing , amazon® and ebay® training , comparison shopping engines , competitive reconnaissance , conversion rate optimization , keyword research , link building , localization and regionalization , paid search campaigns , permission marketing , search engine optimization , social media marketing , and google® analytics . these services are typically billed on a fixed price basis . commission revenue we generate commissions from contracted third-party companies who telemarket complementary products and services to our customer base . this commission is typically paid as a percentage of revenue generated by these third-party companies on products and services sold to our customer base . as we are currently reliant upon sales generated through our workshop channel , for both current revenue in the form of cash collected on the initial sale of the software license , dvd training courses , or professional services sold through our events , as well as future revenue in the form of principal cash collected on epta contracts , our revenue will fluctuate based upon the quantity of sales teams we have deployed at any point in time , quantity of events held , average cash percentage of buyers at events , average number of buying units at events , average purchase price , and average sales rate at each event . in addition to the metrics associated with our workshop events , our revenue will fluctuate with the dollar volume of collections on our receivables , as we recognize revenue upon receipt of cash from our customers and not at the time of sale . we have historically sold our products and services through an educational seminar model which has subjected us to claims by governmental agencies that we are required to register as a seller of business opportunities , as well as raised questions about the manner in which we sell the product . while we have successfully defended the claim of selling a business opportunity , except in the state of california which has a statute with different requirements than other jurisdictions , we have made changes to the manner in which we sell the product at our seminars in an effort to be more transparent . we do not believe our model constitutes a business opportunity , but we have the ability to adjust our model if there are changes in the law relative to selling business opportunities . our ability to effectively align our business model with the needs of our customers will impact our future growth opportunities . economic factors the tight credit markets in place over the past two years has adversely affected our business as consumers and businesses continued to be limited in their ability to obtain alternate sources of financing . since the tightening of the credit markets began , we have seen an increasing percentage of customers elect to utilize our financing option , which have terms of between two and three years . because we recognize revenue as cash is collected , and not at the time of sale , this increase in the percentage of customers utilizing our financing option has negatively impacted our current revenue , but will result in additional future revenue as customer payments are collected . 35 opportunities technological and product innovation has been the foundation of our long-term growth , and we intend to maintain our commitment to invest in product development , engineering excellence , and delivering high-quality products and services to customers . recognizing that one of our primary business objectives is to help entrepreneurs and small and medium businesses increase the effectiveness and visibility of their online presence , we organized crexendo web services . crexendo web services offers a wide range of services , including content management , saas , seo services , search engine management services , website and logo design services and conversion rate optimization services . story_separator_special_tag income tax provision during fiscal 2009 , we recorded an income tax provision of $ 5,681,000. this compares to an income tax provision of $ 3,039,000 during fiscal 2008. the income tax provision recorded in fiscal 2009 is higher than federal , state , and foreign statutory rates as a result of our settlement with the internal revenue service ( “ irs ” ) and the creation of a valuation allowance on certain deferred tax assets . in august 2009 , we reached a settlement with the irs resulting from its audit of our income tax returns for fiscal years 2007 , 2006 , and 2005. the settlement with the irs related to the following items : · the deductibility , under the provisions of internal revenue code section 274 ( “ section 274 ” ) , of 50 % of the cost of meals provided to attendees at our preview and workshop training sessions . the settlement reached with the irs appeals office allows us to deduct 100 % of all meals provided to attendees at both the preview and workshop training sessions . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . 40 · limitations imposed by internal revenue code section 382 ( “ section 382 ” ) . section 382 imposes limitations on a corporation 's ability to utilize its nols if it experiences an “ ownership change . ” in general terms , an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period . from the time of our formation through fiscal 2002 , we issued a significant number of shares , resulting in two changes of control , as defined by section 382. as a result of the most recent ownership change , utilization of our pre-ownership change nol carryovers are subject to an annual limitation under section 382. the annual limitation is determined by multiplying the value of our stock at the time of the ownership change by the applicable federal long-term tax-exempt rate . any unused annual limitation may be carried over to later years ( until those nols expire ) , and the amount of the limitation may , under certain circumstances , be increased by the “ recognized built-in gains ” that occur during the five-year period after the ownership change ( the “ recognition period ” ) . we had previously determined we had sufficient built-in gains to offset future income without limitation . as a result of the settlement reached with the irs , we conceded that the fiscal 2002 ownership change resulted in a section 382 limitation of $ 461,000 per year and that there were not sufficient built-in gains to offset future income . based on this settlement , we have determined that it is more likely than not that approximately $ 14,641,000 of our federal nol carry forwards will expire unutilized . we do not account for the forgone nol carryovers in our deferred tax assets and only account for the nol carryforwards that will not expire unutilized as a result of the restrictions of irc section 382 . · the irs argued to re-open our income tax returns for the fiscal years ended june 30 , 2004 and 2003 , both of which are closed from examination . the irs argued that under section 481 ( a ) there was a change in “ method of accounting ” with respect to our recognized built-in-gains described above . as part of the settlement , the irs appeals office found no merit to the assertion that section 481 ( a ) can be applied to the fiscal 2004 and 2003 tax returns . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . segment operating results the information below is organized in accordance with our three reportable segments . segment operating income ( loss ) is equal to segment net revenue less segment cost of revenue , sales and marketing , and general and administrative expenses . segment expenses do not include certain costs , such as corporate general and administrative expenses and share-based compensation expenses , which are not allocated to specific segments . operating results of our storesonline division ( in thousands ) replace_table_token_10_th year ended december 31 , 2010 compared to year ended december 31 , 2009 revenue revenue for the year ended december 31 , 2010 decreased 15 % to $ 64,471,000 from $ 75,880,000 for the year ended december 31 , 2009 . 41 revenue from our storesonline division is generated primarily through cash collected on the sale of storesonline software licenses at workshop events held throughout the year , as well as principal amounts collected on the sale of storesonline software licenses sold through eptas . fees for our storesonline software ( sos ) licenses sold under eptas are recognized as revenue as cash payments are received from the customer and not at the time of sale . revenue related to cash collected under epta agreements decreased to $ 18,028,000 for the year ended december 31 , 2010 , compared to $ 24,966,000 for the year ended december 31 , 2009. the decrease in cash collected under epta agreements was primarily due to a decrease in our accounts receivable balance , which for storesonline , generates revenue as cash is collected in future periods . our typical epta contract is for a period of two to three years . as such , increases in sales at our workshop events made through epta 's are initially recognized in our balance sheet , net of bad debt , through our deferred revenue balance , rather than through the income statement . as we have decreased the number of sales teams over the past two years from nine teams , to six teams , and finally to four teams , our principal collection
| liquidity and capital resources we had working capital of $ 11,388,000 and $ 17,064,000 as of december 31 , 2010 and 2009 , respectively . we had working capital , excluding deferred revenue , of $ 25,145,000 and $ 33,431,000 as of december 31 , 2010 and 2009 , respectively . deferred revenue balances represent historical sales for which we can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . cash and cash equivalents we had cash and cash equivalents of $ 14,207,000 and $ 21,549,000 , respectively . for the year ended december 31 , 2010 , we generated positive cash flows from operating activities of $ 39,000 compared to a use of cash for operating activities of $ 1,676,000 ( unaudited ) for the year ended december 31 , 2009. for the six months ended december 31 , 2009 we generated positive cash flows from operating activities of $ 2,578,000 compared to a use of cash for operating activities of $ 6,083,000 ( unaudited ) for the six months ended december 31 , 2008. during the year ended june 30 , 2009 we used $ 6,985,000 of cash for operating activities . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 21,564,000 and $ 20,426,000 as of december 31 , 2010 and 2009 , respectively . long-term trade receivables , net of allowance for doubtful accounts , were $ 9,442,000 and $ 6,264,000 as of december 31 , 2010 and 2009 , 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. |
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 we had working capital of $ 11,388,000 and $ 17,064,000 as of december 31 , 2010 and 2009 , respectively . we had working capital , excluding deferred revenue , of $ 25,145,000 and $ 33,431,000 as of december 31 , 2010 and 2009 , respectively . deferred revenue balances represent historical sales for which we can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . cash and cash equivalents we had cash and cash equivalents of $ 14,207,000 and $ 21,549,000 , respectively . for the year ended december 31 , 2010 , we generated positive cash flows from operating activities of $ 39,000 compared to a use of cash for operating activities of $ 1,676,000 ( unaudited ) for the year ended december 31 , 2009. for the six months ended december 31 , 2009 we generated positive cash flows from operating activities of $ 2,578,000 compared to a use of cash for operating activities of $ 6,083,000 ( unaudited ) for the six months ended december 31 , 2008. during the year ended june 30 , 2009 we used $ 6,985,000 of cash for operating activities . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 21,564,000 and $ 20,426,000 as of december 31 , 2010 and 2009 , respectively . long-term trade receivables , net of allowance for doubtful accounts , were $ 9,442,000 and $ 6,264,000 as of december 31 , 2010 and 2009 , respectively .
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Suspicious Activity Report : license revenue we currently derive a substantial majority of our revenue from cash collected on the sale of our content management and web building software licenses at workshop events held throughout the year , as well as principal collected on the sale of software licenses sold through extended payment term arrangements ( eptas ) . in the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a software as a service ( saas ) model . however , as we recognize revenue on our epta contracts as cash is collected , we will continue to derive software license revenue for the next two to three years as the original sale that derived the epta contract was a software license . 34 professional services revenue we generate professional services revenue primarily from website design and development , search engine optimization services , link building , paid search management services , and conversion rate optimization services . these services are typically billed on a fixed price basis or on a monthly recurring basis with an initial term of six to twelve months . subscription and hosting revenue during the fourth quarter of 2010 we transitioned approximately 80 % from a software license model to a saas model which provides access to our software for a monthly fee . we also derive revenue from monthly web hosting fees from our software license customers who utilize our hosting services . revenue is recognized ratably on a daily basis over the life of the contract for all subscription and hosting services . the typical contract is a recurring monthly contract , although terms range up to 12 months . as we progress in this transition from a software license model to a saas model , key metrics , such as net subscriber additions and monthly churn become increasingly important metrics in measuring fluctuations in revenue . product revenue we generate product revenue from the sale of dvd training courses covering a host of online marketing topics , including affiliate marketing , amazon® and ebay® training , comparison shopping engines , competitive reconnaissance , conversion rate optimization , keyword research , link building , localization and regionalization , paid search campaigns , permission marketing , search engine optimization , social media marketing , and google® analytics . these services are typically billed on a fixed price basis . commission revenue we generate commissions from contracted third-party companies who telemarket complementary products and services to our customer base . this commission is typically paid as a percentage of revenue generated by these third-party companies on products and services sold to our customer base . as we are currently reliant upon sales generated through our workshop channel , for both current revenue in the form of cash collected on the initial sale of the software license , dvd training courses , or professional services sold through our events , as well as future revenue in the form of principal cash collected on epta contracts , our revenue will fluctuate based upon the quantity of sales teams we have deployed at any point in time , quantity of events held , average cash percentage of buyers at events , average number of buying units at events , average purchase price , and average sales rate at each event . in addition to the metrics associated with our workshop events , our revenue will fluctuate with the dollar volume of collections on our receivables , as we recognize revenue upon receipt of cash from our customers and not at the time of sale . we have historically sold our products and services through an educational seminar model which has subjected us to claims by governmental agencies that we are required to register as a seller of business opportunities , as well as raised questions about the manner in which we sell the product . while we have successfully defended the claim of selling a business opportunity , except in the state of california which has a statute with different requirements than other jurisdictions , we have made changes to the manner in which we sell the product at our seminars in an effort to be more transparent . we do not believe our model constitutes a business opportunity , but we have the ability to adjust our model if there are changes in the law relative to selling business opportunities . our ability to effectively align our business model with the needs of our customers will impact our future growth opportunities . economic factors the tight credit markets in place over the past two years has adversely affected our business as consumers and businesses continued to be limited in their ability to obtain alternate sources of financing . since the tightening of the credit markets began , we have seen an increasing percentage of customers elect to utilize our financing option , which have terms of between two and three years . because we recognize revenue as cash is collected , and not at the time of sale , this increase in the percentage of customers utilizing our financing option has negatively impacted our current revenue , but will result in additional future revenue as customer payments are collected . 35 opportunities technological and product innovation has been the foundation of our long-term growth , and we intend to maintain our commitment to invest in product development , engineering excellence , and delivering high-quality products and services to customers . recognizing that one of our primary business objectives is to help entrepreneurs and small and medium businesses increase the effectiveness and visibility of their online presence , we organized crexendo web services . crexendo web services offers a wide range of services , including content management , saas , seo services , search engine management services , website and logo design services and conversion rate optimization services . story_separator_special_tag income tax provision during fiscal 2009 , we recorded an income tax provision of $ 5,681,000. this compares to an income tax provision of $ 3,039,000 during fiscal 2008. the income tax provision recorded in fiscal 2009 is higher than federal , state , and foreign statutory rates as a result of our settlement with the internal revenue service ( “ irs ” ) and the creation of a valuation allowance on certain deferred tax assets . in august 2009 , we reached a settlement with the irs resulting from its audit of our income tax returns for fiscal years 2007 , 2006 , and 2005. the settlement with the irs related to the following items : · the deductibility , under the provisions of internal revenue code section 274 ( “ section 274 ” ) , of 50 % of the cost of meals provided to attendees at our preview and workshop training sessions . the settlement reached with the irs appeals office allows us to deduct 100 % of all meals provided to attendees at both the preview and workshop training sessions . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . 40 · limitations imposed by internal revenue code section 382 ( “ section 382 ” ) . section 382 imposes limitations on a corporation 's ability to utilize its nols if it experiences an “ ownership change . ” in general terms , an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period . from the time of our formation through fiscal 2002 , we issued a significant number of shares , resulting in two changes of control , as defined by section 382. as a result of the most recent ownership change , utilization of our pre-ownership change nol carryovers are subject to an annual limitation under section 382. the annual limitation is determined by multiplying the value of our stock at the time of the ownership change by the applicable federal long-term tax-exempt rate . any unused annual limitation may be carried over to later years ( until those nols expire ) , and the amount of the limitation may , under certain circumstances , be increased by the “ recognized built-in gains ” that occur during the five-year period after the ownership change ( the “ recognition period ” ) . we had previously determined we had sufficient built-in gains to offset future income without limitation . as a result of the settlement reached with the irs , we conceded that the fiscal 2002 ownership change resulted in a section 382 limitation of $ 461,000 per year and that there were not sufficient built-in gains to offset future income . based on this settlement , we have determined that it is more likely than not that approximately $ 14,641,000 of our federal nol carry forwards will expire unutilized . we do not account for the forgone nol carryovers in our deferred tax assets and only account for the nol carryforwards that will not expire unutilized as a result of the restrictions of irc section 382 . · the irs argued to re-open our income tax returns for the fiscal years ended june 30 , 2004 and 2003 , both of which are closed from examination . the irs argued that under section 481 ( a ) there was a change in “ method of accounting ” with respect to our recognized built-in-gains described above . as part of the settlement , the irs appeals office found no merit to the assertion that section 481 ( a ) can be applied to the fiscal 2004 and 2003 tax returns . therefore , no liabilities are recognized in the consolidated financial statements related to this issue . segment operating results the information below is organized in accordance with our three reportable segments . segment operating income ( loss ) is equal to segment net revenue less segment cost of revenue , sales and marketing , and general and administrative expenses . segment expenses do not include certain costs , such as corporate general and administrative expenses and share-based compensation expenses , which are not allocated to specific segments . operating results of our storesonline division ( in thousands ) replace_table_token_10_th year ended december 31 , 2010 compared to year ended december 31 , 2009 revenue revenue for the year ended december 31 , 2010 decreased 15 % to $ 64,471,000 from $ 75,880,000 for the year ended december 31 , 2009 . 41 revenue from our storesonline division is generated primarily through cash collected on the sale of storesonline software licenses at workshop events held throughout the year , as well as principal amounts collected on the sale of storesonline software licenses sold through eptas . fees for our storesonline software ( sos ) licenses sold under eptas are recognized as revenue as cash payments are received from the customer and not at the time of sale . revenue related to cash collected under epta agreements decreased to $ 18,028,000 for the year ended december 31 , 2010 , compared to $ 24,966,000 for the year ended december 31 , 2009. the decrease in cash collected under epta agreements was primarily due to a decrease in our accounts receivable balance , which for storesonline , generates revenue as cash is collected in future periods . our typical epta contract is for a period of two to three years . as such , increases in sales at our workshop events made through epta 's are initially recognized in our balance sheet , net of bad debt , through our deferred revenue balance , rather than through the income statement . as we have decreased the number of sales teams over the past two years from nine teams , to six teams , and finally to four teams , our principal collection
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1,066 | increasing same-restaurant sales can improve segment profit because these incremental sales provide better leverage of our fixed and semi-fixed restaurant-level costs . a restaurant brand can generate same-restaurant sales increases through increases in guest traffic , increases in the average guest check , or a combination of the two . the average guest check can be impacted by menu price changes and by the mix of menu items sold . for each restaurant brand , we gather daily sales data and regularly analyze the guest traffic counts and the mix of menu items sold to aid in developing menu pricing , product offerings and promotional strategies . we focus on balancing our pricing and product offerings with other initiatives to produce sustainable same-restaurant sales growth . we compute same-restaurant sales using restaurants open at least 16 months because this period is generally required for new restaurant sales levels to normalize . sales at newly opened restaurants generally do not make a significant contribution to profitability in their initial months of operation due to operating or integration inefficiencies . our sales and expenses can be impacted significantly by the number and timing of new restaurant openings and closings , and relocations and remodeling of existing restaurants . pre-opening expenses each period reflect the costs associated with opening new restaurants in current and future periods . 28 fiscal 2019 financial highlights our sales from continuing operations were $ 8.51 billion in fiscal 2019 compared to $ 8.08 billion in fiscal 2018 . the 5.3 percent increase in sales from continuing operations was primarily driven by revenue from the addition of 39 net new company-owned restaurants and a combined darden same-restaurant sales increase of 2.5 percent . net earnings from continuing operations for fiscal 2019 were $ 718.6 million ( $ 5.73 per diluted share ) compared with net earnings from continuing operations for fiscal 2018 of $ 603.8 million ( $ 4.79 per diluted share ) . net earnings from continuing operations for fiscal 2019 increased 19.0 percent and diluted net earnings per share from continuing operations increased 19.6 percent compared with fiscal 2018 . our net loss from discontinued operations was $ 5.2 million ( $ 0.04 per diluted share ) for fiscal 2019 , compared with a net loss from discontinued operations of $ 7.8 million ( $ 0.06 per diluted share ) for fiscal 2018 . when combined with results from continuing operations , our diluted net earnings per share were $ 5.69 and $ 4.73 for fiscal 2019 and 2018 , respectively . outlook we expect fiscal 2020 sales from continuing operations to increase between 5.3 percent and 6.3 percent , driven by the impact of the 53 rd week in fiscal 2020 , combined darden same-restaurant sales growth of 1.0 percent to 2.0 percent and approximately 50 new restaurants . in fiscal 2020 , we expect our annual effective tax rate to be between 10.0 percent and 11.0 percent and we expect capital expenditures incurred to build new restaurants , remodel and maintain existing restaurants and technology initiatives to be between $ 450.0 million and $ 500.0 million . in june 2019 , we announced a quarterly dividend of $ 0.88 per share , payable on august 1 , 2019 . based on the $ 0.88 quarterly dividend declaration , our expected annual dividend is $ 3.52 per share , which reflects an increase of 17.3 percent compared to our fiscal 2019 annual dividend . dividends are subject to the approval of our board of directors and , accordingly , the timing and amount of our dividends are subject to change . 29 results of operations for fiscal 2019 and 2018 to facilitate review of our results of operations , the following table sets forth our financial results for the periods indicated . all information is derived from the consolidated statements of earnings for the fiscal years ended may 26 , 2019 and may 27 , 2018 : fiscal year ended percent change ( in millions ) may 26 , 2019 may 27 , 2018 2019 vs 2018 sales $ 8,510.4 $ 8,080.1 5.3 % costs and expenses : food and beverage 2,412.5 2,303.1 4.8 % restaurant labor 2,771.1 2,614.5 6.0 % restaurant expenses 1,477.8 1,417.1 4.3 % marketing expenses 255.3 252.3 1.2 % general and administrative expenses 405.5 409.8 ( 1.0 ) % depreciation and amortization 336.7 313.1 7.5 % impairments and disposal of assets , net 19.0 3.4 nm total operating costs and expenses $ 7,677.9 $ 7,313.3 5.0 % operating income 832.5 766.8 8.6 % interest , net 50.2 161.1 ( 68.8 ) % earnings before income taxes 782.3 605.7 29.2 % income tax expense ( 1 ) 63.7 1.9 nm earnings from continuing operations $ 718.6 $ 603.8 19.0 % losses from discontinued operations , net of tax ( 5.2 ) ( 7.8 ) nm net earnings $ 713.4 $ 596.0 19.7 % ( 1 ) effective tax rate 8.1 % 0.3 % nm- not meaningful . percentage increases and decreases over 100 percent were not considered meaningful . the following table details the number of company-owned restaurants currently reported in continuing operations , compared with the number open at the end of fiscal 2018 : replace_table_token_9_th ( 1 ) includes six locations in canada . ( 2 ) includes the 11 franchised restaurants acquired on august 28 , 2017 . ( 3 ) includes one the capital burger restaurant . 30 sales the following table presents our company-owned restaurant sales , u.s. same-restaurant sales ( srs ) and average annual sales per restaurant by brand for the periods indicated : replace_table_token_10_th ( 1 ) same-restaurant sales is a year-over-year comparison of each period 's sales volumes for a 52-week year and is limited to restaurants open at least 16 months . ( 2 ) average annual sales are calculated as net sales divided by total restaurant operating weeks multiplied by 52 weeks . story_separator_special_tag we are not aware of any non-performance under these arrangements that would result in our having to perform in accordance with the terms of the guarantees . 37 our adjusted debt to adjusted total capital ratio ( which includes 6.00 times the combined total annual minimum rent for operating leases and annual minimum lease payments for financing leases on a consolidated basis of $ 359.5 million and $ 342.7 million for the fiscal years ended may 26 , 2019 and may 27 , 2018 , respectively , as components of adjusted debt and adjusted total capital ) was 58 percent and 60 percent as of may 26 , 2019 and may 27 , 2018 , respectively . we include the lease-debt equivalent and contractual lease guarantees in our adjusted debt to adjusted total capital ratio reported to shareholders , as we believe its inclusion better represents the optimal capital structure that we target from period to period and because it is consistent with the calculation of the covenant under our revolving credit agreement . based on these ratios , we believe our financial condition is strong . the composition of our capital structure is shown in the following table : replace_table_token_14_th net cash flows provided by operating activities from continuing operations were $ 1.27 billion and $ 1.02 billion in fiscal 2019 and 2018 , respectively . net cash flows provided by operating activities include net earnings from continuing operations of $ 718.6 million and $ 603.8 million in fiscal 2019 and 2018 , respectively . net cash flows provided by operating activities from continuing operations increased in fiscal 2019 primarily due to higher net earnings from continuing operations . net cash flows used in investing activities from continuing operations were $ 462.6 million in fiscal 2019 compared to net cash flows used in investing activities from continuing operations of $ 451.1 million in fiscal 2018 . capital expenditures incurred principally for building new restaurants , remodeling existing restaurants , replacing equipment , and technology initiatives were $ 452.0 million in fiscal 2019 , compared to $ 396.0 million in fiscal 2018 . for fiscal 2018 , net cash used in the acquisition of 11 cheddar 's scratch kitchen restaurants from an existing franchisee was $ 40.4 million . net cash flows used in financing activities from continuing operations were $ 484.2 million in fiscal 2019 , compared to $ 636.6 million in fiscal 2018 . net cash flows used in financing activities in fiscal 2019 included dividend payments of $ 370.8 million and share repurchases of $ 207.5 million , partially offset by proceeds from the exercise of employee stock options and proceeds from financing lease obligations . net cash flows used in financing activities in fiscal 2018 reflected long-term debt payments of $ 408.2 million , including repurchase premiums and make-whole provisions , repayments of short-term debt of $ 960.0 million , dividend payments of $ 313.5 million and share repurchases of $ 234.8 million , partially offset by proceeds from the issuance of short-term debt of $ 960.0 million , proceeds from the issuance of $ 300.0 million of senior notes and proceeds from the exercise of employee stock options . our defined benefit and other postretirement benefit costs and liabilities are determined using various actuarial assumptions and methodologies prescribed under financial accounting standards board accounting standards codification topic 715 , compensation - retirement benefits and topic 712 , compensation - nonretirement postemployment benefits . we use certain assumptions including , but not limited to , the selection of a discount rate and expected long-term rate of return on plan assets . we set the discount rate assumption annually for each plan at its valuation date to reflect the yield of high-quality fixed-income debt 38 instruments , with lives that approximate the maturity of the plan benefits . at may 26 , 2019 , our discount rate was 2.66 percent and 3.95 percent , respectively , for our defined benefit and postretirement benefit plans . the expected long-term rate of return on plan assets is based upon several factors , including our historical assumptions compared with actual results , an analysis of current market conditions , asset allocations and the views of leading financial advisers and economists . our expected long-term rate of return on plan assets for our defined benefit plans was 4.25 percent for fiscal year 2019 and 5.75 percent for fiscal year 2018 . we expect to contribute approximately $ 0.4 million to our defined benefit pension plans and approximately $ 1.4 million to our postretirement benefit plan during fiscal 2020 . in april 2018 , our benefit plans committee approved the termination of our primary non-contributory defined benefit pension plan ( the retirement income plan for darden restaurants , inc. ) . the termination of the plan involves many steps , including filing information with the irs and the pension benefit guaranty corporation and obtaining proper approvals . we anticipate the termination process , which culminates in either the settlement or transfer of participant benefits , will be completed in fiscal 2020. the plan termination is expected to result in non-cash pre-tax pension settlement expense in fiscal 2020 of approximately $ 130.0 million . we have recognized net losses of $ 100.4 million ( net of tax ) and of $ 4.9 million ( net of tax ) as components of accumulated other comprehensive income ( loss ) for the defined benefit plans and postretirement benefit plan , respectively , as of may 26 , 2019 . these net losses represent changes in the amount of the projected benefit obligation and plan assets resulting from differences in the assumptions used and actual experience . we believe our defined benefit and postretirement benefit plan assumptions are appropriate based upon the factors discussed above . however , other assumptions could also be reasonably applied that could differ from the assumptions used . these changes in assumptions would not significantly impact our funding requirements . we
| liquidity and capital resources cash flows generated from operating activities are our principal source of liquidity , which we use to finance capital expenditures for new restaurants and to remodel and maintain existing restaurants , to pay dividends to our shareholders and to repurchase shares of our common stock . since substantially all of our sales are for cash and cash equivalents , and accounts 35 payable are generally paid in 5 to 60 days , we are able to carry current liabilities in excess of current assets . in addition to cash flows from operations , we use a combination of long-term and short-term borrowings to fund our capital needs . we currently manage our business and financial ratios to target an investment-grade bond rating , which has historically allowed flexible access to financing at reasonable costs . our publicly issued long-term debt currently carries the following ratings : moody 's investors service “ baa2 ” ; standard & poor 's “ bbb ” ; and fitch “ bbb ” . our commercial paper has ratings of : moody 's investors service “ p-2 ” ; standard & poor 's “ a-2 ” ; and fitch “ f-2 ” . these ratings are as of the date of the filing of this report and have been obtained with the understanding that moody 's investors service , standard & poor 's and fitch will continue to monitor our credit and make future adjustments to these ratings to the extent warranted . the ratings are not a recommendation to buy , sell or hold our securities , may be changed , superseded or withdrawn at any time and should be evaluated independently of any other rating . we maintain a $ 750.0 million revolving credit agreement ( revolving credit agreement ) with bank of america , n.a . ( boa ) , as administrative agent , and the lenders and other agents party thereto .
| 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. |
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 cash flows generated from operating activities are our principal source of liquidity , which we use to finance capital expenditures for new restaurants and to remodel and maintain existing restaurants , to pay dividends to our shareholders and to repurchase shares of our common stock . since substantially all of our sales are for cash and cash equivalents , and accounts 35 payable are generally paid in 5 to 60 days , we are able to carry current liabilities in excess of current assets . in addition to cash flows from operations , we use a combination of long-term and short-term borrowings to fund our capital needs . we currently manage our business and financial ratios to target an investment-grade bond rating , which has historically allowed flexible access to financing at reasonable costs . our publicly issued long-term debt currently carries the following ratings : moody 's investors service “ baa2 ” ; standard & poor 's “ bbb ” ; and fitch “ bbb ” . our commercial paper has ratings of : moody 's investors service “ p-2 ” ; standard & poor 's “ a-2 ” ; and fitch “ f-2 ” . these ratings are as of the date of the filing of this report and have been obtained with the understanding that moody 's investors service , standard & poor 's and fitch will continue to monitor our credit and make future adjustments to these ratings to the extent warranted . the ratings are not a recommendation to buy , sell or hold our securities , may be changed , superseded or withdrawn at any time and should be evaluated independently of any other rating . we maintain a $ 750.0 million revolving credit agreement ( revolving credit agreement ) with bank of america , n.a . ( boa ) , as administrative agent , and the lenders and other agents party thereto .
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Suspicious Activity Report : increasing same-restaurant sales can improve segment profit because these incremental sales provide better leverage of our fixed and semi-fixed restaurant-level costs . a restaurant brand can generate same-restaurant sales increases through increases in guest traffic , increases in the average guest check , or a combination of the two . the average guest check can be impacted by menu price changes and by the mix of menu items sold . for each restaurant brand , we gather daily sales data and regularly analyze the guest traffic counts and the mix of menu items sold to aid in developing menu pricing , product offerings and promotional strategies . we focus on balancing our pricing and product offerings with other initiatives to produce sustainable same-restaurant sales growth . we compute same-restaurant sales using restaurants open at least 16 months because this period is generally required for new restaurant sales levels to normalize . sales at newly opened restaurants generally do not make a significant contribution to profitability in their initial months of operation due to operating or integration inefficiencies . our sales and expenses can be impacted significantly by the number and timing of new restaurant openings and closings , and relocations and remodeling of existing restaurants . pre-opening expenses each period reflect the costs associated with opening new restaurants in current and future periods . 28 fiscal 2019 financial highlights our sales from continuing operations were $ 8.51 billion in fiscal 2019 compared to $ 8.08 billion in fiscal 2018 . the 5.3 percent increase in sales from continuing operations was primarily driven by revenue from the addition of 39 net new company-owned restaurants and a combined darden same-restaurant sales increase of 2.5 percent . net earnings from continuing operations for fiscal 2019 were $ 718.6 million ( $ 5.73 per diluted share ) compared with net earnings from continuing operations for fiscal 2018 of $ 603.8 million ( $ 4.79 per diluted share ) . net earnings from continuing operations for fiscal 2019 increased 19.0 percent and diluted net earnings per share from continuing operations increased 19.6 percent compared with fiscal 2018 . our net loss from discontinued operations was $ 5.2 million ( $ 0.04 per diluted share ) for fiscal 2019 , compared with a net loss from discontinued operations of $ 7.8 million ( $ 0.06 per diluted share ) for fiscal 2018 . when combined with results from continuing operations , our diluted net earnings per share were $ 5.69 and $ 4.73 for fiscal 2019 and 2018 , respectively . outlook we expect fiscal 2020 sales from continuing operations to increase between 5.3 percent and 6.3 percent , driven by the impact of the 53 rd week in fiscal 2020 , combined darden same-restaurant sales growth of 1.0 percent to 2.0 percent and approximately 50 new restaurants . in fiscal 2020 , we expect our annual effective tax rate to be between 10.0 percent and 11.0 percent and we expect capital expenditures incurred to build new restaurants , remodel and maintain existing restaurants and technology initiatives to be between $ 450.0 million and $ 500.0 million . in june 2019 , we announced a quarterly dividend of $ 0.88 per share , payable on august 1 , 2019 . based on the $ 0.88 quarterly dividend declaration , our expected annual dividend is $ 3.52 per share , which reflects an increase of 17.3 percent compared to our fiscal 2019 annual dividend . dividends are subject to the approval of our board of directors and , accordingly , the timing and amount of our dividends are subject to change . 29 results of operations for fiscal 2019 and 2018 to facilitate review of our results of operations , the following table sets forth our financial results for the periods indicated . all information is derived from the consolidated statements of earnings for the fiscal years ended may 26 , 2019 and may 27 , 2018 : fiscal year ended percent change ( in millions ) may 26 , 2019 may 27 , 2018 2019 vs 2018 sales $ 8,510.4 $ 8,080.1 5.3 % costs and expenses : food and beverage 2,412.5 2,303.1 4.8 % restaurant labor 2,771.1 2,614.5 6.0 % restaurant expenses 1,477.8 1,417.1 4.3 % marketing expenses 255.3 252.3 1.2 % general and administrative expenses 405.5 409.8 ( 1.0 ) % depreciation and amortization 336.7 313.1 7.5 % impairments and disposal of assets , net 19.0 3.4 nm total operating costs and expenses $ 7,677.9 $ 7,313.3 5.0 % operating income 832.5 766.8 8.6 % interest , net 50.2 161.1 ( 68.8 ) % earnings before income taxes 782.3 605.7 29.2 % income tax expense ( 1 ) 63.7 1.9 nm earnings from continuing operations $ 718.6 $ 603.8 19.0 % losses from discontinued operations , net of tax ( 5.2 ) ( 7.8 ) nm net earnings $ 713.4 $ 596.0 19.7 % ( 1 ) effective tax rate 8.1 % 0.3 % nm- not meaningful . percentage increases and decreases over 100 percent were not considered meaningful . the following table details the number of company-owned restaurants currently reported in continuing operations , compared with the number open at the end of fiscal 2018 : replace_table_token_9_th ( 1 ) includes six locations in canada . ( 2 ) includes the 11 franchised restaurants acquired on august 28 , 2017 . ( 3 ) includes one the capital burger restaurant . 30 sales the following table presents our company-owned restaurant sales , u.s. same-restaurant sales ( srs ) and average annual sales per restaurant by brand for the periods indicated : replace_table_token_10_th ( 1 ) same-restaurant sales is a year-over-year comparison of each period 's sales volumes for a 52-week year and is limited to restaurants open at least 16 months . ( 2 ) average annual sales are calculated as net sales divided by total restaurant operating weeks multiplied by 52 weeks . story_separator_special_tag we are not aware of any non-performance under these arrangements that would result in our having to perform in accordance with the terms of the guarantees . 37 our adjusted debt to adjusted total capital ratio ( which includes 6.00 times the combined total annual minimum rent for operating leases and annual minimum lease payments for financing leases on a consolidated basis of $ 359.5 million and $ 342.7 million for the fiscal years ended may 26 , 2019 and may 27 , 2018 , respectively , as components of adjusted debt and adjusted total capital ) was 58 percent and 60 percent as of may 26 , 2019 and may 27 , 2018 , respectively . we include the lease-debt equivalent and contractual lease guarantees in our adjusted debt to adjusted total capital ratio reported to shareholders , as we believe its inclusion better represents the optimal capital structure that we target from period to period and because it is consistent with the calculation of the covenant under our revolving credit agreement . based on these ratios , we believe our financial condition is strong . the composition of our capital structure is shown in the following table : replace_table_token_14_th net cash flows provided by operating activities from continuing operations were $ 1.27 billion and $ 1.02 billion in fiscal 2019 and 2018 , respectively . net cash flows provided by operating activities include net earnings from continuing operations of $ 718.6 million and $ 603.8 million in fiscal 2019 and 2018 , respectively . net cash flows provided by operating activities from continuing operations increased in fiscal 2019 primarily due to higher net earnings from continuing operations . net cash flows used in investing activities from continuing operations were $ 462.6 million in fiscal 2019 compared to net cash flows used in investing activities from continuing operations of $ 451.1 million in fiscal 2018 . capital expenditures incurred principally for building new restaurants , remodeling existing restaurants , replacing equipment , and technology initiatives were $ 452.0 million in fiscal 2019 , compared to $ 396.0 million in fiscal 2018 . for fiscal 2018 , net cash used in the acquisition of 11 cheddar 's scratch kitchen restaurants from an existing franchisee was $ 40.4 million . net cash flows used in financing activities from continuing operations were $ 484.2 million in fiscal 2019 , compared to $ 636.6 million in fiscal 2018 . net cash flows used in financing activities in fiscal 2019 included dividend payments of $ 370.8 million and share repurchases of $ 207.5 million , partially offset by proceeds from the exercise of employee stock options and proceeds from financing lease obligations . net cash flows used in financing activities in fiscal 2018 reflected long-term debt payments of $ 408.2 million , including repurchase premiums and make-whole provisions , repayments of short-term debt of $ 960.0 million , dividend payments of $ 313.5 million and share repurchases of $ 234.8 million , partially offset by proceeds from the issuance of short-term debt of $ 960.0 million , proceeds from the issuance of $ 300.0 million of senior notes and proceeds from the exercise of employee stock options . our defined benefit and other postretirement benefit costs and liabilities are determined using various actuarial assumptions and methodologies prescribed under financial accounting standards board accounting standards codification topic 715 , compensation - retirement benefits and topic 712 , compensation - nonretirement postemployment benefits . we use certain assumptions including , but not limited to , the selection of a discount rate and expected long-term rate of return on plan assets . we set the discount rate assumption annually for each plan at its valuation date to reflect the yield of high-quality fixed-income debt 38 instruments , with lives that approximate the maturity of the plan benefits . at may 26 , 2019 , our discount rate was 2.66 percent and 3.95 percent , respectively , for our defined benefit and postretirement benefit plans . the expected long-term rate of return on plan assets is based upon several factors , including our historical assumptions compared with actual results , an analysis of current market conditions , asset allocations and the views of leading financial advisers and economists . our expected long-term rate of return on plan assets for our defined benefit plans was 4.25 percent for fiscal year 2019 and 5.75 percent for fiscal year 2018 . we expect to contribute approximately $ 0.4 million to our defined benefit pension plans and approximately $ 1.4 million to our postretirement benefit plan during fiscal 2020 . in april 2018 , our benefit plans committee approved the termination of our primary non-contributory defined benefit pension plan ( the retirement income plan for darden restaurants , inc. ) . the termination of the plan involves many steps , including filing information with the irs and the pension benefit guaranty corporation and obtaining proper approvals . we anticipate the termination process , which culminates in either the settlement or transfer of participant benefits , will be completed in fiscal 2020. the plan termination is expected to result in non-cash pre-tax pension settlement expense in fiscal 2020 of approximately $ 130.0 million . we have recognized net losses of $ 100.4 million ( net of tax ) and of $ 4.9 million ( net of tax ) as components of accumulated other comprehensive income ( loss ) for the defined benefit plans and postretirement benefit plan , respectively , as of may 26 , 2019 . these net losses represent changes in the amount of the projected benefit obligation and plan assets resulting from differences in the assumptions used and actual experience . we believe our defined benefit and postretirement benefit plan assumptions are appropriate based upon the factors discussed above . however , other assumptions could also be reasonably applied that could differ from the assumptions used . these changes in assumptions would not significantly impact our funding requirements . we
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1,067 | total debt at december 31 , 2017 and 2016 consisted of $ 1.50 billion of senior notes . during the second quarter 2017 , we repaid our 5.875 % $ 750 million notes due 2022 and issued 3.90 % $ 750 million notes due 2027 . our 4.375 % $ 750 million notes are due 2024 . cash on hand at december 31 , 2017 was $ 400.5 million . for the year ended december 31 , 2017 , we had net income of $ 494.3 million ( $ 5.19 per diluted share ) , as compared to a net loss of $ 408.8 million ( $ 4.38 per diluted share ) in 2016 . production revenue in 2017 was positively impacted by increased realized commodity prices and production volumes . lower commodity prices negatively impacted 2016 , including resulting in $ 757.7 million of impairments of our oil and gas properties in that year . year-over-year changes are discussed further in the results of operations section that follows . proved reserves our proved reserves by region at december 31 , 2017 and 2016 were as follows : replace_table_token_17_th replace_table_token_18_th 35 year-end 2017 proved reserves increased approximately 16 % to 3.35 tcfe , compared to 2.89 tcfe at year-end 2016 . proved gas reserves were 1.61 tcf , proved oil reserves were 0.82 tcfe , and proved ngl reserves were 0.92 tcfe . reserves in our mid-continent region accounted for 52 % of total proved reserves with nearly all of the remainder in the permian basin . during 2017 , we added 940.7 bcfe of new reserves through extensions and discoveries . net negative revisions totaled 59.7 bcfe , which consisted primarily of a decrease of 248.8 bcfe for the removal of pud reserves whose development will likely be delayed beyond five years of initial disclosure , offset by an increase of 187.2 bcfe related to improved commodity prices . see supplemental information on oil and gas producing activities ( unaudited ) in item 8 for a more detailed discussion regarding year-over-year changes in our proved reserves . the process of estimating quantities of oil , gas , and ngl reserves is complex . significant decisions are required in the evaluation of all available geological , geophysical , engineering , and economic data . although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible , subjective decisions and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures . see proved reserves estimation procedures in items 1 and 2 for a discussion of our reserve estimation process and item 1a risk factors , which includes a discussion of factors that affect our proved reserves estimates . results of operations 2017 compared to 2016 revenue almost all our revenue is derived from sales of our oil , natural gas , and ngl production . increases or decreases in our revenue , profitability , and future production growth are highly dependent on the commodity prices we receive . prices are market driven and we expect that future prices will continue to fluctuate due to supply and demand factors , seasonality , geopolitical , and economic factors . see item 7a quantitative and qualitative disclosures about market risk for more information regarding the sensitivity of our revenues to price fluctuations . realized prices and production volumes were higher in 2017 as compared to 2016 , which caused our revenue to increase by $ 652.8 million , or 53 % , from the prior year . the following table shows our production revenue for the years indicated as well as the change in revenue due to changes in prices and volumes . replace_table_token_19_th the table below presents our production volumes by commodity , our average realized commodity prices , and certain major u.s. index prices . the sale of our permian basin oil production is typically tied to the wti midland benchmark price and the sale of our mid-continent oil production is typically tied to the wti cushing benchmark price . during 2017 and 2016 , 78 % and 80 % , respectively , of our oil production was in the permian basin and 22 % and 20 % , respectively , was in the mid-continent region . our realized prices do not include settlements of commodity derivative contracts . 36 replace_table_token_20_th our 2017 daily production volumes were 1,142.1 mmcfe , a 19 % increase from 2016 . this increase is the result of increased drilling and completion activity during 2017 as compared to 2016. see production volumes , prices , and costs and exploration and development overview in items 1 and 2 of this report for production information by region and a discussion of our drilling activities . other revenues we transport , process , and market some third-party gas that is associated with our equity gas . we market and sell gas for other working interest owners under short term agreements and may earn a fee for such services . the table below reflects income from third-party gas gathering and processing and our net marketing margin for marketing third-party gas . replace_table_token_21_th fluctuations in revenues from gas gathering and gas marketing activities are a function of increases and decreases in volumes , commodity prices , and gathering rate charges . the increases from 2016 are primarily due to an increase in prices . 37 operating costs and expenses costs associated with producing oil and gas are substantial . among other factors , some of these costs vary with commodity prices , some trend with the volume of production , others are a function of the number of wells we own , and some depend on the prices charged by service companies . total operating costs and expenses of $ 1.17 billion in 2017 were 36 % lower than the $ 1.83 billion incurred in 2016 . story_separator_special_tag we remeasured the deferred tax assets and liabilities as of december 31 , 2017 to reflect the reduction in the u.s. income tax rate from 35 % to 21 % for years after 2017 and , as a result of this remeasurement , we recorded an income tax benefit of $ 61.1 million and a corresponding $ 61.1 million decrease in the net deferred tax liabilities as of december 31 , 2017. we believe the accounting for the effects of h.r.1 recognized in the december 31 , 2017 financial statements is materially complete . however , evolving analyses and interpretations of the law may cause a change to the amounts presented . any such changes that may arise will be recognized in the period determined , but no later than december 31 , 2018. it is not expected any such change will be material to the financial statements . as a result of h.r.1 , we expect our effective tax rate in future periods will be lower than in periods prior to enactment . in addition , the limitations on utilization of net operating losses and deductibility of interest and executive compensation may result in the payment of cash taxes earlier than expected . our combined federal and state effective tax rates differ from the statutory rate of 35 % primarily due to state income taxes , non-deductible expenses , revisions , and the impact of changes in tax law . see note 9 to the consolidated financial statements for further information regarding our income taxes . results of operations 2016 compared to 2015 summary for the year ended december 31 , 2016 , we had a net loss of $ 408.8 million ( $ 4.38 per diluted share ) , down from a net loss of $ 2.58 billion ( $ 27.75 per diluted share ) in 2015 . production revenues in 2016 and 2015 were adversely affected by low realized commodity prices , which also brought about impairments of our oil and gas properties and net losses for each year . although production revenue in 2016 was lower than in 2015 , the decrease was more than offset by lower impairment , dd & a , and other operating costs in 2016 . year-over-year changes are discussed further as follows . also refer to the “ 2017 compared to 2016 ” section above for general information regarding various statement of operations line items . revenue our 2016 production revenue was 14 % lower than that of 2015 . lower realized prices and production volumes for oil and gas were only partially offset by higher realized prices and production volumes for ngls . the following table shows our production revenue for the years indicated as well as the change in revenue due to changes in prices and volumes . replace_table_token_30_th the table below presents our production volumes by commodity , our average realized commodity prices , and certain major u.s. index prices . the sale of our permian basin oil production is typically tied to the wti midland benchmark price and the sale of our mid-continent oil production is typically tied to the wti cushing benchmark price . during 2016 and 2015 , 80 % and 84 % , respectively , of our oil production was in the permian basin and 20 % and 15 % , respectively , was in the mid-continent region . our realized prices do not include settlements of commodity derivative contracts . 43 replace_table_token_31_th other revenues we transport , process , and market some third-party gas that is associated with our equity gas . we market and sell gas for other working interest owners under short term agreements and may earn a fee for such services . the table below reflects income from third-party gas gathering and processing and our net marketing margin for marketing third-party gas . replace_table_token_32_th fluctuations in revenues from gas gathering and gas marketing activities are a function of increases and decreases in volumes , commodity prices , and gathering rate charges . operating costs and expenses total operating costs and expenses of $ 1.83 billion in 2016 were 67 % lower than the $ 5.46 billion incurred in 2015 . most of the decrease resulted from lower ceiling test impairments of our oil and gas properties and lower dd & a expense . the following table shows our operating costs and expenses for the years indicated and a discussion of year-over-year differences follows . 44 replace_table_token_33_th ceiling test impairment during the first three quarters of 2016 , we recognized ceiling test impairments totaling $ 757.7 million ( $ 481.4 million net of tax ) . we recognized ceiling test impairments in 2015 totaling $ 4.03 billion ( $ 2.56 billion net of tax ) . the impairments resulted primarily from the impact of decreases in the trailing twelve-month average prices for oil , gas , and ngls utilized in determining the estimated future net revenues from proved reserves . at december 31 , 2016 , the calculated value of the ceiling limitation exceeded the carrying value of our oil and gas properties subject to the test , and no impairment was necessary . however , a decline of 7 % or more in the value of the ceiling limitation would have resulted in an impairment . depreciation , depletion , and amortization depletion expense in 2016 decreased compared to 2015 due to the quarterly impairments of our oil and gas properties from the first quarter of 2015 through the third quarter of 2016. depletion expense generally decreases following ceiling test impairments due to the decrease in the net proved properties balance . dd & a consisted of the following for the years indicated : replace_table_token_34_th production production costs consist of lease operating expense and workover expense as follows : replace_table_token_35_th lease operating expense in 2016 declined 24 % compared to 2015 . in 2016 , we incurred lower saltwater disposal costs due to implementation of operational efficiencies as well
| bank debt below for further information regarding our credit facility . we have made , and will continue to make , expenditures to comply with environmental and safety regulations and requirements . these costs are considered a normal recurring cost of our ongoing operations . while we expect current pending legislation or regulations to increase the cost of business , we do not anticipate that we will be required to expend amounts that will have a material adverse effect on our financial position or operations , nor are we aware of any pending regulatory changes that would have a material impact , based on current laws and regulations . however , compliance with new legislation or regulations could increase our costs or adversely affect demand for oil or gas and result in a material adverse effect on our financial position or operations . see item 1a risk factors for a description of risks related to current and potential future environmental and safety regulations and requirements that could adversely affect our operations and financial condition . 50 long-term debt long-term debt at december 31 , 2017 and 2016 consisted of the following : replace_table_token_43_th ( 1 ) at december 31 , 2017 , the unamortized debt issuance costs and discount related to the 3.90 % notes were $ 5.9 million and $ 1.8 million , respectively . the 4.375 % notes were issued at par . bank debt in october 2015 , we entered into a new senior unsecured revolving credit facility ( “ credit facility ” ) which matures october 16 , 2020. the credit facility has aggregate commitments of $ 1.0 billion , with an option to increase aggregate commitments to $ 1.25 billion at any time . there is no borrowing base subject to the discretion of the lenders based on the value of our proved reserves under the credit facility . as of december 31 , 2017 , we had no bank borrowings outstanding under the credit facility , but did have letters of credit of $ 2.5 million outstanding , leaving an unused borrowing availability of $ 997.5 million .
| 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. |
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.
```bank debt below for further information regarding our credit facility . we have made , and will continue to make , expenditures to comply with environmental and safety regulations and requirements . these costs are considered a normal recurring cost of our ongoing operations . while we expect current pending legislation or regulations to increase the cost of business , we do not anticipate that we will be required to expend amounts that will have a material adverse effect on our financial position or operations , nor are we aware of any pending regulatory changes that would have a material impact , based on current laws and regulations . however , compliance with new legislation or regulations could increase our costs or adversely affect demand for oil or gas and result in a material adverse effect on our financial position or operations . see item 1a risk factors for a description of risks related to current and potential future environmental and safety regulations and requirements that could adversely affect our operations and financial condition . 50 long-term debt long-term debt at december 31 , 2017 and 2016 consisted of the following : replace_table_token_43_th ( 1 ) at december 31 , 2017 , the unamortized debt issuance costs and discount related to the 3.90 % notes were $ 5.9 million and $ 1.8 million , respectively . the 4.375 % notes were issued at par . bank debt in october 2015 , we entered into a new senior unsecured revolving credit facility ( “ credit facility ” ) which matures october 16 , 2020. the credit facility has aggregate commitments of $ 1.0 billion , with an option to increase aggregate commitments to $ 1.25 billion at any time . there is no borrowing base subject to the discretion of the lenders based on the value of our proved reserves under the credit facility . as of december 31 , 2017 , we had no bank borrowings outstanding under the credit facility , but did have letters of credit of $ 2.5 million outstanding , leaving an unused borrowing availability of $ 997.5 million .
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Suspicious Activity Report : total debt at december 31 , 2017 and 2016 consisted of $ 1.50 billion of senior notes . during the second quarter 2017 , we repaid our 5.875 % $ 750 million notes due 2022 and issued 3.90 % $ 750 million notes due 2027 . our 4.375 % $ 750 million notes are due 2024 . cash on hand at december 31 , 2017 was $ 400.5 million . for the year ended december 31 , 2017 , we had net income of $ 494.3 million ( $ 5.19 per diluted share ) , as compared to a net loss of $ 408.8 million ( $ 4.38 per diluted share ) in 2016 . production revenue in 2017 was positively impacted by increased realized commodity prices and production volumes . lower commodity prices negatively impacted 2016 , including resulting in $ 757.7 million of impairments of our oil and gas properties in that year . year-over-year changes are discussed further in the results of operations section that follows . proved reserves our proved reserves by region at december 31 , 2017 and 2016 were as follows : replace_table_token_17_th replace_table_token_18_th 35 year-end 2017 proved reserves increased approximately 16 % to 3.35 tcfe , compared to 2.89 tcfe at year-end 2016 . proved gas reserves were 1.61 tcf , proved oil reserves were 0.82 tcfe , and proved ngl reserves were 0.92 tcfe . reserves in our mid-continent region accounted for 52 % of total proved reserves with nearly all of the remainder in the permian basin . during 2017 , we added 940.7 bcfe of new reserves through extensions and discoveries . net negative revisions totaled 59.7 bcfe , which consisted primarily of a decrease of 248.8 bcfe for the removal of pud reserves whose development will likely be delayed beyond five years of initial disclosure , offset by an increase of 187.2 bcfe related to improved commodity prices . see supplemental information on oil and gas producing activities ( unaudited ) in item 8 for a more detailed discussion regarding year-over-year changes in our proved reserves . the process of estimating quantities of oil , gas , and ngl reserves is complex . significant decisions are required in the evaluation of all available geological , geophysical , engineering , and economic data . although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible , subjective decisions and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures . see proved reserves estimation procedures in items 1 and 2 for a discussion of our reserve estimation process and item 1a risk factors , which includes a discussion of factors that affect our proved reserves estimates . results of operations 2017 compared to 2016 revenue almost all our revenue is derived from sales of our oil , natural gas , and ngl production . increases or decreases in our revenue , profitability , and future production growth are highly dependent on the commodity prices we receive . prices are market driven and we expect that future prices will continue to fluctuate due to supply and demand factors , seasonality , geopolitical , and economic factors . see item 7a quantitative and qualitative disclosures about market risk for more information regarding the sensitivity of our revenues to price fluctuations . realized prices and production volumes were higher in 2017 as compared to 2016 , which caused our revenue to increase by $ 652.8 million , or 53 % , from the prior year . the following table shows our production revenue for the years indicated as well as the change in revenue due to changes in prices and volumes . replace_table_token_19_th the table below presents our production volumes by commodity , our average realized commodity prices , and certain major u.s. index prices . the sale of our permian basin oil production is typically tied to the wti midland benchmark price and the sale of our mid-continent oil production is typically tied to the wti cushing benchmark price . during 2017 and 2016 , 78 % and 80 % , respectively , of our oil production was in the permian basin and 22 % and 20 % , respectively , was in the mid-continent region . our realized prices do not include settlements of commodity derivative contracts . 36 replace_table_token_20_th our 2017 daily production volumes were 1,142.1 mmcfe , a 19 % increase from 2016 . this increase is the result of increased drilling and completion activity during 2017 as compared to 2016. see production volumes , prices , and costs and exploration and development overview in items 1 and 2 of this report for production information by region and a discussion of our drilling activities . other revenues we transport , process , and market some third-party gas that is associated with our equity gas . we market and sell gas for other working interest owners under short term agreements and may earn a fee for such services . the table below reflects income from third-party gas gathering and processing and our net marketing margin for marketing third-party gas . replace_table_token_21_th fluctuations in revenues from gas gathering and gas marketing activities are a function of increases and decreases in volumes , commodity prices , and gathering rate charges . the increases from 2016 are primarily due to an increase in prices . 37 operating costs and expenses costs associated with producing oil and gas are substantial . among other factors , some of these costs vary with commodity prices , some trend with the volume of production , others are a function of the number of wells we own , and some depend on the prices charged by service companies . total operating costs and expenses of $ 1.17 billion in 2017 were 36 % lower than the $ 1.83 billion incurred in 2016 . story_separator_special_tag we remeasured the deferred tax assets and liabilities as of december 31 , 2017 to reflect the reduction in the u.s. income tax rate from 35 % to 21 % for years after 2017 and , as a result of this remeasurement , we recorded an income tax benefit of $ 61.1 million and a corresponding $ 61.1 million decrease in the net deferred tax liabilities as of december 31 , 2017. we believe the accounting for the effects of h.r.1 recognized in the december 31 , 2017 financial statements is materially complete . however , evolving analyses and interpretations of the law may cause a change to the amounts presented . any such changes that may arise will be recognized in the period determined , but no later than december 31 , 2018. it is not expected any such change will be material to the financial statements . as a result of h.r.1 , we expect our effective tax rate in future periods will be lower than in periods prior to enactment . in addition , the limitations on utilization of net operating losses and deductibility of interest and executive compensation may result in the payment of cash taxes earlier than expected . our combined federal and state effective tax rates differ from the statutory rate of 35 % primarily due to state income taxes , non-deductible expenses , revisions , and the impact of changes in tax law . see note 9 to the consolidated financial statements for further information regarding our income taxes . results of operations 2016 compared to 2015 summary for the year ended december 31 , 2016 , we had a net loss of $ 408.8 million ( $ 4.38 per diluted share ) , down from a net loss of $ 2.58 billion ( $ 27.75 per diluted share ) in 2015 . production revenues in 2016 and 2015 were adversely affected by low realized commodity prices , which also brought about impairments of our oil and gas properties and net losses for each year . although production revenue in 2016 was lower than in 2015 , the decrease was more than offset by lower impairment , dd & a , and other operating costs in 2016 . year-over-year changes are discussed further as follows . also refer to the “ 2017 compared to 2016 ” section above for general information regarding various statement of operations line items . revenue our 2016 production revenue was 14 % lower than that of 2015 . lower realized prices and production volumes for oil and gas were only partially offset by higher realized prices and production volumes for ngls . the following table shows our production revenue for the years indicated as well as the change in revenue due to changes in prices and volumes . replace_table_token_30_th the table below presents our production volumes by commodity , our average realized commodity prices , and certain major u.s. index prices . the sale of our permian basin oil production is typically tied to the wti midland benchmark price and the sale of our mid-continent oil production is typically tied to the wti cushing benchmark price . during 2016 and 2015 , 80 % and 84 % , respectively , of our oil production was in the permian basin and 20 % and 15 % , respectively , was in the mid-continent region . our realized prices do not include settlements of commodity derivative contracts . 43 replace_table_token_31_th other revenues we transport , process , and market some third-party gas that is associated with our equity gas . we market and sell gas for other working interest owners under short term agreements and may earn a fee for such services . the table below reflects income from third-party gas gathering and processing and our net marketing margin for marketing third-party gas . replace_table_token_32_th fluctuations in revenues from gas gathering and gas marketing activities are a function of increases and decreases in volumes , commodity prices , and gathering rate charges . operating costs and expenses total operating costs and expenses of $ 1.83 billion in 2016 were 67 % lower than the $ 5.46 billion incurred in 2015 . most of the decrease resulted from lower ceiling test impairments of our oil and gas properties and lower dd & a expense . the following table shows our operating costs and expenses for the years indicated and a discussion of year-over-year differences follows . 44 replace_table_token_33_th ceiling test impairment during the first three quarters of 2016 , we recognized ceiling test impairments totaling $ 757.7 million ( $ 481.4 million net of tax ) . we recognized ceiling test impairments in 2015 totaling $ 4.03 billion ( $ 2.56 billion net of tax ) . the impairments resulted primarily from the impact of decreases in the trailing twelve-month average prices for oil , gas , and ngls utilized in determining the estimated future net revenues from proved reserves . at december 31 , 2016 , the calculated value of the ceiling limitation exceeded the carrying value of our oil and gas properties subject to the test , and no impairment was necessary . however , a decline of 7 % or more in the value of the ceiling limitation would have resulted in an impairment . depreciation , depletion , and amortization depletion expense in 2016 decreased compared to 2015 due to the quarterly impairments of our oil and gas properties from the first quarter of 2015 through the third quarter of 2016. depletion expense generally decreases following ceiling test impairments due to the decrease in the net proved properties balance . dd & a consisted of the following for the years indicated : replace_table_token_34_th production production costs consist of lease operating expense and workover expense as follows : replace_table_token_35_th lease operating expense in 2016 declined 24 % compared to 2015 . in 2016 , we incurred lower saltwater disposal costs due to implementation of operational efficiencies as well
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1,068 | as a result , we do not include in our financial statements the results of operations of these dealerships prior to the date we acquired them , which may impact the comparability of the financial information presented . also , as a result of the effects of our acquisitions , dispositions , and other potential factors in the future , our historical financial information is not necessarily indicative of our results of operations and financial position in the future or the results of operations and financial position that would have resulted had such transactions occurred at the beginning of the periods presented . our operating results reflect the combined performance of each of our interrelated business activities , which include the sale of new vehicles , used vehicles , finance and insurance products , and parts , as well as service and collision repair services . historically , each of these activities has been directly or indirectly impacted by a variety of supply/demand factors , including vehicle inventories , consumer confidence , consumer discretionary spending , availability and affordability of consumer credit , manufacturer incentives , weather patterns , fuel prices , and interest rates . for example , during periods of sustained economic downturn or significant supply/demand imbalances , new vehicle sales may be negatively impacted as consumers tend to shift their purchases to used vehicles . some consumers may even delay their purchasing decisions altogether , electing instead to repair their existing vehicles . in such cases , however , we believe the new vehicle sales impact on our overall business is mitigated by our ability to offer other products and services , such as used vehicles and parts , service and collision repair services , as well as our ability to reduce our costs in response to lower sales . our results of operations depend substantially on general economic conditions and spending habits in those regions of the u.s. where we maintain most of our operations . with the recent decline in commodity prices , which have led to significant declines in the price of gasoline , we may experience increased sales in regions not directly affected by the oil and gas economy . 36 in the u.s. , we generally experience higher volumes of vehicle sales and service in the second and third calendar quarters of each year . this seasonality is generally attributable to consumer buying trends and the timing of manufacturer new vehicle model introductions . in addition , in some regions of the u.s. , vehicle purchases decline during the winter months due to inclement weather . as a result , our u.s. revenues and operating income are typically lower in the first and fourth quarters and higher in the second and third quarters . for the u.k. , the first and third calendar quarters tend to be stronger , driven by plate change months of march and september . for brazil , we expect higher volumes in the third and fourth calendar quarters ; however , the first quarter is the weakest , driven by heavy vacations and activities associated with carnival . other factors unrelated to seasonality , such as changes in economic condition and manufacturer incentive programs , may exaggerate seasonal or cause counter-seasonal fluctuations in our revenues and operating income . according to u.s. industry experts , the annual new light vehicle unit sales for 2014 increased 918 thousand units , or 5.9 % , to 16.5 million units , compared to 15.6 million units in 2013 . the u.k. economy represents the sixth largest economy in the world . the u.k. remained the second largest market in the eu , surpassing the region 's 5.7 % average growth . light vehicle registrations in the u.k. increased 9.3 % to 2.5 million during 2014 as compared to the same period a year ago . brazil represents the seventh largest economy in the world and the fourth largest car market . recently , the brazilian economy has been one of the fastest growing economies in the world . however , the brazilian economy is facing many challenges and is not demonstrating significant growth at the moment . light vehicle industry unit sales in brazil declined 7.6 % during 2014 to 3.3 million as compared to the same period a year ago . and in 2014 , the brazilian economy experienced a rise in inflation and interest rates and a decrease in the value of the brazilian real compared to the u.s. dollar . on a consolidated basis for the year ended december 31 , 2014 , our total revenues increased 11.4 % from 2013 to $ 9.9 billion and gross profit improved 12.0 % to $ 1.4 billion . for the years ended december 31 , 2013 and 2012 , total revenues were $ 8.9 billion and $ 7.5 billion , respectively . for the years ended december 31 , 2013 and 2012 , gross profits were $ 1,292.5 million and $ 1,117.3 million , respectively . we generated net income of $ 93.0 million , or $ 3.60 per diluted common share for the year ended december 31 , 2014 , compared to $ 114.0 million , or $ 4.32 per diluted share for the year ended december 31 , 2013 and $ 100.2 million , or $ 4.19 per diluted share for the year ended december 31 , 2012. in addition to the matters described above , the following factors impacted our financial condition and results of operations in 2014 , 2013 , and 2012 : year ended december 31 , 2014 : extinguishment of long-term debt : during the year , our 2014 results were negatively impacted by the extinguishment of our 2.25 % notes and 3.00 % notes . the aggregate loss for 2014 was $ 46.4 million . story_separator_special_tag recent accounting pronouncements refer to note 2 of our consolidated financial statements , “ summary of significant accounting polices and estimates , ” for a discussion of those most recent pronouncements that impact us . critical accounting policies and accounting estimates the preparation of our financial statements in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) principles requires management to make certain estimates and assumptions . these estimates and assumptions 41 affect the reported amounts of assets and liabilities , the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period . we analyze our estimates based on our historical experience and various other assumptions that we believe to be reasonable under the circumstances . however , actual results could differ from such estimates . the following is a discussion of our critical accounting estimates and policies . we have identified below what we believe to be the most pervasive accounting policies and estimates that are of particular importance to the portrayal of our financial position , results of operations and cash flows . see note 2 to our consolidated financial statements , “ summary of significant accounting policies and estimates , ” for further discussion of all our significant accounting policies and estimates . revenue recognition . revenues from vehicle sales , parts sales , and vehicle service are recognized upon completion of the sale or service and delivery to the customer . conditions to completing a sale include having an agreement with the customer , including pricing , and the sales price must be reasonably expected to be collected . we include revenues from our collision center operations in parts and services sales . we record the profit we receive for arranging vehicle fleet transactions net in other finance and insurance revenues . since all sales of new vehicles must occur through franchised new vehicle dealerships , the dealerships effectively act as agents for the automobile manufacturers in completing sales of vehicles to fleet customers . as these customers typically order the vehicles , we have no significant general inventory risk . additionally , fleet customers generally receive special purchase incentives from the automobile manufacturers and we receive only a nominal fee for facilitating the transactions . taxes collected from customers and remitted to governmental agencies are not included in total revenues . we arrange financing for customers through various institutions and receive financing fees based on the difference between the loan rates charged to customers and wholesale financing rates set by the financing institution . in addition , we receive fees from the sale of insurance and vehicle service contracts to customers . further , through agreements with certain vehicle service contract administrators , we earn volume incentive rebates and interest income on reserves , as well as participate in the underwriting profits of the products . we may be charged back for unearned financing , insurance contract or vehicle service contract fees in the event of early termination of the contracts by customers . revenues from these fees are recorded at the time of the sale of the vehicles and a reserve for future amounts which might be charged back is established based on our historical chargeback results and the termination provisions of the applicable contracts . while chargeback results vary depending on the type of contract sold , a 10 % increase in the historical chargeback results used in determining estimates of future amounts which might be charged back would have increased the reserve at december 31 , 2014 , by $ 2.9 million . inventories . new , used and demonstrator vehicle inventories are carried at the lower of specific cost or market and are removed from inventory using the specific identification method in the consolidated balance sheets . parts and accessories inventories are valued at lower of cost ( determined on a first-in , first-out basis ) or market in the consolidated balance sheets . vehicle inventory cost consists of the amount paid to acquire the inventory , plus the cost of reconditioning , cost of equipment added and transportation cost . additionally , we receive interest assistance from some of our automobile manufacturers . this assistance is accounted for as a vehicle purchase price discount and is reflected as a reduction to the inventory cost on our consolidated balance sheets and as a reduction to cost of sales in our statements of operations as the vehicles are sold . at december 31 , 2014 and 2013 , inventory cost had been reduced by $ 8.8 million and $ 9.0 million , respectively , for interest assistance received from manufacturers . new vehicle cost of sales was reduced by $ 45.1 million , $ 38.5 million , and $ 33.9 million for interest assistance received related to vehicles sold for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . the assistance over the past three years has ranged from approximately 87.3 % of our quarterly floorplan interest expense in the first quarter of 2013 to 117.7 % for the fourth quarter of 2014. as the market value of inventory typically declines over time , we establish new and used vehicle reserves based on our historical loss experience and considerations of current market trends . these reserves are charged to cost of sales and reduce the carrying value of inventory on hand . used vehicles are complex to value as there is no standardized source for determining exact values and each vehicle and each market in which we operate is unique . as a result , the value of each used vehicle taken at trade-in , or purchased at auction , is determined based on industry data , primarily accessed via our used vehicle management software and the industry expertise of the responsible used vehicle manager . valuation risk is partially mitigated , by the speed at which
| cash on hand . as of december 31 , 2014 , our total cash on hand was $ 41.0 million . the balance of cash on hand excludes $ 62.1 million of immediately available funds used to pay down our floorplan lines as of december 31 , 2014. we use the pay down of our floorplan lines as a channel for the short-term investment of excess cash . cash flows . with respect to all new vehicle floorplan borrowings in the normal course of business , the manufacturers of the vehicles draft our credit facilities directly with no cash flow to or from us . with respect to borrowings for used vehicle financing , we finance up to 80 % of the value of our used vehicle inventory in the u.s. , and the funds flow directly to us from the lender . all borrowings from , and repayments to , lenders affiliated with our vehicle manufacturers ( excluding the cash flows from or to manufacturer-affiliated lenders participating in our syndicated lending group ) are presented within cash flows from operating activities on the consolidated statements of cash flows in conformity with u.s. gaap . all borrowings from , and repayments to , the revolving credit facility ( defined below ) ( including the cash flows from or to manufacturer-affiliated lenders participating in the facility ) and other credit facilities in brazil unaffiliated with our manufacturer partners , are presented within cash flows from financing activities in conformity with u.s. gaap . however , the incurrence of all floorplan notes payable represents an activity necessary to acquire inventory for resale , resulting in a trade payable . our decision to utilize our revolving credit facility does not substantially alter the process by which our vehicle inventory is financed , nor does it significantly impact the economics of our vehicle procurement activities . therefore , we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash on hand . as of december 31 , 2014 , our total cash on hand was $ 41.0 million . the balance of cash on hand excludes $ 62.1 million of immediately available funds used to pay down our floorplan lines as of december 31 , 2014. we use the pay down of our floorplan lines as a channel for the short-term investment of excess cash . cash flows . with respect to all new vehicle floorplan borrowings in the normal course of business , the manufacturers of the vehicles draft our credit facilities directly with no cash flow to or from us . with respect to borrowings for used vehicle financing , we finance up to 80 % of the value of our used vehicle inventory in the u.s. , and the funds flow directly to us from the lender . all borrowings from , and repayments to , lenders affiliated with our vehicle manufacturers ( excluding the cash flows from or to manufacturer-affiliated lenders participating in our syndicated lending group ) are presented within cash flows from operating activities on the consolidated statements of cash flows in conformity with u.s. gaap . all borrowings from , and repayments to , the revolving credit facility ( defined below ) ( including the cash flows from or to manufacturer-affiliated lenders participating in the facility ) and other credit facilities in brazil unaffiliated with our manufacturer partners , are presented within cash flows from financing activities in conformity with u.s. gaap . however , the incurrence of all floorplan notes payable represents an activity necessary to acquire inventory for resale , resulting in a trade payable . our decision to utilize our revolving credit facility does not substantially alter the process by which our vehicle inventory is financed , nor does it significantly impact the economics of our vehicle procurement activities . therefore , we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity .
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Suspicious Activity Report : as a result , we do not include in our financial statements the results of operations of these dealerships prior to the date we acquired them , which may impact the comparability of the financial information presented . also , as a result of the effects of our acquisitions , dispositions , and other potential factors in the future , our historical financial information is not necessarily indicative of our results of operations and financial position in the future or the results of operations and financial position that would have resulted had such transactions occurred at the beginning of the periods presented . our operating results reflect the combined performance of each of our interrelated business activities , which include the sale of new vehicles , used vehicles , finance and insurance products , and parts , as well as service and collision repair services . historically , each of these activities has been directly or indirectly impacted by a variety of supply/demand factors , including vehicle inventories , consumer confidence , consumer discretionary spending , availability and affordability of consumer credit , manufacturer incentives , weather patterns , fuel prices , and interest rates . for example , during periods of sustained economic downturn or significant supply/demand imbalances , new vehicle sales may be negatively impacted as consumers tend to shift their purchases to used vehicles . some consumers may even delay their purchasing decisions altogether , electing instead to repair their existing vehicles . in such cases , however , we believe the new vehicle sales impact on our overall business is mitigated by our ability to offer other products and services , such as used vehicles and parts , service and collision repair services , as well as our ability to reduce our costs in response to lower sales . our results of operations depend substantially on general economic conditions and spending habits in those regions of the u.s. where we maintain most of our operations . with the recent decline in commodity prices , which have led to significant declines in the price of gasoline , we may experience increased sales in regions not directly affected by the oil and gas economy . 36 in the u.s. , we generally experience higher volumes of vehicle sales and service in the second and third calendar quarters of each year . this seasonality is generally attributable to consumer buying trends and the timing of manufacturer new vehicle model introductions . in addition , in some regions of the u.s. , vehicle purchases decline during the winter months due to inclement weather . as a result , our u.s. revenues and operating income are typically lower in the first and fourth quarters and higher in the second and third quarters . for the u.k. , the first and third calendar quarters tend to be stronger , driven by plate change months of march and september . for brazil , we expect higher volumes in the third and fourth calendar quarters ; however , the first quarter is the weakest , driven by heavy vacations and activities associated with carnival . other factors unrelated to seasonality , such as changes in economic condition and manufacturer incentive programs , may exaggerate seasonal or cause counter-seasonal fluctuations in our revenues and operating income . according to u.s. industry experts , the annual new light vehicle unit sales for 2014 increased 918 thousand units , or 5.9 % , to 16.5 million units , compared to 15.6 million units in 2013 . the u.k. economy represents the sixth largest economy in the world . the u.k. remained the second largest market in the eu , surpassing the region 's 5.7 % average growth . light vehicle registrations in the u.k. increased 9.3 % to 2.5 million during 2014 as compared to the same period a year ago . brazil represents the seventh largest economy in the world and the fourth largest car market . recently , the brazilian economy has been one of the fastest growing economies in the world . however , the brazilian economy is facing many challenges and is not demonstrating significant growth at the moment . light vehicle industry unit sales in brazil declined 7.6 % during 2014 to 3.3 million as compared to the same period a year ago . and in 2014 , the brazilian economy experienced a rise in inflation and interest rates and a decrease in the value of the brazilian real compared to the u.s. dollar . on a consolidated basis for the year ended december 31 , 2014 , our total revenues increased 11.4 % from 2013 to $ 9.9 billion and gross profit improved 12.0 % to $ 1.4 billion . for the years ended december 31 , 2013 and 2012 , total revenues were $ 8.9 billion and $ 7.5 billion , respectively . for the years ended december 31 , 2013 and 2012 , gross profits were $ 1,292.5 million and $ 1,117.3 million , respectively . we generated net income of $ 93.0 million , or $ 3.60 per diluted common share for the year ended december 31 , 2014 , compared to $ 114.0 million , or $ 4.32 per diluted share for the year ended december 31 , 2013 and $ 100.2 million , or $ 4.19 per diluted share for the year ended december 31 , 2012. in addition to the matters described above , the following factors impacted our financial condition and results of operations in 2014 , 2013 , and 2012 : year ended december 31 , 2014 : extinguishment of long-term debt : during the year , our 2014 results were negatively impacted by the extinguishment of our 2.25 % notes and 3.00 % notes . the aggregate loss for 2014 was $ 46.4 million . story_separator_special_tag recent accounting pronouncements refer to note 2 of our consolidated financial statements , “ summary of significant accounting polices and estimates , ” for a discussion of those most recent pronouncements that impact us . critical accounting policies and accounting estimates the preparation of our financial statements in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) principles requires management to make certain estimates and assumptions . these estimates and assumptions 41 affect the reported amounts of assets and liabilities , the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period . we analyze our estimates based on our historical experience and various other assumptions that we believe to be reasonable under the circumstances . however , actual results could differ from such estimates . the following is a discussion of our critical accounting estimates and policies . we have identified below what we believe to be the most pervasive accounting policies and estimates that are of particular importance to the portrayal of our financial position , results of operations and cash flows . see note 2 to our consolidated financial statements , “ summary of significant accounting policies and estimates , ” for further discussion of all our significant accounting policies and estimates . revenue recognition . revenues from vehicle sales , parts sales , and vehicle service are recognized upon completion of the sale or service and delivery to the customer . conditions to completing a sale include having an agreement with the customer , including pricing , and the sales price must be reasonably expected to be collected . we include revenues from our collision center operations in parts and services sales . we record the profit we receive for arranging vehicle fleet transactions net in other finance and insurance revenues . since all sales of new vehicles must occur through franchised new vehicle dealerships , the dealerships effectively act as agents for the automobile manufacturers in completing sales of vehicles to fleet customers . as these customers typically order the vehicles , we have no significant general inventory risk . additionally , fleet customers generally receive special purchase incentives from the automobile manufacturers and we receive only a nominal fee for facilitating the transactions . taxes collected from customers and remitted to governmental agencies are not included in total revenues . we arrange financing for customers through various institutions and receive financing fees based on the difference between the loan rates charged to customers and wholesale financing rates set by the financing institution . in addition , we receive fees from the sale of insurance and vehicle service contracts to customers . further , through agreements with certain vehicle service contract administrators , we earn volume incentive rebates and interest income on reserves , as well as participate in the underwriting profits of the products . we may be charged back for unearned financing , insurance contract or vehicle service contract fees in the event of early termination of the contracts by customers . revenues from these fees are recorded at the time of the sale of the vehicles and a reserve for future amounts which might be charged back is established based on our historical chargeback results and the termination provisions of the applicable contracts . while chargeback results vary depending on the type of contract sold , a 10 % increase in the historical chargeback results used in determining estimates of future amounts which might be charged back would have increased the reserve at december 31 , 2014 , by $ 2.9 million . inventories . new , used and demonstrator vehicle inventories are carried at the lower of specific cost or market and are removed from inventory using the specific identification method in the consolidated balance sheets . parts and accessories inventories are valued at lower of cost ( determined on a first-in , first-out basis ) or market in the consolidated balance sheets . vehicle inventory cost consists of the amount paid to acquire the inventory , plus the cost of reconditioning , cost of equipment added and transportation cost . additionally , we receive interest assistance from some of our automobile manufacturers . this assistance is accounted for as a vehicle purchase price discount and is reflected as a reduction to the inventory cost on our consolidated balance sheets and as a reduction to cost of sales in our statements of operations as the vehicles are sold . at december 31 , 2014 and 2013 , inventory cost had been reduced by $ 8.8 million and $ 9.0 million , respectively , for interest assistance received from manufacturers . new vehicle cost of sales was reduced by $ 45.1 million , $ 38.5 million , and $ 33.9 million for interest assistance received related to vehicles sold for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . the assistance over the past three years has ranged from approximately 87.3 % of our quarterly floorplan interest expense in the first quarter of 2013 to 117.7 % for the fourth quarter of 2014. as the market value of inventory typically declines over time , we establish new and used vehicle reserves based on our historical loss experience and considerations of current market trends . these reserves are charged to cost of sales and reduce the carrying value of inventory on hand . used vehicles are complex to value as there is no standardized source for determining exact values and each vehicle and each market in which we operate is unique . as a result , the value of each used vehicle taken at trade-in , or purchased at auction , is determined based on industry data , primarily accessed via our used vehicle management software and the industry expertise of the responsible used vehicle manager . valuation risk is partially mitigated , by the speed at which
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1,069 | 2014 acquisitions and integration in 2014 we acquired napw and noble voice , based on our theory that if these specific companies were combined we could build platforms to capture synergies that would allow us to own the technology and methods to drive pdn to a leadership position in the field of diversity recruiting . we believe that pdn and napw complemented one another because pdn 's products and services would benefit and help grow the napw membership revenue stream and napw 's membership database would be an accretive addition to pdn 's affinities . we believe that noble voice complemented pdn and napw because its technology would allow outreach to members in new and efficient ways , thereby scaling previous methods and helping to efficiently grow revenue . we believe that pdn and napw complemented noble voice because the customers , members and affinities in both companies provided new , scalable sources of revenue for noble voice . we therefore believe that all three companies , combined , mutually benefit one another and provide a scalable growth environment for all . as we close 2014 and move into 2015 , we are already seeing the fruits of our investment theory in real time . we have already integrated significant portions of all three companies in terms of underlying support technology , human resources and payroll policy , and company mission and culture . we believe that we have successfully begun to build a unified operation on a timetable ahead of our initial , internal expectations , and our successes to-date include the following key highlights : · increased cost savings by eliminating redundancies in systems and personnel across all divisions · increased efficiency of personnel management by harmonizing policies across all divisions · decreased risk and increased employee enrichment by creating our employee resource program which brings tangible new benefits to our employees and provides enhanced communication channels so that we can capture ideas and synergies identified by our employees · employed combined resources to introduce a new napw website , bringing more value to members and more data to company · combined pdn and noble voice sales resources to successfully launch hireadvantedge product and begin matching job-seekers to available jobs in real-time · combined all divisions ' resources to reach napw members for participation in hireadvantedge product · combined pdn and noble voice resources to launch beta hireadvantedge product 's e-commerce dashboard , allowing the company to sell qualified candidates via low-cost e-commerce method 29 · combined pdn and napw resources to upgrade benefits available to napw members across all napw membership tiers · combined all divisions ' resources to create new initial member tier and deliver upgraded benefits to complimentary napw members · combined all divisions ' resources to begin building new revenue pipeline to monetize complimentary napw members · combined noble voice and napw resources to create a low-cost testing environment · combined noble voice and napw resources to create an improved member support and engagement team · combined resources to greatly increase web traffic and time on site to all pdn , napw and noble voice online properties · combined resources to greatly increase pdn rate of new member registrations · combined resources to create improved user experience for pdn corporate customers through upgraded recruiter dashboard · combined pdn and noble voice resources to use efficient texting technology to support events sales · combined pdn and napw resources to deliver an expanded field of career fairs and networking summits our past several quarters have been transformational in the sense that we have re-tooled the company to capture opportunities that were not readily available to it before our 2014 acquisitions . though we believe we are still very early in the process of synergy capture through integration , we have already seen tangible success and begun to realize the theory that underlay each of our 2014 acquisitions . pdn operations we generate revenue from our pdn network through numerous sources , all of which involve recruitment services designed to meet growing demand for diverse talent . we offer job postings , recruitment advertising , semantic search technology , career and networking events . we also license our recruitment technology platform . we currently have over 9 00 companies utilizing our products and services . less than 5 % of our revenue is transacted online via ecommerce ; the majority of our sales are consummated via direct interaction with our diversity recruitment sales professionals . we generate revenue by contracting with medium to large employers seeking to diversify their employment ranks by advertising and promoting their job opportunities to our networks of diverse professionals and by assisting employers post their job opportunities in a method and manner compliant with the requirements of the ofccp . pdn – marketing directly to recruiters one of pdn 's core business strategies involves marketing our suite of products and services directly to recruiters . we market to both third-party and in-house corporate recruiters by assessing their diversity recruitment and talent acquisition needs and providing them real-time solutions that deliver diverse talent . we strongly believe that the industry has no single supplier that allows employers to access diverse candidates as efficiently as we are able to at our scale or quality , or with our unique understanding of the marketplace . we believe that our approach is both unique and scalable . our experience tells us that the diversity recruiting market is fragmented and difficult for diversity recruiting teams to penetrate because the market lacks a centralized point of approach . pdn solves that problem by developing strategic partnerships with leading organizations and providing a single point of access , which we deliver in an automated and culturally-relevant way that is meaningful to the job seeker . story_separator_special_tag sales and marketing expense : sales and marketing expense for the year ended december 31 , 2014 was $ 8,041,000 , an increase of $ 5,694,000 , or 242.6 % , compared to $ 2,347,000 for the year ended december 31 , 2013. the increase primarily consisted of $ 4,848,000 of sales and marketing expenses from napw since its acquisition date , which included $ 1,848,000 of wages and benefits for the napw sales team and $ 3,000,000 of digital advertising and direct mail costs to generate leads , and an increase of $ 850,000 for the year ended december 31 , 2014 in sales and marketing salaries , commissions and benefits for pdn which resulted from hiring additional staff to support our direct sales capabilities . general and administrative expense : general and administrative expenses increased by $ 4,124,000 , or 181.8 % to $ 6,3926,000 for the year ended december 31 , 2014 , compared to $ 2,268,000 for the year ended december 31 , 2013 , primarily due to ( 1 ) $ 2,835,000 of expenses from napw and $ 681,000 from noble voice from each respective acquisition date to december 31 , 2014 and ( 2 ) stock based compensation expense of $ 565,000 incurred in connection with the granting of stock as a component of the employment contracts of the former owners of noble voice and options granted to certain members of management and employees . additionally , in connection with the acquisition of psi in june 2013 , we committed to pay the former chief executive officer a minimum additional $ 100,000 on each of september 30 , 2014 and 2015 , contingent upon his continued employment with us and divisional results on each of those respective dates . we recorded an expense of $ 100,000 related to these contingent liabilities during the year ended december 31 , 2014. depreciation and amortization expense : depreciation and amortization expense for the year ended december 31 , 2014 was $ 1,084,000 , compared to $ 282,000 for the year ended december 31 , 2013 , an increase of $ 802,000 or 284.4 % which was primarily due to a $ 711,000 increase in amortization expense , resulting from the amortization of the intangible assets of $ 14,905,000 acquired from old napw and $ 650,000 from noble voice and an $ 87,000 increase in depreciation and amortization related to the additions to capitalized software relating to web product platform development to support emerging technologies and to the acquired software technology from careerimp inc. in june 2013 . 35 gain on bargain purchase of business : in connection with our acquisition of noble voice on november 26 , 2014 , we recognized a $ 430,000 gain on the bargain purchase of noble voice , which represents the excess of the fair value of the net assets acquired over the purchase price . other expenses included in other expenses , net , for the years ended december 31 , 2014 and 2013 is interest expense in the amount of $ 3,000 and $ 155,000 , respectively . interest expense in 2014 is the result of the note payable to proman which had been issued in conjunction with the acquisition of old napw . interest expense for 2013 is primarily attributable to the amortization of the discount on the note payable to one of the note holders as the note was exchanged to equity upon our reorganization on march 4 , 2013. amortization of the discount amounted to $ 0 and $ 155,000 for the year ended december 31 , 2014 and 2013 , respectively , for the note . acquisition related costs of $ 1,195,000 for the year ended december 31 , 2014 were for professional services and fees directly related to our merger with old napw and our purchase of the assets of global outreach ventures . change in fair value of warrant liability the change in the fair value of the warrant liability is related to the common stock purchase warrants issued to underwriters in the company 's ipo on march 4 , 2013. during the year ended december 31 , 2014 , we recorded a non-cash loss of $ 9,000 related to changes in the fair value of our warrant liability liabilities . the change in the fair value of our warrant liability for the year ended december 31 , 2014 was primarily the result of changes in our stock price . income tax benefit as a result of the company 's completion of its ipo , the company 's results of operations are taxed as a c corporation . prior to the ipo , the company 's operations were taxed as a limited liability company , whereby the company elected to be taxed as a partnership and the income or loss was required to be reported by each respective member on their separate income tax returns . therefore , no provision for income taxes was recorded for periods prior to march 4 , 2013 ( the date on which the tax status changed to a c corporation ) . this change in tax status in 2013 to a taxable entity resulted in the recognition of deferred tax assets and liabilities based on the expected tax consequences of temporary differences between the book and tax basis of the company 's assets and liabilities at the date of the ipo . this resulted in a net deferred tax benefit of $ 3,062,000 and $ 381,000 being recognized and included in the tax provisions for the years ended december 31 , 2014 and 2013 , respectively . the tax benefit was determined using an effective tax rate of 38.8 % and 40.6 % for the year ended december 31 , 2014 and for the period from march 4 , 2013 to december 31 , 2013 , respectively . the unaudited pro forma computation of income tax benefit included in the statements of comprehensive loss represents the tax effects
| net cash used in operating activities net cash used in operating activities for the year ended december 31 , 2014 was $ 8,790,000. the cash flow used in operations during 2014 was primarily attributable to changes in our assets and liabilities , mainly consisting of a decrease in accounts receivable of $ 371,000 and an increase in deferred revenue of $ 175,000. accounts receivable decreased approximately 15.8 % in 2014 while our revenue increased 9.4 % . the decrease in accounts receivable was due to the collection of outstanding receivables . we had a net loss of $ 3,658,000 which was partially offset by non-cash depreciation and amortization of $ 1,084,000 , a non-cash deferred tax benefit of $ 3,062,000 , a non-cash net gain on the bargain purchase of noble voice of $ 430,000 , the fair value of warrants issued to an advisor in connection with our acquisition of old napw of $ 139,000 , stock-based compensation expense of $ 565,000 and the amortization of premiums paid on short-term investments of $ 87,000. cash was also used to prepay a license fee of $ 450,000 for rights to market a patented technology product , and decrease accounts payable and accrued expenses of $ 4,177,000. operating cash was also provided by customer deposits of $ 450,000. napw revenues are primarily generated through the sales of 12 month memberships and renewals . memberships are paid when acquired or renewed and entitle the member to benefits for the following 12 months . commissions for sales of new memberships are accrued in the month sold . as a result , although cash is received in the month of sale , revenue is deferred and commission expense is recognized ratably over the year of membership .
| 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. |
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.
