you should review the “ risk factors ” section of this annual report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements described in the following discussion and analysis . overview we are a medical device company that develops and commercializes innovative platforms for performing minimally invasive surgical procedures in the brain and heart under direct , intra-procedural mri guidance . we have two product platforms . our clearpoint system , which is in commercial use , is used to perform minimally invasive surgical procedures in the brain . we anticipate that our cleartrace system , which is a product candidate still in development , will be used to perform minimally invasive surgical procedures in the heart . in 2015 , we suspended development of the cleartrace system so that we could focus our resources on the clearpoint system . both systems utilize intra-procedural mri to guide the procedures and are designed to work in a hospital 's existing mri suite . we believe that our two product platforms , subject to appropriate regulatory clearance and approval , will deliver better patient outcomes , enhance revenue potential for both physicians and hospitals , and reduce costs to the healthcare system . 41 in 2010 , we received regulatory clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . in 2011 , we also obtained ce marking approval for our clearpoint system , which enables us to sell our clearpoint system in the european union . substantially all of our product revenues for the years ended december 31 , 2015 and 2014 relate to sales of our clearpoint system products . we do not have regulatory clearance or approval to sell our cleartrace system for commercial use ; however , in 2014 we recognized an isolated sale of certain cleartrace system components to a research site for non-commercial use . we have financed our operations and internal growth primarily through the sale of equity securities , the issuance of convertible and other secured notes , and license arrangements . we have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development . as of december 31 , 2015 , we had an accumulated deficit of $ 85.9 million . we may continue to incur operating losses as we commercialize our clearpoint system products , continue to develop our cleartrace system , and expand our business . factors which may influence future results of operations the following is a description of factors which may influence our future results of operations , and which we believe are important to an understanding of our business and results of operations . revenues in june 2010 , we received 510 ( k ) clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . future revenues from sales of our clearpoint system products are difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling , general and administrative expenses . we can not sell our cleartrace system for commercial use until we receive regulatory clearance or approval . generating recurring revenues from the sale of disposable products is an important part of our business model for our clearpoint system . we anticipate that , over time , recurring revenues will constitute an increasing percentage of our total revenues as we leverage installations of our clearpoint system to generate recurring sales of our clearpoint disposable products . our product revenues were approximately $ 4.4 million for the year ended december 31 , 2015 , and were almost exclusively related to our clearpoint system . our revenue recognition policies are more fully described in the “ critical accounting policies and significant judgments and estimates ” section below . cost of product revenues cost of product revenues includes the direct costs associated with the assembly and purchase of components for disposable products and clearpoint system reusable products which we have sold , and for which we have recognized the revenue in accordance with our revenue recognition policy . cost of product revenues also includes the allocation of manufacturing overhead costs and depreciation of loaned systems installed under our clearpoint placement program , as well as provisions for obsolete , impaired , or excess inventory . cost of product revenues also includes similar applicable costs associated with the sale of any cleartrace system components for non-commercial use . research and development costs our research and development costs consist primarily of costs associated with the conceptualization , design , testing , and prototyping of our clearpoint system products and our cleartrace system components . such costs include salaries , travel , and benefits for research and development personnel , including related share-based compensation ; materials and laboratory supplies in research and development activities ; consultant costs ; sponsored research and product development with third parties ; and licensing costs related to technology not yet commercialized . we anticipate that , over time , our research and development expenses may increase as we : ( i ) continue to develop enhancements to our clearpoint system ; ( ii ) resume our cleartrace system product development efforts ; and ( iii ) expand