we were founded on may 17 , 2007. to date , our operations have been funded through the sale of our common stock and convertible debt , through u.s. department of energy grants and , to a lesser extent , through technology licensing revenue . our total revenue generated from inception to date as of december 31 , 2013 is $ 4,283,102 , with the majority of that revenue coming from government grants and engineering fees . we have successfully applied these revenues to research and product development , reducing our capital requirements . we will continue to pursue research and development grants , where available , for the purpose of performing the necessary research and development of our products . we can make no assurances that additional grants will be available in the future . 27 we have completed development and industry certification of our first two products , a 30kw pv inverter and a 30kw battery converter , both using the same universal power converter hardware design with different embedded software . we are currently developing our third product , which is a 30kw 3-port hybrid converter . these are products that we plan to use to promote long term licensing opportunities for the company . as a result , we believe the revenue from our early product sales is not the most important metric of our growing success . we believe the quality and the level of interest from prospective customers and potential licensees is the most important metric , although we can not provide any assurance that such prospective customers and potential licensees will materialize for us . we are currently focused on three vertical markets  pv inverters , distributed grid energy storage , and ev dc charging . the pv inverter market is the largest and most mature , but it is also in a hypercompetitive state with slow growth and an increasing number of suppliers . our initial pv inverter product was developed as the first implementation of ppsa in order to validate our technology . we continue to leverage the pv inverter market for valuable product refinement feedback , including feature and performance requirements as well as improving the quality and robustness of our product designs . we plan to integrate our proven pv inverter functionality with grid energy storage and or dc charging functionality to create high value hybrid and micro-grid systems . the distributed grid energy storage market is an evolving market . we believe that this market will grow quickly , but is currently limited by the lack of commercially available , certified solutions . we believe our battery converter is highly competitive in this market . we have achieved several design wins with customers that we believe can generate product sales and may be converted to licensing agreements longer term . most of our initial battery converter sales have been made to potential customers as they evaluate our converters for possible integration into their commercial grid energy storage market products . we believe our ability to negotiate attractive licensing terms would improve if high market demand is established for our products . we believe the ev dc charging market is an attractive market . our approach to this market offers features to reduce installation costs , operational costs , and create new value-added capabilities . similar to the distributed grid energy storage market , we are working with several customers to achieve design wins and help them integrate our product into their solutions . our initial focus is on the california ev dc charging market , and we believe we can establish design wins and ecosystem relationships in this space . we are also developing next generation products , including our 3-port hybrid converter , micro-grid converter , and new power switch components that we believe will further extend the differentiation and value of our products . we developed a new 3-port hardware design that will be used for both products , although we expect to make some incremental hardware design improvements based on initial hardware testing . our next step will be to develop enhanced embedded control software for these products . when that step is complete , we plan to sell sample products to early customers , and then make incremental hardware and software improvements based on feedback from them . after these improvements are implemented , we expect to work with intertek on industry certification , including ul1741 compliance . as discussed below , the development of new power switch components is being funded by the u.s. department of energy 's $ 2.5 million arpa-e grant . we believe the department of energy grant will be sufficient to prove this technology 's capability and build a prototype ppsa product with these switches . after the bi-directional power switch technology is proven , we plan to redesign our growing number of products to use these new components . plan of operation our strategy is to continue to commercialize our technology though the development of a variety of products and licensing . we have completed development of our first two products , we are developing additional products and , based on customer feedback from system installations , we will continue to improve our products . our goal is to have these products validate our technology and lay the foundation for licensing our technology platform into applications across the global power converter marketplace . story_separator_special_tag revenues for the year ended december 31 , 2013 of $ 1,892,424 were $ 765,517 , or 68 % , higher than the $ 1,126,907 we earned in revenues for the year ended december 31 , 2012. the increase in revenue was due to a $ 667,599 increase in grant revenues and a $ 97,918 increase in the sale of products and services . total grant revenues for the year ended december 31 , 2013 were $ 1,374,956 , including $ 1,229,036 from the arpa-e grant and $ 145,920 from a department of energy sbir grant , as compared to grant revenues for the year ended december 31 , 2012 of $ 707,357 , including $ 693,938 from the arpa-e grant and $ 13,419 from other grants . revenues related to the arpa-e grant increased because the project was fully underway for the full year ended december 31 , 2013. in the year ended december 31 , 2013 , revenue from the sale of our products was $ 417,468. in the year ended december 31 , 2012 , revenue from the sale of products and services was $ 319,550 , of which $ 265,650 was from the sale of our products and $ 53,900 was for engineering services . revenues from royalties from lockheed martin corporation for both years were $ 100,000. cost of revenues . as a result of the increase in grant research and development costs and the cost of sales of our products , cost of revenues increased for the year ended december 31 , 2013 , to $ 2,146,973 from $ 1,123,864 for the year ended december 31 , 2012 , which is an increase of $ 1,023,109 , or approximately 91 % . the increase in cost of revenues was due to a $ 720,844 increase in grant research and development costs and a $ 302,265 increase in cost of revenues for the sale of product and services . the increase in grant research and development costs arose from our increase in grant revenue primarily under our arpa-e grant and sbir grant . during the years ended december 31 , 2013 and 2012 , we recognized $ 1,229,036 and $ 693,938 , respectively , in grant revenue and $ 1,284,878 and $ 709,954 , respectively , in grant research and development costs from our arpa-e grant . we have a cost-sharing arrangement with arpa-e whereby we contribute ten percent of the total costs of the project ( less any costs that our subcontractors have agreed to share ) , which results in our costs exceeding our revenue . during the year ended december 31 , 2013 , we recognized $ 145,920 in grant revenues and $ 145,920 in grant research and development costs from our sbir grant . during the year ended december 31 , 2012 , we recognized $ 13,419 in grant revenues and $ 0 in grant research and development costs from our other grants . in the year ended december 31 , 2013 , cost of revenues from the sale of products was $ 716,175. in the year ended december 31 , 2012 , the cost of revenues from the sale of products and services was $ 413,910 of which $ 393,058 was for the sale of products and $ 20,852 related to engineering services . the increase in cost of revenues from the sale of products and services was due to higher unit sales and personnel costs . gross profit ( loss ) . gross profit ( loss ) for the years ended december 31 , 2013 and 2012 were $ ( 254,549 ) and $ 3,043 , respectively . gross profit ( loss ) for the year ended december 31 , 2013 was $ 257,592 lower than in the year ended december 31 , 2012 primarily due to increased engineering personnel costs in 32 2013 as we added resources to support our existing products . we recognized $ 166,504 in higher compensation costs within cost of revenues in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012. in addition , net losses on our grants were $ 53,245 higher in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 and we recognized gross profit of $ 0 and $ 33,048 , respectively , on contract services for lmc in the years ended december 31 , 2013 and 2012. in the year ended december 31 , 2013 , grant costs exceeded revenues by $ 55,842 while for the year ended december 31 , 2012 revenues exceeded costs by $ 2,597. general and administrative expenses . general and administrative expenses increased by $ 369,179 , or 21 % , to $ 2,139,036 in the year ended december 31 , 2013 from $ 1,769,857 in the year ended december 31 , 2012. the increase was due primarily to higher stock compensation expense of $ 340,638 , personnel costs of $ 297,081 , severance costs of $ 97,369 , insurance costs of $ 45,378 and board fees of $ 37,500 partially offset by lower legal and professional fees of $ 512,026. professional fees in the year ended december 31 , 2012 included advisory warrants with a fair value of $ 670,947. research and development expenses . research and development expenses increased by $ 162,141 , or 15 % , to $ 1,212,298 in the year ended december 31 , 2013 from $ 1,050,157 in the year ended december 31 , 2012. the increase was due primarily to higher stock compensation expense of $ 118,881 and personnel costs of $ 83,022. sales and marketing expenses . sales and marketing expenses increased by $ 235,956 , or 107 % , to $ 457,292 in the year ended december 31 , 2013 from $ 221,336 in the year ended december 31 , 2012. the increase was due to higher personnel costs of $ 155,306 , contract sales representative fees of $

liquidity and capital resources although our revenues have increased every year from the date of our inception , we do not generate enough revenue to sustain our operations . our revenues are derived from sales of our products and from grants we have received for the development of our technology . we have funded our operations through the sale of our common stock , including proceeds from our initial public offering , and preferred stock ( later converted to common stock ) and debt securities . as of december 31 , 2013 and 2012 , we had cash and cash equivalents of $ 14,137,097 and $ 1,972,301 , respectively . our net working capital increased from $ 528,603 as of december 31 , 2012 to $ 14,140,317 as of december 31 , 2013 due to the proceeds from our initial public offering . operating activities in the year ended december 31 , 2013 resulted in cash outflows of $ 3,240,792 , which were due primarily to the net loss for the period of $ 9,551,698 , offset by amortization of debt discount of $ 5,318,257 , stock-based compensation of $ 458,983 and other non-cash items of $ 527,871. operating activities in the year ended december 31 , 2012 resulted in cash outflows of $ 2,171,489 , which were due primarily to the net loss for the period of $ 4,647,219 , offset by amortization of debt discount of $ 1,472,904 , the fair value of warrants issued for consulting services of $670,947 and other non-cash items of $ 362,436 .