```net cash used in operating activities net cash used in operating activities for the year ended december 31 , 2014 was $ 8,790,000. the cash flow used in operations during 2014 was primarily attributable to changes in our assets and liabilities , mainly consisting of a decrease in accounts receivable of $ 371,000 and an increase in deferred revenue of $ 175,000. accounts receivable decreased approximately 15.8 % in 2014 while our revenue increased 9.4 % . the decrease in accounts receivable was due to the collection of outstanding receivables . we had a net loss of $ 3,658,000 which was partially offset by non-cash depreciation and amortization of $ 1,084,000 , a non-cash deferred tax benefit of $ 3,062,000 , a non-cash net gain on the bargain purchase of noble voice of $ 430,000 , the fair value of warrants issued to an advisor in connection with our acquisition of old napw of $ 139,000 , stock-based compensation expense of $ 565,000 and the amortization of premiums paid on short-term investments of $ 87,000. cash was also used to prepay a license fee of $ 450,000 for rights to market a patented technology product , and decrease accounts payable and accrued expenses of $ 4,177,000. operating cash was also provided by customer deposits of $ 450,000. napw revenues are primarily generated through the sales of 12 month memberships and renewals . memberships are paid when acquired or renewed and entitle the member to benefits for the following 12 months . commissions for sales of new memberships are accrued in the month sold . as a result , although cash is received in the month of sale , revenue is deferred and commission expense is recognized ratably over the year of membership .
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Suspicious Activity Report : 2014 acquisitions and integration in 2014 we acquired napw and noble voice , based on our theory that if these specific companies were combined we could build platforms to capture synergies that would allow us to own the technology and methods to drive pdn to a leadership position in the field of diversity recruiting . we believe that pdn and napw complemented one another because pdn 's products and services would benefit and help grow the napw membership revenue stream and napw 's membership database would be an accretive addition to pdn 's affinities . we believe that noble voice complemented pdn and napw because its technology would allow outreach to members in new and efficient ways , thereby scaling previous methods and helping to efficiently grow revenue . we believe that pdn and napw complemented noble voice because the customers , members and affinities in both companies provided new , scalable sources of revenue for noble voice . we therefore believe that all three companies , combined , mutually benefit one another and provide a scalable growth environment for all . as we close 2014 and move into 2015 , we are already seeing the fruits of our investment theory in real time . we have already integrated significant portions of all three companies in terms of underlying support technology , human resources and payroll policy , and company mission and culture . we believe that we have successfully begun to build a unified operation on a timetable ahead of our initial , internal expectations , and our successes to-date include the following key highlights : · increased cost savings by eliminating redundancies in systems and personnel across all divisions · increased efficiency of personnel management by harmonizing policies across all divisions · decreased risk and increased employee enrichment by creating our employee resource program which brings tangible new benefits to our employees and provides enhanced communication channels so that we can capture ideas and synergies identified by our employees · employed combined resources to introduce a new napw website , bringing more value to members and more data to company · combined pdn and noble voice sales resources to successfully launch hireadvantedge product and begin matching job-seekers to available jobs in real-time · combined all divisions ' resources to reach napw members for participation in hireadvantedge product · combined pdn and noble voice resources to launch beta hireadvantedge product 's e-commerce dashboard , allowing the company to sell qualified candidates via low-cost e-commerce method 29 · combined pdn and napw resources to upgrade benefits available to napw members across all napw membership tiers · combined all divisions ' resources to create new initial member tier and deliver upgraded benefits to complimentary napw members · combined all divisions ' resources to begin building new revenue pipeline to monetize complimentary napw members · combined noble voice and napw resources to create a low-cost testing environment · combined noble voice and napw resources to create an improved member support and engagement team · combined resources to greatly increase web traffic and time on site to all pdn , napw and noble voice online properties · combined resources to greatly increase pdn rate of new member registrations · combined resources to create improved user experience for pdn corporate customers through upgraded recruiter dashboard · combined pdn and noble voice resources to use efficient texting technology to support events sales · combined pdn and napw resources to deliver an expanded field of career fairs and networking summits our past several quarters have been transformational in the sense that we have re-tooled the company to capture opportunities that were not readily available to it before our 2014 acquisitions . though we believe we are still very early in the process of synergy capture through integration , we have already seen tangible success and begun to realize the theory that underlay each of our 2014 acquisitions . pdn operations we generate revenue from our pdn network through numerous sources , all of which involve recruitment services designed to meet growing demand for diverse talent . we offer job postings , recruitment advertising , semantic search technology , career and networking events . we also license our recruitment technology platform . we currently have over 9 00 companies utilizing our products and services . less than 5 % of our revenue is transacted online via ecommerce ; the majority of our sales are consummated via direct interaction with our diversity recruitment sales professionals . we generate revenue by contracting with medium to large employers seeking to diversify their employment ranks by advertising and promoting their job opportunities to our networks of diverse professionals and by assisting employers post their job opportunities in a method and manner compliant with the requirements of the ofccp . pdn – marketing directly to recruiters one of pdn 's core business strategies involves marketing our suite of products and services directly to recruiters . we market to both third-party and in-house corporate recruiters by assessing their diversity recruitment and talent acquisition needs and providing them real-time solutions that deliver diverse talent . we strongly believe that the industry has no single supplier that allows employers to access diverse candidates as efficiently as we are able to at our scale or quality , or with our unique understanding of the marketplace . we believe that our approach is both unique and scalable . our experience tells us that the diversity recruiting market is fragmented and difficult for diversity recruiting teams to penetrate because the market lacks a centralized point of approach . pdn solves that problem by developing strategic partnerships with leading organizations and providing a single point of access , which we deliver in an automated and culturally-relevant way that is meaningful to the job seeker . story_separator_special_tag sales and marketing expense : sales and marketing expense for the year ended december 31 , 2014 was $ 8,041,000 , an increase of $ 5,694,000 , or 242.6 % , compared to $ 2,347,000 for the year ended december 31 , 2013. the increase primarily consisted of $ 4,848,000 of sales and marketing expenses from napw since its acquisition date , which included $ 1,848,000 of wages and benefits for the napw sales team and $ 3,000,000 of digital advertising and direct mail costs to generate leads , and an increase of $ 850,000 for the year ended december 31 , 2014 in sales and marketing salaries , commissions and benefits for pdn which resulted from hiring additional staff to support our direct sales capabilities . general and administrative expense : general and administrative expenses increased by $ 4,124,000 , or 181.8 % to $ 6,3926,000 for the year ended december 31 , 2014 , compared to $ 2,268,000 for the year ended december 31 , 2013 , primarily due to ( 1 ) $ 2,835,000 of expenses from napw and $ 681,000 from noble voice from each respective acquisition date to december 31 , 2014 and ( 2 ) stock based compensation expense of $ 565,000 incurred in connection with the granting of stock as a component of the employment contracts of the former owners of noble voice and options granted to certain members of management and employees . additionally , in connection with the acquisition of psi in june 2013 , we committed to pay the former chief executive officer a minimum additional $ 100,000 on each of september 30 , 2014 and 2015 , contingent upon his continued employment with us and divisional results on each of those respective dates . we recorded an expense of $ 100,000 related to these contingent liabilities during the year ended december 31 , 2014. depreciation and amortization expense : depreciation and amortization expense for the year ended december 31 , 2014 was $ 1,084,000 , compared to $ 282,000 for the year ended december 31 , 2013 , an increase of $ 802,000 or 284.4 % which was primarily due to a $ 711,000 increase in amortization expense , resulting from the amortization of the intangible assets of $ 14,905,000 acquired from old napw and $ 650,000 from noble voice and an $ 87,000 increase in depreciation and amortization related to the additions to capitalized software relating to web product platform development to support emerging technologies and to the acquired software technology from careerimp inc. in june 2013 . 35 gain on bargain purchase of business : in connection with our acquisition of noble voice on november 26 , 2014 , we recognized a $ 430,000 gain on the bargain purchase of noble voice , which represents the excess of the fair value of the net assets acquired over the purchase price . other expenses included in other expenses , net , for the years ended december 31 , 2014 and 2013 is interest expense in the amount of $ 3,000 and $ 155,000 , respectively . interest expense in 2014 is the result of the note payable to proman which had been issued in conjunction with the acquisition of old napw . interest expense for 2013 is primarily attributable to the amortization of the discount on the note payable to one of the note holders as the note was exchanged to equity upon our reorganization on march 4 , 2013. amortization of the discount amounted to $ 0 and $ 155,000 for the year ended december 31 , 2014 and 2013 , respectively , for the note . acquisition related costs of $ 1,195,000 for the year ended december 31 , 2014 were for professional services and fees directly related to our merger with old napw and our purchase of the assets of global outreach ventures . change in fair value of warrant liability the change in the fair value of the warrant liability is related to the common stock purchase warrants issued to underwriters in the company 's ipo on march 4 , 2013. during the year ended december 31 , 2014 , we recorded a non-cash loss of $ 9,000 related to changes in the fair value of our warrant liability liabilities . the change in the fair value of our warrant liability for the year ended december 31 , 2014 was primarily the result of changes in our stock price . income tax benefit as a result of the company 's completion of its ipo , the company 's results of operations are taxed as a c corporation . prior to the ipo , the company 's operations were taxed as a limited liability company , whereby the company elected to be taxed as a partnership and the income or loss was required to be reported by each respective member on their separate income tax returns . therefore , no provision for income taxes was recorded for periods prior to march 4 , 2013 ( the date on which the tax status changed to a c corporation ) . this change in tax status in 2013 to a taxable entity resulted in the recognition of deferred tax assets and liabilities based on the expected tax consequences of temporary differences between the book and tax basis of the company 's assets and liabilities at the date of the ipo . this resulted in a net deferred tax benefit of $ 3,062,000 and $ 381,000 being recognized and included in the tax provisions for the years ended december 31 , 2014 and 2013 , respectively . the tax benefit was determined using an effective tax rate of 38.8 % and 40.6 % for the year ended december 31 , 2014 and for the period from march 4 , 2013 to december 31 , 2013 , respectively . the unaudited pro forma computation of income tax benefit included in the statements of comprehensive loss represents the tax effects
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1,070 | acre transferred its interest in a $ 24.4 million senior mortgage loan on an office property located in north carolina to a third party and retained a $ 6.1 million mezzanine loan on the same property . acre determined that the transfer did not qualify as a sale and therefore treated it as a financing transaction . as such , acre did not derecognize the $ 24.4 million senior mortgage loan asset and recorded a secured borrowing liability in its consolidated balance sheets . the initial maturity date of the $ 24.4 million secured borrowing is may 5 , 2023 , subject to one 12-month extension , which may be exercised at the transferee 's option , which , if exercised , would extend the maturity date to may 5 , 2024. advances under the $ 24.4 million secured borrowing accrue interest at a per annum rate equal to the sum of one-month libor plus a spread of 2.50 % . developments during the second quarter of 2020 : acre originated a $ 91.8 million senior mortgage loan on a multifamily property located in florida . subsequent to the origination date , we bifurcated the senior mortgage loan between a $ 66.9 million senior participation and a $ 24.9 million subordinated participation . in june 2020 , we transferred our interest in the $ 24.9 million subordinated participation to a third party and retained the $ 66.9 million senior participation . we determined that the transfer did not qualify as a sale and thus , is treated as a financing transaction . as such , we did not derecognize the $ 24.9 million subordinated participation and recorded a secured borrowing liability in our consolidated balance sheets . 56 acre purchased a $ 46.7 million senior mortgage loan on a multifamily property located in florida from the ares warehouse vehicle . subsequent to the origination date , we bifurcated the senior mortgage loan between a $ 34.1 million senior participation and a $ 12.6 million subordinated participation . in june 2020 , we transferred our interest in the $ 12.6 million subordinated participation to a third party and retained the $ 34.1 million senior participation . we determined that the transfer did not qualify as a sale and thus , is treated as a financing transaction . as such , we did not derecognize the $ 12.6 million subordinated participation and recorded a secured borrowing liability in our consolidated balance sheets . acre entered into a sale agreement with a third party to sell a senior mortgage loan with outstanding principal of $ 31.5 million , which is collateralized by a hotel property located in minnesota . as of june 30 , 2020 , the sale had not yet closed and the loan was reclassified from held for investment to held for sale and is carried at fair value . acre recognized an unrealized loss of $ 2.2 million upon reclassifying the loan to held for sale as the carrying value exceeded fair value as determined by the agreed upon sale price of the loan . developments during the third quarter of 2020 : acre closed the sale of a senior mortgage loan with outstanding principal of $ 31.5 million , which was collateralized by a hotel property located in minnesota , to a third party . in addition , acre closed the sale of two senior mortgage loans to a third party with outstanding principal of $ 39.9 million and $ 29.6 million , respectively , which were collateralized by multifamily properties located in illinois and texas , respectively . acre recognized an aggregate net realized loss of $ 4.0 million upon the closing of the sale of the three loans as the carrying value exceeded the sale prices of the loans . the u.s. bank facility ( as defined below ) matured and its term was not extended . the u.s. bank facility had been repaid in full prior to the maturity date . acre amended the metlife facility ( as defined below ) to , among other things , ( 1 ) extend the initial maturity date of the metlife facility to august 13 , 2022 , subject to two 12-month extensions , each of which may be exercised at acre 's option , subject to the satisfaction of certain conditions , including payment of an extension fee , which , if both were exercised , would extend the maturity date of the metlife facility to august 13 , 2024 , ( 2 ) increase the interest rate on new advances subsequent to the date of the amendment to a per annum rate equal to the sum of one-month libor plus a spread of 2.50 % . the interest rate on advances with respect to existing loans financed under the metlife facility prior to the amendment will continue to accrue interest at a per annum rate equal to the sum of one-month libor plus a spread of 2.30 % , subject to certain exceptions and ( 3 ) waive the non-utilization fee of 25 basis points per annum on the average daily available balance of the metlife facility , which is owed if less than 65 % of the metlife facility is utilized , for a period of nine months subsequent to the date of the amendment . developments during the fourth quarter of 2020 : acre purchased an $ 8.5 million senior mortgage loan on an office property located in illinois from the ares warehouse vehicle . story_separator_special_tag 60 the notes are collateralized by interests in a pool of 23 mortgage assets having a total principal balance of approximately $ 667.3 million ( the “ mortgage assets ” ) that were originated by a subsidiary of ours . during the period ending in april 2024 ( the “ companion participation acquisition period ” ) , the issuer may use certain principal proceeds from the mortgage assets to acquire additional funded pari-passu participations related to the mortgage assets that meet certain acquisition criteria . the sale of the mortgage assets to the issuer is governed by a mortgage asset purchase agreement between the seller and the issuer , and acknowledged by us solely for purposes of confirming our status as a reit , in which the seller made certain customary representations , warranties and covenants . in connection with the fl4 clo securitization , the issuer and co-issuer offered and issued the following classes of notes to third party investors : class a , class a-s , class b , class c , class d and class e notes ( collectively , the “ offered notes ” ) . a wholly owned subsidiary of ours retained approximately $ 62.5 million of the notes and all of the $ 64.3 million of preferred equity in the issuer , which totaled $ 126.8 million . we , as the holder of the subordinated notes and all of the preferred equity in the issuer , have the obligation to absorb losses of the fl4 clo securitization , since we have a first loss position in the capital structure of the fl4 clo securitization . on january 28 , 2021 , we purchased a $ 105.5 million senior mortgage loan on an office property located in illinois from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 103.6 million . the loan has a per annum interest rate of libor plus 2.15 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a $ 5.6 million senior mortgage loan on a self storage property located in illinois from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 5.4 million . the loan has a per annum interest rate of libor plus 3.00 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 6.4 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 4.4 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 7.0 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 10.8 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a $ 6.5 million senior mortgage loan on a self storage property located in missouri from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 5.9 million . the loan has a per annum interest rate of libor plus 3.00 % ( plus accretion of the purchase discount ) and an initial term of three years . on february 16 , 2021 , we entered into an interest rate swap ( the “ swap ” ) with morgan stanley capital services , llc ( “ morgan stanley capital ” ) for the initial notional amount of $ 870.0 million , which amortizes according to an agreed upon notional schedule . the swap requires us to pay a fixed interest rate of 0.2075 % and for morgan stanley capital to pay a floating rate equal to one-month libor , subject to a 0.00 % floor . the swap has a termination date of december 15 , 2023. on february 16 , 2021 , we entered into an interest rate cap ( the “ cap ” ) with morgan stanley capital for the initial notional amount of $ 275.0 million , which amortizes according to an agreed upon notional schedule . the cap is tied to one-month libor with a strike rate of 0.50 % . the cap has a termination date of december 15 , 2023 . 61 on february 17 , 2021 , we declared a cash dividend of $ 0.33 per common share for the first quarter of 2021 and a supplemental cash dividend of $ 0.02 per common share . the first quarter 2021 and supplemental cash dividend will be payable on april 15 , 2021 to common stockholders of record as of march 31 , 2021. results of operations for the years ended december 31 , 2020 and 2019 the following table sets forth a summary of our consolidated results of operations for the years ended december 31 , 2020 and 2019 ( $
| cash flows for the years ended december 31 , 2020 and 2019 the following table sets forth changes in cash , cash equivalents and restricted cash for the years ended december 31 , 2020 and 2019 ( $ in thousands ) : replace_table_token_5_th during the years ended december 31 , 2020 and 2019 , cash , cash equivalents and restricted cash increased ( decreased ) by $ 69.1 million and $ ( 5.8 ) million , respectively . operating activities for the years ended december 31 , 2020 and 2019 , net cash provided by operating activities totaled $ 31.8 million and $ 32.5 million , respectively . for the year ended december 31 , 2020 , adjustments to net income related to operating activities primarily included the provision for current expected credit losses of $ 20.2 million , accretion of deferred loan origination fees and costs of $ 7.4 million , amortization of deferred financing costs of $ 6.4 million and change in other assets of $ 15.3 million . for the year ended december 31 , 2019 , adjustments to net income related to operating activities primarily included accretion of deferred loan origination fees and costs of $ 7.0 million , amortization of deferred financing costs of $ 6.6 million and change in other assets of $ 6.4 million . investing activities for the years ended december 31 , 2020 and 2019 , net cash used in investing activities totaled $ 81.9 million and $ 174.4 million , 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows for the years ended december 31 , 2020 and 2019 the following table sets forth changes in cash , cash equivalents and restricted cash for the years ended december 31 , 2020 and 2019 ( $ in thousands ) : replace_table_token_5_th during the years ended december 31 , 2020 and 2019 , cash , cash equivalents and restricted cash increased ( decreased ) by $ 69.1 million and $ ( 5.8 ) million , respectively . operating activities for the years ended december 31 , 2020 and 2019 , net cash provided by operating activities totaled $ 31.8 million and $ 32.5 million , respectively . for the year ended december 31 , 2020 , adjustments to net income related to operating activities primarily included the provision for current expected credit losses of $ 20.2 million , accretion of deferred loan origination fees and costs of $ 7.4 million , amortization of deferred financing costs of $ 6.4 million and change in other assets of $ 15.3 million . for the year ended december 31 , 2019 , adjustments to net income related to operating activities primarily included accretion of deferred loan origination fees and costs of $ 7.0 million , amortization of deferred financing costs of $ 6.6 million and change in other assets of $ 6.4 million . investing activities for the years ended december 31 , 2020 and 2019 , net cash used in investing activities totaled $ 81.9 million and $ 174.4 million , respectively .
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Suspicious Activity Report : acre transferred its interest in a $ 24.4 million senior mortgage loan on an office property located in north carolina to a third party and retained a $ 6.1 million mezzanine loan on the same property . acre determined that the transfer did not qualify as a sale and therefore treated it as a financing transaction . as such , acre did not derecognize the $ 24.4 million senior mortgage loan asset and recorded a secured borrowing liability in its consolidated balance sheets . the initial maturity date of the $ 24.4 million secured borrowing is may 5 , 2023 , subject to one 12-month extension , which may be exercised at the transferee 's option , which , if exercised , would extend the maturity date to may 5 , 2024. advances under the $ 24.4 million secured borrowing accrue interest at a per annum rate equal to the sum of one-month libor plus a spread of 2.50 % . developments during the second quarter of 2020 : acre originated a $ 91.8 million senior mortgage loan on a multifamily property located in florida . subsequent to the origination date , we bifurcated the senior mortgage loan between a $ 66.9 million senior participation and a $ 24.9 million subordinated participation . in june 2020 , we transferred our interest in the $ 24.9 million subordinated participation to a third party and retained the $ 66.9 million senior participation . we determined that the transfer did not qualify as a sale and thus , is treated as a financing transaction . as such , we did not derecognize the $ 24.9 million subordinated participation and recorded a secured borrowing liability in our consolidated balance sheets . 56 acre purchased a $ 46.7 million senior mortgage loan on a multifamily property located in florida from the ares warehouse vehicle . subsequent to the origination date , we bifurcated the senior mortgage loan between a $ 34.1 million senior participation and a $ 12.6 million subordinated participation . in june 2020 , we transferred our interest in the $ 12.6 million subordinated participation to a third party and retained the $ 34.1 million senior participation . we determined that the transfer did not qualify as a sale and thus , is treated as a financing transaction . as such , we did not derecognize the $ 12.6 million subordinated participation and recorded a secured borrowing liability in our consolidated balance sheets . acre entered into a sale agreement with a third party to sell a senior mortgage loan with outstanding principal of $ 31.5 million , which is collateralized by a hotel property located in minnesota . as of june 30 , 2020 , the sale had not yet closed and the loan was reclassified from held for investment to held for sale and is carried at fair value . acre recognized an unrealized loss of $ 2.2 million upon reclassifying the loan to held for sale as the carrying value exceeded fair value as determined by the agreed upon sale price of the loan . developments during the third quarter of 2020 : acre closed the sale of a senior mortgage loan with outstanding principal of $ 31.5 million , which was collateralized by a hotel property located in minnesota , to a third party . in addition , acre closed the sale of two senior mortgage loans to a third party with outstanding principal of $ 39.9 million and $ 29.6 million , respectively , which were collateralized by multifamily properties located in illinois and texas , respectively . acre recognized an aggregate net realized loss of $ 4.0 million upon the closing of the sale of the three loans as the carrying value exceeded the sale prices of the loans . the u.s. bank facility ( as defined below ) matured and its term was not extended . the u.s. bank facility had been repaid in full prior to the maturity date . acre amended the metlife facility ( as defined below ) to , among other things , ( 1 ) extend the initial maturity date of the metlife facility to august 13 , 2022 , subject to two 12-month extensions , each of which may be exercised at acre 's option , subject to the satisfaction of certain conditions , including payment of an extension fee , which , if both were exercised , would extend the maturity date of the metlife facility to august 13 , 2024 , ( 2 ) increase the interest rate on new advances subsequent to the date of the amendment to a per annum rate equal to the sum of one-month libor plus a spread of 2.50 % . the interest rate on advances with respect to existing loans financed under the metlife facility prior to the amendment will continue to accrue interest at a per annum rate equal to the sum of one-month libor plus a spread of 2.30 % , subject to certain exceptions and ( 3 ) waive the non-utilization fee of 25 basis points per annum on the average daily available balance of the metlife facility , which is owed if less than 65 % of the metlife facility is utilized , for a period of nine months subsequent to the date of the amendment . developments during the fourth quarter of 2020 : acre purchased an $ 8.5 million senior mortgage loan on an office property located in illinois from the ares warehouse vehicle . story_separator_special_tag 60 the notes are collateralized by interests in a pool of 23 mortgage assets having a total principal balance of approximately $ 667.3 million ( the “ mortgage assets ” ) that were originated by a subsidiary of ours . during the period ending in april 2024 ( the “ companion participation acquisition period ” ) , the issuer may use certain principal proceeds from the mortgage assets to acquire additional funded pari-passu participations related to the mortgage assets that meet certain acquisition criteria . the sale of the mortgage assets to the issuer is governed by a mortgage asset purchase agreement between the seller and the issuer , and acknowledged by us solely for purposes of confirming our status as a reit , in which the seller made certain customary representations , warranties and covenants . in connection with the fl4 clo securitization , the issuer and co-issuer offered and issued the following classes of notes to third party investors : class a , class a-s , class b , class c , class d and class e notes ( collectively , the “ offered notes ” ) . a wholly owned subsidiary of ours retained approximately $ 62.5 million of the notes and all of the $ 64.3 million of preferred equity in the issuer , which totaled $ 126.8 million . we , as the holder of the subordinated notes and all of the preferred equity in the issuer , have the obligation to absorb losses of the fl4 clo securitization , since we have a first loss position in the capital structure of the fl4 clo securitization . on january 28 , 2021 , we purchased a $ 105.5 million senior mortgage loan on an office property located in illinois from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 103.6 million . the loan has a per annum interest rate of libor plus 2.15 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a $ 5.6 million senior mortgage loan on a self storage property located in illinois from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 5.4 million . the loan has a per annum interest rate of libor plus 3.00 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 6.4 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 4.4 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 7.0 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a fully funded $ 10.8 million senior mortgage loan on a self storage property located in florida from the ares warehouse vehicle . the loan has a per annum interest rate of libor plus 2.90 % ( plus accretion of the purchase discount ) and an initial term of three years . on january 28 , 2021 , we purchased a $ 6.5 million senior mortgage loan on a self storage property located in missouri from the ares warehouse vehicle . at the purchase date , the outstanding principal balance was approximately $ 5.9 million . the loan has a per annum interest rate of libor plus 3.00 % ( plus accretion of the purchase discount ) and an initial term of three years . on february 16 , 2021 , we entered into an interest rate swap ( the “ swap ” ) with morgan stanley capital services , llc ( “ morgan stanley capital ” ) for the initial notional amount of $ 870.0 million , which amortizes according to an agreed upon notional schedule . the swap requires us to pay a fixed interest rate of 0.2075 % and for morgan stanley capital to pay a floating rate equal to one-month libor , subject to a 0.00 % floor . the swap has a termination date of december 15 , 2023. on february 16 , 2021 , we entered into an interest rate cap ( the “ cap ” ) with morgan stanley capital for the initial notional amount of $ 275.0 million , which amortizes according to an agreed upon notional schedule . the cap is tied to one-month libor with a strike rate of 0.50 % . the cap has a termination date of december 15 , 2023 . 61 on february 17 , 2021 , we declared a cash dividend of $ 0.33 per common share for the first quarter of 2021 and a supplemental cash dividend of $ 0.02 per common share . the first quarter 2021 and supplemental cash dividend will be payable on april 15 , 2021 to common stockholders of record as of march 31 , 2021. results of operations for the years ended december 31 , 2020 and 2019 the following table sets forth a summary of our consolidated results of operations for the years ended december 31 , 2020 and 2019 ( $
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1,071 | csoi is the consolidated operating ( loss ) income of our two segments , north america and international , adjusted for acquisition-related costs and stock-based compensation expense . acquisition-related costs are non-recurring , non-cash items related to certain of our acquisitions . stock-based compensation expense is a non-cash item . as reported under u.s. gaap , we do not allocate stock‑based 40 compensation and acquisition‑related expense to our segments . we use csoi to allocate resources and evaluate performance internally . csoi is a non‑gaap financial measure . for further information and a reconciliation to the most applicable financial measure under u.s. gaap , refer to our discussion under non-gaap financial measures in the `` results of operations `` section . free cash flow . free cash flow , which is reconciled to `` net cash provided by operating activities , `` is cash flow from operations reduced by `` purchases of property and equipment . `` we use free cash flow , and ratios based on it , to conduct and evaluate our business because , although it is similar to cash flow from operations , we believe it typically will present a more appropriate measure of cash flows as purchases of fixed assets , software developed for internal use and website development costs are a necessary component of ongoing operations . free cash flow is a non-gaap financial measure . for further information and a reconciliation to the most applicable financial measure under u.s. gaap , refer to our discussion under non-gaap financial measures in the `` results of operations `` section . operating metrics gross billings . this metric represents the gross amounts collected from customers for groupons sold , excluding any applicable taxes and net of estimated refunds . we consider this metric to be an important indicator of our growth and business performance as it is a proxy for the dollar volume of transactions through our marketplace , net of tax and reserves . tracking gross billings also allows us to track changes in the percentage of gross billings that we are able to retain after payments to our merchant partners . gross billings are not equivalent to revenues or any other financial metric presented in our consolidated financial statements . active customers . we define active customers as unique individuals that have purchased groupons during the trailing twelve months . we consider this metric to be an important indicator of our business performance as it helps us to understand how the number of individuals purchasing groupons is trending . gross billings per average active customer . this metric represents the trailing twelve months gross billings generated per average active customer . this metric is presented as the total gross billings generated in the trailing twelve months , divided by the average number of active customers in such time period . although we believe total gross billings , not trailing twelve months gross billings per average active customer , is a better indication of the overall growth of our marketplace over time , trailing twelve months gross billings per average active customer provides an opportunity to evaluate whether our growth is primarily driven by growth in total customers or in spend per customer in any given period . revenue per average active customer . this metric represents the trailing twelve months revenue generated per average active customer . this metric is presented as the total revenue generated in the trailing twelve months , divided by the average number of active customers in such time period . although we believe total revenue , not trailing twelve months revenue per average active customer , is a better indication of the overall growth of our business , trailing twelve month revenue per average active customer provides an opportunity to evaluate whether our average customer is purchasing deals with a higher or lower commission profile to groupon . replace_table_token_6_th _ * not available ( 1 ) reflects the gross amounts collected from customers for groupons sold , excluding any applicable taxes and net of estimated refunds , in the applicable period . ( 2 ) reflects the total number of unique customers who have purchased groupons during the trailing twelve months . ( 3 ) reflects the total gross billings generated in the trailing twelve months per average active customer in the applicable period . 41 ( 4 ) reflects the total revenue generated in the trailing twelve months per average active customer in the applicable period . factors affecting our performance customer acquisition costs . we must continue to acquire and retain customers who purchase groupons in order to increase revenue and achieve profitability . if consumers do not perceive our groupon offerings to be of high value and quality , or if we fail to introduce new or more relevant deals , we may not be able to acquire or retain customers . in our limited operating history , we have not incurred significant marketing or other expense on initiatives designed to re-activate customers or increase the level of purchases by our existing customers . if such expenditures or initiatives become necessary to maintain a desired level of activity in our marketplace , our business and profitability could be adversely affected . deal sourcing and quality . we consider our merchant partner relationships to be a vital part of our business model . we depend on our ability to attract and retain merchants that are prepared to offer products or services on compelling terms . we do not have long-term arrangements to guarantee availability of deals that offer attractive quality , value and variety to consumers or favorable payment terms to us . in light of our objective to promote variety in our daily deals , our general practice to date has been to limit repeat merchants . story_separator_special_tag our customer loyalty and rewards program also contributed significantly to our increase in marketing expense as many of these programs were not put in place until the second half of 2010. in addition , we increased our marketing staff to support our global marketing efforts . for the year ended december 31 , 2010 , marketing expense as a percentage of revenue for the north america and international segments was 61.7 % and 148.4 % , respectively . in 2010 , we made significant marketing investments in our international segment to accelerate growth and establish our presence in new markets . as a result , we experienced much larger operating losses for our international segment than we did 47 for our north america segment . selling , general and administrative for the years ended december 31 , 2009 , 2010 and 2011 , our selling general and administrative expense was $ 5.8 million , $ 196.6 million and $ 821.0 million , respectively . the increases in selling , general and administrative expense were principally related to the build out of our global salesforce , investments in technology and investments in our corporate infrastructure necessary to support our current and anticipated growth . for the year ended december 31 , 2011 , selling , general and administrative expense as a percentage of revenue was 51.0 % , as compared to 62.8 % for the year ended december 31 , 2010. selling , general and administrative expense as a percentage of revenue has decreased from the prior year as the productivity of our sales force continues to improve . we are continuously refining our sales management and selling processes and additionally we are introducing new products and services facilitating deeper customer and merchant partner engagement . over time , as our operations mature in a greater percentage of our markets , we expect that our selling , general and administrative expense will continue to decrease as a percentage of revenue . 2011 compared to 2010. in 2011 , our selling , general and administrative expense increased by $ 624.4 million to $ 821.0 million , an increase of 317.5 % . the increase in selling , general and administrative expense for the year ended december 31 , 2011 compared to the year ended december 31 , 2010 was due to increases in wages and benefits , consulting and professional fees and depreciation and amortization expenses . additionally , selling , general and administrative expenses as a percentage of revenue for our international segment were significantly higher than for our north america segment , which contributed to larger operating losses in our international segment . this was primarily a result of the build out of our international operations , including our salesforce , to support future revenue growth . wages and benefits ( excluding stock‑based compensation ) increased by $ 354.9 million to $ 433.4 million in the year ended december 31 , 2011 as we continued to add sales force and administrative staff to support our business . stock‑based compensation costs also increased to $ 89.9 million for the year ended december 31 , 2011 from $ 35.9 million for the year ended december 31 , 2010 due to awards issued to retain key employees and awards issued in connection with our acquisitions . our consulting and professional fees increased in 2011 primarily related to higher legal and technology‑related costs . depreciation and amortization expense increased in 2011 primarily because we recorded $ 9.9 million of intangible assets in connection with our acquisitions in 2011 , resulting in an increase of amortization expense of $ 2.8 million . in addition , recognizing a full year of amortization for intangibles recorded in 2010 in connections with acquisitions resulted in an additional $ 10.5 million of amortization . 2010 compared to 2009. in 2010 , our selling , general and administrative expense increased by $ 190.8 million to $ 196.6 million , an increase of 3,262 % . the increase in selling , general and administrative expense for the year ended december 31 , 2010 compared to the year ended december 31 , 2009 was due to increases in wages and benefits , consulting and professional fees and depreciation and amortization expenses . additionally , the selling , general and administrative expenses as a percentage of gross billings for our international segment were significantly higher than for our north america segment , which contributed to larger operating losses in our international segment . this was primarily a result of the build out of our international operations , including our sales force , to support future revenue growth . we expect that over time selling , general and administrative expenses for our international segment will decline as a percentage of gross billings for the segment . wages and benefits ( excluding stock‑based compensation ) increased by $ 75.2 million to $ 78.6 million in the year ended december 31 , 2010 as we continued to add sales and administrative staff to support our business . stock‑based compensation costs also increased to $ 35.9 million for the year ended december 31 , 2010 from $ 0.1 million for the year ended december 31 , 2009 due to awards issued to retain key employees and awards issued in connection with our acquisitions . our consulting and professional fees increased in 2010 primarily related to higher legal and technology‑related costs . depreciation and amortization expense increased in 2010 primarily because we recorded $ 47.3 million of intangible assets in connection with our acquisitions , resulting in $ 11.0 million of amortization expense . acquisition‑related for the years ended december 31 , 2010 and 2011 , our acquisition-related costs were $ 203.2 million net expense and $ 4.5 million net gain , respectively . there were no acquisition related costs for the year ended december 31 , 2009. the fluctuation in the costs were directly related to acquisitions in the period . during 2011 , we acquired several
| cash provided by operating activities cash provided by operating activities primarily consists of our net loss adjusted for certain non-cash items , including depreciation and amortization , stock‑based compensation , deferred income taxes , acquisition‑related expenses , gain on return of common stock and the effect of changes in working capital and other items . 53 our current merchant partner arrangements are structured such that we collect payments at the time our customers purchase groupons and make payments to most of our merchant partners at a subsequent date . under the redemption payment model , which we utilize in most of our international operations in conformity with local market practice , merchant partners are not paid until the customer redeems the groupon that has been purchased . if a customer does not redeem the groupon under this payment model , we retain all of the gross billings for the groupon purchase . the redemption model generally improves our overall cash flow because we do not pay our merchant partners until the customer redeems the groupon . under our alternative merchant partner payment model , we pay our merchant partners in installments over a period of generally sixty days for all groupons purchased . under this payment model , merchant partners are paid regardless of whether the groupon is redeemed . as a result of these payment models , we experience swings in merchant payables that can cause volatility in working capital levels and impact cash balances more or less than our operating income or loss would indicate . in general , merchant payable balances have increased in line with the growth of our overall business , which has created additional cash flow from operations . furthermore , growth in our international operations has accelerated cash flow due to more favorable payment terms with our merchant partners . to the extent we offer our merchant partners more favorable or accelerated payment terms or our gross billings do not continue to grow in the future , our cash flow could be adversely impacted .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash provided by operating activities cash provided by operating activities primarily consists of our net loss adjusted for certain non-cash items , including depreciation and amortization , stock‑based compensation , deferred income taxes , acquisition‑related expenses , gain on return of common stock and the effect of changes in working capital and other items . 53 our current merchant partner arrangements are structured such that we collect payments at the time our customers purchase groupons and make payments to most of our merchant partners at a subsequent date . under the redemption payment model , which we utilize in most of our international operations in conformity with local market practice , merchant partners are not paid until the customer redeems the groupon that has been purchased . if a customer does not redeem the groupon under this payment model , we retain all of the gross billings for the groupon purchase . the redemption model generally improves our overall cash flow because we do not pay our merchant partners until the customer redeems the groupon . under our alternative merchant partner payment model , we pay our merchant partners in installments over a period of generally sixty days for all groupons purchased . under this payment model , merchant partners are paid regardless of whether the groupon is redeemed . as a result of these payment models , we experience swings in merchant payables that can cause volatility in working capital levels and impact cash balances more or less than our operating income or loss would indicate . in general , merchant payable balances have increased in line with the growth of our overall business , which has created additional cash flow from operations . furthermore , growth in our international operations has accelerated cash flow due to more favorable payment terms with our merchant partners . to the extent we offer our merchant partners more favorable or accelerated payment terms or our gross billings do not continue to grow in the future , our cash flow could be adversely impacted .
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Suspicious Activity Report : csoi is the consolidated operating ( loss ) income of our two segments , north america and international , adjusted for acquisition-related costs and stock-based compensation expense . acquisition-related costs are non-recurring , non-cash items related to certain of our acquisitions . stock-based compensation expense is a non-cash item . as reported under u.s. gaap , we do not allocate stock‑based 40 compensation and acquisition‑related expense to our segments . we use csoi to allocate resources and evaluate performance internally . csoi is a non‑gaap financial measure . for further information and a reconciliation to the most applicable financial measure under u.s. gaap , refer to our discussion under non-gaap financial measures in the `` results of operations `` section . free cash flow . free cash flow , which is reconciled to `` net cash provided by operating activities , `` is cash flow from operations reduced by `` purchases of property and equipment . `` we use free cash flow , and ratios based on it , to conduct and evaluate our business because , although it is similar to cash flow from operations , we believe it typically will present a more appropriate measure of cash flows as purchases of fixed assets , software developed for internal use and website development costs are a necessary component of ongoing operations . free cash flow is a non-gaap financial measure . for further information and a reconciliation to the most applicable financial measure under u.s. gaap , refer to our discussion under non-gaap financial measures in the `` results of operations `` section . operating metrics gross billings . this metric represents the gross amounts collected from customers for groupons sold , excluding any applicable taxes and net of estimated refunds . we consider this metric to be an important indicator of our growth and business performance as it is a proxy for the dollar volume of transactions through our marketplace , net of tax and reserves . tracking gross billings also allows us to track changes in the percentage of gross billings that we are able to retain after payments to our merchant partners . gross billings are not equivalent to revenues or any other financial metric presented in our consolidated financial statements . active customers . we define active customers as unique individuals that have purchased groupons during the trailing twelve months . we consider this metric to be an important indicator of our business performance as it helps us to understand how the number of individuals purchasing groupons is trending . gross billings per average active customer . this metric represents the trailing twelve months gross billings generated per average active customer . this metric is presented as the total gross billings generated in the trailing twelve months , divided by the average number of active customers in such time period . although we believe total gross billings , not trailing twelve months gross billings per average active customer , is a better indication of the overall growth of our marketplace over time , trailing twelve months gross billings per average active customer provides an opportunity to evaluate whether our growth is primarily driven by growth in total customers or in spend per customer in any given period . revenue per average active customer . this metric represents the trailing twelve months revenue generated per average active customer . this metric is presented as the total revenue generated in the trailing twelve months , divided by the average number of active customers in such time period . although we believe total revenue , not trailing twelve months revenue per average active customer , is a better indication of the overall growth of our business , trailing twelve month revenue per average active customer provides an opportunity to evaluate whether our average customer is purchasing deals with a higher or lower commission profile to groupon . replace_table_token_6_th _ * not available ( 1 ) reflects the gross amounts collected from customers for groupons sold , excluding any applicable taxes and net of estimated refunds , in the applicable period . ( 2 ) reflects the total number of unique customers who have purchased groupons during the trailing twelve months . ( 3 ) reflects the total gross billings generated in the trailing twelve months per average active customer in the applicable period . 41 ( 4 ) reflects the total revenue generated in the trailing twelve months per average active customer in the applicable period . factors affecting our performance customer acquisition costs . we must continue to acquire and retain customers who purchase groupons in order to increase revenue and achieve profitability . if consumers do not perceive our groupon offerings to be of high value and quality , or if we fail to introduce new or more relevant deals , we may not be able to acquire or retain customers . in our limited operating history , we have not incurred significant marketing or other expense on initiatives designed to re-activate customers or increase the level of purchases by our existing customers . if such expenditures or initiatives become necessary to maintain a desired level of activity in our marketplace , our business and profitability could be adversely affected . deal sourcing and quality . we consider our merchant partner relationships to be a vital part of our business model . we depend on our ability to attract and retain merchants that are prepared to offer products or services on compelling terms . we do not have long-term arrangements to guarantee availability of deals that offer attractive quality , value and variety to consumers or favorable payment terms to us . in light of our objective to promote variety in our daily deals , our general practice to date has been to limit repeat merchants . story_separator_special_tag our customer loyalty and rewards program also contributed significantly to our increase in marketing expense as many of these programs were not put in place until the second half of 2010. in addition , we increased our marketing staff to support our global marketing efforts . for the year ended december 31 , 2010 , marketing expense as a percentage of revenue for the north america and international segments was 61.7 % and 148.4 % , respectively . in 2010 , we made significant marketing investments in our international segment to accelerate growth and establish our presence in new markets . as a result , we experienced much larger operating losses for our international segment than we did 47 for our north america segment . selling , general and administrative for the years ended december 31 , 2009 , 2010 and 2011 , our selling general and administrative expense was $ 5.8 million , $ 196.6 million and $ 821.0 million , respectively . the increases in selling , general and administrative expense were principally related to the build out of our global salesforce , investments in technology and investments in our corporate infrastructure necessary to support our current and anticipated growth . for the year ended december 31 , 2011 , selling , general and administrative expense as a percentage of revenue was 51.0 % , as compared to 62.8 % for the year ended december 31 , 2010. selling , general and administrative expense as a percentage of revenue has decreased from the prior year as the productivity of our sales force continues to improve . we are continuously refining our sales management and selling processes and additionally we are introducing new products and services facilitating deeper customer and merchant partner engagement . over time , as our operations mature in a greater percentage of our markets , we expect that our selling , general and administrative expense will continue to decrease as a percentage of revenue . 2011 compared to 2010. in 2011 , our selling , general and administrative expense increased by $ 624.4 million to $ 821.0 million , an increase of 317.5 % . the increase in selling , general and administrative expense for the year ended december 31 , 2011 compared to the year ended december 31 , 2010 was due to increases in wages and benefits , consulting and professional fees and depreciation and amortization expenses . additionally , selling , general and administrative expenses as a percentage of revenue for our international segment were significantly higher than for our north america segment , which contributed to larger operating losses in our international segment . this was primarily a result of the build out of our international operations , including our salesforce , to support future revenue growth . wages and benefits ( excluding stock‑based compensation ) increased by $ 354.9 million to $ 433.4 million in the year ended december 31 , 2011 as we continued to add sales force and administrative staff to support our business . stock‑based compensation costs also increased to $ 89.9 million for the year ended december 31 , 2011 from $ 35.9 million for the year ended december 31 , 2010 due to awards issued to retain key employees and awards issued in connection with our acquisitions . our consulting and professional fees increased in 2011 primarily related to higher legal and technology‑related costs . depreciation and amortization expense increased in 2011 primarily because we recorded $ 9.9 million of intangible assets in connection with our acquisitions in 2011 , resulting in an increase of amortization expense of $ 2.8 million . in addition , recognizing a full year of amortization for intangibles recorded in 2010 in connections with acquisitions resulted in an additional $ 10.5 million of amortization . 2010 compared to 2009. in 2010 , our selling , general and administrative expense increased by $ 190.8 million to $ 196.6 million , an increase of 3,262 % . the increase in selling , general and administrative expense for the year ended december 31 , 2010 compared to the year ended december 31 , 2009 was due to increases in wages and benefits , consulting and professional fees and depreciation and amortization expenses . additionally , the selling , general and administrative expenses as a percentage of gross billings for our international segment were significantly higher than for our north america segment , which contributed to larger operating losses in our international segment . this was primarily a result of the build out of our international operations , including our sales force , to support future revenue growth . we expect that over time selling , general and administrative expenses for our international segment will decline as a percentage of gross billings for the segment . wages and benefits ( excluding stock‑based compensation ) increased by $ 75.2 million to $ 78.6 million in the year ended december 31 , 2010 as we continued to add sales and administrative staff to support our business . stock‑based compensation costs also increased to $ 35.9 million for the year ended december 31 , 2010 from $ 0.1 million for the year ended december 31 , 2009 due to awards issued to retain key employees and awards issued in connection with our acquisitions . our consulting and professional fees increased in 2010 primarily related to higher legal and technology‑related costs . depreciation and amortization expense increased in 2010 primarily because we recorded $ 47.3 million of intangible assets in connection with our acquisitions , resulting in $ 11.0 million of amortization expense . acquisition‑related for the years ended december 31 , 2010 and 2011 , our acquisition-related costs were $ 203.2 million net expense and $ 4.5 million net gain , respectively . there were no acquisition related costs for the year ended december 31 , 2009. the fluctuation in the costs were directly related to acquisitions in the period . during 2011 , we acquired several
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1,072 | this platform enables a user via a single “ identity ” to access and utilize services and features regardless of how the user is connected to the internet , whether it be from a desktop device or a mobile device . in january 2012 , our direct sales representatives began selling our hosted telecommunications products and services . we have experienced significant growth in our network services revenue quarter-over-quarter . revenues recognized during the three months ended march 31 , 2012 , june 30 , 2012 , september 30 , 2012 and december 31 , 2012 were $ 75,000 , $ 168,000 , $ 235,000 , and $ 327,000 , respectively . in june 2012 , we began selling broadband internet connection services and during the year ended december 31 , 2012 , the company generated approximately $ 26,000 in revenue from these services . as of december 31 , 2012 , our backlog is $ 2,374,000 as compared to $ 155,000 at december 31 , 2011. backlog represents contracts signed with no service or payment provided at december 31 , 2012 . 23 restructuring and other charges in july 2011 , we initiated plans to restructure and reduce costs in our operations as a result of the continued lack of profitability and other challenges in our seminar sales channel for our storesonline segment . restructurings began in the third quarter of 2011 in an effort to better position our company for long-term growth , future profitability , greater competitiveness and improved efficiency across our business . actions taken in connection with our restructuring plan include the suspension of our direct mail marketing campaigns and sales of our products and services through our storesonline seminar channel , refinement of our product portfolio focused towards recurring subscription-based products and services , and redeployment of our sales and marketing resources in an effort to increase our direct sales , inside sales , and online sales channels . through these initiatives we incurred aggregate pre-tax restructuring charges and transition expenses of approximately $ 1,259,000 during the year ended december 31 , 2011 , of which approximately $ 1,050,000 was recorded for inventory write-downs , unused direct-response advertising , and intangible asset impairment . the remaining amount relates to the abandonment of an operating lease agreement . there were no restructuring expenses for the year ended december 31 , 2012. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and necessarily included certain estimates and judgments made by management . the following is a list of accounting policies that we believe are the most critical in understanding our consolidated financial position , results of operations or cash flows and that may require management to make subjective or complex judgments about matters that are inherently uncertain . revenue recognition in general , we recognize revenue when all of the following conditions are satisfied : ( 1 ) there is persuasive evidence of an arrangement ; ( 2 ) the product or service has been provided to the customer ; ( 3 ) the amount of fees to be paid by the customer is fixed or determinable ; and ( 4 ) the collection of our fees is probable . we recognize revenue from our web services and network services segments on an accrual basis and revenue from our storesonline segment on a cash basis . specifics to revenue category are as follows : software licenses and dvd training courses sold under eptas are recognized as revenue upon receipt of cash from customers and not at the time of sale . accounting guidance requires revenue to be deferred until customer payments are received as collection of the original principal balance is deemed not probable based on historical collection rates . we enter into agreements where revenue is derived from multiple deliverables including any mix of products and or services . for these arrangements , we determine whether the delivered item ( s ) has value to the customer on a stand-alone basis , and in the event the arrangement includes a general right of return relative to the delivered item ( s ) , whether the delivery or performance of the undelivered item ( s ) is considered probable and substantially in our control . if these criteria are met , the arrangement consideration is allocated to the separate units of accounting based on each unit 's relative selling price . if these criteria are not met , the arrangement is accounted for as a single unit of accounting which would result in revenue being recognized ratably over the contract term or deferred until the earlier of when such criteria are met or when the last undelivered element is delivered . the amount of product and services revenue recognized for arrangements with multiple deliverables is impacted by the allocation of arrangement consideration to the deliverables in the arrangement based on the relative selling prices . in determining our selling prices , we apply the selling price hierarchy using vendor specific objective evidence ( vsoe ) when available , third-party evidence of selling price ( “ tpe ” ) if vsoe does not exist , and best estimated selling price ( “ besp ” ) if neither vsoe nor tpe is available . we are typically not able to determine vsoe on our products and services . vsoe of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for a deliverable when sold separately . we are typically not able to determine tpe for our products or services . tpe is determined based on competitor prices for similar deliverables when sold separately . generally , our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality is difficult to obtain . furthermore , we are unable to reliably determine what similar competitor products ' selling prices are on a stand-alone basis . story_separator_special_tag selling and marketing expenses decreased 99 % or $ 17,716,000 , to $ 244,000 for the year ended december 31 , 2012 as compared to $ 17,960,000 for the year ended december 31 , 2011. selling and marketing expense as a percentage of revenue decreased to 2 % in the current year from 39 % in prior year . the decrease in total selling and marketing expenses as well as selling and marketing expense as a percentage of revenue are primarily due to the suspension of direct mail seminars in july 2011 , which resulted in a more significant reduction in selling and marketing expenses than the reduction in revenue as a result of the continuation of revenue received on the collection of principal on epta contracts . the selling and marketing expenses associated getting attendees to the seminars were a significant part of historical selling and marketing expenses . general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel , legal , accounting and other professionals , finance company service fees , and other general corporate expenses . general and administrative expenses decreased 31 % or $ 3,118,000 , to $ 6,890,000 for the year ended december 31 , 2012 as compared to $ 10,008,000 for the year ended december 31 , 2011. the decrease is primarily due to a reduction in payroll and related expenses , accounting fees , legal , and servicing fees on our epta contracts . as of december 31 , 2012 , the company had 20 employees in customer support , and 27 in finance , legal and business development , collections , purchasing and other general administration . however , as of december 31 , 2011 , the company had 42 employees in customer support , and 31 in finance , legal and business development , collections , purchasing and other general administration . research and development research and development expenses primarily consist of payroll and related expenses , related to the development of new products and services for storesonline customers . research and development expenses decreased 62 % or $ 703,000 , to $ 437,000 for the year ended december 31 , 2012 as compared to $ 1,140,000 for the year ended december 31 , 2011. the decrease was primarily attributable to a decrease in our engineering head count dedicated to this segment . as of december 31 , 2012 , the company had 19 employees in engineering and it support . however , as of december 31 , 2011 , the company had 22 employees in engineering and it support . in addition to the overall reduction in headcount , more focus was placed on the development and improvement to our hosted telecommunications products and services during 2012. other income other income primarily relates to epta contracts , which generally carry an 18 % simple interest rate . other income decreased 59 % or $ 2,755,000 , to $ 1,934,000 for the year ended december 31 , 2012 as compared to $ 4,689,000 for the year ended december 31 , 2011. this decrease is primarily due to the decrease in outstanding epta receivables as cash is collected and uncollectable accounts are written off . operating results of crexendo web services segment ( in thousands ) replace_table_token_8_th 30 year ended december 31 , 2012 compared to year ended december 31 , 2011 revenue crexendo web services segment revenue increased 8 % or $ 190,000 , to $ 2,505,000 for the year ended december 31 , 2012 as compared to $ 2,315,000 for the year ended december 31 , 2011. the increase in revenue from the prior year is primarily due to an increase in direct sales representatives , which increased from an average of 8 direct sales representatives for the year ended december 31 , 2011 to an average of 17 sales representatives for the year ended december 31 , 2012. revenue from crexendo web services is generated primarily through search engine optimization services , link building , paid search management services , conversion rate optimization services , and website design and development services . a substantial portion of crexendo web services revenue is generated through six to twelve month service contracts . as such , crexendo web services revenues will initially be seen through fulfillment of our backlog . below is a table which displays the crexendo web services revenue backlog as of december 31 , 2012 and 2011 , which is expected to be recognized as revenue within the next twelve months ( in thousands ) : crexendo web services backlog as of december 31 , 2012 $ 1,135 crexendo web services backlog as of december 31 , 2011 $ 1,142 cost of revenue cost of revenue consists primarily of salaries and outsourcing fees related to fulfillment of our web services . cost of revenue increased 3 % or $ 58,000 , to $ 1,859,000 for the year ended december 31 , 2012 as compared to $ 1,801,000 for the year ended december 31 , 2011. selling and marketing selling and marketing expenses consist primarily of salaries and benefits , as well as advertising expenses . selling and marketing expense decreased 31 % or $ 814,000 , to $ 1,846,000 for the year ended december 31 , 2012 as compared to $ 2,660,000 for the year ended december 31 , 2011. the decrease was primarily attributable to a decrease in sales representatives and other marketing activity solely focused on crexendo web services sales with the increased focus on selling hosted telecommunications products and services starting in january 2012. general and administrative general and administrative expenses consist of payroll and related expenses for administrative personnel . general and administrative expenses increased 99 % or $ 1,822,000 , to $ 3,654,000 for the year ended december 31 , 2012 as compared to $ 1,832,000 for the year ended december 31 , 2011. general and administrative expenses for the year ended december 31
| cash and cash equivalents cash and cash equivalents decreased 14 % or $ 1,218,000 , to $ 7,440,000 for the year ended december 31 , 2012 as compared to $ 8,658,000 for the year ended december 31 , 2011. for the year ended december 31 , 2012 , we used cash flows for operating activities of $ 446,000 compared to using cash flows for operating activities of $ 1,648,000 for the year ended december 31 , 2011 . 33 trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , decreased 78 % or $ 12,079,000 , to $ 3,438,000 for the year ended december 31 , 2012 as compared to $ 15,517,000 for the year ended december 31 , 2011. long-term trade receivables , net of allowance for doubtful accounts , decreased 94 % or $ 5,702,000 , to $ 395,000 for the year ended december 31 , 2012 as compared to $ 6,097,000 for the year ended december 31 , 2011. we offered our customers an installment contract with payment terms between 24 and 36 months , as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . trade receivables will continue to decline as cash is collected on epta contracts . accounts payable accounts payable decreased 64 % or $ 735,000 , to $ 418,000 for the year ended december 31 , 2012 as compared to $ 1,153,000 for the year ended december 31 , 2011. the aging of accounts payable as of december 31 , 2012 and 2011 was generally within our vendors ' terms of payment . contractual obligations the following table summarizes our significant contractual obligations as of december 31 , 2012 : replace_table_token_10_th — ( 1 ) payments are included in the period in which they are contractually required to be made . actual payments may be made prior to the contractually required date .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents cash and cash equivalents decreased 14 % or $ 1,218,000 , to $ 7,440,000 for the year ended december 31 , 2012 as compared to $ 8,658,000 for the year ended december 31 , 2011. for the year ended december 31 , 2012 , we used cash flows for operating activities of $ 446,000 compared to using cash flows for operating activities of $ 1,648,000 for the year ended december 31 , 2011 . 33 trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , decreased 78 % or $ 12,079,000 , to $ 3,438,000 for the year ended december 31 , 2012 as compared to $ 15,517,000 for the year ended december 31 , 2011. long-term trade receivables , net of allowance for doubtful accounts , decreased 94 % or $ 5,702,000 , to $ 395,000 for the year ended december 31 , 2012 as compared to $ 6,097,000 for the year ended december 31 , 2011. we offered our customers an installment contract with payment terms between 24 and 36 months , as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . trade receivables will continue to decline as cash is collected on epta contracts . accounts payable accounts payable decreased 64 % or $ 735,000 , to $ 418,000 for the year ended december 31 , 2012 as compared to $ 1,153,000 for the year ended december 31 , 2011. the aging of accounts payable as of december 31 , 2012 and 2011 was generally within our vendors ' terms of payment . contractual obligations the following table summarizes our significant contractual obligations as of december 31 , 2012 : replace_table_token_10_th — ( 1 ) payments are included in the period in which they are contractually required to be made . actual payments may be made prior to the contractually required date .
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Suspicious Activity Report : this platform enables a user via a single “ identity ” to access and utilize services and features regardless of how the user is connected to the internet , whether it be from a desktop device or a mobile device . in january 2012 , our direct sales representatives began selling our hosted telecommunications products and services . we have experienced significant growth in our network services revenue quarter-over-quarter . revenues recognized during the three months ended march 31 , 2012 , june 30 , 2012 , september 30 , 2012 and december 31 , 2012 were $ 75,000 , $ 168,000 , $ 235,000 , and $ 327,000 , respectively . in june 2012 , we began selling broadband internet connection services and during the year ended december 31 , 2012 , the company generated approximately $ 26,000 in revenue from these services . as of december 31 , 2012 , our backlog is $ 2,374,000 as compared to $ 155,000 at december 31 , 2011. backlog represents contracts signed with no service or payment provided at december 31 , 2012 . 23 restructuring and other charges in july 2011 , we initiated plans to restructure and reduce costs in our operations as a result of the continued lack of profitability and other challenges in our seminar sales channel for our storesonline segment . restructurings began in the third quarter of 2011 in an effort to better position our company for long-term growth , future profitability , greater competitiveness and improved efficiency across our business . actions taken in connection with our restructuring plan include the suspension of our direct mail marketing campaigns and sales of our products and services through our storesonline seminar channel , refinement of our product portfolio focused towards recurring subscription-based products and services , and redeployment of our sales and marketing resources in an effort to increase our direct sales , inside sales , and online sales channels . through these initiatives we incurred aggregate pre-tax restructuring charges and transition expenses of approximately $ 1,259,000 during the year ended december 31 , 2011 , of which approximately $ 1,050,000 was recorded for inventory write-downs , unused direct-response advertising , and intangible asset impairment . the remaining amount relates to the abandonment of an operating lease agreement . there were no restructuring expenses for the year ended december 31 , 2012. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and necessarily included certain estimates and judgments made by management . the following is a list of accounting policies that we believe are the most critical in understanding our consolidated financial position , results of operations or cash flows and that may require management to make subjective or complex judgments about matters that are inherently uncertain . revenue recognition in general , we recognize revenue when all of the following conditions are satisfied : ( 1 ) there is persuasive evidence of an arrangement ; ( 2 ) the product or service has been provided to the customer ; ( 3 ) the amount of fees to be paid by the customer is fixed or determinable ; and ( 4 ) the collection of our fees is probable . we recognize revenue from our web services and network services segments on an accrual basis and revenue from our storesonline segment on a cash basis . specifics to revenue category are as follows : software licenses and dvd training courses sold under eptas are recognized as revenue upon receipt of cash from customers and not at the time of sale . accounting guidance requires revenue to be deferred until customer payments are received as collection of the original principal balance is deemed not probable based on historical collection rates . we enter into agreements where revenue is derived from multiple deliverables including any mix of products and or services . for these arrangements , we determine whether the delivered item ( s ) has value to the customer on a stand-alone basis , and in the event the arrangement includes a general right of return relative to the delivered item ( s ) , whether the delivery or performance of the undelivered item ( s ) is considered probable and substantially in our control . if these criteria are met , the arrangement consideration is allocated to the separate units of accounting based on each unit 's relative selling price . if these criteria are not met , the arrangement is accounted for as a single unit of accounting which would result in revenue being recognized ratably over the contract term or deferred until the earlier of when such criteria are met or when the last undelivered element is delivered . the amount of product and services revenue recognized for arrangements with multiple deliverables is impacted by the allocation of arrangement consideration to the deliverables in the arrangement based on the relative selling prices . in determining our selling prices , we apply the selling price hierarchy using vendor specific objective evidence ( vsoe ) when available , third-party evidence of selling price ( “ tpe ” ) if vsoe does not exist , and best estimated selling price ( “ besp ” ) if neither vsoe nor tpe is available . we are typically not able to determine vsoe on our products and services . vsoe of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for a deliverable when sold separately . we are typically not able to determine tpe for our products or services . tpe is determined based on competitor prices for similar deliverables when sold separately . generally , our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality is difficult to obtain . furthermore , we are unable to reliably determine what similar competitor products ' selling prices are on a stand-alone basis . story_separator_special_tag selling and marketing expenses decreased 99 % or $ 17,716,000 , to $ 244,000 for the year ended december 31 , 2012 as compared to $ 17,960,000 for the year ended december 31 , 2011. selling and marketing expense as a percentage of revenue decreased to 2 % in the current year from 39 % in prior year . the decrease in total selling and marketing expenses as well as selling and marketing expense as a percentage of revenue are primarily due to the suspension of direct mail seminars in july 2011 , which resulted in a more significant reduction in selling and marketing expenses than the reduction in revenue as a result of the continuation of revenue received on the collection of principal on epta contracts . the selling and marketing expenses associated getting attendees to the seminars were a significant part of historical selling and marketing expenses . general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel , legal , accounting and other professionals , finance company service fees , and other general corporate expenses . general and administrative expenses decreased 31 % or $ 3,118,000 , to $ 6,890,000 for the year ended december 31 , 2012 as compared to $ 10,008,000 for the year ended december 31 , 2011. the decrease is primarily due to a reduction in payroll and related expenses , accounting fees , legal , and servicing fees on our epta contracts . as of december 31 , 2012 , the company had 20 employees in customer support , and 27 in finance , legal and business development , collections , purchasing and other general administration . however , as of december 31 , 2011 , the company had 42 employees in customer support , and 31 in finance , legal and business development , collections , purchasing and other general administration . research and development research and development expenses primarily consist of payroll and related expenses , related to the development of new products and services for storesonline customers . research and development expenses decreased 62 % or $ 703,000 , to $ 437,000 for the year ended december 31 , 2012 as compared to $ 1,140,000 for the year ended december 31 , 2011. the decrease was primarily attributable to a decrease in our engineering head count dedicated to this segment . as of december 31 , 2012 , the company had 19 employees in engineering and it support . however , as of december 31 , 2011 , the company had 22 employees in engineering and it support . in addition to the overall reduction in headcount , more focus was placed on the development and improvement to our hosted telecommunications products and services during 2012. other income other income primarily relates to epta contracts , which generally carry an 18 % simple interest rate . other income decreased 59 % or $ 2,755,000 , to $ 1,934,000 for the year ended december 31 , 2012 as compared to $ 4,689,000 for the year ended december 31 , 2011. this decrease is primarily due to the decrease in outstanding epta receivables as cash is collected and uncollectable accounts are written off . operating results of crexendo web services segment ( in thousands ) replace_table_token_8_th 30 year ended december 31 , 2012 compared to year ended december 31 , 2011 revenue crexendo web services segment revenue increased 8 % or $ 190,000 , to $ 2,505,000 for the year ended december 31 , 2012 as compared to $ 2,315,000 for the year ended december 31 , 2011. the increase in revenue from the prior year is primarily due to an increase in direct sales representatives , which increased from an average of 8 direct sales representatives for the year ended december 31 , 2011 to an average of 17 sales representatives for the year ended december 31 , 2012. revenue from crexendo web services is generated primarily through search engine optimization services , link building , paid search management services , conversion rate optimization services , and website design and development services . a substantial portion of crexendo web services revenue is generated through six to twelve month service contracts . as such , crexendo web services revenues will initially be seen through fulfillment of our backlog . below is a table which displays the crexendo web services revenue backlog as of december 31 , 2012 and 2011 , which is expected to be recognized as revenue within the next twelve months ( in thousands ) : crexendo web services backlog as of december 31 , 2012 $ 1,135 crexendo web services backlog as of december 31 , 2011 $ 1,142 cost of revenue cost of revenue consists primarily of salaries and outsourcing fees related to fulfillment of our web services . cost of revenue increased 3 % or $ 58,000 , to $ 1,859,000 for the year ended december 31 , 2012 as compared to $ 1,801,000 for the year ended december 31 , 2011. selling and marketing selling and marketing expenses consist primarily of salaries and benefits , as well as advertising expenses . selling and marketing expense decreased 31 % or $ 814,000 , to $ 1,846,000 for the year ended december 31 , 2012 as compared to $ 2,660,000 for the year ended december 31 , 2011. the decrease was primarily attributable to a decrease in sales representatives and other marketing activity solely focused on crexendo web services sales with the increased focus on selling hosted telecommunications products and services starting in january 2012. general and administrative general and administrative expenses consist of payroll and related expenses for administrative personnel . general and administrative expenses increased 99 % or $ 1,822,000 , to $ 3,654,000 for the year ended december 31 , 2012 as compared to $ 1,832,000 for the year ended december 31 , 2011. general and administrative expenses for the year ended december 31
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1,073 | results from a preclinical proof-of-concept study showed that in rabbit models for vax-xp compared to more than 30 different pneumococcal serotypes , including all of those contained in prevnar 13 , the vax-xp igg immune responses were superior to polysaccharide-only serotypes and comparable to prevnar 13 in the common 13 strains . advanced and published data for vax-a1 program . we advanced vax-a1 , our novel conjugate vaccine candidate designed to prevent infections from group a strep , a human pathogen causing pharyngitis , or strep throat , and certain severe invasive infections such as sepsis , toxic shock syndrome and necrotizing fasciitis . based on the progress of the program , and consistent with 99 target timelines , we nominated the final vax-a1 vaccine candidate in the first quarter of 2021. in january 2021 , we announced the publication of preclinical data in the journal infectious microbes & diseases , which showed that vax-a1 demonstrated meaningful protection against systemic and soft tissue infection after challenge with no evidence of cross-reactivity with human tissue . additionally , at the end of 2020 , we completed the initial funding period under our agreement with carb-x and are now in the process of submitting our proposal to carb-x for the next funding period of the agreement . completed initial public offering ( ipo ) and series d financing . in june 2020 , we completed our ipo of 17,968,750 shares of common stock , which included the full exercise of the underwriters ' option to purchase 2,343,750 additional shares , at a public offering price of $ 16.00 per share , resulting in aggregate net proceeds of $ 264.0 million . in march 2020 , we completed our series d convertible preferred stock financing , raising aggregate net proceeds of $ 109.9 million . strengthened leadership team and advisory board with key appointments . during 2020 , we added several key leaders , including andrew guggenhime , president and chief financial officer , and appointed halley gilbert to our board of directors , each bringing over 20 years of biotechnology leadership experience . in 2021 , we added william hausdorff , phd to our scientific advisory board . dr. hausdorff has worked on the development , clinical evaluation , registration , implementation and post-marketing assessment of a variety of vaccines over the past 30 years . since 2018 , dr. hausdorff has served as the lead , public health value propositions for vaccines at path , a global organization that works to accelerate health equity by bringing together public institutions , businesses , social enterprises , and investors to solve the world 's most pressing health challenges . prior to joining path , he worked for 12 years at glaxosmithkline ( gsk ) vaccines , eight years at wyeth vaccines and was previously at the centers for disease control and prevention . in his roles at gsk vaccines and wyeth vaccines , he was involved in the development of synflorix ® and prevnar 13 ® , respectively . dr. hausdorff received his phd in biology from the johns hopkins university and his ba in biology from carleton college . since our inception in november 2013 , we have devoted substantially all of our resources to performing research and development , undertaking preclinical studies and enabling manufacturing activities in support of our product development efforts , acquiring and developing our technology and vaccine candidates , organizing and staffing our company , performing business planning , establishing our intellectual property portfolio and raising capital to support and expand such activities . we do not have any products approved for sale and have not generated any revenue from product sales . to date , we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock and our ipo . through december 31 , 2020 , we have raised approximately $ 569.5 million in gross proceeds from the sale of our capital stock . we will continue to require additional capital to develop our vaccine candidates and fund operations for the foreseeable future . accordingly , until such time as we can generate significant revenue from sales of our vaccine candidates , if ever , we expect to finance our cash needs through public or private equity or debt financings , third-party ( including government ) funding and marketing and distribution arrangements , as well as other collaborations , strategic alliances and licensing arrangements , or any combination of these approaches . we have incurred net losses in each year since inception and expect to continue to incur net losses in the foreseeable future . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending in large part on the timing of our preclinical studies , clinical trials and manufacturing activities , and our expenditures on other research and development activities . our net losses were $ 89.2 million and $ 50.3 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 198.6 million . as of december 31 , 2020 , we had cash and cash equivalents of $ 386.2 million , which we believe will be sufficient to fund our operating expenses and capital expenditure requirements through at least the completion and announcement of the topline data from our phase 1/2 clinical proof-of-concept study of vax-24 in adults , which we expect between late 2022 and early 2023 , and to continue to advance our pipeline of other vaccine candidates . we do not expect to generate any revenue from commercial product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our vaccine candidates , which 100 we expect will take a number of years . story_separator_special_tag grant income in july 2019 , carb-x awarded us up to $ 1.6 million in initial funding to advance the development of a universal vaccine to prevent infections caused by group a strep bacteria . in july 2020 , the carb-x agreement was amended to increase the funding percentage for reimbursable expenses during the initial funding period from 50 % to 90 % . as a result , the initial funding amount increased from $ 1.6 million to $ 2.7 million . income is recognized as we incur and pay qualifying expenses over a period that ends on december 31 , 2020. qualifying expenses under this funding arrangement are recorded as a receivable when we have both incurred and paid the expenses . we recognized $ 2.5 million and $ 0.2 million in grant income for funding research and development under this award during the years ended december 31 , 2020 and 2019 , respectively . no grant income was recognized for the year ended december 31 , 2018 because the grant was not awarded until 2019. grant income is included as a component of other income ( expense ) , net in the statements of operations and comprehensive loss . 105 results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the periods presented : replace_table_token_1_th * not meaningful operating expenses research and development expenses the following table summarizes our research and development expenses for the periods presented : replace_table_token_2_th ( 1 ) includes expenses for third-party manufacturing and outsourced contract services , including preclinical studies and outsourced assays . ( 2 ) includes travel-related expenses , warrant expense and other miscellaneous office expenses . research and development expenses increased by $ 28.0 million , or 61.3 % , in 2020 compared to 2019. the increase was primarily attributable to an increase of $ 23.1 million in product and clinical development expenses mainly related to our lead vaccine candidate , vax-24 , driven by increases of $ 18.6 million in outsourced manufacturing activities and $ 4.5 million in outsourced research services due to the ramp-up of the ecrm and polysaccharide gmp campaigns and conjugation and drug product activities in preparation for our anticipated ind application submission between january and june 2022 and phase 1/2 clinical study initiation thereafter . the increase in personnel-related expenses of $ 4.0 million was primarily related to the increase in the number of 106 employees to support our expan sion in research and development activities and higher stock-based compensation expense resulting from an increase in the number of options granted during the year and an increase in the fair value of our common stock affecting the valuation of new option grants . general and administrative expenses general and administrative expenses increased by $ 7.5 million , or 87.4 % , in 2020 compared to 2019. the increase was mainly due to increases of $ 3.9 million in personnel-related costs related to higher stock-based compensation expense resulting from an increase in the number of options granted during the year and an increase in the fair value of our common stock affecting the valuation of new option grants , as well as growth in the number of employees in our general and administrative functions , $ 1.6 million in professional and consulting services resulting from increased legal expenses and consulting costs , and $ 1.7 million in other expenses primarily due to an increase in directors and officers insurance expense as a result of being a public company . other income ( expense ) , net other income ( expense ) , net decreased by $ 3.5 million , or 90.6 % , in 2020 compared to 2019. during 2019 , we recognized a $ 3.2 million gain resulting from a change in the fair value of the redeemable convertible preferred stock tranche liability , which was settled in december 2019 , and there was no such gain recognized during 2020. other income ( expense ) , net also decreased due to an increase in foreign currency losses of $ 2.2 million resulting from the depreciation of the u.s. dollar against the swiss franc . these decreases were partially offset by an increase of $ 2.2 million in grant income from the carb-x program , which commenced in july 2019. comparison of the years ended december 31 , 2019 and 2018 the following table summarizes our results of operations for the periods presented : replace_table_token_3_th * not meaningful 107 research and development expenses the following table summarizes our research and development expenses for the periods presented : replace_table_token_4_th ( 1 ) includes expenses for third-party manufacturing and outsourced contract services , including preclinical studies and outsourced assays . ( 2 ) includes travel-related expenses , warrant expense and other miscellaneous office expenses . research and development expenses increased by $ 15.5 million , or 51.3 % , in 2019 compared to 2018. the increase was primarily attributable to an increase of $ 13.2 million in product and clinical development expenses mainly related to our lead vaccine candidate , vax-24 , driven by an $ 11.5 million increase in costs related to outsourced manufacturing activities and an $ 1.8 million increase in contracted research services . general and administrative expenses general and administrative expenses increased by $ 3.2 million , or 58.6 % , in 2019 compared to 2018. the increase was primarily attributable to increases in personnel-related costs of $ 1.7 million due to increase in the number of employees in our general and administrative functions , employee development and stock-based compensation expenses , and audit , tax and legal fees of $ 1.3 million . other income ( expense ) , net other income ( expense ) , net decreased by $ 2.2 million , or 35.9 % , in 2019 compared to 2018. the decrease was primarily attributable to a decrease in income resulting from a change in the fair value
| cash flows the following table summarizes our cash flows for the periods indicated : replace_table_token_5_th cash flows from operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 46.6 million , which primarily resulted from a net loss of $ 89.2 million , partially offset by a net change in operating assets and liabilities of $ 35.3 million and non-cash charges of $ 7.3 million . the net change in operating assets and liabilities of $ 35.3 million was primarily due to increases in accounts payable of $ 26.1 million resulting from the deferral of completion payments until april 2021 in accordance with our contract with lonza , accrued manufacturing expenses of $ 7.2 million related to outsourced manufacturing activities and accrued expenses of $ 2.2 million related primarily to increases in contract research services related to the vax-24 program . non-cash charges primarily consisted of $ 5.4 million in stock-based compensation expense , $ 1.4 million in depreciation and amortization and $ 0.3 million in asset impairment charges . net cash used in operating activities for the year ended december 31 , 2019 was $ 47.1 million , which primarily resulted from a net loss of $ 50.3 million and net non-cash charges of $ 0.8 million , partially offset by a net change in operating assets and liabilities of $ 3.9 million . non-cash charges primarily consisted of a $ 3.2 million decrease in the fair value of our redeemable convertible preferred stock tranche liabilities primarily related to a reduction in the time to maturity during the year and the settlement of the series c tranche liability in december 2019 , partially offset by $ 1.2 million of depreciation and amortization expense and $ 1.2 million of stock-based compensation expense .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes our cash flows for the periods indicated : replace_table_token_5_th cash flows from operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 46.6 million , which primarily resulted from a net loss of $ 89.2 million , partially offset by a net change in operating assets and liabilities of $ 35.3 million and non-cash charges of $ 7.3 million . the net change in operating assets and liabilities of $ 35.3 million was primarily due to increases in accounts payable of $ 26.1 million resulting from the deferral of completion payments until april 2021 in accordance with our contract with lonza , accrued manufacturing expenses of $ 7.2 million related to outsourced manufacturing activities and accrued expenses of $ 2.2 million related primarily to increases in contract research services related to the vax-24 program . non-cash charges primarily consisted of $ 5.4 million in stock-based compensation expense , $ 1.4 million in depreciation and amortization and $ 0.3 million in asset impairment charges . net cash used in operating activities for the year ended december 31 , 2019 was $ 47.1 million , which primarily resulted from a net loss of $ 50.3 million and net non-cash charges of $ 0.8 million , partially offset by a net change in operating assets and liabilities of $ 3.9 million . non-cash charges primarily consisted of a $ 3.2 million decrease in the fair value of our redeemable convertible preferred stock tranche liabilities primarily related to a reduction in the time to maturity during the year and the settlement of the series c tranche liability in december 2019 , partially offset by $ 1.2 million of depreciation and amortization expense and $ 1.2 million of stock-based compensation expense .