our research to apply our technologies to additional product applications . from our inception through december 31 , 2015 , we have incurred approximately $ 45 million in research and development expenses . product development timelines , likelihood of success , and total costs can vary widely by product candidate . story_separator_special_tag cost of product revenues was $ 2.0 million for the year ended december 31 , 2015 , as compared with $ 1.9 million for the year ended december 31 , 2014 , representing gross margin on product revenues of 55 % for 2015 , compared to 43 % for 2014. the increase in gross margin was due primarily to : ( i ) a decrease of $ 300,000 from 2014 to 2015 in charges to the provision for obsolete and expired product ; ( ii ) increases in average unit selling prices and decreases in average unit costs due to more favorable pricing from vendors resulting from higher order quantities ; and ( iii ) lower production variances commensurate with higher production volumes , during the year ended december 31 , 2015 , when compared to the same period in 2014 , partially offset by a $ 95,000 increase in 2015 , relative to 2014 , in the allocation of indirect labor to production activities , commensurate with the company 's transition from research and development to commercial activities . research and development costs . research and development costs were $ 2.0 million for the year ended december 31 , 2015 , compared to $ 3.3 million for the same period last year , a decrease of $ 1.3 million , or 41 % . of the decrease , $ 649,000 related to a reduction in spending on our cleartrace development program , which is currently suspended , and $ 211,000 related to reductions in sponsored research . commensurate with these decreases , materials and supplies decreased $ 61,000 and compensation decreased $ 88,000 during the year ended december 31 , 2015 , as compared with the same period in 2014. also contributing to the decrease were reductions in 2015 of $ 63,000 in stock-based compensation and $ 111,000 in consulting and outside engineering expense , and an increase of $ 122,000 in 2015 in the allocation of research and development resources to production activities . selling , general and administrative expenses . selling , general and administrative expenses were $ 8.4 million for the year ended december 31 , 2015 , compared with $ 8.0 million for the same period last year , an increase of $ 332,000 , or 4 % . the increase was primarily attributable an increases during the year ended december 31 , 2015 of $ 310,000 in cash compensation costs and $ 371,000 in share-based compensation costs , partially offset by a $ 166,000 increase in the allocation of departmental resources to production activities . restructuring charges . in 2015 , we consolidated of all major business functions into our irvine , california headquarters . in connection with this consolidation , we closed our memphis , tennessee office . we did not retain any of our memphis-based employees . a total of seven employees were impacted by the consolidation , including three of our executives , whose termination of employment resulted in a modification in the terms of stock options previously granted to them . in connection with this consolidation , we recorded restructuring charges of $ 1.3 million during the year ended december 31 , 2015 , primarily related to severance costs , and to the revaluation of the stock options with modified terms described above and the resulting recording of additional non-cash , share-based compensation expense . gain on sale of intellectual property . during the year ended december 31 , 2014 , we recorded a gain of $ 4.3 million related to the sale of certain intellectual property to boston scientific . the purchase price was satisfied through the cancellation of convertible notes payable we previously issued to boston scientific in the aggregate principal amount of $ 4.3 million . we recorded a gain equal to the aggregate purchase price for the assets sold that previously had no cost basis for financial reporting purposes . 45 other income ( expense ) . during each of the years ended december 31 , 2015 and 2014 , we recorded gains of $ 1.5 million , resulting from changes in the fair value of our derivative liabilities associated with certain warrants we issued in equity private placement transactions . net other income was $ 231,000 and $ 252,000 for the years ended december 31 , 2015 and 2014 , respectively . other income for the year ended december 31 , 2015 related primarily to grants received for research , and for the year ended december 31 , 2014 other income related primarily to negotiated reductions in amounts payable to service providers . net interest expense for the year ended december 31 , 2015 was $ 1.2 million , compared with $ 1.0 million for the same period in 2014. the increase is due to an increase in the amortization of debt discount and deferred financing costs associated with prior year financing transactions , including such costs associated with the march 2014 private placement of notes payable that were outstanding during the entire year ended december 31 , 2015 , as compared