 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 although our revenues have increased every year from the date of our inception , we do not generate enough revenue to sustain our operations . our revenues are derived from sales of our products and from grants we have received for the development of our technology . we have funded our operations through the sale of our common stock , including proceeds from our initial public offering , and preferred stock ( later converted to common stock ) and debt securities . as of december 31 , 2013 and 2012 , we had cash and cash equivalents of $ 14,137,097 and $ 1,972,301 , respectively . our net working capital increased from $ 528,603 as of december 31 , 2012 to $ 14,140,317 as of december 31 , 2013 due to the proceeds from our initial public offering . operating activities in the year ended december 31 , 2013 resulted in cash outflows of $ 3,240,792 , which were due primarily to the net loss for the period of $ 9,551,698 , offset by amortization of debt discount of $ 5,318,257 , stock-based compensation of $ 458,983 and other non-cash items of $ 527,871. operating activities in the year ended december 31 , 2012 resulted in cash outflows of $ 2,171,489 , which were due primarily to the net loss for the period of $ 4,647,219 , offset by amortization of debt discount of $ 1,472,904 , the fair value of warrants issued for consulting services of $670,947 and other non-cash items of $ 362,436 .
```    
 Suspicious Activity Report : we were founded on may 17 , 2007. to date , our operations have been funded through the sale of our common stock and convertible debt , through u.s. department of energy grants and , to a lesser extent , through technology licensing revenue . our total revenue generated from inception to date as of december 31 , 2013 is $ 4,283,102 , with the majority of that revenue coming from government grants and engineering fees . we have successfully applied these revenues to research and product development , reducing our capital requirements . we will continue to pursue research and development grants , where available , for the purpose of performing the necessary research and development of our products . we can make no assurances that additional grants will be available in the future . 27 we have completed development and industry certification of our first two products , a 30kw pv inverter and a 30kw battery converter , both using the same universal power converter hardware design with different embedded software . we are currently developing our third product , which is a 30kw 3-port hybrid converter . these are products that we plan to use to promote long term licensing opportunities for the company . as a result , we believe the revenue from our early product sales is not the most important metric of our growing success . we believe the quality and the level of interest from prospective customers and potential licensees is the most important metric , although we can not provide any assurance that such prospective customers and potential licensees will materialize for us . we are currently focused on three vertical markets  pv inverters , distributed grid energy storage , and ev dc charging . the pv inverter market is the largest and most mature , but it is also in a hypercompetitive state with slow growth and an increasing number of suppliers . our initial pv inverter product was developed as the first implementation of ppsa in order to validate our technology . we continue to leverage the pv inverter market for valuable product refinement feedback , including feature and performance requirements as well as improving the quality and robustness of our product designs . we plan to integrate our proven pv inverter functionality with grid energy storage and or dc charging functionality to create high value hybrid and micro-grid systems . the distributed grid energy storage market is an evolving market . we believe that this market will grow quickly , but is currently limited by the lack of commercially available , certified solutions . we believe our battery converter is highly competitive in this market . we have achieved several design wins with customers that we believe can generate product sales and may be converted to licensing agreements longer term . most of our initial battery converter sales have been made to potential customers as they evaluate our converters for possible integration into their commercial grid energy storage market products . we believe our ability to negotiate attractive licensing terms would improve if high market demand is established for our products . we believe the ev dc charging market is an attractive market . our approach to this market offers features to reduce installation costs , operational costs , and create new value-added capabilities . similar to the distributed grid energy storage market , we are working with several customers to achieve design wins and help them integrate our product into their solutions . our initial focus is on the california ev dc charging market , and we believe we can establish design wins and ecosystem relationships in this space . we are also developing next generation products , including our 3-port hybrid converter , micro-grid converter , and new power switch components that we believe will further extend the differentiation and value of our products . we developed a new 3-port hardware design that will be used for both products , although we expect to make some incremental hardware design improvements based on initial hardware testing . our next step will be to develop enhanced embedded control software for these products . when that step is complete , we plan to sell sample products to early customers , and then make incremental hardware and software improvements based on feedback from them . after these improvements are implemented , we expect to work with intertek on industry certification , including ul1741 compliance . as discussed below , the development of new power switch components is being funded by the u.s. department of energy 