```
Suspicious Activity Report : results from a preclinical proof-of-concept study showed that in rabbit models for vax-xp compared to more than 30 different pneumococcal serotypes , including all of those contained in prevnar 13 , the vax-xp igg immune responses were superior to polysaccharide-only serotypes and comparable to prevnar 13 in the common 13 strains . advanced and published data for vax-a1 program . we advanced vax-a1 , our novel conjugate vaccine candidate designed to prevent infections from group a strep , a human pathogen causing pharyngitis , or strep throat , and certain severe invasive infections such as sepsis , toxic shock syndrome and necrotizing fasciitis . based on the progress of the program , and consistent with 99 target timelines , we nominated the final vax-a1 vaccine candidate in the first quarter of 2021. in january 2021 , we announced the publication of preclinical data in the journal infectious microbes & diseases , which showed that vax-a1 demonstrated meaningful protection against systemic and soft tissue infection after challenge with no evidence of cross-reactivity with human tissue . additionally , at the end of 2020 , we completed the initial funding period under our agreement with carb-x and are now in the process of submitting our proposal to carb-x for the next funding period of the agreement . completed initial public offering ( ipo ) and series d financing . in june 2020 , we completed our ipo of 17,968,750 shares of common stock , which included the full exercise of the underwriters ' option to purchase 2,343,750 additional shares , at a public offering price of $ 16.00 per share , resulting in aggregate net proceeds of $ 264.0 million . in march 2020 , we completed our series d convertible preferred stock financing , raising aggregate net proceeds of $ 109.9 million . strengthened leadership team and advisory board with key appointments . during 2020 , we added several key leaders , including andrew guggenhime , president and chief financial officer , and appointed halley gilbert to our board of directors , each bringing over 20 years of biotechnology leadership experience . in 2021 , we added william hausdorff , phd to our scientific advisory board . dr. hausdorff has worked on the development , clinical evaluation , registration , implementation and post-marketing assessment of a variety of vaccines over the past 30 years . since 2018 , dr. hausdorff has served as the lead , public health value propositions for vaccines at path , a global organization that works to accelerate health equity by bringing together public institutions , businesses , social enterprises , and investors to solve the world 's most pressing health challenges . prior to joining path , he worked for 12 years at glaxosmithkline ( gsk ) vaccines , eight years at wyeth vaccines and was previously at the centers for disease control and prevention . in his roles at gsk vaccines and wyeth vaccines , he was involved in the development of synflorix ® and prevnar 13 ® , respectively . dr. hausdorff received his phd in biology from the johns hopkins university and his ba in biology from carleton college . since our inception in november 2013 , we have devoted substantially all of our resources to performing research and development , undertaking preclinical studies and enabling manufacturing activities in support of our product development efforts , acquiring and developing our technology and vaccine candidates , organizing and staffing our company , performing business planning , establishing our intellectual property portfolio and raising capital to support and expand such activities . we do not have any products approved for sale and have not generated any revenue from product sales . to date , we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock and our ipo . through december 31 , 2020 , we have raised approximately $ 569.5 million in gross proceeds from the sale of our capital stock . we will continue to require additional capital to develop our vaccine candidates and fund operations for the foreseeable future . accordingly , until such time as we can generate significant revenue from sales of our vaccine candidates , if ever , we expect to finance our cash needs through public or private equity or debt financings , third-party ( including government ) funding and marketing and distribution arrangements , as well as other collaborations , strategic alliances and licensing arrangements , or any combination of these approaches . we have incurred net losses in each year since inception and expect to continue to incur net losses in the foreseeable future . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending in large part on the timing of our preclinical studies , clinical trials and manufacturing activities , and our expenditures on other research and development activities . our net losses were $ 89.2 million and $ 50.3 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 198.6 million . as of december 31 , 2020 , we had cash and cash equivalents of $ 386.2 million , which we believe will be sufficient to fund our operating expenses and capital expenditure requirements through at least the completion and announcement of the topline data from our phase 1/2 clinical proof-of-concept study of vax-24 in adults , which we expect between late 2022 and early 2023 , and to continue to advance our pipeline of other vaccine candidates . we do not expect to generate any revenue from commercial product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our vaccine candidates , which 100 we expect will take a number of years . story_separator_special_tag grant income in july 2019 , carb-x awarded us up to $ 1.6 million in initial funding to advance the development of a universal vaccine to prevent infections caused by group a strep bacteria . in july 2020 , the carb-x agreement was amended to increase the funding percentage for reimbursable expenses during the initial funding period from 50 % to 90 % . as a result , the initial funding amount increased from $ 1.6 million to $ 2.7 million . income is recognized as we incur and pay qualifying expenses over a period that ends on december 31 , 2020. qualifying expenses under this funding arrangement are recorded as a receivable when we have both incurred and paid the expenses . we recognized $ 2.5 million and $ 0.2 million in grant income for funding research and development under this award during the years ended december 31 , 2020 and 2019 , respectively . no grant income was recognized for the year ended december 31 , 2018 because the grant was not awarded until 2019. grant income is included as a component of other income ( expense ) , net in the statements of operations and comprehensive loss . 105 results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the periods presented : replace_table_token_1_th * not meaningful operating expenses research and development expenses the following table summarizes our research and development expenses for the periods presented : replace_table_token_2_th ( 1 ) includes expenses for third-party manufacturing and outsourced contract services , including preclinical studies and outsourced assays . ( 2 ) includes travel-related expenses , warrant expense and other miscellaneous office expenses . research and development expenses increased by $ 28.0 million , or 61.3 % , in 2020 compared to 2019. the increase was primarily attributable to an increase of $ 23.1 million in product and clinical development expenses mainly related to our lead vaccine candidate , vax-24 , driven by increases of $ 18.6 million in outsourced manufacturing activities and $ 4.5 million in outsourced research services due to the ramp-up of the ecrm and polysaccharide gmp campaigns and conjugation and drug product activities in preparation for our anticipated ind application submission between january and june 2022 and phase 1/2 clinical study initiation thereafter . the increase in personnel-related expenses of $ 4.0 million was primarily related to the increase in the number of 106 employees to support our expan sion in research and development activities and higher stock-based compensation expense resulting from an increase in the number of options granted during the year and an increase in the fair value of our common stock affecting the valuation of new option grants . general and administrative expenses general and administrative expenses increased by $ 7.5 million , or 87.4 % , in 2020 compared to 2019. the increase was mainly due to increases of $ 3.9 million in personnel-related costs related to higher stock-based compensation expense resulting from an increase in the number of options granted during the year and an increase in the fair value of our common stock affecting the valuation of new option grants , as well as growth in the number of employees in our general and administrative functions , $ 1.6 million in professional and consulting services resulting from increased legal expenses and consulting costs , and $ 1.7 million in other expenses primarily due to an increase in directors and officers insurance expense as a result of being a public company . other income ( expense ) , net other income ( expense ) , net decreased by $ 3.5 million , or 90.6 % , in 2020 compared to 2019. during 2019 , we recognized a $ 3.2 million gain resulting from a change in the fair value of the redeemable convertible preferred stock tranche liability , which was settled in december 2019 , and there was no such gain recognized during 2020. other income ( expense ) , net also decreased due to an increase in foreign currency losses of $ 2.2 million resulting from the depreciation of the u.s. dollar against the swiss franc . these decreases were partially offset by an increase of $ 2.2 million in grant income from the carb-x program , which commenced in july 2019. comparison of the years ended december 31 , 2019 and 2018 the following table summarizes our results of operations for the periods presented : replace_table_token_3_th * not meaningful 107 research and development expenses the following table summarizes our research and development expenses for the periods presented : replace_table_token_4_th ( 1 ) includes expenses for third-party manufacturing and outsourced contract services , including preclinical studies and outsourced assays . ( 2 ) includes travel-related expenses , warrant expense and other miscellaneous office expenses . research and development expenses increased by $ 15.5 million , or 51.3 % , in 2019 compared to 2018. the increase was primarily attributable to an increase of $ 13.2 million in product and clinical development expenses mainly related to our lead vaccine candidate , vax-24 , driven by an $ 11.5 million increase in costs related to outsourced manufacturing activities and an $ 1.8 million increase in contracted research services . general and administrative expenses general and administrative expenses increased by $ 3.2 million , or 58.6 % , in 2019 compared to 2018. the increase was primarily attributable to increases in personnel-related costs of $ 1.7 million due to increase in the number of employees in our general and administrative functions , employee development and stock-based compensation expenses , and audit , tax and legal fees of $ 1.3 million . other income ( expense ) , net other income ( expense ) , net decreased by $ 2.2 million , or 35.9 % , in 2019 compared to 2018. the decrease was primarily attributable to a decrease in income resulting from a change in the fair value
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1,074 | the ism pmi registered 53.5 in june 2015 , a decrease from 55.3 in june 2014 , but still above 50 ( its expansionary threshold ) . year ended june 30 , 2015 vs. 2014 the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th 14 sales in fiscal 2015 were $ 2.75 billion , which was $ 291.7 million or 11.9 % above the prior year , with acquisitions accounting for $ 280.2 million or 11.4 % . unfavorable foreign currency translation decreased sales by $ 43.3 million or 1.8 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 54.8 million or 2.3 % during the year . we had 252.5 selling days in both fiscal 2015 and fiscal 2014. sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 281.4 million , or 14.3 % . acquisitions within this segment increased sales by $ 280.2 million or 14.2 % . unfavorable foreign currency translation decreased sales by $ 36.5 million or 1.8 % . excluding the impact of businesses acquired and unfavorable currency translation impact , sales increased $ 37.7 million or 1.9 % . sales of our fluid power businesses segment , which operates primarily in oem markets , increased $ 10.3 million or 2.1 % , primarily attributed to strong sales growth at several of our u.s. based fluid power businesses which added $ 17.1 million or 3.5 % , while unfavorable foreign currency translation decreased sales by $ 6.8 million or 1.4 % . sales in our u.s. operations were up $ 207.1 million or 10.2 % , with acquisitions adding $ 175.8 million or 8.7 % . sales from our canadian operations increased $ 67.5 million or 23.2 % , with acquisitions adding $ 86.4 million or 29.7 % . unfavorable foreign currency translation decreased canadian sales by $ 30.4 million or 10.4 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 11.5 million or 3.9 % during the year . consolidated sales from our other country operations , which include mexico , australia and new zealand , were $ 17.1 million or 12.4 % above the prior year , with acquisitions adding sales of $ 18.0 million or 13.1 % . unfavorable foreign currency translation decreased other country sales by $ 12.9 million or 9.4 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 12.0 million or 8.7 % during the year . the sales product mix for fiscal 2015 was 73.2 % industrial products and 26.8 % fluid power products compared to 70.7 % industrial and 29.3 % fluid power in the prior year . these changes in product mix relate entirely to the product mix of our recent acquisitions being primarily industrial products . our gross profit margin was 28.0 % in fiscal 2015 versus 27.9 % in fiscal 2014 . the increased margins are attributable to the impact of relatively higher gross margins from acquired operations . selling , distribution and administrative expenses ( sd & a ) consist of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and providing marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , legal , facility related expenses and expenses incurred with acquiring businesses . sd & a increased $ 62.6 million or 12.0 % during fiscal 2015 compared to the prior year , and as a percent of sales increased to 21.3 % from 21.2 % in fiscal 2014 . the acquired businesses added an incremental $ 69.4 million of sd & a expenses , which includes an additional $ 13.4 million associated with acquired identifiable intangibles amortization . excluding the $ 11.0 million decline in sd & a from foreign currency translation , the remaining sd & a amounts were similar to the prior year . the increase in sd & a as a percentage of sales , was driven by additional intangible asset amortization from businesses acquired . operating income increased $ 20.3 million , or 12.3 % , to $ 184.6 million during fiscal 2015 from $ 164.4 million during 2014 , and as a percent of sales , remained stable at 6.7 % . the increase in operating income dollars is primarily attributable to our acquired businesses . operating income as a percentage of sales for the service center based distribution segment increased to 6.2 % in fiscal 2015 from 6.0 % in fiscal 2014 . this increase is primarily attributable to an increase in gross profit as a percentage of sales , as a result of our recent acquisitions which operate at higher gross profit margins , representing an increase of 0.1 % , along with a decrease in sd & a as a percentage of sales of 0.1 % . operating income as a percentage of sales for the fluid power businesses segment increased to 9.8 % in fiscal 2015 from 9.2 % in fiscal 2014 . this increase is primarily attributable to the leveraging of organic sales growth in our u.s. based fluid power businesses , without a commensurate increase in sd & a expenses . segment operating income is impacted by changes in the amounts and levels of expenses allocated to the segments . the expense allocations include corporate charges for working capital , logistics support and other items and impact segment gross profit and operating expense . interest expense , net , increased to $ 7.9 million in fiscal 2015 entirely due to acquisition related borrowing . story_separator_special_tag the annualized inventory turnover ( using average costs ) for the period ended june 30 , 2015 was 3.7 versus 3.8 at june 30 , 2014 . this decrease is due to the impact of recent acquisitions which historically have had lower inventory turnover rates , coupled with strategic inventory investments that we believe will assist with future sales growth . we believe our inventory turnover ratio in fiscal 2016 will be slightly better than our fiscal 2015 levels . 20 contractual obligations the following table shows the approximate value of the company 's contractual obligations and other commitments to make future payments as of june 30 , 2015 ( in thousands ) : replace_table_token_6_th ( 1 ) amounts represent estimated contractual interest payments on outstanding long-term debt obligations . rates in effect as of june 30 , 2015 are used for variable rate debt . purchase orders for inventory and other goods and services are not included in our estimates as we are unable to aggregate the amount of such purchase orders that represent enforceable and legally binding agreements specifying all significant terms . the previous table includes the gross liability for unrecognized income tax benefits including interest and penalties as well as the balance outstanding under our revolving credit facility in the “ other ” column as the company is unable to make a reasonable estimate regarding the timing of cash settlements , if any , with the respective taxing authorities or lenders . subsequent events on august 3 , 2015 , the company acquired all of the net assets of atlantic fasteners , located in agawam , ma , for a purchase price of approximately $ 12.5 million . the company funded this acquisition from borrowings under the revolving credit facility at a variable interest rate . as a a distributor of fasteners and industrial supplies , this business will be included in the service center based distribution segment from august 3 , 2015. critical accounting policies the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the united states of america requires management to make judgments , assumptions and estimates at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . the business and accounting policies note to the consolidated financial statements describes the significant accounting policies and methods used in preparation of the consolidated financial statements . estimates are used for , but not limited to , determining the net carrying value of trade accounts receivable , inventories , recording self-insurance liabilities and other accrued liabilities . estimates are also used in establishing opening balances in relation to purchase accounting . actual results could differ from these estimates . the following critical accounting policies are impacted significantly by judgments , assumptions and estimates used in the preparation of the consolidated financial statements . lifo inventory valuation and methodology inventories are valued at the average cost method , using the last-in , first-out ( lifo ) method for u.s. inventories , and the average cost method for foreign inventories . we adopted the link chain dollar value lifo method for accounting for u.s. inventories in fiscal 1974. approximately 22.1 % of our domestic inventory dollars relate to lifo layers added in the 1970s . the excess of average cost over lifo cost is $ 151.8 million as reflected in our consolidated balance sheet at june 30 , 2015 . the company maintains five lifo pools based on the following product groupings : bearings , power transmission products , rubber products , fluid power products and other products . lifo layers and or liquidations are determined consistently year-to-year . see the inventories note to the consolidated financial statements in item 8 under the caption `` financial statements and supplementary data , for further information . allowances for slow-moving and obsolete inventories we evaluate the recoverability of our slow-moving or obsolete inventories at least quarterly . we estimate the recoverable cost of such inventory by product type while considering factors such as its age , historic and current 21 demand trends , the physical condition of the inventory , as well as assumptions regarding future demand . our ability to recover our cost for slow moving or obsolete inventory can be affected by such factors as general market conditions , future customer demand and relationships with suppliers . a significant portion of the products we hold in inventory have long shelf lives , are not highly susceptible to obsolescence and are eligible for return under various supplier return programs . allowances for doubtful accounts we evaluate the collectibility of trade accounts receivable based on a combination of factors . initially , we estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience . this initial estimate is adjusted based on recent trends of certain customers and industries estimated to be a greater credit risk , trends within the entire customer pool and changes in the overall aging of accounts receivable . while we have a large customer base that is geographically dispersed , a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults , and therefore , the need to revise estimates for bad debts . accounts are written off against the allowance when it becomes evident that collection will not occur . as of june 30 , 2015 and 2014 , our allowance for doubtful accounts was 2.7 % of gross receivables , for each period . our provision for losses on accounts receivable was $ 2.6 million , $ 4.0 million and $ 2.3 million in fiscal 2015 , 2014 and 2013 , respectively . goodwill and intangibles goodwill is recognized as the amount by which the cost of an acquired entity exceeds the net amount assigned to assets acquired and liabilities assumed . goodwill for acquired businesses is
| liquidity and capital resources our primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2015 we had total debt obligations outstanding of $ 321.0 million compared to $ 170.7 million at june 30 , 2014 . management expects that our existing cash , cash equivalents , funds available under the revolving credit and uncommitted shelf facilities , cash provided from operations , and the use of operating leases will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company holds , from time to time , relatively significant cash and cash equivalent balances outside of the united states of america . the following table shows the company 's total cash as of june 30 , 2015 by geographic location ; all amounts are in thousands . country amount united sates $ 17,256 canada 40,325 other countries 11,889 total $ 69,470 to the extent cash in foreign countries is distributed to the u.s. , it could become subject to u.s. income taxes . foreign tax credits may be available to offset all or a portion of such taxes . at june 30 , 2015 , all foreign earnings are considered permanently reinvested . the company 's working capital at june 30 , 2015 was $ 549.2 million compared to $ 545.2 million at june 30 , 2014 . the current ratio was 2.8 to 1 at june 30 , 2015 and 2.9 to 1 at june 30 , 2014 . net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands .
| 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. |
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 primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2015 we had total debt obligations outstanding of $ 321.0 million compared to $ 170.7 million at june 30 , 2014 . management expects that our existing cash , cash equivalents , funds available under the revolving credit and uncommitted shelf facilities , cash provided from operations , and the use of operating leases will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company holds , from time to time , relatively significant cash and cash equivalent balances outside of the united states of america . the following table shows the company 's total cash as of june 30 , 2015 by geographic location ; all amounts are in thousands . country amount united sates $ 17,256 canada 40,325 other countries 11,889 total $ 69,470 to the extent cash in foreign countries is distributed to the u.s. , it could become subject to u.s. income taxes . foreign tax credits may be available to offset all or a portion of such taxes . at june 30 , 2015 , all foreign earnings are considered permanently reinvested . the company 's working capital at june 30 , 2015 was $ 549.2 million compared to $ 545.2 million at june 30 , 2014 . the current ratio was 2.8 to 1 at june 30 , 2015 and 2.9 to 1 at june 30 , 2014 . net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands .
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Suspicious Activity Report : the ism pmi registered 53.5 in june 2015 , a decrease from 55.3 in june 2014 , but still above 50 ( its expansionary threshold ) . year ended june 30 , 2015 vs. 2014 the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th 14 sales in fiscal 2015 were $ 2.75 billion , which was $ 291.7 million or 11.9 % above the prior year , with acquisitions accounting for $ 280.2 million or 11.4 % . unfavorable foreign currency translation decreased sales by $ 43.3 million or 1.8 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 54.8 million or 2.3 % during the year . we had 252.5 selling days in both fiscal 2015 and fiscal 2014. sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 281.4 million , or 14.3 % . acquisitions within this segment increased sales by $ 280.2 million or 14.2 % . unfavorable foreign currency translation decreased sales by $ 36.5 million or 1.8 % . excluding the impact of businesses acquired and unfavorable currency translation impact , sales increased $ 37.7 million or 1.9 % . sales of our fluid power businesses segment , which operates primarily in oem markets , increased $ 10.3 million or 2.1 % , primarily attributed to strong sales growth at several of our u.s. based fluid power businesses which added $ 17.1 million or 3.5 % , while unfavorable foreign currency translation decreased sales by $ 6.8 million or 1.4 % . sales in our u.s. operations were up $ 207.1 million or 10.2 % , with acquisitions adding $ 175.8 million or 8.7 % . sales from our canadian operations increased $ 67.5 million or 23.2 % , with acquisitions adding $ 86.4 million or 29.7 % . unfavorable foreign currency translation decreased canadian sales by $ 30.4 million or 10.4 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 11.5 million or 3.9 % during the year . consolidated sales from our other country operations , which include mexico , australia and new zealand , were $ 17.1 million or 12.4 % above the prior year , with acquisitions adding sales of $ 18.0 million or 13.1 % . unfavorable foreign currency translation decreased other country sales by $ 12.9 million or 9.4 % . excluding the impact of businesses acquired and prior to the impact of currency translation , sales were up $ 12.0 million or 8.7 % during the year . the sales product mix for fiscal 2015 was 73.2 % industrial products and 26.8 % fluid power products compared to 70.7 % industrial and 29.3 % fluid power in the prior year . these changes in product mix relate entirely to the product mix of our recent acquisitions being primarily industrial products . our gross profit margin was 28.0 % in fiscal 2015 versus 27.9 % in fiscal 2014 . the increased margins are attributable to the impact of relatively higher gross margins from acquired operations . selling , distribution and administrative expenses ( sd & a ) consist of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and providing marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , legal , facility related expenses and expenses incurred with acquiring businesses . sd & a increased $ 62.6 million or 12.0 % during fiscal 2015 compared to the prior year , and as a percent of sales increased to 21.3 % from 21.2 % in fiscal 2014 . the acquired businesses added an incremental $ 69.4 million of sd & a expenses , which includes an additional $ 13.4 million associated with acquired identifiable intangibles amortization . excluding the $ 11.0 million decline in sd & a from foreign currency translation , the remaining sd & a amounts were similar to the prior year . the increase in sd & a as a percentage of sales , was driven by additional intangible asset amortization from businesses acquired . operating income increased $ 20.3 million , or 12.3 % , to $ 184.6 million during fiscal 2015 from $ 164.4 million during 2014 , and as a percent of sales , remained stable at 6.7 % . the increase in operating income dollars is primarily attributable to our acquired businesses . operating income as a percentage of sales for the service center based distribution segment increased to 6.2 % in fiscal 2015 from 6.0 % in fiscal 2014 . this increase is primarily attributable to an increase in gross profit as a percentage of sales , as a result of our recent acquisitions which operate at higher gross profit margins , representing an increase of 0.1 % , along with a decrease in sd & a as a percentage of sales of 0.1 % . operating income as a percentage of sales for the fluid power businesses segment increased to 9.8 % in fiscal 2015 from 9.2 % in fiscal 2014 . this increase is primarily attributable to the leveraging of organic sales growth in our u.s. based fluid power businesses , without a commensurate increase in sd & a expenses . segment operating income is impacted by changes in the amounts and levels of expenses allocated to the segments . the expense allocations include corporate charges for working capital , logistics support and other items and impact segment gross profit and operating expense . interest expense , net , increased to $ 7.9 million in fiscal 2015 entirely due to acquisition related borrowing . story_separator_special_tag the annualized inventory turnover ( using average costs ) for the period ended june 30 , 2015 was 3.7 versus 3.8 at june 30 , 2014 . this decrease is due to the impact of recent acquisitions which historically have had lower inventory turnover rates , coupled with strategic inventory investments that we believe will assist with future sales growth . we believe our inventory turnover ratio in fiscal 2016 will be slightly better than our fiscal 2015 levels . 20 contractual obligations the following table shows the approximate value of the company 's contractual obligations and other commitments to make future payments as of june 30 , 2015 ( in thousands ) : replace_table_token_6_th ( 1 ) amounts represent estimated contractual interest payments on outstanding long-term debt obligations . rates in effect as of june 30 , 2015 are used for variable rate debt . purchase orders for inventory and other goods and services are not included in our estimates as we are unable to aggregate the amount of such purchase orders that represent enforceable and legally binding agreements specifying all significant terms . the previous table includes the gross liability for unrecognized income tax benefits including interest and penalties as well as the balance outstanding under our revolving credit facility in the “ other ” column as the company is unable to make a reasonable estimate regarding the timing of cash settlements , if any , with the respective taxing authorities or lenders . subsequent events on august 3 , 2015 , the company acquired all of the net assets of atlantic fasteners , located in agawam , ma , for a purchase price of approximately $ 12.5 million . the company funded this acquisition from borrowings under the revolving credit facility at a variable interest rate . as a a distributor of fasteners and industrial supplies , this business will be included in the service center based distribution segment from august 3 , 2015. critical accounting policies the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the united states of america requires management to make judgments , assumptions and estimates at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . the business and accounting policies note to the consolidated financial statements describes the significant accounting policies and methods used in preparation of the consolidated financial statements . estimates are used for , but not limited to , determining the net carrying value of trade accounts receivable , inventories , recording self-insurance liabilities and other accrued liabilities . estimates are also used in establishing opening balances in relation to purchase accounting . actual results could differ from these estimates . the following critical accounting policies are impacted significantly by judgments , assumptions and estimates used in the preparation of the consolidated financial statements . lifo inventory valuation and methodology inventories are valued at the average cost method , using the last-in , first-out ( lifo ) method for u.s. inventories , and the average cost method for foreign inventories . we adopted the link chain dollar value lifo method for accounting for u.s. inventories in fiscal 1974. approximately 22.1 % of our domestic inventory dollars relate to lifo layers added in the 1970s . the excess of average cost over lifo cost is $ 151.8 million as reflected in our consolidated balance sheet at june 30 , 2015 . the company maintains five lifo pools based on the following product groupings : bearings , power transmission products , rubber products , fluid power products and other products . lifo layers and or liquidations are determined consistently year-to-year . see the inventories note to the consolidated financial statements in item 8 under the caption `` financial statements and supplementary data , for further information . allowances for slow-moving and obsolete inventories we evaluate the recoverability of our slow-moving or obsolete inventories at least quarterly . we estimate the recoverable cost of such inventory by product type while considering factors such as its age , historic and current 21 demand trends , the physical condition of the inventory , as well as assumptions regarding future demand . our ability to recover our cost for slow moving or obsolete inventory can be affected by such factors as general market conditions , future customer demand and relationships with suppliers . a significant portion of the products we hold in inventory have long shelf lives , are not highly susceptible to obsolescence and are eligible for return under various supplier return programs . allowances for doubtful accounts we evaluate the collectibility of trade accounts receivable based on a combination of factors . initially , we estimate an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience . this initial estimate is adjusted based on recent trends of certain customers and industries estimated to be a greater credit risk , trends within the entire customer pool and changes in the overall aging of accounts receivable . while we have a large customer base that is geographically dispersed , a general economic downturn in any of the industry segments in which we operate could result in higher than expected defaults , and therefore , the need to revise estimates for bad debts . accounts are written off against the allowance when it becomes evident that collection will not occur . as of june 30 , 2015 and 2014 , our allowance for doubtful accounts was 2.7 % of gross receivables , for each period . our provision for losses on accounts receivable was $ 2.6 million , $ 4.0 million and $ 2.3 million in fiscal 2015 , 2014 and 2013 , respectively . goodwill and intangibles goodwill is recognized as the amount by which the cost of an acquired entity exceeds the net amount assigned to assets acquired and liabilities assumed . goodwill for acquired businesses is
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1,075 | for tax positions meeting the more-likely-than-not threshold , the amount to be recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority . the company does not believe that it has any significant uncertain tax positions at december 31 , 2011 , nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation . the company did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the twelve months ended december 31 , 2011 and 2010. carrying value of long-lived assets . our property and equipment , intangible assets and goodwill ( collectively , our long-lived assets ) comprise a significant portion of our total assets . the accounting standards require that we periodically , and upon the occurrence of certain events , assess the recoverability of our long-lived assets . if the carrying value of our property and equipment exceeds their undiscounted cash flows , we are required to write the carrying value down to estimated fair value . goodwill . the fair value of goodwill and other intangible assets with indefinite lives are tested for impairment annually and upon the occurrence of certain events , and are written down to fair value if considered impaired . we evaluate goodwill for impairment on at least an annual basis ( in our third quarter ) by comparing the fair value of each reporting unit to the carrying value of the reporting unit including related goodwill . we operate a one segment business which is made up of various clinics within partnerships . a reporting unit refers to the acquired interest of a single clinic or group of clinics . local management typically continues to manage the acquired clinic or group of clinics . for each clinic or group of clinics , we maintain discrete financial information and both corporate and local management regularly review the operating results . we did not combine any of the reporting units for impairment testing in any year presented . for each purchase of the equity interest , goodwill , if any , is assigned to the respective clinic or group of clinics , if deemed appropriate . the evaluation of goodwill in 2011 , 2010 and 2009 did not result in any goodwill amounts that were deemed impaired . an impairment loss 24 generally would be recognized when the carrying amount of the net assets of the reporting unit , inclusive of goodwill and other intangible assets , exceed the estimated fair value of the reporting unit . the estimated fair value of a reporting unit is determined using two factors : ( i ) earnings prior to taxes , depreciation and amortization for the reporting unit multiplied by a price/earnings ratio used in the industry and ( ii ) a discounted cash flow analysis . a weight is assigned to each factor and the sum of the each weight multiplied by the factor is considered the estimated fair value . for 2011 , the factors ( ie . price/earnings ratio , discount rate and residual capitalization rate ) were updated to reflect current market conditions . selected operating and financial data the following table and discussion relates to continuing operations unless otherwise noted . the defined terms with their respective description used in the following discussion are listed below : replace_table_token_8_th the following table presents selected operating and financial data , used by management as key indicators of our operating performance : replace_table_token_9_th results of operations fiscal year 2011 compared to fiscal 2010 net revenues rose 12.2 % to $ 237.0 million for 2011 from $ 211.2 million for 2010 due to increases in net patient revenues and other revenues as discussed below . the 2011 results include five months of operations of the july 2011 acquisition . the 2010 results include 10 months of operations for the february 2010 acquisition and eight days of operations for the december 21 , 2010 acquisition . the 2011 and 2010 results include 255 days and 254 days of operations , respectively . net income attributable to common shareholders for the year ended december 31 , 2011 increased 34.1 % to $ 21.0 million from $ 15.6 million in 2010. diluted earnings per share rose to $ 1.75 from $ 1.32. included in the 2011 results is a pretax gain of $ 5.4 million related to a purchase price settlement on the february 2010 acquisition . included in the 2010 results was a positive adjustment in the income tax provision of $ 0.8 million and a gain from the sale of a five clinic joint venture of approximately $ 0.6 25 million . excluding the 2011 and 2010 gains and the 2010 tax adjustment , diluted earnings per shares from operations would have been $ 1.35 for 2011 and $ 1.22 for 2010 , an increase of 10.7 % . see table below replace_table_token_10_th net patient revenues net patient revenues increased to $ 226.6 million for 2011 from $ 204.1 million for 2010 , an increase of $ 22.5 million , or 11.0 % , primarily due to an increase in patient visits from 1.9 million to 2.2 million . the increase in net patient revenues of $ 22.5 million consisted of an increase of $ 14.3 million from mature clinics and $ 8.2 million from new clinics , primarily due to the july 2011 acquisition . the $ 14.4 million from mature clinics is made up of an increase of $ 14.2 million from the 2010 acquisitions and $ 0.2 million from other mature clinics . story_separator_special_tag the accounts receivable days outstanding were 45 days at december 31 , 2010 and december 31 , 2009. receivables in the amount of $ 2.8 million and $ 3.8 million were written-off in 2010 and 2009 , respectively . closure costs in 2010 , 15 clinics were closed with closure costs amounting to $ 163,000. for 2009 , closure costs amounted to $ 91,000 related to the closure of 10 clinics . corporate office costs corporate office costs , consisting primarily of salaries , benefits and equity based compensation of corporate office personnel and directors , rent , insurance costs , depreciation and amortization , travel , legal , compliance , professional , marketing and recruiting fees , were $ 22.8 million for 2010 and $ 23.5 million for 2009 , a decrease of $ 0.7 million . this decrease is primarily due to lower incentive compensation , including the long-term incentive plan . corporate office costs as a percentage of net revenues were 10.8 % for 2010 and 11.7 % for 2009 . 29 interest and other income , net interest and other income for 2010 included a pre-tax gain of $ 578,000 from the sale of our 51.0 % interest in a five clinic texas joint venture . interest expense interest expense decreased to $ 236,000 for 2010 from $ 352,000 for 2009 primarily due to lower average borrowings . at december 31 , 2010 , $ 5.5 million was outstanding under our revolving credit facility . see liquidity and capital resources below for a discussion of the terms of our revolving credit facility . provision for income taxes the provision for income taxes increased to $ 8.8 million for 2010 from $ 7.9 million for 2009 , an increase of approximately $ 0.9 million , primarily as a result of higher pre-tax income . during the fourth quarter of 2010 , we completed a process to perform a detailed reconciliation of our federal and state taxes payable and receivable accounts along with our federal and state deferred tax asset and liability accounts . historically , calculations of these tax-related accounts were performed through summary estimates and analysis . as a result of this detailed analysis , we recorded a reduction in our current state income tax provision of $ 814,000. without the effect of the $ 814,000 , during 2010 , we accrued state and federal income taxes at an effective tax rate ( provision for taxes divided by the difference between income from operations and net income attributable to noncontrolling interest ) of 39.4 % . for 2009 , the results included certain incentive compensation that was not tax deductible thereby slightly increasing the effective income tax rate to 40.3 % . net income attributable to noncontrolling interests net income attributable to noncontrolling interests was $ 9.1 million in 2010 compared to $ 8.2 million in 2009. as a percentage of operating income before corporate office costs , net income attributable to noncontrolling interests was 16.2 % in 2010 compared to 15.9 % in 2009. story_separator_special_tag ranging from 3.25 % to 4.0 % per annum . in addition , we assumed leases with remaining terms of 1 month to 6 years for the operating facilities . at december 31 , 2011 , the balance on these notes payable was $ 0.7 million . in conjunction with the above mentioned acquisitions , in the event that a limited minority partner 's employment ceases at any time after three years from the acquisition date , we have agreed to repurchase that individual 's noncontrolling interest at a predetermined multiple of earnings before interest and taxes . the purchase agreement related to an acquisition that occurred in 2008 provided for possible contingent consideration of up to $ 3,781,000 based on the achievement of a designated level of operating results within a three-year period following the acquisition . in 2009 , 2010 and 2011 , we paid $ 1,179,000 , $ 1,080,000 and $ 1,522,000 , respectively , of additional consideration related to the operating results of such acquired business . those amounts were recorded as additional goodwill . from september 2001 through december 31 , 2008 , the board authorized us to purchase , in the open market or in privately negotiated transactions , up to 2,250,000 shares of our common stock . in march 2009 , the board authorized the repurchase of up to 10 % or approximately 1,200,000 shares of our common stock ( march 2009 authorization ) . in connection with the march 2009 authorization , we amended our bank credit agreement to permit the share repurchases of up to $ 15,000,000. we are required to retire shares purchased under the march 2009 authorization . since there is no expiration date for these share repurchase programs , additional shares may be purchased from time to time in the open market or private transactions depending on price , availability and our cash position . during 2011 , we purchased 254,642 shares of our common stock for an aggregate cost of $ 4.7 million . using the december 31 , 2011 closing price of $ 19.68 per share , there were approximately 172,000 shares remaining that could be purchased under these programs . during 2010 , we purchased 86,522 shares for an aggregate purchase price of $ 1.4 million . during 2009 , we purchased 518,335 shares for an aggregate price of $ 5.6 million . off balance sheet arrangements with the exception of operating leases for its executive offices and clinic facilities discussed in note 13 to our consolidated financial statements included in item 8 , we have no off-balance sheet debt or other off-balance sheet financing arrangements . 32 factors affecting future results the risks related to our business and operations include : the uncertain economic conditions and the historically high unemployment rate in the united states may have material adverse impacts on our business and financial condition that we currently can not predict . we
| liquidity and capital resources we believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2011 , we had $ 10.0 million in cash and cash equivalents compared to $ 9.2 million at december 31 , 2010. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our revolving credit facility are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and investments through at least december 2012. the amount outstanding under our revolving credit facility was $ 23.5 million at december 31 , 2011 compared to $ 5.5 million at december 31 , 2010. at december 31 , 2011 , we had $ 51.5 million available under our revolving credit facility . significant acquisitions would likely require financing under our revolving credit facility . the increase in cash and cash equivalents of $ 0.8 million from december 31 , 2010 to december 31 , 2011 was due primarily to $ 32.7 million provided by operations , $ 18.0 million of net proceeds on our revolving credit facility and $ 1.5 million from a purchase price settlement . the major uses of cash for investing and financing activities included : acquisitions of noncontrolling interests ( $ 20.4 million ) , distributions to noncontrolling interests ( $ 9.8 million ) , purchase of business and earnout payment on a previously acquired business ( $ 9.5 million ) , purchases of our common stock ( $ 4.7 million ) , payments of cash dividends to our shareholders ( $ 3.8 million ) , purchases of fixed assets ( $ 3.2 million ) , and payments on notes payable ( $ 0.3 million ) . 30 effective august 27 , 2007 , we entered into a credit agreement with a commitment for a $ 30.0 million revolving credit facility which was increased to $ 50.0 million effective june 4 , 2008 ( credit agreement ) .
| 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. |
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 we believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2011 , we had $ 10.0 million in cash and cash equivalents compared to $ 9.2 million at december 31 , 2010. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our revolving credit facility are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and investments through at least december 2012. the amount outstanding under our revolving credit facility was $ 23.5 million at december 31 , 2011 compared to $ 5.5 million at december 31 , 2010. at december 31 , 2011 , we had $ 51.5 million available under our revolving credit facility . significant acquisitions would likely require financing under our revolving credit facility . the increase in cash and cash equivalents of $ 0.8 million from december 31 , 2010 to december 31 , 2011 was due primarily to $ 32.7 million provided by operations , $ 18.0 million of net proceeds on our revolving credit facility and $ 1.5 million from a purchase price settlement . the major uses of cash for investing and financing activities included : acquisitions of noncontrolling interests ( $ 20.4 million ) , distributions to noncontrolling interests ( $ 9.8 million ) , purchase of business and earnout payment on a previously acquired business ( $ 9.5 million ) , purchases of our common stock ( $ 4.7 million ) , payments of cash dividends to our shareholders ( $ 3.8 million ) , purchases of fixed assets ( $ 3.2 million ) , and payments on notes payable ( $ 0.3 million ) . 30 effective august 27 , 2007 , we entered into a credit agreement with a commitment for a $ 30.0 million revolving credit facility which was increased to $ 50.0 million effective june 4 , 2008 ( credit agreement ) .
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Suspicious Activity Report : for tax positions meeting the more-likely-than-not threshold , the amount to be recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority . the company does not believe that it has any significant uncertain tax positions at december 31 , 2011 , nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation . the company did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the twelve months ended december 31 , 2011 and 2010. carrying value of long-lived assets . our property and equipment , intangible assets and goodwill ( collectively , our long-lived assets ) comprise a significant portion of our total assets . the accounting standards require that we periodically , and upon the occurrence of certain events , assess the recoverability of our long-lived assets . if the carrying value of our property and equipment exceeds their undiscounted cash flows , we are required to write the carrying value down to estimated fair value . goodwill . the fair value of goodwill and other intangible assets with indefinite lives are tested for impairment annually and upon the occurrence of certain events , and are written down to fair value if considered impaired . we evaluate goodwill for impairment on at least an annual basis ( in our third quarter ) by comparing the fair value of each reporting unit to the carrying value of the reporting unit including related goodwill . we operate a one segment business which is made up of various clinics within partnerships . a reporting unit refers to the acquired interest of a single clinic or group of clinics . local management typically continues to manage the acquired clinic or group of clinics . for each clinic or group of clinics , we maintain discrete financial information and both corporate and local management regularly review the operating results . we did not combine any of the reporting units for impairment testing in any year presented . for each purchase of the equity interest , goodwill , if any , is assigned to the respective clinic or group of clinics , if deemed appropriate . the evaluation of goodwill in 2011 , 2010 and 2009 did not result in any goodwill amounts that were deemed impaired . an impairment loss 24 generally would be recognized when the carrying amount of the net assets of the reporting unit , inclusive of goodwill and other intangible assets , exceed the estimated fair value of the reporting unit . the estimated fair value of a reporting unit is determined using two factors : ( i ) earnings prior to taxes , depreciation and amortization for the reporting unit multiplied by a price/earnings ratio used in the industry and ( ii ) a discounted cash flow analysis . a weight is assigned to each factor and the sum of the each weight multiplied by the factor is considered the estimated fair value . for 2011 , the factors ( ie . price/earnings ratio , discount rate and residual capitalization rate ) were updated to reflect current market conditions . selected operating and financial data the following table and discussion relates to continuing operations unless otherwise noted . the defined terms with their respective description used in the following discussion are listed below : replace_table_token_8_th the following table presents selected operating and financial data , used by management as key indicators of our operating performance : replace_table_token_9_th results of operations fiscal year 2011 compared to fiscal 2010 net revenues rose 12.2 % to $ 237.0 million for 2011 from $ 211.2 million for 2010 due to increases in net patient revenues and other revenues as discussed below . the 2011 results include five months of operations of the july 2011 acquisition . the 2010 results include 10 months of operations for the february 2010 acquisition and eight days of operations for the december 21 , 2010 acquisition . the 2011 and 2010 results include 255 days and 254 days of operations , respectively . net income attributable to common shareholders for the year ended december 31 , 2011 increased 34.1 % to $ 21.0 million from $ 15.6 million in 2010. diluted earnings per share rose to $ 1.75 from $ 1.32. included in the 2011 results is a pretax gain of $ 5.4 million related to a purchase price settlement on the february 2010 acquisition . included in the 2010 results was a positive adjustment in the income tax provision of $ 0.8 million and a gain from the sale of a five clinic joint venture of approximately $ 0.6 25 million . excluding the 2011 and 2010 gains and the 2010 tax adjustment , diluted earnings per shares from operations would have been $ 1.35 for 2011 and $ 1.22 for 2010 , an increase of 10.7 % . see table below replace_table_token_10_th net patient revenues net patient revenues increased to $ 226.6 million for 2011 from $ 204.1 million for 2010 , an increase of $ 22.5 million , or 11.0 % , primarily due to an increase in patient visits from 1.9 million to 2.2 million . the increase in net patient revenues of $ 22.5 million consisted of an increase of $ 14.3 million from mature clinics and $ 8.2 million from new clinics , primarily due to the july 2011 acquisition . the $ 14.4 million from mature clinics is made up of an increase of $ 14.2 million from the 2010 acquisitions and $ 0.2 million from other mature clinics . story_separator_special_tag the accounts receivable days outstanding were 45 days at december 31 , 2010 and december 31 , 2009. receivables in the amount of $ 2.8 million and $ 3.8 million were written-off in 2010 and 2009 , respectively . closure costs in 2010 , 15 clinics were closed with closure costs amounting to $ 163,000. for 2009 , closure costs amounted to $ 91,000 related to the closure of 10 clinics . corporate office costs corporate office costs , consisting primarily of salaries , benefits and equity based compensation of corporate office personnel and directors , rent , insurance costs , depreciation and amortization , travel , legal , compliance , professional , marketing and recruiting fees , were $ 22.8 million for 2010 and $ 23.5 million for 2009 , a decrease of $ 0.7 million . this decrease is primarily due to lower incentive compensation , including the long-term incentive plan . corporate office costs as a percentage of net revenues were 10.8 % for 2010 and 11.7 % for 2009 . 29 interest and other income , net interest and other income for 2010 included a pre-tax gain of $ 578,000 from the sale of our 51.0 % interest in a five clinic texas joint venture . interest expense interest expense decreased to $ 236,000 for 2010 from $ 352,000 for 2009 primarily due to lower average borrowings . at december 31 , 2010 , $ 5.5 million was outstanding under our revolving credit facility . see liquidity and capital resources below for a discussion of the terms of our revolving credit facility . provision for income taxes the provision for income taxes increased to $ 8.8 million for 2010 from $ 7.9 million for 2009 , an increase of approximately $ 0.9 million , primarily as a result of higher pre-tax income . during the fourth quarter of 2010 , we completed a process to perform a detailed reconciliation of our federal and state taxes payable and receivable accounts along with our federal and state deferred tax asset and liability accounts . historically , calculations of these tax-related accounts were performed through summary estimates and analysis . as a result of this detailed analysis , we recorded a reduction in our current state income tax provision of $ 814,000. without the effect of the $ 814,000 , during 2010 , we accrued state and federal income taxes at an effective tax rate ( provision for taxes divided by the difference between income from operations and net income attributable to noncontrolling interest ) of 39.4 % . for 2009 , the results included certain incentive compensation that was not tax deductible thereby slightly increasing the effective income tax rate to 40.3 % . net income attributable to noncontrolling interests net income attributable to noncontrolling interests was $ 9.1 million in 2010 compared to $ 8.2 million in 2009. as a percentage of operating income before corporate office costs , net income attributable to noncontrolling interests was 16.2 % in 2010 compared to 15.9 % in 2009. story_separator_special_tag ranging from 3.25 % to 4.0 % per annum . in addition , we assumed leases with remaining terms of 1 month to 6 years for the operating facilities . at december 31 , 2011 , the balance on these notes payable was $ 0.7 million . in conjunction with the above mentioned acquisitions , in the event that a limited minority partner 's employment ceases at any time after three years from the acquisition date , we have agreed to repurchase that individual 's noncontrolling interest at a predetermined multiple of earnings before interest and taxes . the purchase agreement related to an acquisition that occurred in 2008 provided for possible contingent consideration of up to $ 3,781,000 based on the achievement of a designated level of operating results within a three-year period following the acquisition . in 2009 , 2010 and 2011 , we paid $ 1,179,000 , $ 1,080,000 and $ 1,522,000 , respectively , of additional consideration related to the operating results of such acquired business . those amounts were recorded as additional goodwill . from september 2001 through december 31 , 2008 , the board authorized us to purchase , in the open market or in privately negotiated transactions , up to 2,250,000 shares of our common stock . in march 2009 , the board authorized the repurchase of up to 10 % or approximately 1,200,000 shares of our common stock ( march 2009 authorization ) . in connection with the march 2009 authorization , we amended our bank credit agreement to permit the share repurchases of up to $ 15,000,000. we are required to retire shares purchased under the march 2009 authorization . since there is no expiration date for these share repurchase programs , additional shares may be purchased from time to time in the open market or private transactions depending on price , availability and our cash position . during 2011 , we purchased 254,642 shares of our common stock for an aggregate cost of $ 4.7 million . using the december 31 , 2011 closing price of $ 19.68 per share , there were approximately 172,000 shares remaining that could be purchased under these programs . during 2010 , we purchased 86,522 shares for an aggregate purchase price of $ 1.4 million . during 2009 , we purchased 518,335 shares for an aggregate price of $ 5.6 million . off balance sheet arrangements with the exception of operating leases for its executive offices and clinic facilities discussed in note 13 to our consolidated financial statements included in item 8 , we have no off-balance sheet debt or other off-balance sheet financing arrangements . 32 factors affecting future results the risks related to our business and operations include : the uncertain economic conditions and the historically high unemployment rate in the united states may have material adverse impacts on our business and financial condition that we currently can not predict . we
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1,076 | the deferral period concluded by september 30 , 2020 for $ 43.5 million , or 11 % , of the commercial loans subject to covid-19 loan modifications . all of these loans were current 44 as of september 30 , 2020. the deferral period for the majority of the remaining commercial loans concluded by november 16 , 2020. small business administration paycheck protection program loans - as of september 30 , 2020 , the bank had originated and funded 791 ppp loans totaling $ 43.9 million , with a median loan amount of $ 19 thousand , and received origination fees totaling $ 1.9 million associated with these loans . these loans are fully guaranteed by the sba . the program ended august 8 , 2020. through november 16 , 2020 , $ 12.2 million of the bank 's ppp loans have been forgiven by the sba . on october 8 , 2020 the sba released a streamlined loan forgiveness application for ppp loans in amounts of $ 50 thousand or less . of the ppp loans originated by the bank , 611 loans totaling $ 9.6 million , or 22 % of the bank 's aggregate ppp loan balance , were in amounts less than $ 50 thousand and will be eligible for the streamlined forgiveness process . capital , liquidity , and dividends - management performed stress test scenarios during april 2020. based on the company 's existing capital levels , deposit inflows , loan underwriting policies , loan concentration , and geographical diversification , no liquidity or capital concerns were identified as a result of the stress tests . management continues to anticipate being able to manage the economic risks and uncertainties associated with the covid-19 pandemic and the bank remaining well capitalized with sufficient liquidity to serve our customers . deposit balances have increased due primarily to the economic stimulus payments , a reduction in consumer spending , and ppp loan proceeds being deposited at the bank . as a result , management is currently faced with the challenge of excess liquidity . due to the nature of deposit cash flows , management does not know how long the excess liquidity will continue . as such , management has elected , for the time being , to reduce the bank 's level of borrowings and increase the balance of securities using the excess liquidity from the deposit portfolio . with earnings of $ 0.47 per share for fiscal year 2020 , and a cash balance at the holding company level of $ 82.5 million , the company has the resources to continue to pay its regular quarterly dividend of $ 0.085 per share for the foreseeable future . given the state of economic uncertainty and how that may play out with the credit risk exposure in the bank 's loan portfolio , the company elected to defer the annual true blue dividend in june 2020 and did not ask at that time for a regulatory non-objection to move capital from the bank to the company to pay that dividend . it is management 's intention to ask for a regulatory non-objection at some point in the future to pay this dividend when economic conditions are more certain . it is currently the company 's intention to pay out 100 % of its fiscal year 2021 earnings . management 's evolving response to covid-19 - there is continued concern about a resurgence of covid-19 as we enter the winter months . in october and november 2020 , covid-19 cases , hospitalizations , and deaths nationally and in our local market areas increased compared to the summer months , including to new record levels in some areas . the kansas governor recently issued an executive order establishing a statewide face-covering protocol as part of her administration 's strategy to keep schools and businesses open and to protect the economy . we continue to be confronted with a significant and unfamiliar degree of uncertainty as to how a resurgence will impact our customers , employees , and operations and how actions taken by governmental authorities and other third parties in response to a resurgence will impact our customers , employees , and operations . we will continue to monitor covid-19 cases and will adjust operational plans as necessary . we will also continue to assist our customers as necessary during these uncertain times . see `` part i , item 1a . risk factors - risks related to macroeconomic conditions `` for additional discussion regarding the impact the covid-19 pandemic may have on our business , results of operations and financial condition . impact on market interest rates as a result of covid-19 pandemic and company 's response the federal reserve , in response to economic risks resulting from the covid-19 pandemic , returned to a zero-interest rate policy in march 2020. this was after most broader market rates decreased significantly in response to evolving news about the covid-19 pandemic . the dramatic lowering of interest rates in a short period of time impacted the operations and performance of the bank . deteriorating economic conditions included more than 20 million people becoming unemployed in the united states in one month 's time , with more than 58 million in total filing for unemployment benefits , along with immediate reductions in consumer spending on almost all categories of purchases except groceries and staples , and closure or significantly reduced operations of restaurants , bars , airlines , hotels , and entertainment and hospitality venues , among others , and had a devastating impact on the economy . since that time , many areas of consumer spending have rebounded , generally locally and not related to travel and entertainment . story_separator_special_tag in addition , the adequacy of the company 's acl is reviewed during bank regulatory examinations . we consider any comments from our regulators when assessing the appropriateness of our acl . management seeks to apply the acl methodology in a consistent manner ; however , the methodology may be modified in response to changing conditions . asu 2016-13 , financial instruments - credit losses : measurement of credit losses on financial instruments became effective for the company on october 1 , 2020. see `` part ii , item 8. financial statements and supplementary data – notes to consolidated financial statements – note 1. summary of significant accounting policies `` for additional information . fair value measurements . the company uses fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures in accordance with accounting standards codification ( `` asc `` ) 820 and asc 825. the company groups its financial instruments at fair value in three levels based on the markets in which the instruments are traded and the reliability of the assumptions used to determine fair value , with level 1 ( quoted prices for identical assets in an active market ) being considered the most reliable , and level 3 having the most unobservable inputs and therefore being considered the least reliable . the company bases its fair values on the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date . the company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value . the company 's afs securities are measured at fair value on a recurring basis . changes in the fair value of afs securities are recorded , net of tax , as aoci in stockholders ' equity . the company primarily uses prices obtained from third-party pricing services to determine the fair value of its afs securities . various modeling techniques are used to determine pricing for the company 's securities , including option pricing , discounted cash flow models , and similar techniques . the inputs to these models may include benchmark yields , reported trades , broker/dealer quotes , issuer spreads , benchmark securities , bids , offers and reference data . all afs securities are classified as level 2. the company 's interest rate swaps are measured at fair value on a recurring basis . the estimated fair value of the interest rate swaps are obtained from the counterparty and are determined by a discounted cash flow analysis using observable market-based inputs . changes in the fair value of the interest rate swaps are recorded , net of tax , as aoci in stockholders ' equity . the company did not have any other financial instruments that were measured at fair value on a recurring basis at september 30 , 2020. recent accounting pronouncements for a discussion of recent accounting pronouncements , see `` part ii , item 8. financial statements and supplementary data – notes to financial statements – note 1. summary of significant accounting policies . `` 49 management strategy we are a community-oriented financial institution dedicated to serving the needs of customers in our market areas . our commitment is to provide qualified borrowers the broadest possible access to home ownership through our mortgage lending programs and to offer a complete set of personal and commercial banking products and services to our customers . we strive to enhance stockholder value while maintaining a strong capital position . to achieve these goals , we focus on the following strategies : lending . we are one of the leading originators of one- to four-family loans in the state of kansas . we originate these loans primarily for our own portfolio , and we service the loans we originate . we also purchase one- to four-family loans from correspondent lenders . in addition , we offer several commercial lending options to our customers and participate in commercial loans with other lenders . we offer both fixed- and adjustable-rate products with various terms to maturity and pricing options . we maintain strong relationships with local real estate agents to attract mortgage loan business . we rely on our marketing efforts and customer service reputation to attract mortgage business from walk-in customers , customers that apply online , and existing customers . deposit services . we offer a wide array of retail and business deposit products and services . these products include checking , savings , money market , certificates of deposit , and retirement accounts . our deposit services are provided through a branch network of 54 locations , including traditional branches and retail in-store locations , our call center which operates on extended hours , mobile banking , telephone banking , and online banking and bill payment services . cost control . we generally are very effective at controlling our costs of operations . by using technology , we are able to centralize our loan servicing and deposit support functions for efficient processing . we serve a broad range of customers through relatively few branch locations . our average deposit base per traditional branch at september 30 , 2020 was approximately $ 123.6 million . this large average deposit base per branch helps to control costs . our one- to four-family lending strategy and our effective management of credit risk allows us to service a large portfolio of loans at efficient levels because it costs less to service a portfolio of performing loans . we recognize it is more expensive to offer a full suite of commercial products and services , but we will continue our efforts to control those costs . asset quality . we utilize underwriting standards for our lending products , including the loans we purchase and participate in , that are designed to limit our exposure to credit risk . we require complete documentation for both originated and purchased
| liquidity and capital resources liquidity refers to our ability to generate sufficient cash to fund ongoing operations , to repay maturing certificates of deposit and other deposit withdrawals , to repay maturing borrowings , and to fund loan commitments . liquidity management is both a daily and long-term function of our business management . the company 's most available liquid assets are represented by cash and cash equivalents , afs securities , and short-term investment securities . the bank 's primary sources of funds are deposits , fhlb borrowings , repurchase agreements , repayments and maturities of outstanding loans and mbs and other short-term investments , and funds provided by operations . the bank 's long-term borrowings primarily have been used to manage the bank 's interest rate risk with the intention to improve the earnings of the bank while maintaining capital ratios in excess of regulatory standards for well-capitalized financial institutions . in addition , the bank 's focus on managing risk has provided additional liquidity capacity by maintaining a balance of mbs and investment securities available as collateral for borrowings . we generally intend to manage cash reserves sufficient to meet short-term liquidity needs , which are routinely forecasted for 10 , 30 , and 365 days . additionally , on a monthly basis , we perform a liquidity stress test in accordance with the interagency policy statement on funding and liquidity risk management . the liquidity stress test incorporates both short-term and long-term liquidity scenarios in order to identify and to quantify liquidity risk . management also monitors key liquidity statistics related to items such as wholesale funding gaps , borrowings capacity , and available unpledged collateral , as well as various liquidity ratios . see the `` executive summary '' above for information regarding the impact of the covid-19 pandemic on our liquidity . 73 in the event short-term liquidity needs exceed available cash , the bank has access to a line of credit at fhlb and the frb of kansas city 's discount window . see `` part i , item 1. business - sources of funds '' for information regarding limits on the bank 's fhlb borrowings .
| 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. |
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 liquidity refers to our ability to generate sufficient cash to fund ongoing operations , to repay maturing certificates of deposit and other deposit withdrawals , to repay maturing borrowings , and to fund loan commitments . liquidity management is both a daily and long-term function of our business management . the company 's most available liquid assets are represented by cash and cash equivalents , afs securities , and short-term investment securities . the bank 's primary sources of funds are deposits , fhlb borrowings , repurchase agreements , repayments and maturities of outstanding loans and mbs and other short-term investments , and funds provided by operations . the bank 's long-term borrowings primarily have been used to manage the bank 's interest rate risk with the intention to improve the earnings of the bank while maintaining capital ratios in excess of regulatory standards for well-capitalized financial institutions . in addition , the bank 's focus on managing risk has provided additional liquidity capacity by maintaining a balance of mbs and investment securities available as collateral for borrowings . we generally intend to manage cash reserves sufficient to meet short-term liquidity needs , which are routinely forecasted for 10 , 30 , and 365 days . additionally , on a monthly basis , we perform a liquidity stress test in accordance with the interagency policy statement on funding and liquidity risk management . the liquidity stress test incorporates both short-term and long-term liquidity scenarios in order to identify and to quantify liquidity risk . management also monitors key liquidity statistics related to items such as wholesale funding gaps , borrowings capacity , and available unpledged collateral , as well as various liquidity ratios . see the `` executive summary '' above for information regarding the impact of the covid-19 pandemic on our liquidity . 73 in the event short-term liquidity needs exceed available cash , the bank has access to a line of credit at fhlb and the frb of kansas city 's discount window . see `` part i , item 1. business - sources of funds '' for information regarding limits on the bank 's fhlb borrowings .
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Suspicious Activity Report : the deferral period concluded by september 30 , 2020 for $ 43.5 million , or 11 % , of the commercial loans subject to covid-19 loan modifications . all of these loans were current 44 as of september 30 , 2020. the deferral period for the majority of the remaining commercial loans concluded by november 16 , 2020. small business administration paycheck protection program loans - as of september 30 , 2020 , the bank had originated and funded 791 ppp loans totaling $ 43.9 million , with a median loan amount of $ 19 thousand , and received origination fees totaling $ 1.9 million associated with these loans . these loans are fully guaranteed by the sba . the program ended august 8 , 2020. through november 16 , 2020 , $ 12.2 million of the bank 's ppp loans have been forgiven by the sba . on october 8 , 2020 the sba released a streamlined loan forgiveness application for ppp loans in amounts of $ 50 thousand or less . of the ppp loans originated by the bank , 611 loans totaling $ 9.6 million , or 22 % of the bank 's aggregate ppp loan balance , were in amounts less than $ 50 thousand and will be eligible for the streamlined forgiveness process . capital , liquidity , and dividends - management performed stress test scenarios during april 2020. based on the company 's existing capital levels , deposit inflows , loan underwriting policies , loan concentration , and geographical diversification , no liquidity or capital concerns were identified as a result of the stress tests . management continues to anticipate being able to manage the economic risks and uncertainties associated with the covid-19 pandemic and the bank remaining well capitalized with sufficient liquidity to serve our customers . deposit balances have increased due primarily to the economic stimulus payments , a reduction in consumer spending , and ppp loan proceeds being deposited at the bank . as a result , management is currently faced with the challenge of excess liquidity . due to the nature of deposit cash flows , management does not know how long the excess liquidity will continue . as such , management has elected , for the time being , to reduce the bank 's level of borrowings and increase the balance of securities using the excess liquidity from the deposit portfolio . with earnings of $ 0.47 per share for fiscal year 2020 , and a cash balance at the holding company level of $ 82.5 million , the company has the resources to continue to pay its regular quarterly dividend of $ 0.085 per share for the foreseeable future . given the state of economic uncertainty and how that may play out with the credit risk exposure in the bank 's loan portfolio , the company elected to defer the annual true blue dividend in june 2020 and did not ask at that time for a regulatory non-objection to move capital from the bank to the company to pay that dividend . it is management 's intention to ask for a regulatory non-objection at some point in the future to pay this dividend when economic conditions are more certain . it is currently the company 's intention to pay out 100 % of its fiscal year 2021 earnings . management 's evolving response to covid-19 - there is continued concern about a resurgence of covid-19 as we enter the winter months . in october and november 2020 , covid-19 cases , hospitalizations , and deaths nationally and in our local market areas increased compared to the summer months , including to new record levels in some areas . the kansas governor recently issued an executive order establishing a statewide face-covering protocol as part of her administration 's strategy to keep schools and businesses open and to protect the economy . we continue to be confronted with a significant and unfamiliar degree of uncertainty as to how a resurgence will impact our customers , employees , and operations and how actions taken by governmental authorities and other third parties in response to a resurgence will impact our customers , employees , and operations . we will continue to monitor covid-19 cases and will adjust operational plans as necessary . we will also continue to assist our customers as necessary during these uncertain times . see `` part i , item 1a . risk factors - risks related to macroeconomic conditions `` for additional discussion regarding the impact the covid-19 pandemic may have on our business , results of operations and financial condition . impact on market interest rates as a result of covid-19 pandemic and company 's response the federal reserve , in response to economic risks resulting from the covid-19 pandemic , returned to a zero-interest rate policy in march 2020. this was after most broader market rates decreased significantly in response to evolving news about the covid-19 pandemic . the dramatic lowering of interest rates in a short period of time impacted the operations and performance of the bank . deteriorating economic conditions included more than 20 million people becoming unemployed in the united states in one month 's time , with more than 58 million in total filing for unemployment benefits , along with immediate reductions in consumer spending on almost all categories of purchases except groceries and staples , and closure or significantly reduced operations of restaurants , bars , airlines , hotels , and entertainment and hospitality venues , among others , and had a devastating impact on the economy . since that time , many areas of consumer spending have rebounded , generally locally and not related to travel and entertainment . story_separator_special_tag in addition , the adequacy of the company 's acl is reviewed during bank regulatory examinations . we consider any comments from our regulators when assessing the appropriateness of our acl . management seeks to apply the acl methodology in a consistent manner ; however , the methodology may be modified in response to changing conditions . asu 2016-13 , financial instruments - credit losses : measurement of credit losses on financial instruments became effective for the company on october 1 , 2020. see `` part ii , item 8. financial statements and supplementary data – notes to consolidated financial statements – note 1. summary of significant accounting policies `` for additional information . fair value measurements . the company uses fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures in accordance with accounting standards codification ( `` asc `` ) 820 and asc 825. the company groups its financial instruments at fair value in three levels based on the markets in which the instruments are traded and the reliability of the assumptions used to determine fair value , with level 1 ( quoted prices for identical assets in an active market ) being considered the most reliable , and level 3 having the most unobservable inputs and therefore being considered the least reliable . the company bases its fair values on the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date . the company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value . the company 's afs securities are measured at fair value on a recurring basis . changes in the fair value of afs securities are recorded , net of tax , as aoci in stockholders ' equity . the company primarily uses prices obtained from third-party pricing services to determine the fair value of its afs securities . various modeling techniques are used to determine pricing for the company 's securities , including option pricing , discounted cash flow models , and similar techniques . the inputs to these models may include benchmark yields , reported trades , broker/dealer quotes , issuer spreads , benchmark securities , bids , offers and reference data . all afs securities are classified as level 2. the company 's interest rate swaps are measured at fair value on a recurring basis . the estimated fair value of the interest rate swaps are obtained from the counterparty and are determined by a discounted cash flow analysis using observable market-based inputs . changes in the fair value of the interest rate swaps are recorded , net of tax , as aoci in stockholders ' equity . the company did not have any other financial instruments that were measured at fair value on a recurring basis at september 30 , 2020. recent accounting pronouncements for a discussion of recent accounting pronouncements , see `` part ii , item 8. financial statements and supplementary data – notes to financial statements – note 1. summary of significant accounting policies . `` 49 management strategy we are a community-oriented financial institution dedicated to serving the needs of customers in our market areas . our commitment is to provide qualified borrowers the broadest possible access to home ownership through our mortgage lending programs and to offer a complete set of personal and commercial banking products and services to our customers . we strive to enhance stockholder value while maintaining a strong capital position . to achieve these goals , we focus on the following strategies : lending . we are one of the leading originators of one- to four-family loans in the state of kansas . we originate these loans primarily for our own portfolio , and we service the loans we originate . we also purchase one- to four-family loans from correspondent lenders . in addition , we offer several commercial lending options to our customers and participate in commercial loans with other lenders . we offer both fixed- and adjustable-rate products with various terms to maturity and pricing options . we maintain strong relationships with local real estate agents to attract mortgage loan business . we rely on our marketing efforts and customer service reputation to attract mortgage business from walk-in customers , customers that apply online , and existing customers . deposit services . we offer a wide array of retail and business deposit products and services . these products include checking , savings , money market , certificates of deposit , and retirement accounts . our deposit services are provided through a branch network of 54 locations , including traditional branches and retail in-store locations , our call center which operates on extended hours , mobile banking , telephone banking , and online banking and bill payment services . cost control . we generally are very effective at controlling our costs of operations . by using technology , we are able to centralize our loan servicing and deposit support functions for efficient processing . we serve a broad range of customers through relatively few branch locations . our average deposit base per traditional branch at september 30 , 2020 was approximately $ 123.6 million . this large average deposit base per branch helps to control costs . our one- to four-family lending strategy and our effective management of credit risk allows us to service a large portfolio of loans at efficient levels because it costs less to service a portfolio of performing loans . we recognize it is more expensive to offer a full suite of commercial products and services , but we will continue our efforts to control those costs . asset quality . we utilize underwriting standards for our lending products , including the loans we purchase and participate in , that are designed to limit our exposure to credit risk . we require complete documentation for both originated and purchased
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1,077 | our pharos laser is a medical device that we have marketed since october 2004 as a tool for the treatment of proliferative skin conditions including psoriasis , vitiligo , atopic dermatitis , and leukoderma . the covid-19 pandemic is negatively impacting the dermatology business as many customers delay the acquisition or purchase of capital equipment such as our pharos laser . because this business does not have a disposables component and we augment our capital equipment sales with recurring revenue derived from service and or rental or lease agreements , we are experiencing less of an impact than business models that rely solely on capital equipment and or disposables sales . we continue to evaluate our overall strategy for the dermatology business and believe there could be an opportunity to grow revenues and increase its cash contribution in the future . changes to our dermatology business strategy , as well as the timing of those potential changes , will be influenced by the continued impact of the covid-19 pandemic . recent developments covid-19 the global spread of the novel coronavirus ( covid-19 ) has created significant volatility , uncertainty and economic disruption . the ultimate effects of the covid-19 on our business , operations and financial condition are unknown at this time . in the near term , we expect that our revenue will continue to be adversely impacted and enrollment in our atherectomy clinical trial will continue to be delayed or slowed , as patients elect to postpone voluntary treatments and physicians ' offices are either closed or operating at a reduced capacity . in addition , some customers are requesting more flexible payment terms on a temporary basis . we also may not be able to secure additional financing in a timely manner or on favorable terms , if at all . our manufacturing facility located in carlsbad , california is currently operational . employee travel is limited to essential travel only and many employees are working from home when feasible . we have experienced minor delays in receiving shipments of parts , which has affected the timing of our key engineering efforts . to date , the shipment delays have not had a material impact on our ability to support our atherectomy indication trial . however , the extent to which covid-19 impacts our business will depend on future developments , which are highly uncertain and can not be predicted , including new information which may emerge concerning the severity of covid-19 and the actions to contain it or treat its impact , among others . reverse stock split on november 16 , 2020 , we filed a certificate of amendment to the certificate of incorporation with the secretary of state of the state of delaware to effect a reverse stock split of our common stock at a ratio of one-for-twenty-five , or the reverse stock split . the reverse stock split became effective as of 4:01 p.m. eastern time on november 16 , 2020 , and our common stock began trading on the new york stock exchange on a post-split basis on november 17 , 2020. unless otherwise noted , all share and per share numbers contained in this annual report are reflected on a post-split basis for all periods presented . nyse american on december 17 , 2020 , we received approval to list our common stock on the nyse american and provided written notice to the new york stock exchange , or the nyse , of our intention to list our common stock on nyse american and to simultaneously delist such securities from the nyse . our final day trading on the nyse was on december 21 , 2020 and we commenced trading on nyse american on december 22 , 2020 under our current stock symbol “ rmed . ” components of our results of operations net revenue product sales consist of the sale of dabra and pharos lasers , the sale of catheters for use with the dabra laser and the sale of consumables and replacement parts . 89 service and other revenue consists primarily of sales of extended warranties , which we recognize over the contract period and billable services , including repair activity , which is recognized when the service is provided . it also includes income from the rental of our lasers . we currently use our commercial team to service the u.s. market , and we utilize distributors outside the u.s. in markets where we have received regulatory approval . we expect to continue to seek regulatory approvals for our products in additional strategic markets . cost of revenue and gross profit ( loss ) cost of revenue for product sales consists primarily of costs of components for use in our products , the labor that are used to produce our products , and the manufacturing overhead that support production . cost of revenue for service and other includes the cost of maintaining and servicing the warranties on our products , including the depreciation on lasers we own . we expect cost of revenue to increase to the extent our total revenue grows . we calculate gross profit ( loss ) as revenue less cost of revenue . our gross profit ( loss ) has been and will continue to be affected by a variety of factors , primarily production volumes , the cost of direct materials , discounting practices , manufacturing costs , product yields , headcount and cost-reduction strategies . we expect our gross loss to reduce and become gross profit over the long term as our production volume increases and certain costs remain fixed or increase at a slower rate . we intend to use our design , engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing processes , which we believe will reduce costs . story_separator_special_tag ; the emergence of competing or complementary technologies ; the number and types of future products we develop and commercialize ; 95 the costs of preparing , filing and prosecuting patent applications and maintaining , enforcing and defending intellectual property-related claims ; and the level of our selling , general and administrative expenses . although we bolstered our liquidity resources in 2020 , have an effective shelf registration statement and an “ at the market ” offering to allow us to raise additional capital when the opportunities permit , and may receive additional funds from the exercise of its warrants depending on market conditions , management concluded that the aforementioned conditions , including the ongoing uncertainty related to the negative impacts of the covid-19 pandemic , continue to raise substantial doubt about our ability to continue as a going concern within 12 months from the date of issuance of the financial statements . our plans to address this uncertainty include raising additional funding , if necessary , through public or private equity or debt financings . however , we may not be able to secure such financing in a timely manner or on favorable terms , if at all . furthermore , if we issue equity securities to raise additional funds , our existing stockholders may experience dilution , and the new equity securities may have rights , preferences and privileges senior to those of our existing stockholders . our financial statements include explanatory disclosures regarding substantial doubt about our ability to continue as a going concern . future reports on our financial statements may also include explanatory disclosures with respect to our ability to continue as a going concern . our financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should we be unable to continue our operations . story_separator_special_tag normal ; letter-spacing:0pt ; font-family : times new roman ; font-size:10pt ; `` > determination of the transaction price ; allocation of the transaction price to the performance obligations in the contract ; and recognition of revenue when , or as , performance obligations are satisfied . we account for a contract with a customer when we have a legally enforceable contract with the customer , the arrangement identifies the rights of the parties , the contract has commercial substance , and we determine it is probable that it will collect the contract consideration . we recognize revenue when control of the promised goods or services transfers to customers , in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services . taxes collected from customers relating to goods or services and remitted to governmental authorities are excluded from revenue . catheter revenue we enter into a dabra laser commercial usage agreement or dabra laser placement acknowledgement with each customer that is supplied a dabra laser , collectively the “ usage agreement ” . the usage agreement provides for specific terms of continued use of dabra laser , including a nominal periodic fee . the terms of a usage agreement typically allow us to place a dabra laser at a customer 's specified location without a specified contract term . under the usage agreement terms , we retain all ownership rights to the dabra laser and are permitted to request the return of the equipment within 10 business days of notification . while the laser periodic fees are nominal , the laser usage agreements provide us the exclusive rights to supply related single-use catheters to the customer which aggregate the majority of the vascular segment revenue . there are no specified minimum purchase commitments for the catheters . we recognize revenue associated with the usage agreement and catheter supply arrangements in accordance with topic 606 as the contract primarily includes variable payments , the catheters are priced at their standalone selling price and the laser equipment is insignificant in the context of the contract . revenue is recognized when the performance obligation is satisfied , which is generally upon shipment of the catheter . laser sales sales of laser systems and are included in product sales in the statements of operations . we recognize revenue on laser sales at the point in time that control transfers to the customer . control of the product typically transfers upon shipment . warranty service revenue we typically provide a 12-month warranty with the purchase of our laser systems . customers can extend the warranty period through the purchase of extended warranty service contracts . extended warranty service contracts are sold with contract terms ranging from 12 to 60 months and cover periods after the end of the initial 12-month warranty period . the warranty provides the customer with maintenance services in addition to the assurance that the laser product complies with agreed-upon specifications . therefore , the warranty service is treated as a separate performance obligation from the laser system . warranty services are a stand-ready obligation , and we recognize revenue on a straight-line basis over the service contract term . warranty service revenue is included in service and other revenue in the statements of operations . 98 distributor transactions in certain markets outside the u.s. , we sell products and provide services to customers through distributors that specialize in medical device products . the terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers . we account for these transactions in accordance with our revenue recognition policy described herein . contracts with multiple performance obligations certain of our contracts with customers contain multiple performance obligations . for these contracts , we account for individual products and services as separate performance obligations if they are distinct , which is if ( i ) a product or service is separately identifiable from other items in the arrangement and ( ii ) the customer can benefit from the product or service
| cash flows replace_table_token_6_th net cash used in operating activities during the year ended december 31 , 2020 , net cash used in operating activities was $ 28.3 million , consisting primarily of a net loss of $ 36.0 million and a decrease in net operating assets of $ 1.0 million , partially offset by non-cash charges of $ 6.7 million consisting of primarily stock-based compensation expense and depreciation and amortization . during the year ended december 31 , 2019 , net cash used in operating activities was $ 33.2 million , consisting primarily of a net loss of $ 57.0 million and an increase in net operating assets of $ 1.9 million , partially offset by non-cash charges of $ 25.7 million consisting of primarily stock-based compensation expense , depreciation and amortization and allowance for doubtful accounts . net cash provided by ( used in ) investing activities during the year ended december 31 , 2020 , net cash provided by investing activities was $ 15.9 million , consisting of $ 16.0 million from proceeds of maturities of investments offset by $ 0.1 million in purchases of equipment . during the year ended december 31 , 2019 , net cash used in investing activities was $ 16.0 million , consisting of $ 36.5 million to purchase short-term investments and $ 0.3 million to purchase manufacturing equipment and vehicles for our sales force to transport our laser equipment , partially offset by $ 21.0 million from proceeds of sales of investments .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows replace_table_token_6_th net cash used in operating activities during the year ended december 31 , 2020 , net cash used in operating activities was $ 28.3 million , consisting primarily of a net loss of $ 36.0 million and a decrease in net operating assets of $ 1.0 million , partially offset by non-cash charges of $ 6.7 million consisting of primarily stock-based compensation expense and depreciation and amortization . during the year ended december 31 , 2019 , net cash used in operating activities was $ 33.2 million , consisting primarily of a net loss of $ 57.0 million and an increase in net operating assets of $ 1.9 million , partially offset by non-cash charges of $ 25.7 million consisting of primarily stock-based compensation expense , depreciation and amortization and allowance for doubtful accounts . net cash provided by ( used in ) investing activities during the year ended december 31 , 2020 , net cash provided by investing activities was $ 15.9 million , consisting of $ 16.0 million from proceeds of maturities of investments offset by $ 0.1 million in purchases of equipment . during the year ended december 31 , 2019 , net cash used in investing activities was $ 16.0 million , consisting of $ 36.5 million to purchase short-term investments and $ 0.3 million to purchase manufacturing equipment and vehicles for our sales force to transport our laser equipment , partially offset by $ 21.0 million from proceeds of sales of investments .