with the approximate nine-month period the debt was outstanding during the year ended december 31 , 2014. story_separator_special_tag in connection with our march 2014 private placement of debt and warrants ; and ( ii ) net proceeds of $ 9.4 million received in connection with our december 2014 private placement of equity . off-balance sheet arrangements we are not a party to any off-balance sheet arrangements that have , or are reasonably likely to have , a material current or future effect on our financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . operating capital and capital expenditure requirements to date , we have not achieved profitability . we could continue to incur net losses as we continue our efforts to expand the commercialization of our clearpoint system products , develop our cleartrace system , and pursue additional applications for our technology platforms

liquidity and capital resources the cumulative net loss from the company 's inception through december 31 , 2015 was $ 85.7 million . net cash used in operating activities was $ 8.6 million for the year ended december 31 , 2015 and $ 7.3 million for the year ended december 31 , 2014. since inception , the company has financed its operations principally from the sale of equity securities , the issuance of notes payable and license arrangements . recent such financing activities consist of : ( i ) a december 2015 private placement of equity , which resulted in net proceeds of $ 4.7 million ; ( ii ) a december 2014 private placement of equity , which resulted in net proceeds of $ 9.3 million ; and ( iii ) a march 2014 private placement of debt and warrants , which resulted in net proceeds of $ 3.5 million . in addition , in march 2014 , the company completed a transaction with boston scientific that resulted in the cancellation of $ 4.3 million in related party convertible notes payable held by boston scientific , which were scheduled to mature in 2014 ( see note 6 to the consolidated financial statements included elsewhere in this annual report ) . the company 's plans for the next twelve months reflect management 's anticipation of increases in revenues from sales of the clearpoint system and related disposable products as a result of greater utilization at existing installed sites and the installation of the clearpoint system at new sites . management also anticipates maintaining recurring operating expenses at historical levels , with expected decreases in general and administrative expenses , resulting primarily from the operational restructuring discussed in note 5 to the consolidated financial statements included elsewhere in this annual report being offset by increases in selling and marketing expenses associated with the anticipated growth in revenues . however , there is no assurance that the company will be able to achieve its anticipated results , and even in the event such results are achieved , the company expects to continue to consume cash in its operations over at least the next twelve months .


 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 cumulative net loss from the company 's inception through december 31 , 2015 was $ 85.7 million . net cash used in operating activities was $ 8.6 million for the year ended december 31 , 2015 and $ 7.3 million for the year ended december 31 , 2014. since inception , the company has financed its operations principally from the sale of equity securities , the issuance of notes payable and license arrangements . recent such financing activities consist of : ( i ) a december 2015 private placement of equity , which resulted in net proceeds of $ 4.7 million ; ( ii ) a december 2014 private placement of equity , which resulted in net proceeds of $ 9.3 million ; and ( iii ) a march 2014 private placement of debt and warrants , which resulted in net proceeds of $ 3.5 million . in addition , in march 2014 , the company completed a transaction with boston scientific that resulted in the cancellation of $ 4.3 million in related party convertible notes payable held by boston scientific , which were scheduled to mature in 2014 ( see note 6 to the consolidated financial statements included elsewhere in this annual report ) . the company 's plans for the next twelve months reflect management 's anticipation of increases in revenues from sales of the clearpoint system and related disposable products as a result of greater utilization at existing installed sites and the installation of the clearpoint system at new sites . management also anticipates maintaining recurring operating expenses at historical levels , with expected decreases in general and administrative expenses , resulting primarily from the operational restructuring discussed in note 5 to the consolidated financial statements included elsewhere in this annual report being offset by increases in selling and marketing expenses associated with the anticipated growth in revenues . however , there is no assurance that the company will be able to achieve its anticipated results , and even in the event such results are achieved , the company expects to continue to consume cash in its operations over at least the next twelve months .