's $ 2.5 million arpa-e grant . we believe the department of energy grant will be sufficient to prove this technology 's capability and build a prototype ppsa product with these switches . after the bi-directional power switch technology is proven , we plan to redesign our growing number of products to use these new components . plan of operation our strategy is to continue to commercialize our technology though the development of a variety of products and licensing . we have completed development of our first two products , we are developing additional products and , based on customer feedback from system installations , we will continue to improve our products . our goal is to have these products validate our technology and lay the foundation for licensing our technology platform into applications across the global power converter marketplace . story_separator_special_tag revenues for the year ended december 31 , 2013 of $ 1,892,424 were $ 765,517 , or 68 % , higher than the $ 1,126,907 we earned in revenues for the year ended december 31 , 2012. the increase in revenue was due to a $ 667,599 increase in grant revenues and a $ 97,918 increase in the sale of products and services . total grant revenues for the year ended december 31 , 2013 were $ 1,374,956 , including $ 1,229,036 from the arpa-e grant and $ 145,920 from a department of energy sbir grant , as compared to grant revenues for the year ended december 31 , 2012 of $ 707,357 , including $ 693,938 from the arpa-e grant and $ 13,419 from other grants . revenues related to the arpa-e grant increased because the project was fully underway for the full year ended december 31 , 2013. in the year ended december 31 , 2013 , revenue from the sale of our products was $ 417,468. in the year ended december 31 , 2012 , revenue from the sale of products and services was $ 319,550 , of which $ 265,650 was from the sale of our products and $ 53,900 was for engineering services . revenues from royalties from lockheed martin corporation for both years were $ 100,000. cost of revenues . as a result of the increase in grant research and development costs and the cost of sales of our products , cost of revenues increased for the year ended december 31 , 2013 , to $ 2,146,973 from $ 1,123,864 for the year ended december 31 , 2012 , which is an increase of $ 1,023,109 , or approximately 91 % . the increase in cost of revenues was due to a $ 720,844 increase in grant research and development costs and a $ 302,265 increase in cost of revenues for the sale of product and services . the increase in grant research and development costs arose from our increase in grant revenue primarily under our arpa-e grant and sbir grant . during the years ended december 31 , 2013 and 2012 , we recognized $ 1,229,036 and $ 693,938 , respectively , in grant revenue and $ 1,284,878 and $ 709,954 , respectively , in grant research and development costs from our arpa-e grant . we have a cost-sharing arrangement with arpa-e whereby we contribute ten percent of the total costs of the project ( less any costs that our subcontractors have agreed to share ) , which results in our costs exceeding our revenue . during the year ended december 31 , 2013 , we recognized $ 145,920 in grant revenues and $ 145,920 in grant research and development costs from our sbir grant . during the year ended december 31 , 2012 , we recognized $ 13,419 in grant revenues and $ 0 in grant research and development costs from our other grants . in the year ended december 31 , 2013 , cost of revenues from the sale of products was $ 716,175. in the year ended december 31 , 2012 , the cost of revenues from the sale of products and services was $ 413,910 of which $ 393,058 was for the sale of products and $ 20,852 related to engineering services . the increase in cost of revenues from the sale of products and services was due to higher unit sales and personnel costs . gross profit ( loss ) . gross profit ( loss ) for the years ended december 31 , 2013 and 2012 were $ ( 254,549 ) and $ 3,043 , respectively . gross profit ( loss ) for the year ended december 31 , 2013 was $ 257,592 lower than in the year ended december 31 , 2012 primarily due to increased engineering personnel costs in 32 2013 as we added resources to support our existing products . we recognized $ 166,504 in higher compensation costs within cost of revenues in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012. in addition , net losses on our grants were $ 53,245 higher in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 and we recognized gross profit of $ 0 and $ 33,048 , respectively , on contract services for lmc in the years ended december 31 , 2013 and 2012. in the year ended december 31 , 2013 , grant costs exceeded revenues by $ 55,842 while for the year ended december 31 , 2012 revenues exceeded costs by $ 2,597. general and administrative expenses . general and administrative expenses increased by $ 369,179 , or 21 % , to $ 2,139,036 in the year ended december 31 , 2013 from $ 1,769,857 in the year ended december 31 , 2012. the increase was due primarily to higher stock compensation expense of $ 340,638 , personnel costs of $ 297,081 , severance costs of $ 97,369 , insurance costs of $ 45,378 and board fees of $ 37,500 partially offset by lower legal and professional fees of $ 512,026. professional fees in the year ended december 31 , 2012 included advisory warrants with a fair value of $ 670,947. research and development expenses . research and development expenses increased by $ 162,141 , or 15 % , to $ 1,212,298 in the year ended december 31 , 2013 from $ 1,050,157 in the year ended december 31 , 2012. the increase was due primarily to higher stock compensation expense of $ 118,881 and personnel costs of $ 83,022. sales and marketing expenses . sales and marketing expenses increased by $ 235,956 , or 107 % , to $ 457,292 in the year ended december 31 , 2013 from $ 221,336 in the year ended december 31 , 2012. the increase was due to higher personnel costs of $ 155,306 , contract sales representative fees of $