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Suspicious Activity Report : our pharos laser is a medical device that we have marketed since october 2004 as a tool for the treatment of proliferative skin conditions including psoriasis , vitiligo , atopic dermatitis , and leukoderma . the covid-19 pandemic is negatively impacting the dermatology business as many customers delay the acquisition or purchase of capital equipment such as our pharos laser . because this business does not have a disposables component and we augment our capital equipment sales with recurring revenue derived from service and or rental or lease agreements , we are experiencing less of an impact than business models that rely solely on capital equipment and or disposables sales . we continue to evaluate our overall strategy for the dermatology business and believe there could be an opportunity to grow revenues and increase its cash contribution in the future . changes to our dermatology business strategy , as well as the timing of those potential changes , will be influenced by the continued impact of the covid-19 pandemic . recent developments covid-19 the global spread of the novel coronavirus ( covid-19 ) has created significant volatility , uncertainty and economic disruption . the ultimate effects of the covid-19 on our business , operations and financial condition are unknown at this time . in the near term , we expect that our revenue will continue to be adversely impacted and enrollment in our atherectomy clinical trial will continue to be delayed or slowed , as patients elect to postpone voluntary treatments and physicians ' offices are either closed or operating at a reduced capacity . in addition , some customers are requesting more flexible payment terms on a temporary basis . we also may not be able to secure additional financing in a timely manner or on favorable terms , if at all . our manufacturing facility located in carlsbad , california is currently operational . employee travel is limited to essential travel only and many employees are working from home when feasible . we have experienced minor delays in receiving shipments of parts , which has affected the timing of our key engineering efforts . to date , the shipment delays have not had a material impact on our ability to support our atherectomy indication trial . however , the extent to which covid-19 impacts our business will depend on future developments , which are highly uncertain and can not be predicted , including new information which may emerge concerning the severity of covid-19 and the actions to contain it or treat its impact , among others . reverse stock split on november 16 , 2020 , we filed a certificate of amendment to the certificate of incorporation with the secretary of state of the state of delaware to effect a reverse stock split of our common stock at a ratio of one-for-twenty-five , or the reverse stock split . the reverse stock split became effective as of 4:01 p.m. eastern time on november 16 , 2020 , and our common stock began trading on the new york stock exchange on a post-split basis on november 17 , 2020. unless otherwise noted , all share and per share numbers contained in this annual report are reflected on a post-split basis for all periods presented . nyse american on december 17 , 2020 , we received approval to list our common stock on the nyse american and provided written notice to the new york stock exchange , or the nyse , of our intention to list our common stock on nyse american and to simultaneously delist such securities from the nyse . our final day trading on the nyse was on december 21 , 2020 and we commenced trading on nyse american on december 22 , 2020 under our current stock symbol “ rmed . ” components of our results of operations net revenue product sales consist of the sale of dabra and pharos lasers , the sale of catheters for use with the dabra laser and the sale of consumables and replacement parts . 89 service and other revenue consists primarily of sales of extended warranties , which we recognize over the contract period and billable services , including repair activity , which is recognized when the service is provided . it also includes income from the rental of our lasers . we currently use our commercial team to service the u.s. market , and we utilize distributors outside the u.s. in markets where we have received regulatory approval . we expect to continue to seek regulatory approvals for our products in additional strategic markets . cost of revenue and gross profit ( loss ) cost of revenue for product sales consists primarily of costs of components for use in our products , the labor that are used to produce our products , and the manufacturing overhead that support production . cost of revenue for service and other includes the cost of maintaining and servicing the warranties on our products , including the depreciation on lasers we own . we expect cost of revenue to increase to the extent our total revenue grows . we calculate gross profit ( loss ) as revenue less cost of revenue . our gross profit ( loss ) has been and will continue to be affected by a variety of factors , primarily production volumes , the cost of direct materials , discounting practices , manufacturing costs , product yields , headcount and cost-reduction strategies . we expect our gross loss to reduce and become gross profit over the long term as our production volume increases and certain costs remain fixed or increase at a slower rate . we intend to use our design , engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing processes , which we believe will reduce costs . story_separator_special_tag ; the emergence of competing or complementary technologies ; the number and types of future products we develop and commercialize ; 95 the costs of preparing , filing and prosecuting patent applications and maintaining , enforcing and defending intellectual property-related claims ; and the level of our selling , general and administrative expenses . although we bolstered our liquidity resources in 2020 , have an effective shelf registration statement and an “ at the market ” offering to allow us to raise additional capital when the opportunities permit , and may receive additional funds from the exercise of its warrants depending on market conditions , management concluded that the aforementioned conditions , including the ongoing uncertainty related to the negative impacts of the covid-19 pandemic , continue to raise substantial doubt about our ability to continue as a going concern within 12 months from the date of issuance of the financial statements . our plans to address this uncertainty include raising additional funding , if necessary , through public or private equity or debt financings . however , we may not be able to secure such financing in a timely manner or on favorable terms , if at all . furthermore , if we issue equity securities to raise additional funds , our existing stockholders may experience dilution , and the new equity securities may have rights , preferences and privileges senior to those of our existing stockholders . our financial statements include explanatory disclosures regarding substantial doubt about our ability to continue as a going concern . future reports on our financial statements may also include explanatory disclosures with respect to our ability to continue as a going concern . our financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should we be unable to continue our operations . story_separator_special_tag normal ; letter-spacing:0pt ; font-family : times new roman ; font-size:10pt ; `` > determination of the transaction price ; allocation of the transaction price to the performance obligations in the contract ; and recognition of revenue when , or as , performance obligations are satisfied . we account for a contract with a customer when we have a legally enforceable contract with the customer , the arrangement identifies the rights of the parties , the contract has commercial substance , and we determine it is probable that it will collect the contract consideration . we recognize revenue when control of the promised goods or services transfers to customers , in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services . taxes collected from customers relating to goods or services and remitted to governmental authorities are excluded from revenue . catheter revenue we enter into a dabra laser commercial usage agreement or dabra laser placement acknowledgement with each customer that is supplied a dabra laser , collectively the “ usage agreement ” . the usage agreement provides for specific terms of continued use of dabra laser , including a nominal periodic fee . the terms of a usage agreement typically allow us to place a dabra laser at a customer 's specified location without a specified contract term . under the usage agreement terms , we retain all ownership rights to the dabra laser and are permitted to request the return of the equipment within 10 business days of notification . while the laser periodic fees are nominal , the laser usage agreements provide us the exclusive rights to supply related single-use catheters to the customer which aggregate the majority of the vascular segment revenue . there are no specified minimum purchase commitments for the catheters . we recognize revenue associated with the usage agreement and catheter supply arrangements in accordance with topic 606 as the contract primarily includes variable payments , the catheters are priced at their standalone selling price and the laser equipment is insignificant in the context of the contract . revenue is recognized when the performance obligation is satisfied , which is generally upon shipment of the catheter . laser sales sales of laser systems and are included in product sales in the statements of operations . we recognize revenue on laser sales at the point in time that control transfers to the customer . control of the product typically transfers upon shipment . warranty service revenue we typically provide a 12-month warranty with the purchase of our laser systems . customers can extend the warranty period through the purchase of extended warranty service contracts . extended warranty service contracts are sold with contract terms ranging from 12 to 60 months and cover periods after the end of the initial 12-month warranty period . the warranty provides the customer with maintenance services in addition to the assurance that the laser product complies with agreed-upon specifications . therefore , the warranty service is treated as a separate performance obligation from the laser system . warranty services are a stand-ready obligation , and we recognize revenue on a straight-line basis over the service contract term . warranty service revenue is included in service and other revenue in the statements of operations . 98 distributor transactions in certain markets outside the u.s. , we sell products and provide services to customers through distributors that specialize in medical device products . the terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers . we account for these transactions in accordance with our revenue recognition policy described herein . contracts with multiple performance obligations certain of our contracts with customers contain multiple performance obligations . for these contracts , we account for individual products and services as separate performance obligations if they are distinct , which is if ( i ) a product or service is separately identifiable from other items in the arrangement and ( ii ) the customer can benefit from the product or service
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1,078 | beginning in the first quarter of 2020 , we implemented a hiring freeze and expense reductions across the company , including the postponement and elimination of an estimated $ 150 million in capital expenditures . we furloughed 35 approximately 15,000 employees in april and may in various countries , though we returned most of those employees to work during the course of the year . we also reduced our workforce by approximately 3,300 employees or 12.4 % compared to december 31 , 2019. during 2020 , many of our employees who were not furloughed worked reduced hours and experienced pay cuts , including a six-month 100 % reduction in salary for our ceo and president and 25 % temporary reductions in salary for our other named executive officers . in addition , our board of directors waived six months of board service fees in 2020. the compensation levels for our executive officers and board of directors have since returned to their pre-covid-19 levels . most of our manufacturer partners began suspending production beginning in late march 2020 , and production disruptions continued into the second quarter of 2020. these disruptions resulted in lower inventory levels , in particular for new vehicles and limited inventory of certain models . our manufacturer partners began providing us with additional incentive support in march 2020 , and our manufacturer and lending partners have provided support to retail customers , such as increased incentives , payment deferrals , as well as 0 % financing on certain vehicles and term lengths . while production has improved , the level of new vehicle inventory remains well below historical levels , which has contributed to increased gross profit on vehicles sold . united states – beginning in march 2020 , shelter-in-place rules in many states either required we close dealerships or limit our automotive dealership operations to essential services . virtual/online sales of new and used vehicles remained available in all locations , while the service departments remained open to support critical transportation needs . in may 2020 , many shelter-in-place rules began to expire , and restrictions were slowly lifted in many states allowing us to reopen dealerships all of which remain open , subject in certain locations to personnel capacity limits . for the year ended december 31 , 2020 , new and used retail automotive gross profit per unit increased 19.5 % and 16.8 % , primarily due to inventory shortages and additional manufacturer incentives , while our automotive dealerships experienced a 14.4 % decrease in unit volume and a 12.5 % decrease in service and parts revenues compared to the prior year on a same-store basis . our u.s. used vehicle supercenters experienced a same-store used unit sales decline of 26.9 % in 2020 , largely attributable to lower inventory and the covid-19 pandemic . commercial truck dealership sales and service operations were classified as essential businesses and remained open throughout 2020 in most locations around the u.s. and canada providing services to our customers . for the year ended december 31 , 2020 , the north american class 6-8 retail sales market declined 29.6 % , and our new same-store unit sales and revenue declined 10.0 % and 5.2 % , respectively , during the same period . penske transportation solutions – we have a 28.9 % ownership interest in penske transportation solutions ( `` pts `` ) . as an integral part of the north american supply chain , pts has been generally classified as essential by governmental authorities which allowed pts to remain operating in much of its business , providing crucial supply chain and transportation services to its customers . while its full-service leasing and contract maintenance businesses remained consistent , commercial rental utilization slowed during the second quarter of 2020 but increased with the expirations of the shelter-in-place orders . in the third quarter of 2020 , pts began to experience increased levels of utilization and profitability as business conditions improved . in its logistics services business , throughout 2020 , pts experienced heavy volumes in the grocery sector which were offset by plant closings in automotive and manufacturing . in the third quarter of 2020 , most of pts ' logistics customers returned to normal operations , generating strong results . pts has also experienced improved remarketing results as truck prices improved in response to limited inventory . in response to the covid-19 pandemic , pts initially furloughed over 5,000 employees , most of which returned to work . pts also reduced executive salaries by up to 30 % , which reductions have been eliminated . united kingdom – all dealerships closed on march 24 , 2020 , in accordance with government orders , though we provided service and parts operations on an emergency basis . over 90 % of the employees in the u.k. were placed on furlough beginning march 24 , 2020. however , we opened substantially all service and parts operations in mid-may 2020 and showrooms in early june 2020. during the fourth quarter of 2020 and continuing into 2021 , in response to increased incidence of the covid-19 pandemic , certain parts of the u.k. reinstated shelter-in-place orders which required our dealerships to close . we continue to conduct sales through our online “ click & collect ” program , which allows vehicle sales without showroom access . despite showroom closures in the u.k. during the fourth quarter of 2020 , our uk dealers experienced a 5.6 % increase in gross profit when compared to the fourth quarter of 2019 driven by an increase in gross profit per unit and sales through our e-commerce channels . story_separator_special_tag we record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers . sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale . rebates and other incentives offered directly to us by manufacturers are recognized as a reduction of cost of sales . reimbursements of qualified advertising expenses are treated as a reduction of selling , general , and administrative expenses . the amounts received under certain manufacturer rebate and incentive programs are based on the attainment of program objectives , and such earnings are recognized either upon the sale of the vehicle for which the award was received or upon attainment of the particular program goals if not associated with individual vehicles . taxes collected from customers and remitted to governmental authorities are recorded on a net basis ( excluded from revenue ) . during 2020 , 2019 , and 2018 , we earned $ 588.7 million , $ 698.4 million , and $ 699.4 million , respectively , of rebates , incentives , and reimbursements from manufacturers , of which $ 575.4 million , $ 679.2 million , and $ 680.0 million , respectively , was recorded as a reduction of cost of sales . the remaining $ 13.3 million , $ 19.2 million , and $ 19.4 million was recorded as a reduction of selling , general , and administrative expenses during 2020 , 2019 , and 2018 , respectively . dealership finance and insurance sales . subsequent to the sale of a vehicle to a customer , we sell installment sale contracts to various financial institutions on a non-recourse basis ( with specified exceptions ) to mitigate the risk of default . we receive a commission from the lender equal to either the difference between the interest rate charged to the customer and the interest rate set by the financing institution or a flat fee . we also receive commissions for facilitating the sale of various products to customers , including guaranteed vehicle protection insurance , vehicle theft protection , and extended service contracts . these commissions are recorded as revenue at a point in time when the customer enters into the contract . payment is typically due and collected within 30 days subsequent to the execution of the contract with the customer . in the case of finance contracts , a customer may prepay or fail to pay their contract , thereby terminating the contract . customers may also terminate extended service contracts and other insurance products , which are fully paid at purchase , and become eligible for refunds of unused premiums . in these circumstances , a portion of the commissions we received may be charged back based on the terms of the contracts . the revenue we record relating to these transactions is net of an estimate of the amount of chargebacks we will be required to pay . our estimate is based upon our historical experience with similar contracts , including the impact of refinance and default rates on retail finance contracts and 40 cancellation rates on extended service contracts and other insurance products . aggregate reserves relating to chargeback activity were $ 28.7 million and $ 26.6 million as of december 31 , 2020 , and december 31 , 2019 , respectively . commercial vehicle distribution . we record revenue from the distribution of vehicles , engines , and other products at a point in time when delivered , which is when the transfer of title , risks , and rewards of ownership and control are considered passed to the customer . we record revenue for service or repair work over time as work is completed and when parts are delivered to our customers . for our long-term power generation contracts , we record revenue over time as services are provided in accordance with contract milestones . refer to the disclosures provided in part ii , item 8 , note 2 of the notes to our consolidated financial statements for additional detail on revenue recognition . impairment testing other indefinite-lived intangible assets are assessed for impairment annually on october 1 and upon the occurrence of an indicator of impairment through a comparison of its carrying amount and estimated fair value . these indefinite-lived intangible assets relate to franchise agreements with vehicle manufacturers and distributors , which represent the estimated value of franchises acquired in business combinations , and distribution agreements with commercial vehicle manufacturers , which represent the estimated value for distribution rights acquired in business combinations . an indicator of impairment exists if the carrying value exceeds its estimated fair value , and an impairment loss may be recognized up to that excess . the fair value is determined using a discounted cash flow approach , which includes assumptions about revenue and profitability growth , profit margins , and the cost of capital . we also evaluate , in connection with the annual impairment testing , whether events and circumstances continue to support our assessment that the other indefinite-lived intangible assets continue to have an indefinite life . goodwill impairment is assessed at the reporting unit level annually on october 1 and upon the occurrence of an indicator of impairment . our operations are organized by management into operating segments by line of business and geography . we have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting : ( i ) retail automotive , consisting of our retail automotive dealership operations ; ( ii ) retail commercial truck , consisting of our retail commercial truck dealership operations in the u.s. and canada ; ( iii ) other , consisting of our commercial vehicle and power systems distribution operations and other non-automotive consolidated operations ; and ( iv ) non-automotive investments , consisting of our equity method investments in non-automotive operations which includes
| cash flows the following table summarizes the changes in our cash provided by ( used in ) operating , investing , and financing activities . the major components of these changes are discussed below . replace_table_token_23_th cash flows from continuing operating activities cash flows from continuing operating activities includes net income , as adjusted for non-cash items and the effects of changes in working capital . our cash flows from continuing operating activities were positively impacted during the year ended december 31 , 2020 , due to deferrals of floorplan interest , sales and use tax , and mortgage interest resulting from covid-19-related relief provided by our lenders and government jurisdictions . we finance substantially all of the commercial vehicles we purchase for distribution , new vehicles for retail sale , and a portion of our used vehicle inventories for retail sale under floor plan and other revolving arrangements with various 55 lenders , including the captive finance companies associated with automotive manufacturers . we retain the right to select which , if any , financing source to utilize in connection with the procurement of vehicle inventories . many vehicle manufacturers provide vehicle financing for the dealers representing their brands ; however , it is not a requirement that we utilize this financing . historically , our floor plan finance source has been based on aggregate pricing considerations . in accordance with generally accepted accounting principles relating to the statement of cash flows , we report all cash flows arising in connection with floor plan notes payable with the manufacturer of a particular new vehicle as an operating activity in our statement of cash flows , and we report all cash flows arising in connection with floor plan notes payable to a party other than the manufacturer of a particular new vehicle , all floor plan notes payable relating to pre-owned vehicles , and all floor plan notes payable related to our commercial vehicles in australia and new zealand as a financing activity in our statement of cash flows . currently , the majority of our non-trade vehicle financing is with other manufacturer captive lenders .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes the changes in our cash provided by ( used in ) operating , investing , and financing activities . the major components of these changes are discussed below . replace_table_token_23_th cash flows from continuing operating activities cash flows from continuing operating activities includes net income , as adjusted for non-cash items and the effects of changes in working capital . our cash flows from continuing operating activities were positively impacted during the year ended december 31 , 2020 , due to deferrals of floorplan interest , sales and use tax , and mortgage interest resulting from covid-19-related relief provided by our lenders and government jurisdictions . we finance substantially all of the commercial vehicles we purchase for distribution , new vehicles for retail sale , and a portion of our used vehicle inventories for retail sale under floor plan and other revolving arrangements with various 55 lenders , including the captive finance companies associated with automotive manufacturers . we retain the right to select which , if any , financing source to utilize in connection with the procurement of vehicle inventories . many vehicle manufacturers provide vehicle financing for the dealers representing their brands ; however , it is not a requirement that we utilize this financing . historically , our floor plan finance source has been based on aggregate pricing considerations . in accordance with generally accepted accounting principles relating to the statement of cash flows , we report all cash flows arising in connection with floor plan notes payable with the manufacturer of a particular new vehicle as an operating activity in our statement of cash flows , and we report all cash flows arising in connection with floor plan notes payable to a party other than the manufacturer of a particular new vehicle , all floor plan notes payable relating to pre-owned vehicles , and all floor plan notes payable related to our commercial vehicles in australia and new zealand as a financing activity in our statement of cash flows . currently , the majority of our non-trade vehicle financing is with other manufacturer captive lenders .
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Suspicious Activity Report : beginning in the first quarter of 2020 , we implemented a hiring freeze and expense reductions across the company , including the postponement and elimination of an estimated $ 150 million in capital expenditures . we furloughed 35 approximately 15,000 employees in april and may in various countries , though we returned most of those employees to work during the course of the year . we also reduced our workforce by approximately 3,300 employees or 12.4 % compared to december 31 , 2019. during 2020 , many of our employees who were not furloughed worked reduced hours and experienced pay cuts , including a six-month 100 % reduction in salary for our ceo and president and 25 % temporary reductions in salary for our other named executive officers . in addition , our board of directors waived six months of board service fees in 2020. the compensation levels for our executive officers and board of directors have since returned to their pre-covid-19 levels . most of our manufacturer partners began suspending production beginning in late march 2020 , and production disruptions continued into the second quarter of 2020. these disruptions resulted in lower inventory levels , in particular for new vehicles and limited inventory of certain models . our manufacturer partners began providing us with additional incentive support in march 2020 , and our manufacturer and lending partners have provided support to retail customers , such as increased incentives , payment deferrals , as well as 0 % financing on certain vehicles and term lengths . while production has improved , the level of new vehicle inventory remains well below historical levels , which has contributed to increased gross profit on vehicles sold . united states – beginning in march 2020 , shelter-in-place rules in many states either required we close dealerships or limit our automotive dealership operations to essential services . virtual/online sales of new and used vehicles remained available in all locations , while the service departments remained open to support critical transportation needs . in may 2020 , many shelter-in-place rules began to expire , and restrictions were slowly lifted in many states allowing us to reopen dealerships all of which remain open , subject in certain locations to personnel capacity limits . for the year ended december 31 , 2020 , new and used retail automotive gross profit per unit increased 19.5 % and 16.8 % , primarily due to inventory shortages and additional manufacturer incentives , while our automotive dealerships experienced a 14.4 % decrease in unit volume and a 12.5 % decrease in service and parts revenues compared to the prior year on a same-store basis . our u.s. used vehicle supercenters experienced a same-store used unit sales decline of 26.9 % in 2020 , largely attributable to lower inventory and the covid-19 pandemic . commercial truck dealership sales and service operations were classified as essential businesses and remained open throughout 2020 in most locations around the u.s. and canada providing services to our customers . for the year ended december 31 , 2020 , the north american class 6-8 retail sales market declined 29.6 % , and our new same-store unit sales and revenue declined 10.0 % and 5.2 % , respectively , during the same period . penske transportation solutions – we have a 28.9 % ownership interest in penske transportation solutions ( `` pts `` ) . as an integral part of the north american supply chain , pts has been generally classified as essential by governmental authorities which allowed pts to remain operating in much of its business , providing crucial supply chain and transportation services to its customers . while its full-service leasing and contract maintenance businesses remained consistent , commercial rental utilization slowed during the second quarter of 2020 but increased with the expirations of the shelter-in-place orders . in the third quarter of 2020 , pts began to experience increased levels of utilization and profitability as business conditions improved . in its logistics services business , throughout 2020 , pts experienced heavy volumes in the grocery sector which were offset by plant closings in automotive and manufacturing . in the third quarter of 2020 , most of pts ' logistics customers returned to normal operations , generating strong results . pts has also experienced improved remarketing results as truck prices improved in response to limited inventory . in response to the covid-19 pandemic , pts initially furloughed over 5,000 employees , most of which returned to work . pts also reduced executive salaries by up to 30 % , which reductions have been eliminated . united kingdom – all dealerships closed on march 24 , 2020 , in accordance with government orders , though we provided service and parts operations on an emergency basis . over 90 % of the employees in the u.k. were placed on furlough beginning march 24 , 2020. however , we opened substantially all service and parts operations in mid-may 2020 and showrooms in early june 2020. during the fourth quarter of 2020 and continuing into 2021 , in response to increased incidence of the covid-19 pandemic , certain parts of the u.k. reinstated shelter-in-place orders which required our dealerships to close . we continue to conduct sales through our online “ click & collect ” program , which allows vehicle sales without showroom access . despite showroom closures in the u.k. during the fourth quarter of 2020 , our uk dealers experienced a 5.6 % increase in gross profit when compared to the fourth quarter of 2019 driven by an increase in gross profit per unit and sales through our e-commerce channels . story_separator_special_tag we record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers . sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale . rebates and other incentives offered directly to us by manufacturers are recognized as a reduction of cost of sales . reimbursements of qualified advertising expenses are treated as a reduction of selling , general , and administrative expenses . the amounts received under certain manufacturer rebate and incentive programs are based on the attainment of program objectives , and such earnings are recognized either upon the sale of the vehicle for which the award was received or upon attainment of the particular program goals if not associated with individual vehicles . taxes collected from customers and remitted to governmental authorities are recorded on a net basis ( excluded from revenue ) . during 2020 , 2019 , and 2018 , we earned $ 588.7 million , $ 698.4 million , and $ 699.4 million , respectively , of rebates , incentives , and reimbursements from manufacturers , of which $ 575.4 million , $ 679.2 million , and $ 680.0 million , respectively , was recorded as a reduction of cost of sales . the remaining $ 13.3 million , $ 19.2 million , and $ 19.4 million was recorded as a reduction of selling , general , and administrative expenses during 2020 , 2019 , and 2018 , respectively . dealership finance and insurance sales . subsequent to the sale of a vehicle to a customer , we sell installment sale contracts to various financial institutions on a non-recourse basis ( with specified exceptions ) to mitigate the risk of default . we receive a commission from the lender equal to either the difference between the interest rate charged to the customer and the interest rate set by the financing institution or a flat fee . we also receive commissions for facilitating the sale of various products to customers , including guaranteed vehicle protection insurance , vehicle theft protection , and extended service contracts . these commissions are recorded as revenue at a point in time when the customer enters into the contract . payment is typically due and collected within 30 days subsequent to the execution of the contract with the customer . in the case of finance contracts , a customer may prepay or fail to pay their contract , thereby terminating the contract . customers may also terminate extended service contracts and other insurance products , which are fully paid at purchase , and become eligible for refunds of unused premiums . in these circumstances , a portion of the commissions we received may be charged back based on the terms of the contracts . the revenue we record relating to these transactions is net of an estimate of the amount of chargebacks we will be required to pay . our estimate is based upon our historical experience with similar contracts , including the impact of refinance and default rates on retail finance contracts and 40 cancellation rates on extended service contracts and other insurance products . aggregate reserves relating to chargeback activity were $ 28.7 million and $ 26.6 million as of december 31 , 2020 , and december 31 , 2019 , respectively . commercial vehicle distribution . we record revenue from the distribution of vehicles , engines , and other products at a point in time when delivered , which is when the transfer of title , risks , and rewards of ownership and control are considered passed to the customer . we record revenue for service or repair work over time as work is completed and when parts are delivered to our customers . for our long-term power generation contracts , we record revenue over time as services are provided in accordance with contract milestones . refer to the disclosures provided in part ii , item 8 , note 2 of the notes to our consolidated financial statements for additional detail on revenue recognition . impairment testing other indefinite-lived intangible assets are assessed for impairment annually on october 1 and upon the occurrence of an indicator of impairment through a comparison of its carrying amount and estimated fair value . these indefinite-lived intangible assets relate to franchise agreements with vehicle manufacturers and distributors , which represent the estimated value of franchises acquired in business combinations , and distribution agreements with commercial vehicle manufacturers , which represent the estimated value for distribution rights acquired in business combinations . an indicator of impairment exists if the carrying value exceeds its estimated fair value , and an impairment loss may be recognized up to that excess . the fair value is determined using a discounted cash flow approach , which includes assumptions about revenue and profitability growth , profit margins , and the cost of capital . we also evaluate , in connection with the annual impairment testing , whether events and circumstances continue to support our assessment that the other indefinite-lived intangible assets continue to have an indefinite life . goodwill impairment is assessed at the reporting unit level annually on october 1 and upon the occurrence of an indicator of impairment . our operations are organized by management into operating segments by line of business and geography . we have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting : ( i ) retail automotive , consisting of our retail automotive dealership operations ; ( ii ) retail commercial truck , consisting of our retail commercial truck dealership operations in the u.s. and canada ; ( iii ) other , consisting of our commercial vehicle and power systems distribution operations and other non-automotive consolidated operations ; and ( iv ) non-automotive investments , consisting of our equity method investments in non-automotive operations which includes
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1,079 | the series awarrants contain a fundamental transactions provision that permitted their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control story_separator_special_tag financial condition and r esults of operations the following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this annual report on form 10-k. this annual report on form 10-k contains “ forward-looking statements ” within the meaning of section 21e of the securities exchange act of 1934 , as amended , or the exchange act . these statements are often identified by the use of words such as “ may , ” “ will , ” “ expect , ” “ believe , ” “ anticipate , ” “ intend , ” “ could , ” “ should , ” “ estimate , ” “ plan , ” or “ continue , ” and similar expressions or variations . such forward-looking statements are subject to risks , uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements . factors that could cause or contribute to such differences include , but are not limited to , those discussed in the section titled “ risk factors , ” set forth in part i , item 1a of this annual report on form 10-k and elsewhere in this report . the forward-looking statements in this annual report on form 10-k represent our views as of the date of this annual report on form 10-k. we anticipate that subsequent events and developments will cause our views to change . however , while we may elect to update these forward-looking statements at some point in the future , we have no current intention of doing so except to the extent required by applicable law . you should , therefore , not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this annual report on form 10-k. business overview we are focused on the development and commercialization of novel therapeutics for the treatment of rare diseases . our lead candidate , diazoxide choline controlled release tablits , or dccr , a once-daily oral tablet for the treatment of prader-willi syndrome , or pwc , is currently being evaluated in a phase iii clinical development program . we initially established our operations as a diversified healthcare company that developed and commercialized innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly and which can lead to adverse neurological outcomes ; and , products that included temperature probes , scales , surgical tables , and patient surfaces . on march 7 , 2017 , we completed a merger , or the merger , with essentialis . essentialis 's efforts prior to the merger were focused primarily on developing and testing product candidates that target the atp-sensitive potassium channel , a metabolically-regulated membrane protein whose modulation has the potential to impact a wide range of rare metabolic , cardiovascular , and cns diseases . essentialis had tested dccr as a treatment for pws , a complex metabolic/neurobehavioral disorder . dccr has orphan designation for the treatment of pws in the united states , or u.s. , as well as in the european union , or e.u . subsequent to the merger with essentialis described above , we determined to divest , sell or otherwise dispose of its business efforts focused on the development and commercialization of its serenz and cosense technologies . accordingly , and pursuant to asc 205-20-45-10 , the assets and liabilities related to the discontinued activities of cosense and serenz were presented separately in the balance sheet as held for sale items , and the related operations reported herein for the cosense and serenz activities are reported as discontinued operations in the statements of operations . 55 on december 4 , 2017 , we and our then wholly-owned subsidiary capnia , entered into a joint venture with optasia healthcare limite d , or oahl , with the purpose of developing and commercializing cosense with the intent to transfer ownership of capnia to oahl . during october 2018 , capnia issued 1,690,322 shares of its common stock to oahl , representing 53 % of its outstanding shares , aft er which we no longer held a controlling interest in capnia . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our consolidated balance she et . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon investments llc , or sinon . following the transaction , the company has no interest remaining in capnia and the previous joint venture agreement with oahl has been terminated . on july 30 , 2018 , the fda has granted fast track designation to dccr for the treatment of pws . we are currently conducting a phase iii clinical trial of dccr for the treatment of pws . as of december 31 , 2019 , we had an accumulated deficit of $ 157.8 million , primarily as a result of research and development and general and administrative expenses . story_separator_special_tag results of continuing operations comparison of the years ended december 31 , 2019 and 2018 from continuing operations replace_table_token_0_th revenue we have not commenced commercialization of dccr , our current sole novel therapeutic product , and accordingly , through december 31 , 2019 , have generated no revenue in continuing operations . research and development expense research and development expense of $ 16.3 million for the year ended december 31 , 2019 increased by $ 9.1 million over 2018 resulting primarily from the initiation of the phase iii clinical trial in may 2018. as of december 31 , 2019 , we have 29 clinical trial sites initiated compared to 13 as of december 31 , 2018. as a result , we have 60 incurred increased clinical site costs , con sulting costs , lab costs , and manufacturing costs for dccr production . the company announced the completion of target enrollment in destiny pws , the ongoing phase iii trial of dccr in prader willi syndrome in january 2020. general and administrative expense general and administrative expense of $ 6.9 million during 2019 increased by approximately $ 374,000 from 2018. the slight increase was due to a general increase in the level of operations during the year and primarily consisted of an increase in personnel related costs . change in fair value of contingent consideration we are obligated to make cash payments of up to a maximum of $ 30 million to essentialis stockholders upon the achievement of certain future commercial milestones associated with the sale of essentialis ' product in accordance with the terms of the essentialis merger agreement . the fair value of the liability for the contingent consideration payable by us achieving the commercial sales milestones of $ 100 million and $ 200 million was estimated to be $ 5.9 million as of december 31 , 2019 , an approximate $ 289,000 increase from the estimate as of december 31 , 2018. during 2018 the estimate increased approximately $ 567,000 from the liability of $ 5.1 million estimated at december 31 , 2017. other ( expense ) income other expense of approximately $ 7.3 million in 2019 increased $ 9.7 million from other income of $ 2.5 million during 2018. the increase in other ( expense ) income was primarily due to a net increase in the fair value of warrant liabilities during 2019 compared to a net decrease in 2018 , resulting in a net increase of $ 7.5 million recognized in other ( expense ) income . in addition there was a $ 2.0 million gain recognized during 2018 on the deconsolidation of capnia upon the issuance of majority shares to oahl , and an approximately $ 318,000 higher loss from our minority interest investment in capnia during 2019 compared to 2018. the loss recorded on our minority interest investment in capnia during 2019 includes approximately $ 511,000 for our share of capnia 's net losses during the period , partially offset by a gain of approximately $ 33,000 recognized upon the sale of the investment . these increases were partially offset by an increase in interest and other income of $ 50,000 . 61 results of discontinued operations discontinued operations during 2018 consist of our activities previously dedicated to the development and commercialization of innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly ; and products that included temperature probes , scales , surgical tables and patient surfaces . in march 2017 , we determined to divest , sell or otherwise dispose of the cosense , neo force , inc. , and serenz businesses in order to focus on the development and commercialization of novel therapeutics for the treatment of rare diseases . the discontinued operations for the development and commercialization of innovative diagnostic devices and therapeutics are summarized below . replace_table_token_1_th all discontinued operations activity during 2018 related to capnia and its cosense products . during october 2018 , capnia issued 53 % of its outstanding shares of common stock to oahl , leaving us with a noncontrolling interest . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our condensed consolidated balance sheet . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon . as capnia is no longer a consolidated entity of ours , there is no corresponding discontinued operations activity during 2019. story_separator_special_tag to continue incurring losses for the foreseeable future and will be required to raise additional capital to pursue our therapeutic product development initiatives . these conditions raise substantial doubt about our ability to continue as a going concern for a period of one year from the date of this report . discontinued operations cash used in operating activities there were no discontinued operations during 2019. during 2018 , we used net cash of $ 1.4 million for discontinued operating activities . this usage was primarily a result of the $ 1.5 million net loss for discontinued operations , partially offset by the change in working capital balances during the year and non-cash depreciation expense . cash used in investing activities there were no investing activities related to discontinued operations during 2019. during 2018 , we used approximately $ 172,000 of cash for discontinued investing activities , representing the net cash reduction for the deconsolidation of capnia , inc. upon the transfer of the majority share ownership in october 2018. cash provided by financing activities there were no financing activities related to discontinued operations during 2019. net cash provided by financing activities related to discontinued operations was $ 1.5
| liquidity and capital resources we had a net loss of $ 30.8 million during 2019 and an accumulated deficit of $ 157.8 million at december 31 , 2019 from having incurred losses since our inception . we had $ 16.2 million of working capital at december 31 , 2019 and used $ 17.4 million of cash in operating activities during 2019. we have financed our operations principally through issuances of equity securities . on october 25 , 2019 , we sold 12,841,667 shares of common stock in an underwritten public offering at a price of $ 1.20 per share for net proceeds of $ 14.5 million . we expect to continue incurring losses for the foreseeable future and will be required to raise additional capital to complete our clinical trials , pursue product development initiatives and penetrate markets for the sale of our products . we believe that we will continue to have access to capital resources through possible public or private equity offerings , debt financings , corporate collaborations or other means , but the access to such capital resources is uncertain and is not assured . if we are unable to secure additional capital , we may be required to curtail our clinical trials and development of new products and take additional measures to reduce costs in order to conserve our cash in amounts sufficient to sustain operations and meet our obligations . these measures could cause significant delays in our efforts to complete clinical trials and commercialize our products , which is critical to the realization of our business plan and our future operations .
| 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. |
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 we had a net loss of $ 30.8 million during 2019 and an accumulated deficit of $ 157.8 million at december 31 , 2019 from having incurred losses since our inception . we had $ 16.2 million of working capital at december 31 , 2019 and used $ 17.4 million of cash in operating activities during 2019. we have financed our operations principally through issuances of equity securities . on october 25 , 2019 , we sold 12,841,667 shares of common stock in an underwritten public offering at a price of $ 1.20 per share for net proceeds of $ 14.5 million . we expect to continue incurring losses for the foreseeable future and will be required to raise additional capital to complete our clinical trials , pursue product development initiatives and penetrate markets for the sale of our products . we believe that we will continue to have access to capital resources through possible public or private equity offerings , debt financings , corporate collaborations or other means , but the access to such capital resources is uncertain and is not assured . if we are unable to secure additional capital , we may be required to curtail our clinical trials and development of new products and take additional measures to reduce costs in order to conserve our cash in amounts sufficient to sustain operations and meet our obligations . these measures could cause significant delays in our efforts to complete clinical trials and commercialize our products , which is critical to the realization of our business plan and our future operations .
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Suspicious Activity Report : the series awarrants contain a fundamental transactions provision that permitted their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control story_separator_special_tag financial condition and r esults of operations the following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this annual report on form 10-k. this annual report on form 10-k contains “ forward-looking statements ” within the meaning of section 21e of the securities exchange act of 1934 , as amended , or the exchange act . these statements are often identified by the use of words such as “ may , ” “ will , ” “ expect , ” “ believe , ” “ anticipate , ” “ intend , ” “ could , ” “ should , ” “ estimate , ” “ plan , ” or “ continue , ” and similar expressions or variations . such forward-looking statements are subject to risks , uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements . factors that could cause or contribute to such differences include , but are not limited to , those discussed in the section titled “ risk factors , ” set forth in part i , item 1a of this annual report on form 10-k and elsewhere in this report . the forward-looking statements in this annual report on form 10-k represent our views as of the date of this annual report on form 10-k. we anticipate that subsequent events and developments will cause our views to change . however , while we may elect to update these forward-looking statements at some point in the future , we have no current intention of doing so except to the extent required by applicable law . you should , therefore , not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this annual report on form 10-k. business overview we are focused on the development and commercialization of novel therapeutics for the treatment of rare diseases . our lead candidate , diazoxide choline controlled release tablits , or dccr , a once-daily oral tablet for the treatment of prader-willi syndrome , or pwc , is currently being evaluated in a phase iii clinical development program . we initially established our operations as a diversified healthcare company that developed and commercialized innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly and which can lead to adverse neurological outcomes ; and , products that included temperature probes , scales , surgical tables , and patient surfaces . on march 7 , 2017 , we completed a merger , or the merger , with essentialis . essentialis 's efforts prior to the merger were focused primarily on developing and testing product candidates that target the atp-sensitive potassium channel , a metabolically-regulated membrane protein whose modulation has the potential to impact a wide range of rare metabolic , cardiovascular , and cns diseases . essentialis had tested dccr as a treatment for pws , a complex metabolic/neurobehavioral disorder . dccr has orphan designation for the treatment of pws in the united states , or u.s. , as well as in the european union , or e.u . subsequent to the merger with essentialis described above , we determined to divest , sell or otherwise dispose of its business efforts focused on the development and commercialization of its serenz and cosense technologies . accordingly , and pursuant to asc 205-20-45-10 , the assets and liabilities related to the discontinued activities of cosense and serenz were presented separately in the balance sheet as held for sale items , and the related operations reported herein for the cosense and serenz activities are reported as discontinued operations in the statements of operations . 55 on december 4 , 2017 , we and our then wholly-owned subsidiary capnia , entered into a joint venture with optasia healthcare limite d , or oahl , with the purpose of developing and commercializing cosense with the intent to transfer ownership of capnia to oahl . during october 2018 , capnia issued 1,690,322 shares of its common stock to oahl , representing 53 % of its outstanding shares , aft er which we no longer held a controlling interest in capnia . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our consolidated balance she et . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon investments llc , or sinon . following the transaction , the company has no interest remaining in capnia and the previous joint venture agreement with oahl has been terminated . on july 30 , 2018 , the fda has granted fast track designation to dccr for the treatment of pws . we are currently conducting a phase iii clinical trial of dccr for the treatment of pws . as of december 31 , 2019 , we had an accumulated deficit of $ 157.8 million , primarily as a result of research and development and general and administrative expenses . story_separator_special_tag results of continuing operations comparison of the years ended december 31 , 2019 and 2018 from continuing operations replace_table_token_0_th revenue we have not commenced commercialization of dccr , our current sole novel therapeutic product , and accordingly , through december 31 , 2019 , have generated no revenue in continuing operations . research and development expense research and development expense of $ 16.3 million for the year ended december 31 , 2019 increased by $ 9.1 million over 2018 resulting primarily from the initiation of the phase iii clinical trial in may 2018. as of december 31 , 2019 , we have 29 clinical trial sites initiated compared to 13 as of december 31 , 2018. as a result , we have 60 incurred increased clinical site costs , con sulting costs , lab costs , and manufacturing costs for dccr production . the company announced the completion of target enrollment in destiny pws , the ongoing phase iii trial of dccr in prader willi syndrome in january 2020. general and administrative expense general and administrative expense of $ 6.9 million during 2019 increased by approximately $ 374,000 from 2018. the slight increase was due to a general increase in the level of operations during the year and primarily consisted of an increase in personnel related costs . change in fair value of contingent consideration we are obligated to make cash payments of up to a maximum of $ 30 million to essentialis stockholders upon the achievement of certain future commercial milestones associated with the sale of essentialis ' product in accordance with the terms of the essentialis merger agreement . the fair value of the liability for the contingent consideration payable by us achieving the commercial sales milestones of $ 100 million and $ 200 million was estimated to be $ 5.9 million as of december 31 , 2019 , an approximate $ 289,000 increase from the estimate as of december 31 , 2018. during 2018 the estimate increased approximately $ 567,000 from the liability of $ 5.1 million estimated at december 31 , 2017. other ( expense ) income other expense of approximately $ 7.3 million in 2019 increased $ 9.7 million from other income of $ 2.5 million during 2018. the increase in other ( expense ) income was primarily due to a net increase in the fair value of warrant liabilities during 2019 compared to a net decrease in 2018 , resulting in a net increase of $ 7.5 million recognized in other ( expense ) income . in addition there was a $ 2.0 million gain recognized during 2018 on the deconsolidation of capnia upon the issuance of majority shares to oahl , and an approximately $ 318,000 higher loss from our minority interest investment in capnia during 2019 compared to 2018. the loss recorded on our minority interest investment in capnia during 2019 includes approximately $ 511,000 for our share of capnia 's net losses during the period , partially offset by a gain of approximately $ 33,000 recognized upon the sale of the investment . these increases were partially offset by an increase in interest and other income of $ 50,000 . 61 results of discontinued operations discontinued operations during 2018 consist of our activities previously dedicated to the development and commercialization of innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly ; and products that included temperature probes , scales , surgical tables and patient surfaces . in march 2017 , we determined to divest , sell or otherwise dispose of the cosense , neo force , inc. , and serenz businesses in order to focus on the development and commercialization of novel therapeutics for the treatment of rare diseases . the discontinued operations for the development and commercialization of innovative diagnostic devices and therapeutics are summarized below . replace_table_token_1_th all discontinued operations activity during 2018 related to capnia and its cosense products . during october 2018 , capnia issued 53 % of its outstanding shares of common stock to oahl , leaving us with a noncontrolling interest . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our condensed consolidated balance sheet . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon . as capnia is no longer a consolidated entity of ours , there is no corresponding discontinued operations activity during 2019. story_separator_special_tag to continue incurring losses for the foreseeable future and will be required to raise additional capital to pursue our therapeutic product development initiatives . these conditions raise substantial doubt about our ability to continue as a going concern for a period of one year from the date of this report . discontinued operations cash used in operating activities there were no discontinued operations during 2019. during 2018 , we used net cash of $ 1.4 million for discontinued operating activities . this usage was primarily a result of the $ 1.5 million net loss for discontinued operations , partially offset by the change in working capital balances during the year and non-cash depreciation expense . cash used in investing activities there were no investing activities related to discontinued operations during 2019. during 2018 , we used approximately $ 172,000 of cash for discontinued investing activities , representing the net cash reduction for the deconsolidation of capnia , inc. upon the transfer of the majority share ownership in october 2018. cash provided by financing activities there were no financing activities related to discontinued operations during 2019. net cash provided by financing activities related to discontinued operations was $ 1.5
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1,080 | the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) . story_separator_special_tag the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) .
| liquidity and capital resources as of december 31 , 2013 , we had a working capital deficit of $ 5,402,299 as compared to december 31 , 2012 of $ 724,122 , an increase of $ 4,678,177. the increase in working capital deficit for the year ended december 31 , 2013 , is primarily attributed to an increase in the company 's liabilities related to accrued payables and expenses of roughly $ 480,655 , accrued payables and expenses to related parties of $ 123,493 , liability to be settled in stock of $ 103,333 , derivative liabilities of $ 3,250,672 , and additional convertible notes of $ 697,688. net cash used in operating activities for the years ended december 31 , 2013 and 2012 , was $ ( 331,349 ) and $ ( 113,526 ) , respectively . the net loss for the years ended december 31 , 2013 and 2012 was $ ( 2,458,632 ) and $ ( 627,349 ) , respectively . net cash provided by investing activities for the year ended december 31 , 2013 was $ 14,806 , as compared to the year ended december 31 , 2012 was $ 42,500. the company received cash of $ 1,131 from merger of stl marketing group , inc. and versant corporation and $ 13,675 for a loan to related party .
| 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. |
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 as of december 31 , 2013 , we had a working capital deficit of $ 5,402,299 as compared to december 31 , 2012 of $ 724,122 , an increase of $ 4,678,177. the increase in working capital deficit for the year ended december 31 , 2013 , is primarily attributed to an increase in the company 's liabilities related to accrued payables and expenses of roughly $ 480,655 , accrued payables and expenses to related parties of $ 123,493 , liability to be settled in stock of $ 103,333 , derivative liabilities of $ 3,250,672 , and additional convertible notes of $ 697,688. net cash used in operating activities for the years ended december 31 , 2013 and 2012 , was $ ( 331,349 ) and $ ( 113,526 ) , respectively . the net loss for the years ended december 31 , 2013 and 2012 was $ ( 2,458,632 ) and $ ( 627,349 ) , respectively . net cash provided by investing activities for the year ended december 31 , 2013 was $ 14,806 , as compared to the year ended december 31 , 2012 was $ 42,500. the company received cash of $ 1,131 from merger of stl marketing group , inc. and versant corporation and $ 13,675 for a loan to related party .
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Suspicious Activity Report : the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) . story_separator_special_tag the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) .
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1,081 | our interests in enlink midstream partners , lp and enlink midstream holdings , lp consist of the following : 17,431,152 common units representing an aggregate 7 % limited partner interest in the partnership as of december 31 , 2014 ; 100.0 % ownership interest in enlink midstream partners gp , llc , the general partner of the partnership , which owns a 0.7 % general partner interest as of december 31 , 2014 and all of the incentive distribution rights in the partnership ; and 50.0 % limited partner interest in midstream holdings as of december 31 , 2014 and 25 % limited partner interest in midstream holdings as of february 17 , 2015. each of the partnership and midstream holdings is required by its partnership agreement to distribute all its cash on hand at the end of each quarter , less reserves established by its general partner in its sole discretion to provide for the proper conduct of the partnership 's or midstream holdings ' business , as applicable , or to provide for future distributions . the incentive distribution rights in the partnership entitle us to receive an increasing percentage of cash distributed by the partnership as certain target distribution levels are reached . specifically , they entitle us to receive 13.0 % of all cash distributed in a quarter after each unit has received $ 0.25 for that quarter , 23.0 % of all cash distributed after each unit has received $ 0.3125 for that quarter and 48.0 % of all cash distributed after each unit has received $ 0.375 for that quarter . since we control the general partner interest in the partnership , we reflect our ownership interest in the partnership on a consolidated basis , which means that our financial results are combined with the partnership 's financial results and the results of our other subsidiaries . since the partnership controls midstream holdings through the ownership of its general partner , the financial results of the partnership consolidate all of midstream holdings ' financial results . our consolidated results of operations are derived from the results of operations of the partnership and also include our deferred taxes , interest of non-controlling partners in the partnership 's net income , interest income ( expense ) and general and administrative expenses not reflected in the partnership 's results of operations . accordingly , the discussion of our financial position and results of operations in this “ management 's discussion and analysis of financial condition and results of operations ” primarily reflects the operating activities and results of operations of the partnership and midstream holdings . the partnership primarily focuses on providing midstream energy services , including gathering , transmission , processing , fractionation , condensate stabilization , brine services and marketing to producers of natural gas , ngls , crude oil and condensate . the partnership 's midstream energy asset network includes approximately 8,800 miles of pipelines , thirteen natural gas processing plants , seven fractionators , 3.1 million barrels of ngl cavern storage , 11.0 bcf of natural gas storage , rail terminals , barge terminals , truck terminals and a fleet of approximately 100 trucks . the partnership manages and reports its activities primarily according to geography . the partnership has five reportable segments : ( 1 ) texas , which includes its 55 activities in north texas and the permian basin in west texas ; ( 2 ) oklahoma , which includes its activities in cana-woodford and arkoma-woodford shale areas ; ( 3 ) louisiana , which includes its pipelines , processing plants and ngl assets located in louisiana ; ( 4 ) orv , which includes its activities in the utica and marcellus shales and its equity interests in e2 energy services , llc , e2 appalachian compression , llc and e2 ohio compression ( collectively , “ e2 ” ) ; and ( 5 ) corporate segment , or corporate , which includes its equity investments in howard energy partners , or hep , in the eagle ford shale , its contractual right to the burdens and benefits associated with devon 's ownership interest in gcf in south texas and its general partnership property and expenses . the partnership manages its operations by focusing on gross operating margin because the partnership 's business is generally to purchase and resell natural gas , ngls , condensate and crude oil for a margin or to gather , process , transport or market natural gas , ngls , condensate and crude oil for a fee . in addition , the partnership earns a volume based fee for brine disposal services and condensate stabilization . the partnership defines gross operating margin as operating revenue minus cost of purchased gas , ngls , condensate and crude oil . gross operating margin is a non-generally accepted accounting principle , or non-gaap , financial measure and is explained in greater detail under “ non-gaap financial measures ” under “ item 6. selected financial data . ” the partnership 's gross operating margins are determined primarily by the volumes of natural gas gathered , transported , purchased and sold through its pipeline systems , processed at its processing facilities , the volumes of ngls handled at its fractionation facilities , the volumes of crude oil and condensate handled at its crude terminals , the volumes of crude oil and condensate gathered , transported , purchased and sold , the volume of brine disposed and the volumes of condensate stabilized . the partnership generates revenues from eight primary sources : purchasing and reselling or transporting natural gas and ngls on the pipeline systems it owns ; processing natural gas at its processing plants ; fractionating and marketing the recovered ngls ; providing compression services ; purchasing and reselling crude oil and condensate ; providing crude oil and condensate transportation and terminal services ; providing condensate stabilization services ; and providing brine disposal services . story_separator_special_tag the remaining 50 % of the class b units in e2 appalachian are owned by members of the e2 appalachian management team and are designed to provide such management team members with equity incentives . e2 investment . on october 10 , 2014 , we purchased 100 % of class a units and 50 % of class b units of e2 appalachian compression , llc owned by e2 management for $ 7.0 million and $ 5.5 million , respectively . e2 constructed three natural gas compressor stations and condensate stabilization facilities located in noble and monroe counties in the southern portion of the utica shale play in ohio . acquisitions coronado midstream . on february 1 , 2015 , the partnership entered into an agreement with reliance midstream , llc , a texas limited liability company ( “ reliance ” ) , windsor midstream llc , a delaware limited liability company ( “ windsor ” ) , wallace family partnership , lp , a texas limited partnership ( “ wallace ” ) , and ted collins , jr. , an individual residing in midland , texas ( “ collins ” and , collectively with reliance , windsor and wallace , the “ sellers , ” and each , a “ seller ” ) , and reliance , in its capacity as representative of the sellers , to acquire all of the equity interests in coronado midstream holdings llc , the parent company of coronado midstream llc , which owns natural gas gathering and processing facilities in the permian basin for approximately $ 600.0 million in cash and equity , subject to certain adjustments . coronado operates three cryogenic gas processing plants and a gas gathering system in the north midland basin including approximately 270 miles of gathering pipelines , 175 mmcf/d of processing capacity and 35,000 horsepower of compression . the coronado system is underpinned by long-term contracts , which include the dedication of production from over 190,000 acres . lpc crude oil marketing . on january 31 , 2015 , the partnership , through one of its wholly owned subsidiaries , acquired lpc , which has crude oil gathering , transportation and marketing operations in the permian basin , for approximately $ 100.0 million . lpc is an integrated crude oil logistics service provider with operation throughout the permian basin . lpc 's integrated logistics services are supported by 41 tractor trailers , 13 pipeline injection stations and 67 miles of crude oil gathering pipeline . 59 natural gas pipeline assets . on november 1 , 2014 , the partnership acquired gulf coast natural gas pipeline assets predominantly located in southern louisiana , for $ 234.0 million , subject to certain adjustments . these natural gas pipeline assets include the following : bridgeline system : approximately 990 miles of natural gas pipelines in southern louisiana with a total system capacity of approximately 900 mmcf/d ; sabine pipeline : approximately 130 miles of natural gas pipelines in texas and southern louisiana with a total capacity of approximately 300 mmcf/d ; chandeleur system : approximately 215 miles of offshore mississippi and alabama pipelines with a total capacity of approximately 300 mmcf/d ; storage assets : three caverns located in southern louisiana with a combined working capacity of approximately 11.0 bcf of natural gas , including two near sorrento , la with a capacity of approximately 4.0 bcf and one inactive cavern near napoleonville , la with approximately 7.0 bcf of capacity ; and henry hub : ownership and management of the title tracking services offered at the henry hub , the delivery location for the new york mercantile exchange ( the “ nymex ” ) natural gas futures contracts . henry hub is connected to 13 major interstate and intrastate natural gas pipeline and storage systems . issuance of common units by the partnership in november 2014 , the partnership issued 12,075,000 common units representing limited partner interests in the partnership at an offering price of $ 28.37 per unit for net proceeds of $ 332.3 million . the net proceeds from the common units offering were used for capital expenditures and general partnership purposes . in october 2014 , the partnership issued 1,016,322 common units to enlc representing limited partner interests in the partnership as partial consideration for e2 appalachian units . in may 2014 , the partnership entered into an equity distribution agreement ( the “ eda ” ) with bmo capital markets corp. ( “ bmocm ” ) . pursuant to the terms of the eda , the partnership may from time to time through bmocm , as its sales agent , sell common units representing limited partner interests having an aggregate offering price of up to $ 75.0 million . through december 31 , 2014 , the partnership sold an aggregate of 2.4 million common units under the eda , generating proceeds of approximately $ 71.9 million ( net of approximately $ 0.7 million of commissions to bmocm ) . the partnership used the net proceeds for general partnership purposes . on november 7 , 2014 , partnership entered into an equity distribution agreement ( the “ bmo eda ” ) with bmo capital markets corp. , merrill lynch , pierce , fenner & smith incorporated , citigroup global markets inc. , jefferies llc , raymond james & associates , inc. and rbc capital markets , llc ( collectively , the “ sales agents ” ) to sell up to $ 350.0 million in aggregate gross sales of the partnership 's common units representing limited partner interests from time to time through an “ at the market ” equity offering program . the partnership may also sell common units to any sales agent as principal for the sales agent 's own account at a price agreed upon at the time of sale . the partnership has no obligation to sell any of the common units under the bmo eda and may at any time suspend solicitation and
| liquidity and capital resources cash flows from operating activities . net cash provided by operating activities was $ 457.3 million , $ 330.3 million and $ 209.7 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . operating cash flows and changes in working capital for 2014 , 2013 and 2012 were as follows ( in millions ) : replace_table_token_10_th the primary reason for the increase in cash flows before working capital of $ 242.7 million from 2013 to 2014 relates to an increase in gross operating margin from the acquired legacy partnership assets and midstream holdings assets . the decrease in working capital for 2014 related to fluctuations in trade receivable and payable balances is due to timing of collection and payments and changes in inventory balances due to normal operating fluctuations . further , prior to march 7 , 2014 , all cash receipts for the predecessor were deposited into devon 's bank accounts , and all cash disbursements were made from these accounts . cash transactions handled by devon were reflected in intercompany advances between devon and the predecessor , all of which were settled through an adjustment to equity and reflected in cash flows from financing activities . subsequent to march 7 , 2014 , midstream holdings handles all of its cash transactions and the changes in working capital are reflected in our cash flows from operating activities . the increase in cash flows from 2013 to 2012 is primarily driven by the fluctuations in volume and price described previously in results of operations . 67 cash flows from investing activities . net cash used in investing activities was $ 1,041.3 million , $ 243.2 million and $ 352.4 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . our primary use of cash related to investing activities for the years ended december 31 , 2014 , 2013 and 2012 was acquisition costs and capital expenditures , net of accrued amounts , and an investment in equity investments as follows ( in millions ) : replace_table_token_11_th cash flows from 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. |
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 cash flows from operating activities . net cash provided by operating activities was $ 457.3 million , $ 330.3 million and $ 209.7 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . operating cash flows and changes in working capital for 2014 , 2013 and 2012 were as follows ( in millions ) : replace_table_token_10_th the primary reason for the increase in cash flows before working capital of $ 242.7 million from 2013 to 2014 relates to an increase in gross operating margin from the acquired legacy partnership assets and midstream holdings assets . the decrease in working capital for 2014 related to fluctuations in trade receivable and payable balances is due to timing of collection and payments and changes in inventory balances due to normal operating fluctuations . further , prior to march 7 , 2014 , all cash receipts for the predecessor were deposited into devon 's bank accounts , and all cash disbursements were made from these accounts . cash transactions handled by devon were reflected in intercompany advances between devon and the predecessor , all of which were settled through an adjustment to equity and reflected in cash flows from financing activities . subsequent to march 7 , 2014 , midstream holdings handles all of its cash transactions and the changes in working capital are reflected in our cash flows from operating activities . the increase in cash flows from 2013 to 2012 is primarily driven by the fluctuations in volume and price described previously in results of operations . 67 cash flows from investing activities . net cash used in investing activities was $ 1,041.3 million , $ 243.2 million and $ 352.4 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . our primary use of cash related to investing activities for the years ended december 31 , 2014 , 2013 and 2012 was acquisition costs and capital expenditures , net of accrued amounts , and an investment in equity investments as follows ( in millions ) : replace_table_token_11_th cash flows from financing activities .
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Suspicious Activity Report : our interests in enlink midstream partners , lp and enlink midstream holdings , lp consist of the following : 17,431,152 common units representing an aggregate 7 % limited partner interest in the partnership as of december 31 , 2014 ; 100.0 % ownership interest in enlink midstream partners gp , llc , the general partner of the partnership , which owns a 0.7 % general partner interest as of december 31 , 2014 and all of the incentive distribution rights in the partnership ; and 50.0 % limited partner interest in midstream holdings as of december 31 , 2014 and 25 % limited partner interest in midstream holdings as of february 17 , 2015. each of the partnership and midstream holdings is required by its partnership agreement to distribute all its cash on hand at the end of each quarter , less reserves established by its general partner in its sole discretion to provide for the proper conduct of the partnership 's or midstream holdings ' business , as applicable , or to provide for future distributions . the incentive distribution rights in the partnership entitle us to receive an increasing percentage of cash distributed by the partnership as certain target distribution levels are reached . specifically , they entitle us to receive 13.0 % of all cash distributed in a quarter after each unit has received $ 0.25 for that quarter , 23.0 % of all cash distributed after each unit has received $ 0.3125 for that quarter and 48.0 % of all cash distributed after each unit has received $ 0.375 for that quarter . since we control the general partner interest in the partnership , we reflect our ownership interest in the partnership on a consolidated basis , which means that our financial results are combined with the partnership 's financial results and the results of our other subsidiaries . since the partnership controls midstream holdings through the ownership of its general partner , the financial results of the partnership consolidate all of midstream holdings ' financial results . our consolidated results of operations are derived from the results of operations of the partnership and also include our deferred taxes , interest of non-controlling partners in the partnership 's net income , interest income ( expense ) and general and administrative expenses not reflected in the partnership 's results of operations . accordingly , the discussion of our financial position and results of operations in this “ management 's discussion and analysis of financial condition and results of operations ” primarily reflects the operating activities and results of operations of the partnership and midstream holdings . the partnership primarily focuses on providing midstream energy services , including gathering , transmission , processing , fractionation , condensate stabilization , brine services and marketing to producers of natural gas , ngls , crude oil and condensate . the partnership 's midstream energy asset network includes approximately 8,800 miles of pipelines , thirteen natural gas processing plants , seven fractionators , 3.1 million barrels of ngl cavern storage , 11.0 bcf of natural gas storage , rail terminals , barge terminals , truck terminals and a fleet of approximately 100 trucks . the partnership manages and reports its activities primarily according to geography . the partnership has five reportable segments : ( 1 ) texas , which includes its 55 activities in north texas and the permian basin in west texas ; ( 2 ) oklahoma , which includes its activities in cana-woodford and arkoma-woodford shale areas ; ( 3 ) louisiana , which includes its pipelines , processing plants and ngl assets located in louisiana ; ( 4 ) orv , which includes its activities in the utica and marcellus shales and its equity interests in e2 energy services , llc , e2 appalachian compression , llc and e2 ohio compression ( collectively , “ e2 ” ) ; and ( 5 ) corporate segment , or corporate , which includes its equity investments in howard energy partners , or hep , in the eagle ford shale , its contractual right to the burdens and benefits associated with devon 's ownership interest in gcf in south texas and its general partnership property and expenses . the partnership manages its operations by focusing on gross operating margin because the partnership 's business is generally to purchase and resell natural gas , ngls , condensate and crude oil for a margin or to gather , process , transport or market natural gas , ngls , condensate and crude oil for a fee . in addition , the partnership earns a volume based fee for brine disposal services and condensate stabilization . the partnership defines gross operating margin as operating revenue minus cost of purchased gas , ngls , condensate and crude oil . gross operating margin is a non-generally accepted accounting principle , or non-gaap , financial measure and is explained in greater detail under “ non-gaap financial measures ” under “ item 6. selected financial data . ” the partnership 's gross operating margins are determined primarily by the volumes of natural gas gathered , transported , purchased and sold through its pipeline systems , processed at its processing facilities , the volumes of ngls handled at its fractionation facilities , the volumes of crude oil and condensate handled at its crude terminals , the volumes of crude oil and condensate gathered , transported , purchased and sold , the volume of brine disposed and the volumes of condensate stabilized . the partnership generates revenues from eight primary sources : purchasing and reselling or transporting natural gas and ngls on the pipeline systems it owns ; processing natural gas at its processing plants ; fractionating and marketing the recovered ngls ; providing compression services ; purchasing and reselling crude oil and condensate ; providing crude oil and condensate transportation and terminal services ; providing condensate stabilization services ; and providing brine disposal services . story_separator_special_tag the remaining 50 % of the class b units in e2 appalachian are owned by members of the e2 appalachian management team and are designed to provide such management team members with equity incentives . e2 investment . on october 10 , 2014 , we purchased 100 % of class a units and 50 % of class b units of e2 appalachian compression , llc owned by e2 management for $ 7.0 million and $ 5.5 million , respectively . e2 constructed three natural gas compressor stations and condensate stabilization facilities located in noble and monroe counties in the southern portion of the utica shale play in ohio . acquisitions coronado midstream . on february 1 , 2015 , the partnership entered into an agreement with reliance midstream , llc , a texas limited liability company ( “ reliance ” ) , windsor midstream llc , a delaware limited liability company ( “ windsor ” ) , wallace family partnership , lp , a texas limited partnership ( “ wallace ” ) , and ted collins , jr. , an individual residing in midland , texas ( “ collins ” and , collectively with reliance , windsor and wallace , the “ sellers , ” and each , a “ seller ” ) , and reliance , in its capacity as representative of the sellers , to acquire all of the equity interests in coronado midstream holdings llc , the parent company of coronado midstream llc , which owns natural gas gathering and processing facilities in the permian basin for approximately $ 600.0 million in cash and equity , subject to certain adjustments . coronado operates three cryogenic gas processing plants and a gas gathering system in the north midland basin including approximately 270 miles of gathering pipelines , 175 mmcf/d of processing capacity and 35,000 horsepower of compression . the coronado system is underpinned by long-term contracts , which include the dedication of production from over 190,000 acres . lpc crude oil marketing . on january 31 , 2015 , the partnership , through one of its wholly owned subsidiaries , acquired lpc , which has crude oil gathering , transportation and marketing operations in the permian basin , for approximately $ 100.0 million . lpc is an integrated crude oil logistics service provider with operation throughout the permian basin . lpc 's integrated logistics services are supported by 41 tractor trailers , 13 pipeline injection stations and 67 miles of crude oil gathering pipeline . 59 natural gas pipeline assets . on november 1 , 2014 , the partnership acquired gulf coast natural gas pipeline assets predominantly located in southern louisiana , for $ 234.0 million , subject to certain adjustments . these natural gas pipeline assets include the following : bridgeline system : approximately 990 miles of natural gas pipelines in southern louisiana with a total system capacity of approximately 900 mmcf/d ; sabine pipeline : approximately 130 miles of natural gas pipelines in texas and southern louisiana with a total capacity of approximately 300 mmcf/d ; chandeleur system : approximately 215 miles of offshore mississippi and alabama pipelines with a total capacity of approximately 300 mmcf/d ; storage assets : three caverns located in southern louisiana with a combined working capacity of approximately 11.0 bcf of natural gas , including two near sorrento , la with a capacity of approximately 4.0 bcf and one inactive cavern near napoleonville , la with approximately 7.0 bcf of capacity ; and henry hub : ownership and management of the title tracking services offered at the henry hub , the delivery location for the new york mercantile exchange ( the “ nymex ” ) natural gas futures contracts . henry hub is connected to 13 major interstate and intrastate natural gas pipeline and storage systems . issuance of common units by the partnership in november 2014 , the partnership issued 12,075,000 common units representing limited partner interests in the partnership at an offering price of $ 28.37 per unit for net proceeds of $ 332.3 million . the net proceeds from the common units offering were used for capital expenditures and general partnership purposes . in october 2014 , the partnership issued 1,016,322 common units to enlc representing limited partner interests in the partnership as partial consideration for e2 appalachian units . in may 2014 , the partnership entered into an equity distribution agreement ( the “ eda ” ) with bmo capital markets corp. ( “ bmocm ” ) . pursuant to the terms of the eda , the partnership may from time to time through bmocm , as its sales agent , sell common units representing limited partner interests having an aggregate offering price of up to $ 75.0 million . through december 31 , 2014 , the partnership sold an aggregate of 2.4 million common units under the eda , generating proceeds of approximately $ 71.9 million ( net of approximately $ 0.7 million of commissions to bmocm ) . the partnership used the net proceeds for general partnership purposes . on november 7 , 2014 , partnership entered into an equity distribution agreement ( the “ bmo eda ” ) with bmo capital markets corp. , merrill lynch , pierce , fenner & smith incorporated , citigroup global markets inc. , jefferies llc , raymond james & associates , inc. and rbc capital markets , llc ( collectively , the “ sales agents ” ) to sell up to $ 350.0 million in aggregate gross sales of the partnership 's common units representing limited partner interests from time to time through an “ at the market ” equity offering program . the partnership may also sell common units to any sales agent as principal for the sales agent 's own account at a price agreed upon at the time of sale . the partnership has no obligation to sell any of the common units under the bmo eda and may at any time suspend solicitation and
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1,082 | these components are received at one of our distribution centers and then , based upon production needs , the components are sent to one of several third party fillers , which manufacture the finished product for us and then deliver them to one of our distribution centers . as with any global business , many aspects of our operations are subject to influences outside our control . we believe we have a strong brand portfolio with global reach and potential . as part of our strategy , we plan to continue to make investments behind fast-growing markets and channels to grow market share . during 2013 , the economic uncertainty and financial market volatility taking place in certain european countries did not have a significant impact on our business , and at this time we do not believe it will have a significant impact on our business for the foreseeable future . this is due in part to our belief that we are well positioned as a result of our strategy to manage our business effectively and efficiently . however , if the degree of uncertainty or volatility worsens or is prolonged , then there will likely be a negative effect on ongoing consumer confidence , demand and spending and as a result , our business . currently , we believe general economic and other uncertainties still exist in select markets in which we do business and we continue to monitor global economic uncertainties and other risks that may affect our business . our reported net sales are impacted by changes in foreign currency exchange rates . a weak u.s. dollar has a positive impact on our net sales . however , earnings are negatively affected by a weak dollar because approximately 40 % of net sales of our european operations are denominated in u.s. dollars , while all costs of our european operations are incurred in euro . our company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments . we primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates . 39 recent important events burberry burberry exercised its option to buy-out the license rights effective december 31 , 2012. on october 11 , 2012 , the company and burberry entered into a transition agreement that provided for certain license rights and obligations to continue through march 31 , 2013. the company continued to operate certain aspects of the business for the brand including product development , testing , and distribution . the transition agreement provided for non-exclusivity for manufacturing , a cap on sales of burberry products , a reduced advertising requirement and no minimum royalty amounts . the transition agreement provided that burberry inventories at march 31 , 2013 should be less than $ 20.0 million in the aggregate . actual burberry inventory as of march 31 , 2013 aggregated approximately $ 18 million . during the second quarter of 2013 , the company and burberry reached an agreement regarding inventory and burberry agreed to purchase $ 7.8 million of inventory at cost . remaining inventories were sold off in the ordinary course of business pursuant to our sell-off rights , destroyed or given to burberry at no charge . as of september 30 , 2013 , the $ 10 million inventory reserve , recorded in december 2012 upon recognition of the license termination gain of $ 198.8 million , was fully consumed during 2013. accounts receivables and accounts payables were collected and paid in the ordinary course of business . in addition , burberry purchased fixed assets for $ 2.8 million as agreed in the transition agreement . shanghai tang in july 2013 , the company created a wholly-owned hong kong subsidiary , inter parfums usa hong kong limited , which entered into a 12-year exclusive worldwide license to create , produce and distribute perfumes and related products under china 's leading luxury brand , shanghai tang . the agreement commenced on july 1 , 2013 and is subject to certain minimum sales , advertising expenditures and royalty payments as are customary in our industry . the company plans to launch its first fragrance under the shanghai tang brand in spring 2014 . 40 agent provocateur in july 2013 , the company entered into a 10.5-year exclusive worldwide license to create , produce and distribute perfumes and related products under london-based luxury lingerie brand , agent provocateur . the agreement commenced on august 1 , 2013 and is subject to certain minimum advertising expenditures as is customary in our industry . the company plans to launch its first fragrance under the agent provocateur brand in 2014. in addition , the company has taken over distribution of selected fragrances within the brand 's current perfume portfolio , and plans to revitalize the agent provocateur signature scent . oscar de la renta in october 2013 , the company entered into a 12-year exclusive worldwide license to create , produce and distribute perfumes and related products under the oscar de la renta brand , the agreement closed on december 2 , 2013 and is subject to certain minimum advertising expenditures as is customary in our industry . we purchased certain inventories and paid an up-front entry fee of $ 5.0 million . the company has taken over distribution of fragrances within the brand 's current perfume portfolio , and plan to launch its first fragrance under the oscar de la renta brand in 2014. discussion of critical accounting policies we make estimates and assumptions in the preparation of our financial statements in conformity with accounting principles generally accepted in the united states of america . actual results could differ significantly from those estimates under different assumptions and conditions . we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations . story_separator_special_tag we expect each of these brands to further enhance the performance of our u.s.-based operations in the coming year . united states prestige brand and specialty retail product sales increased 31 % in 2012. the initial launch of our first nine west fragrance and the commencement of sales pursuant to our anna sui license were the primary contributors to 2012 sales growth . with a high concentration of customers in the far east , first year sales of anna sui products reached approximately $ 20.0 million . in january 2012 , love fury , a women 's fragrance created for nine west launched at macy 's stores and nine west stores in the u.s. and internationally . as this line was met with mixed reviews , it was discontinued in 2013. consolidated net sales to customers by region replace_table_token_10_th in 2013 , the declines are primarily the result of the termination of the burberry license . however , sales of ongoing brands remained strong in north america , latin america , asia and eastern europe , while weakness continued in western europe . in 2012 , top line growth was especially strong in north america where sales ran 17 % ahead of 2011. growth continued in the middle east which saw a 9 % increase in sales , while sales were down 3 % and 13 % in western europe and central and south america , respectively . with the addition of the anna sui brand in our portfolio , the asian market grew 21 % in 2012. gross margins replace_table_token_11_th 47 as a percentage of net sales , gross profit margins were 58.3 % , 62.2 % , and 62.3 % in 2013 , 2012 and 2011 , respectively . for european operations , gross profit margin was 61 % , 64 % and 65 % in 2013 , 2012 and 2011 , respectively . the gross margin decline in 2013 is directly related to the resolution of the burberry inventory and the termination of the burberry license . although reserves were established and used to cover losses on the disposition of inventory , the sale of certain inventory to burberry at cost , resulted in a lower gross margin . in addition , the discontinuance of burberry product sales , which were sold at higher margins than ongoing brand sales , had a negative effect on margins . for u.s. operations , gross profit margin was 46 % for both 2013 and 2012 and 40 % in 2011. the increase since 2011 is the result of prestige product sales for the anna sui and alfred dunhill fragrance brands . we carefully watch movements in foreign currency exchange rates as approximately 40 % of our european based operations net sales are denominated in dollars , while our costs are incurred in euro . from a profit standpoint , a stronger u.s. dollar has a positive effect on our gross margin while a weak dollar has a negative effect . the average dollar/euro exchange rate was 1.33 in 2013 , as compared to 1.28 in 2012. as such , there was only a minor effect on gross margin in 2013 from changes in currency exchange rates . costs relating to purchase with purchase and gift with purchase promotions are reflected in cost of sales and aggregated $ 25.7 million , $ 46.5 million and $ 48.4 million in 2013 , 2012 and 2011 , respectively , and represented 4.6 % , 7.1 % and 7.9 % of net sales , respectively . the decline in 2013 is the result of the discontinuance of burberry product sales . generally , we do not bill customers for shipping and handling costs and such costs , which aggregated $ 6.1 million , $ 8.4 million and $ 8.8 million in 2013 , 2012 and 2011 , respectively , and are included in selling , general and administrative expenses in the consolidated statements of income . as such , our company 's gross margins may not be comparable to other companies , which may include these expenses as a component of cost of goods sold . selling , general & administrative expenses replace_table_token_12_th selling , general and administrative expenses decreased 23 % for the year ended december 31 , 2013 , as compared to 2012 and increased 3 % for the year ended december 31 , 2012 as compared to 2011. as a percentage of sales , selling , general and administrative expenses were 44 % , 50 % and 51 % for the years ended december 31 , 2013 , 2012 and 2011 , respectively . for european operations , selling , general and administrative expenses decreased 27 % in 2013 , as compared to 2012 and represented 46 % of sales in 2013 as compared to 52 % in 2012. for u.s. operations , while sales increased 21 % in 2013 , as compared to 2012 , selling , general and administrative expenses increased 16 % for the same period and represented 34 % of sales , as compared to 36 % in 2012 . 48 promotion and advertising included in selling , general and administrative expenses aggregated $ 94.0 million , $ 132.7 million and $ 127.8 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . promotion and advertising as a percentage of sales represented 16.7 % , 20.3 % and 20.8 % of net sales for the years ended december 31 , 2013 , 2012 and 2011 , respectively . in 2013 , pursuant to the requirements of the transition agreement with burberry , advertising requirements were reduced . almost all promotional spending in 2013 was for continuing brands and represented approximately 22 % on continuing brand sales . as planned , we invested heavily in promotional spending in the latter part of 2013 to support new product launches and continued worldwide development of our brand portfolio . royalty expense included in selling
| liquidity and capital resources having received the proceeds in december 2012 from the termination of the burberry license , our financial position remains strong . at december 31 , 2013 , working capital aggregated $ 399 million and we had a working capital ratio of over 4.0 to 1. cash and cash equivalents and short-term investments aggregated $ 307 million all of which is held in euro by our european operations and is readily convertible into u.s. dollars . we have not had any liquidity issues to date , and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments held by our european operations . approximately 90 % of the company 's total assets are held by european operations . in addition to the cash and cash equivalents and short-term investments referred to above , approximately $ 104 million of trademarks , licenses and other intangible assets are held by european operations . as previously disclosed , burberry exercised its option to buy-out the license rights effective december 31 , 2012. on october 11 , 2012 , the company and burberry entered into a transition agreement that provided for certain license rights and obligations to continue through march 31 , 2013. the company continued to operate certain aspects of the business for the brand including product development , testing , and distribution . the transition agreement provided for non-exclusivity for manufacturing , a cap on sales of burberry products , a reduced advertising requirement and no minimum royalty amounts . the transition agreement provided that burberry inventories at march 31 , 2013 should be less than $ 20.0 million in the aggregate . actual burberry inventory as of march 31 , 2013 aggregated approximately $ 18 million . during the second quarter of 2013 , the company and burberry reached an agreement regarding inventory and burberry agreed to purchase $ 7.8 million of inventory at cost . remaining inventories were sold off in the ordinary course of business pursuant to our sell-off rights , destroyed or given to burberry at no charge .
| 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. |
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 having received the proceeds in december 2012 from the termination of the burberry license , our financial position remains strong . at december 31 , 2013 , working capital aggregated $ 399 million and we had a working capital ratio of over 4.0 to 1. cash and cash equivalents and short-term investments aggregated $ 307 million all of which is held in euro by our european operations and is readily convertible into u.s. dollars . we have not had any liquidity issues to date , and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments held by our european operations . approximately 90 % of the company 's total assets are held by european operations . in addition to the cash and cash equivalents and short-term investments referred to above , approximately $ 104 million of trademarks , licenses and other intangible assets are held by european operations . as previously disclosed , burberry exercised its option to buy-out the license rights effective december 31 , 2012. on october 11 , 2012 , the company and burberry entered into a transition agreement that provided for certain license rights and obligations to continue through march 31 , 2013. the company continued to operate certain aspects of the business for the brand including product development , testing , and distribution . the transition agreement provided for non-exclusivity for manufacturing , a cap on sales of burberry products , a reduced advertising requirement and no minimum royalty amounts . the transition agreement provided that burberry inventories at march 31 , 2013 should be less than $ 20.0 million in the aggregate . actual burberry inventory as of march 31 , 2013 aggregated approximately $ 18 million . during the second quarter of 2013 , the company and burberry reached an agreement regarding inventory and burberry agreed to purchase $ 7.8 million of inventory at cost . remaining inventories were sold off in the ordinary course of business pursuant to our sell-off rights , destroyed or given to burberry at no charge .
