on april 2 , 2010 , by majority shareholder consent , we adopted our 2010 equity incentive plan . reserved for equity issuances under the equity incentive plan are 50,000,000 shares of our common stock . on june 1 , 2010 , by majority shareholder consent , we adopted our 2010 service provider stock compensation plan . reserved for equity issuances under the service provider stock compensation plan are 50,000,000 shares of our common stock . on july 21 , 2010 , we registered the common stock issuable under the 2010 equity incentive plan and the 2010 service provider stock compensation plan . a total of 100,000,000 shares are reserved for issuances under the two plans . merger or acquisition pending in 2015 we have not entered into definite agreements or decisions about any business combination opportunities , although we have entered into the letter of intent with prg . we have also had several discussions with interested parties that appeared to be promising . we continue to explore potential merger and acquisition options . discontinued operation fiber optic contract installations peaked for 2010 in the summer months . although this market is seasonal and slow in the fall and winter months , we did not secure meaningful subcontract work during 2011. we have chosen not to pursue fiber optic network installations and have discontinued this area of our business . we also no longer manufacture our multi-mission mobile video . we have removed the mini from our product line . and we have not sold any of our viewmaxx digital videos in over four years . form s-1 registration statement declared effective on march 10 , 2014 , we filed a registration statement with the securities and exchange commission form s-1 to register 100,000,000 shares of our common stock at a per share price of $ 0.04 to raise up to $ 4,000,000.00 in proceeds and to register 6,000,000 shares on behalf of two selling shareholders . the sec file number of the registration statement is 333-169804. the form s-1 registration statement was declared effective by the sec on august 14 , 2014. the stated primary purposes of the offering are to obtain additional capital to : ( 1 ) facilitate product fulfillment ( manufacturing , packaging and shipment ) , which we anticipate will enable future orders to be self funding ; ( 2 ) provide working capital to finance corporate acquisitions and the integration of new technologies ; and ( 3 ) retire debt through cash payment or the exchange of debt obligations with payment in registered common stock . the offering price for our shares registered in the offering is $ 0.04 per share for an aggregate offering price of $ 4,000,000.00. having our registration statement declared effective proved to be only the first step in pursuit of restructuring our debts with the help of a registered securities offering . two circumstances , which may be related , prevented our progress : ( 1 ) we have not secured a suitable investment banking relationship through which to underwrite all or part of the offering ; and ( 2 ) our common stock traded in 2011 at share prices below the $ 0.02 per share fixed price of the offering , making it impossible to find public buyers for registered stock . we anticipate that we will have greater success in 2014 in selling stock registered in an offering because in our first quarter of 2012 we made our first sales of our registered shares . results of operations for fiscal years ended december 31 , 2014 and december 31 , 2013 the following discussions are based on the consolidated financial statements of view systems and its subsidiaries . these charts and discussions summarize our financial statements for the years ended december 31 , 2014 and 2013 and should be read in conjunction with the financial statements , and notes thereto , included with this annual report . 26 replace_table_token_2_th revenue is generally considered earned when the product is shipped to the customer . the concealed weapons detection system and the digital video system each require installation and training . training is a revenue source separate and apart from the sale of the product . in those cases revenue is recognized at the completion of the installation and training . the following chart provides a breakdown of our sales in 2014 and 2013. replace_table_token_3_th our sales backlog at december 31 , 2014 and december 31 , 2013 was $ -0 . in the event there is a delay between the time of the purchase order and shipping of the product , this results in a delay of recognition of the revenue from the sale . this delay in recognition of revenues will continue as part of our results of operations . we measure backlog as orders for which a purchase order or contract has been signed or a verbal commitment for order or delivery has been made , but which has not yet been shipped and for which revenues have not been recognized . we typically ship our products weeks or months after receiving an order . however , we are attempting to shorten this lead time to several weeks . also , product shipments may require more lead-time and may be delayed for a variety of reasons beyond our control , including additional time necessary to conduct product inspections prior to shipping , design or specification changes by the customer , the customer 's need to prepare an installation site , and delays caused by other contractors on the project . in previous fiscal years , we have had a back log because we do not hold unsold units in inventory . story_separator_special_tag 28 during fiscal year ended december 31 , 2014 , our professional fees consisted of : ( i ) accounting fees of $ 102,329 ; ( ii ) engineering fees of $ 168,833 ; ( iii ) legal fees of $ 37,338 ; ( iv ) marketing and promotional fees of $ 243,728 ; ( v ) management and operations of $ 181,100 ; ( vi ) investor relations of $ 82,500 ; and ( vii ) programming of $ 1,409. operating expenses incurred during fiscal year ended december 31 , 2014 compared to fiscal year ended december 31 , 2013 decreased primarily due to