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 Suspicious Activity Report : you should review the “ risk factors ” section of this annual report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements described in the following discussion and analysis . overview we are a medical device company that develops and commercializes innovative platforms for performing minimally invasive surgical procedures in the brain and heart under direct , intra-procedural mri guidance . we have two product platforms . our clearpoint system , which is in commercial use , is used to perform minimally invasive surgical procedures in the brain . we anticipate that our cleartrace system , which is a product candidate still in development , will be used to perform minimally invasive surgical procedures in the heart . in 2015 , we suspended development of the cleartrace system so that we could focus our resources on the clearpoint system . both systems utilize intra-procedural mri to guide the procedures and are designed to work in a hospital 's existing mri suite . we believe that our two product platforms , subject to appropriate regulatory clearance and approval , will deliver better patient outcomes , enhance revenue potential for both physicians and hospitals , and reduce costs to the healthcare system . 41 in 2010 , we received regulatory clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . in 2011 , we also obtained ce marking approval for our clearpoint system , which enables us to sell our clearpoint system in the european union . substantially all of our product revenues for the years ended december 31 , 2015 and 2014 relate to sales of our clearpoint system products . we do not have regulatory clearance or approval to sell our cleartrace system for commercial use ; however , in 2014 we recognized an isolated sale of certain cleartrace system components to a research site for non-commercial use . we have financed our operations and internal growth primarily through the sale of equity securities , the issuance of convertible and other secured notes , and license arrangements . we have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development . as of december 31 , 2015 , we had an accumulated deficit of $ 85.9 million . we may continue to incur operating losses as we commercialize our clearpoint system products , continue to develop our cleartrace system , and expand our business . factors which may influence future results of operations the following is a description of factors which may influence our future results of operations , and which we believe are important to an understanding of our business and results of operations . revenues in june 2010 , we received 510 ( k ) clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . future revenues from sales of our clearpoint system products are difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling , general and administrative expenses . we can not sell our cleartrace system for commercial use until we receive regulatory clearance or approval . generating recurring revenues from the sale of disposable products is an important part of our business model for our clearpoint system . we anticipate that , over time , recurring revenues will constitute an increasing percentage of our total revenues as we leverage installations of our clearpoint system to generate recurring sales of our clearpoint disposable products . our product revenues were approximately $ 4.4 million for the year ended december 31 , 2015 , and were almost exclusively related to our clearpoint system . our revenue recognition policies are more fully described in the “ critical accounting policies and significant judgments and estimates ” section below . cost of product revenues cost of product revenues includes the direct costs associated with the assembly and purchase of components for disposable products and clearpoint system reusable products which we have sold , and for which we have recognized the revenue in accordance with our revenue recognition policy . cost of product revenues also includes the allocation of manufacturing overhead costs and depreciation of loaned systems installed under our clearpoint placement program , as well as provisions for obsolete , impaired , or excess inventory . cost of product revenues also includes similar applicable costs associated with the sale of any cleartrace system components for non-commercial use . research and development costs our research and development costs consist primarily of costs associated with the conceptualization , design , testing , and prototyping of our clearpoint system products and our cleartrace system components . such costs include salaries , travel , and benefits for research and development personnel , including related share-based compensation ; materials and laboratory supplies in research and development activities ; consultant costs ; sponsored research and product development with third parties ; and licensing costs related to technology not yet commercialized . we anticipate that , over time , our research and development expenses may increase as we : ( i ) continue to develop enhancements to our clearpoint system ; ( ii ) resume our cleartrace system product development efforts ; and ( iii ) expand our research to apply our technologies to additional product applications . from our inception through december 31 , 2015 , we have incurred approximately $ 45 million in research and development expenses . product development timelines , likelihood of success , and total costs can vary widely by product candidate . story_separator_special_tag cost of product revenues was $ 2.0 million for the year