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Suspicious Activity Report : these components are received at one of our distribution centers and then , based upon production needs , the components are sent to one of several third party fillers , which manufacture the finished product for us and then deliver them to one of our distribution centers . as with any global business , many aspects of our operations are subject to influences outside our control . we believe we have a strong brand portfolio with global reach and potential . as part of our strategy , we plan to continue to make investments behind fast-growing markets and channels to grow market share . during 2013 , the economic uncertainty and financial market volatility taking place in certain european countries did not have a significant impact on our business , and at this time we do not believe it will have a significant impact on our business for the foreseeable future . this is due in part to our belief that we are well positioned as a result of our strategy to manage our business effectively and efficiently . however , if the degree of uncertainty or volatility worsens or is prolonged , then there will likely be a negative effect on ongoing consumer confidence , demand and spending and as a result , our business . currently , we believe general economic and other uncertainties still exist in select markets in which we do business and we continue to monitor global economic uncertainties and other risks that may affect our business . our reported net sales are impacted by changes in foreign currency exchange rates . a weak u.s. dollar has a positive impact on our net sales . however , earnings are negatively affected by a weak dollar because approximately 40 % of net sales of our european operations are denominated in u.s. dollars , while all costs of our european operations are incurred in euro . our company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments . we primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates . 39 recent important events burberry burberry exercised its option to buy-out the license rights effective december 31 , 2012. on october 11 , 2012 , the company and burberry entered into a transition agreement that provided for certain license rights and obligations to continue through march 31 , 2013. the company continued to operate certain aspects of the business for the brand including product development , testing , and distribution . the transition agreement provided for non-exclusivity for manufacturing , a cap on sales of burberry products , a reduced advertising requirement and no minimum royalty amounts . the transition agreement provided that burberry inventories at march 31 , 2013 should be less than $ 20.0 million in the aggregate . actual burberry inventory as of march 31 , 2013 aggregated approximately $ 18 million . during the second quarter of 2013 , the company and burberry reached an agreement regarding inventory and burberry agreed to purchase $ 7.8 million of inventory at cost . remaining inventories were sold off in the ordinary course of business pursuant to our sell-off rights , destroyed or given to burberry at no charge . as of september 30 , 2013 , the $ 10 million inventory reserve , recorded in december 2012 upon recognition of the license termination gain of $ 198.8 million , was fully consumed during 2013. accounts receivables and accounts payables were collected and paid in the ordinary course of business . in addition , burberry purchased fixed assets for $ 2.8 million as agreed in the transition agreement . shanghai tang in july 2013 , the company created a wholly-owned hong kong subsidiary , inter parfums usa hong kong limited , which entered into a 12-year exclusive worldwide license to create , produce and distribute perfumes and related products under china 's leading luxury brand , shanghai tang . the agreement commenced on july 1 , 2013 and is subject to certain minimum sales , advertising expenditures and royalty payments as are customary in our industry . the company plans to launch its first fragrance under the shanghai tang brand in spring 2014 . 40 agent provocateur in july 2013 , the company entered into a 10.5-year exclusive worldwide license to create , produce and distribute perfumes and related products under london-based luxury lingerie brand , agent provocateur . the agreement commenced on august 1 , 2013 and is subject to certain minimum advertising expenditures as is customary in our industry . the company plans to launch its first fragrance under the agent provocateur brand in 2014. in addition , the company has taken over distribution of selected fragrances within the brand 's current perfume portfolio , and plans to revitalize the agent provocateur signature scent . oscar de la renta in october 2013 , the company entered into a 12-year exclusive worldwide license to create , produce and distribute perfumes and related products under the oscar de la renta brand , the agreement closed on december 2 , 2013 and is subject to certain minimum advertising expenditures as is customary in our industry . we purchased certain inventories and paid an up-front entry fee of $ 5.0 million . the company has taken over distribution of fragrances within the brand 's current perfume portfolio , and plan to launch its first fragrance under the oscar de la renta brand in 2014. discussion of critical accounting policies we make estimates and assumptions in the preparation of our financial statements in conformity with accounting principles generally accepted in the united states of america . actual results could differ significantly from those estimates under different assumptions and conditions . we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations . story_separator_special_tag we expect each of these brands to further enhance the performance of our u.s.-based operations in the coming year . united states prestige brand and specialty retail product sales increased 31 % in 2012. the initial launch of our first nine west fragrance and the commencement of sales pursuant to our anna sui license were the primary contributors to 2012 sales growth . with a high concentration of customers in the far east , first year sales of anna sui products reached approximately $ 20.0 million . in january 2012 , love fury , a women 's fragrance created for nine west launched at macy 's stores and nine west stores in the u.s. and internationally . as this line was met with mixed reviews , it was discontinued in 2013. consolidated net sales to customers by region replace_table_token_10_th in 2013 , the declines are primarily the result of the termination of the burberry license . however , sales of ongoing brands remained strong in north america , latin america , asia and eastern europe , while weakness continued in western europe . in 2012 , top line growth was especially strong in north america where sales ran 17 % ahead of 2011. growth continued in the middle east which saw a 9 % increase in sales , while sales were down 3 % and 13 % in western europe and central and south america , respectively . with the addition of the anna sui brand in our portfolio , the asian market grew 21 % in 2012. gross margins replace_table_token_11_th 47 as a percentage of net sales , gross profit margins were 58.3 % , 62.2 % , and 62.3 % in 2013 , 2012 and 2011 , respectively . for european operations , gross profit margin was 61 % , 64 % and 65 % in 2013 , 2012 and 2011 , respectively . the gross margin decline in 2013 is directly related to the resolution of the burberry inventory and the termination of the burberry license . although reserves were established and used to cover losses on the disposition of inventory , the sale of certain inventory to burberry at cost , resulted in a lower gross margin . in addition , the discontinuance of burberry product sales , which were sold at higher margins than ongoing brand sales , had a negative effect on margins . for u.s. operations , gross profit margin was 46 % for both 2013 and 2012 and 40 % in 2011. the increase since 2011 is the result of prestige product sales for the anna sui and alfred dunhill fragrance brands . we carefully watch movements in foreign currency exchange rates as approximately 40 % of our european based operations net sales are denominated in dollars , while our costs are incurred in euro . from a profit standpoint , a stronger u.s. dollar has a positive effect on our gross margin while a weak dollar has a negative effect . the average dollar/euro exchange rate was 1.33 in 2013 , as compared to 1.28 in 2012. as such , there was only a minor effect on gross margin in 2013 from changes in currency exchange rates . costs relating to purchase with purchase and gift with purchase promotions are reflected in cost of sales and aggregated $ 25.7 million , $ 46.5 million and $ 48.4 million in 2013 , 2012 and 2011 , respectively , and represented 4.6 % , 7.1 % and 7.9 % of net sales , respectively . the decline in 2013 is the result of the discontinuance of burberry product sales . generally , we do not bill customers for shipping and handling costs and such costs , which aggregated $ 6.1 million , $ 8.4 million and $ 8.8 million in 2013 , 2012 and 2011 , respectively , and are included in selling , general and administrative expenses in the consolidated statements of income . as such , our company 's gross margins may not be comparable to other companies , which may include these expenses as a component of cost of goods sold . selling , general & administrative expenses replace_table_token_12_th selling , general and administrative expenses decreased 23 % for the year ended december 31 , 2013 , as compared to 2012 and increased 3 % for the year ended december 31 , 2012 as compared to 2011. as a percentage of sales , selling , general and administrative expenses were 44 % , 50 % and 51 % for the years ended december 31 , 2013 , 2012 and 2011 , respectively . for european operations , selling , general and administrative expenses decreased 27 % in 2013 , as compared to 2012 and represented 46 % of sales in 2013 as compared to 52 % in 2012. for u.s. operations , while sales increased 21 % in 2013 , as compared to 2012 , selling , general and administrative expenses increased 16 % for the same period and represented 34 % of sales , as compared to 36 % in 2012 . 48 promotion and advertising included in selling , general and administrative expenses aggregated $ 94.0 million , $ 132.7 million and $ 127.8 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . promotion and advertising as a percentage of sales represented 16.7 % , 20.3 % and 20.8 % of net sales for the years ended december 31 , 2013 , 2012 and 2011 , respectively . in 2013 , pursuant to the requirements of the transition agreement with burberry , advertising requirements were reduced . almost all promotional spending in 2013 was for continuing brands and represented approximately 22 % on continuing brand sales . as planned , we invested heavily in promotional spending in the latter part of 2013 to support new product launches and continued worldwide development of our brand portfolio . royalty expense included in selling
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1,083 | compared to fiscal 2014 , we continued to provide a greater proportion of systems integration consulting through use of lower-cost resources in our global delivery network . this trend has resulted in work volume growing faster than revenue in our systems integration business , and we expect this trend to continue . in our outsourcing business , net revenues for the fourth quarter of fiscal 2015 decreased 1 % in u.s. dollars and increased 9 % in local currency compared to the fourth quarter of fiscal 2014 . net outsourcing revenues for fiscal 2015 increased 4 % in u.s. dollars and 11 % in local currency compared to fiscal 2014 . we are experiencing growing demand to assist clients with cloud enablement and operation and maintenance of digital-related services . in addition , clients continue to be focused on transforming their operations to improve effectiveness and save costs . compared to fiscal 2014 , we continued to provide a greater proportion of application outsourcing through use of lower-cost resources in our global delivery network . as we are a global company , our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations . if the u.s. dollar strengthens against other currencies , resulting in unfavorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be lower . if the u.s. dollar weakens against other currencies , resulting in favorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be higher . when compared to the same periods in fiscal 2014 , the u.s. dollar strengthened significantly against many currencies during the fourth quarter and fiscal year ended august 31 , 2015 , resulting in unfavorable currency translation and u.s. dollar revenue growth that was approximately 10 % and 7.5 % lower , respectively , than our revenue growth in local currency . 27 the primary categories of operating expenses include cost of services , sales and marketing and general and administrative costs . cost of services is primarily driven by the cost of client-service personnel , which consists mainly of compensation , subcontractor and other personnel costs , and non-payroll costs on outsourcing contracts . cost of services includes a variety of activities such as : contract delivery ; recruiting and training ; software development ; and integration of acquisitions . sales and marketing costs are driven primarily by : compensation costs for business development activities ; marketing- and advertising related activities ; and certain acquisition-related costs . general and administrative costs primarily include costs for non-client-facing personnel , information systems and office space . effective september 1 , 2014 , we updated the methodology we use to calculate utilization to include all billable employees ' time spent on chargeable work . utilization for the fourth quarter of fiscal 2015 was 90 % , flat with the third quarter of fiscal 2015 . this level of utilization reflects continued strong demand for resources in our global delivery network and in most countries . we continue to hire to meet current and projected future demand . we proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions , given that compensation costs are the most significant portion of our operating expenses . based on current and projected future demand , we have increased our headcount , the majority of which serve our clients , to more than 358,000 as of august 31 , 2015 , compared to more than 336,000 as of may 31 , 2015 and more than 305,000 as of august 31 , 2014 . the year-over-year increase in our headcount reflects an overall increase in demand for our services and solutions , primarily those delivered through our global delivery network in lower-cost locations , as well as headcount added in connection with acquisitions . annualized attrition , excluding involuntary terminations , for the fourth quarter of fiscal 2015 was 14 % , down from 15 % in both the third quarter of fiscal 2015 and fourth quarter of fiscal 2014 . we evaluate voluntary attrition , adjust levels of new hiring and use involuntary terminations as means to keep our supply of skills and resources in balance with changes in client demand . in addition , we adjust compensation in certain skill sets and geographies in order to attract and retain appropriate numbers of qualified employees . we strive to adjust pricing and or the mix of resources to reduce the impact of compensation increases on our gross margin . our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to : keep our supply of skills and resources in balance with changes in the types or amounts of services and solutions clients are demanding ; recover increases in compensation ; deploy our employees globally on a timely basis ; manage attrition ; and or effectively assimilate and utilize new employees . gross margin ( net revenues less cost of services before reimbursable expenses as a percentage of net revenues ) for the fourth quarter of fiscal 2015 was 31.7 % , flat with the fourth quarter of fiscal 2014 . gross margin for fiscal 2015 was 31.6 % , compared with 32.3 % for fiscal 2014 . the reduction in gross margin for fiscal 2015 was principally due to higher labor costs , increased usage of subcontractors and higher non-payroll costs including recruiting and training costs from the addition of a larger number of employees compared to fiscal 2014 . sales and marketing and general and administrative costs as a percentage of net revenues were 17.9 % for the fourth quarter of fiscal 2015 , flat with the fourth quarter of fiscal 2014 . story_separator_special_tag ” as a matter of course , we are regularly audited by various taxing authorities , and sometimes these audits result in proposed assessments where the ultimate resolution may result in us owing additional taxes . we establish tax liabilities or reduce tax assets for uncertain tax positions when , despite our belief that our tax return positions are appropriate and supportable under local tax law , we believe we may not succeed in realizing the tax benefit of certain positions if challenged . in evaluating a tax position , we determine whether it is more likely than not that the position will be sustained upon examination , including resolution of any related appeals or litigation processes , based on the technical merits of the position . our estimate of the ultimate tax liability contains assumptions based on past experiences , judgments about potential actions by taxing jurisdictions as well as judgments about the likely outcome of issues that have been raised by taxing jurisdictions . the tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement . we evaluate these uncertain tax positions each quarter and adjust the related tax liabilities or assets in light of changing facts and circumstances , such as the progress of a tax 31 audit or the expiration of a statute of limitations . we believe the estimates and assumptions used to support our evaluation of uncertain tax positions are reasonable . however , final determinations of prior-year tax liabilities , either by settlement with tax authorities or expiration of statutes of limitations , could be materially different from estimates reflected in assets and liabilities and historical income tax provisions . the outcome of these final determinations could have a material effect on our income tax provision , net income , or cash flows in the period in which that determination is made . we believe our tax positions comply with applicable tax law and that we have adequately accounted for uncertain tax positions . revenues by segment/operating group our five reportable operating segments are our operating groups , which are communications , media & technology ; financial services ; health & public service ; products ; and resources . operating groups are managed on the basis of net revenues because our management believes net revenues are a better indicator of operating group performance than revenues . in addition to reporting net revenues by operating group , we also report net revenues by two types of work : consulting and outsourcing , which represent the services sold by our operating groups . consulting net revenues , which include management and technology consulting and systems integration , reflect a finite , distinct project or set of projects with a defined outcome and typically a defined set of specific deliverables . outsourcing net revenues typically reflect ongoing , repeatable services or capabilities provided to transition , run and or manage operations of client systems or business functions . from time to time , our operating groups work together to sell and implement certain contracts . the resulting revenues and costs from these contracts may be apportioned among the participating operating groups . generally , operating expenses for each operating group have similar characteristics and are subject to the same factors , pressures and challenges . however , the economic environment and its effects on the industries served by our operating groups affect revenues and operating expenses within our operating groups to differing degrees . the mix between consulting and outsourcing is not uniform among our operating groups . local currency fluctuations also tend to affect our operating groups differently , depending on the geographic concentrations and locations of their businesses . while we provide discussion about our results of operations below , we can not measure how much of our revenue growth in a particular period is attributable to changes in price or volume . management does not track standard measures of unit or rate volume . instead , our measures of volume and price are extremely complex , as each of our services contracts is unique , reflecting a customized mix of specific services that does not fit into standard comparability measurements . revenue for our services is a function of the nature of each service to be provided , the skills required and the outcome sought , as well as estimated cost , risk , contract terms and other factors . 32 results of operations for fiscal 2015 compared to fiscal 2014 net revenues ( by operating group , geographic region and type of work ) and reimbursements were as follows : replace_table_token_6_th _ n/m = not meaningful amounts in table may not total due to rounding . ( 1 ) effective september 1 , 2014 , we revised the reporting of our geographic regions as follows : north america ( the united states and canada ) ; europe ; and growth markets ( asia pacific , latin america , africa , the middle east , russia and turkey ) . prior period amounts have been reclassified to conform to the current period presentation . our business in the united states represented 43 % , 40 % and 39 % of our consolidated net revenues during fiscal 2015 , 2014 and 2013 , respectively . no other country individually comprised 10 % or more of our consolidated net revenues during these periods . net revenues the following net revenues commentary discusses local currency net revenue changes for fiscal 2015 compared to fiscal 2014 : operating groups communications , media & technology net revenues increased 16 % in local currency . outsourcing revenues reflected significant growth , driven by growth across all industry groups and geographic regions , led by communications in all geographic regions as well as media & entertainment in north america . consulting revenues reflected significant growth , driven by growth across all industry groups and geographic regions , led
| liquidity and capital resources our primary sources of liquidity are cash flows from operations , available cash reserves and debt capacity available under various credit facilities . in addition , we could raise additional funds through public or private debt or equity financings . we may use our available or additional funds to , among other things : facilitate purchases , redemptions and exchanges of shares and pay dividends ; acquire complementary businesses or technologies ; take advantage of opportunities , including more rapid expansion ; or develop new services and solutions . as of august 31 , 2015 , cash and cash equivalents were $ 4.4 billion , compared with $ 4.9 billion as of august 31 , 2014 . cash flows from operating , investing and financing activities , as reflected in our consolidated cash flows statements , are summarized in the following table : replace_table_token_12_th _ amounts in table may not total due to rounding . operating activities : the year-over-year increase in operating cash flow was due to higher net income and changes in operating assets and liabilities , including lower spending on certain compensation payments and higher collections on net client balances ( receivables from clients , current and non-current unbilled services and deferred revenues ) .
| 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. |
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 primary sources of liquidity are cash flows from operations , available cash reserves and debt capacity available under various credit facilities . in addition , we could raise additional funds through public or private debt or equity financings . we may use our available or additional funds to , among other things : facilitate purchases , redemptions and exchanges of shares and pay dividends ; acquire complementary businesses or technologies ; take advantage of opportunities , including more rapid expansion ; or develop new services and solutions . as of august 31 , 2015 , cash and cash equivalents were $ 4.4 billion , compared with $ 4.9 billion as of august 31 , 2014 . cash flows from operating , investing and financing activities , as reflected in our consolidated cash flows statements , are summarized in the following table : replace_table_token_12_th _ amounts in table may not total due to rounding . operating activities : the year-over-year increase in operating cash flow was due to higher net income and changes in operating assets and liabilities , including lower spending on certain compensation payments and higher collections on net client balances ( receivables from clients , current and non-current unbilled services and deferred revenues ) .
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Suspicious Activity Report : compared to fiscal 2014 , we continued to provide a greater proportion of systems integration consulting through use of lower-cost resources in our global delivery network . this trend has resulted in work volume growing faster than revenue in our systems integration business , and we expect this trend to continue . in our outsourcing business , net revenues for the fourth quarter of fiscal 2015 decreased 1 % in u.s. dollars and increased 9 % in local currency compared to the fourth quarter of fiscal 2014 . net outsourcing revenues for fiscal 2015 increased 4 % in u.s. dollars and 11 % in local currency compared to fiscal 2014 . we are experiencing growing demand to assist clients with cloud enablement and operation and maintenance of digital-related services . in addition , clients continue to be focused on transforming their operations to improve effectiveness and save costs . compared to fiscal 2014 , we continued to provide a greater proportion of application outsourcing through use of lower-cost resources in our global delivery network . as we are a global company , our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations . if the u.s. dollar strengthens against other currencies , resulting in unfavorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be lower . if the u.s. dollar weakens against other currencies , resulting in favorable currency translation , our revenues , revenue growth and results of operations in u.s. dollars may be higher . when compared to the same periods in fiscal 2014 , the u.s. dollar strengthened significantly against many currencies during the fourth quarter and fiscal year ended august 31 , 2015 , resulting in unfavorable currency translation and u.s. dollar revenue growth that was approximately 10 % and 7.5 % lower , respectively , than our revenue growth in local currency . 27 the primary categories of operating expenses include cost of services , sales and marketing and general and administrative costs . cost of services is primarily driven by the cost of client-service personnel , which consists mainly of compensation , subcontractor and other personnel costs , and non-payroll costs on outsourcing contracts . cost of services includes a variety of activities such as : contract delivery ; recruiting and training ; software development ; and integration of acquisitions . sales and marketing costs are driven primarily by : compensation costs for business development activities ; marketing- and advertising related activities ; and certain acquisition-related costs . general and administrative costs primarily include costs for non-client-facing personnel , information systems and office space . effective september 1 , 2014 , we updated the methodology we use to calculate utilization to include all billable employees ' time spent on chargeable work . utilization for the fourth quarter of fiscal 2015 was 90 % , flat with the third quarter of fiscal 2015 . this level of utilization reflects continued strong demand for resources in our global delivery network and in most countries . we continue to hire to meet current and projected future demand . we proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions , given that compensation costs are the most significant portion of our operating expenses . based on current and projected future demand , we have increased our headcount , the majority of which serve our clients , to more than 358,000 as of august 31 , 2015 , compared to more than 336,000 as of may 31 , 2015 and more than 305,000 as of august 31 , 2014 . the year-over-year increase in our headcount reflects an overall increase in demand for our services and solutions , primarily those delivered through our global delivery network in lower-cost locations , as well as headcount added in connection with acquisitions . annualized attrition , excluding involuntary terminations , for the fourth quarter of fiscal 2015 was 14 % , down from 15 % in both the third quarter of fiscal 2015 and fourth quarter of fiscal 2014 . we evaluate voluntary attrition , adjust levels of new hiring and use involuntary terminations as means to keep our supply of skills and resources in balance with changes in client demand . in addition , we adjust compensation in certain skill sets and geographies in order to attract and retain appropriate numbers of qualified employees . we strive to adjust pricing and or the mix of resources to reduce the impact of compensation increases on our gross margin . our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to : keep our supply of skills and resources in balance with changes in the types or amounts of services and solutions clients are demanding ; recover increases in compensation ; deploy our employees globally on a timely basis ; manage attrition ; and or effectively assimilate and utilize new employees . gross margin ( net revenues less cost of services before reimbursable expenses as a percentage of net revenues ) for the fourth quarter of fiscal 2015 was 31.7 % , flat with the fourth quarter of fiscal 2014 . gross margin for fiscal 2015 was 31.6 % , compared with 32.3 % for fiscal 2014 . the reduction in gross margin for fiscal 2015 was principally due to higher labor costs , increased usage of subcontractors and higher non-payroll costs including recruiting and training costs from the addition of a larger number of employees compared to fiscal 2014 . sales and marketing and general and administrative costs as a percentage of net revenues were 17.9 % for the fourth quarter of fiscal 2015 , flat with the fourth quarter of fiscal 2014 . story_separator_special_tag ” as a matter of course , we are regularly audited by various taxing authorities , and sometimes these audits result in proposed assessments where the ultimate resolution may result in us owing additional taxes . we establish tax liabilities or reduce tax assets for uncertain tax positions when , despite our belief that our tax return positions are appropriate and supportable under local tax law , we believe we may not succeed in realizing the tax benefit of certain positions if challenged . in evaluating a tax position , we determine whether it is more likely than not that the position will be sustained upon examination , including resolution of any related appeals or litigation processes , based on the technical merits of the position . our estimate of the ultimate tax liability contains assumptions based on past experiences , judgments about potential actions by taxing jurisdictions as well as judgments about the likely outcome of issues that have been raised by taxing jurisdictions . the tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement . we evaluate these uncertain tax positions each quarter and adjust the related tax liabilities or assets in light of changing facts and circumstances , such as the progress of a tax 31 audit or the expiration of a statute of limitations . we believe the estimates and assumptions used to support our evaluation of uncertain tax positions are reasonable . however , final determinations of prior-year tax liabilities , either by settlement with tax authorities or expiration of statutes of limitations , could be materially different from estimates reflected in assets and liabilities and historical income tax provisions . the outcome of these final determinations could have a material effect on our income tax provision , net income , or cash flows in the period in which that determination is made . we believe our tax positions comply with applicable tax law and that we have adequately accounted for uncertain tax positions . revenues by segment/operating group our five reportable operating segments are our operating groups , which are communications , media & technology ; financial services ; health & public service ; products ; and resources . operating groups are managed on the basis of net revenues because our management believes net revenues are a better indicator of operating group performance than revenues . in addition to reporting net revenues by operating group , we also report net revenues by two types of work : consulting and outsourcing , which represent the services sold by our operating groups . consulting net revenues , which include management and technology consulting and systems integration , reflect a finite , distinct project or set of projects with a defined outcome and typically a defined set of specific deliverables . outsourcing net revenues typically reflect ongoing , repeatable services or capabilities provided to transition , run and or manage operations of client systems or business functions . from time to time , our operating groups work together to sell and implement certain contracts . the resulting revenues and costs from these contracts may be apportioned among the participating operating groups . generally , operating expenses for each operating group have similar characteristics and are subject to the same factors , pressures and challenges . however , the economic environment and its effects on the industries served by our operating groups affect revenues and operating expenses within our operating groups to differing degrees . the mix between consulting and outsourcing is not uniform among our operating groups . local currency fluctuations also tend to affect our operating groups differently , depending on the geographic concentrations and locations of their businesses . while we provide discussion about our results of operations below , we can not measure how much of our revenue growth in a particular period is attributable to changes in price or volume . management does not track standard measures of unit or rate volume . instead , our measures of volume and price are extremely complex , as each of our services contracts is unique , reflecting a customized mix of specific services that does not fit into standard comparability measurements . revenue for our services is a function of the nature of each service to be provided , the skills required and the outcome sought , as well as estimated cost , risk , contract terms and other factors . 32 results of operations for fiscal 2015 compared to fiscal 2014 net revenues ( by operating group , geographic region and type of work ) and reimbursements were as follows : replace_table_token_6_th _ n/m = not meaningful amounts in table may not total due to rounding . ( 1 ) effective september 1 , 2014 , we revised the reporting of our geographic regions as follows : north america ( the united states and canada ) ; europe ; and growth markets ( asia pacific , latin america , africa , the middle east , russia and turkey ) . prior period amounts have been reclassified to conform to the current period presentation . our business in the united states represented 43 % , 40 % and 39 % of our consolidated net revenues during fiscal 2015 , 2014 and 2013 , respectively . no other country individually comprised 10 % or more of our consolidated net revenues during these periods . net revenues the following net revenues commentary discusses local currency net revenue changes for fiscal 2015 compared to fiscal 2014 : operating groups communications , media & technology net revenues increased 16 % in local currency . outsourcing revenues reflected significant growth , driven by growth across all industry groups and geographic regions , led by communications in all geographic regions as well as media & entertainment in north america . consulting revenues reflected significant growth , driven by growth across all industry groups and geographic regions , led
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1,084 | we evaluate our estimates , including those related to revenue recognition , allowance for doubtful accounts , inventories , goodwill , warranty obligations , contingencies and income taxes on an on-going basis . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . senior management has discussed the development , selection and disclosure of these estimates with the audit committee of our board of directors . we believe the following critical accounting policies and the related judgments and estimates affect the preparation of our consolidated financial statements . 32 revenue recognition . revenue is recognized when persuasive evidence of an arrangement exists , upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection , passage of title and risk of loss to the customer as indicated by the contractual terms and fulfillment of all significant obligations . we design , market and sell our products primarily as commercial , off-the-shelf products . certain customers request different system configurations , generally based on standard options or accessories that we offer . in general , our revenue arrangements do not involve acceptance provisions based upon customer specified acceptance criteria . in those circumstances when customer specified acceptance criteria exist , revenue is deferred until customer acceptance if we can not demonstrate that the system meets those specifications prior to shipment . for any contracts with multiple elements ( i.e . , training , installation , additional parts , etc . ) we allocate revenue among the deliverables primarily based upon objective and reliable evidence of fair value of each element in the arrangement . if objective and reliable evidence of fair value of any element is not available , we use an estimated selling price for purposes of allocating the total arrangement consideration among the elements . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . allowance for doubtful accounts . our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments . credit limits are established through a process of reviewing the financial history and stability of each customer . where appropriate , we obtain credit rating reports and financial statements of the customer when determining or modifying their credit limits . we regularly evaluate the collectability of our trade receivable balances based on a combination of factors . when a customer 's account balance becomes past due , we initiate dialogue with the customer to determine the cause . if it is determined that the customer will be unable to meet its financial obligation to us , such as in the case of a bankruptcy filing , deterioration in the customer 's operating results or financial position or other material events impacting their business , we record a specific allowance to reduce the related receivable to the amount we expect to recover given all information presently available . actual write-offs during the past three years have not been material to our results of operations . we also record an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers . as of december 31 , 2015 , our accounts receivable balance of $ 326.1 million is reported net of allowances for doubtful accounts of $ 6.9 million . we believe our reported allowances at december 31 , 2015 are adequate . if the financial conditions of those customers were to deteriorate , however , resulting in their inability to make payments , we may need to record additional allowances that would result in additional selling , general and administrative expenses being recorded for the period in which such determination is made . inventory . our policy is to record inventory write-downs when conditions exist that indicate that our inventories are likely to be in excess of anticipated demand or are obsolete based upon our assumptions about future demand for our products and market conditions . we regularly evaluate the ability to realize the value of our inventories based on a combination of factors including the following : historical usage rates , forecasted sales or usage , product end of life dates , estimated current and future market values and new product introductions . purchasing requirements and alternative usages are evaluated within these processes to mitigate inventory exposure . when recorded , our write-downs are intended to reduce the carrying value of our inventories to their net realizable value and establish a new cost basis . as of december 31 , 2015 , our inventories of $ 393.1 million are stated net of inventory write-downs . if actual demand for our products deteriorates or market conditions are less favorable than those that we project , additional inventory write-downs may be required in the future . goodwill . goodwill represents the excess purchase price of an acquired enterprise or assets over the estimated fair value of identifiable net assets acquired . we assess goodwill for potential impairment at the reporting unit level during the third quarter of each year , or whenever events or circumstances indicate that the carrying value of these assets may exceed their fair value . we may assess qualitative factors to make this determination , or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process . story_separator_special_tag earnings from operations increased by 14.5 percent primarily due to lower operating expenses and higher gross margins , partially offset by the decrease in revenues . during the year ended december 31 , 2015 , surveillance had restructuring charges of $ 0.2 million , compared to $ 5.2 million in 2014. revenue decreased by 6.2 percent in 2014 compared to 2013 , primarily due to the reductions in demand from united states government funded customers . earnings from operations decreased by 6.1 percent primarily due to the lower revenues , partially offset by cost savings generated as a result of restructuring activities . in 2013 , surveillance had restructuring charges of $ 5.4 million . instruments instruments operating results are as follows ( in millions , except percentages ) : replace_table_token_5_th instruments segment revenue for the year ended december 31 , 2015 decreased by 1.9 percent compared to the year ended december 31 , 2014 . the year over year decrease in revenue was primarily due to a revenue decline in the americas region , partially offset by an increase in the asia pacific region ; on a product line basis , declines in our higher end thermography and in our optical gas imaging product lines were partially offset by increases in our science , test and measurement , and fire product lines . revenues for the year ended december 31 , 2015 were also negatively impacted by year over year changes in currency exchange rates . on a constant currency basis , instruments revenues in 2015 increased by 4.9 percent compared to 2014. the increase in earnings from operations for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 is primarily due to lower restructuring expenses and costs savings associated with restructuring activities . as a large portion of segment expenses are incurred in europe , the segment experienced a favorable impact on its operating expenses from the changes in foreign currency rates which largely offset the associated decline in revenues in that region . during the year ended december 31 , 2015 , instrument had restructuring charges of $ 1.2 million compared to $ 11.0 million in the year ended december 31 , 2014 . 38 instruments segment revenue for the year ended december 31 , 2014 increased by 4.9 percent , compared to the year ended december 31 , 2013 . the year over year increase in revenue is primarily due to increased deliveries in most geographic regions and across most product lines , particularly for products introduced late in 2013 and in 2014. the increase in earnings from operations for the year ended december 31 , 2014 compared to 2013 is primarily due to higher revenues , lower restructuring expenses and cost savings generated from those restructuring activities . during 2013 , the segment incurred restructuring charges of $ 15.5 million . security security operating results are as follows ( in millions , except percentages ) : replace_table_token_6_th security segment revenue for the year ended december 31 , 2015 increased by 26.5 percent over the year ended december 31 , 2014. the increase was primarily due to increased deliveries across all product families and in the americas and europe geographic regions . the increase of earnings from operations of 13.1 percent was primarily due to the increase in revenues , partially offset by increases in sales and marketing support operating expenses . security segment revenue for the year ended december 31 , 2014 increased by 27.0 percent compared to the prior year primarily due to increased deliveries in all product families and expanded distribution . the increase in earnings from operations in 2014 of 43.4 percent over 2013 was primarily due to the increase in year over year revenues , partially offset by increased marketing , customer technical support and product development expenses . the increase in backlog was primarily due to an increase in orders from international customers which often have longer delivery times . oem & emerging markets oem & emerging markets operating results are as follows ( in millions , except percentages ) : replace_table_token_7_th oem & emerging markets segment revenue decreased by 6.2 percent in 2015 compared to 2014 , primarily due to the loss of approximately $ 8.8 million in 2014 revenue from our former optical components group which was sold in august 2014 and the negative impacts of changes in currency exchange rates . earnings from operations declined in 2015 compared to 2014 primarily due to the decrease in revenue and lower gross margins , partially offset by lower operating expenses . revenue increased by 8.2 percent in 2014 compared to 2013 , primarily due to increased deliveries to customers in the united states , particularly of uncooled camera cores and newly introduced mobile accessories . earnings from operations increased by 28.0 percent due to the increase in revenues and cost savings from restructuring activities . 39 maritime maritime operating results are as follows ( in millions , except percentages ) : replace_table_token_8_th maritime segment revenue for the year ended december 31 , 2015 decreased by 7.6 percent compared to 2014 primarily due to the negative impact of year over year changes in currency exchange rates in the europe and asia pacific regions . on a constant currency basis , 2015 revenue increased by 2.2 percent compared to 2014. since the majority of the segment 's costs of goods sold are incurred in united states dollars , those costs did not receive the favorable impact of changes in currency exchange rates . consequently , the decrease in earnings from operations in 2015 compared to 2014 was primarily due to the revenue decline . maritime segment revenue for the year ended december 31 , 2014 increased by 1.9 percent compared to the same period of 2013 primarily due to higher deliveries in europe and year over year unit volume increases from raymarine-branded product lines . detection detection operating results are as follows ( in
| liquidity and capital resources at december 31 , 2015 , we had a total of $ 472.8 million in cash and cash equivalents , $ 129.6 million of which was in the united states and $ 343.2 million at our foreign subsidiaries , compared to cash and cash equivalents at december 31 , 2014 of $ 531.4 million , of which $ 164.1 million was in the united states and $ 367.3 million at our foreign subsidiaries . we intend to indefinitely reinvest the cash at our foreign subsidiaries in operations and other activities outside the united states . the decrease in cash and cash equivalents in 2015 was primarily due to $ 123.2 million spent for the repurchase of our common stock , $ 92.3 million spent on the acquisition of dvtel , inc. , $ 68.2 million spent on capital expenditures and dividends paid of $ 61.4 million , partially offset by cash provided from operations of $ 275.8 million . cash provided by operating activities in 2015 totaled $ 275.8 million compared to $ 226.2 million in 2014 and $ 355.0 million in 2013 . the increase in cash provided from operations in 2015 compared to 2014 was primarily due to the increase in net earnings . the decrease in cash provided from operations in 2014 compared to 2013 was primarily related to lower net collections of accounts receivable . cash used for investing activities for the year ended december 31 , 2015 totaled $ 134.8 million , consisting of $ 92.3 million , net of cash acquired , for the acquisition of dvtel , inc. and capital expenditures of $ 68.2 million , partially offset by $ 25.6 million of proceeds from the sale of an investment in a third party .
| 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. |
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 at december 31 , 2015 , we had a total of $ 472.8 million in cash and cash equivalents , $ 129.6 million of which was in the united states and $ 343.2 million at our foreign subsidiaries , compared to cash and cash equivalents at december 31 , 2014 of $ 531.4 million , of which $ 164.1 million was in the united states and $ 367.3 million at our foreign subsidiaries . we intend to indefinitely reinvest the cash at our foreign subsidiaries in operations and other activities outside the united states . the decrease in cash and cash equivalents in 2015 was primarily due to $ 123.2 million spent for the repurchase of our common stock , $ 92.3 million spent on the acquisition of dvtel , inc. , $ 68.2 million spent on capital expenditures and dividends paid of $ 61.4 million , partially offset by cash provided from operations of $ 275.8 million . cash provided by operating activities in 2015 totaled $ 275.8 million compared to $ 226.2 million in 2014 and $ 355.0 million in 2013 . the increase in cash provided from operations in 2015 compared to 2014 was primarily due to the increase in net earnings . the decrease in cash provided from operations in 2014 compared to 2013 was primarily related to lower net collections of accounts receivable . cash used for investing activities for the year ended december 31 , 2015 totaled $ 134.8 million , consisting of $ 92.3 million , net of cash acquired , for the acquisition of dvtel , inc. and capital expenditures of $ 68.2 million , partially offset by $ 25.6 million of proceeds from the sale of an investment in a third party .
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Suspicious Activity Report : we evaluate our estimates , including those related to revenue recognition , allowance for doubtful accounts , inventories , goodwill , warranty obligations , contingencies and income taxes on an on-going basis . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . senior management has discussed the development , selection and disclosure of these estimates with the audit committee of our board of directors . we believe the following critical accounting policies and the related judgments and estimates affect the preparation of our consolidated financial statements . 32 revenue recognition . revenue is recognized when persuasive evidence of an arrangement exists , upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection , passage of title and risk of loss to the customer as indicated by the contractual terms and fulfillment of all significant obligations . we design , market and sell our products primarily as commercial , off-the-shelf products . certain customers request different system configurations , generally based on standard options or accessories that we offer . in general , our revenue arrangements do not involve acceptance provisions based upon customer specified acceptance criteria . in those circumstances when customer specified acceptance criteria exist , revenue is deferred until customer acceptance if we can not demonstrate that the system meets those specifications prior to shipment . for any contracts with multiple elements ( i.e . , training , installation , additional parts , etc . ) we allocate revenue among the deliverables primarily based upon objective and reliable evidence of fair value of each element in the arrangement . if objective and reliable evidence of fair value of any element is not available , we use an estimated selling price for purposes of allocating the total arrangement consideration among the elements . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . allowance for doubtful accounts . our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments . credit limits are established through a process of reviewing the financial history and stability of each customer . where appropriate , we obtain credit rating reports and financial statements of the customer when determining or modifying their credit limits . we regularly evaluate the collectability of our trade receivable balances based on a combination of factors . when a customer 's account balance becomes past due , we initiate dialogue with the customer to determine the cause . if it is determined that the customer will be unable to meet its financial obligation to us , such as in the case of a bankruptcy filing , deterioration in the customer 's operating results or financial position or other material events impacting their business , we record a specific allowance to reduce the related receivable to the amount we expect to recover given all information presently available . actual write-offs during the past three years have not been material to our results of operations . we also record an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers . as of december 31 , 2015 , our accounts receivable balance of $ 326.1 million is reported net of allowances for doubtful accounts of $ 6.9 million . we believe our reported allowances at december 31 , 2015 are adequate . if the financial conditions of those customers were to deteriorate , however , resulting in their inability to make payments , we may need to record additional allowances that would result in additional selling , general and administrative expenses being recorded for the period in which such determination is made . inventory . our policy is to record inventory write-downs when conditions exist that indicate that our inventories are likely to be in excess of anticipated demand or are obsolete based upon our assumptions about future demand for our products and market conditions . we regularly evaluate the ability to realize the value of our inventories based on a combination of factors including the following : historical usage rates , forecasted sales or usage , product end of life dates , estimated current and future market values and new product introductions . purchasing requirements and alternative usages are evaluated within these processes to mitigate inventory exposure . when recorded , our write-downs are intended to reduce the carrying value of our inventories to their net realizable value and establish a new cost basis . as of december 31 , 2015 , our inventories of $ 393.1 million are stated net of inventory write-downs . if actual demand for our products deteriorates or market conditions are less favorable than those that we project , additional inventory write-downs may be required in the future . goodwill . goodwill represents the excess purchase price of an acquired enterprise or assets over the estimated fair value of identifiable net assets acquired . we assess goodwill for potential impairment at the reporting unit level during the third quarter of each year , or whenever events or circumstances indicate that the carrying value of these assets may exceed their fair value . we may assess qualitative factors to make this determination , or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process . story_separator_special_tag earnings from operations increased by 14.5 percent primarily due to lower operating expenses and higher gross margins , partially offset by the decrease in revenues . during the year ended december 31 , 2015 , surveillance had restructuring charges of $ 0.2 million , compared to $ 5.2 million in 2014. revenue decreased by 6.2 percent in 2014 compared to 2013 , primarily due to the reductions in demand from united states government funded customers . earnings from operations decreased by 6.1 percent primarily due to the lower revenues , partially offset by cost savings generated as a result of restructuring activities . in 2013 , surveillance had restructuring charges of $ 5.4 million . instruments instruments operating results are as follows ( in millions , except percentages ) : replace_table_token_5_th instruments segment revenue for the year ended december 31 , 2015 decreased by 1.9 percent compared to the year ended december 31 , 2014 . the year over year decrease in revenue was primarily due to a revenue decline in the americas region , partially offset by an increase in the asia pacific region ; on a product line basis , declines in our higher end thermography and in our optical gas imaging product lines were partially offset by increases in our science , test and measurement , and fire product lines . revenues for the year ended december 31 , 2015 were also negatively impacted by year over year changes in currency exchange rates . on a constant currency basis , instruments revenues in 2015 increased by 4.9 percent compared to 2014. the increase in earnings from operations for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 is primarily due to lower restructuring expenses and costs savings associated with restructuring activities . as a large portion of segment expenses are incurred in europe , the segment experienced a favorable impact on its operating expenses from the changes in foreign currency rates which largely offset the associated decline in revenues in that region . during the year ended december 31 , 2015 , instrument had restructuring charges of $ 1.2 million compared to $ 11.0 million in the year ended december 31 , 2014 . 38 instruments segment revenue for the year ended december 31 , 2014 increased by 4.9 percent , compared to the year ended december 31 , 2013 . the year over year increase in revenue is primarily due to increased deliveries in most geographic regions and across most product lines , particularly for products introduced late in 2013 and in 2014. the increase in earnings from operations for the year ended december 31 , 2014 compared to 2013 is primarily due to higher revenues , lower restructuring expenses and cost savings generated from those restructuring activities . during 2013 , the segment incurred restructuring charges of $ 15.5 million . security security operating results are as follows ( in millions , except percentages ) : replace_table_token_6_th security segment revenue for the year ended december 31 , 2015 increased by 26.5 percent over the year ended december 31 , 2014. the increase was primarily due to increased deliveries across all product families and in the americas and europe geographic regions . the increase of earnings from operations of 13.1 percent was primarily due to the increase in revenues , partially offset by increases in sales and marketing support operating expenses . security segment revenue for the year ended december 31 , 2014 increased by 27.0 percent compared to the prior year primarily due to increased deliveries in all product families and expanded distribution . the increase in earnings from operations in 2014 of 43.4 percent over 2013 was primarily due to the increase in year over year revenues , partially offset by increased marketing , customer technical support and product development expenses . the increase in backlog was primarily due to an increase in orders from international customers which often have longer delivery times . oem & emerging markets oem & emerging markets operating results are as follows ( in millions , except percentages ) : replace_table_token_7_th oem & emerging markets segment revenue decreased by 6.2 percent in 2015 compared to 2014 , primarily due to the loss of approximately $ 8.8 million in 2014 revenue from our former optical components group which was sold in august 2014 and the negative impacts of changes in currency exchange rates . earnings from operations declined in 2015 compared to 2014 primarily due to the decrease in revenue and lower gross margins , partially offset by lower operating expenses . revenue increased by 8.2 percent in 2014 compared to 2013 , primarily due to increased deliveries to customers in the united states , particularly of uncooled camera cores and newly introduced mobile accessories . earnings from operations increased by 28.0 percent due to the increase in revenues and cost savings from restructuring activities . 39 maritime maritime operating results are as follows ( in millions , except percentages ) : replace_table_token_8_th maritime segment revenue for the year ended december 31 , 2015 decreased by 7.6 percent compared to 2014 primarily due to the negative impact of year over year changes in currency exchange rates in the europe and asia pacific regions . on a constant currency basis , 2015 revenue increased by 2.2 percent compared to 2014. since the majority of the segment 's costs of goods sold are incurred in united states dollars , those costs did not receive the favorable impact of changes in currency exchange rates . consequently , the decrease in earnings from operations in 2015 compared to 2014 was primarily due to the revenue decline . maritime segment revenue for the year ended december 31 , 2014 increased by 1.9 percent compared to the same period of 2013 primarily due to higher deliveries in europe and year over year unit volume increases from raymarine-branded product lines . detection detection operating results are as follows ( in
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1,085 | for more information on the mlp revolver , please see `` liquidity and capital resources—indebtedness—mlp revolver . `` how we generate revenue we generate revenue primarily by selling ethylene and the resulting co-products we produce . in connection with the ipo , opco and westlake entered into an ethylene sales agreement ( the `` ethylene sales agreement `` ) pursuant to which we generate a substantial majority of our revenue . the ethylene sales agreement is a long-term , fee-based agreement with a minimum purchase commitment and includes variable pricing based on opco 's actual feedstock and natural gas costs and estimated other costs of producing ethylene ( including opco 's estimated operating costs and a five-year average of opco 's expected future maintenance capital expenditures and other turnaround expenditures based on opco 's planned ethylene production capacity for the year ) , plus a fixed margin per pound of $ 0.10 less revenue from co-products sales . pursuant to the ethylene sales agreement , westlake 's obligation to pay for the annual minimum commitment ( 95 % of opco 's budgeted ethylene production ) , which is measured at the end of the year , is generally not reduced for the first 45 days of a force majeure event , but is reduced for the portion of a force majeure event extending beyond the 45th day . westlake has an option to take 95 % of volumes in excess of the minimum commitment on an annual basis under the ethylene sales agreement if we produce more than our planned production . under the ethylene sales agreement , the price for the sale of such excess ethylene to westlake is based on a formula similar to that used for the minimum purchase commitment , with the exception of certain fixed costs . in addition , under the ethylene sales agreement , if production costs billed to westlake on an annual basis are less than 95 % of the actual production costs incurred by opco during the contract year , opco is entitled to recover the shortfall in such production costs ( proportionate to the volume sold to westlake ) in the subsequent year ( `` shortfall `` ) . the shortfall is recognized during the period in which the related operating , maintenance or turnaround activities occur . 28 we sell ethylene production in excess of volumes sold to westlake , as well as all associated co-products resulting from the ethylene production , directly to third parties on either a spot or contract basis . net proceeds ( after transportation and other costs ) from the sales of associated co-products that result from the production of ethylene purchased by westlake are netted against the ethylene price charged to westlake under the ethylene sales agreement , thereby substantially reducing our exposure to fluctuations in the market prices of these co-products . during 2016 , all the third-party ethylene and associated co-products sales generated greater than 13 % of our total revenues . the significant drop in crude oil prices since the third quarter of 2014 and continuing through 2016 may create volatility in the north american and global markets , which may result in further reduced prices and margins in third-party ethylene and such co-products sales in 2017. under the services and secondment agreement , opco uses a portion of its production capacity to process purge gas for westlake . on august 4 , 2016 , opco and westlake entered into an amendment to the ethylene sales agreement in order to provide that certain of the pricing components that make up the price for ethylene sold thereunder would be modified to reflect the portion of opco 's production capacity that is used to process westlake 's purge gas instead of producing ethylene and to clarify that costs specific to the processing of westlake 's purge gas would be recovered under the services and secondment agreement , and not the ethylene sales agreement . please refer to note 2 to the consolidated and combined financial statements within this report for more information on the ethylene sales agreement . how we source feedstock in connection with the ipo , opco entered into a 12-year feedstock supply agreement ( the `` feedstock supply agreement `` ) with westlake petrochemicals llc , a wholly owned subsidiary of westlake , under which westlake petrochemicals llc supplies opco with ethane and other feedstocks that opco uses to produce ethylene under the ethylene sales agreement . opco may purchase the ethane and other feedstocks to produce ethylene and resulting co-products to sell to unrelated third parties from westlake petrochemicals llc . please refer to note 2 to the consolidated and combined financial statements within this report for more information on the feedstock supply agreement . how we evaluate operations our management uses a variety of financial and operating metrics to analyze our performance . these metrics are significant factors in assessing our operating results and profitability and include : ( 1 ) production volumes , ( 2 ) operating and maintenance expenses , including turnaround costs , and ( 3 ) mlp distributable cash flow and ebitda . production volumes the amount of profit we generate primarily depends on the volumes of ethylene and resulting co-products we are able to produce at calvert city olefins and lake charles olefins . although westlake has committed to purchasing minimum volumes from us under the ethylene sales agreement , our results of operations are impacted by our ability to : produce sufficient volumes of ethylene to meet our commitments under the ethylene sales agreement or recover our estimated costs through the pricing provisions of the ethylene sales agreement ; contract with third parties for the remaining uncommitted production capacity ; add or increase capacity at our existing production facilities , or add additional production capacity via organic expansion projects and acquisitions ; and achieve or exceed the specified yield factors for natural gas , ethane and other feedstock under the ethylene story_separator_special_tag this increase in interest expense was partially offset by the lower average interest rate for the year ended december 31 , 2016 as compared to the prior year due to the april 2015 repayment of a significant portion of the august 2013 promissory notes ( as defined in `` liquidity and capital resources—indebtedness `` ) , which bear a higher interest rate as compared to our other outstanding debt . 2015 compared with 2014 net sales . net sales decreased by $ 742.5 million , or 42.4 % , to $ 1,007.2 million in 2015 from $ 1,749.7 million in 2014 , primarily due to a lower average sales price of ethylene sold to westlake resulting from the execution of the ethylene sales agreement following the ipo , lower average sales price of ethylene sold to third parties due to the significant decline in market prices in 2015 and a lower volume of ethylene sold to third parties , partially offset by increased volume of ethylene sold to 34 westlake in 2015 as compared to 2014. the total ethylene sales volume in 2015 was lower as compared to 2014 due primarily to westlake 's retention of the predecessor 's ethylene procurement and reselling activities , which was partially offset by higher production in 2015 resulting from the calvert city olefins expansion in 2014 and other efficiency projects . further , co-product sales prices were significantly lower in 2015 as compared to 2014 , primarily due to the significant decline in market prices of coproducts , which resulted in a decrease in co-product sales to third parties . this decrease in sales prices was partially offset by an increase in volume of co-product sales to third parties . additionally , there were no excess feedstock sales subsequent to the ipo in 2014 or in 2015 as such activities were retained by westlake . the overall average sales prices of ethylene and co-products in 2015 decreased by 38.0 % as compared to 2014 and overall sales volumes in 2015 decreased by 4.4 % as compared to 2014. gross profit . gross profit margin percentage decreased to 38.0 % in 2015 from 42.6 % in 2014 primarily due to a reduction in margin for ethylene sold to westlake resulting from the ethylene sales agreement and also due to the decline in margin from ethylene sold to third parties as a result of the significant decline in ethylene market prices during 2015. the decrease was largely offset by a drop in feedstock prices , a decrease in energy costs as well as the absence in 2015 of costs and lost production associated with the calvert city olefins turnaround , conversion and expansion activities that took place during the first and second quarters of 2014. selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 5.7 million , or 19.5 % , to $ 23.6 million in 2015 from $ 29.3 million in 2014. the decrease was mainly attributable to the absence of an allocation from westlake of labor costs attributable to the predecessor 's operations retained by westlake after the ipo , partially offset by incremental selling , general and administrative expenses incurred by the partnership subsequent to the ipo as a result of being a separate publicly-traded partnership . interest expense . interest expense decreased by $ 5.5 million to $ 5.0 million in 2015 from $ 10.5 million in 2014 , primarily due to a lower average interest rate in 2015 as compared to the prior year . the lower average interest rate in 2015 as compared to the prior year was due to the repayment of a significant portion of the august 2013 promissory notes ( as defined in `` liquidity and capital resources—indebtedness `` ) in april 2015 , which bear a higher interest rate as compared to our other outstanding debt . other income , net . other income , net decreased by $ 3.0 million to $ 0.2 million in 2015 from $ 3.2 million in 2014 , primarily due to the absence of income attributable to the predecessor 's equity stake in a natural gas liquids pipeline joint venture that was not contributed to us in connection with the ipo . income taxes . the effective income tax rate was 0.2 % in 2015 as compared to 28.1 % for 2014. the effective income tax rate in 2015 is not comparable to the effective income tax rate for 2014 as the partnership is not subject to federal income taxes subsequent to the ipo . story_separator_special_tag font style= `` font-family : inherit ; font-size:10pt ; `` > the partnership maintains separate bank accounts , but westlake continues to provide treasury services on our behalf under the services and secondment agreement . our sources of liquidity include cash generated from operations , the opco revolver , the mlp revolver and , if necessary and possible under then current market conditions , the issuance of additional equity interests or debt . we believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements and long-term capital expenditure requirements and to make quarterly cash distributions . westlake may also provide other direct and indirect financing to us from time to time , although it is not required to do so . in order to fund non-annual turnaround expenditures , we cause opco to reserve approximately $ 30.0 million during each twelve-month period for turnaround activities . each of opco 's ethylene production facilities requires turnaround maintenance approximately every five years . by reserving additional cash annually , we intend to reduce the variability in opco 's cash flow . westlake 's purchase price for ethylene purchased under the ethylene sales agreement includes a component ( adjusted annually ) designed to cover , over the long term , substantially all of opco 's turnaround expenditures . our cash is generated from cash distributions from opco . opco was a restricted
| cash flows operating activities operating activities provided cash of $ 287.7 million in 2016 compared to cash provided of $ 452.5 million in 2015 . the $ 164.8 million decrease in cash flows from operating activities was mainly due to the lake charles petro 1 facility turnaround , which resulted in a net cash use of approximately $ 77.9 million during 2016 as compared to $ 3.5 million of net cash used during 2015 , and an increase in the use of cash for working capital purposes , as compared to the prior year . changes in components of working capital , which we define for the purposes of this cash flow discussion as accounts receivable—westlake , accounts receivable , net—third parties , inventories , prepaid expenses and other current assets less accounts payable—westlake , accounts payable—third parties and accrued liabilities , used cash of $ 89.8 million in 2016 as compared to $ 19.4 million of cash provided during 2015 , resulting in an overall unfavorable change of $ 109.2 million . this change was primarily due to the shortfall recognized as westlake receivable in 2016. operating activities provided cash of $ 452.5 million in 2015 compared to cash provided of $ 604.0 million in 2014. the $ 151.5 million decrease in cash flows from operating activities was mainly due to a decrease in net income from operations as a result of the ethylene sales agreement by $ 155.9 million , partially offset by a decrease in use of cash for working capital purposes .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows operating activities operating activities provided cash of $ 287.7 million in 2016 compared to cash provided of $ 452.5 million in 2015 . the $ 164.8 million decrease in cash flows from operating activities was mainly due to the lake charles petro 1 facility turnaround , which resulted in a net cash use of approximately $ 77.9 million during 2016 as compared to $ 3.5 million of net cash used during 2015 , and an increase in the use of cash for working capital purposes , as compared to the prior year . changes in components of working capital , which we define for the purposes of this cash flow discussion as accounts receivable—westlake , accounts receivable , net—third parties , inventories , prepaid expenses and other current assets less accounts payable—westlake , accounts payable—third parties and accrued liabilities , used cash of $ 89.8 million in 2016 as compared to $ 19.4 million of cash provided during 2015 , resulting in an overall unfavorable change of $ 109.2 million . this change was primarily due to the shortfall recognized as westlake receivable in 2016. operating activities provided cash of $ 452.5 million in 2015 compared to cash provided of $ 604.0 million in 2014. the $ 151.5 million decrease in cash flows from operating activities was mainly due to a decrease in net income from operations as a result of the ethylene sales agreement by $ 155.9 million , partially offset by a decrease in use of cash for working capital purposes .
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Suspicious Activity Report : for more information on the mlp revolver , please see `` liquidity and capital resources—indebtedness—mlp revolver . `` how we generate revenue we generate revenue primarily by selling ethylene and the resulting co-products we produce . in connection with the ipo , opco and westlake entered into an ethylene sales agreement ( the `` ethylene sales agreement `` ) pursuant to which we generate a substantial majority of our revenue . the ethylene sales agreement is a long-term , fee-based agreement with a minimum purchase commitment and includes variable pricing based on opco 's actual feedstock and natural gas costs and estimated other costs of producing ethylene ( including opco 's estimated operating costs and a five-year average of opco 's expected future maintenance capital expenditures and other turnaround expenditures based on opco 's planned ethylene production capacity for the year ) , plus a fixed margin per pound of $ 0.10 less revenue from co-products sales . pursuant to the ethylene sales agreement , westlake 's obligation to pay for the annual minimum commitment ( 95 % of opco 's budgeted ethylene production ) , which is measured at the end of the year , is generally not reduced for the first 45 days of a force majeure event , but is reduced for the portion of a force majeure event extending beyond the 45th day . westlake has an option to take 95 % of volumes in excess of the minimum commitment on an annual basis under the ethylene sales agreement if we produce more than our planned production . under the ethylene sales agreement , the price for the sale of such excess ethylene to westlake is based on a formula similar to that used for the minimum purchase commitment , with the exception of certain fixed costs . in addition , under the ethylene sales agreement , if production costs billed to westlake on an annual basis are less than 95 % of the actual production costs incurred by opco during the contract year , opco is entitled to recover the shortfall in such production costs ( proportionate to the volume sold to westlake ) in the subsequent year ( `` shortfall `` ) . the shortfall is recognized during the period in which the related operating , maintenance or turnaround activities occur . 28 we sell ethylene production in excess of volumes sold to westlake , as well as all associated co-products resulting from the ethylene production , directly to third parties on either a spot or contract basis . net proceeds ( after transportation and other costs ) from the sales of associated co-products that result from the production of ethylene purchased by westlake are netted against the ethylene price charged to westlake under the ethylene sales agreement , thereby substantially reducing our exposure to fluctuations in the market prices of these co-products . during 2016 , all the third-party ethylene and associated co-products sales generated greater than 13 % of our total revenues . the significant drop in crude oil prices since the third quarter of 2014 and continuing through 2016 may create volatility in the north american and global markets , which may result in further reduced prices and margins in third-party ethylene and such co-products sales in 2017. under the services and secondment agreement , opco uses a portion of its production capacity to process purge gas for westlake . on august 4 , 2016 , opco and westlake entered into an amendment to the ethylene sales agreement in order to provide that certain of the pricing components that make up the price for ethylene sold thereunder would be modified to reflect the portion of opco 's production capacity that is used to process westlake 's purge gas instead of producing ethylene and to clarify that costs specific to the processing of westlake 's purge gas would be recovered under the services and secondment agreement , and not the ethylene sales agreement . please refer to note 2 to the consolidated and combined financial statements within this report for more information on the ethylene sales agreement . how we source feedstock in connection with the ipo , opco entered into a 12-year feedstock supply agreement ( the `` feedstock supply agreement `` ) with westlake petrochemicals llc , a wholly owned subsidiary of westlake , under which westlake petrochemicals llc supplies opco with ethane and other feedstocks that opco uses to produce ethylene under the ethylene sales agreement . opco may purchase the ethane and other feedstocks to produce ethylene and resulting co-products to sell to unrelated third parties from westlake petrochemicals llc . please refer to note 2 to the consolidated and combined financial statements within this report for more information on the feedstock supply agreement . how we evaluate operations our management uses a variety of financial and operating metrics to analyze our performance . these metrics are significant factors in assessing our operating results and profitability and include : ( 1 ) production volumes , ( 2 ) operating and maintenance expenses , including turnaround costs , and ( 3 ) mlp distributable cash flow and ebitda . production volumes the amount of profit we generate primarily depends on the volumes of ethylene and resulting co-products we are able to produce at calvert city olefins and lake charles olefins . although westlake has committed to purchasing minimum volumes from us under the ethylene sales agreement , our results of operations are impacted by our ability to : produce sufficient volumes of ethylene to meet our commitments under the ethylene sales agreement or recover our estimated costs through the pricing provisions of the ethylene sales agreement ; contract with third parties for the remaining uncommitted production capacity ; add or increase capacity at our existing production facilities , or add additional production capacity via organic expansion projects and acquisitions ; and achieve or exceed the specified yield factors for natural gas , ethane and other feedstock under the ethylene story_separator_special_tag this increase in interest expense was partially offset by the lower average interest rate for the year ended december 31 , 2016 as compared to the prior year due to the april 2015 repayment of a significant portion of the august 2013 promissory notes ( as defined in `` liquidity and capital resources—indebtedness `` ) , which bear a higher interest rate as compared to our other outstanding debt . 2015 compared with 2014 net sales . net sales decreased by $ 742.5 million , or 42.4 % , to $ 1,007.2 million in 2015 from $ 1,749.7 million in 2014 , primarily due to a lower average sales price of ethylene sold to westlake resulting from the execution of the ethylene sales agreement following the ipo , lower average sales price of ethylene sold to third parties due to the significant decline in market prices in 2015 and a lower volume of ethylene sold to third parties , partially offset by increased volume of ethylene sold to 34 westlake in 2015 as compared to 2014. the total ethylene sales volume in 2015 was lower as compared to 2014 due primarily to westlake 's retention of the predecessor 's ethylene procurement and reselling activities , which was partially offset by higher production in 2015 resulting from the calvert city olefins expansion in 2014 and other efficiency projects . further , co-product sales prices were significantly lower in 2015 as compared to 2014 , primarily due to the significant decline in market prices of coproducts , which resulted in a decrease in co-product sales to third parties . this decrease in sales prices was partially offset by an increase in volume of co-product sales to third parties . additionally , there were no excess feedstock sales subsequent to the ipo in 2014 or in 2015 as such activities were retained by westlake . the overall average sales prices of ethylene and co-products in 2015 decreased by 38.0 % as compared to 2014 and overall sales volumes in 2015 decreased by 4.4 % as compared to 2014. gross profit . gross profit margin percentage decreased to 38.0 % in 2015 from 42.6 % in 2014 primarily due to a reduction in margin for ethylene sold to westlake resulting from the ethylene sales agreement and also due to the decline in margin from ethylene sold to third parties as a result of the significant decline in ethylene market prices during 2015. the decrease was largely offset by a drop in feedstock prices , a decrease in energy costs as well as the absence in 2015 of costs and lost production associated with the calvert city olefins turnaround , conversion and expansion activities that took place during the first and second quarters of 2014. selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 5.7 million , or 19.5 % , to $ 23.6 million in 2015 from $ 29.3 million in 2014. the decrease was mainly attributable to the absence of an allocation from westlake of labor costs attributable to the predecessor 's operations retained by westlake after the ipo , partially offset by incremental selling , general and administrative expenses incurred by the partnership subsequent to the ipo as a result of being a separate publicly-traded partnership . interest expense . interest expense decreased by $ 5.5 million to $ 5.0 million in 2015 from $ 10.5 million in 2014 , primarily due to a lower average interest rate in 2015 as compared to the prior year . the lower average interest rate in 2015 as compared to the prior year was due to the repayment of a significant portion of the august 2013 promissory notes ( as defined in `` liquidity and capital resources—indebtedness `` ) in april 2015 , which bear a higher interest rate as compared to our other outstanding debt . other income , net . other income , net decreased by $ 3.0 million to $ 0.2 million in 2015 from $ 3.2 million in 2014 , primarily due to the absence of income attributable to the predecessor 's equity stake in a natural gas liquids pipeline joint venture that was not contributed to us in connection with the ipo . income taxes . the effective income tax rate was 0.2 % in 2015 as compared to 28.1 % for 2014. the effective income tax rate in 2015 is not comparable to the effective income tax rate for 2014 as the partnership is not subject to federal income taxes subsequent to the ipo . story_separator_special_tag font style= `` font-family : inherit ; font-size:10pt ; `` > the partnership maintains separate bank accounts , but westlake continues to provide treasury services on our behalf under the services and secondment agreement . our sources of liquidity include cash generated from operations , the opco revolver , the mlp revolver and , if necessary and possible under then current market conditions , the issuance of additional equity interests or debt . we believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements and long-term capital expenditure requirements and to make quarterly cash distributions . westlake may also provide other direct and indirect financing to us from time to time , although it is not required to do so . in order to fund non-annual turnaround expenditures , we cause opco to reserve approximately $ 30.0 million during each twelve-month period for turnaround activities . each of opco 's ethylene production facilities requires turnaround maintenance approximately every five years . by reserving additional cash annually , we intend to reduce the variability in opco 's cash flow . westlake 's purchase price for ethylene purchased under the ethylene sales agreement includes a component ( adjusted annually ) designed to cover , over the long term , substantially all of opco 's turnaround expenditures . our cash is generated from cash distributions from opco . opco was a restricted
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1,086 | interest rates are outside the control of the company , so it must attempt to balance its pricing and duration of its loan portfolio against the risks of rising costs of its deposits and borrowings . 47 the continued success and attraction of anne arundel county , maryland , and vicinity , will also be important to the company 's ability to originate and grow its mortgage loans and deposits , as will the company 's continued focus on maintaining a low overhead . if the volatility in the market and the economy continues or worsens , the company 's business , financial condition , results of operations , access to funds and the price of its stock could be materially and adversely impacted . critical accounting policies the company 's significant accounting policies and recent accounting pronouncements are set forth in note 1 of the consolidated financial statements which are included under part iv , item 5 in this form 10-k. of these significant accounting policies , the company considers the policies regarding the allowance for loan losses , the valuation of foreclosed real estate , the evaluation of other than temporary impairment of investment securities and the valuation of the deferred tax asset to be its most critical accounting policies , given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations and future taxable income . in addition , changes in economic conditions can have a significant impact on real estate values of underlying collateral affecting the allowance for loan losses and therefore the provision for loan losses and results of operations as well as the valuation of foreclosed real estate . the company has developed policies and procedures for assessing the adequacy of the allowance for loan losses , recognizing that this process requires a number of assumptions and estimates with respect to its loan portfolio . the company 's assessments may be impacted in future periods by changes in economic conditions , the impact of regulatory examinations , and the discovery of information with respect to borrowers that is not known to management at the time of the issuance of the consolidated financial statements . comparison of statement of financial condition for december 31 , 2016 versus 2015. financial condition total assets increased by $ 25,406,000 , or 3.3 % to $ 787,485,000 at december 31 , 2016 , compared to the $ 762,079,000 at december 31 , 2015. increases in loans , cash , and deferred income taxes were the reasons for the increase . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000868271/000114036117012935/ # tableofcontents `` style= `` font-size : 8pt ; font-style : italic `` > the 2035 debentures were issued and sold to severn capital trust i ( the “ trust ” ) , of which 100 % of the common equity is owned by the company . the trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable capital securities ( “ capital securities ” ) to third-party investors and using the proceeds from the sale of such capital securities to purchase the 2035 debentures . the 2035 debentures held by the trust are the sole assets of the trust . distributions on the capital securities issued by the trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the 2035 debentures . the capital securities are subject to mandatory redemption , in whole or in part , upon repayment of the 2035 debentures . the company has entered into an agreement which , taken collectively , fully and unconditionally guarantees the capital securities subject to the terms of the guarantee . under the terms of the 2035 debenture , the company is permitted to defer the payment of interest on the 2035 debentures for up to 20 consecutive quarterly periods , provided that no event of default has occurred and is continuing . as of december 31 , 2015 , the company had deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid , including interest on unpaid interest , was $ 1,863,000. during the second quarter of 2016 , the company paid all of the deferred interest and as of december 31 , 2016 , the company is current on all interest due on the 2035 debenture . accrued interest payable and other liabilities . accrued interest payable and other liabilities decreased $ 9,243,000 , or 72.5 % , from $ 12,733,000 as of december 31 , 2015 to $ 3,490,000 as of december 31 , 2015. the decrease was due to the repayment of the deferred interest on the subordinated debentures and the repayment of all accrued and unpaid dividends and interest on its series b preferred stock in 2016. the total amount of deferred interest paid on the subordinated debentures was $ 1,863,000 and the amount of dividends and interest paid on the series b preferred stock was $ 7,590,000. subordinated notes and series a preferred stock . on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7,000,000. each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock and the company 's subordinated notes ( “ subordinated notes ” ) in the original principal amount of $ 50,000. the subordinated notes earned interest at an annual rate of 8.0 % , payable quarterly in arrears on the last day of march , june , september and december commencing december 31 , 2008. the subordinated notes were redeemable in whole or in part at the story_separator_special_tag the maturities of these long-term advances at december 31 , 2016 were as follows ( dollars in thousands ) : replace_table_token_18_th as of december 31 , 2016 , the company had outstanding $ 20,619,000 in principal amount of subordinated debt , consisting of the 2035 debentures . the 2035 debentures total $ 20,619,000 in principal amount which pay interest quarterly at a floating rate of interest of 3-month libor ( 0.88 % at december 31 , 2016 ) plus 200 basis points , and matures on january 7 , 2035 . 53 the subordinated notes that totaled $ 3,500,000 and paid interest at an annual rate of 8.0 % , were paid off on september 30 , 2016 and replaced with a loan from a commercial bank whereby the company borrowed $ 3,500,000 for a term of 8 years . the unsecured note bears interest at a fixed rate of 4.25 % for the first 36 months then , at the option of the company , converts to either ( 1 ) floating rate of the wall street journal prime plus .50 % or ( 2 ) fixed rate at two hundred seventy five ( 275 ) basis points over the five year amortizing federal home loan bank rate for the remaining five years . repayment terms are monthly interest only payments for the first 36 months , then quarterly principal payments of $ 175,000 plus interest . the loan is subject to a prepayment penalty of 1 % of the principal amount prepaid during the first 36 months . if the bancorp elects the 5 year fixed rate of 275 basis points over the federal home loan bank rate ( “ fhlb rate period ” ) , the loan will be subject to a prepayment penalty of 2 % during the first and second years of the fhlb rate period and 1 % of the principal repaid during the third , fourth and fifth years of the fhlb rate period . the company may make additional principal payments from internally generated funds of up to $ 875,000 per year during any fixed rate period without penalty . there is no prepayment penalty during any floating rate period . as of december 31 , 2016 , the company had $ 574,000 outstanding in mortgage loan commitments , and unadvanced construction commitments of $ 15,728,000 which the company expects to fund from the sources of liquidity described above . these amounts do not include undisbursed lines of credit , home equity lines of credit and standby letters of credit , in the aggregate amount of $ 45,883,000 at december 31 , 2016 , which the company anticipates it will be able to fund , if required , from these liquidity sources in the regular course of business . in addition to the foregoing , the payment of dividends is a use of cash , but is not expected to have a material effect on liquidity . as of december 31 , 2016 , the company had no material commitments for capital expenditures . the bank is subject to various regulatory capital requirements administered by the federal banking agencies . failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary , actions by the regulators that , if undertaken , could have a direct material effect on the bank 's financial statements . under capital adequacy guidelines and the regulatory framework for prompt corrective action , the bank must meet specific capital guidelines that involve quantitative measures of the bank 's assets , liabilities , and certain off-balance sheet items as calculated under regulatory accounting practices . the bank 's capital amounts and classifications are also subject to qualitative judgments by the regulators about components , risk weightings , and other factors . as of december 31 , 2016 , that the bank exceeded all capital adequacy requirements to which it is subject and is considered well-capitalized as shown in the table on page 26. we anticipate that our primary sources of liquidity in fiscal 2017 will be from loan repayments , maturing investments , deposit growth and borrowed funds . we believe that these sources of liquidity will be sufficient for the company to meet its liquidity needs over the next twelve months . cash generated from these liquidity sources may be affected by a number of factors . see “ risk factors ” for a discussion of the factors that can negatively impact the amount of cash we could receive . off-balance sheet arrangements . the company has certain outstanding commitments and obligations that could impact the company 's financial condition , liquidity , revenues or expenses . these commitments and obligations include standby letters of credit , home equity lines of credit , loan commitments , lines of credit , and loans sold and serviced with limited repurchase provisions . standby letters of credit , which are conditional commitments of the company to guarantee performance of customers to various municipalities , decreased $ 1,915,000 , or 32.3 % , as of december 31 , 2016 to $ 4,022,000 , compared to $ 5,937,000 as of december 31 , 2015. the company continues to experience a decrease in demand from its customers for letter of credit requirements . the company requires collateral supporting these letters of credit as deemed necessary , and believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees . the current amount of the liability for guarantees under standby letters of credit issued as of december 31 , 2016 and 2015 was $ 94,000 and $ 115,000 , respectively . 54 unadvanced construction commitments decreased $ 5,373,000 , or 25.5 % , as of december 31 , 2016 to $ 15,728,000 , compared to $ 21,101,000 as of december 31 , 2015. this decrease was primarily the result of decreased construction activity in 2016
| cash cash and cash equivalents increased by $ 23,523,000 , or 54.0 % , to $ 67,114,000 at december 31 , 2016 , compared to $ 43,591,000 at december 31 , 2015. this increase was primarily due to proceeds received in 2016 from matured securities and mortgage backed securities pay downs and deposit growth . investments investment securities held to maturity decreased by $ 13,376,000 , or 17.6 % , to $ 62,757,000 at december 31 , 2016 , compared to $ 76,133,000 at december 31 , 2015. this decrease was primarily due to management 's decision to use matured securities funds and pay downs from mortgage backed securities to fund an increase in loan demand . loans loans held for sale . loans held for sale decreased by $ 2,896,000 , or 21.9 % , to $ 10,307,000 at december 31 , 2016 , compared to $ 13,203,000 at december 31 , 2015. this decrease was primarily due to the timing of loans pending sale on the secondary market as of december 31 , 2016 compared to december 31 , 2015. loans receivable . total loans receivable , net increased by $ 11,653,000 , or 2.0 % , to $ 601,309,000 at december 31 , 2016 , compared to $ 589,656,000 at december 31 , 2015. this increase was primarily due to an increase in the commercial portfolio loan demand . 48 allowance for loan losses the allowance for loan losses increased by $ 211,000 , or 2.4 % , at december 31 , 2016 to $ 8,969,000 , compared to $ 8,758,000 at december 31 , 2015. this increase in the allowance was primarily due to an increased loan portfolio , and management 's assessment of the collectability of the loans in the company 's portfolio .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash cash and cash equivalents increased by $ 23,523,000 , or 54.0 % , to $ 67,114,000 at december 31 , 2016 , compared to $ 43,591,000 at december 31 , 2015. this increase was primarily due to proceeds received in 2016 from matured securities and mortgage backed securities pay downs and deposit growth . investments investment securities held to maturity decreased by $ 13,376,000 , or 17.6 % , to $ 62,757,000 at december 31 , 2016 , compared to $ 76,133,000 at december 31 , 2015. this decrease was primarily due to management 's decision to use matured securities funds and pay downs from mortgage backed securities to fund an increase in loan demand . loans loans held for sale . loans held for sale decreased by $ 2,896,000 , or 21.9 % , to $ 10,307,000 at december 31 , 2016 , compared to $ 13,203,000 at december 31 , 2015. this decrease was primarily due to the timing of loans pending sale on the secondary market as of december 31 , 2016 compared to december 31 , 2015. loans receivable . total loans receivable , net increased by $ 11,653,000 , or 2.0 % , to $ 601,309,000 at december 31 , 2016 , compared to $ 589,656,000 at december 31 , 2015. this increase was primarily due to an increase in the commercial portfolio loan demand . 48 allowance for loan losses the allowance for loan losses increased by $ 211,000 , or 2.4 % , at december 31 , 2016 to $ 8,969,000 , compared to $ 8,758,000 at december 31 , 2015. this increase in the allowance was primarily due to an increased loan portfolio , and management 's assessment of the collectability of the loans in the company 's portfolio .
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Suspicious Activity Report : interest rates are outside the control of the company , so it must attempt to balance its pricing and duration of its loan portfolio against the risks of rising costs of its deposits and borrowings . 47 the continued success and attraction of anne arundel county , maryland , and vicinity , will also be important to the company 's ability to originate and grow its mortgage loans and deposits , as will the company 's continued focus on maintaining a low overhead . if the volatility in the market and the economy continues or worsens , the company 's business , financial condition , results of operations , access to funds and the price of its stock could be materially and adversely impacted . critical accounting policies the company 's significant accounting policies and recent accounting pronouncements are set forth in note 1 of the consolidated financial statements which are included under part iv , item 5 in this form 10-k. of these significant accounting policies , the company considers the policies regarding the allowance for loan losses , the valuation of foreclosed real estate , the evaluation of other than temporary impairment of investment securities and the valuation of the deferred tax asset to be its most critical accounting policies , given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations and future taxable income . in addition , changes in economic conditions can have a significant impact on real estate values of underlying collateral affecting the allowance for loan losses and therefore the provision for loan losses and results of operations as well as the valuation of foreclosed real estate . the company has developed policies and procedures for assessing the adequacy of the allowance for loan losses , recognizing that this process requires a number of assumptions and estimates with respect to its loan portfolio . the company 's assessments may be impacted in future periods by changes in economic conditions , the impact of regulatory examinations , and the discovery of information with respect to borrowers that is not known to management at the time of the issuance of the consolidated financial statements . comparison of statement of financial condition for december 31 , 2016 versus 2015. financial condition total assets increased by $ 25,406,000 , or 3.3 % to $ 787,485,000 at december 31 , 2016 , compared to the $ 762,079,000 at december 31 , 2015. increases in loans , cash , and deferred income taxes were the reasons for the increase . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000868271/000114036117012935/ # tableofcontents `` style= `` font-size : 8pt ; font-style : italic `` > the 2035 debentures were issued and sold to severn capital trust i ( the “ trust ” ) , of which 100 % of the common equity is owned by the company . the trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable capital securities ( “ capital securities ” ) to third-party investors and using the proceeds from the sale of such capital securities to purchase the 2035 debentures . the 2035 debentures held by the trust are the sole assets of the trust . distributions on the capital securities issued by the trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the 2035 debentures . the capital securities are subject to mandatory redemption , in whole or in part , upon repayment of the 2035 debentures . the company has entered into an agreement which , taken collectively , fully and unconditionally guarantees the capital securities subject to the terms of the guarantee . under the terms of the 2035 debenture , the company is permitted to defer the payment of interest on the 2035 debentures for up to 20 consecutive quarterly periods , provided that no event of default has occurred and is continuing . as of december 31 , 2015 , the company had deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid , including interest on unpaid interest , was $ 1,863,000. during the second quarter of 2016 , the company paid all of the deferred interest and as of december 31 , 2016 , the company is current on all interest due on the 2035 debenture . accrued interest payable and other liabilities . accrued interest payable and other liabilities decreased $ 9,243,000 , or 72.5 % , from $ 12,733,000 as of december 31 , 2015 to $ 3,490,000 as of december 31 , 2015. the decrease was due to the repayment of the deferred interest on the subordinated debentures and the repayment of all accrued and unpaid dividends and interest on its series b preferred stock in 2016. the total amount of deferred interest paid on the subordinated debentures was $ 1,863,000 and the amount of dividends and interest paid on the series b preferred stock was $ 7,590,000. subordinated notes and series a preferred stock . on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7,000,000. each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock and the company 's subordinated notes ( “ subordinated notes ” ) in the original principal amount of $ 50,000. the subordinated notes earned interest at an annual rate of 8.0 % , payable quarterly in arrears on the last day of march , june , september and december commencing december 31 , 2008. the subordinated notes were redeemable in whole or in part at the story_separator_special_tag the maturities of these long-term advances at december 31 , 2016 were as follows ( dollars in thousands ) : replace_table_token_18_th as of december 31 , 2016 , the company had outstanding $ 20,619,000 in principal amount of subordinated debt , consisting of the 2035 debentures . the 2035 debentures total $ 20,619,000 in principal amount which pay interest quarterly at a floating rate of interest of 3-month libor ( 0.88 % at december 31 , 2016 ) plus 200 basis points , and matures on january 7 , 2035 . 53 the subordinated notes that totaled $ 3,500,000 and paid interest at an annual rate of 8.0 % , were paid off on september 30 , 2016 and replaced with a loan from a commercial bank whereby the company borrowed $ 3,500,000 for a term of 8 years . the unsecured note bears interest at a fixed rate of 4.25 % for the first 36 months then , at the option of the company , converts to either ( 1 ) floating rate of the wall street journal prime plus .50 % or ( 2 ) fixed rate at two hundred seventy five ( 275 ) basis points over the five year amortizing federal home loan bank rate for the remaining five years . repayment terms are monthly interest only payments for the first 36 months , then quarterly principal payments of $ 175,000 plus interest . the loan is subject to a prepayment penalty of 1 % of the principal amount prepaid during the first 36 months . if the bancorp elects the 5 year fixed rate of 275 basis points over the federal home loan bank rate ( “ fhlb rate period ” ) , the loan will be subject to a prepayment penalty of 2 % during the first and second years of the fhlb rate period and 1 % of the principal repaid during the third , fourth and fifth years of the fhlb rate period . the company may make additional principal payments from internally generated funds of up to $ 875,000 per year during any fixed rate period without penalty . there is no prepayment penalty during any floating rate period . as of december 31 , 2016 , the company had $ 574,000 outstanding in mortgage loan commitments , and unadvanced construction commitments of $ 15,728,000 which the company expects to fund from the sources of liquidity described above . these amounts do not include undisbursed lines of credit , home equity lines of credit and standby letters of credit , in the aggregate amount of $ 45,883,000 at december 31 , 2016 , which the company anticipates it will be able to fund , if required , from these liquidity sources in the regular course of business . in addition to the foregoing , the payment of dividends is a use of cash , but is not expected to have a material effect on liquidity . as of december 31 , 2016 , the company had no material commitments for capital expenditures . the bank is subject to various regulatory capital requirements administered by the federal banking agencies . failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary , actions by the regulators that , if undertaken , could have a direct material effect on the bank 's financial statements . under capital adequacy guidelines and the regulatory framework for prompt corrective action , the bank must meet specific capital guidelines that involve quantitative measures of the bank 's assets , liabilities , and certain off-balance sheet items as calculated under regulatory accounting practices . the bank 's capital amounts and classifications are also subject to qualitative judgments by the regulators about components , risk weightings , and other factors . as of december 31 , 2016 , that the bank exceeded all capital adequacy requirements to which it is subject and is considered well-capitalized as shown in the table on page 26. we anticipate that our primary sources of liquidity in fiscal 2017 will be from loan repayments , maturing investments , deposit growth and borrowed funds . we believe that these sources of liquidity will be sufficient for the company to meet its liquidity needs over the next twelve months . cash generated from these liquidity sources may be affected by a number of factors . see “ risk factors ” for a discussion of the factors that can negatively impact the amount of cash we could receive . off-balance sheet arrangements . the company has certain outstanding commitments and obligations that could impact the company 's financial condition , liquidity , revenues or expenses . these commitments and obligations include standby letters of credit , home equity lines of credit , loan commitments , lines of credit , and loans sold and serviced with limited repurchase provisions . standby letters of credit , which are conditional commitments of the company to guarantee performance of customers to various municipalities , decreased $ 1,915,000 , or 32.3 % , as of december 31 , 2016 to $ 4,022,000 , compared to $ 5,937,000 as of december 31 , 2015. the company continues to experience a decrease in demand from its customers for letter of credit requirements . the company requires collateral supporting these letters of credit as deemed necessary , and believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees . the current amount of the liability for guarantees under standby letters of credit issued as of december 31 , 2016 and 2015 was $ 94,000 and $ 115,000 , respectively . 54 unadvanced construction commitments decreased $ 5,373,000 , or 25.5 % , as of december 31 , 2016 to $ 15,728,000 , compared to $ 21,101,000 as of december 31 , 2015. this decrease was primarily the result of decreased construction activity in 2016
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1,087 | in addition , the parties agreed to dismiss with prejudice the lawsuit commenced by got in january 2014. operating leases the company leases office facilities and office , lab and factory equipment under operating story_separator_special_tag introduction the following discussion should be read in conjunction with the financial statements and notes thereto . our fiscal year ends december 31. this document contains certain forward-looking statements including , among others , anticipated trends in our financial condition and results of operations and our business strategy . these forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties . ( see part i , item 1a , `` risk factors `` ) . actual results could differ materially from these forward-looking statements . important factors to consider in evaluating such forward-looking statements include ( i ) changes in external factors or in our internal budgeting process which might impact trends in our results of operations ; ( ii ) unanticipated working capital or other cash requirements ; ( iii ) changes in our business strategy or an inability to execute our strategy due to unanticipated changes in the industries in which we operate ; and ( iv ) various competitive market factors that may prevent us from competing successfully in the marketplace . overview we design , manufacture and supply miniature displays , which we refer to as oled-on-silicon-microdisplays , and microdisplay modules for virtual imaging , primarily for incorporation into the products of other manufacturers . microdisplays are typically smaller than many postage stamps , but when viewed through a magnifier they can contain all of the information appearing on a high-resolution personal computer screen . our microdisplays use organic light emitting diodes , or oleds , which emit light themselves when a current is passed through the device . our technology permits oleds to be coated onto silicon chips to produce high resolution oled-on-silicon microdisplays . we believe that our oled-on-silicon microdisplays offer a number of advantages in near to the eye applications over other current microdisplay technologies , including lower power requirements , less weight , fast video speed without flicker , and wider viewing angles . in addition , many computer and video electronic system functions can be built directly into the oled-on-silicon microdisplay , resulting in compact systems with lower expected overall system costs relative to alternate microdisplay technologies . we have devoted significant resources to the development and commercial launch of our oled microdisplay products into military , industrial and medical applications world-wide . first sales of our svga+ microdisplay began in may 2001 and we launched the svga-3d microdisplay in february 2002. in 2008 the sxga microdisplay became our first digital display , and in 2011 we introduced the vga oled-xl , our lowest powered microdisplay , and the wuxga oled-xl which exceeds 1080p hd resolution . as of january 31 , 2015 and 2014 , we had a backlog of approximately $ 8.5 and $ 13.4 mil lion , respectively , in products ordered for delivery through december 31 , 2015 and 2014 , respectively . this backlog consists of non-binding purchase orders and purchase agreements . these products are being applied or considered for near-eye and headset applications in products such as thermal imagers , night vision goggles , entertainment headsets , handheld internet and telecommunication appliances , viewfinders , and wearable computers to be manufactured by original equipment manufacturer ( oem ) customers . in addition to marketing oled-on-silicon microdisplays as components , we also offer microdisplays as an integrated package , which we call microviewer that includes a compact lens for viewing the microdisplay and electronic interfaces to convert the signal from our customer 's product into a viewable image on the microdisplay . we have also expanded our design and production activities to include display/optical subsystem assemblies for both military and commercial end-use products . we have developed a strong intellectual property portfolio that includes patents , manufacturing know-how and unique proprietary technologies to create high performance oled-on-silicon microdisplays and related optical systems . we believe our technology , intellectual property portfolio and position in the marketplace , gives us a leadership position in oled and oled-on-silicon microdisplay technology . we are one of only a few companies in the world to market and produce significant quantities of high resolution full-color small molecule oled-on-silicon microdisplays . in first quarter 2014 , emagin received a notification to stop shipments to three of its customers regarding a possible wire bonding problem in some of our microdisplays shipped to these customers . this issue resulted in a delay of shipments to these customers which impacted revenue for 2014. shipments to two of the three customers resumed in 2014. we are working with the third customer currently and expect to resume shipments to this customer in 2015. also in 2014 , emagin was awarded and began work on several new r & d contracts that will result in significant additional revenue beginning in 2014 and continuing in 2015 and 2016. the awards total over $ 7 million . there are three government programs : 1 ) to improve the backplane ; 2 ) to increase the brightness of the oled display and 3 ) the mantech program , which was awarded to increase the efficiency of the oled microdisplay manufacturing process . these r & d contracts are on schedule . initial design work was completed for the improved backplane project . preliminary tests to fabricate very low voltage , high brightness , oled devices show encouraging results . story_separator_special_tag accordingly , we increased our deferred tax asset to $ 8.8 million by recording a $ 0.7 million reduction of our deferred tax asset valuation allowance and recorded a corresponding tax benefit of $ 0.7 million . in 2013 , we had an operating loss and a projected cumulative loss through 2014 thus it was more likely than not that any of our deferred tax assets would be realized therefore , we recorded a full valuation allowance and income tax expense of $ 8.9 million . in 2014 , we incurred an operating loss and have a cumulative loss therefore it is more likely than not that none of our deferred tax assets will be realized and therefore , we maintained a full valuation allowance against our deferred tax assets . our effective income tax rate was an expense of 0 % and 171 % , respectively , in 2014 and 2013. the year over year change in our effective tax rate was primarily due to the recognition of a full valuation allowance on our deferred tax asset in 2013. results of operations the following table presents certain financial data as a percentage of total revenue for the periods indicated . our historical operating results are not necessarily indicative of the results for any future period . consolidated statements of operations data : replace_table_token_4_th year ended december 31 , 2014 compared to year ended december 31 , 2013 revenues replace_table_token_5_th revenues decreased approximately $ 2.3 million to a total of approximately $ 26.0 million for the year ended december 31 , 2014 from approximately $ 28.0 million for the year ended december 31 , 2013 , an 8 % decrease . in 2014 , product revenue decreased as there was an 18 % decrease in the number of displays sold offset by an 11 % increase in the average selling price as compared to 2013. contract revenue was relatively unchanged year over year . 24 cost of goods sold replace_table_token_6_th cost of goods sold is comprised of costs of product revenue and contract revenue . cost of product revenue includes materials , labor and manufacturing overhead related to our products . cost of contract revenue includes direct and allocated indirect costs associated with performance on contracts . cost of goods sold for the year ended december 31 , 2014 was approximately $ 18.3 million as compared to approximately $ 19.6 million for the year ended december 31 , 2013 , a decrease of approximately $ 1.2 million . cost of goods sold as a percentage of revenues was 71 % for the year ended december 31 , 2014 up from 70 % for the year ended december 31 , 2013 which is a result of a higher cost per display in 2014 , partially offset by a higher average selling price . depreciation increased $ 0.3 million due to the installation of new equipment . the following table outlines product , contract and total gross profit and related gross margins for the years ended december 31 , 2014 and 2013 ( dollars in thousands ) : replace_table_token_7_th in 2014 , total gross profit decreased approximately $ 1.0 million or 12 % . product revenue gross profit decreased approximately $ 1.1 million . gross margin was 29 % for the year ended december 31 , 2014 down slightly from 30 % for the year ended december 31 , 2013. product gross margin decreased from 29 % in 2013 to 28 % in 2014 due to a higher cost per display , partially offset by a higher average selling price in 2014. contract gross margin increased from 41 % in 2013 to 43 % in 2014. contract gross margin is dependent upon the mix of internal versus external third party costs , with the external third party costs causing a lower gross margin and reducing the contract gross profit . 25 operating expenses replace_table_token_8_th research and development expenses research and development expenses include salaries , development materials and other costs specifically allocated to the development of new microdisplay products , oled materials and subsystems . research and development expenses for the year ended december 31 , 2014 were approximately $ 4.5 million as compared to approximately $ 5.0 million for the year ended december 31 , 2013 , a decrease of approximately $ 0.5 million . the decrease in company-funded r & d expenses is due to expense being allocated to external funded contracts and lower non-cash compensation expense . selling , general and administrative expenses selling , general and administrative expenses consist principally of personnel costs , professional services fees , as well as other marketing , general corporate and administrative expenses . selling , general and administrative expenses for the years ended december 31 , 2014 were approximately $ 8.1 million as compared to approximately $ 8.6 million for the year ended december 31 , 2013 , a decrease of approximately $ 0.5 million . for the year ended december 31 , 2014 as compared to 2013 , there was a decrease in non-cash compensation and personnel costs offset by an increase in bad debt expense . other income ( expense ) other income ( expense ) , net consists primarily of interest income earned on investments , interest expense , and gain or loss on sale of assets . for the years ended december 31 , 2014 and 2013 , interest expense net of capitalization was $ 28 thousand and $ 31 thousand , respectively . we have no debt upon which we are incurring interest expense ; however , we pay fees to keep our line of credit available . other income for the years ended december 31 , 2014 and 2013 was $ 22 thousand and $ 50 thousand , respectively , with the majority of change related to a decrease in interest income earned on investments . income tax expense ( benefit ) for the years ended december 31 , 2014 and 2013 , income tax
| liquidity and capital resources as of december 31 , 2014 , we had approximately $ 6.0 million of cash , cash equivalents , and investments as compared to $ 11.0 million at december 31 , 2013. as of december 31 , 2014 , we had approximately $ 5.3 million of cash and cash equivalents as compared to $ 4.0 million as of december 31 , 2013 , an increase of $ 1.3 million . the increase in cash was primarily due to cash provided by investing and financing activities of $ 6.0 million offset by cash used in operating activities of approximately $ 4.7 million . for the year ended december 31 , 2014 , operating activities used $ 4.7 million in cash , which was attributable to our net loss of approximately $ 5.3 million and the change in operating assets and liabilities of $ 2.4 million offset by approximately $ 3.0 million from the net non-cash expenses . for the year ended december 31 , 2013 , operating activities used $ 0.8 million in cash , which was attributable to our net loss of approximately $ 14.1 million offset by approximately $ 11.8 million from the net non-cash expenses and the change in operating assets and liabilities of $ 1.5 million . for the year ended december 31 , 2014 , investing activities provided approximately $ 4.6 million in cash of which approximately $ 6.3 million was from net investments maturing offset by approximately $ 1.5 million of equipment purchases primarily for upgrading our production line and $ 0.2 million to purchase intangible assets .
| 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. |
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 as of december 31 , 2014 , we had approximately $ 6.0 million of cash , cash equivalents , and investments as compared to $ 11.0 million at december 31 , 2013. as of december 31 , 2014 , we had approximately $ 5.3 million of cash and cash equivalents as compared to $ 4.0 million as of december 31 , 2013 , an increase of $ 1.3 million . the increase in cash was primarily due to cash provided by investing and financing activities of $ 6.0 million offset by cash used in operating activities of approximately $ 4.7 million . for the year ended december 31 , 2014 , operating activities used $ 4.7 million in cash , which was attributable to our net loss of approximately $ 5.3 million and the change in operating assets and liabilities of $ 2.4 million offset by approximately $ 3.0 million from the net non-cash expenses . for the year ended december 31 , 2013 , operating activities used $ 0.8 million in cash , which was attributable to our net loss of approximately $ 14.1 million offset by approximately $ 11.8 million from the net non-cash expenses and the change in operating assets and liabilities of $ 1.5 million . for the year ended december 31 , 2014 , investing activities provided approximately $ 4.6 million in cash of which approximately $ 6.3 million was from net investments maturing offset by approximately $ 1.5 million of equipment purchases primarily for upgrading our production line and $ 0.2 million to purchase intangible assets .