the decrease in professional fees of $ 219,967. thus , our loss from operations during fiscal year ended december 31 , 2014 was ( $ 1,316,425 ) compared to a loss from operations of ( $ 1,513,698 ) during fiscal year ended december 31 , 2013. during fiscal year ended december 31 , 2014 , we realized other expense in the total amount of ( $ 21,720 ) consisting of gain from renegotiated debt of $ 9,234 , which was offset by interest expense of $ 30,954. during fiscal year ended december 31 , 2013 , we realized other expense in the total amount of ( $ 494.403 ) consisting of gain from renegotiated debt of $ 43,561 , which was offset by stock compensation expense of $ 450,000 , bad debt of $ 7,848 and interest expense of $ 80,116. the decrease in interest expense was due to a decrease in interest bearing notes payable . during fiscal year ended december 31 , 2013 , we realized stock compensation based on issuance of shares as compensation for salaries . therefore , this resulted in total other expense during fiscal year ended december 31 , 2014 of ( $ 21.720 ) compared to total other expense during fiscal year ended december 31 , 2013 of ( $ 494,403 ) . after deducting other expense , we realized a net loss of ( $ 1,338,145 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2014 compared to a net loss of ( $ 2,008,101 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2013. the weighted average number of shares outstanding was 261,754,044 for fiscal year ended december 31 , 2014 compared to 194,843,005 for fiscal year ended december 31 , 2013. liquidity , capital resources and going concern fiscal year ended december 31 , 2014 as of december 31 , 2014 , our current assets were $ 40,910 and our current liabilities were $ 1,548,964 , which resulted in a working capital deficit of $ 1,508,054. as of december 31 , 2014 , current assets were comprised of : ( i ) $ 13,077 in cash ; ( ii ) $ 26,745 in accounts receivable ( net of allowance for doubtful accounts of $ -0- ) ; and ( iii ) $ 1,088 in inventory . as of december 31 , 2014 , current liabilities were comprised of : ( i ) $ 497,787 in accounts payable and accrued expenses ; ( ii ) $ 565 in deferred compensation ; ( iii ) $ 174,405 in accrued and withheld payroll taxes payable ; ( iv ) $ 65,625 in accrued interest payable ; ( v ) $ 225,000 in accrued royalties payable ; ( vi ) $ 432,293 in loans from stockholders ; ( vii ) $ 80,121 in notes payable ; and ( viii ) deferred revenue of $ 73,168. as of december 31 , 2014 , our total assets were $ 47,704 comprised of : ( i ) $ 40,910 in current assets ; ( ii ) property and equipment ( net ) of $ 3,922 ; and ( iii ) $ 2,872 in deposits . the decrease in total assets during fiscal year ended december 31 , 2014 from fiscal year ended december 31 , 2013 was primarily due to the substantial decrease in inventory , cash and prepaid expenses . as of december 31 , 2014 , our total liabilities were $ 1,560,025 comprised of : ( i ) $ 1,419,772 in current liabilities ; and ( ii ) $ 11,061 in long term portion of notes payable . the increase in liabilities during fiscal year ended december 31 , 2014 from fiscal year ended december 31 , 2013 was primarily due to the increase in accounts payable and accrued expenses and loans from stockholders . stockholders ' deficit decreased from ( $ 1,296,106 ) for fiscal year ended december 31 , 2013 to ( $ 1,512,321 ) for fiscal year ended december 31 , 2014 . 29 story_separator_special_tag left `` > investor an unsecured loan from an investor , payable in monthly installments of $ 5,000 commencing july 1 , 2013 until paid in full . — 45,000 stockholder demand loan payable with interest at 5 % per month dated september 18 , 2009. the loan is secured by the company 's accounts receivable . the note was payable in full on december 17 , 2009 and is currently in default 50,000 50,000 chase equipment loan to finance the purchases of a truck , payable monthly in installments of $ 533 , which include interest at 5.34 % per annum . $ 91,182 $ 172,214 total $ 91,182 $ 172,214 off balance sheet arrangements we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to investors . 31 contractual obligations as a “ smaller reporting company ” as defined by item 10 of regulation s-k , we are not required to provide this information . critical accounting policies we have three main products , namely the concealed weapons detection system , the visual

cash flows from operating activities we have not generated positive cash flows from operating activities . for fiscal year ended december 31 , 2014 , net cash flows used in operating activities was $ 172,367 compared to $ 784,570 for fiscal year ended december 31 , 2013. net cash flows used in operating activities consisted primarily of a net loss of $ 1,338,145 ( 2013 : $ 2,008,101 ) , which was partially adjusted by : ( i ) $ 6,470 ( 2013 : $ 12,597 ) in depreciation ; ( ii ) $ 591,930 ( 2013 : $ 585,438 ) in common stock issued for payment of services ; ( ii ) $ 480,000 ( 2013 : $ 225,000 ) in preferred stock issued for services ; ( iii ) $ -0- ( 2013 : $ 450,000 ) in stock option expense ; ( iv ) $ -0- ( 2013 : $ 7,848 ) in bad debt ; ( v ) a gain of ( $ 9,234 ) ( 2013 : ( $ 43,561 ) ) from re-negotiated debt ; and ( vi ) $ 2,841 ( 2012 : $ -0- ) in interest expense paid with debt . net cash flows used in operating activities was further changed by : ( i ) decrease of $ 19,679 ( 2013 : decrease of $ 12,597 ) in accounts receivable ; ( ii ) decrease of $ 23,021 ( 2013 : ( $ 117,956 ) in inventory ; ( iii ) decrease of $ 32,889 ( 2013 : ( $ -0- ) in pre-paid expenses ; ( iv ) increase of $ 54,218 ( 2013 : decrease of $ 188,953 ) in accounts payable and accrued expenses ; ( v ) decrease of $ 13,625 ( 2013 : an increase of $ 14,623 ) in deferred compensation ; ( vi ) an increase of $ 3,896 ( 2013 : $ 14,623 ) in payroll taxes accrued and withheld ; ( vii ) an increase of $ 22,500 ( 2013 : $ 36,960 ) in accrued interest ; and ( viii ) a decrease of $ 48,807 ( 2013 : ( $ 94.001 ) in deferred revenue .