ended december 31 , 2015 , as compared with $ 1.9 million for the year ended december 31 , 2014 , representing gross margin on product revenues of 55 % for 2015 , compared to 43 % for 2014. the increase in gross margin was due primarily to : ( i ) a decrease of $ 300,000 from 2014 to 2015 in charges to the provision for obsolete and expired product ; ( ii ) increases in average unit selling prices and decreases in average unit costs due to more favorable pricing from vendors resulting from higher order quantities ; and ( iii ) lower production variances commensurate with higher production volumes , during the year ended december 31 , 2015 , when compared to the same period in 2014 , partially offset by a $ 95,000 increase in 2015 , relative to 2014 , in the allocation of indirect labor to production activities , commensurate with the company 's transition from research and development to commercial activities . research and development costs . research and development costs were $ 2.0 million for the year ended december 31 , 2015 , compared to $ 3.3 million for the same period last year , a decrease of $ 1.3 million , or 41 % . of the decrease , $ 649,000 related to a reduction in spending on our cleartrace development program , which is currently suspended , and $ 211,000 related to reductions in sponsored research . commensurate with these decreases , materials and supplies decreased $ 61,000 and compensation decreased $ 88,000 during the year ended december 31 , 2015 , as compared with the same period in 2014. also contributing to the decrease were reductions in 2015 of $ 63,000 in stock-based compensation and $ 111,000 in consulting and outside engineering expense , and an increase of $ 122,000 in 2015 in the allocation of research and development resources to production activities . selling , general and administrative expenses . selling , general and administrative expenses were $ 8.4 million for the year ended december 31 , 2015 , compared with $ 8.0 million for the same period last year , an increase of $ 332,000 , or 4 % . the increase was primarily attributable an increases during the year ended december 31 , 2015 of $ 310,000 in cash compensation costs and $ 371,000 in share-based compensation costs , partially offset by a $ 166,000 increase in the allocation of departmental resources to production activities . restructuring charges . in 2015 , we consolidated of all major business functions into our irvine , california headquarters . in connection with this consolidation , we closed our memphis , tennessee office . we did not retain any of our memphis-based employees . a total of seven employees were impacted by the consolidation , including three of our executives , whose termination of employment resulted in a modification in the terms of stock options previously granted to them . in connection with this consolidation , we recorded restructuring charges of $ 1.3 million during the year ended december 31 , 2015 , primarily related to severance costs , and to the revaluation of the stock options with modified terms described above and the resulting recording of additional non-cash , share-based compensation expense . gain on sale of intellectual property . during the year ended december 31 , 2014 , we recorded a gain of $ 4.3 million related to the sale of certain intellectual property to boston scientific . the purchase price was satisfied through the cancellation of convertible notes payable we previously issued to boston scientific in the aggregate principal amount of $ 4.3 million . we recorded a gain equal to the aggregate purchase price for the assets sold that previously had no cost basis for financial reporting purposes . 45 other income ( expense ) . during each of the years ended december 31 , 2015 and 2014 , we recorded gains of $ 1.5 million , resulting from changes in the fair value of our derivative liabilities associated with certain warrants we issued in equity private placement transactions . net other income was $ 231,000 and $ 252,000 for the years ended december 31 , 2015 and 2014 , respectively . other income for the year ended december 31 , 2015 related primarily to grants received for research , and for the year ended december 31 , 2014 other income related primarily to negotiated reductions in amounts payable to service providers . net interest expense for the year ended december 31 , 2015 was $ 1.2 million , compared with $ 1.0 million for the same period in 2014. the increase is due to an increase in the amortization of debt discount and deferred financing costs associated with prior year financing transactions , including such costs associated with the march 2014 private placement of notes payable that were outstanding during the entire year ended december 31 , 2015 , as compared with the approximate nine-month period the debt was outstanding during the year ended december 31 , 2014. story_separator_special_tag in connection with our march 2014 private placement of debt and warrants ; and ( ii ) net proceeds of $ 9.4 million received in connection with our december 2014 private placement of equity . off-balance sheet arrangements we are not a party to any off-balance sheet arrangements that have , or are reasonably likely to have , a material current or future effect on our financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . operating capital and capital expenditure requirements to date , we have not achieved profitability . we could continue to incur net losses as we continue our efforts to expand the commercialization of our clearpoint system products , develop our cleartrace system , and pursue additional applications for our technology platforms