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Suspicious Activity Report : in addition , the parties agreed to dismiss with prejudice the lawsuit commenced by got in january 2014. operating leases the company leases office facilities and office , lab and factory equipment under operating story_separator_special_tag introduction the following discussion should be read in conjunction with the financial statements and notes thereto . our fiscal year ends december 31. this document contains certain forward-looking statements including , among others , anticipated trends in our financial condition and results of operations and our business strategy . these forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties . ( see part i , item 1a , `` risk factors `` ) . actual results could differ materially from these forward-looking statements . important factors to consider in evaluating such forward-looking statements include ( i ) changes in external factors or in our internal budgeting process which might impact trends in our results of operations ; ( ii ) unanticipated working capital or other cash requirements ; ( iii ) changes in our business strategy or an inability to execute our strategy due to unanticipated changes in the industries in which we operate ; and ( iv ) various competitive market factors that may prevent us from competing successfully in the marketplace . overview we design , manufacture and supply miniature displays , which we refer to as oled-on-silicon-microdisplays , and microdisplay modules for virtual imaging , primarily for incorporation into the products of other manufacturers . microdisplays are typically smaller than many postage stamps , but when viewed through a magnifier they can contain all of the information appearing on a high-resolution personal computer screen . our microdisplays use organic light emitting diodes , or oleds , which emit light themselves when a current is passed through the device . our technology permits oleds to be coated onto silicon chips to produce high resolution oled-on-silicon microdisplays . we believe that our oled-on-silicon microdisplays offer a number of advantages in near to the eye applications over other current microdisplay technologies , including lower power requirements , less weight , fast video speed without flicker , and wider viewing angles . in addition , many computer and video electronic system functions can be built directly into the oled-on-silicon microdisplay , resulting in compact systems with lower expected overall system costs relative to alternate microdisplay technologies . we have devoted significant resources to the development and commercial launch of our oled microdisplay products into military , industrial and medical applications world-wide . first sales of our svga+ microdisplay began in may 2001 and we launched the svga-3d microdisplay in february 2002. in 2008 the sxga microdisplay became our first digital display , and in 2011 we introduced the vga oled-xl , our lowest powered microdisplay , and the wuxga oled-xl which exceeds 1080p hd resolution . as of january 31 , 2015 and 2014 , we had a backlog of approximately $ 8.5 and $ 13.4 mil lion , respectively , in products ordered for delivery through december 31 , 2015 and 2014 , respectively . this backlog consists of non-binding purchase orders and purchase agreements . these products are being applied or considered for near-eye and headset applications in products such as thermal imagers , night vision goggles , entertainment headsets , handheld internet and telecommunication appliances , viewfinders , and wearable computers to be manufactured by original equipment manufacturer ( oem ) customers . in addition to marketing oled-on-silicon microdisplays as components , we also offer microdisplays as an integrated package , which we call microviewer that includes a compact lens for viewing the microdisplay and electronic interfaces to convert the signal from our customer 's product into a viewable image on the microdisplay . we have also expanded our design and production activities to include display/optical subsystem assemblies for both military and commercial end-use products . we have developed a strong intellectual property portfolio that includes patents , manufacturing know-how and unique proprietary technologies to create high performance oled-on-silicon microdisplays and related optical systems . we believe our technology , intellectual property portfolio and position in the marketplace , gives us a leadership position in oled and oled-on-silicon microdisplay technology . we are one of only a few companies in the world to market and produce significant quantities of high resolution full-color small molecule oled-on-silicon microdisplays . in first quarter 2014 , emagin received a notification to stop shipments to three of its customers regarding a possible wire bonding problem in some of our microdisplays shipped to these customers . this issue resulted in a delay of shipments to these customers which impacted revenue for 2014. shipments to two of the three customers resumed in 2014. we are working with the third customer currently and expect to resume shipments to this customer in 2015. also in 2014 , emagin was awarded and began work on several new r & d contracts that will result in significant additional revenue beginning in 2014 and continuing in 2015 and 2016. the awards total over $ 7 million . there are three government programs : 1 ) to improve the backplane ; 2 ) to increase the brightness of the oled display and 3 ) the mantech program , which was awarded to increase the efficiency of the oled microdisplay manufacturing process . these r & d contracts are on schedule . initial design work was completed for the improved backplane project . preliminary tests to fabricate very low voltage , high brightness , oled devices show encouraging results . story_separator_special_tag accordingly , we increased our deferred tax asset to $ 8.8 million by recording a $ 0.7 million reduction of our deferred tax asset valuation allowance and recorded a corresponding tax benefit of $ 0.7 million . in 2013 , we had an operating loss and a projected cumulative loss through 2014 thus it was more likely than not that any of our deferred tax assets would be realized therefore , we recorded a full valuation allowance and income tax expense of $ 8.9 million . in 2014 , we incurred an operating loss and have a cumulative loss therefore it is more likely than not that none of our deferred tax assets will be realized and therefore , we maintained a full valuation allowance against our deferred tax assets . our effective income tax rate was an expense of 0 % and 171 % , respectively , in 2014 and 2013. the year over year change in our effective tax rate was primarily due to the recognition of a full valuation allowance on our deferred tax asset in 2013. results of operations the following table presents certain financial data as a percentage of total revenue for the periods indicated . our historical operating results are not necessarily indicative of the results for any future period . consolidated statements of operations data : replace_table_token_4_th year ended december 31 , 2014 compared to year ended december 31 , 2013 revenues replace_table_token_5_th revenues decreased approximately $ 2.3 million to a total of approximately $ 26.0 million for the year ended december 31 , 2014 from approximately $ 28.0 million for the year ended december 31 , 2013 , an 8 % decrease . in 2014 , product revenue decreased as there was an 18 % decrease in the number of displays sold offset by an 11 % increase in the average selling price as compared to 2013. contract revenue was relatively unchanged year over year . 24 cost of goods sold replace_table_token_6_th cost of goods sold is comprised of costs of product revenue and contract revenue . cost of product revenue includes materials , labor and manufacturing overhead related to our products . cost of contract revenue includes direct and allocated indirect costs associated with performance on contracts . cost of goods sold for the year ended december 31 , 2014 was approximately $ 18.3 million as compared to approximately $ 19.6 million for the year ended december 31 , 2013 , a decrease of approximately $ 1.2 million . cost of goods sold as a percentage of revenues was 71 % for the year ended december 31 , 2014 up from 70 % for the year ended december 31 , 2013 which is a result of a higher cost per display in 2014 , partially offset by a higher average selling price . depreciation increased $ 0.3 million due to the installation of new equipment . the following table outlines product , contract and total gross profit and related gross margins for the years ended december 31 , 2014 and 2013 ( dollars in thousands ) : replace_table_token_7_th in 2014 , total gross profit decreased approximately $ 1.0 million or 12 % . product revenue gross profit decreased approximately $ 1.1 million . gross margin was 29 % for the year ended december 31 , 2014 down slightly from 30 % for the year ended december 31 , 2013. product gross margin decreased from 29 % in 2013 to 28 % in 2014 due to a higher cost per display , partially offset by a higher average selling price in 2014. contract gross margin increased from 41 % in 2013 to 43 % in 2014. contract gross margin is dependent upon the mix of internal versus external third party costs , with the external third party costs causing a lower gross margin and reducing the contract gross profit . 25 operating expenses replace_table_token_8_th research and development expenses research and development expenses include salaries , development materials and other costs specifically allocated to the development of new microdisplay products , oled materials and subsystems . research and development expenses for the year ended december 31 , 2014 were approximately $ 4.5 million as compared to approximately $ 5.0 million for the year ended december 31 , 2013 , a decrease of approximately $ 0.5 million . the decrease in company-funded r & d expenses is due to expense being allocated to external funded contracts and lower non-cash compensation expense . selling , general and administrative expenses selling , general and administrative expenses consist principally of personnel costs , professional services fees , as well as other marketing , general corporate and administrative expenses . selling , general and administrative expenses for the years ended december 31 , 2014 were approximately $ 8.1 million as compared to approximately $ 8.6 million for the year ended december 31 , 2013 , a decrease of approximately $ 0.5 million . for the year ended december 31 , 2014 as compared to 2013 , there was a decrease in non-cash compensation and personnel costs offset by an increase in bad debt expense . other income ( expense ) other income ( expense ) , net consists primarily of interest income earned on investments , interest expense , and gain or loss on sale of assets . for the years ended december 31 , 2014 and 2013 , interest expense net of capitalization was $ 28 thousand and $ 31 thousand , respectively . we have no debt upon which we are incurring interest expense ; however , we pay fees to keep our line of credit available . other income for the years ended december 31 , 2014 and 2013 was $ 22 thousand and $ 50 thousand , respectively , with the majority of change related to a decrease in interest income earned on investments . income tax expense ( benefit ) for the years ended december 31 , 2014 and 2013 , income tax
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1,088 | during 2016 , sohu video began to shift our focus to the self-developed content category , which , in our view , will create long-lasting value to our platform and offer better financial returns compared to tv station content . leveraging our exclusive original content , we also actively explored opportunities with subscription services that we believe will become an important revenue source in addition to traditional advertising revenues . financially , sohu video 's revenues for 2016 were affected by the weak economy and a turnover of the video sales team in the middle of the year , and its loss-making widened from 2015. for our search and search-related business , sogou is one of the top players in the online search sector in china . we have reinforced our competitive position through cooperation with tencent , which has helped us build exclusive access to tencent 's social platforms and bring in unique and high-quality content . in 2016 , we launched and upgraded a series of vertical channels , including english , academic and healthcare . these new services helped us stand out from competing products . by the end of december 2016 , sogou 's mobile search traffic grew 70 % from the same period in 2015 , contributing 75 % of aggregate traffic . mobile search revenues accounted for two-thirds of total search revenues . during 2016 , we also made solid progress in artificial intelligence , in particular with voice technology . the daily use of voice input through sogou mobile keyboard more than doubled from a year ago . due to newly-imposed regulations for online advertising that tightened the scrutiny of advertiser qualifications , sogou 's revenue growth for 2016 decelerated from previous years ' . for changyou 's pc game business , the pc game tlbb experienced a relatively large drop in revenue at the beginning of 2016 , and changyou immediately adjusted its operational strategy to focus on user stabilization by cutting down on the number of in-game promotions , improving in-game content and strengthening social functionality . the revenues of tlbb remained stable throughout the year , with slight increases in the third and fourth quarters on a sequential basis . for changyou 's mobile game business , revenues from tlbb 3d declined sequentially mainly due to its natural declining life cycle . in order to extend the game 's life span , changyou will explore new social interactive features that can be added to the game . overall , changyou started at the beginning of 2016 to focus on producing high-quality games . this approach and higher testing standards have set the bar high for new games in the pipeline , which had an impact on 2016 revenues . nevertheless , after a year of hard work , changyou now has a solid pipeline with a focus on mmorpg games , and supplemented by a number of advanced casual games in 2017. for the three months ended december 31 , 2016 , the pc games and mobile games that changyou operates had approximately 4.1 million total average monthly active accounts and approximately 1.4 million total active paying accounts . critical accounting policies and management estimates our discussion and analysis of our financial condition and results of operations relates to our consolidated financial statements , which have been prepared in accordance with united states of america generally accepted accounting principles ( u.s . gaap ) . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues , costs and expenses , and related disclosures . on an on-going basis , we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . identified below are the accounting policies that reflect our most significant estimates and judgments , and those that we believe are the most critical to fully understanding and evaluating our consolidated financial statements . basis of consolidation our consolidated financial statements include the accounts of sohu.com inc. and its subsidiaries and consolidated vies . all intercompany transactions are eliminated . vie consolidation our vies are wholly or partially owned by certain of our employees as nominee shareholders . for our consolidated vies , management made evaluations of the relationships between us and our vies and the economic benefit flow of contractual arrangements with the vies . in connection with such evaluation , management also took into account the fact that , as a result of such contractual arrangements , we control the shareholders ' voting interests in these vies . as a result of such evaluation , management concluded that we are the primary beneficiary of our consolidated vies . 114 noncontrolling interest recognition noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and vies which is not attributable , directly or indirectly , to the controlling shareholder . currently , the noncontrolling interests in our consolidated financial statements primarily consist of noncontrolling interests for sogou and changyou . noncontrolling interest for sogou sogou 's share structure as of december 31 , 2016 , sogou had outstanding a combined total of 334,746,495 ordinary shares and preferred shares held as follows : ( i ) sohu.com inc. : 131,697,750 class a ordinary shares , of which 4,484,500 shares may be purchased by sohu management and key employees under an option arrangement ; ( ii ) photon group limited , an investment vehicle of the sohu group 's chairman and chief executive officer charles zhang ( photon ) : 32,000,000 series a preferred shares ; ( iii ) tencent : 6,757,875 class a ordinary shares , 65,431,579 series b preferred shares and story_separator_special_tag changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service . accordingly , revenues are recorded gross of revenue sharing-payments to third-party developers and or mobile app stores , but are net of business tax/vat and discounts to game card distributors where applicable . changyou obtains revenues from the sale of in-game virtual items . revenues are recognized over the estimated lives of the virtual items purchased by game players or as the virtual items are consumed . if different assumptions were used in deriving the estimated lives of the virtual items , the timing of the recording of the revenues would be impacted . pc games proceeds from the self-operation of pc games are collected from players and third-party game card distributors through sales of changyou 's game points on its online payment platform and prepaid game cards . self-operated pc games are either developed in house or licensed from third-party developers . for licensed pc games , changyou remits a pre-agreed percentage of the proceeds to the third-party developers , and keeps the balance pursuant to revenue-sharing agreements . such revenue-sharing amounts paid to third-party developers are recorded in changyou 's cost of revenues . mobile games for self-operated mobile games , changyou sells game points to its game players via third-party mobile app stores . the mobile app stores in turn pay changyou proceeds after deducting their share of pre-agreed revenue-sharing amounts . 119 self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers . for licensed and jointly developed mobile games , changyou remits a pre-agreed percentage of the proceeds to the third-party developers , and keeps the balance pursuant to revenue-sharing agreements . such revenue-sharing amounts paid to mobile application stores and third-party developers are recorded in changyou 's cost of revenues . web games changyou continued to operate a small portfolio of self-operated web games after its sale of the 7road business in 2015. proceeds from those web games are collected from players through the sale of game points . licensed-out games changyou also authorizes third parties to operate its online games . licensed out games include pc games and mobile games developed in house and mobile games jointly developed with third-party developers . changyou receives monthly revenue-based royalty payments from all the third-party licensee operators . changyou receives additional up-front license fees from certain third-party licensee operators who are entitled to an exclusive right to operate changyou 's games in specified geographic areas . since changyou is obligated to provide post-sale services , the initial license fees are recognized as revenue ratably over the license period , and the monthly revenue-based royalty payments are recognized when relevant services are delivered , provided that collectability is reasonably assured . changyou views the third-party licensee operators as changyou 's customers and recognizes revenues on a net basis , as changyou does not have the primary responsibility for fulfillment and acceptability of the game services . changyou remits to the third-party developers a pre-agreed percentage of revenues from jointly developed and licensed out mobile games , and recognizes revenues on a net basis . other revenues sohu other revenues attributable to sohu consist primarily of revenues from paid subscription services , interactive broadcasting services , sub-licensing of purchased video content to third parties , content provided through the platforms of the three main telecommunications operators in china , and the filming business . 120 sogou other revenues attributable to sogou are primarily ivas revenues derived from the operation of web games and mobile games of third-party developers as well as other services and products that sogou provides to users . changyou other revenues attributable to changyou are primarily from its cinema advertising business and from ivas . in its cinema advertising business , changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies . the rights to place advertisements in such advertising slots are granted under contracts changyou signs with different theaters . when all the recognition criteria are met , revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period . changyou provides ivas primarily through software applications for pcs and mobile devices offered by mobotap on the dolphin browser and by raidcall . revenues from ivas are recognized during the period the service rendered or items consumed under the gross method , as changyou is the principal obligor for provision of the services . cost of revenues cost of online advertising revenues cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services . cost of brand advertising revenues cost of brand advertising revenues mainly consists of content and license costs , bandwidth leasing costs , and salary and benefits expense . cost of search and search-related revenues cost of search and search-related revenues mainly consists of traffic acquisition costs , bandwidth leasing costs , depreciation expenses , as well as salary and benefits expenses . traffic acquisition costs represent payments made to sogou website alliance members . we pay sogou website alliance members based either on revenue-sharing arrangements or on a pre-agreed unit price . under the revenue-sharing arrangements , we pay a percentage of pay-for-click revenues generated from clicks by users of the website alliance members ' properties . cost of online game revenues cost of online game revenues mainly consists of revenue-sharing payments , salary and benefits expense , bandwidth leasing costs , content and license costs , amortization and depreciation expenses , and other direct costs . cost of other revenues cost of other revenues mainly consists of payments to theaters and film production companies for pre-film screening advertising slots , content and license costs related to paid subscription services , revenue-sharing payments related
| cash generating ability our cash flows were summarized below ( in thousands ) : replace_table_token_13_th net cash provided by operating activities for 2016 , $ 239.6 million net cash provided by operating activities was primarily attributable to our net loss of $ 115.0 million , adjusted by ( i ) the add back of non-cash items consisting of $ 204.6 million in depreciation and amortization , $ 22.9 million in impairment of intangible and other assets , $ 19.1 million of share-based compensation expense , $ 7.1 million in provision for allowance for doubtful accounts , and $ 0.8 million of other items , ( ii ) offset by $ 13.1 million in change in fair value of financial instruments . the increase in cash from $ 113.2 million in working capital items is also included in operating cash flow . 141 for 2015 , $ 506.1 million net cash provided by operating activities was primarily attributable to our net income of $ 108.9 million , adjusted by ( i ) the add back of non-cash items consisting of $ 237.4 million in depreciation and amortization expense , $ 53.4 million in share-based compensation expense , $ 40.3 million in goodwill impairment and impairment of intangible assets acquired as part of business acquisitions , $ 17.8 million in impairment of intangible and other assets , a $ 7.5 million investment loss from equity investments , and $ 3.1 million of other items , ( ii ) offset by $ 55.1 million of gain from the sale of the 7road business and certain changyou subsidiaries , $ 11.9 million of gain from sale of investments , and a $ 1.3 million change in the fair value of financial instruments . the increase in cash from $ 106.0 million working capital items is also included in operating cash flow .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash generating ability our cash flows were summarized below ( in thousands ) : replace_table_token_13_th net cash provided by operating activities for 2016 , $ 239.6 million net cash provided by operating activities was primarily attributable to our net loss of $ 115.0 million , adjusted by ( i ) the add back of non-cash items consisting of $ 204.6 million in depreciation and amortization , $ 22.9 million in impairment of intangible and other assets , $ 19.1 million of share-based compensation expense , $ 7.1 million in provision for allowance for doubtful accounts , and $ 0.8 million of other items , ( ii ) offset by $ 13.1 million in change in fair value of financial instruments . the increase in cash from $ 113.2 million in working capital items is also included in operating cash flow . 141 for 2015 , $ 506.1 million net cash provided by operating activities was primarily attributable to our net income of $ 108.9 million , adjusted by ( i ) the add back of non-cash items consisting of $ 237.4 million in depreciation and amortization expense , $ 53.4 million in share-based compensation expense , $ 40.3 million in goodwill impairment and impairment of intangible assets acquired as part of business acquisitions , $ 17.8 million in impairment of intangible and other assets , a $ 7.5 million investment loss from equity investments , and $ 3.1 million of other items , ( ii ) offset by $ 55.1 million of gain from the sale of the 7road business and certain changyou subsidiaries , $ 11.9 million of gain from sale of investments , and a $ 1.3 million change in the fair value of financial instruments . the increase in cash from $ 106.0 million working capital items is also included in operating cash flow .
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Suspicious Activity Report : during 2016 , sohu video began to shift our focus to the self-developed content category , which , in our view , will create long-lasting value to our platform and offer better financial returns compared to tv station content . leveraging our exclusive original content , we also actively explored opportunities with subscription services that we believe will become an important revenue source in addition to traditional advertising revenues . financially , sohu video 's revenues for 2016 were affected by the weak economy and a turnover of the video sales team in the middle of the year , and its loss-making widened from 2015. for our search and search-related business , sogou is one of the top players in the online search sector in china . we have reinforced our competitive position through cooperation with tencent , which has helped us build exclusive access to tencent 's social platforms and bring in unique and high-quality content . in 2016 , we launched and upgraded a series of vertical channels , including english , academic and healthcare . these new services helped us stand out from competing products . by the end of december 2016 , sogou 's mobile search traffic grew 70 % from the same period in 2015 , contributing 75 % of aggregate traffic . mobile search revenues accounted for two-thirds of total search revenues . during 2016 , we also made solid progress in artificial intelligence , in particular with voice technology . the daily use of voice input through sogou mobile keyboard more than doubled from a year ago . due to newly-imposed regulations for online advertising that tightened the scrutiny of advertiser qualifications , sogou 's revenue growth for 2016 decelerated from previous years ' . for changyou 's pc game business , the pc game tlbb experienced a relatively large drop in revenue at the beginning of 2016 , and changyou immediately adjusted its operational strategy to focus on user stabilization by cutting down on the number of in-game promotions , improving in-game content and strengthening social functionality . the revenues of tlbb remained stable throughout the year , with slight increases in the third and fourth quarters on a sequential basis . for changyou 's mobile game business , revenues from tlbb 3d declined sequentially mainly due to its natural declining life cycle . in order to extend the game 's life span , changyou will explore new social interactive features that can be added to the game . overall , changyou started at the beginning of 2016 to focus on producing high-quality games . this approach and higher testing standards have set the bar high for new games in the pipeline , which had an impact on 2016 revenues . nevertheless , after a year of hard work , changyou now has a solid pipeline with a focus on mmorpg games , and supplemented by a number of advanced casual games in 2017. for the three months ended december 31 , 2016 , the pc games and mobile games that changyou operates had approximately 4.1 million total average monthly active accounts and approximately 1.4 million total active paying accounts . critical accounting policies and management estimates our discussion and analysis of our financial condition and results of operations relates to our consolidated financial statements , which have been prepared in accordance with united states of america generally accepted accounting principles ( u.s . gaap ) . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues , costs and expenses , and related disclosures . on an on-going basis , we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . identified below are the accounting policies that reflect our most significant estimates and judgments , and those that we believe are the most critical to fully understanding and evaluating our consolidated financial statements . basis of consolidation our consolidated financial statements include the accounts of sohu.com inc. and its subsidiaries and consolidated vies . all intercompany transactions are eliminated . vie consolidation our vies are wholly or partially owned by certain of our employees as nominee shareholders . for our consolidated vies , management made evaluations of the relationships between us and our vies and the economic benefit flow of contractual arrangements with the vies . in connection with such evaluation , management also took into account the fact that , as a result of such contractual arrangements , we control the shareholders ' voting interests in these vies . as a result of such evaluation , management concluded that we are the primary beneficiary of our consolidated vies . 114 noncontrolling interest recognition noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and vies which is not attributable , directly or indirectly , to the controlling shareholder . currently , the noncontrolling interests in our consolidated financial statements primarily consist of noncontrolling interests for sogou and changyou . noncontrolling interest for sogou sogou 's share structure as of december 31 , 2016 , sogou had outstanding a combined total of 334,746,495 ordinary shares and preferred shares held as follows : ( i ) sohu.com inc. : 131,697,750 class a ordinary shares , of which 4,484,500 shares may be purchased by sohu management and key employees under an option arrangement ; ( ii ) photon group limited , an investment vehicle of the sohu group 's chairman and chief executive officer charles zhang ( photon ) : 32,000,000 series a preferred shares ; ( iii ) tencent : 6,757,875 class a ordinary shares , 65,431,579 series b preferred shares and story_separator_special_tag changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service . accordingly , revenues are recorded gross of revenue sharing-payments to third-party developers and or mobile app stores , but are net of business tax/vat and discounts to game card distributors where applicable . changyou obtains revenues from the sale of in-game virtual items . revenues are recognized over the estimated lives of the virtual items purchased by game players or as the virtual items are consumed . if different assumptions were used in deriving the estimated lives of the virtual items , the timing of the recording of the revenues would be impacted . pc games proceeds from the self-operation of pc games are collected from players and third-party game card distributors through sales of changyou 's game points on its online payment platform and prepaid game cards . self-operated pc games are either developed in house or licensed from third-party developers . for licensed pc games , changyou remits a pre-agreed percentage of the proceeds to the third-party developers , and keeps the balance pursuant to revenue-sharing agreements . such revenue-sharing amounts paid to third-party developers are recorded in changyou 's cost of revenues . mobile games for self-operated mobile games , changyou sells game points to its game players via third-party mobile app stores . the mobile app stores in turn pay changyou proceeds after deducting their share of pre-agreed revenue-sharing amounts . 119 self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers . for licensed and jointly developed mobile games , changyou remits a pre-agreed percentage of the proceeds to the third-party developers , and keeps the balance pursuant to revenue-sharing agreements . such revenue-sharing amounts paid to mobile application stores and third-party developers are recorded in changyou 's cost of revenues . web games changyou continued to operate a small portfolio of self-operated web games after its sale of the 7road business in 2015. proceeds from those web games are collected from players through the sale of game points . licensed-out games changyou also authorizes third parties to operate its online games . licensed out games include pc games and mobile games developed in house and mobile games jointly developed with third-party developers . changyou receives monthly revenue-based royalty payments from all the third-party licensee operators . changyou receives additional up-front license fees from certain third-party licensee operators who are entitled to an exclusive right to operate changyou 's games in specified geographic areas . since changyou is obligated to provide post-sale services , the initial license fees are recognized as revenue ratably over the license period , and the monthly revenue-based royalty payments are recognized when relevant services are delivered , provided that collectability is reasonably assured . changyou views the third-party licensee operators as changyou 's customers and recognizes revenues on a net basis , as changyou does not have the primary responsibility for fulfillment and acceptability of the game services . changyou remits to the third-party developers a pre-agreed percentage of revenues from jointly developed and licensed out mobile games , and recognizes revenues on a net basis . other revenues sohu other revenues attributable to sohu consist primarily of revenues from paid subscription services , interactive broadcasting services , sub-licensing of purchased video content to third parties , content provided through the platforms of the three main telecommunications operators in china , and the filming business . 120 sogou other revenues attributable to sogou are primarily ivas revenues derived from the operation of web games and mobile games of third-party developers as well as other services and products that sogou provides to users . changyou other revenues attributable to changyou are primarily from its cinema advertising business and from ivas . in its cinema advertising business , changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies . the rights to place advertisements in such advertising slots are granted under contracts changyou signs with different theaters . when all the recognition criteria are met , revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period . changyou provides ivas primarily through software applications for pcs and mobile devices offered by mobotap on the dolphin browser and by raidcall . revenues from ivas are recognized during the period the service rendered or items consumed under the gross method , as changyou is the principal obligor for provision of the services . cost of revenues cost of online advertising revenues cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services . cost of brand advertising revenues cost of brand advertising revenues mainly consists of content and license costs , bandwidth leasing costs , and salary and benefits expense . cost of search and search-related revenues cost of search and search-related revenues mainly consists of traffic acquisition costs , bandwidth leasing costs , depreciation expenses , as well as salary and benefits expenses . traffic acquisition costs represent payments made to sogou website alliance members . we pay sogou website alliance members based either on revenue-sharing arrangements or on a pre-agreed unit price . under the revenue-sharing arrangements , we pay a percentage of pay-for-click revenues generated from clicks by users of the website alliance members ' properties . cost of online game revenues cost of online game revenues mainly consists of revenue-sharing payments , salary and benefits expense , bandwidth leasing costs , content and license costs , amortization and depreciation expenses , and other direct costs . cost of other revenues cost of other revenues mainly consists of payments to theaters and film production companies for pre-film screening advertising slots , content and license costs related to paid subscription services , revenue-sharing payments related
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1,089 | 14 results of operations the following table sets forth , for the years indicated , the percentage of revenues represented by the items as shown in the company 's consolidated statements of operations : replace_table_token_5_th 2011 compared to 2010 net sales increased 5.4 % to $ 127.2 million for the year ended december 31 , 2011 , from net sales of $ 120.8 million in the same period of 2010. the $ 6.4 million increase in sales was largely attributable to increased sales into the aerospace and defense industries of approximately $ 3.1 million fueled by a new contract for the us marines to supply backpack components ( component products segment ) as well as demand for interior trim parts from the automotive industry of approximately $ 1.8 million ( component products segment ) . gross profit as a percentage of sales ( gross margin ) decreased slightly to 28.5 % for the year ended december 31 , 2011 , from 28.7 % in 2010. the slight decrease in gross margin is primarily attributable to costs of approximately $ 350,000 incurred as a result of the closure of the company 's manufacturing facility in alabama as well as approximately $ 300,000 incurred in additional health insurance claims ( overhead ) partially offset by manufacturing efficiencies achieved in the company 's plants ( as a percentage of sales material and direct labor collectively decreased by 0.2 % in 2011 ) . selling , general , and administrative expenses ( sg & a ) increased 5.6 % to $ 21.4 million for the year ended december 31 , 2011 , from $ 20.2 million in 2010. as a percentage of sales , sg & a was 16.8 % for both the years ended december 31 , 2011 , and 2010. the $ 1.2 million increase in sg & a for the year ended december 31 , 2011 , is primarily due to an increase in professional fees of approximately $ 400,000 associated with the development of enhanced internal operating and information systems and a re-branding and marketing project , approximately $ 400,000 in additional administrative salaries , wages and benefits and approximately $ 200,000 in additional health insurance claims . interest expense net of interest income decreased to approximately $ 27,000 for the year ended december 31 , 2011 , from net interest expense of approximately $ 116,000 in 2010. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the gain on sale of assets of approximately $ 834,000 was derived primarily from the sale of real estate in alabama by udt . of this $ 834,000 gain , approximately $ 428,000 relates to non-controlling interests that have been deducted to determine net income attributable to ufp technologies , inc. , and $ 250,000 represents a one-time fee paid to the company for managing the transaction . 15 the company recorded income tax expense as a percentage of income before income tax expense excluding net income attributable to non-controlling interests , of 31.3 % and 34.8 % for the year ended december 31 , 2011 , and 2010 , respectively . the decrease in the effective tax rate for the year ended december 31 , 2011 , is primarily attributable to the reversal in 2011 of approximately $ 385,000 in reserves previously established for uncertain tax benefits due to a favorable outcome on a concluded federal internal revenue service audit and the statute of limitations expiring on certain other federal income tax filings as well as increased deductions associated with domestic manufacturing . the non-controlling interest in udt is not subject to corporate income tax . the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets are more likely than not to be realized , and has not recorded a tax valuation allowance at december 31 , 2011. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 2010 compared to 2009 net sales increased 21.7 % to $ 120.8 million for the year ended december 31 , 2010 , from net sales of $ 99.2 million in the same period of 2009 , driven primarily by the 2009 acquisitions of foamade , enm , and ami ( all within the component products segment ) . without sales from these acquisitions for the portion of 2010 in which they were not owned in 2009 , sales would have increased 10.0 % to $ 109.1 million . the increase in sales excluding these acquisitions was largely due to increased demand for interior trim parts from the automotive industry of approximately $ 6.6 million ( component products segment ) , as well as an increase in sales in the packaging segment of approximately $ 2.3 million , due largely to the impact of the improved economy on demand for our customers ' parts . gross profit as a percentage of sales ( gross margin ) increased to 28.7 % for the year ended december 31 , 2010 , from 26.9 % in 2009. the increase in gross margin is primarily attributable to the company 's ability to leverage sales growth against the fixed component of cost of sales ( overhead ) , partially offset by lower-than-average margins from the increased salesof automotive trim parts ( component products segment ) . story_separator_special_tag overhead as a percentage of sales decreased by 2.2 % while material and direct labor collectively increased by 0.4 % . selling , general , and administrative expenses ( sg & a ) increased 9.2 % to $ 20.2 million for the year ended december 31 , 2010 , from $ 18.5 million in 2009. as a percentage of sales , sg & a was 16.8 % and 18.7 % , respectively , for the years ended december 31 , 2010 , and 2009. the increase in sg & a for the year ended december 31 , 2010 , is primarily due to increased sg & a associated with newly acquired companies of approximately $ 1.2 million ( component products segment ) and increased variable-based compensation of approximately $ 500,000 ( primarily component products segment ) . the decrease in sg & a as a percentage of sales is primarily a result of the fixed-cost components of sg & a being measured against higher sales . interest expense net of interest income decreased to approximately $ 116,000 for the year ended december 31 , 2010 , from interest expense of approximately $ 233,000 in 2009. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the company recorded income tax expense as a percentage of pre-tax income of 34.8 % and 32.0 % for the year ended december 31 , 2010 and 2009 , respectively . the increase in effective tax rate for 2010 is primarily due to the non-taxable gains recorded on the acquisitions of foamade , enm , and ami in 2009. the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets will be realized , and has not recorded a tax valuation allowance at december 31 , 2010. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 16 story_separator_special_tag style= `` font-size:10.0pt ; `` > the company recognizes revenue at the time of shipment when title and risk of loss have passed to the customer , persuasive evidence of an arrangement exists , performance of its obligation is complete , its price to the buyer is fixed or determinable , and the company is reasonably assured of collection . if a loss is anticipated on any contract , a provision for the entire loss is made immediately . determination of these criteria , in some cases , requires management 's judgment . should changes in conditions cause management to determine that these criteria are not met for certain future transactions , revenue for any reporting period could be adversely affected . intangible assets intangible assets include patents and other intangible assets . intangible assets with an indefinite life are not amortized . intangible assets with a definite life are amortized on a straight-line basis , with estimated useful lives ranging from eight to 14 years . indefinite-lived intangible assets are tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . goodwill goodwill is tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . impairment testing for goodwill is done at a reporting unit level . reporting units are one level below the business segment level , but can be combined when reporting units within the same segment have similar economic characteristics . the company 's reporting units include its component products segment , packaging segment ( excluding its molded fiber operation ) , and its molded fiber operation . an impairment loss generally would be recognized when the carrying amount of the reporting unit 's net assets exceeds the estimated fair value of the reporting 18 unit . the company assessed qualitative factors as of december 31 , 2011 , and determined that it was more likely than not that the fair value of both reporting units exceeded their respective carrying amounts . factors considered for each reporting unit included financial performance , forecasts and trends , market cap , regulatory and environmental issues , foreign currency , market analysis , recent transactions , macro-economic conditions , industry and market considerations , raw material costs , management stability , and the degree by which the fair value of each reporting unit exceeded its carrying value in 2010 ( approximately $ 37 million or 161 % and $ 7 million or 190 % for the component products and molded fiber reporting units , respectively ) . as a result , no goodwill impairment test was performed in 2011. based upon tests performed in 2010 and 2009 , there was no goodwill impairment as of december 31 , 2010 , and 2009. accounts receivable the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments . these allowances for doubtful accounts are determined by reviewing specific accounts the company has deemed are at risk of being uncollectible and other credit risks associated with groups of customers . if the financial condition of the company 's customers were to deteriorate or economic conditions were to deteriorate , resulting in an impairment of their
| liquidity and capital resources the company funds its operating expenses , capital requirements , and growth plan through internally-generated cash . as of december 31 , 2011 , and 2010 , working capital was approximately $ 48.6 million and $ 38.3 million , respectively . the increase in working capital is primarily attributable to an increase in cash of approximately $ 7.7 million due to cash generated from operations and increased inventories of approximately $ 1.7 million due largely to the build-up of finished goods associated with a project for the us marines . cash provided from operations was approximately $ 11.7 million and $ 11.8 million in 2011 and 2010 , respectively . the primary reasons for the slight decrease in cash generated from operations in 2011 were ( i ) an increase in inventory in 2011 of approximately $ 1.7 million compared to an increase in inventory in 2010 of approximately $ 400,000 due largely to an increase in inventory associated with a military program , ( ii ) a decrease in accrued taxes and other expenses of approximately $ 440,000 in 2011 compared to an increase in 2010 of approximately $ 1.4 million due mostly to higher income tax payments made in 2011 , partially offset by ( iii ) an increase in profits in 2011 of approximately $ 1.4 million . net cash used in investing activities in 2011 was approximately $ 2.5 million and was used primarily for the acquisition of new manufacturing equipment of approximately $ 3.7 million , partially offset by cash provided from the sale of real estate of approximately $ 1.2 million . on january 29 , 2009 , the company amended and extended its credit facility with bank of america , na . the facility is comprised of : ( i ) a revolving credit facility of $ 17 million ; ( ii ) a term loan of $ 2.1 million with a seven-year straight-line amortization ; ( iii ) a term loan of $ 1.8
| 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. |
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 funds its operating expenses , capital requirements , and growth plan through internally-generated cash . as of december 31 , 2011 , and 2010 , working capital was approximately $ 48.6 million and $ 38.3 million , respectively . the increase in working capital is primarily attributable to an increase in cash of approximately $ 7.7 million due to cash generated from operations and increased inventories of approximately $ 1.7 million due largely to the build-up of finished goods associated with a project for the us marines . cash provided from operations was approximately $ 11.7 million and $ 11.8 million in 2011 and 2010 , respectively . the primary reasons for the slight decrease in cash generated from operations in 2011 were ( i ) an increase in inventory in 2011 of approximately $ 1.7 million compared to an increase in inventory in 2010 of approximately $ 400,000 due largely to an increase in inventory associated with a military program , ( ii ) a decrease in accrued taxes and other expenses of approximately $ 440,000 in 2011 compared to an increase in 2010 of approximately $ 1.4 million due mostly to higher income tax payments made in 2011 , partially offset by ( iii ) an increase in profits in 2011 of approximately $ 1.4 million . net cash used in investing activities in 2011 was approximately $ 2.5 million and was used primarily for the acquisition of new manufacturing equipment of approximately $ 3.7 million , partially offset by cash provided from the sale of real estate of approximately $ 1.2 million . on january 29 , 2009 , the company amended and extended its credit facility with bank of america , na . the facility is comprised of : ( i ) a revolving credit facility of $ 17 million ; ( ii ) a term loan of $ 2.1 million with a seven-year straight-line amortization ; ( iii ) a term loan of $ 1.8
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Suspicious Activity Report : 14 results of operations the following table sets forth , for the years indicated , the percentage of revenues represented by the items as shown in the company 's consolidated statements of operations : replace_table_token_5_th 2011 compared to 2010 net sales increased 5.4 % to $ 127.2 million for the year ended december 31 , 2011 , from net sales of $ 120.8 million in the same period of 2010. the $ 6.4 million increase in sales was largely attributable to increased sales into the aerospace and defense industries of approximately $ 3.1 million fueled by a new contract for the us marines to supply backpack components ( component products segment ) as well as demand for interior trim parts from the automotive industry of approximately $ 1.8 million ( component products segment ) . gross profit as a percentage of sales ( gross margin ) decreased slightly to 28.5 % for the year ended december 31 , 2011 , from 28.7 % in 2010. the slight decrease in gross margin is primarily attributable to costs of approximately $ 350,000 incurred as a result of the closure of the company 's manufacturing facility in alabama as well as approximately $ 300,000 incurred in additional health insurance claims ( overhead ) partially offset by manufacturing efficiencies achieved in the company 's plants ( as a percentage of sales material and direct labor collectively decreased by 0.2 % in 2011 ) . selling , general , and administrative expenses ( sg & a ) increased 5.6 % to $ 21.4 million for the year ended december 31 , 2011 , from $ 20.2 million in 2010. as a percentage of sales , sg & a was 16.8 % for both the years ended december 31 , 2011 , and 2010. the $ 1.2 million increase in sg & a for the year ended december 31 , 2011 , is primarily due to an increase in professional fees of approximately $ 400,000 associated with the development of enhanced internal operating and information systems and a re-branding and marketing project , approximately $ 400,000 in additional administrative salaries , wages and benefits and approximately $ 200,000 in additional health insurance claims . interest expense net of interest income decreased to approximately $ 27,000 for the year ended december 31 , 2011 , from net interest expense of approximately $ 116,000 in 2010. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the gain on sale of assets of approximately $ 834,000 was derived primarily from the sale of real estate in alabama by udt . of this $ 834,000 gain , approximately $ 428,000 relates to non-controlling interests that have been deducted to determine net income attributable to ufp technologies , inc. , and $ 250,000 represents a one-time fee paid to the company for managing the transaction . 15 the company recorded income tax expense as a percentage of income before income tax expense excluding net income attributable to non-controlling interests , of 31.3 % and 34.8 % for the year ended december 31 , 2011 , and 2010 , respectively . the decrease in the effective tax rate for the year ended december 31 , 2011 , is primarily attributable to the reversal in 2011 of approximately $ 385,000 in reserves previously established for uncertain tax benefits due to a favorable outcome on a concluded federal internal revenue service audit and the statute of limitations expiring on certain other federal income tax filings as well as increased deductions associated with domestic manufacturing . the non-controlling interest in udt is not subject to corporate income tax . the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets are more likely than not to be realized , and has not recorded a tax valuation allowance at december 31 , 2011. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 2010 compared to 2009 net sales increased 21.7 % to $ 120.8 million for the year ended december 31 , 2010 , from net sales of $ 99.2 million in the same period of 2009 , driven primarily by the 2009 acquisitions of foamade , enm , and ami ( all within the component products segment ) . without sales from these acquisitions for the portion of 2010 in which they were not owned in 2009 , sales would have increased 10.0 % to $ 109.1 million . the increase in sales excluding these acquisitions was largely due to increased demand for interior trim parts from the automotive industry of approximately $ 6.6 million ( component products segment ) , as well as an increase in sales in the packaging segment of approximately $ 2.3 million , due largely to the impact of the improved economy on demand for our customers ' parts . gross profit as a percentage of sales ( gross margin ) increased to 28.7 % for the year ended december 31 , 2010 , from 26.9 % in 2009. the increase in gross margin is primarily attributable to the company 's ability to leverage sales growth against the fixed component of cost of sales ( overhead ) , partially offset by lower-than-average margins from the increased salesof automotive trim parts ( component products segment ) . story_separator_special_tag overhead as a percentage of sales decreased by 2.2 % while material and direct labor collectively increased by 0.4 % . selling , general , and administrative expenses ( sg & a ) increased 9.2 % to $ 20.2 million for the year ended december 31 , 2010 , from $ 18.5 million in 2009. as a percentage of sales , sg & a was 16.8 % and 18.7 % , respectively , for the years ended december 31 , 2010 , and 2009. the increase in sg & a for the year ended december 31 , 2010 , is primarily due to increased sg & a associated with newly acquired companies of approximately $ 1.2 million ( component products segment ) and increased variable-based compensation of approximately $ 500,000 ( primarily component products segment ) . the decrease in sg & a as a percentage of sales is primarily a result of the fixed-cost components of sg & a being measured against higher sales . interest expense net of interest income decreased to approximately $ 116,000 for the year ended december 31 , 2010 , from interest expense of approximately $ 233,000 in 2009. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the company recorded income tax expense as a percentage of pre-tax income of 34.8 % and 32.0 % for the year ended december 31 , 2010 and 2009 , respectively . the increase in effective tax rate for 2010 is primarily due to the non-taxable gains recorded on the acquisitions of foamade , enm , and ami in 2009. the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets will be realized , and has not recorded a tax valuation allowance at december 31 , 2010. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 16 story_separator_special_tag style= `` font-size:10.0pt ; `` > the company recognizes revenue at the time of shipment when title and risk of loss have passed to the customer , persuasive evidence of an arrangement exists , performance of its obligation is complete , its price to the buyer is fixed or determinable , and the company is reasonably assured of collection . if a loss is anticipated on any contract , a provision for the entire loss is made immediately . determination of these criteria , in some cases , requires management 's judgment . should changes in conditions cause management to determine that these criteria are not met for certain future transactions , revenue for any reporting period could be adversely affected . intangible assets intangible assets include patents and other intangible assets . intangible assets with an indefinite life are not amortized . intangible assets with a definite life are amortized on a straight-line basis , with estimated useful lives ranging from eight to 14 years . indefinite-lived intangible assets are tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . goodwill goodwill is tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . impairment testing for goodwill is done at a reporting unit level . reporting units are one level below the business segment level , but can be combined when reporting units within the same segment have similar economic characteristics . the company 's reporting units include its component products segment , packaging segment ( excluding its molded fiber operation ) , and its molded fiber operation . an impairment loss generally would be recognized when the carrying amount of the reporting unit 's net assets exceeds the estimated fair value of the reporting 18 unit . the company assessed qualitative factors as of december 31 , 2011 , and determined that it was more likely than not that the fair value of both reporting units exceeded their respective carrying amounts . factors considered for each reporting unit included financial performance , forecasts and trends , market cap , regulatory and environmental issues , foreign currency , market analysis , recent transactions , macro-economic conditions , industry and market considerations , raw material costs , management stability , and the degree by which the fair value of each reporting unit exceeded its carrying value in 2010 ( approximately $ 37 million or 161 % and $ 7 million or 190 % for the component products and molded fiber reporting units , respectively ) . as a result , no goodwill impairment test was performed in 2011. based upon tests performed in 2010 and 2009 , there was no goodwill impairment as of december 31 , 2010 , and 2009. accounts receivable the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments . these allowances for doubtful accounts are determined by reviewing specific accounts the company has deemed are at risk of being uncollectible and other credit risks associated with groups of customers . if the financial condition of the company 's customers were to deteriorate or economic conditions were to deteriorate , resulting in an impairment of their
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1,090 | further , any forward-looking statements speak only as of the date on which it is made , and we undertake no obligation to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise , unless required by law . new factors emerge from time to time , and it is not possible for us to predict which factors will arise . in addition , we can not assess the impact of each factor on our business or the extent to which any factor , or combination of factors , may cause actual results to differ materially from those contained in any forward-looking statements . overview we are a clinical-stage vaccine company focused on the discovery , development and commercialization of recombinant nanoparticle vaccines and adjuvants . using innovative proprietary recombinant nanoparticle vaccine technology , we produce vaccine candidates to efficiently and effectively respond to both known and newly emerging diseases . our vaccine candidates are genetically engineered three-dimensional nanostructures that incorporate immunologically important proteins . our product pipeline targets a variety of infectious diseases with vaccine candidates currently in clinical development for respiratory syncytial virus ( “ rsv ” ) , seasonal influenza , pandemic influenza and the ebola virus ( “ ebov ” ) . we have additional pre-clinical stage programs in a variety of infectious diseases , including middle east respiratory syndrome ( “ mers ” ) . further , cpl biologics private limited ( “ cplb ” ) , our joint venture company with cadila pharmaceuticals limited ( “ cadila ” ) in india , is actively developing a number of vaccine candidates that were genetically engineered by novavax , including its seasonal vlp influenza vaccine candidate that completed enrollment of a phase 3 clinical trial in india in 2014 , and its rabies vaccine that completed its phase 1/2 clinical trial in india in 2014. cplb is owned 20 % by us and 80 % by cadila . cplb operates a manufacturing facility in india for the production of vaccines 38 we are also developing proprietary technology for the production of immune stimulating saponin-based adjuvants , through our swedish wholly-owned subsidiary , novavax ab . our matrix adjuvant technology utilizes selected quillaja fractions , which form separate matrix structures , to develop modern , multi-purpose immune-modulating adjuvant products for a broad range of potential vaccine applications . our lead adjuvant for human applications , matrix-m , has been successfully tested in a phase 1/2 clinical trial for our pandemic influenza h7n9 vaccine candidate , conducted under our contract with hhs barda , and we are currently testing matrix-m in conjunction with our ebov vaccine candidate in a phase 1 clinical trial . genocea biosciences , inc. ( “ genocea ” ) has licensed rights to our matrix technology and is conducting clinical trials with its herpes simplex 2 vaccine candidate using matrix-m. clinical product pipeline a current summary of our significant research and development programs and status of related products in development follows : replace_table_token_6_th respiratory syncytial virus ( rsv ) rsv is a major respiratory pathogen with a significant burden of disease in the very young and in the elderly . in healthy adults , rsv infections are generally mild to moderate in severity , but are typically more severe in infants and young children , as well as adults over the age of 60 . 10 globally , rsv is a common cause of childhood respiratory infection , with a disease burden of 64 million cases and approximately 160,000 deaths annually . 11 severe rsv disease results in 3.4 million hospital admissions per year globally 12 and disproportionately affects infants below six months of age . in infants , toddlers and young pre-school and school-age children , rsv infections result in the need for frequent medical care , including emergency room and office visits and are associated with increased recurrent wheezing that can persist for years . in the u.s. , nearly all children become infected with rsv before they are two years of age , and it has been associated with 20 % of hospitalizations and 15 % of office visits for acute respiratory infection in young children 13 . it is also estimated that between 11,000 and 17,000 elderly and high risk adults die of rsv infection or its complications annually in the u.s. , and up to 180,000 are hospitalized for serious respiratory symptoms . 14 currently , there is no approved rsv vaccine available for any of these populations , so an rsv vaccine has the potential to protect millions of persons from this far-reaching unmet medical need . 10 dawson-caswell , d , et al . , ( 2011 ) am fam physician . 83:143 - 146 11 nair , h. , et al . , ( 2010 ) lancet . 375:1545 - 1555 12 who , ( 2014 ) “ rsv vaccine status ; ” www.who.int/immunization/research/meetings_workshops/who_pdvac_rsv.pdf 39 we are developing our respiratory syncytial virus fusion ( f ) protein nanoparticle vaccine candidate ( “ rsv f vaccine ” ) for the benefit of three susceptible target populations : the elderly , infants ( receiving protection through antibodies transferred from their mothers who would be immunized during the last trimester of pregnancy ) and pediatrics . rsv elderly program in october 2014 , we initiated enrollment in a phase 2 dose-confirmation clinical trial of our rsv f vaccine in 1,600 elderly adults ( > 60 years of age ) . recruitment was completed in november , and the preliminary data from this trial are expected in the third quarter of 2015. we believe these data will inform the next steps in the development of our rsv elderly program . data from our earlier phase 1 clinical trial in the elderly , initiated in october 2012 , corroborates our previous clinical experiences with our rsv f vaccine candidate . story_separator_special_tag five strains of ebov have been identified , the most recent of which , the 2014 guinea-based ebov strain , is associated with a case fatality rate of 50 % to 90 % . there are currently no licensed treatments proven to neutralize the virus , but a range of blood , immunological and drug therapies are under development . despite the development of such therapies , current vaccine approaches target either a previous strain of the virus or were initially developed to be delivered by genetic vectors . our ebov glycoprotein ( “ gp ” ) vaccine candidate , which was modeled using the 2014 guinea-based ebov strain , has been successfully tested in rodent , rabbit , and non-human primate pre-clinical models . we have also tested the vaccine with our matrix-m adjuvant , which appears to significantly contribute to enhanced immunogenicity and dose-sparing . we initiated large-scale gmp production of our ebov gp vaccine candidate in the fourth quarter of 2014. in february 2015 , we announced the initiation of enrollment in a phase 1 clinical trial of our ebov gp vaccine candidate in 150 healthy adults to evaluate the safety and immunogenicity of this vaccine candidate in ascending doses , with and without our matrix-m adjuvant . we expect preliminary data from this trial to be available in mid-2015 . in addition , we announced successful preliminary data from a non-human primate challenge study of our ebov gp vaccine candidate in which the challenge was lethal for the control animal , whereas 100 % of the immunized animals were protected . plans to demonstrate the safety and efficacy in a large-scale global clinical trial will be developed based on the results of our phase 1 clinical trial and in collaboration with global regulatory authorities and world health agencies . combination respiratory ( influenza and rsv ) given the ongoing development of our quadrivalent seasonal influenza vlp vaccine candidate and our rsv f vaccine candidate , we see an important opportunity to develop a combination respiratory vaccine candidate . this opportunity presents itself most evidently in the elderly , although we have not ruled out developing a combination respiratory vaccine for the non-elderly . early pre-clinical development efforts have given us confidence that such a combination vaccine is viable and in animal models , provides acceptable immunogenicity . we intend to explore this development opportunity by conducting a phase 1 clinical trial in such a combination vaccine in 2015. cplb programs ( india ) seasonal influenza cplb completed enrollment of its on-going phase 3 clinical trial of its seasonal vlp influenza vaccine candidate in the second half of 2014. assuming positive safety and immunogenicity data from this phase 3 clinical trial , cplb plans to file for regulatory market authorization , the indian equivalent of a bla , for its seasonal vlp vaccine candidate . rabies cplb is developing a rabies g protein vaccine candidate that we genetically engineered and completed enrollment of an ongoing phase 1/2 clinical trial in india in 2014. the objective is to develop a recombinant vaccine that can be administered both as a pre-exposure prophylaxis for residents of certain higher-risk geographies and travelers to such locations , and as a post-exposure prophylaxis using fewer doses than the current standard of care . in october 2014 , cplb presented clinical results from stage i of the phase 1/2 clinical trial , demonstrating that all vaccine recipients , at various doses levels and schedules , showed seroprotective antibody levels at day 14 that were sustained through day 180. the vaccine candidate , which was found to be safe and well-tolerated , also induced seroprotective levels with two-dose and three-dose regimens . assuming positive clinical data from stage ii of the phase 1/2 clinical trial , cplb would plan to initiate a phase 3 clinical trial . 44 discovery programs our vaccine platform technology provides an efficient system to rapidly develop antigens to selected targets , refine manufacturing processes and optimize development across multiple vaccine candidates . we pay close attention to global reports of emerging diseases for which there do not appear to be immediate cures and where a vaccine protocol could offer potential protection . in addition to our response to the a ( h7n9 ) influenza strain ( as previously discussed ) , we have been monitoring reports concerning mers , a novel coronavirus first identified in september 2012 by an egyptian virologist . mers became an emerging threat in 2013 , with the who currently reporting more than 850 confirmed cases of infection and more than 350 deaths . the mers virus is a part of the coronavirus family that includes the severe acute respiratory syndrome coronavirus ( “ sars ” ) . because of the public health priority given to mers , within weeks of getting the virus ' sequence , we successfully produced a vaccine candidate designed to provide protection against mers . this vaccine candidate , which was made using our recombinant nanoparticle vaccine technology , is based on the major surface spike protein , which we had earlier identified as the antigen of choice in our work with a sars vaccine candidate . in april 2014 , in collaboration with the university of maryland , school of medicine , we published results that showed our investigational vaccine candidates against both mers and sars blocked infection in laboratory studies . although the development of a mers vaccine candidate currently remains a pre-clinical program , we believe that our mers vaccine candidate offers a viable option to interested global public health authorities . sales of common stock in june 2014 , we completed a public offering of 28,750,000 shares of our common stock , including 3,750,000 shares of common stock that were issued upon the exercise in full of the option to purchase additional shares granted to the underwriters , at a price of $ 4.00 per share resulting in net proceeds of approximately $ 108 million . in
| liquidity matters and capital resources our future capital requirements depend on numerous factors including , but not limited to , the commitments and progress of our research and development programs , the progress of pre-clinical and clinical testing , the time and costs involved in obtaining regulatory approvals , the costs of filing , prosecuting , defending and enforcing patent claims and other intellectual property rights and manufacturing costs . we plan to continue to have multiple vaccines and products in various stages of development , and we believe our operating expenses and capital requirements will fluctuate depending upon the timing of certain events , such as the scope , initiation , rate and progress of our pre-clinical studies and clinical trials and other research and development activities . 52 as of december 31 , 2014 , we had $ 168.1 million in cash and cash equivalents and marketable securities as compared to $ 133.1 million as of december 31 , 2013. these amounts consisted of $ 32.3 million in cash and cash equivalents and $ 135.7 million in marketable securities as of december 31 , 2014 as compared to $ 119.5 million in cash and cash equivalents and $ 13.6 million in marketable securities at december 31 , 2013. the following table summarizes cash flows for 2014 and 2013 ( in thousands ) : replace_table_token_12_th net cash used in operating activities increased to $ 67.0 million for 2014 as compared to $ 45.4 million for 2013. the increase in cash usage was primarily due to increased costs relating to our rsv f vaccine candidate , higher employee-related costs and timing of vendor payments . during 2014 and 2013 , our investing activities consisted primarily of purchases and sales , maturities and redemptions of marketable securities and capital expenditures . in 2014 , we primarily purchased marketable securities to increase our rate of return on our marketable securities relative to returns available to money market funds . capital expenditures for 2014 and 2013 were $ 7.3 million and $ 5.8 million , 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. |
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 matters and capital resources our future capital requirements depend on numerous factors including , but not limited to , the commitments and progress of our research and development programs , the progress of pre-clinical and clinical testing , the time and costs involved in obtaining regulatory approvals , the costs of filing , prosecuting , defending and enforcing patent claims and other intellectual property rights and manufacturing costs . we plan to continue to have multiple vaccines and products in various stages of development , and we believe our operating expenses and capital requirements will fluctuate depending upon the timing of certain events , such as the scope , initiation , rate and progress of our pre-clinical studies and clinical trials and other research and development activities . 52 as of december 31 , 2014 , we had $ 168.1 million in cash and cash equivalents and marketable securities as compared to $ 133.1 million as of december 31 , 2013. these amounts consisted of $ 32.3 million in cash and cash equivalents and $ 135.7 million in marketable securities as of december 31 , 2014 as compared to $ 119.5 million in cash and cash equivalents and $ 13.6 million in marketable securities at december 31 , 2013. the following table summarizes cash flows for 2014 and 2013 ( in thousands ) : replace_table_token_12_th net cash used in operating activities increased to $ 67.0 million for 2014 as compared to $ 45.4 million for 2013. the increase in cash usage was primarily due to increased costs relating to our rsv f vaccine candidate , higher employee-related costs and timing of vendor payments . during 2014 and 2013 , our investing activities consisted primarily of purchases and sales , maturities and redemptions of marketable securities and capital expenditures . in 2014 , we primarily purchased marketable securities to increase our rate of return on our marketable securities relative to returns available to money market funds . capital expenditures for 2014 and 2013 were $ 7.3 million and $ 5.8 million , respectively .
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Suspicious Activity Report : further , any forward-looking statements speak only as of the date on which it is made , and we undertake no obligation to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise , unless required by law . new factors emerge from time to time , and it is not possible for us to predict which factors will arise . in addition , we can not assess the impact of each factor on our business or the extent to which any factor , or combination of factors , may cause actual results to differ materially from those contained in any forward-looking statements . overview we are a clinical-stage vaccine company focused on the discovery , development and commercialization of recombinant nanoparticle vaccines and adjuvants . using innovative proprietary recombinant nanoparticle vaccine technology , we produce vaccine candidates to efficiently and effectively respond to both known and newly emerging diseases . our vaccine candidates are genetically engineered three-dimensional nanostructures that incorporate immunologically important proteins . our product pipeline targets a variety of infectious diseases with vaccine candidates currently in clinical development for respiratory syncytial virus ( “ rsv ” ) , seasonal influenza , pandemic influenza and the ebola virus ( “ ebov ” ) . we have additional pre-clinical stage programs in a variety of infectious diseases , including middle east respiratory syndrome ( “ mers ” ) . further , cpl biologics private limited ( “ cplb ” ) , our joint venture company with cadila pharmaceuticals limited ( “ cadila ” ) in india , is actively developing a number of vaccine candidates that were genetically engineered by novavax , including its seasonal vlp influenza vaccine candidate that completed enrollment of a phase 3 clinical trial in india in 2014 , and its rabies vaccine that completed its phase 1/2 clinical trial in india in 2014. cplb is owned 20 % by us and 80 % by cadila . cplb operates a manufacturing facility in india for the production of vaccines 38 we are also developing proprietary technology for the production of immune stimulating saponin-based adjuvants , through our swedish wholly-owned subsidiary , novavax ab . our matrix adjuvant technology utilizes selected quillaja fractions , which form separate matrix structures , to develop modern , multi-purpose immune-modulating adjuvant products for a broad range of potential vaccine applications . our lead adjuvant for human applications , matrix-m , has been successfully tested in a phase 1/2 clinical trial for our pandemic influenza h7n9 vaccine candidate , conducted under our contract with hhs barda , and we are currently testing matrix-m in conjunction with our ebov vaccine candidate in a phase 1 clinical trial . genocea biosciences , inc. ( “ genocea ” ) has licensed rights to our matrix technology and is conducting clinical trials with its herpes simplex 2 vaccine candidate using matrix-m. clinical product pipeline a current summary of our significant research and development programs and status of related products in development follows : replace_table_token_6_th respiratory syncytial virus ( rsv ) rsv is a major respiratory pathogen with a significant burden of disease in the very young and in the elderly . in healthy adults , rsv infections are generally mild to moderate in severity , but are typically more severe in infants and young children , as well as adults over the age of 60 . 10 globally , rsv is a common cause of childhood respiratory infection , with a disease burden of 64 million cases and approximately 160,000 deaths annually . 11 severe rsv disease results in 3.4 million hospital admissions per year globally 12 and disproportionately affects infants below six months of age . in infants , toddlers and young pre-school and school-age children , rsv infections result in the need for frequent medical care , including emergency room and office visits and are associated with increased recurrent wheezing that can persist for years . in the u.s. , nearly all children become infected with rsv before they are two years of age , and it has been associated with 20 % of hospitalizations and 15 % of office visits for acute respiratory infection in young children 13 . it is also estimated that between 11,000 and 17,000 elderly and high risk adults die of rsv infection or its complications annually in the u.s. , and up to 180,000 are hospitalized for serious respiratory symptoms . 14 currently , there is no approved rsv vaccine available for any of these populations , so an rsv vaccine has the potential to protect millions of persons from this far-reaching unmet medical need . 10 dawson-caswell , d , et al . , ( 2011 ) am fam physician . 83:143 - 146 11 nair , h. , et al . , ( 2010 ) lancet . 375:1545 - 1555 12 who , ( 2014 ) “ rsv vaccine status ; ” www.who.int/immunization/research/meetings_workshops/who_pdvac_rsv.pdf 39 we are developing our respiratory syncytial virus fusion ( f ) protein nanoparticle vaccine candidate ( “ rsv f vaccine ” ) for the benefit of three susceptible target populations : the elderly , infants ( receiving protection through antibodies transferred from their mothers who would be immunized during the last trimester of pregnancy ) and pediatrics . rsv elderly program in october 2014 , we initiated enrollment in a phase 2 dose-confirmation clinical trial of our rsv f vaccine in 1,600 elderly adults ( > 60 years of age ) . recruitment was completed in november , and the preliminary data from this trial are expected in the third quarter of 2015. we believe these data will inform the next steps in the development of our rsv elderly program . data from our earlier phase 1 clinical trial in the elderly , initiated in october 2012 , corroborates our previous clinical experiences with our rsv f vaccine candidate . story_separator_special_tag five strains of ebov have been identified , the most recent of which , the 2014 guinea-based ebov strain , is associated with a case fatality rate of 50 % to 90 % . there are currently no licensed treatments proven to neutralize the virus , but a range of blood , immunological and drug therapies are under development . despite the development of such therapies , current vaccine approaches target either a previous strain of the virus or were initially developed to be delivered by genetic vectors . our ebov glycoprotein ( “ gp ” ) vaccine candidate , which was modeled using the 2014 guinea-based ebov strain , has been successfully tested in rodent , rabbit , and non-human primate pre-clinical models . we have also tested the vaccine with our matrix-m adjuvant , which appears to significantly contribute to enhanced immunogenicity and dose-sparing . we initiated large-scale gmp production of our ebov gp vaccine candidate in the fourth quarter of 2014. in february 2015 , we announced the initiation of enrollment in a phase 1 clinical trial of our ebov gp vaccine candidate in 150 healthy adults to evaluate the safety and immunogenicity of this vaccine candidate in ascending doses , with and without our matrix-m adjuvant . we expect preliminary data from this trial to be available in mid-2015 . in addition , we announced successful preliminary data from a non-human primate challenge study of our ebov gp vaccine candidate in which the challenge was lethal for the control animal , whereas 100 % of the immunized animals were protected . plans to demonstrate the safety and efficacy in a large-scale global clinical trial will be developed based on the results of our phase 1 clinical trial and in collaboration with global regulatory authorities and world health agencies . combination respiratory ( influenza and rsv ) given the ongoing development of our quadrivalent seasonal influenza vlp vaccine candidate and our rsv f vaccine candidate , we see an important opportunity to develop a combination respiratory vaccine candidate . this opportunity presents itself most evidently in the elderly , although we have not ruled out developing a combination respiratory vaccine for the non-elderly . early pre-clinical development efforts have given us confidence that such a combination vaccine is viable and in animal models , provides acceptable immunogenicity . we intend to explore this development opportunity by conducting a phase 1 clinical trial in such a combination vaccine in 2015. cplb programs ( india ) seasonal influenza cplb completed enrollment of its on-going phase 3 clinical trial of its seasonal vlp influenza vaccine candidate in the second half of 2014. assuming positive safety and immunogenicity data from this phase 3 clinical trial , cplb plans to file for regulatory market authorization , the indian equivalent of a bla , for its seasonal vlp vaccine candidate . rabies cplb is developing a rabies g protein vaccine candidate that we genetically engineered and completed enrollment of an ongoing phase 1/2 clinical trial in india in 2014. the objective is to develop a recombinant vaccine that can be administered both as a pre-exposure prophylaxis for residents of certain higher-risk geographies and travelers to such locations , and as a post-exposure prophylaxis using fewer doses than the current standard of care . in october 2014 , cplb presented clinical results from stage i of the phase 1/2 clinical trial , demonstrating that all vaccine recipients , at various doses levels and schedules , showed seroprotective antibody levels at day 14 that were sustained through day 180. the vaccine candidate , which was found to be safe and well-tolerated , also induced seroprotective levels with two-dose and three-dose regimens . assuming positive clinical data from stage ii of the phase 1/2 clinical trial , cplb would plan to initiate a phase 3 clinical trial . 44 discovery programs our vaccine platform technology provides an efficient system to rapidly develop antigens to selected targets , refine manufacturing processes and optimize development across multiple vaccine candidates . we pay close attention to global reports of emerging diseases for which there do not appear to be immediate cures and where a vaccine protocol could offer potential protection . in addition to our response to the a ( h7n9 ) influenza strain ( as previously discussed ) , we have been monitoring reports concerning mers , a novel coronavirus first identified in september 2012 by an egyptian virologist . mers became an emerging threat in 2013 , with the who currently reporting more than 850 confirmed cases of infection and more than 350 deaths . the mers virus is a part of the coronavirus family that includes the severe acute respiratory syndrome coronavirus ( “ sars ” ) . because of the public health priority given to mers , within weeks of getting the virus ' sequence , we successfully produced a vaccine candidate designed to provide protection against mers . this vaccine candidate , which was made using our recombinant nanoparticle vaccine technology , is based on the major surface spike protein , which we had earlier identified as the antigen of choice in our work with a sars vaccine candidate . in april 2014 , in collaboration with the university of maryland , school of medicine , we published results that showed our investigational vaccine candidates against both mers and sars blocked infection in laboratory studies . although the development of a mers vaccine candidate currently remains a pre-clinical program , we believe that our mers vaccine candidate offers a viable option to interested global public health authorities . sales of common stock in june 2014 , we completed a public offering of 28,750,000 shares of our common stock , including 3,750,000 shares of common stock that were issued upon the exercise in full of the option to purchase additional shares granted to the underwriters , at a price of $ 4.00 per share resulting in net proceeds of approximately $ 108 million . in
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1,091 | reinvested $ 514.7 million in trtx 2018-fl2 involving fourteen loans or participation interests therein . closed a $ 750 million secured revolving repurchase agreement with barclays bank plc . raised net proceeds of $ 136.5 million , after underwriting discounts and reimbursement by the manager of $ 0.3 million of offering costs , through the issuance of 6.9 million shares in an underwritten offering at a net price to us of $ 19.80 per share . raised $ 37.5 million of net proceeds through the company 's at-the-market program at an average price per share of $ 20.42 before commissions . liquidity : available liquidity at december 31 , 2019 of $ 465.4 million was comprised of : cash-on-hand of $ 79.2 million , of which $ 22.3 million was available for investment . $ 0.1 million of cash in trtx 2018-fl2 available for investment dependent upon our ability to contribute eligible collateral . $ 1.3 million of cash in trtx 2019-fl3 available for investment dependent upon our ability to contribute eligible collateral . undrawn capacity ( liquidity available to us without the need to pledge additional collateral to our lenders ) of $ 279.1 million under secured revolving repurchase agreements and senior secured and secured credit agreements with nine lenders . cre debt securities with a face value of $ 786.3 million that , if sold at par , could generate $ 105.7 million of cash available for reinvestment in loans , net of financing of $ 680.6 million . financing capacity at december 31 , 2019 was comprised of : $ 4.0 billion of loan financing capacity under secured revolving repurchase agreements and senior secured and secured credit agreements provided by nine lenders . our ability to draw on this capacity is dependent upon our lenders ' willingness to accept as collateral loan investments we pledge to them to secure additional borrowings . these financing arrangements have credit spreads based upon the ltv and other risk characteristics of collateral pledged , and provide stable financing with mark-to-market provisions generally limited to collateral-specific events and , in only one instance , to market-specific events . as of december 31 , 2019 , these financing arrangements had a weighted average credit spread of 1.72 % and a weighted average term to extended maturity ( assuming we have exercised all extension options and term-out provisions ) of 2.9 years . these financing arrangements are generally 25 % recourse to holdco . capacity available for cre debt securities investments under four secured revolving repurchase agreements is based upon the haircut and other risk characteristics at the time the collateral is pledged . as of december 31 , 2019 , the total available financing capacity under these repurchase agreements was $ 692.8 million . the weighted average term to extended maturity ( assuming we have exercised all extension options and term-out provisions and have obtained the consent of our lenders ) of our outstanding borrowings is less than one month . these agreements are 100 % recourse to holdco . 60 key financial measures and indicators as a commercial real estate finance company , we believe the key financial measures and indicators for our business are earnings per share , dividends declared per share , core earnings , and book value per share . for the three months ended december 31 , 2019 , we recorded earnings per share of $ 0.44 , declared a dividend of $ 0.43 per share , and reported $ 0.45 per share of core earnings . for the year ended december 31 , 2019 , we recorded earnings per share of $ 1.73 , declared dividends of $ 1.72 per share , and reported core earnings per share of $ 1.76. in addition , our book value per common share as of december 31 , 2019 was $ 19.78. as further described below , core earnings is a measure that is not prepared in accordance with gaap . we use core earnings to evaluate our performance excluding the effects of certain transactions and gaap adjustments that we believe are not necessarily indicative of our current loan activity and operations . earnings per common share and dividends declared per common share the following table sets forth the calculation of basic and diluted net income per share and dividends declared per share ( in thousands , except share and per share data ) : replace_table_token_7_th ( 1 ) represents net income attributable to holders of our common stock and class a common stock after deducting preferred stock dividends . ( 2 ) weighted average number of common shares outstanding , earnings per common share and dividends declared per common share includes common stock and class a common stock . core earnings we use core earnings to evaluate our performance excluding the effects of certain transactions and gaap adjustments we believe are not necessarily indicative of our current loan activity and operations . core earnings is a non-gaap measure , which we define as gaap net income ( loss ) attributable to our stockholders , including realized gains and losses not otherwise included in gaap net income ( loss ) , and excluding ( i ) non-cash equity compensation expense , ( ii ) depreciation and amortization , ( iii ) unrealized gains ( losses ) , and ( iv ) certain non-cash items . core earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in gaap and certain other non-cash charges as determined by our manager , subject to approval by a majority of our independent directors . the exclusion of depreciation and amortization from the calculation of core earnings only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments . we believe that core earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with gaap . story_separator_special_tag the maximum and average month end balances for our secured revolving repurchase agreements during the year ended december 31 , 2019 are as follows ( dollars in thousands ) : replace_table_token_17_th ( 1 ) the maximum month end balance subtotal and total represents the maximum outstanding borrowings on all secured revolving repurchase agreement at a month end during the year ended december 31 , 2019. we use secured revolving repurchase agreements to finance certain of our originations or acquisitions of our target assets , which may be accepted by a respective secured revolving repurchase agreement lender as collateral . once we identify an asset and the asset is approved by the secured revolving repurchase agreement lender to serve as collateral ( which lender 's approval is in its sole discretion ) , we and the lender may enter into a transaction whereby the lender advances to us a percentage of the value of the asset , which is referred to as the “ advance rate , ” as the purchase price for such transaction with an obligation of ours to repurchase the asset from the lender for an amount equal to the purchase price for the transaction plus a price differential , which is calculated based on an interest rate . for each transaction , we and the lender agree to a trade confirmation which sets forth , among other things , the purchase price , the maximum advance rate , the interest rate , the market value of the loan asset and any future funding obligations which are contemplated with respect to the specific transaction and or the underlying loan asset . for loan assets which involve future funding obligations of ours , the repurchase transaction may provide for the repurchase lender to fund portions ( for example , pro rata per the maximum advance rate of the related repurchase transaction ) of such future funding obligations . generally , our secured revolving repurchase agreements allow for revolving balances , which allow us to voluntarily repay balances and draw again on existing available credit . the primary obligor on each secured revolving repurchase agreement is a separate special purpose subsidiary of ours which is restricted from conducting activity other than activity related to the utilization of its secured revolving repurchase agreement . as additional credit support , our holding company subsidiary , holdco , provides certain guarantees of the obligations of its subsidiaries . the liability of holdco under the guarantees related to our secured revolving repurchase agreements secured by cre debt securities is in an amount equal to 100 % of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the related agreement . the liability of holdco under the guarantees related to our secured revolving repurchase agreements secured by loans is generally capped at 25 % of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the related agreement . however , such liability cap under the guarantees related to our secured revolving repurchase agreements secured by loans does not apply in the event of certain “ bad boy ” defaults which can trigger recourse to holdco for losses or the entire outstanding obligations of the borrower depending on the nature of the “ bad boy ” default in question . examples of such “ bad boy ” defaults include , without limitation , fraud , intentional misrepresentation , willful misconduct , incurrence of additional debt in violation of financing documents , and the filing of a voluntary or collusive involuntary bankruptcy or insolvency proceeding of the special purpose entity subsidiary or the guarantor entity . 67 each of the secured revolving repurchase agreements have “ margin maintenance ” provisions , which are designed to allow the repurchase lender to maintain a certain margin of credit enhancement against the loan assets which serve as collateral . the lender 's margin amount is typically based on a percentage of the market value of the loan asset and or mortgaged property collateral ; however , certain secured revolving repurchase agreements may also involve margin maintenance based on maintenance of a minimum debt yield with respect to the cash flow from the underlying real estate collateral . market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to any specified parameters regarding the repurchase lender 's determination , which may involve the limitation or enumeration of factors which the repurchase lender may consider when determining market value . at december 31 , 2019 , the weighted average haircut ( which is equal to one minus the advance rate percentage against collateral for our secured revolving repurchase agreements taken as a whole ) was 19.4 % , as compared to 23.0 % at december 31 , 2018. the haircut for our secured revolving purchase agreements is dependent on the collateral used ( loans or cre debt securities ) for the secured revolving repurchase agreements . at december 31 , 2019 and december 31 , 2018 , the following table presents the weighted average haircut on our secured revolving purchase agreements by collateral type : replace_table_token_18_th generally , when the repurchase lender 's margin amount has fallen below the outstanding purchase price for a transaction , a margin deficit exists and the repurchase lender may require that we prepay outstanding amounts on the secured revolving repurchase agreement to eliminate such margin deficit . in certain secured revolving repurchase agreement , the repurchase lender 's ability to make a margin call is further limited by certain prerequisites , such as the existence of enumerated “ credit events ” or that the margin deficit exceed a specified minimum threshold . the secured revolving repurchase agreements also include cash management features which generally require that income from collateral loan assets be deposited in a lender-controlled account and be disbursed in accordance with a specified waterfall of payments designed to keep facility-related obligations current before such income is disbursed
| sources of liquidity our primary sources of liquidity include cash and cash equivalents , available borrowings under secured revolving repurchase agreements and senior secured and secured credit agreements and clo liquidity available for reinvestment , which are set forth in the following table ( dollars in thousands ) : replace_table_token_29_th ( 1 ) subject to collateral eligibility requirements . our existing loan portfolio provides us with liquidity as loans are repaid or sold , in whole or in part , of which some proceeds may be included in accounts receivable from our servicers until released , and the proceeds from such repayments become available for us to reinvest . additional liquidity can be generated by the future sale of non-consolidated interests and the sale of some or all of our cre debt securities investments . liquidity needs in addition to our ongoing mortgage loan origination activity , our primary liquidity needs include interest and principal payments under our $ 4.4 billion of outstanding borrowings under secured revolving repurchase agreements , collateralized loan obligations , senior secured and secured credit agreements , and asset-specific financings , $ 630.6 million of unfunded loan commitments , dividend distributions to our stockholders , and operating expenses . contractual obligations and commitments our contractual obligations and commitments as of december 31 , 2019 were as follows ( dollars in thousands ) : replace_table_token_30_th ( 1 ) the allocation of our loan commitments is based on the earlier of the commitment expiration date and the loan maturity date . ( 2 ) the allocation of our secured debt agreements is based on the current maturity date of each individual borrowing under the respective agreement . amounts include the related future interest payment obligations , which are estimated by assuming the amounts outstanding under our secured debt agreements and the interest rates in effect as of december 31 , 2019 will remain constant into the future . this is only an estimate , as actual amounts borrowed and rates will vary over time . our floating rate loans and related liabilities are indexed to libor .
| 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. |
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.
```sources of liquidity our primary sources of liquidity include cash and cash equivalents , available borrowings under secured revolving repurchase agreements and senior secured and secured credit agreements and clo liquidity available for reinvestment , which are set forth in the following table ( dollars in thousands ) : replace_table_token_29_th ( 1 ) subject to collateral eligibility requirements . our existing loan portfolio provides us with liquidity as loans are repaid or sold , in whole or in part , of which some proceeds may be included in accounts receivable from our servicers until released , and the proceeds from such repayments become available for us to reinvest . additional liquidity can be generated by the future sale of non-consolidated interests and the sale of some or all of our cre debt securities investments . liquidity needs in addition to our ongoing mortgage loan origination activity , our primary liquidity needs include interest and principal payments under our $ 4.4 billion of outstanding borrowings under secured revolving repurchase agreements , collateralized loan obligations , senior secured and secured credit agreements , and asset-specific financings , $ 630.6 million of unfunded loan commitments , dividend distributions to our stockholders , and operating expenses . contractual obligations and commitments our contractual obligations and commitments as of december 31 , 2019 were as follows ( dollars in thousands ) : replace_table_token_30_th ( 1 ) the allocation of our loan commitments is based on the earlier of the commitment expiration date and the loan maturity date . ( 2 ) the allocation of our secured debt agreements is based on the current maturity date of each individual borrowing under the respective agreement . amounts include the related future interest payment obligations , which are estimated by assuming the amounts outstanding under our secured debt agreements and the interest rates in effect as of december 31 , 2019 will remain constant into the future . this is only an estimate , as actual amounts borrowed and rates will vary over time . our floating rate loans and related liabilities are indexed to libor .
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Suspicious Activity Report : reinvested $ 514.7 million in trtx 2018-fl2 involving fourteen loans or participation interests therein . closed a $ 750 million secured revolving repurchase agreement with barclays bank plc . raised net proceeds of $ 136.5 million , after underwriting discounts and reimbursement by the manager of $ 0.3 million of offering costs , through the issuance of 6.9 million shares in an underwritten offering at a net price to us of $ 19.80 per share . raised $ 37.5 million of net proceeds through the company 's at-the-market program at an average price per share of $ 20.42 before commissions . liquidity : available liquidity at december 31 , 2019 of $ 465.4 million was comprised of : cash-on-hand of $ 79.2 million , of which $ 22.3 million was available for investment . $ 0.1 million of cash in trtx 2018-fl2 available for investment dependent upon our ability to contribute eligible collateral . $ 1.3 million of cash in trtx 2019-fl3 available for investment dependent upon our ability to contribute eligible collateral . undrawn capacity ( liquidity available to us without the need to pledge additional collateral to our lenders ) of $ 279.1 million under secured revolving repurchase agreements and senior secured and secured credit agreements with nine lenders . cre debt securities with a face value of $ 786.3 million that , if sold at par , could generate $ 105.7 million of cash available for reinvestment in loans , net of financing of $ 680.6 million . financing capacity at december 31 , 2019 was comprised of : $ 4.0 billion of loan financing capacity under secured revolving repurchase agreements and senior secured and secured credit agreements provided by nine lenders . our ability to draw on this capacity is dependent upon our lenders ' willingness to accept as collateral loan investments we pledge to them to secure additional borrowings . these financing arrangements have credit spreads based upon the ltv and other risk characteristics of collateral pledged , and provide stable financing with mark-to-market provisions generally limited to collateral-specific events and , in only one instance , to market-specific events . as of december 31 , 2019 , these financing arrangements had a weighted average credit spread of 1.72 % and a weighted average term to extended maturity ( assuming we have exercised all extension options and term-out provisions ) of 2.9 years . these financing arrangements are generally 25 % recourse to holdco . capacity available for cre debt securities investments under four secured revolving repurchase agreements is based upon the haircut and other risk characteristics at the time the collateral is pledged . as of december 31 , 2019 , the total available financing capacity under these repurchase agreements was $ 692.8 million . the weighted average term to extended maturity ( assuming we have exercised all extension options and term-out provisions and have obtained the consent of our lenders ) of our outstanding borrowings is less than one month . these agreements are 100 % recourse to holdco . 60 key financial measures and indicators as a commercial real estate finance company , we believe the key financial measures and indicators for our business are earnings per share , dividends declared per share , core earnings , and book value per share . for the three months ended december 31 , 2019 , we recorded earnings per share of $ 0.44 , declared a dividend of $ 0.43 per share , and reported $ 0.45 per share of core earnings . for the year ended december 31 , 2019 , we recorded earnings per share of $ 1.73 , declared dividends of $ 1.72 per share , and reported core earnings per share of $ 1.76. in addition , our book value per common share as of december 31 , 2019 was $ 19.78. as further described below , core earnings is a measure that is not prepared in accordance with gaap . we use core earnings to evaluate our performance excluding the effects of certain transactions and gaap adjustments that we believe are not necessarily indicative of our current loan activity and operations . earnings per common share and dividends declared per common share the following table sets forth the calculation of basic and diluted net income per share and dividends declared per share ( in thousands , except share and per share data ) : replace_table_token_7_th ( 1 ) represents net income attributable to holders of our common stock and class a common stock after deducting preferred stock dividends . ( 2 ) weighted average number of common shares outstanding , earnings per common share and dividends declared per common share includes common stock and class a common stock . core earnings we use core earnings to evaluate our performance excluding the effects of certain transactions and gaap adjustments we believe are not necessarily indicative of our current loan activity and operations . core earnings is a non-gaap measure , which we define as gaap net income ( loss ) attributable to our stockholders , including realized gains and losses not otherwise included in gaap net income ( loss ) , and excluding ( i ) non-cash equity compensation expense , ( ii ) depreciation and amortization , ( iii ) unrealized gains ( losses ) , and ( iv ) certain non-cash items . core earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in gaap and certain other non-cash charges as determined by our manager , subject to approval by a majority of our independent directors . the exclusion of depreciation and amortization from the calculation of core earnings only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments . we believe that core earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with gaap . story_separator_special_tag the maximum and average month end balances for our secured revolving repurchase agreements during the year ended december 31 , 2019 are as follows ( dollars in thousands ) : replace_table_token_17_th ( 1 ) the maximum month end balance subtotal and total represents the maximum outstanding borrowings on all secured revolving repurchase agreement at a month end during the year ended december 31 , 2019. we use secured revolving repurchase agreements to finance certain of our originations or acquisitions of our target assets , which may be accepted by a respective secured revolving repurchase agreement lender as collateral . once we identify an asset and the asset is approved by the secured revolving repurchase agreement lender to serve as collateral ( which lender 's approval is in its sole discretion ) , we and the lender may enter into a transaction whereby the lender advances to us a percentage of the value of the asset , which is referred to as the “ advance rate , ” as the purchase price for such transaction with an obligation of ours to repurchase the asset from the lender for an amount equal to the purchase price for the transaction plus a price differential , which is calculated based on an interest rate . for each transaction , we and the lender agree to a trade confirmation which sets forth , among other things , the purchase price , the maximum advance rate , the interest rate , the market value of the loan asset and any future funding obligations which are contemplated with respect to the specific transaction and or the underlying loan asset . for loan assets which involve future funding obligations of ours , the repurchase transaction may provide for the repurchase lender to fund portions ( for example , pro rata per the maximum advance rate of the related repurchase transaction ) of such future funding obligations . generally , our secured revolving repurchase agreements allow for revolving balances , which allow us to voluntarily repay balances and draw again on existing available credit . the primary obligor on each secured revolving repurchase agreement is a separate special purpose subsidiary of ours which is restricted from conducting activity other than activity related to the utilization of its secured revolving repurchase agreement . as additional credit support , our holding company subsidiary , holdco , provides certain guarantees of the obligations of its subsidiaries . the liability of holdco under the guarantees related to our secured revolving repurchase agreements secured by cre debt securities is in an amount equal to 100 % of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the related agreement . the liability of holdco under the guarantees related to our secured revolving repurchase agreements secured by loans is generally capped at 25 % of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the related agreement . however , such liability cap under the guarantees related to our secured revolving repurchase agreements secured by loans does not apply in the event of certain “ bad boy ” defaults which can trigger recourse to holdco for losses or the entire outstanding obligations of the borrower depending on the nature of the “ bad boy ” default in question . examples of such “ bad boy ” defaults include , without limitation , fraud , intentional misrepresentation , willful misconduct , incurrence of additional debt in violation of financing documents , and the filing of a voluntary or collusive involuntary bankruptcy or insolvency proceeding of the special purpose entity subsidiary or the guarantor entity . 67 each of the secured revolving repurchase agreements have “ margin maintenance ” provisions , which are designed to allow the repurchase lender to maintain a certain margin of credit enhancement against the loan assets which serve as collateral . the lender 's margin amount is typically based on a percentage of the market value of the loan asset and or mortgaged property collateral ; however , certain secured revolving repurchase agreements may also involve margin maintenance based on maintenance of a minimum debt yield with respect to the cash flow from the underlying real estate collateral . market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to any specified parameters regarding the repurchase lender 's determination , which may involve the limitation or enumeration of factors which the repurchase lender may consider when determining market value . at december 31 , 2019 , the weighted average haircut ( which is equal to one minus the advance rate percentage against collateral for our secured revolving repurchase agreements taken as a whole ) was 19.4 % , as compared to 23.0 % at december 31 , 2018. the haircut for our secured revolving purchase agreements is dependent on the collateral used ( loans or cre debt securities ) for the secured revolving repurchase agreements . at december 31 , 2019 and december 31 , 2018 , the following table presents the weighted average haircut on our secured revolving purchase agreements by collateral type : replace_table_token_18_th generally , when the repurchase lender 's margin amount has fallen below the outstanding purchase price for a transaction , a margin deficit exists and the repurchase lender may require that we prepay outstanding amounts on the secured revolving repurchase agreement to eliminate such margin deficit . in certain secured revolving repurchase agreement , the repurchase lender 's ability to make a margin call is further limited by certain prerequisites , such as the existence of enumerated “ credit events ” or that the margin deficit exceed a specified minimum threshold . the secured revolving repurchase agreements also include cash management features which generally require that income from collateral loan assets be deposited in a lender-controlled account and be disbursed in accordance with a specified waterfall of payments designed to keep facility-related obligations current before such income is disbursed
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1,092 | elmer 's , whose brands include elmer 's ® , krazy glue ® and x-acto ® , is a provider of activity-based adhesive and cutting products that inspire creativity in the classroom , at home , in the office , in the workshop and at the craft table . the acquisition was accounted for using the purchase method of accounting , and accordingly , elmer 's results of operations were included in the company 's statement of operations since the acquisition date , including net sales of $ 36.3 million . elmer 's is reported as part of our writing segment . based on the company 's strategy to allocate resources to its businesses relative to each business ' growth potential and , in particular , those businesses with the greater right to win in the marketplace , during 2015 the company divested its rubbermaid medical cart 27 business and initiated a process to divest its levolor ® and kirsch ® window coverings brands ( “ décor ” ) . the rubbermaid medical cart business focuses on optimizing nurse work flow and medical records processing in hospitals and was included in the commercial products segment . the company sold substantially all of the assets of the rubbermaid medical cart business in august 2015. the rubbermaid medical cart business was included in the company 's consolidated results from continuing operations , including net sales of $ 26.5 million , until it was sold in august 2015. décor will continue to be reported in our results from continuing operations as part of our home solutions segment until the business is sold , which is expected in 2016. in 2015 , décor generated $ 300.8 million of net sales . the assets and liabilities of décor that are subject to divestiture are classified as current assets held for sale and current liabilities held for sale in the consolidated balance sheet as of december 31 , 2015. the endicia on-line postage and the culinary electrics and retail businesses have been classified as discontinued operations since the company committed in 2014 to sell these businesses . endicia was included in our writing segment , and the culinary businesses were included in our home solutions segment . during 2015 , the company sold endicia for a sales price of $ 208.7 million , subject to customary working capital adjustments . during 2015 , the company ceased operations in its culinary electrics and retail businesses . proposed acquisition of jarden corporation on december 13 , 2015 , the company entered into an agreement and plan of merger ( the “ merger agreement ” ) to acquire jarden corporation ( “ jarden ” ) . jarden is a leading , global consumer products company with leading brands , such as yankee candle , crock-pot , foodsaver , mr. coffee , oster , coleman , first alert , rawlings , jostens , k2 , marker , marmot , volkl , and many others . the merger is expected to create a consumer goods company with estimated annual sales of $ 16 billion to be named newell brands inc. ( “ newell brands ” ) , with a portfolio of leading brands in large , growing , unconsolidated , global markets . newell rubbermaid anticipates significant annualized cost synergies will be realized by newell brands , driven by efficiencies of scale and efficiencies in procurement , cost to serve and infrastructure . pursuant to the merger agreement , by and among newell rubbermaid , jarden , ncpf acquisition corp. i , a wholly-owned subsidiary of newell rubbermaid ( “ merger sub 1 ” ) , and ncpf acquisition corp. ii , a wholly-owned subsidiary of newell rubbermaid ( “ merger sub 2 ” ) , merger sub 1 will be merged with and into jarden , with jarden surviving as a wholly-owned subsidiary of newell rubbermaid , and immediately thereafter , jarden will be merged with and into merger sub 2 , with merger sub 2 continuing as the surviving corporation as a wholly-owned subsidiary of newell rubbermaid ( collectively , the “ proposed merger transactions ” ) . upon completion of the proposed merger transactions , jarden will become a wholly-owned subsidiary of newell rubbermaid and will no longer be a publicly held corporation . in connection with the proposed merger transactions , each share of jarden common stock will be converted into the right to receive and become exchangeable for merger consideration consisting of ( 1 ) 0.862 of a share of newell rubbermaid common stock plus ( 2 ) $ 21.00 in cash . based on the closing price of a share of newell rubbermaid common stock on february 24 , 2016 of $ 37.74 per share , the implied total consideration is approximately $ 14.0 billion , including $ 5.5 billion of cash and $ 8.5 billion of newell rubbermaid common stock . based on the estimated 225.0 million shares of newell rubbermaid common stock expected to be issued in the proposed merger transactions , stockholders of newell rubbermaid and stockholders and convertible noteholders of jarden immediately before the proposed merger transactions will own 54 % and 46 % , respectively , of newell brands upon completion of the proposed merger transactions . newell rubbermaid entered into a commitment letter for a $ 10.5 billion senior unsecured bridge credit facility , the availability of which has since been reduced to $ 9.0 billion because newell rubbermaid subsequently entered into the $ 1.5 billion term loan facility . the total available amount of the bridge credit facility is subject to further reduction in equivalent amounts upon the completion of any issuance of debt or equity securities by newell rubbermaid . story_separator_special_tag the majority of these savings have been , and the majority of future savings from project renewal initiatives are expected to be , reinvested in the business to strengthen brand building and selling capabilities in priority markets around the world . through december 31 , 2015 , the company had incurred $ 309.8 million and $ 158.7 million of restructuring and other project-related costs , respectively . the majority of the restructuring costs represent employee-related cash costs , including severance , retirement and other termination benefits and costs . other project-related costs represent organizational change implementation costs , including advisory and consultancy costs , compensation and related costs of personnel dedicated to transformation projects , and other costs associated with the implementation of project renewal . through december 31 , 2015 , the company estimates it has reduced its headcount by approximately 2,500 employees as a result of project renewal initiatives . the following table summarizes the estimated costs and savings relating to project renewal , as well as the actual results through december 31 , 2015 ( amounts in millions ) : replace_table_token_5_th * includes savings expected to be realized during 2018 from projects completed in 2017. in 2015 , the company has continued to execute existing projects as well as initiate new activities relating to project renewal as follows : initiated plans to relocate the company 's corporate headquarters from 3 glenlake parkway in atlanta , georgia , to 6655 peachtree dunwoody road in atlanta , georgia in early 2016. the new space will reflect a brand-led , innovative company with headquarters purpose-fit for how employees work today and into the future . the ongoing implementation of the emea simplification workstream , which includes projects focused on profitable growth in the region , including the closure , consolidation and or relocation of certain manufacturing facilities , distribution centers , customer support and sales and administrative offices . during 2015 , the company initiated a project focused on aligning the sales and marketing capabilities in the region , a project in the best cost finance workstream and a project focused on optimizing the region 's activities and relationships with its sourcing partners . ongoing evaluations of the company 's overhead structure , supply chain organization and processes , customer development organization alignment , and pricing structure to optimize and transform processes , simplify the organization and reduce costs . during 2015 , the company initiated a project focused on optimizing the sales and marketing overhead cost structure in north america and latin america . the continued execution of projects to streamline the three business partnering functions , human resources , finance/it and legal , and to align these functions with the new operating structure , including the ongoing execution of projects to reduce the company 's it footprint and centralize and optimize human resources support activities . the ongoing reconfiguration and consolidation of the company 's manufacturing footprint and distribution centers to reduce overhead , improve operational efficiencies and better utilize existing assets , including the initiation of projects to reduce the home solutions and tools segments ' manufacturing footprint in north america , to reduce the baby & parenting segment 's manufacturing footprint in asia pacific and to better align the writing segment 's worldwide supply chain footprint . 32 the creation of a transformation office to lead and manage the various workstreams that are integral to the expanded project renewal initiatives , including investing in value analysis and value engineering efforts to reduce product and packaging costs and reducing operational and manufacturing complexity in the writing segment . one newell rubbermaid the company strives to leverage common business activities and best practices to build functional capabilities and to build one common culture of shared values with a focus on collaboration and teamwork . through this initiative , the company has established regional shared service centers to leverage nonmarket-facing functional capabilities to reduce costs . in addition , the company has expanded its focus on leveraging common business activities and best practices by reorganizing the business around two of the critical elements of the growth game plan — brand & category development and market execution & delivery , enhancing its customer development and global supply chain organizations and consolidating activities into centers of excellence for design and innovation capabilities and marketing capabilities . the company is also migrating multiple legacy systems and users to a common sap global information platform in a phased , multi-year rollout . sap is expected to enable the company to integrate and manage its worldwide business and reporting processes more efficiently . substantially all of the company 's north american , latin american and european operations are live on sap , and the company plans to implement sap in its asia pacific operations in 2016. foreign currency - venezuela the company began accounting for its venezuelan operations using highly inflationary accounting in january 2010. under highly inflationary accounting , the company remeasures assets , liabilities , sales and expenses denominated in bolivar fuertes ( “ bolivars ” ) into u.s. dollars using the applicable exchange rate , and the resulting translation adjustments are included in earnings . the company 's venezuelan operations are primarily included in the writing segment . the company generally imports raw materials into venezuela and manufactures writing instruments locally . the company 's venezuelan operations also import components and finished goods . generally , purchases of imported products are denominated in u.s. dollars . the company has historically used various means , including price increases and productivity initiatives , to offset increased costs due to the impacts of high inflation and currency devaluations . during the years ended december 31 , 2015 , 2014 and 2013 , the company 's venezuelan operations generated 2.2 % , 1.4 % and 1.4 % of consolidated net sales , respectively and approximately $ 51 million , $ 30 million and $ 34 million of the company 's reported operating income , respectively
| cash flows cash and cash equivalents increased ( decreased ) as follows for the years ended december 31 , ( in millions ) : replace_table_token_17_th in the cash flow statement , the changes in operating assets and liabilities are presented excluding the effects of changes in foreign currency exchange rates and the effects of acquisitions , divestitures and reclassifications of assets and liabilities to held for sale . accordingly , the amounts in the cash flow statement differ from changes in the operating assets and liabilities that are presented in the balance sheets . sources historically , the company 's primary sources of liquidity and capital resources have included cash provided by operations , proceeds from divestitures , issuance of debt and use of available borrowing facilities . cash provided by operating activities for 2015 was $ 565.8 million compared to $ 634.1 million for 2014. the decrease in operating cash flow was primarily due to the impact of the following items : a $ 70.0 million voluntary contribution to the company 's primary u.s. pension plan during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows ; a $ 69.6 million year-over-year increase in cash used to build inventories in 2015 compared to 2014 , partially attributable to inventory builds in 2015 to support new product launches ; a $ 45.9 million year-over-year increase in project-related costs associated with project renewal and advisory costs for process transformation and optimization , including advisory and consulting costs and personnel costs associated with employees dedicated to project renewal initiatives ; a $ 67.0 million year-over-year decrease in cash provided by accounts payable , primarily attributable to the timing and management of purchases and payments ; 43 partially offset by : a $ 107.1 million year-over-year decrease in cash used for increases in accounts receivable due to the timing of sales in the fourth quarter of 2015 compared to the fourth quarter of 2014 ; and a $ 60.6 million increase in the company 's income tax liability during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows , primarily associated with an estimated $
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows cash and cash equivalents increased ( decreased ) as follows for the years ended december 31 , ( in millions ) : replace_table_token_17_th in the cash flow statement , the changes in operating assets and liabilities are presented excluding the effects of changes in foreign currency exchange rates and the effects of acquisitions , divestitures and reclassifications of assets and liabilities to held for sale . accordingly , the amounts in the cash flow statement differ from changes in the operating assets and liabilities that are presented in the balance sheets . sources historically , the company 's primary sources of liquidity and capital resources have included cash provided by operations , proceeds from divestitures , issuance of debt and use of available borrowing facilities . cash provided by operating activities for 2015 was $ 565.8 million compared to $ 634.1 million for 2014. the decrease in operating cash flow was primarily due to the impact of the following items : a $ 70.0 million voluntary contribution to the company 's primary u.s. pension plan during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows ; a $ 69.6 million year-over-year increase in cash used to build inventories in 2015 compared to 2014 , partially attributable to inventory builds in 2015 to support new product launches ; a $ 45.9 million year-over-year increase in project-related costs associated with project renewal and advisory costs for process transformation and optimization , including advisory and consulting costs and personnel costs associated with employees dedicated to project renewal initiatives ; a $ 67.0 million year-over-year decrease in cash provided by accounts payable , primarily attributable to the timing and management of purchases and payments ; 43 partially offset by : a $ 107.1 million year-over-year decrease in cash used for increases in accounts receivable due to the timing of sales in the fourth quarter of 2015 compared to the fourth quarter of 2014 ; and a $ 60.6 million increase in the company 's income tax liability during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows , primarily associated with an estimated $
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Suspicious Activity Report : elmer 's , whose brands include elmer 's ® , krazy glue ® and x-acto ® , is a provider of activity-based adhesive and cutting products that inspire creativity in the classroom , at home , in the office , in the workshop and at the craft table . the acquisition was accounted for using the purchase method of accounting , and accordingly , elmer 's results of operations were included in the company 's statement of operations since the acquisition date , including net sales of $ 36.3 million . elmer 's is reported as part of our writing segment . based on the company 's strategy to allocate resources to its businesses relative to each business ' growth potential and , in particular , those businesses with the greater right to win in the marketplace , during 2015 the company divested its rubbermaid medical cart 27 business and initiated a process to divest its levolor ® and kirsch ® window coverings brands ( “ décor ” ) . the rubbermaid medical cart business focuses on optimizing nurse work flow and medical records processing in hospitals and was included in the commercial products segment . the company sold substantially all of the assets of the rubbermaid medical cart business in august 2015. the rubbermaid medical cart business was included in the company 's consolidated results from continuing operations , including net sales of $ 26.5 million , until it was sold in august 2015. décor will continue to be reported in our results from continuing operations as part of our home solutions segment until the business is sold , which is expected in 2016. in 2015 , décor generated $ 300.8 million of net sales . the assets and liabilities of décor that are subject to divestiture are classified as current assets held for sale and current liabilities held for sale in the consolidated balance sheet as of december 31 , 2015. the endicia on-line postage and the culinary electrics and retail businesses have been classified as discontinued operations since the company committed in 2014 to sell these businesses . endicia was included in our writing segment , and the culinary businesses were included in our home solutions segment . during 2015 , the company sold endicia for a sales price of $ 208.7 million , subject to customary working capital adjustments . during 2015 , the company ceased operations in its culinary electrics and retail businesses . proposed acquisition of jarden corporation on december 13 , 2015 , the company entered into an agreement and plan of merger ( the “ merger agreement ” ) to acquire jarden corporation ( “ jarden ” ) . jarden is a leading , global consumer products company with leading brands , such as yankee candle , crock-pot , foodsaver , mr. coffee , oster , coleman , first alert , rawlings , jostens , k2 , marker , marmot , volkl , and many others . the merger is expected to create a consumer goods company with estimated annual sales of $ 16 billion to be named newell brands inc. ( “ newell brands ” ) , with a portfolio of leading brands in large , growing , unconsolidated , global markets . newell rubbermaid anticipates significant annualized cost synergies will be realized by newell brands , driven by efficiencies of scale and efficiencies in procurement , cost to serve and infrastructure . pursuant to the merger agreement , by and among newell rubbermaid , jarden , ncpf acquisition corp. i , a wholly-owned subsidiary of newell rubbermaid ( “ merger sub 1 ” ) , and ncpf acquisition corp. ii , a wholly-owned subsidiary of newell rubbermaid ( “ merger sub 2 ” ) , merger sub 1 will be merged with and into jarden , with jarden surviving as a wholly-owned subsidiary of newell rubbermaid , and immediately thereafter , jarden will be merged with and into merger sub 2 , with merger sub 2 continuing as the surviving corporation as a wholly-owned subsidiary of newell rubbermaid ( collectively , the “ proposed merger transactions ” ) . upon completion of the proposed merger transactions , jarden will become a wholly-owned subsidiary of newell rubbermaid and will no longer be a publicly held corporation . in connection with the proposed merger transactions , each share of jarden common stock will be converted into the right to receive and become exchangeable for merger consideration consisting of ( 1 ) 0.862 of a share of newell rubbermaid common stock plus ( 2 ) $ 21.00 in cash . based on the closing price of a share of newell rubbermaid common stock on february 24 , 2016 of $ 37.74 per share , the implied total consideration is approximately $ 14.0 billion , including $ 5.5 billion of cash and $ 8.5 billion of newell rubbermaid common stock . based on the estimated 225.0 million shares of newell rubbermaid common stock expected to be issued in the proposed merger transactions , stockholders of newell rubbermaid and stockholders and convertible noteholders of jarden immediately before the proposed merger transactions will own 54 % and 46 % , respectively , of newell brands upon completion of the proposed merger transactions . newell rubbermaid entered into a commitment letter for a $ 10.5 billion senior unsecured bridge credit facility , the availability of which has since been reduced to $ 9.0 billion because newell rubbermaid subsequently entered into the $ 1.5 billion term loan facility . the total available amount of the bridge credit facility is subject to further reduction in equivalent amounts upon the completion of any issuance of debt or equity securities by newell rubbermaid . story_separator_special_tag the majority of these savings have been , and the majority of future savings from project renewal initiatives are expected to be , reinvested in the business to strengthen brand building and selling capabilities in priority markets around the world . through december 31 , 2015 , the company had incurred $ 309.8 million and $ 158.7 million of restructuring and other project-related costs , respectively . the majority of the restructuring costs represent employee-related cash costs , including severance , retirement and other termination benefits and costs . other project-related costs represent organizational change implementation costs , including advisory and consultancy costs , compensation and related costs of personnel dedicated to transformation projects , and other costs associated with the implementation of project renewal . through december 31 , 2015 , the company estimates it has reduced its headcount by approximately 2,500 employees as a result of project renewal initiatives . the following table summarizes the estimated costs and savings relating to project renewal , as well as the actual results through december 31 , 2015 ( amounts in millions ) : replace_table_token_5_th * includes savings expected to be realized during 2018 from projects completed in 2017. in 2015 , the company has continued to execute existing projects as well as initiate new activities relating to project renewal as follows : initiated plans to relocate the company 's corporate headquarters from 3 glenlake parkway in atlanta , georgia , to 6655 peachtree dunwoody road in atlanta , georgia in early 2016. the new space will reflect a brand-led , innovative company with headquarters purpose-fit for how employees work today and into the future . the ongoing implementation of the emea simplification workstream , which includes projects focused on profitable growth in the region , including the closure , consolidation and or relocation of certain manufacturing facilities , distribution centers , customer support and sales and administrative offices . during 2015 , the company initiated a project focused on aligning the sales and marketing capabilities in the region , a project in the best cost finance workstream and a project focused on optimizing the region 's activities and relationships with its sourcing partners . ongoing evaluations of the company 's overhead structure , supply chain organization and processes , customer development organization alignment , and pricing structure to optimize and transform processes , simplify the organization and reduce costs . during 2015 , the company initiated a project focused on optimizing the sales and marketing overhead cost structure in north america and latin america . the continued execution of projects to streamline the three business partnering functions , human resources , finance/it and legal , and to align these functions with the new operating structure , including the ongoing execution of projects to reduce the company 's it footprint and centralize and optimize human resources support activities . the ongoing reconfiguration and consolidation of the company 's manufacturing footprint and distribution centers to reduce overhead , improve operational efficiencies and better utilize existing assets , including the initiation of projects to reduce the home solutions and tools segments ' manufacturing footprint in north america , to reduce the baby & parenting segment 's manufacturing footprint in asia pacific and to better align the writing segment 's worldwide supply chain footprint . 32 the creation of a transformation office to lead and manage the various workstreams that are integral to the expanded project renewal initiatives , including investing in value analysis and value engineering efforts to reduce product and packaging costs and reducing operational and manufacturing complexity in the writing segment . one newell rubbermaid the company strives to leverage common business activities and best practices to build functional capabilities and to build one common culture of shared values with a focus on collaboration and teamwork . through this initiative , the company has established regional shared service centers to leverage nonmarket-facing functional capabilities to reduce costs . in addition , the company has expanded its focus on leveraging common business activities and best practices by reorganizing the business around two of the critical elements of the growth game plan — brand & category development and market execution & delivery , enhancing its customer development and global supply chain organizations and consolidating activities into centers of excellence for design and innovation capabilities and marketing capabilities . the company is also migrating multiple legacy systems and users to a common sap global information platform in a phased , multi-year rollout . sap is expected to enable the company to integrate and manage its worldwide business and reporting processes more efficiently . substantially all of the company 's north american , latin american and european operations are live on sap , and the company plans to implement sap in its asia pacific operations in 2016. foreign currency - venezuela the company began accounting for its venezuelan operations using highly inflationary accounting in january 2010. under highly inflationary accounting , the company remeasures assets , liabilities , sales and expenses denominated in bolivar fuertes ( “ bolivars ” ) into u.s. dollars using the applicable exchange rate , and the resulting translation adjustments are included in earnings . the company 's venezuelan operations are primarily included in the writing segment . the company generally imports raw materials into venezuela and manufactures writing instruments locally . the company 's venezuelan operations also import components and finished goods . generally , purchases of imported products are denominated in u.s. dollars . the company has historically used various means , including price increases and productivity initiatives , to offset increased costs due to the impacts of high inflation and currency devaluations . during the years ended december 31 , 2015 , 2014 and 2013 , the company 's venezuelan operations generated 2.2 % , 1.4 % and 1.4 % of consolidated net sales , respectively and approximately $ 51 million , $ 30 million and $ 34 million of the company 's reported operating income , respectively
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1,093 | excluding the $ 11.9 million charge related to the buyout of the kmart lease at assembly square marketplace in 2019 , our ratio of ebitdare to combined fixed charges and preferred share dividends remained 4.2x . impacts of covid-19 pandemic we continue to monitor and address risks related to the covid-19 pandemic . in march 2020 , the world health organization characterized covid-19 as a global pandemic and in response to the rapid spread of the virus , state , and local governments issued orders and recommendations to attempt to reduce the further spread of the disease . such orders included shelter-in-place orders , travel restrictions , limitations on public gatherings , school closures , social distancing requirements and the closure of all but critical and essential businesses and services . these orders required closure of all of our corporate offices as non-essential businesses . except for those employees who were critical to providing the necessary day-to-day property management functions required to keep our properties open and operating for essential businesses such as grocery stores and drug stores , and a few employees who were needed to carry out critical corporate functions , we transitioned our entire workforce to remote work in march 2020. although some of our corporate offices have reopened with capacity limitations , approximately 75 % of our workforce continues to work remotely on a regular basis . we have not laid off , furloughed , or terminated any employees nor have we modified the compensation of any or our employees as a result of covid-19 , and the transition to a largely remote workforce has not had any material adverse impact on our financial reporting systems , our internal controls , or disclosure controls and procedures . the government imposed restrictions also required a significant number of tenants who do business in our properties , but were considered non-essential , to close their operations or to significantly limit the amount of business they are able to conduct in their stores . these closures and restrictions have impacted the tenants ' ability to timely pay rent as required under our leases and also caused many tenants to close their business permanently . as a result , our cash flow and results of operations in 2020 were materially adversely impacted and our vacancy increased above historical levels . although virtually all of our leases required the tenants to pay rent even while they were not operating , we entered into numerous agreements to abate , defer and or restructure tenant rent payments for varying periods of time , all with the objective of collecting as much cash as reasonably possible and maintaining occupancy to the maximum extent . we believe those actions will position many of our tenants to be able to return to payment of contractual rent as soon as possible after the impacts from the pandemic have subsided . given the impact to our cash flow caused by tenants not timely paying contractual rent , we took actions to improve our financial position and maximize our liquidity . those actions included raising $ 1.1 billion in may 2020 through a $ 400.0 million term loan and the issuance of $ 700.0 million of senior unsecured notes , amending the covenants on our revolving credit facility to provide us operating flexibility during the expected period during which our cash flow will be impacted , and raising an additional $ 400.0 million of senior unsecured notes in october 2020. throughout the last three quarters of 2020 , we maintained levels of cash significantly in excess of the cash balances we have historically maintained which has adversely impacted our financial results ; however , we believe that such action was prudent to position us with what we expect to be sufficient liquidity to allow us to continue fully operating until our operating revenues return to more typical levels . as of december 31 , 2020 , there is no outstanding balance on our $ 1.0 billion revolving credit facility , and we have cash and cash equivalents of $ 798.3 million . 32 given the adverse impact on our cash flow , we did not commence any significant new capital projects during 2020 and we stopped , at least temporarily , portions of our capital spend that could be stopped . we did , however , continue investing in a number of our larger projects which were in the middle of construction and could not be stopped without causing material adverse financial impact to the company . additional discussion of the impact of covid-19 on our results in 2020 and long-term operations can be found throughout item 7 and item 1a . risk factors . corporate responsibility we actively endeavor to operate and develop our properties in a sustainable , responsible , and effective manner with the objective being to drive long-term growth and aid in value creation for our shareholders , tenants , employees , and local communities . our development activities have been heavily focused on owning , developing and operating properties that are certified under the u.s. green building council's® ( “ usgbc ” ) leadership in energy and environmental design ( leed® ) rating system which serves as a third-party verification that a building or community was designed and built to mitigate its environmental footprint . we currently have 15 leed certified buildings and our pike & rose project has achieved leed for neighborhood development stage 3 gold certification . the covid-19 pandemic has also increased our focus on owning , developing and operating healthier buildings . to that end , our new corporate headquarters space at our 909 rose avenue building has earned a fitwel certification developed by the u.s. centers for disease control and prevention ( cdc ) together with the general services administration ( gsa ) . this certification assesses a building 's impact on seven distinct categories related to overall health and well-being . story_separator_special_tag the primary beneficiary of a vie has both the power to direct the activities that most significantly impact economic performance of the vie and the obligation to absorb losses or the right to receive benefits that could be significant to the vie . the determination of the power to direct the activities that most significantly impact economic performance requires judgment and is impacted by numerous factors including the purpose of the vie , contractual rights and obligations of variable interest holders , and mechanisms for the resolution of disputes among the variable interest holders . long-lived assets and impairment there are estimates and assumptions made by management in preparing the consolidated financial statements for which the actual results will be determined over long periods of time . this includes the recoverability of long-lived assets , including our properties that have been acquired or redeveloped and our investment in certain joint ventures . management 's evaluation of impairment includes review for possible indicators of impairment as well as , in certain circumstances , undiscounted and discounted cash flow analysis . since most of our investments in real estate are wholly-owned or controlled assets which are held for use , a property with impairment indicators is first tested for impairment by comparing the undiscounted cash flows , including residual value , to the current net book value of the property . if the undiscounted cash flows are less than the net book value , the property is written down to expected fair value . the calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows including revenues , operating expenses , required maintenance and development expenditures , market conditions , demand for space by tenants and rental rates over long periods . because our properties typically have a long life , the assumptions used to estimate the future recoverability of book value requires significant management judgment . actual results could be significantly different from the estimates . these estimates have a direct impact on net income , because recording an impairment charge results in a negative adjustment to net income . contingencies we are sometimes involved in lawsuits , warranty claims , and environmental matters arising in the ordinary course of business . management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters . we accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated . if an unfavorable outcome is probable and a reasonable estimate of the loss is a range , we accrue the best estimate within the range ; however , if no amount within the range is a better estimate than any other amount , the minimum within the range is accrued . any difference between our estimate of a potential loss and the actual outcome would result in an increase or decrease to net income . recently adopted and recently issued accounting pronouncements see note 2 to the consolidated financial statements . 2020 property acquisitions , dispositions , and impairment replace_table_token_13_th 36 ( 1 ) this property is adjacent to , and will be operated as part of the property acquired in 2019. the purchase price was paid with a combination of cash and the issuance of 163,322 downreit operating partnership units . approximately $ 0.5 million and $ 0.4 million of net assets acquired were allocated to other assets for `` above market leases , `` and other liabilities for `` below market leases , `` respectively . ( 2 ) the purchase price includes the assumption of $ 8.9 million of mortgage debt , and is in addition to the 37 buildings previously acquired in 2019 , and was completed through the same joint venture . less than $ 0.1 million and approximately $ 3.3 million of net assets acquired were allocated to other assets for `` above market leases , `` and other liabilities for `` below market leases , `` respectively . on september 1 , 2020 , the $ 60.6 million non-recourse mortgage loan on the shops at sunset place matured . the mortgage was not repaid , and thus the lender declared the loan in default . we evaluated our long-term plans for the property , taking into account current market conditions and prospective development and redevelopment returns , as well as the impact of covid-19 on the revenue prospects for the property , and concluded we did not expect to move forward with the planned redevelopment or repay the mortgage balance , and thus , did not expect to be long term holders of the asset . given these expectations , we recorded an impairment charge of $ 57.2 million during the third quarter of 2020. the fair value estimate used to determine the impairment charge was determined by market comparable data and discounted cash flow analyses . the cash flows utilized in such analyses are comprised of unobservable inputs which include forecasted rental revenue and expenses based upon market conditions and future expectations . the capitalization rates and discount rates utilized in such analyses are based upon unobservable rates that we believe to be within a reasonable range of current market rates for the property . based on these inputs , we have determined that the $ 57 million estimated valuation of the property is classified within level 3 of the fair value hierarchy . on december 31 , 2020 , we sold the shops at sunset place for $ 65.5 million and repaid the mortgage loan . the resulting gain of $ 9.2 million is included in the cumulative 2020 gain of $ 98.1 million noted in the disposals below . during the year ended december 31 , 2020 , we sold three properties ( including the shops at sunset place discussed above ) and one building for a total sales price of $ 186.1 million , which resulted in a gain of
| cash requirements the following table provides a summary of material cash requirements comprising our fixed , noncancelable obligations as of december 31 , 2020 : replace_table_token_16_th _ ( 1 ) the weighted average interest rate on our fixed and variable rate debt is 3.32 % as of december 31 , 2020 . ( 2 ) the weighted average interest rate on the fixed and variable rate debt related to our unconsolidated real estate partnerships is 4.59 % as of december 31 , 2020 . $ 25.2 million of the requirements in the next twelve months was repaid when we acquired our partners ' share of the pike & rose hotel joint venture on january 4 , 2021. see note 15 to the consolidated financial statements for additional information . ( 3 ) this includes minimum rental payments related to both finance and operating leases . ( 4 ) this includes the liability related to the sale under threat of condemnation at san antonio center as further discussed in note 3 and note 7 to the consolidated financial statements . in addition to the amounts set forth in the table above and other liquidity requirements previously discussed , the following potential commitments exist : ( a ) under the terms of the congressional plaza partnership agreement , a minority partner has the right to require us and the other minority partner to purchase its 26.63 % interest in congressional plaza at the interest 's then-current fair market value . if the other minority partner defaults in their obligation , we must purchase the full interest .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash requirements the following table provides a summary of material cash requirements comprising our fixed , noncancelable obligations as of december 31 , 2020 : replace_table_token_16_th _ ( 1 ) the weighted average interest rate on our fixed and variable rate debt is 3.32 % as of december 31 , 2020 . ( 2 ) the weighted average interest rate on the fixed and variable rate debt related to our unconsolidated real estate partnerships is 4.59 % as of december 31 , 2020 . $ 25.2 million of the requirements in the next twelve months was repaid when we acquired our partners ' share of the pike & rose hotel joint venture on january 4 , 2021. see note 15 to the consolidated financial statements for additional information . ( 3 ) this includes minimum rental payments related to both finance and operating leases . ( 4 ) this includes the liability related to the sale under threat of condemnation at san antonio center as further discussed in note 3 and note 7 to the consolidated financial statements . in addition to the amounts set forth in the table above and other liquidity requirements previously discussed , the following potential commitments exist : ( a ) under the terms of the congressional plaza partnership agreement , a minority partner has the right to require us and the other minority partner to purchase its 26.63 % interest in congressional plaza at the interest 's then-current fair market value . if the other minority partner defaults in their obligation , we must purchase the full interest .
```
Suspicious Activity Report : excluding the $ 11.9 million charge related to the buyout of the kmart lease at assembly square marketplace in 2019 , our ratio of ebitdare to combined fixed charges and preferred share dividends remained 4.2x . impacts of covid-19 pandemic we continue to monitor and address risks related to the covid-19 pandemic . in march 2020 , the world health organization characterized covid-19 as a global pandemic and in response to the rapid spread of the virus , state , and local governments issued orders and recommendations to attempt to reduce the further spread of the disease . such orders included shelter-in-place orders , travel restrictions , limitations on public gatherings , school closures , social distancing requirements and the closure of all but critical and essential businesses and services . these orders required closure of all of our corporate offices as non-essential businesses . except for those employees who were critical to providing the necessary day-to-day property management functions required to keep our properties open and operating for essential businesses such as grocery stores and drug stores , and a few employees who were needed to carry out critical corporate functions , we transitioned our entire workforce to remote work in march 2020. although some of our corporate offices have reopened with capacity limitations , approximately 75 % of our workforce continues to work remotely on a regular basis . we have not laid off , furloughed , or terminated any employees nor have we modified the compensation of any or our employees as a result of covid-19 , and the transition to a largely remote workforce has not had any material adverse impact on our financial reporting systems , our internal controls , or disclosure controls and procedures . the government imposed restrictions also required a significant number of tenants who do business in our properties , but were considered non-essential , to close their operations or to significantly limit the amount of business they are able to conduct in their stores . these closures and restrictions have impacted the tenants ' ability to timely pay rent as required under our leases and also caused many tenants to close their business permanently . as a result , our cash flow and results of operations in 2020 were materially adversely impacted and our vacancy increased above historical levels . although virtually all of our leases required the tenants to pay rent even while they were not operating , we entered into numerous agreements to abate , defer and or restructure tenant rent payments for varying periods of time , all with the objective of collecting as much cash as reasonably possible and maintaining occupancy to the maximum extent . we believe those actions will position many of our tenants to be able to return to payment of contractual rent as soon as possible after the impacts from the pandemic have subsided . given the impact to our cash flow caused by tenants not timely paying contractual rent , we took actions to improve our financial position and maximize our liquidity . those actions included raising $ 1.1 billion in may 2020 through a $ 400.0 million term loan and the issuance of $ 700.0 million of senior unsecured notes , amending the covenants on our revolving credit facility to provide us operating flexibility during the expected period during which our cash flow will be impacted , and raising an additional $ 400.0 million of senior unsecured notes in october 2020. throughout the last three quarters of 2020 , we maintained levels of cash significantly in excess of the cash balances we have historically maintained which has adversely impacted our financial results ; however , we believe that such action was prudent to position us with what we expect to be sufficient liquidity to allow us to continue fully operating until our operating revenues return to more typical levels . as of december 31 , 2020 , there is no outstanding balance on our $ 1.0 billion revolving credit facility , and we have cash and cash equivalents of $ 798.3 million . 32 given the adverse impact on our cash flow , we did not commence any significant new capital projects during 2020 and we stopped , at least temporarily , portions of our capital spend that could be stopped . we did , however , continue investing in a number of our larger projects which were in the middle of construction and could not be stopped without causing material adverse financial impact to the company . additional discussion of the impact of covid-19 on our results in 2020 and long-term operations can be found throughout item 7 and item 1a . risk factors . corporate responsibility we actively endeavor to operate and develop our properties in a sustainable , responsible , and effective manner with the objective being to drive long-term growth and aid in value creation for our shareholders , tenants , employees , and local communities . our development activities have been heavily focused on owning , developing and operating properties that are certified under the u.s. green building council's® ( “ usgbc ” ) leadership in energy and environmental design ( leed® ) rating system which serves as a third-party verification that a building or community was designed and built to mitigate its environmental footprint . we currently have 15 leed certified buildings and our pike & rose project has achieved leed for neighborhood development stage 3 gold certification . the covid-19 pandemic has also increased our focus on owning , developing and operating healthier buildings . to that end , our new corporate headquarters space at our 909 rose avenue building has earned a fitwel certification developed by the u.s. centers for disease control and prevention ( cdc ) together with the general services administration ( gsa ) . this certification assesses a building 's impact on seven distinct categories related to overall health and well-being . story_separator_special_tag the primary beneficiary of a vie has both the power to direct the activities that most significantly impact economic performance of the vie and the obligation to absorb losses or the right to receive benefits that could be significant to the vie . the determination of the power to direct the activities that most significantly impact economic performance requires judgment and is impacted by numerous factors including the purpose of the vie , contractual rights and obligations of variable interest holders , and mechanisms for the resolution of disputes among the variable interest holders . long-lived assets and impairment there are estimates and assumptions made by management in preparing the consolidated financial statements for which the actual results will be determined over long periods of time . this includes the recoverability of long-lived assets , including our properties that have been acquired or redeveloped and our investment in certain joint ventures . management 's evaluation of impairment includes review for possible indicators of impairment as well as , in certain circumstances , undiscounted and discounted cash flow analysis . since most of our investments in real estate are wholly-owned or controlled assets which are held for use , a property with impairment indicators is first tested for impairment by comparing the undiscounted cash flows , including residual value , to the current net book value of the property . if the undiscounted cash flows are less than the net book value , the property is written down to expected fair value . the calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows including revenues , operating expenses , required maintenance and development expenditures , market conditions , demand for space by tenants and rental rates over long periods . because our properties typically have a long life , the assumptions used to estimate the future recoverability of book value requires significant management judgment . actual results could be significantly different from the estimates . these estimates have a direct impact on net income , because recording an impairment charge results in a negative adjustment to net income . contingencies we are sometimes involved in lawsuits , warranty claims , and environmental matters arising in the ordinary course of business . management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters . we accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated . if an unfavorable outcome is probable and a reasonable estimate of the loss is a range , we accrue the best estimate within the range ; however , if no amount within the range is a better estimate than any other amount , the minimum within the range is accrued . any difference between our estimate of a potential loss and the actual outcome would result in an increase or decrease to net income . recently adopted and recently issued accounting pronouncements see note 2 to the consolidated financial statements . 2020 property acquisitions , dispositions , and impairment replace_table_token_13_th 36 ( 1 ) this property is adjacent to , and will be operated as part of the property acquired in 2019. the purchase price was paid with a combination of cash and the issuance of 163,322 downreit operating partnership units . approximately $ 0.5 million and $ 0.4 million of net assets acquired were allocated to other assets for `` above market leases , `` and other liabilities for `` below market leases , `` respectively . ( 2 ) the purchase price includes the assumption of $ 8.9 million of mortgage debt , and is in addition to the 37 buildings previously acquired in 2019 , and was completed through the same joint venture . less than $ 0.1 million and approximately $ 3.3 million of net assets acquired were allocated to other assets for `` above market leases , `` and other liabilities for `` below market leases , `` respectively . on september 1 , 2020 , the $ 60.6 million non-recourse mortgage loan on the shops at sunset place matured . the mortgage was not repaid , and thus the lender declared the loan in default . we evaluated our long-term plans for the property , taking into account current market conditions and prospective development and redevelopment returns , as well as the impact of covid-19 on the revenue prospects for the property , and concluded we did not expect to move forward with the planned redevelopment or repay the mortgage balance , and thus , did not expect to be long term holders of the asset . given these expectations , we recorded an impairment charge of $ 57.2 million during the third quarter of 2020. the fair value estimate used to determine the impairment charge was determined by market comparable data and discounted cash flow analyses . the cash flows utilized in such analyses are comprised of unobservable inputs which include forecasted rental revenue and expenses based upon market conditions and future expectations . the capitalization rates and discount rates utilized in such analyses are based upon unobservable rates that we believe to be within a reasonable range of current market rates for the property . based on these inputs , we have determined that the $ 57 million estimated valuation of the property is classified within level 3 of the fair value hierarchy . on december 31 , 2020 , we sold the shops at sunset place for $ 65.5 million and repaid the mortgage loan . the resulting gain of $ 9.2 million is included in the cumulative 2020 gain of $ 98.1 million noted in the disposals below . during the year ended december 31 , 2020 , we sold three properties ( including the shops at sunset place discussed above ) and one building for a total sales price of $ 186.1 million , which resulted in a gain of
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1,094 | current trends and outlook over the last five years , we estimate the pool industry grew from 2 % to 4 % per year due to growth in the installed base of pools , which helped drive pool maintenance growth , improvement in remodeling and replacement activity and annual growth in the pool construction market . improvements in general external market factors in the united states including consumer confidence , employment , housing , consumer financing and economic expansion , largely support our base business growth . we feel these positive external trends have promoted increased consumer spending on higher value products that enhance swimming pools and outdoor living spaces . our consistent base business sales growth reflects industry growth plus market share gains from existing customers expanding their businesses and our success in newer market initiatives such as hardscapes and commercial pools . while we estimate that new pool construction increased to approximately 75,000 new units in 2017 from the historically low levels experienced during the economic downturn , construction levels are still down approximately 65 % compared to peak historical levels and down approximately 50 % to 55 % from what we consider normal levels . favorable weather plays a role in industry growth by accelerating growth in any given year , while unfavorable weather impedes growth . in 2017 specifically , our industry experienced modestly favorable weather overall , despite the severe storms that impacted our industry in texas and florida in september and october . due to the repairs required following major storms , sales mostly recovered by the end of the year . in 2016 , an earlier start to the pool season due to warmer than usual temperatures and overall favorable weather throughout the rest of the year benefited the industry as a whole . in 2015 , excessive precipitation impacted our industry in the second quarter ; however a mild fall and delayed winter alleviated any contraction in industry growth rates . in establishing our outlook each year , we base our growth assumptions on normal weather conditions and do not incorporate alternative weather predictions into our guidance . we believe there is potential for continued market recovery over the next several years . the great recession created a build-up of deferred replacement and remodeling activity , which we have largely fulfilled over the past seven years . we expect that new pool and irrigation construction levels will continue to grow incrementally , but we believe that consumer investments in outdoor living spaces beyond the swimming pool will generate greater growth over the next four to seven years . additionally , we believe favorable demographics from an aging population and southern migration are ideal for increased residential outdoor living investment . we expect that market conditions in the united states will continue to improve , enabling further replacement , remodeling and new construction activity and that the industry will realize an annual growth rate of approximately 4 % to 7 % over this time period . as economic trends indicate that consumer spending has largely recovered and that residential construction activities will likely continue to improve , we believe that we are well positioned to take advantage of both the market expansion and the inherent long‑term growth opportunities in our industry . we established our initial outlook for 2018 based on reasonable expectations of organic market share growth , ongoing leverage of infrastructure and continuous process improvements . for 2018 , we expect the macroeconomic environment in the united states will be quite similar to 2017 . we expect to continue to gain market share through our comprehensive service and product offerings , which we continually diversify through internal sourcing initiatives and expansion into new markets . we also plan to broaden our geographic presence by opening 4 to 6 new sales centers in 2018 and by making selective acquisitions when appropriate opportunities arise . the following section summarizes our outlook for 2018 : we expect sales growth of 6 % to 7 % , impacted by the following factors and assumptions : ◦ assumed normal weather patterns for 2018 ; ◦ anticipated continued growth from replacement , remodeling and construction activity and market expansion through newer product offerings like hardscapes and commercial pools ; ◦ estimated 1 % growth from acquisitions completed throughout 2017 ; ◦ inflationary product cost increases of approximately 1 % to 2 % ; and ◦ one additional selling day for the full year for 2018 compared to 2017 due to an extra selling day in the fourth quarter ( neutral selling days for all other quarters ) . we project relatively neutral gross margin trends for the full year , as we believe our sales growth will continue to be weighted toward sales of lower margin discretionary products . adverse margin impacts should be offset by benefits from our efforts in supply chain management and internal pricing initiatives . we expect operating expenses will grow at approximately 60 % of the rate of our gross profit growth , reflecting inflationary increases and incremental costs to support our sales growth expectations . the main challenges in achieving this metric include managing people and facility costs in tight labor and real estate markets . however , we continue to see significant opportunity to leverage our existing infrastructure to achieve this goal . 20 our provision for income taxes for 2017 was impacted by both u.s. tax reform and asu 2016-09. as a result of the recently enacted tax legislation , we recorded a provisional tax benefit of $ 12.0 million in the fourth quarter of 2017 , which primarily reflects the re-measurement of our net deferred tax liability . story_separator_special_tag as a result of these uncertainties , our total income tax provision may fluctuate on a quarterly basis . each year , we prepare a return to provision analysis upon filing our income tax returns . based on this hindsight analysis , we concluded that our prior year income tax provision was within a range of acceptable estimates and that our provision calculation methodology is appropriate . differences between our effective income tax rate and federal and state statutory tax rates are primarily due to valuation allowances recorded for certain of our international subsidiaries with tax losses . performance-based compensation accrual the compensation committee of our board ( compensation committee ) annually reviews our compensation structure to oversee management 's implementation of maintaining a program that attracts , retains , develops and motivates employees without leading to unnecessary risk taking . our compensation packages include bonus plans that are specific to each group of eligible participants and their levels and areas of responsibility . the majority of our bonus plans have annual cash payments that are based primarily on objective performance criteria . we calculate bonuses based on the achievement of certain key measurable financial and operational results , including operating income and diluted earnings per share ( eps ) . 24 we use an annual cash performance award ( annual bonus ) to focus corporate behavior on short-term goals for growth , financial performance and other specific financial and business improvement metrics . management sets the company 's annual bonus objectives at the beginning of the bonus plan year using both historical information and forecasted results of operations for the current plan year . management also establishes specific business improvement objectives for both our operating units and corporate employees . the compensation committee approves objectives for bonus plans involving executive management . we also utilize our medium-term ( three-year ) strategic plan incentive program ( spip ) to provide senior management with an additional cash-based , pay-for-performance award based upon the achievement of specified earnings growth objectives . payouts through the spip are based on three-year compounded annual growth rates ( cagrs ) of our diluted eps . we record annual performance-based compensation accruals based on operating income achieved in a quarter as a percentage of total expected operating income for the year . we estimate total expected operating income for the current plan year using management 's estimate of the total overall incentives earned per the stated bonus plan objectives . starting in june , and continuing each quarter through our fiscal year end , we adjust our estimated performance-based compensation accrual based on our detailed analysis of each bonus plan , the participants ' progress toward achievement of their specific objectives and management 's estimates related to the discretionary components of the bonus plans , if any . we record spip accruals based on our total expected eps for the current fiscal year and cagr estimates for the succeeding two years . we base our current fiscal year estimates on the same assumptions used for our annual bonus calculation and our cagr estimates on historical growth rates and projections for the remainder of the three-year performance periods . our quarterly performance-based compensation expense and accrual balances may vary relative to actual annual bonus expense and payouts due to the following : differences between estimated and actual performance ; our projections related to achievement of multiple-year performance objectives for our spip ; and the discretionary components of the bonus plans . we generally make bonus payments at the end of february following the most recently completed fiscal year . each year , we compare the actual bonus payouts to amounts accrued at the previous year end to determine the accuracy of our performance‑based compensation estimates . based on our hindsight analysis , we concluded that our performance-based compensation accrual balances were within a reasonable range of acceptable estimates and that our estimation methodologies are appropriate . impairment of goodwill and other indefinite-lived intangible assets goodwill is our largest intangible asset . at december 31 , 2017 , our goodwill balance was $ 189.4 million , representing approximately 17 % of total assets . goodwill represents the excess of the amount we paid to acquire a company over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . we perform our goodwill impairment test in the fourth quarter of each year or on a more frequent basis if events or changes in circumstances occur that indicate potential impairment . if the estimated fair value of any of our reporting units falls below its carrying value , we compare the estimated fair value of the reporting unit 's goodwill to its carrying value . if the carrying value of a reporting unit 's goodwill exceeds its estimated fair value , we recognize the difference as an impairment loss in operating income . since we define an operating segment as an individual sales center and we do not have operations below the sales center level , our reporting unit is an individual sales center . as of october 1 , 2017 , we had 221 reporting units with allocated goodwill balances . the most significant goodwill balance for a reporting unit was $ 5.7 million and the average goodwill balance was $ 0.8 million . in october 2017 , 2016 and 2015 , we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level . in the third quarter of 2016 , we recorded a $ 0.6 million goodwill impairment charge related to an at-risk reporting unit in quebec , canada . we continue to monitor this location 's results , which came in above expectations at the end of the 2017 pool season . as of december 31 , 2017 , the remaining goodwill balance for this reporting unit was $ 1.8 million . we estimate the fair value of our reporting units based on
| sources and uses of cash the following table summarizes our cash flows ( in thousands ) : replace_table_token_23_th cash provided by operations of $ 175.3 million for 2017 increased compared to 2016 primarily due to the increase in net income , partially offset by changes in working capital . excluding the net income benefit from tax changes , cash provided by operations approximates net income for 2017. the timing of our early buy inventory purchases can create fluctuations in inventory and accounts payable balances from year to year . a change in the timing of one of our inventory early buy programs in 2017 compared to 2016 resulted in higher inventory but lower accounts payable balances at year end , resulting in a negative impact to our 2017 operating cash flows . in 2016 , cash provided by operations improved compared to 2015 primarily due to our net income growth . cash used in investing activities decreased in 2017 due to a decrease of $ 6.9 million in payments for acquisitions compared to 2016. this was offset by a n additional $ 5.0 million of net capital expenditures in 2017 compared to 2016 to fund our continued investment in new vehicles , equipment and technology . related to the increase from 2015 to 2016 , our 2016 cash used in investing activities reflects $ 19.7 million in net payments to fund acquisitions compared to $ 4.5 million in net payments to fund acquisitions in 2015 . cash used in financing activities increased in 2017 , primarily due to lower net borrowings on our debt arrangements . we had $ 82.1 million of net proceeds from our debt arrangements in 2017 compared to $ 109.4 million in 2016 , primarily as a result of lower share repurchases . we repurchased $ 143.2 million of shares in the open market in 2017 compared to $ 175.6 million in 2016 . in 2015 , we had net proceeds from our debt arrangements of $ 8.9 million , while we repurchased $ 92.4 million of shares in the open market .
| 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. |
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.
```sources and uses of cash the following table summarizes our cash flows ( in thousands ) : replace_table_token_23_th cash provided by operations of $ 175.3 million for 2017 increased compared to 2016 primarily due to the increase in net income , partially offset by changes in working capital . excluding the net income benefit from tax changes , cash provided by operations approximates net income for 2017. the timing of our early buy inventory purchases can create fluctuations in inventory and accounts payable balances from year to year . a change in the timing of one of our inventory early buy programs in 2017 compared to 2016 resulted in higher inventory but lower accounts payable balances at year end , resulting in a negative impact to our 2017 operating cash flows . in 2016 , cash provided by operations improved compared to 2015 primarily due to our net income growth . cash used in investing activities decreased in 2017 due to a decrease of $ 6.9 million in payments for acquisitions compared to 2016. this was offset by a n additional $ 5.0 million of net capital expenditures in 2017 compared to 2016 to fund our continued investment in new vehicles , equipment and technology . related to the increase from 2015 to 2016 , our 2016 cash used in investing activities reflects $ 19.7 million in net payments to fund acquisitions compared to $ 4.5 million in net payments to fund acquisitions in 2015 . cash used in financing activities increased in 2017 , primarily due to lower net borrowings on our debt arrangements . we had $ 82.1 million of net proceeds from our debt arrangements in 2017 compared to $ 109.4 million in 2016 , primarily as a result of lower share repurchases . we repurchased $ 143.2 million of shares in the open market in 2017 compared to $ 175.6 million in 2016 . in 2015 , we had net proceeds from our debt arrangements of $ 8.9 million , while we repurchased $ 92.4 million of shares in the open market .
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Suspicious Activity Report : current trends and outlook over the last five years , we estimate the pool industry grew from 2 % to 4 % per year due to growth in the installed base of pools , which helped drive pool maintenance growth , improvement in remodeling and replacement activity and annual growth in the pool construction market . improvements in general external market factors in the united states including consumer confidence , employment , housing , consumer financing and economic expansion , largely support our base business growth . we feel these positive external trends have promoted increased consumer spending on higher value products that enhance swimming pools and outdoor living spaces . our consistent base business sales growth reflects industry growth plus market share gains from existing customers expanding their businesses and our success in newer market initiatives such as hardscapes and commercial pools . while we estimate that new pool construction increased to approximately 75,000 new units in 2017 from the historically low levels experienced during the economic downturn , construction levels are still down approximately 65 % compared to peak historical levels and down approximately 50 % to 55 % from what we consider normal levels . favorable weather plays a role in industry growth by accelerating growth in any given year , while unfavorable weather impedes growth . in 2017 specifically , our industry experienced modestly favorable weather overall , despite the severe storms that impacted our industry in texas and florida in september and october . due to the repairs required following major storms , sales mostly recovered by the end of the year . in 2016 , an earlier start to the pool season due to warmer than usual temperatures and overall favorable weather throughout the rest of the year benefited the industry as a whole . in 2015 , excessive precipitation impacted our industry in the second quarter ; however a mild fall and delayed winter alleviated any contraction in industry growth rates . in establishing our outlook each year , we base our growth assumptions on normal weather conditions and do not incorporate alternative weather predictions into our guidance . we believe there is potential for continued market recovery over the next several years . the great recession created a build-up of deferred replacement and remodeling activity , which we have largely fulfilled over the past seven years . we expect that new pool and irrigation construction levels will continue to grow incrementally , but we believe that consumer investments in outdoor living spaces beyond the swimming pool will generate greater growth over the next four to seven years . additionally , we believe favorable demographics from an aging population and southern migration are ideal for increased residential outdoor living investment . we expect that market conditions in the united states will continue to improve , enabling further replacement , remodeling and new construction activity and that the industry will realize an annual growth rate of approximately 4 % to 7 % over this time period . as economic trends indicate that consumer spending has largely recovered and that residential construction activities will likely continue to improve , we believe that we are well positioned to take advantage of both the market expansion and the inherent long‑term growth opportunities in our industry . we established our initial outlook for 2018 based on reasonable expectations of organic market share growth , ongoing leverage of infrastructure and continuous process improvements . for 2018 , we expect the macroeconomic environment in the united states will be quite similar to 2017 . we expect to continue to gain market share through our comprehensive service and product offerings , which we continually diversify through internal sourcing initiatives and expansion into new markets . we also plan to broaden our geographic presence by opening 4 to 6 new sales centers in 2018 and by making selective acquisitions when appropriate opportunities arise . the following section summarizes our outlook for 2018 : we expect sales growth of 6 % to 7 % , impacted by the following factors and assumptions : ◦ assumed normal weather patterns for 2018 ; ◦ anticipated continued growth from replacement , remodeling and construction activity and market expansion through newer product offerings like hardscapes and commercial pools ; ◦ estimated 1 % growth from acquisitions completed throughout 2017 ; ◦ inflationary product cost increases of approximately 1 % to 2 % ; and ◦ one additional selling day for the full year for 2018 compared to 2017 due to an extra selling day in the fourth quarter ( neutral selling days for all other quarters ) . we project relatively neutral gross margin trends for the full year , as we believe our sales growth will continue to be weighted toward sales of lower margin discretionary products . adverse margin impacts should be offset by benefits from our efforts in supply chain management and internal pricing initiatives . we expect operating expenses will grow at approximately 60 % of the rate of our gross profit growth , reflecting inflationary increases and incremental costs to support our sales growth expectations . the main challenges in achieving this metric include managing people and facility costs in tight labor and real estate markets . however , we continue to see significant opportunity to leverage our existing infrastructure to achieve this goal . 20 our provision for income taxes for 2017 was impacted by both u.s. tax reform and asu 2016-09. as a result of the recently enacted tax legislation , we recorded a provisional tax benefit of $ 12.0 million in the fourth quarter of 2017 , which primarily reflects the re-measurement of our net deferred tax liability . story_separator_special_tag as a result of these uncertainties , our total income tax provision may fluctuate on a quarterly basis . each year , we prepare a return to provision analysis upon filing our income tax returns . based on this hindsight analysis , we concluded that our prior year income tax provision was within a range of acceptable estimates and that our provision calculation methodology is appropriate . differences between our effective income tax rate and federal and state statutory tax rates are primarily due to valuation allowances recorded for certain of our international subsidiaries with tax losses . performance-based compensation accrual the compensation committee of our board ( compensation committee ) annually reviews our compensation structure to oversee management 's implementation of maintaining a program that attracts , retains , develops and motivates employees without leading to unnecessary risk taking . our compensation packages include bonus plans that are specific to each group of eligible participants and their levels and areas of responsibility . the majority of our bonus plans have annual cash payments that are based primarily on objective performance criteria . we calculate bonuses based on the achievement of certain key measurable financial and operational results , including operating income and diluted earnings per share ( eps ) . 24 we use an annual cash performance award ( annual bonus ) to focus corporate behavior on short-term goals for growth , financial performance and other specific financial and business improvement metrics . management sets the company 's annual bonus objectives at the beginning of the bonus plan year using both historical information and forecasted results of operations for the current plan year . management also establishes specific business improvement objectives for both our operating units and corporate employees . the compensation committee approves objectives for bonus plans involving executive management . we also utilize our medium-term ( three-year ) strategic plan incentive program ( spip ) to provide senior management with an additional cash-based , pay-for-performance award based upon the achievement of specified earnings growth objectives . payouts through the spip are based on three-year compounded annual growth rates ( cagrs ) of our diluted eps . we record annual performance-based compensation accruals based on operating income achieved in a quarter as a percentage of total expected operating income for the year . we estimate total expected operating income for the current plan year using management 's estimate of the total overall incentives earned per the stated bonus plan objectives . starting in june , and continuing each quarter through our fiscal year end , we adjust our estimated performance-based compensation accrual based on our detailed analysis of each bonus plan , the participants ' progress toward achievement of their specific objectives and management 's estimates related to the discretionary components of the bonus plans , if any . we record spip accruals based on our total expected eps for the current fiscal year and cagr estimates for the succeeding two years . we base our current fiscal year estimates on the same assumptions used for our annual bonus calculation and our cagr estimates on historical growth rates and projections for the remainder of the three-year performance periods . our quarterly performance-based compensation expense and accrual balances may vary relative to actual annual bonus expense and payouts due to the following : differences between estimated and actual performance ; our projections related to achievement of multiple-year performance objectives for our spip ; and the discretionary components of the bonus plans . we generally make bonus payments at the end of february following the most recently completed fiscal year . each year , we compare the actual bonus payouts to amounts accrued at the previous year end to determine the accuracy of our performance‑based compensation estimates . based on our hindsight analysis , we concluded that our performance-based compensation accrual balances were within a reasonable range of acceptable estimates and that our estimation methodologies are appropriate . impairment of goodwill and other indefinite-lived intangible assets goodwill is our largest intangible asset . at december 31 , 2017 , our goodwill balance was $ 189.4 million , representing approximately 17 % of total assets . goodwill represents the excess of the amount we paid to acquire a company over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . we perform our goodwill impairment test in the fourth quarter of each year or on a more frequent basis if events or changes in circumstances occur that indicate potential impairment . if the estimated fair value of any of our reporting units falls below its carrying value , we compare the estimated fair value of the reporting unit 's goodwill to its carrying value . if the carrying value of a reporting unit 's goodwill exceeds its estimated fair value , we recognize the difference as an impairment loss in operating income . since we define an operating segment as an individual sales center and we do not have operations below the sales center level , our reporting unit is an individual sales center . as of october 1 , 2017 , we had 221 reporting units with allocated goodwill balances . the most significant goodwill balance for a reporting unit was $ 5.7 million and the average goodwill balance was $ 0.8 million . in october 2017 , 2016 and 2015 , we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level . in the third quarter of 2016 , we recorded a $ 0.6 million goodwill impairment charge related to an at-risk reporting unit in quebec , canada . we continue to monitor this location 's results , which came in above expectations at the end of the 2017 pool season . as of december 31 , 2017 , the remaining goodwill balance for this reporting unit was $ 1.8 million . we estimate the fair value of our reporting units based on
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1,095 | sales prices of these products range from under $ 100 to over $ 100,000 , although are mostly priced in the range of $ 5,000 to $ 15,000. they are mainly scientific instruments like spectrophotometers and plate readers that analyze light to detect and quantify a wide range of molecular and cellular processes , or apparatus like gel electrophoresis units . our products and services also include wireless monitors , data acquisition and analysis products and software , and ancillary services including post-contract customer support , training and installation . we use distributors for both our catalog products and our higher priced products , as well as for sales in locations where we do not have subsidiaries or where we have existing distributors in place from acquired businesses . for the years ended december 31 , 2019 and 2018 , approximately 30 % and 41 % of our total revenues from continuing operations , respectively , were derived from sales to distributors . for the years ended december 31 , 2019 and 2018 , approximately 84 % and 85 % of our revenues from continuing operations , respectively , were derived from products we manufacture and approximately 16 % and 15 % , respectively , were derived from complementary products we distribute in order to provide the researcher with a single source for all equipment needed to conduct a particular experiment . for the years ended december 31 , 2019 and 2018 , approximately 29 % and 30 % of our revenues from continuing operations , respectively , were derived from sales made by our non-united states operations . cost of revenues . cost of revenues includes material , labor and manufacturing overhead costs , obsolescence charges , packaging costs , warranty costs , shipping costs and royalties . our cost of revenues may vary over time based on the mix of products sold . we sell products that we manufacture and products that we purchase from third parties . the products that we purchase from third parties typically have a higher cost of revenues as a percent of revenues because the profit is effectively shared with the original manufacturer . we anticipate that our manufactured products will continue to have a lower cost of revenues as a percentage of revenues as compared with the cost of non-manufactured products for the foreseeable future . additionally , our cost of revenues as a percent of revenues will vary based on mix of direct to end user sales and distributor sales , mix by product line and mix by geography . 21 sales and marketing expenses . sales and marketing expense consists primarily of salaries and related expenses for personnel in sales , marketing and customer support functions . we also incur costs for travel , trade shows , demonstration equipment , public relations and marketing materials , consisting primarily of the printing and distribution of catalogs , supplements and the maintenance of our websites . we may from time to time expand our marketing efforts by employing additional technical marketing specialists in an effort to increase sales of selected categories of products . we may also from time to time expand our direct sales organizations in an effort to concentrate on key accounts or promote certain product lines . general and administrative expenses . general and administrative expense consists primarily of salaries and other related costs for personnel in executive , finance , accounting , information technology and human resource functions . other costs include professional fees for legal and accounting services , information technology infrastructure , facility costs , investor relations , insurance and provision for doubtful accounts . research and development expenses . research and development expenses consists primarily of salaries and related expenses for personnel and spending to develop and enhance our products . other research and development expenses include fees for consultants and outside service providers , and material costs for prototype and test units . we expense research and development costs as incurred . grants received from governmental entities related to research projects are accounted for as a reduction in research and development expense over the period of the project . we believe that investment in product development is a competitive necessity and plan to continue to make these investments in order to realize the potential of new technologies that we develop , license or acquire for existing markets . selected results of operations year ended december 31 , 2019 compared to year ended december 31 , 2018 unless otherwise described , the amounts and percentages in the table above and those amounts and percentages discussed below exclude the revenues and expenses of denville . revenues revenues for the year ended december 31 , 2019 were $ 116.2 million , a decrease of ( 3.8 ) % , or $ 4.6 million , compared to revenues of $ 120.8 million for the same period in 2018. the decrease in revenue for the year ended december 31 , 2019 is due to lower sales volume in europe as well as lower volume with contract research organizations due to customer consolidation . these reductions were partially offset by growth in sales of cellular and molecular discovery technologies in north america . additionally , revenues for the year ended december 31 , 2019 included twelve months of revenues from dsi as compared to eleven months of revenues from dsi included in the year ended december 31 , 2018. the impact of currency translation negatively impacted revenues in the year ended december 31 , 2019 by approximately $ 1.8 million . story_separator_special_tag factors we consider important which could trigger an impairment review include the following : significant underperformance relative to expected historical or projected future operating results ; significant changes in the manner of our use of the acquired assets or the strategy for our overall business ; significant negative industry or economic trends ; significant changes in who our competitors are and what they do ; significant changes in our relationship with our distributors ; significant decline in our stock price for a sustained period ; and our market capitalization relative to net book value . if we were to determine that the value of long-lived assets and identifiable intangible assets with finite lives was not recoverable based on the existence of one or more of the aforementioned factors , then the recoverability of those assets to be held and used would be measured by a comparison of the carrying amount of those assets to undiscounted future net cash flows before tax effects expected to be generated by those assets . if such assets are considered to be impaired , the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds the fair value of the assets . goodwill and other intangible assets . fasb asc 350 , “ intangibles-goodwill and others ” addresses financial accounting and reporting for acquired goodwill and other intangible assets . among other things , fasb asc 350 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized , but rather tested annually for impairment or more frequently if events or circumstances indicate that there may be impairment . goodwill is also subject to an annual impairment test , or more frequently , if indicators of potential impairment arise . asu 2011-08 intends to simplify goodwill impairment testing by permitting an assessment of qualitative factors to determine when events and circumstances lead to the conclusion that it is necessary to perform the two-step goodwill impairment test required under asc 350. the two-step goodwill impairment test consists of a comparison of the fair value of our reporting units with their carrying amount . if the carrying amount exceeds its fair value , we are required to perform the second step of the impairment test , as this is an indication that goodwill may be impaired . the impairment loss is measured by comparing the implied fair value of the reporting unit 's goodwill with its carrying amount . if the carrying amount exceeds the implied fair value , an impairment loss shall be recognized in an amount equal to the excess . after an impairment loss is recognized , the adjusted carrying amount of the intangible asset shall be its new accounting basis . subsequent reversal of a previously recognized impairment loss is prohibited . for unamortizable intangible assets , if the carrying amount were to exceed the fair value of the asset , we would write down the unamortizable intangible asset to fair value . for the purpose of our goodwill analysis , we have one reporting unit . we conducted our annual impairment analysis using the income approach , the discounted cash flow method , to derive the fair value in preparing its goodwill impairment assessment . we selected this method as being the most meaningful in preparing the goodwill assessment because the use of the income approach typically generates a more precise measurement of fair value than the market approach . in applying the income approach , we made assumptions about the amount and timing of future expected cash flows , terminal value growth rates and appropriate discount rates . the amount and timing of future cash flows within our discounted cash flow analysis is based on our most recent operational budgets , long range strategic plans and other estimates . the terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in the discounted cash flow analysis and reflects our best estimates for stable , perpetual growth . we used an estimate of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rate to apply to the future expected cash flows . the results of our test for goodwill impairment showed that the estimated fair value of our business substantially exceeded its carrying value . we concluded that none of our goodwill was impaired . during the year ended december 31 , 2019 we recorded impairment charges against our intangible assets of approximately $ 1.5 million . see note 6 in the consolidated financial statements included in part iv , item 15. of this report “ exhibits , financial statement schedules ” for further discussion regarding impairment charges . stock-based compensation . we account for stock-based payment awards in accordance with the provisions of fasb asc 718 , “ compensation—stock compensation ” , which requires us to recognize compensation expense for all stock-based payment awards made to employees and directors including stock options , restricted stock units and restricted stock units with a market condition related to our third amended and restated 2000 stock option and incentive plan , as well as employee stock purchases related to our employee stock purchase plan ( as amended , espp ) . we issue new shares upon stock option exercises , upon the vesting of restricted stock units and restricted stock units with a market condition , and under our espp . fasb asc 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model . the value of the award that vests is recognized as expense over the requisite service periods in our consolidated statement of operations . we account for forfeitures for service-based awards as they occur , with no adjustment for estimated forfeitures . 28 we value stock-based payment awards , except restricted stock awards , at the grant date using the black-scholes option-pricing model .
| liquidity and capital resources historically , we have financed our business through cash provided by operating activities , bank borrowings , and the issuance of common stock . our liquidity requirements arise primarily from investing activities , including funding of acquisitions , and other capital expenditures . on january 22 , 2018 , we sold the operations of denville , and received approximately $ 15.8 million , net of cash on hand . simultaneously , we retired the existing debt balances of approximately $ 11.9 million . on january 31 , 2018 , we entered into the financing agreement , which comprised of a $ 64.0 million term loan and up to a $ 25.0 million line of credit . finally , on january 31 , 2018 , we acquired dsi for approximately $ 68.0 million , net of cash acquired . as of december 31 , 2019 , we held cash and cash equivalents of $ 8.3 million , compared with $ 8.2 million at december 31 , 2018. as of december 31 , 2019 and december 31 , 2018 , we had $ 55.0 million and $ 62.4 million of borrowings outstanding under our credit facility , respectively . total debt , net of cash and cash equivalents was $ 46.7 million at december 31 , 2019 , compared to $ 54.2 million at december 31 , 2018. in addition , we have a united kingdom pension obligation that was overfunded ( underfunded ) by approximately $ 1.1 million and $ ( 0.9 ) million as of december 31 , 2019 and december 31 , 2018 , respectively . as of december 31 , 2019 and december 31 , 2018 , cash and cash equivalents held by our foreign subsidiaries was $ 3.5 million and $ 3.2 million , 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. |
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 historically , we have financed our business through cash provided by operating activities , bank borrowings , and the issuance of common stock . our liquidity requirements arise primarily from investing activities , including funding of acquisitions , and other capital expenditures . on january 22 , 2018 , we sold the operations of denville , and received approximately $ 15.8 million , net of cash on hand . simultaneously , we retired the existing debt balances of approximately $ 11.9 million . on january 31 , 2018 , we entered into the financing agreement , which comprised of a $ 64.0 million term loan and up to a $ 25.0 million line of credit . finally , on january 31 , 2018 , we acquired dsi for approximately $ 68.0 million , net of cash acquired . as of december 31 , 2019 , we held cash and cash equivalents of $ 8.3 million , compared with $ 8.2 million at december 31 , 2018. as of december 31 , 2019 and december 31 , 2018 , we had $ 55.0 million and $ 62.4 million of borrowings outstanding under our credit facility , respectively . total debt , net of cash and cash equivalents was $ 46.7 million at december 31 , 2019 , compared to $ 54.2 million at december 31 , 2018. in addition , we have a united kingdom pension obligation that was overfunded ( underfunded ) by approximately $ 1.1 million and $ ( 0.9 ) million as of december 31 , 2019 and december 31 , 2018 , respectively . as of december 31 , 2019 and december 31 , 2018 , cash and cash equivalents held by our foreign subsidiaries was $ 3.5 million and $ 3.2 million , respectively .
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Suspicious Activity Report : sales prices of these products range from under $ 100 to over $ 100,000 , although are mostly priced in the range of $ 5,000 to $ 15,000. they are mainly scientific instruments like spectrophotometers and plate readers that analyze light to detect and quantify a wide range of molecular and cellular processes , or apparatus like gel electrophoresis units . our products and services also include wireless monitors , data acquisition and analysis products and software , and ancillary services including post-contract customer support , training and installation . we use distributors for both our catalog products and our higher priced products , as well as for sales in locations where we do not have subsidiaries or where we have existing distributors in place from acquired businesses . for the years ended december 31 , 2019 and 2018 , approximately 30 % and 41 % of our total revenues from continuing operations , respectively , were derived from sales to distributors . for the years ended december 31 , 2019 and 2018 , approximately 84 % and 85 % of our revenues from continuing operations , respectively , were derived from products we manufacture and approximately 16 % and 15 % , respectively , were derived from complementary products we distribute in order to provide the researcher with a single source for all equipment needed to conduct a particular experiment . for the years ended december 31 , 2019 and 2018 , approximately 29 % and 30 % of our revenues from continuing operations , respectively , were derived from sales made by our non-united states operations . cost of revenues . cost of revenues includes material , labor and manufacturing overhead costs , obsolescence charges , packaging costs , warranty costs , shipping costs and royalties . our cost of revenues may vary over time based on the mix of products sold . we sell products that we manufacture and products that we purchase from third parties . the products that we purchase from third parties typically have a higher cost of revenues as a percent of revenues because the profit is effectively shared with the original manufacturer . we anticipate that our manufactured products will continue to have a lower cost of revenues as a percentage of revenues as compared with the cost of non-manufactured products for the foreseeable future . additionally , our cost of revenues as a percent of revenues will vary based on mix of direct to end user sales and distributor sales , mix by product line and mix by geography . 21 sales and marketing expenses . sales and marketing expense consists primarily of salaries and related expenses for personnel in sales , marketing and customer support functions . we also incur costs for travel , trade shows , demonstration equipment , public relations and marketing materials , consisting primarily of the printing and distribution of catalogs , supplements and the maintenance of our websites . we may from time to time expand our marketing efforts by employing additional technical marketing specialists in an effort to increase sales of selected categories of products . we may also from time to time expand our direct sales organizations in an effort to concentrate on key accounts or promote certain product lines . general and administrative expenses . general and administrative expense consists primarily of salaries and other related costs for personnel in executive , finance , accounting , information technology and human resource functions . other costs include professional fees for legal and accounting services , information technology infrastructure , facility costs , investor relations , insurance and provision for doubtful accounts . research and development expenses . research and development expenses consists primarily of salaries and related expenses for personnel and spending to develop and enhance our products . other research and development expenses include fees for consultants and outside service providers , and material costs for prototype and test units . we expense research and development costs as incurred . grants received from governmental entities related to research projects are accounted for as a reduction in research and development expense over the period of the project . we believe that investment in product development is a competitive necessity and plan to continue to make these investments in order to realize the potential of new technologies that we develop , license or acquire for existing markets . selected results of operations year ended december 31 , 2019 compared to year ended december 31 , 2018 unless otherwise described , the amounts and percentages in the table above and those amounts and percentages discussed below exclude the revenues and expenses of denville . revenues revenues for the year ended december 31 , 2019 were $ 116.2 million , a decrease of ( 3.8 ) % , or $ 4.6 million , compared to revenues of $ 120.8 million for the same period in 2018. the decrease in revenue for the year ended december 31 , 2019 is due to lower sales volume in europe as well as lower volume with contract research organizations due to customer consolidation . these reductions were partially offset by growth in sales of cellular and molecular discovery technologies in north america . additionally , revenues for the year ended december 31 , 2019 included twelve months of revenues from dsi as compared to eleven months of revenues from dsi included in the year ended december 31 , 2018. the impact of currency translation negatively impacted revenues in the year ended december 31 , 2019 by approximately $ 1.8 million . story_separator_special_tag factors we consider important which could trigger an impairment review include the following : significant underperformance relative to expected historical or projected future operating results ; significant changes in the manner of our use of the acquired assets or the strategy for our overall business ; significant negative industry or economic trends ; significant changes in who our competitors are and what they do ; significant changes in our relationship with our distributors ; significant decline in our stock price for a sustained period ; and our market capitalization relative to net book value . if we were to determine that the value of long-lived assets and identifiable intangible assets with finite lives was not recoverable based on the existence of one or more of the aforementioned factors , then the recoverability of those assets to be held and used would be measured by a comparison of the carrying amount of those assets to undiscounted future net cash flows before tax effects expected to be generated by those assets . if such assets are considered to be impaired , the impairment to be recognized would be measured by the amount by which the carrying value of the assets exceeds the fair value of the assets . goodwill and other intangible assets . fasb asc 350 , “ intangibles-goodwill and others ” addresses financial accounting and reporting for acquired goodwill and other intangible assets . among other things , fasb asc 350 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized , but rather tested annually for impairment or more frequently if events or circumstances indicate that there may be impairment . goodwill is also subject to an annual impairment test , or more frequently , if indicators of potential impairment arise . asu 2011-08 intends to simplify goodwill impairment testing by permitting an assessment of qualitative factors to determine when events and circumstances lead to the conclusion that it is necessary to perform the two-step goodwill impairment test required under asc 350. the two-step goodwill impairment test consists of a comparison of the fair value of our reporting units with their carrying amount . if the carrying amount exceeds its fair value , we are required to perform the second step of the impairment test , as this is an indication that goodwill may be impaired . the impairment loss is measured by comparing the implied fair value of the reporting unit 's goodwill with its carrying amount . if the carrying amount exceeds the implied fair value , an impairment loss shall be recognized in an amount equal to the excess . after an impairment loss is recognized , the adjusted carrying amount of the intangible asset shall be its new accounting basis . subsequent reversal of a previously recognized impairment loss is prohibited . for unamortizable intangible assets , if the carrying amount were to exceed the fair value of the asset , we would write down the unamortizable intangible asset to fair value . for the purpose of our goodwill analysis , we have one reporting unit . we conducted our annual impairment analysis using the income approach , the discounted cash flow method , to derive the fair value in preparing its goodwill impairment assessment . we selected this method as being the most meaningful in preparing the goodwill assessment because the use of the income approach typically generates a more precise measurement of fair value than the market approach . in applying the income approach , we made assumptions about the amount and timing of future expected cash flows , terminal value growth rates and appropriate discount rates . the amount and timing of future cash flows within our discounted cash flow analysis is based on our most recent operational budgets , long range strategic plans and other estimates . the terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in the discounted cash flow analysis and reflects our best estimates for stable , perpetual growth . we used an estimate of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rate to apply to the future expected cash flows . the results of our test for goodwill impairment showed that the estimated fair value of our business substantially exceeded its carrying value . we concluded that none of our goodwill was impaired . during the year ended december 31 , 2019 we recorded impairment charges against our intangible assets of approximately $ 1.5 million . see note 6 in the consolidated financial statements included in part iv , item 15. of this report “ exhibits , financial statement schedules ” for further discussion regarding impairment charges . stock-based compensation . we account for stock-based payment awards in accordance with the provisions of fasb asc 718 , “ compensation—stock compensation ” , which requires us to recognize compensation expense for all stock-based payment awards made to employees and directors including stock options , restricted stock units and restricted stock units with a market condition related to our third amended and restated 2000 stock option and incentive plan , as well as employee stock purchases related to our employee stock purchase plan ( as amended , espp ) . we issue new shares upon stock option exercises , upon the vesting of restricted stock units and restricted stock units with a market condition , and under our espp . fasb asc 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model . the value of the award that vests is recognized as expense over the requisite service periods in our consolidated statement of operations . we account for forfeitures for service-based awards as they occur , with no adjustment for estimated forfeitures . 28 we value stock-based payment awards , except restricted stock awards , at the grant date using the black-scholes option-pricing model .
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1,096 | 27 2017 financial highlights revenues were $ 1,023.5 million for the year ended december 31 , 2017 , a 1.2 % decrease compared to the year ended december 31 , 2016. the decrease in 2017 revenues compared to 2016 revenues was due to the net effects of : ( i ) higher sales volumes , despite a net reduction of 111 company-operated retail stores , which increased revenues by $ 39.6 million , or 3.8 % ; ( ii ) lower average selling prices as our product and channel mix continued to change , which decreased revenues by $ 57.2 million , or 5.5 % ; and ( iii ) favorable changes in exchange rates , which increased revenues by $ 4.8 million , or 0.5 % . the following were significant developments in our businesses during the year ended december 31 , 2017 : we sold 57.9 million pairs of shoes worldwide , an increase of 3.1 % from 56.1 million pairs in 2016 . gross margin improved 220 basis points compared to 2016 to 50.5 % for the year ended december 31 , 2017 . we drove this improvement by continuing to prioritize high margin molded product , improving our go to market capabilities , and better managing promotions . sg & a was $ 494.6 million , a decrease of $ 8.6 million , or 1.7 % , compared to 2016 . this includes the effects of $ 17.0 million in non-recurring charges and approximately $ 10 million of incremental costs related to variable compensation in 2017. income from operations improved by $ 23.5 million , after incurring approximately $ 17.0 million in non-recurring charges , for the year ended december 31 , 2017 compared to last year 's loss of $ 6.2 million . net loss attributable to common stockholders improved $ 26.4 million to a loss of $ 5.3 million compared to a loss of $ 31.7 million in 2016 . basic and diluted net loss per common share was $ 0.07 for the year ended december 31 , 2017 , compared to a loss of $ 0.43 per common share for the year ended december 31 , 2016 . we continued to focus on improving the efficiency and effectiveness of our operations , including carefully managing and reducing our retail fleet , especially full-priced retail stores , and focusing on enhancing the profitability of this channel . during the year ended december 31 , 2017 , we opened a total of 19 stores and closed or transferred to distributors 130 stores for a net reduction of 111 company-operated retail stores . we continued to focus on simplifying our product line and disciplined inventory management to allow investment in higher margin , faster-turning product and reduced our inventory by $ 16.7 million , or 11.3 % , from $ 147.0 million to $ 130.3 million . during 2017 , we repurchased 5.7 million shares of common stock at an aggregate cost of $ 50.0 million . future outlook we intend to continue our strategic plans for long-term improvement and growth of the business , which comprise these key initiatives : ( 1 ) simplifying our business to reduce costs , ( 2 ) improving the quality of our revenues , and ( 3 ) positioning ourselves to return to sustainable , profitable growth . we believe these initiatives will better position crocs to adapt to changing customer demands and global economic developments . we are focusing on our core molded footwear heritage by narrowing our product line with an emphasis on higher margin units , as well as developing innovative new casual lifestyle footwear platforms . by streamlining the product portfolio and reducing non-core product development , we believe we will create a more powerful consumer connection to the brand . we are refining our business model around the world , prioritizing direct investment in larger-scale geographies to focus our resources on the demographics with the largest growth prospects , moving away from direct investment in retail and wholesale businesses in smaller markets , and transferring significant commercial responsibilities to distributors and other third-parties . further , we intend to expand our engagement with leading wholesale accounts in select markets to drive sales growth , optimize product placement , and enhance brand reputation . 28 results of operations comparison of the years ended december 31 , 2017 , 2016 , and 2015 replace_table_token_6_th ( 1 ) changes for gross margin and operating margin are shown in basis points ( “ bp ” ) . revenues . revenues decrease d $ 12.8 million , or 1.2 % , during the year ended december 31 , 2017 , compared to the same period in 2016. the revenues decreased primarily due to the sale of our taiwan business in the fourth quarter of 2016 , the sale of our middle east business in the second quarter of 2017 , reductions in the number of company-operated retail stores , and additional actions taken to optimize our wholesale , retail , and e-commerce channels . the revenue decline associated with store closures and transfers was approximately $ 39.1 million . higher sales volumes increased revenues by $ 39.6 million , or 3.8 % , offset by lower average footwear selling prices , which decreased revenues by approximately $ 57.2 million , or 5.5 % , as our product and channel mix continued to change . favorable exchange rate activity drove an increase of $ 4.8 million , or 0.5 % . story_separator_special_tag during the year ended december 31 , 2017 , revenues from our e-commerce channel increased $ 18.5 million , or 14.2 % , compared to the year ended december 31 , 2016 . we invested in marketing with an enhanced digital 33 focus , and we continued to grow our e-commerce team and work toward global adoption of best practices . revenues increased by approximately $ 30.6 million , or 23.4 % , due to higher sales volumes , partially offset by decreases of $ 11.8 million , or 9.0 % , due to lower average selling prices and $ 0.3 million , or 0.2 % , due to the unfavorable impact of foreign currency translation . during the year ended december 31 , 2016 , revenues from our e-commerce channel increased $ 9.5 million , or 7.9 % , compared to the same period in 2015 . the increase in e-commerce revenues was due to the net impact of : ( i ) a $ 30.2 million , or 24.9 % , increase in sales volumes ( primarily due to increased sales volumes in the americas and asia pacific segments ) , ( ii ) a $ 20.0 million , or 16.4 % , decrease due to a lower average selling price , and ( iii ) a $ 0.7 million , or 0.6 % , decrease due to the unfavorable impact of foreign currency translation . reportable operating segments the following table sets forth information related to our reportable operating business segments for the years ended december 31 , 2017 , 2016 , and 2015 : replace_table_token_9_th ( 1 ) reflects year over year change as if the current period results were in “ constant currency , ” which is a non-gaap financial measure . see “ use of non-gaap financial measures ” for more information . ( 2 ) revenues for the year ended december 31 , 2016 were negatively impacted by approximately $ 8.4 million as a result of the sale of our south africa operations , which was completed on april 15 , 2016 . 34 americas operating segment revenues . during the year ended december 31 , 2017 , revenues for our americas segment increased $ 13.1 million , or 2.8 % , compared to the year ended december 31 , 2016 . the increase in revenues was led by a 10.3 % increase in e-commerce revenues , while a modest increase in wholesale revenues was partially offset by a decrease in retail revenues , reflecting 15 fewer company-operated retail stores compared to last year . higher sales volumes resulted in an increase of approximately $ 17.0 million , or 3.7 % , while lower average selling prices resulted in a decrease of $ 5.5 million , or 1.2 % , and foreign currency translation resulted in an increase of $ 1.6 million , or 0.3 % . during the year ended december 31 , 2016 , revenues for our americas segment decreased $ 9.2 million , or 1.9 % , compared to the same period in 2015. the decrease in the americas segment revenues was due to the net impact of : ( i ) a $ 13.6 million , or 2.9 % , decrease related to lower sales volumes , ( ii ) an $ 8.0 million , or 1.7 % , increase related to an increase in the average selling price , and ( iii ) a $ 3.6 million , or 0.7 % , decrease due to the unfavorable impact of foreign currency translation . income from operations . during the year ended december 31 , 2017 , income from operations for our americas segment was $ 86.9 million , an increase of $ 28.0 million , or 47.6 % . gross profit increased $ 21.4 million , or 9.5 % , and gross margin increased 310 basis points to 51.4 % , compared to the year ended december 31 , 2016 . the increase in gross profit is due to the net impact of an increase of $ 10.3 million , or 4.6 % , due to higher sales volumes , despite a net reduction of 15 company-operated retail locations , an increase of $ 10.9 million , or 4.8 % , due to a decrease in our average cost per unit which exceeded a decrease in average selling price per unit , and an increase of $ 0.2 million , or 0.1 % , from foreign currency translation . during the year ended december 31 , 2017 , sg & a for our americas segment decreased $ 5.3 million , or 3.2 % , compared to the same period in 2016 . the decrease in sg & a was primarily due to the net impact of a decrease of $ 3.1 million in facilities expenses as a result of reductions in the number of company-operated retail stores and our sg & a reduction efforts , and a net decrease of $ 2.2 million in services , information technology , and other expenses . impairment expense related to company-operated retail stores decreased by $ 1.3 million compared to 2016. during the year ended december 31 , 2016 , income from operations for our americas segment was $ 58.8 million , an increase of $ 9.4 million , or 19.1 % . gross profit increased $ 1.0 million , or 0.4 % , and gross margin increased 120 basis points to 48.3 % compared to the same period in 2015. the increase in the americas segment gross profit is due to the net impact of a $ 6.4 million , or 2.9 % , decrease due to lower sales volumes , a $ 9.3 million , or 4.2 % , increase due to the combined impact of a higher average selling price and a lower average cost of sales per unit , and a $ 1.9 million , or 0.9 % , decrease due to the impact of foreign currency
| liquidity and capital resources we anticipate our cash flows from operations and available borrowings under our senior revolving credit facility ( as described below ) will be sufficient to meet the ongoing liquidity needs of our business for the next twelve months . as of december 31 , 2017 , we had $ 172.1 million in cash and cash equivalents and up to $ 99.4 million in available borrowings under our revolving credit facility . as of december 31 , 2016 , we had $ 147.6 million in cash and cash equivalents and up to $ 78.7 million in available borrowings under our revolving credit facility . at december 31 , 2017 , $ 124.4 million of our cash and cash equivalents was held in international locations , compared to $ 121.9 million at december 31 , 2016 . see “ repatriation of cash ” below for more information . we believe our cash on hand and cash flows from operations will be sufficient to meet our liquidity needs for at least the next 12 months . additional future financing may be necessary to fund our operations and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all . consolidated statements of cash flows our consolidated statements of cash flows are summarized as follows : replace_table_token_13_th year ended december 31 , 2017 operating activities . cash provided by operating activities increased $ 58.5 million for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 . the increase in cash provided by operating activities resulted from a favorable change in net income as adjusted for non-cash items of $ 27.6 million , and a favorable change in our operating assets and liabilities of $ 30.9 million .
| 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. |
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 we anticipate our cash flows from operations and available borrowings under our senior revolving credit facility ( as described below ) will be sufficient to meet the ongoing liquidity needs of our business for the next twelve months . as of december 31 , 2017 , we had $ 172.1 million in cash and cash equivalents and up to $ 99.4 million in available borrowings under our revolving credit facility . as of december 31 , 2016 , we had $ 147.6 million in cash and cash equivalents and up to $ 78.7 million in available borrowings under our revolving credit facility . at december 31 , 2017 , $ 124.4 million of our cash and cash equivalents was held in international locations , compared to $ 121.9 million at december 31 , 2016 . see “ repatriation of cash ” below for more information . we believe our cash on hand and cash flows from operations will be sufficient to meet our liquidity needs for at least the next 12 months . additional future financing may be necessary to fund our operations and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all . consolidated statements of cash flows our consolidated statements of cash flows are summarized as follows : replace_table_token_13_th year ended december 31 , 2017 operating activities . cash provided by operating activities increased $ 58.5 million for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 . the increase in cash provided by operating activities resulted from a favorable change in net income as adjusted for non-cash items of $ 27.6 million , and a favorable change in our operating assets and liabilities of $ 30.9 million .
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Suspicious Activity Report : 27 2017 financial highlights revenues were $ 1,023.5 million for the year ended december 31 , 2017 , a 1.2 % decrease compared to the year ended december 31 , 2016. the decrease in 2017 revenues compared to 2016 revenues was due to the net effects of : ( i ) higher sales volumes , despite a net reduction of 111 company-operated retail stores , which increased revenues by $ 39.6 million , or 3.8 % ; ( ii ) lower average selling prices as our product and channel mix continued to change , which decreased revenues by $ 57.2 million , or 5.5 % ; and ( iii ) favorable changes in exchange rates , which increased revenues by $ 4.8 million , or 0.5 % . the following were significant developments in our businesses during the year ended december 31 , 2017 : we sold 57.9 million pairs of shoes worldwide , an increase of 3.1 % from 56.1 million pairs in 2016 . gross margin improved 220 basis points compared to 2016 to 50.5 % for the year ended december 31 , 2017 . we drove this improvement by continuing to prioritize high margin molded product , improving our go to market capabilities , and better managing promotions . sg & a was $ 494.6 million , a decrease of $ 8.6 million , or 1.7 % , compared to 2016 . this includes the effects of $ 17.0 million in non-recurring charges and approximately $ 10 million of incremental costs related to variable compensation in 2017. income from operations improved by $ 23.5 million , after incurring approximately $ 17.0 million in non-recurring charges , for the year ended december 31 , 2017 compared to last year 's loss of $ 6.2 million . net loss attributable to common stockholders improved $ 26.4 million to a loss of $ 5.3 million compared to a loss of $ 31.7 million in 2016 . basic and diluted net loss per common share was $ 0.07 for the year ended december 31 , 2017 , compared to a loss of $ 0.43 per common share for the year ended december 31 , 2016 . we continued to focus on improving the efficiency and effectiveness of our operations , including carefully managing and reducing our retail fleet , especially full-priced retail stores , and focusing on enhancing the profitability of this channel . during the year ended december 31 , 2017 , we opened a total of 19 stores and closed or transferred to distributors 130 stores for a net reduction of 111 company-operated retail stores . we continued to focus on simplifying our product line and disciplined inventory management to allow investment in higher margin , faster-turning product and reduced our inventory by $ 16.7 million , or 11.3 % , from $ 147.0 million to $ 130.3 million . during 2017 , we repurchased 5.7 million shares of common stock at an aggregate cost of $ 50.0 million . future outlook we intend to continue our strategic plans for long-term improvement and growth of the business , which comprise these key initiatives : ( 1 ) simplifying our business to reduce costs , ( 2 ) improving the quality of our revenues , and ( 3 ) positioning ourselves to return to sustainable , profitable growth . we believe these initiatives will better position crocs to adapt to changing customer demands and global economic developments . we are focusing on our core molded footwear heritage by narrowing our product line with an emphasis on higher margin units , as well as developing innovative new casual lifestyle footwear platforms . by streamlining the product portfolio and reducing non-core product development , we believe we will create a more powerful consumer connection to the brand . we are refining our business model around the world , prioritizing direct investment in larger-scale geographies to focus our resources on the demographics with the largest growth prospects , moving away from direct investment in retail and wholesale businesses in smaller markets , and transferring significant commercial responsibilities to distributors and other third-parties . further , we intend to expand our engagement with leading wholesale accounts in select markets to drive sales growth , optimize product placement , and enhance brand reputation . 28 results of operations comparison of the years ended december 31 , 2017 , 2016 , and 2015 replace_table_token_6_th ( 1 ) changes for gross margin and operating margin are shown in basis points ( “ bp ” ) . revenues . revenues decrease d $ 12.8 million , or 1.2 % , during the year ended december 31 , 2017 , compared to the same period in 2016. the revenues decreased primarily due to the sale of our taiwan business in the fourth quarter of 2016 , the sale of our middle east business in the second quarter of 2017 , reductions in the number of company-operated retail stores , and additional actions taken to optimize our wholesale , retail , and e-commerce channels . the revenue decline associated with store closures and transfers was approximately $ 39.1 million . higher sales volumes increased revenues by $ 39.6 million , or 3.8 % , offset by lower average footwear selling prices , which decreased revenues by approximately $ 57.2 million , or 5.5 % , as our product and channel mix continued to change . favorable exchange rate activity drove an increase of $ 4.8 million , or 0.5 % . story_separator_special_tag during the year ended december 31 , 2017 , revenues from our e-commerce channel increased $ 18.5 million , or 14.2 % , compared to the year ended december 31 , 2016 . we invested in marketing with an enhanced digital 33 focus , and we continued to grow our e-commerce team and work toward global adoption of best practices . revenues increased by approximately $ 30.6 million , or 23.4 % , due to higher sales volumes , partially offset by decreases of $ 11.8 million , or 9.0 % , due to lower average selling prices and $ 0.3 million , or 0.2 % , due to the unfavorable impact of foreign currency translation . during the year ended december 31 , 2016 , revenues from our e-commerce channel increased $ 9.5 million , or 7.9 % , compared to the same period in 2015 . the increase in e-commerce revenues was due to the net impact of : ( i ) a $ 30.2 million , or 24.9 % , increase in sales volumes ( primarily due to increased sales volumes in the americas and asia pacific segments ) , ( ii ) a $ 20.0 million , or 16.4 % , decrease due to a lower average selling price , and ( iii ) a $ 0.7 million , or 0.6 % , decrease due to the unfavorable impact of foreign currency translation . reportable operating segments the following table sets forth information related to our reportable operating business segments for the years ended december 31 , 2017 , 2016 , and 2015 : replace_table_token_9_th ( 1 ) reflects year over year change as if the current period results were in “ constant currency , ” which is a non-gaap financial measure . see “ use of non-gaap financial measures ” for more information . ( 2 ) revenues for the year ended december 31 , 2016 were negatively impacted by approximately $ 8.4 million as a result of the sale of our south africa operations , which was completed on april 15 , 2016 . 34 americas operating segment revenues . during the year ended december 31 , 2017 , revenues for our americas segment increased $ 13.1 million , or 2.8 % , compared to the year ended december 31 , 2016 . the increase in revenues was led by a 10.3 % increase in e-commerce revenues , while a modest increase in wholesale revenues was partially offset by a decrease in retail revenues , reflecting 15 fewer company-operated retail stores compared to last year . higher sales volumes resulted in an increase of approximately $ 17.0 million , or 3.7 % , while lower average selling prices resulted in a decrease of $ 5.5 million , or 1.2 % , and foreign currency translation resulted in an increase of $ 1.6 million , or 0.3 % . during the year ended december 31 , 2016 , revenues for our americas segment decreased $ 9.2 million , or 1.9 % , compared to the same period in 2015. the decrease in the americas segment revenues was due to the net impact of : ( i ) a $ 13.6 million , or 2.9 % , decrease related to lower sales volumes , ( ii ) an $ 8.0 million , or 1.7 % , increase related to an increase in the average selling price , and ( iii ) a $ 3.6 million , or 0.7 % , decrease due to the unfavorable impact of foreign currency translation . income from operations . during the year ended december 31 , 2017 , income from operations for our americas segment was $ 86.9 million , an increase of $ 28.0 million , or 47.6 % . gross profit increased $ 21.4 million , or 9.5 % , and gross margin increased 310 basis points to 51.4 % , compared to the year ended december 31 , 2016 . the increase in gross profit is due to the net impact of an increase of $ 10.3 million , or 4.6 % , due to higher sales volumes , despite a net reduction of 15 company-operated retail locations , an increase of $ 10.9 million , or 4.8 % , due to a decrease in our average cost per unit which exceeded a decrease in average selling price per unit , and an increase of $ 0.2 million , or 0.1 % , from foreign currency translation . during the year ended december 31 , 2017 , sg & a for our americas segment decreased $ 5.3 million , or 3.2 % , compared to the same period in 2016 . the decrease in sg & a was primarily due to the net impact of a decrease of $ 3.1 million in facilities expenses as a result of reductions in the number of company-operated retail stores and our sg & a reduction efforts , and a net decrease of $ 2.2 million in services , information technology , and other expenses . impairment expense related to company-operated retail stores decreased by $ 1.3 million compared to 2016. during the year ended december 31 , 2016 , income from operations for our americas segment was $ 58.8 million , an increase of $ 9.4 million , or 19.1 % . gross profit increased $ 1.0 million , or 0.4 % , and gross margin increased 120 basis points to 48.3 % compared to the same period in 2015. the increase in the americas segment gross profit is due to the net impact of a $ 6.4 million , or 2.9 % , decrease due to lower sales volumes , a $ 9.3 million , or 4.2 % , increase due to the combined impact of a higher average selling price and a lower average cost of sales per unit , and a $ 1.9 million , or 0.9 % , decrease due to the impact of foreign currency
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1,097 | we seek to maximize the fair value of the distressed mortgage loans that we acquired using means that are appropriate for the particular loan , including both proprietary and nonproprietary loan modification programs , special servicing and other initiatives focused on avoiding foreclosure , when possible . when we are unable to effect a cure for a mortgage loan delinquency , our objective is timely acquisition and or liquidation of the property securing the mortgage loan through the use , in part , of short sales and deed-in-lieu-of-foreclosure programs . we may elect to hold certain real estate acquired in settlement of loans ( “ reo ” ) as income-producing properties for extended periods as a means of maximizing our returns on such properties . in addition to individual loan and property resolutions , we consider bulk sale opportunities from our existing distressed portfolio investments . during the year ended december 31 , 2016 , we completed bulk sales totaling $ 483.8 million in fair value of distressed mortgage loans . during the year ended december 31 , 2016 , we did not acquire distressed mortgage loans and we received proceeds from liquidation , payoffs , paydowns and sales from our portfolio of distressed mortgage loans and reo totaling $ 947.7 million . we also participate in other mortgage-related activities , including : acquisition of reit-eligible mortgage-backed or mortgage-related securities . we held mbs with fair values totaling $ 865.1 million at december 31 , 2016. acquisition of ess relating to msrs held by pfsi . during the year ended december 31 , 2016 , we did not purchase any ess from pfsi . pursuant to a recapture agreement with pls we received ess with fair value totaling $ 6.6 million . we sold $ 59.0 million of ess relating to freddie mac and fannie mae msrs back to pls . we held ess with a fair value totaling $ 288.7 million at december 31 , 2016. acquisition of small balance ( typically under $ 10 million ) commercial real estate loans . during the year ended december 31 , 2016 , we acquired $ 18.1 million in fair value of small balance commercial real estate loans . at december 31 , 2016 , we held $ 9.0 million at fair value of such mortgage loans . 46 to the extent that we transfer correspondent production loans into private label securitizations , retention of a portion of the securities created in the securitization transaction . our private label securitization is accounted for as a financing arrangement . sales of securities included in the securitization are treated as issuances of debt . our board of trustees has authorized a repurchase program under which we may repurchase up to $ 200 million of our outstanding common shares . during the year ended december 31 , 2016 , we repurchased approximately 7.4 million common shares at a cost of $ 98.4 million . we have repurchased a cumulative total of 8.4 million common shares at a cost of $ 114.7 million under the program . the repurchased common shares were canceled upon settlement of the repurchase transactions and returned to the authorized but unissued share pool . we believe that we qualify to be taxed as a reit and as such will not be subject to federal income tax on that portion of our income that is distributed to shareholders as long as we meet applicable reit asset , income and share ownership tests . if we fail to qualify as a reit , and do not qualify for certain statutory relief provisions , our profits will be subject to income taxes and we may be precluded from qualifying as a reit for the four tax years following the year we lose our reit qualification . a portion of our activities , including our correspondent production business , is conducted in our trs , which is subject to corporate federal and state income taxes . accordingly , we have made a provision for income taxes with respect to the operations of our trs . we expect that the effective rate for the provision for income taxes may be volatile in future periods . our goal is to manage the business to take full advantage of the tax benefits afforded to us as a reit . observations on current market conditions our business is affected by macroeconomic conditions in the united states , including economic growth , unemployment rates , the residential housing market and interest rate levels and expectations . the u.s. economy continues to grow , albeit at a modest pace , as reflected in recent economic data . during 2016 , u.s. real gross domestic product expanded at an annual rate of 1.9 % , compared to 2.4 % for 2015. the national seasonally adjusted unemployment rate was 4.7 % at december 31 , 2016 , 5.0 % at december 31 , 2015 and 5.6 % at december 31 , 2014. delinquency rates on residential real estate loans remain somewhat elevated compared to historical rates , but have been steadily declining . as reported by the federal reserve bank , during the third quarter of 2016 , the delinquency rate on residential real estate loans held by commercial banks was 4.3 % , a reduction from 5.2 % during the fourth quarter of 2015. residential real estate activity remains strong . the seasonally adjusted annual rate of existing home sales for december 2016 was 1.5 % higher than for december 2015 , and the national median existing home price for all housing types was $ 233,500 , a 3.8 % increase from december 2015 ( source : national association of realtors® ) . on a national level , foreclosure filings during 2016 decreased by 14 % , as compared to 2015. however , foreclosure activity is expected to remain above historical average levels through 2017 and beyond . story_separator_special_tag if the fair value of impaired msrs subsequently increases , we recognize the increase in fair value in current period income and , through a reduction in the valuation allowance , adjust the carrying value of the msrs to a level not in excess of amortized cost . when evaluating msrs for impairment , we stratify the assets by predominant risk characteristic including loan type ( fixed-rate or adjustable-rate ) and note interest rate . we stratify fixed-rate mortgage loans into note interest rate pools of 50 basis points for note interest rates between 3.0 % and 4.5 % and a single pool for note interest rates below 3 % . we evaluate adjustable-rate mortgage loans with initial interest rates of 4.5 % or less in a single pool . we periodically review the various impairment strata to determine whether the fair value of the impaired msrs in a given stratum is likely to recover . when we conclude that recovery of the fair value is unlikely in the foreseeable future , a write-down of the cost of the msrs for that stratum to its estimated recoverable value is charged to the valuation allowance . amortization and impairment of msrs accounted for using the amortization method are included in current period income as a component of net mortgage loan servicing fees . msrs accounted for at fair value we include changes in fair value of msrs accounted for at fair value in current period income as a component of net mortgage loan servicing fees . 51 a shift in the market for msrs or a change in our manager 's assessment of an input to the valuation of msrs can have a significant effect on the fair value of msrs and in our income for the period . we believe the most significant “ level 3 ” fair value inputs to the valuation of msrs are the pricing spread ( discount rate ) , prepayment speed and annual per-loan cost of servicing . following is a summary of the effect on fair value of various changes to these key inputs that our manager uses in making its fair value estimates as of december 31 , 2016 : replace_table_token_9_th the preceding asset analyses hold constant all of the inputs other than the input that is being changed to show an estimate of the effect on fair value of a change in a specific input . we expect that in a market shock event , multiple inputs would be affected and the effects of these changes may compound or counteract each other . furthermore , certain of our msrs are accounted for using the amortization method and are carried at the lower of amortized cost or fair value . such assets ' carrying value may not be immediately affected as a result of a change in input values depending on the carrying value ( carrying value is the amortized cost reduced by the applicable valuation allowance ) of the msr asset before the change in input occurs and whether the input change causes our estimate of fair value to change to a level below the amortized cost of those msrs . therefore the preceding analyses are not projections of the effects of a shock event or a change in our manager 's estimate of an input and should not be relied upon as earnings projections . critical accounting policies not tied to fair value liability for representations and warranties we record a provision for losses relating to our representations and warranties as part of our mortgage loan sale transactions , which are generally to the agencies . the method we use to estimate the liability for representations and warranties is a function of the representations and warranties made to such investors and considers a combination of factors , including , but not limited to , estimated future default and mortgage loan repurchase rates , the potential severity of loss in the event of default and the probability of reimbursement by the mortgage originator who sold the mortgage loan to us . we establish a liability at the time we sell the mortgage loans to the investors and periodically update our liability estimate . the level of the liability for representations and warranties is difficult to estimate and requires considerable judgment . the level of mortgage loan repurchase losses is dependent on economic factors , investor behavior , and other external conditions that may change over the lives of the underlying mortgage loans . our estimate of the liability for representations and warranties is developed by our manager 's credit administration staff . the liability estimate is reviewed and approved by our manager 's senior management credit committee which includes its chief executive , credit , portfolio risk , mortgage operations , and mortgage banking officers . as economic fundamentals change , as investor and agency evaluations of their loss mitigation strategies ( including claims under representations and warranties ) change and as the mortgage market and general economic conditions affect our correspondent sellers , the level of repurchase activity and ensuing losses will change and such changes may be material to us . as a result of these changes , we have adjusted , and may in the future be required to adjust , the estimate of our liability for representations and warranties . such adjustments may be material to our financial condition and net income . consolidation-securitizations we enter into various types of on- and off-balance sheet transactions with special purpose entities ( “ spes ” ) , which are trusts that are established for a limited purpose . generally , spes are formed in connection with securitization transactions . in a securitization transaction , we transfer mortgage loans on our balance sheet to an spe , which then issues to investors various forms of interests in those assets . in a securitization transaction , we typically receive cash and or interests in an spe in exchange for the assets we
| cash flows our cash flows for the years ended december 31 , 2016 , 2015 and 2014 are summarized below : replace_table_token_54_th our cash flows resulted in a net decrease in cash of $ 23.6 million during 2016 , as discussed below . operating activities cash used by operating activities totaled $ 621.5 million during 2016 , as compared to cash used by operating activities of $ 863.2 million and $ 366.0 million during 2015 and 2014 , respectively . the decreased use of cash in our operating activities from 2015 to 2016 is primarily due to slower growth of our inventory of mortgage loans acquired for sale at december 31 , 2016 as compared to december 31 , 2015. likewise , the increased use of cash in our operating activities during 2015 as compared to 2014 is due to faster growth in our inventory of mortgage loans held for sale during 2015 as compared to 2014. investing activities net cash provided by our investing activities was $ 194.0 million during 2016 , as compared to cash provided by investing activities of $ 11.5 million during 2015. the increase in cash flows from investing activities reflects proceeds from sales and repayments on our investments , which exceeded our investments primarily consisting of crt agreements and mbs during 2016 , as compared to 2015. we realized cash inflows from repayments of mbs , sales and repayments of mortgage loans , repayment of ess , sales of reo and distributions from crt agreements totaling $ 1.3 billion .
| 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. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows our cash flows for the years ended december 31 , 2016 , 2015 and 2014 are summarized below : replace_table_token_54_th our cash flows resulted in a net decrease in cash of $ 23.6 million during 2016 , as discussed below . operating activities cash used by operating activities totaled $ 621.5 million during 2016 , as compared to cash used by operating activities of $ 863.2 million and $ 366.0 million during 2015 and 2014 , respectively . the decreased use of cash in our operating activities from 2015 to 2016 is primarily due to slower growth of our inventory of mortgage loans acquired for sale at december 31 , 2016 as compared to december 31 , 2015. likewise , the increased use of cash in our operating activities during 2015 as compared to 2014 is due to faster growth in our inventory of mortgage loans held for sale during 2015 as compared to 2014. investing activities net cash provided by our investing activities was $ 194.0 million during 2016 , as compared to cash provided by investing activities of $ 11.5 million during 2015. the increase in cash flows from investing activities reflects proceeds from sales and repayments on our investments , which exceeded our investments primarily consisting of crt agreements and mbs during 2016 , as compared to 2015. we realized cash inflows from repayments of mbs , sales and repayments of mortgage loans , repayment of ess , sales of reo and distributions from crt agreements totaling $ 1.3 billion .
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Suspicious Activity Report : we seek to maximize the fair value of the distressed mortgage loans that we acquired using means that are appropriate for the particular loan , including both proprietary and nonproprietary loan modification programs , special servicing and other initiatives focused on avoiding foreclosure , when possible . when we are unable to effect a cure for a mortgage loan delinquency , our objective is timely acquisition and or liquidation of the property securing the mortgage loan through the use , in part , of short sales and deed-in-lieu-of-foreclosure programs . we may elect to hold certain real estate acquired in settlement of loans ( “ reo ” ) as income-producing properties for extended periods as a means of maximizing our returns on such properties . in addition to individual loan and property resolutions , we consider bulk sale opportunities from our existing distressed portfolio investments . during the year ended december 31 , 2016 , we completed bulk sales totaling $ 483.8 million in fair value of distressed mortgage loans . during the year ended december 31 , 2016 , we did not acquire distressed mortgage loans and we received proceeds from liquidation , payoffs , paydowns and sales from our portfolio of distressed mortgage loans and reo totaling $ 947.7 million . we also participate in other mortgage-related activities , including : acquisition of reit-eligible mortgage-backed or mortgage-related securities . we held mbs with fair values totaling $ 865.1 million at december 31 , 2016. acquisition of ess relating to msrs held by pfsi . during the year ended december 31 , 2016 , we did not purchase any ess from pfsi . pursuant to a recapture agreement with pls we received ess with fair value totaling $ 6.6 million . we sold $ 59.0 million of ess relating to freddie mac and fannie mae msrs back to pls . we held ess with a fair value totaling $ 288.7 million at december 31 , 2016. acquisition of small balance ( typically under $ 10 million ) commercial real estate loans . during the year ended december 31 , 2016 , we acquired $ 18.1 million in fair value of small balance commercial real estate loans . at december 31 , 2016 , we held $ 9.0 million at fair value of such mortgage loans . 46 to the extent that we transfer correspondent production loans into private label securitizations , retention of a portion of the securities created in the securitization transaction . our private label securitization is accounted for as a financing arrangement . sales of securities included in the securitization are treated as issuances of debt . our board of trustees has authorized a repurchase program under which we may repurchase up to $ 200 million of our outstanding common shares . during the year ended december 31 , 2016 , we repurchased approximately 7.4 million common shares at a cost of $ 98.4 million . we have repurchased a cumulative total of 8.4 million common shares at a cost of $ 114.7 million under the program . the repurchased common shares were canceled upon settlement of the repurchase transactions and returned to the authorized but unissued share pool . we believe that we qualify to be taxed as a reit and as such will not be subject to federal income tax on that portion of our income that is distributed to shareholders as long as we meet applicable reit asset , income and share ownership tests . if we fail to qualify as a reit , and do not qualify for certain statutory relief provisions , our profits will be subject to income taxes and we may be precluded from qualifying as a reit for the four tax years following the year we lose our reit qualification . a portion of our activities , including our correspondent production business , is conducted in our trs , which is subject to corporate federal and state income taxes . accordingly , we have made a provision for income taxes with respect to the operations of our trs . we expect that the effective rate for the provision for income taxes may be volatile in future periods . our goal is to manage the business to take full advantage of the tax benefits afforded to us as a reit . observations on current market conditions our business is affected by macroeconomic conditions in the united states , including economic growth , unemployment rates , the residential housing market and interest rate levels and expectations . the u.s. economy continues to grow , albeit at a modest pace , as reflected in recent economic data . during 2016 , u.s. real gross domestic product expanded at an annual rate of 1.9 % , compared to 2.4 % for 2015. the national seasonally adjusted unemployment rate was 4.7 % at december 31 , 2016 , 5.0 % at december 31 , 2015 and 5.6 % at december 31 , 2014. delinquency rates on residential real estate loans remain somewhat elevated compared to historical rates , but have been steadily declining . as reported by the federal reserve bank , during the third quarter of 2016 , the delinquency rate on residential real estate loans held by commercial banks was 4.3 % , a reduction from 5.2 % during the fourth quarter of 2015. residential real estate activity remains strong . the seasonally adjusted annual rate of existing home sales for december 2016 was 1.5 % higher than for december 2015 , and the national median existing home price for all housing types was $ 233,500 , a 3.8 % increase from december 2015 ( source : national association of realtors® ) . on a national level , foreclosure filings during 2016 decreased by 14 % , as compared to 2015. however , foreclosure activity is expected to remain above historical average levels through 2017 and beyond . story_separator_special_tag if the fair value of impaired msrs subsequently increases , we recognize the increase in fair value in current period income and , through a reduction in the valuation allowance , adjust the carrying value of the msrs to a level not in excess of amortized cost . when evaluating msrs for impairment , we stratify the assets by predominant risk characteristic including loan type ( fixed-rate or adjustable-rate ) and note interest rate . we stratify fixed-rate mortgage loans into note interest rate pools of 50 basis points for note interest rates between 3.0 % and 4.5 % and a single pool for note interest rates below 3 % . we evaluate adjustable-rate mortgage loans with initial interest rates of 4.5 % or less in a single pool . we periodically review the various impairment strata to determine whether the fair value of the impaired msrs in a given stratum is likely to recover . when we conclude that recovery of the fair value is unlikely in the foreseeable future , a write-down of the cost of the msrs for that stratum to its estimated recoverable value is charged to the valuation allowance . amortization and impairment of msrs accounted for using the amortization method are included in current period income as a component of net mortgage loan servicing fees . msrs accounted for at fair value we include changes in fair value of msrs accounted for at fair value in current period income as a component of net mortgage loan servicing fees . 51 a shift in the market for msrs or a change in our manager 's assessment of an input to the valuation of msrs can have a significant effect on the fair value of msrs and in our income for the period . we believe the most significant “ level 3 ” fair value inputs to the valuation of msrs are the pricing spread ( discount rate ) , prepayment speed and annual per-loan cost of servicing . following is a summary of the effect on fair value of various changes to these key inputs that our manager uses in making its fair value estimates as of december 31 , 2016 : replace_table_token_9_th the preceding asset analyses hold constant all of the inputs other than the input that is being changed to show an estimate of the effect on fair value of a change in a specific input . we expect that in a market shock event , multiple inputs would be affected and the effects of these changes may compound or counteract each other . furthermore , certain of our msrs are accounted for using the amortization method and are carried at the lower of amortized cost or fair value . such assets ' carrying value may not be immediately affected as a result of a change in input values depending on the carrying value ( carrying value is the amortized cost reduced by the applicable valuation allowance ) of the msr asset before the change in input occurs and whether the input change causes our estimate of fair value to change to a level below the amortized cost of those msrs . therefore the preceding analyses are not projections of the effects of a shock event or a change in our manager 's estimate of an input and should not be relied upon as earnings projections . critical accounting policies not tied to fair value liability for representations and warranties we record a provision for losses relating to our representations and warranties as part of our mortgage loan sale transactions , which are generally to the agencies . the method we use to estimate the liability for representations and warranties is a function of the representations and warranties made to such investors and considers a combination of factors , including , but not limited to , estimated future default and mortgage loan repurchase rates , the potential severity of loss in the event of default and the probability of reimbursement by the mortgage originator who sold the mortgage loan to us . we establish a liability at the time we sell the mortgage loans to the investors and periodically update our liability estimate . the level of the liability for representations and warranties is difficult to estimate and requires considerable judgment . the level of mortgage loan repurchase losses is dependent on economic factors , investor behavior , and other external conditions that may change over the lives of the underlying mortgage loans . our estimate of the liability for representations and warranties is developed by our manager 's credit administration staff . the liability estimate is reviewed and approved by our manager 's senior management credit committee which includes its chief executive , credit , portfolio risk , mortgage operations , and mortgage banking officers . as economic fundamentals change , as investor and agency evaluations of their loss mitigation strategies ( including claims under representations and warranties ) change and as the mortgage market and general economic conditions affect our correspondent sellers , the level of repurchase activity and ensuing losses will change and such changes may be material to us . as a result of these changes , we have adjusted , and may in the future be required to adjust , the estimate of our liability for representations and warranties . such adjustments may be material to our financial condition and net income . consolidation-securitizations we enter into various types of on- and off-balance sheet transactions with special purpose entities ( “ spes ” ) , which are trusts that are established for a limited purpose . generally , spes are formed in connection with securitization transactions . in a securitization transaction , we transfer mortgage loans on our balance sheet to an spe , which then issues to investors various forms of interests in those assets . in a securitization transaction , we typically receive cash and or interests in an spe in exchange for the assets we
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1,098 | overview curiositystream is a media and entertainment company that offers premium video programming across the entire category of factual entertainment , including science , history , society , nature , lifestyle and technology . our mission is to provide premium factual entertainment that informs , enchants and inspires . we are seeking to meet demand for high-quality factual entertainment via svod platforms , as well as via bundled content licenses for svod and linear offerings , partner bulk sales , brand partnerships and content sales . we are well-positioned for growth as a digital-native video platform monetizing content across this broad revenue stack . we operate our business as a single operating segment that provides premium streaming content through multiple channels , including the use of various applications , partnerships and affiliate relationships . we generate our revenue through six lines of business : direct to consumer , partner direct business , bundled distribution , program sales , corporate & association partnerships and sponsorships . for the year ended december 31 , 2020 , direct to consumer and corporate & association partnerships together represented approximately 42 % of our revenue as of december 31 , 2020 , followed by bundled distribution ( approximately 35 % of our revenue ) and partner direct business ( approximately 7 % of our revenue ) , program sales ( approximately 15 % of our revenue ) and sponsorships ( approximately 1 % of our revenue ) . our product and service lines and channels through which we generate revenue are described in further detail below . our content library features more than 3,100 nonfiction episodes , including more than 1,000 original , commissioned or co-produced documentaries , of short-form , mid-form and long-form duration , with an estimated $ 1 billion in original production value . our content , approximately one-third of which is originally produced and the other two-thirds of which is licensed programming , is available directly through our o & o service and app services . our app services enable access to curiositystream on almost every major consumer device , including streaming media players like roku , apple tv and amazon fire tv , all major smart tv brands ( e.g . , lg , vizio , samsung , sony ) and gaming consoles like xbox . our direct service is available to any household in the world with a broadband connection for $ 2.99 per month or $ 19.99 per year for high definition resolution , or $ 9.99 per month or $ 69.99 per year for service in 4k . the mvpd , vmvpd and digital distributor partners making up our partner direct business pay us a license fee for sales to individuals who subscribe to curiositystream via the partners ' respective platforms . we have affiliate agreement relationships with , and our service is available directly from , major mvpds that include comcast , cox , dish and vmvpds and digital distributors that include amazon prime video channels , roku channels , sling tv and youtube tv . 37 in addition to our direct and partner direct businesses , we have affiliate relationships with mvpds and bundled mvpd partners to whom we can offer a broad scope sets of rights , including 24/7 “ linear ” channels , our on-demand content library , mobile rights and pricing and packaging flexibility , in exchange for an annual fixed fee or fee per subscriber . our corporate & association partnerships business to date has been comprised primarily of selling subscriptions in bulk to companies and organizations that in turn offer these subscriptions to their employees and members as an employment benefit or “ gift of curiosity . ” to date , over 30 companies have purchased annual subscriptions at bulk discounts for their employees . in the future , we hope to enter into multi-year integrated partnerships where we create and distribute content in support of these partners ' csr and membership initiatives . in the future , we hope to continue developing integrated digital brand partnerships with advertisers . these sponsorship campaigns would offer companies the chance to be associated with curiositystream content in a variety of forms , including short and long form program integration , branded social media promotional videos , broadcast advertising spots , and digital display ads . we believe the impressions accumulated in these multi-faceted campaigns would roll up to verifiable metrics for the clients . we executed on two such sponsorships in 2020 : one in the financial services sector as well as a brand in the health and fitness sector . the sixth line of business in our revenue stack is our program sales business . we are able to sell to certain media companies a collection of our existing titles in a traditional program sales deal and as of december 31 , 2020 , we were party to a multi-year , multi-million dollar program sales agreement with one such media company . we are also able to sell selected rights ( such as in territories or on platforms that are lower priority for us ) to content we create before we even begin production . this latter model reduces risk in our content development decisions and creates program sales revenue . prior to the business combination , software acquisition group inc. was a blank check company , incorporated as a delaware corporation on may 9 , 2019 and formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or similar business combination with one or more businesses . until the consummation of the business combination , software acquisition group inc. did not engage in any operations nor generate any revenue . story_separator_special_tag the content licenses are for a fixed fee and specific windows of availability . payments for content , including additions to content library and the changes in related liabilities , are classified within “ net cash used in operating activities ” on the consolidated statements of cash flows . the company recognizes its content library ( licensed and produced ) as “ content assets , net ” on the consolidated balance sheets . for licenses , the company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins , the cost of the title is known , and the title is accepted and available for streaming . for productions , the company capitalizes costs associated with the production , including development costs , direct costs and production overhead . based on factors including historical and estimated viewing patterns , the company generally amortizes the content library ( licensed and produced ) in “ cost of revenues ” on the consolidated statements of operations on a straight-line basis over the shorter of each title 's contractual window of availability or estimated period of use , beginning with the month of first availability . the company reviews factors impacting the amortization of the content library on an ongoing basis and will record amortization on an accelerated basis when there is more upfront use of a title , for instance due to significant program sales . revenue recognition subscriptions — o & o service the company generates revenue from monthly subscription fees from its o & o service . curiositystream subscribers enter into non-refundable , month-to-month or annual subscriptions with the company . the company bills the monthly subscriber on each subscriber 's monthly anniversary date and recognizes the revenue ratably over each monthly membership period . the annual subscription fees are collected by the company at the start of the annual subscription period and are recognized ratably over the subsequent twelve-month period . revenues are presented net of the taxes that are collected from subscribers and remitted to governmental authorities . subscription — app services the company also earns subscription revenues through its app services . these subscriptions are similar to the o & o service subscriptions , but these subscriptions are generated based on agreements with certain streaming media players as well as with smart tv brands and gaming consoles . under these agreements , the streaming media player typically bills the subscriber directly and then remits the collected subscriptions to the company , net of a distribution fee . the company recognizes the gross subscription revenues when earned and simultaneously recognizes the corresponding distribution fees as an expense . the company is the principal in these relationships as the company retains control over service delivery to its subscribers . 44 licensing — affiliates the company generates license fee revenues from mvpds such as altice , comcast and cox as well as from vmvpds such as amazon and sling tv ( mvpds and vmvpds are also referred to as affiliates ) . under the terms of the agreements with these affiliates , the company receives license fees based upon contracted programming rates and subscriber levels reported by the affiliates . in exchange , the company licenses its content to the affiliates for distribution to their subscribers . the company earns revenue under these agreements either based on the total number of subscribers multiplied by rates specified in the agreements or based on fixed fee arrangements . these revenues are recognized over the term of each agreement when earned . licensing — program sales the company has distribution agreements which grant a licensee limited distribution rights to the company 's programs for varying terms , generally in exchange for a fixed license fee . revenue is recognized once the content is made available for the licensee to use . the company 's performance obligations include ( 1 ) access to its svod platform via the company 's o & o service and app services , ( 2 ) access to the company 's content assets , and ( 3 ) licenses of specific program titles . in contracts containing the right to access the company svod platform , the performance obligation is satisfied as access to the svod platform is provided post any free trial period . in contracts which contain access to the company 's content assets , the performance obligation is satisfied as access to the content is provided . for contracts with licenses of specific program titles , the performance obligation is satisfied as that content is made available for the customer to use . recently issued financial accounting standards in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current u.s. gaap . asu 2016-02 requires that a lessee should recognize a liability to make lease payments ( the lease liability ) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet . the new guidance also requires qualitative and quantitative disclosures related to the nature , timing and uncertainty of cash flows arising from leases . the guidance is effective for the company 's fiscal year beginning january 1 , 2022 , with early adoption permitted , and is required to be implemented using a modified retrospective approach . the company is currently assessing the impact of the new standard on its financial statements , but anticipates a material increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding lease liability for all lease obligations that are currently classified as operating leases , such as real estate leases for corporate headquarters , as well as additional disclosure on all its lease obligations . the income statement recognition of lease expense is
| liquidity and capital resources as of december 31 , 2020 , we had cash and cash equivalents , including restricted cash , of $ 17.4 million . for the year ended december 31 , 2020 , we incurred a net loss of $ 38.6 million and used $ 52.9 million of net cash in operating activities , while investing activities provided $ 25.5 million of net cash and financing activities provided $ 36.0 million of net cash . during the year ended december 31 , 2019 and through the date of the merger , we have financed our operations primarily from the net proceeds of our sale of series a preferred stock in november and december 2018. an additional source of liquidity includes borrowings under our line of credit facility with a bank ( the “ line of credit ” ) . this line of credit provides for borrowings of up to $ 4.5 million with interest-only monthly payments at a rate equal to the libor daily floating rate plus 2.25 % . the line of credit carries an unused fee of 0.25 % annually on all committed but unused capital , payable quarterly in arrears . the entire unpaid principal balance is due when the line of credit matures on february 28 , 2022 , following the execution of a one year extension during february 2021. the line of credit is collateralized by cash of $ 4.5 million that is held in restricted cash in current assets on the consolidated balance sheet . in connection with the business combination , we received net cash proceeds of approximately $ 41.5 million , prior to the payment of $ 5.7 million of offering costs . on february 8 , 2021 , we consummated the offering . the net proceeds to us from the offering were $ 94.1 million , after deducting underwriting discounts and commissions and offering expenses payable by us in connection with the offering . during the months of january and february 2021 , we received funds of approximately $ 55 million for the exercise of 4.8 million warrants .
| 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. |
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 as of december 31 , 2020 , we had cash and cash equivalents , including restricted cash , of $ 17.4 million . for the year ended december 31 , 2020 , we incurred a net loss of $ 38.6 million and used $ 52.9 million of net cash in operating activities , while investing activities provided $ 25.5 million of net cash and financing activities provided $ 36.0 million of net cash . during the year ended december 31 , 2019 and through the date of the merger , we have financed our operations primarily from the net proceeds of our sale of series a preferred stock in november and december 2018. an additional source of liquidity includes borrowings under our line of credit facility with a bank ( the “ line of credit ” ) . this line of credit provides for borrowings of up to $ 4.5 million with interest-only monthly payments at a rate equal to the libor daily floating rate plus 2.25 % . the line of credit carries an unused fee of 0.25 % annually on all committed but unused capital , payable quarterly in arrears . the entire unpaid principal balance is due when the line of credit matures on february 28 , 2022 , following the execution of a one year extension during february 2021. the line of credit is collateralized by cash of $ 4.5 million that is held in restricted cash in current assets on the consolidated balance sheet . in connection with the business combination , we received net cash proceeds of approximately $ 41.5 million , prior to the payment of $ 5.7 million of offering costs . on february 8 , 2021 , we consummated the offering . the net proceeds to us from the offering were $ 94.1 million , after deducting underwriting discounts and commissions and offering expenses payable by us in connection with the offering . during the months of january and february 2021 , we received funds of approximately $ 55 million for the exercise of 4.8 million warrants .
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Suspicious Activity Report : overview curiositystream is a media and entertainment company that offers premium video programming across the entire category of factual entertainment , including science , history , society , nature , lifestyle and technology . our mission is to provide premium factual entertainment that informs , enchants and inspires . we are seeking to meet demand for high-quality factual entertainment via svod platforms , as well as via bundled content licenses for svod and linear offerings , partner bulk sales , brand partnerships and content sales . we are well-positioned for growth as a digital-native video platform monetizing content across this broad revenue stack . we operate our business as a single operating segment that provides premium streaming content through multiple channels , including the use of various applications , partnerships and affiliate relationships . we generate our revenue through six lines of business : direct to consumer , partner direct business , bundled distribution , program sales , corporate & association partnerships and sponsorships . for the year ended december 31 , 2020 , direct to consumer and corporate & association partnerships together represented approximately 42 % of our revenue as of december 31 , 2020 , followed by bundled distribution ( approximately 35 % of our revenue ) and partner direct business ( approximately 7 % of our revenue ) , program sales ( approximately 15 % of our revenue ) and sponsorships ( approximately 1 % of our revenue ) . our product and service lines and channels through which we generate revenue are described in further detail below . our content library features more than 3,100 nonfiction episodes , including more than 1,000 original , commissioned or co-produced documentaries , of short-form , mid-form and long-form duration , with an estimated $ 1 billion in original production value . our content , approximately one-third of which is originally produced and the other two-thirds of which is licensed programming , is available directly through our o & o service and app services . our app services enable access to curiositystream on almost every major consumer device , including streaming media players like roku , apple tv and amazon fire tv , all major smart tv brands ( e.g . , lg , vizio , samsung , sony ) and gaming consoles like xbox . our direct service is available to any household in the world with a broadband connection for $ 2.99 per month or $ 19.99 per year for high definition resolution , or $ 9.99 per month or $ 69.99 per year for service in 4k . the mvpd , vmvpd and digital distributor partners making up our partner direct business pay us a license fee for sales to individuals who subscribe to curiositystream via the partners ' respective platforms . we have affiliate agreement relationships with , and our service is available directly from , major mvpds that include comcast , cox , dish and vmvpds and digital distributors that include amazon prime video channels , roku channels , sling tv and youtube tv . 37 in addition to our direct and partner direct businesses , we have affiliate relationships with mvpds and bundled mvpd partners to whom we can offer a broad scope sets of rights , including 24/7 “ linear ” channels , our on-demand content library , mobile rights and pricing and packaging flexibility , in exchange for an annual fixed fee or fee per subscriber . our corporate & association partnerships business to date has been comprised primarily of selling subscriptions in bulk to companies and organizations that in turn offer these subscriptions to their employees and members as an employment benefit or “ gift of curiosity . ” to date , over 30 companies have purchased annual subscriptions at bulk discounts for their employees . in the future , we hope to enter into multi-year integrated partnerships where we create and distribute content in support of these partners ' csr and membership initiatives . in the future , we hope to continue developing integrated digital brand partnerships with advertisers . these sponsorship campaigns would offer companies the chance to be associated with curiositystream content in a variety of forms , including short and long form program integration , branded social media promotional videos , broadcast advertising spots , and digital display ads . we believe the impressions accumulated in these multi-faceted campaigns would roll up to verifiable metrics for the clients . we executed on two such sponsorships in 2020 : one in the financial services sector as well as a brand in the health and fitness sector . the sixth line of business in our revenue stack is our program sales business . we are able to sell to certain media companies a collection of our existing titles in a traditional program sales deal and as of december 31 , 2020 , we were party to a multi-year , multi-million dollar program sales agreement with one such media company . we are also able to sell selected rights ( such as in territories or on platforms that are lower priority for us ) to content we create before we even begin production . this latter model reduces risk in our content development decisions and creates program sales revenue . prior to the business combination , software acquisition group inc. was a blank check company , incorporated as a delaware corporation on may 9 , 2019 and formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or similar business combination with one or more businesses . until the consummation of the business combination , software acquisition group inc. did not engage in any operations nor generate any revenue . story_separator_special_tag the content licenses are for a fixed fee and specific windows of availability . payments for content , including additions to content library and the changes in related liabilities , are classified within “ net cash used in operating activities ” on the consolidated statements of cash flows . the company recognizes its content library ( licensed and produced ) as “ content assets , net ” on the consolidated balance sheets . for licenses , the company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins , the cost of the title is known , and the title is accepted and available for streaming . for productions , the company capitalizes costs associated with the production , including development costs , direct costs and production overhead . based on factors including historical and estimated viewing patterns , the company generally amortizes the content library ( licensed and produced ) in “ cost of revenues ” on the consolidated statements of operations on a straight-line basis over the shorter of each title 's contractual window of availability or estimated period of use , beginning with the month of first availability . the company reviews factors impacting the amortization of the content library on an ongoing basis and will record amortization on an accelerated basis when there is more upfront use of a title , for instance due to significant program sales . revenue recognition subscriptions — o & o service the company generates revenue from monthly subscription fees from its o & o service . curiositystream subscribers enter into non-refundable , month-to-month or annual subscriptions with the company . the company bills the monthly subscriber on each subscriber 's monthly anniversary date and recognizes the revenue ratably over each monthly membership period . the annual subscription fees are collected by the company at the start of the annual subscription period and are recognized ratably over the subsequent twelve-month period . revenues are presented net of the taxes that are collected from subscribers and remitted to governmental authorities . subscription — app services the company also earns subscription revenues through its app services . these subscriptions are similar to the o & o service subscriptions , but these subscriptions are generated based on agreements with certain streaming media players as well as with smart tv brands and gaming consoles . under these agreements , the streaming media player typically bills the subscriber directly and then remits the collected subscriptions to the company , net of a distribution fee . the company recognizes the gross subscription revenues when earned and simultaneously recognizes the corresponding distribution fees as an expense . the company is the principal in these relationships as the company retains control over service delivery to its subscribers . 44 licensing — affiliates the company generates license fee revenues from mvpds such as altice , comcast and cox as well as from vmvpds such as amazon and sling tv ( mvpds and vmvpds are also referred to as affiliates ) . under the terms of the agreements with these affiliates , the company receives license fees based upon contracted programming rates and subscriber levels reported by the affiliates . in exchange , the company licenses its content to the affiliates for distribution to their subscribers . the company earns revenue under these agreements either based on the total number of subscribers multiplied by rates specified in the agreements or based on fixed fee arrangements . these revenues are recognized over the term of each agreement when earned . licensing — program sales the company has distribution agreements which grant a licensee limited distribution rights to the company 's programs for varying terms , generally in exchange for a fixed license fee . revenue is recognized once the content is made available for the licensee to use . the company 's performance obligations include ( 1 ) access to its svod platform via the company 's o & o service and app services , ( 2 ) access to the company 's content assets , and ( 3 ) licenses of specific program titles . in contracts containing the right to access the company svod platform , the performance obligation is satisfied as access to the svod platform is provided post any free trial period . in contracts which contain access to the company 's content assets , the performance obligation is satisfied as access to the content is provided . for contracts with licenses of specific program titles , the performance obligation is satisfied as that content is made available for the customer to use . recently issued financial accounting standards in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current u.s. gaap . asu 2016-02 requires that a lessee should recognize a liability to make lease payments ( the lease liability ) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet . the new guidance also requires qualitative and quantitative disclosures related to the nature , timing and uncertainty of cash flows arising from leases . the guidance is effective for the company 's fiscal year beginning january 1 , 2022 , with early adoption permitted , and is required to be implemented using a modified retrospective approach . the company is currently assessing the impact of the new standard on its financial statements , but anticipates a material increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding lease liability for all lease obligations that are currently classified as operating leases , such as real estate leases for corporate headquarters , as well as additional disclosure on all its lease obligations . the income statement recognition of lease expense is
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1,099 | in connection with the foregoing , we may explore various financing alternatives to fund our external growth strategy , including improving our capital structure , which may include increasing , reducing and or refinancing debt ; pursuing capital raising activities , such as the issuance of new preferred or common equity and or a rights offering to our existing shareholders ; launching an exchange offer ; and pursuing other transactions involving our outstanding securities . there can be no assurance that any transaction will occur or if so , on what terms . with respect to our current operations , the company currently operates a single business , wmmrc , whose sole activity is the reinsurance of mortgage insurance policies that has been operated in runoff mode since september 26 , 2008. since that date , wmmrc has not underwritten any new policies ( and by extension any new risk ) . wmmrc , through predecessor companies , began reinsuring risks in 1997 and continued through september 25 , 2008. the nature of the reinsurance contracts are mainly excess-of-loss contracts whereby wmmrc takes a portion of the risk , usually 5 or 10 percent , with a stated attachment and exit point . each calendar year , or book year , is treated separately from other years when calculating losses . in return for accepting a portion of the risk , wmmrc receives , net of ceding commission , a percentage of the premium that ranges from 25 to 40 percent . beginning in 2006 , the housing market and related credit markets experienced a downturn that in 2012 has shown initial signs of improvement . during that period , housing prices declined materially , credit guidelines tightened , delays in mortgage servicing and foreclosure activities have occurred ( and continue to occur ) , and deterioration in the credit performance of mortgage loans has occurred . in addition , the macro-economic environment during that period has demonstrated limited economic growth , stubbornly high unemployment , and limited median wage gains . 26 while the macro-economic outlook remains guarded , there are strong indications that the housing market has begun to rebound nationally . recent reports show overall housing prices have increased somewhat on a year-over-year basis , and that housing sales in certain markets have increased , although they remain well below their long-run average . nevertheless , despite these early signs of market improvement , wmmrc 's operating environment remains challenged as much of its results over the next several years will be directly affected by the significant inventory of pending defaulted mortgages at its ceding companies arising primarily from mortgages originated in calendar years 2005 through 2008. critical accounting policies our consolidated financial statements are prepared in accordance with gaap , which requires management to make estimates and assumptions that affect reported and disclosed amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period . we believe that the critical accounting policies set forth in the accompanying consolidated financial statements describe the more significant judgments and estimates used in the preparation of our consolidated financial statements . these accounting policies pertain to premium revenues and risk transfer , valuation of investments , loss and loss adjustment expense reserves , our values under fresh start accounting and the resulting loss contract fair market value reserve . if actual events differ significantly from the underlying judgments or estimates used by management in the application of these accounting policies , there could be a material effect on our results of operations and financial condition . the company adopted fresh start accounting in accordance with asc 852 . ( see note 4 : fresh start accounting to the consolidated financial statements in item 8 of this annual report on form 10-k ) . recently issued accounting standards and their impact on the company have been presented under new accounting pronouncements in note 3 : significant accounting policies to the consolidated financial statements in item 8 of this annual report on form 10-k. fresh start accounting under asc 852 , the application of fresh start accounting results in the allocation of reorganization value to the fair value of assets is required when ( a ) the reorganization value of assets immediately prior to confirmation of a plan of reorganization is less than the total of all post-petition liabilities and allowed claims and ( b ) the holders of voting shares immediately prior to the confirmation of the plan of reorganization receive less than 50 percent of the voting shares of the emerging entity . the company adopted fresh start accounting as of the effective date , which represents the date on which all material conditions precedent to the effectiveness of the plan were satisfied or waived as it believes that it satisfied both of the aforementioned conditions . the company 's equity value , upon emergence from bankruptcy , was determined to be $ 76.6 million , which represents management 's best estimate of fair value based on a calculation of the present value of the company 's consolidated assets and liabilities as at march 19 , 2012. as part of our fresh start reporting , we applied various valuation methodologies to calculate the reorganization value of the successor . these methods included ( a ) the comparable company 's analysis , ( b ) the precedent transactions analysis and ( c ) the discounted cash flow analysis . the application of these methodologies requires certain key estimates , judgments and assumptions , including financial projections , the amount of cash available to fund operations and current market conditions . story_separator_special_tag 2012 versus 2011 summary of change in net loss ( in thousands ) replace_table_token_4_th 2012 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_5_th 2011 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_6_th comprehensive income ( loss ) the company has no comprehensive income ( loss ) other than the net income ( loss ) disclosed in the consolidated statements of operations . 30 net premiums earned the majority of wmmrc 's reinsurance contracts require premiums to be written and earned monthly . in a few cases , the premiums earned reflect the pro rata inclusion into income of premiums written over the life of the reinsurance contracts . details of premiums earned are provided in the following table : replace_table_token_7_th for the year ended december 31 , 2012 , premiums earned totaled $ 20.6 million , a decrease of $ 14.2 million and $ 25.0 million when compared to premiums earned during the same periods in 2011 and 2010. revenues are expected to continue to decrease due to the runoff status of wmmrc . losses incurred and losses and loss adjustment expenses losses incurred include losses paid and changes in loss reserves , including reserves for ibnr , premium deficiency reserves net of actual and estimated loss recoverable amounts . details of net losses incurred for the years ended december 31 , 2012 and 2011 , are provided in the following table : replace_table_token_8_th we establish reserves for each contract based on estimates of the ultimate cost of all losses including losses incurred but not reported . these estimated ultimate reserves are based on reports received from ceding companies , industry data and historical experience as well as our own actuarial estimates . quarterly , we review these estimates on a contract by contract basis and adjust as we deem necessary based on updated information and our internal actuarial estimates . for the years ended december 31 , 2012 , 2011 and 2010 , the loss ratios for our business were 146 percent , 136 percent and 132 percent , respectively . the loss ratio is calculated by dividing incurred losses for the period by earned premiums . the ratio provides a measure of underwriting profit or , in this case , loss . the components of the liability for losses and loss adjustment reserves are as follows at december 31 , 2012 and december 31 , 2011 and december 31 , 2010 : replace_table_token_9_th 31 losses and loss adjustment reserve activity are as follows for the periods ended december 31 , 2012 , 2011 and 2010 : replace_table_token_10_th net investment income ( loss ) a summary of our net investment income ( loss ) for the years ended december 31 , 2012 and 2011 is as follows : replace_table_token_11_th income taxes the company has no current tax liability due as a result of its tax loss position for both the years ended december 31 , 2012 , 2011 and 2010. more detailed information regarding the company 's tax position including net operating loss carry forwards is provided in note 7 : federal income taxes to the consolidated financial statements in item 8 of this annual report on form 10-k. the company files a consolidated federal income tax return . pursuant to a tax sharing agreement , wmmrc 's federal income tax liability is calculated on a separate return basis determined by applying 35 percent to taxable income , in accordance with the provisions of the code that apply to mortgage insurance companies . the company , as wmmrc 's parent , pays federal income taxes on behalf of wmmrc and settles the federal income tax obligation on a current basis in accordance with the tax sharing agreement . wmmrc made no tax payments to wmihc during the periods ending december 31 , 2012 , 2011 and december 31 , 2010 associated with the company 's tax liability from the preceding year . deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and income tax purposes . temporary differences principally relate to discounting of loss reserves , recognition of unearned premiums , net operating losses and unrealized gains and losses on investments . as of december 31 , 2012 , 2011 and 2010 , the company recorded a valuation allowance equal to 100 percent of the net deferred federal income tax asset due to uncertainty regarding the company 's ability to realize these benefits in the future . the amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income are revised . 32 investments general we currently hold investments at both wmihc and wmmrc and the two portfolios consist entirely of fixed income instruments , including commercial paper and overnight money market funds totaling $ 311.1 million . in addition , the company held $ 25.2 million restricted cash at december 31 , 2012. the value of the consolidated company 's total cash and investments decreased each of the past two years . cash and investments totaled $ 345.1 and $ 406.6 million at december 31 , 2011 and 2010 , respectively . we work with investment broker dealers and , in the case of wmmrc , collateral trustees , in determining whether a market for a financial instrument is active or inactive . we regularly obtain indicative pricing from market makers and from multiple dealers and compare the level of pricing variances as a way to observe market liquidity for certain investment securities . we also obtain trade history and live market quotations from publicly quoted sources , such as bloomberg , for trade volume and frequency observation . while we obtain market pricing information from broker dealers , the ultimate fair value of our investments is based on portfolio statements provided by financial institutions that hold our accounts . during the years ended december 31 ,
| liquidity management the objective of liquidity management is to ensure the company has the continuing ability to maintain cash flows that are adequate to fund operations and meet obligations and other commitments on a timely and cost-effective basis . the company establishes and maintains liquidity guidelines for wmihc as well as for wmmrc , its principal operating subsidiary . funds held by wmmrc are not available to wmihc to satisfy its liquidity needs . any dividend or payment by wmmrc to wmihc must be approved by the insurance commissioner of the state of hawaii . in light of the restrictions on dividends applicable to wmmrc , wmihc 's principal sources of liquidity are its unrestricted investments , investment income derived from these investments , fees paid to it by wmmrc with respect to services provided pursuant to the two services agreements approved by the insurance commissioner of the state of hawaii , cash on hand and potential borrowings made under its existing financing agreement . in addition , subject to the terms of the indentures , all dividends paid by wmmrc to wmihc must first be used to make payments on the runoff notes . our sources of liquidity include premium receipts , investment income , cash on hand , investment securities and our $ 125.0 million financing facility . because of the runoff nature of wmmrc 's business and the restrictions imposed on the company by the indentures , as discussed above , all cash available to wmmrc is primarily used to pay reinsurance losses and loss adjustment expenses , ceding commissions , interest and principal obligations on the runoff notes ( only if wmihc is in receipt of runoff proceeds ; otherwise wmihc pays interest using the payment-in-kind ( pik ) option available under the indentures ) and general administrative expenses . the company monitors operating activities , forecasts liquidity needs and adjusts composition of investment securities in order to address liquidity needs . the company currently has negative monthly operating cash flows mainly due to loss expenses at wmmrc .
| 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. |
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 management the objective of liquidity management is to ensure the company has the continuing ability to maintain cash flows that are adequate to fund operations and meet obligations and other commitments on a timely and cost-effective basis . the company establishes and maintains liquidity guidelines for wmihc as well as for wmmrc , its principal operating subsidiary . funds held by wmmrc are not available to wmihc to satisfy its liquidity needs . any dividend or payment by wmmrc to wmihc must be approved by the insurance commissioner of the state of hawaii . in light of the restrictions on dividends applicable to wmmrc , wmihc 's principal sources of liquidity are its unrestricted investments , investment income derived from these investments , fees paid to it by wmmrc with respect to services provided pursuant to the two services agreements approved by the insurance commissioner of the state of hawaii , cash on hand and potential borrowings made under its existing financing agreement . in addition , subject to the terms of the indentures , all dividends paid by wmmrc to wmihc must first be used to make payments on the runoff notes . our sources of liquidity include premium receipts , investment income , cash on hand , investment securities and our $ 125.0 million financing facility . because of the runoff nature of wmmrc 's business and the restrictions imposed on the company by the indentures , as discussed above , all cash available to wmmrc is primarily used to pay reinsurance losses and loss adjustment expenses , ceding commissions , interest and principal obligations on the runoff notes ( only if wmihc is in receipt of runoff proceeds ; otherwise wmihc pays interest using the payment-in-kind ( pik ) option available under the indentures ) and general administrative expenses . the company monitors operating activities , forecasts liquidity needs and adjusts composition of investment securities in order to address liquidity needs . the company currently has negative monthly operating cash flows mainly due to loss expenses at wmmrc .
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Suspicious Activity Report : in connection with the foregoing , we may explore various financing alternatives to fund our external growth strategy , including improving our capital structure , which may include increasing , reducing and or refinancing debt ; pursuing capital raising activities , such as the issuance of new preferred or common equity and or a rights offering to our existing shareholders ; launching an exchange offer ; and pursuing other transactions involving our outstanding securities . there can be no assurance that any transaction will occur or if so , on what terms . with respect to our current operations , the company currently operates a single business , wmmrc , whose sole activity is the reinsurance of mortgage insurance policies that has been operated in runoff mode since september 26 , 2008. since that date , wmmrc has not underwritten any new policies ( and by extension any new risk ) . wmmrc , through predecessor companies , began reinsuring risks in 1997 and continued through september 25 , 2008. the nature of the reinsurance contracts are mainly excess-of-loss contracts whereby wmmrc takes a portion of the risk , usually 5 or 10 percent , with a stated attachment and exit point . each calendar year , or book year , is treated separately from other years when calculating losses . in return for accepting a portion of the risk , wmmrc receives , net of ceding commission , a percentage of the premium that ranges from 25 to 40 percent . beginning in 2006 , the housing market and related credit markets experienced a downturn that in 2012 has shown initial signs of improvement . during that period , housing prices declined materially , credit guidelines tightened , delays in mortgage servicing and foreclosure activities have occurred ( and continue to occur ) , and deterioration in the credit performance of mortgage loans has occurred . in addition , the macro-economic environment during that period has demonstrated limited economic growth , stubbornly high unemployment , and limited median wage gains . 26 while the macro-economic outlook remains guarded , there are strong indications that the housing market has begun to rebound nationally . recent reports show overall housing prices have increased somewhat on a year-over-year basis , and that housing sales in certain markets have increased , although they remain well below their long-run average . nevertheless , despite these early signs of market improvement , wmmrc 's operating environment remains challenged as much of its results over the next several years will be directly affected by the significant inventory of pending defaulted mortgages at its ceding companies arising primarily from mortgages originated in calendar years 2005 through 2008. critical accounting policies our consolidated financial statements are prepared in accordance with gaap , which requires management to make estimates and assumptions that affect reported and disclosed amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period . we believe that the critical accounting policies set forth in the accompanying consolidated financial statements describe the more significant judgments and estimates used in the preparation of our consolidated financial statements . these accounting policies pertain to premium revenues and risk transfer , valuation of investments , loss and loss adjustment expense reserves , our values under fresh start accounting and the resulting loss contract fair market value reserve . if actual events differ significantly from the underlying judgments or estimates used by management in the application of these accounting policies , there could be a material effect on our results of operations and financial condition . the company adopted fresh start accounting in accordance with asc 852 . ( see note 4 : fresh start accounting to the consolidated financial statements in item 8 of this annual report on form 10-k ) . recently issued accounting standards and their impact on the company have been presented under new accounting pronouncements in note 3 : significant accounting policies to the consolidated financial statements in item 8 of this annual report on form 10-k. fresh start accounting under asc 852 , the application of fresh start accounting results in the allocation of reorganization value to the fair value of assets is required when ( a ) the reorganization value of assets immediately prior to confirmation of a plan of reorganization is less than the total of all post-petition liabilities and allowed claims and ( b ) the holders of voting shares immediately prior to the confirmation of the plan of reorganization receive less than 50 percent of the voting shares of the emerging entity . the company adopted fresh start accounting as of the effective date , which represents the date on which all material conditions precedent to the effectiveness of the plan were satisfied or waived as it believes that it satisfied both of the aforementioned conditions . the company 's equity value , upon emergence from bankruptcy , was determined to be $ 76.6 million , which represents management 's best estimate of fair value based on a calculation of the present value of the company 's consolidated assets and liabilities as at march 19 , 2012. as part of our fresh start reporting , we applied various valuation methodologies to calculate the reorganization value of the successor . these methods included ( a ) the comparable company 's analysis , ( b ) the precedent transactions analysis and ( c ) the discounted cash flow analysis . the application of these methodologies requires certain key estimates , judgments and assumptions , including financial projections , the amount of cash available to fund operations and current market conditions . story_separator_special_tag 2012 versus 2011 summary of change in net loss ( in thousands ) replace_table_token_4_th 2012 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_5_th 2011 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_6_th comprehensive income ( loss ) the company has no comprehensive income ( loss ) other than the net income ( loss ) disclosed in the consolidated statements of operations . 30 net premiums earned the majority of wmmrc 's reinsurance contracts require premiums to be written and earned monthly . in a few cases , the premiums earned reflect the pro rata inclusion into income of premiums written over the life of the reinsurance contracts . details of premiums earned are provided in the following table : replace_table_token_7_th for the year ended december 31 , 2012 , premiums earned totaled $ 20.6 million , a decrease of $ 14.2 million and $ 25.0 million when compared to premiums earned during the same periods in 2011 and 2010. revenues are expected to continue to decrease due to the runoff status of wmmrc . losses incurred and losses and loss adjustment expenses losses incurred include losses paid and changes in loss reserves , including reserves for ibnr , premium deficiency reserves net of actual and estimated loss recoverable amounts . details of net losses incurred for the years ended december 31 , 2012 and 2011 , are provided in the following table : replace_table_token_8_th we establish reserves for each contract based on estimates of the ultimate cost of all losses including losses incurred but not reported . these estimated ultimate reserves are based on reports received from ceding companies , industry data and historical experience as well as our own actuarial estimates . quarterly , we review these estimates on a contract by contract basis and adjust as we deem necessary based on updated information and our internal actuarial estimates . for the years ended december 31 , 2012 , 2011 and 2010 , the loss ratios for our business were 146 percent , 136 percent and 132 percent , respectively . the loss ratio is calculated by dividing incurred losses for the period by earned premiums . the ratio provides a measure of underwriting profit or , in this case , loss . the components of the liability for losses and loss adjustment reserves are as follows at december 31 , 2012 and december 31 , 2011 and december 31 , 2010 : replace_table_token_9_th 31 losses and loss adjustment reserve activity are as follows for the periods ended december 31 , 2012 , 2011 and 2010 : replace_table_token_10_th net investment income ( loss ) a summary of our net investment income ( loss ) for the years ended december 31 , 2012 and 2011 is as follows : replace_table_token_11_th income taxes the company has no current tax liability due as a result of its tax loss position for both the years ended december 31 , 2012 , 2011 and 2010. more detailed information regarding the company 's tax position including net operating loss carry forwards is provided in note 7 : federal income taxes to the consolidated financial statements in item 8 of this annual report on form 10-k. the company files a consolidated federal income tax return . pursuant to a tax sharing agreement , wmmrc 's federal income tax liability is calculated on a separate return basis determined by applying 35 percent to taxable income , in accordance with the provisions of the code that apply to mortgage insurance companies . the company , as wmmrc 's parent , pays federal income taxes on behalf of wmmrc and settles the federal income tax obligation on a current basis in accordance with the tax sharing agreement . wmmrc made no tax payments to wmihc during the periods ending december 31 , 2012 , 2011 and december 31 , 2010 associated with the company 's tax liability from the preceding year . deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and income tax purposes . temporary differences principally relate to discounting of loss reserves , recognition of unearned premiums , net operating losses and unrealized gains and losses on investments . as of december 31 , 2012 , 2011 and 2010 , the company recorded a valuation allowance equal to 100 percent of the net deferred federal income tax asset due to uncertainty regarding the company 's ability to realize these benefits in the future . the amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income are revised . 32 investments general we currently hold investments at both wmihc and wmmrc and the two portfolios consist entirely of fixed income instruments , including commercial paper and overnight money market funds totaling $ 311.1 million . in addition , the company held $ 25.2 million restricted cash at december 31 , 2012. the value of the consolidated company 's total cash and investments decreased each of the past two years . cash and investments totaled $ 345.1 and $ 406.6 million at december 31 , 2011 and 2010 , respectively . we work with investment broker dealers and , in the case of wmmrc , collateral trustees , in determining whether a market for a financial instrument is active or inactive . we regularly obtain indicative pricing from market makers and from multiple dealers and compare the level of pricing variances as a way to observe market liquidity for certain investment securities . we also obtain trade history and live market quotations from publicly quoted sources , such as bloomberg , for trade volume and frequency observation . while we obtain market pricing information from broker dealers , the ultimate fair value of our investments is based on portfolio statements provided by financial institutions that hold our accounts . during the years ended december 31 ,
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