 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 we have not generated positive cash flows from operating activities . for fiscal year ended december 31 , 2014 , net cash flows used in operating activities was $ 172,367 compared to $ 784,570 for fiscal year ended december 31 , 2013. net cash flows used in operating activities consisted primarily of a net loss of $ 1,338,145 ( 2013 : $ 2,008,101 ) , which was partially adjusted by : ( i ) $ 6,470 ( 2013 : $ 12,597 ) in depreciation ; ( ii ) $ 591,930 ( 2013 : $ 585,438 ) in common stock issued for payment of services ; ( ii ) $ 480,000 ( 2013 : $ 225,000 ) in preferred stock issued for services ; ( iii ) $ -0- ( 2013 : $ 450,000 ) in stock option expense ; ( iv ) $ -0- ( 2013 : $ 7,848 ) in bad debt ; ( v ) a gain of ( $ 9,234 ) ( 2013 : ( $ 43,561 ) ) from re-negotiated debt ; and ( vi ) $ 2,841 ( 2012 : $ -0- ) in interest expense paid with debt . net cash flows used in operating activities was further changed by : ( i ) decrease of $ 19,679 ( 2013 : decrease of $ 12,597 ) in accounts receivable ; ( ii ) decrease of $ 23,021 ( 2013 : ( $ 117,956 ) in inventory ; ( iii ) decrease of $ 32,889 ( 2013 : ( $ -0- ) in pre-paid expenses ; ( iv ) increase of $ 54,218 ( 2013 : decrease of $ 188,953 ) in accounts payable and accrued expenses ; ( v ) decrease of $ 13,625 ( 2013 : an increase of $ 14,623 ) in deferred compensation ; ( vi ) an increase of $ 3,896 ( 2013 : $ 14,623 ) in payroll taxes accrued and withheld ; ( vii ) an increase of $ 22,500 ( 2013 : $ 36,960 ) in accrued interest ; and ( viii ) a decrease of $ 48,807 ( 2013 : ( $ 94.001 ) in deferred revenue .
```    
 Suspicious Activity Report : on april 2 , 2010 , by majority shareholder consent , we adopted our 2010 equity incentive plan . reserved for equity issuances under the equity incentive plan are 50,000,000 shares of our common stock . on june 1 , 2010 , by majority shareholder consent , we adopted our 2010 service provider stock compensation plan . reserved for equity issuances under the service provider stock compensation plan are 50,000,000 shares of our common stock . on july 21 , 2010 , we registered the common stock issuable under the 2010 equity incentive plan and the 2010 service provider stock compensation plan . a total of 100,000,000 shares are reserved for issuances under the two plans . merger or acquisition pending in 2015 we have not entered into definite agreements or decisions about any business combination opportunities , although we have entered into the letter of intent with prg . we have also had several discussions with interested parties that appeared to be promising . we continue to explore potential merger and acquisition options . discontinued operation fiber optic contract installations peaked for 2010 in the summer months . although this market is seasonal and slow in the fall and winter months , we did not secure meaningful subcontract work during 2011. we have chosen not to pursue fiber optic network installations and have discontinued this area of our business . we also no longer manufacture our multi-mission mobile video . we have removed the mini from our product line . and we have not sold any of our viewmaxx digital videos in over four years . form s-1 registration statement declared effective on march 10 , 2014 , we filed a registration statement with the securities and exchange commission form s-1 to register 100,000,000 shares of our common stock at a per share price of $ 0.04 to raise up to $ 4,000,000.00 in proceeds and to register 6,000,000 shares on behalf of two selling shareholders . the sec file number of the registration statement is 333-169804. the form s-1 registration statement was declared effective by the sec on august 14 , 2014. the stated primary purposes of the offering are to obtain additional capital to : ( 1 ) facilitate product fulfillment ( manufacturing , packaging and shipment ) , which we anticipate will enable future orders to be self funding ; ( 2 ) provide working capital to finance corporate acquisitions and the integration of new technologies ; and ( 3 ) retire debt through cash payment or the exchange of debt obligations with payment in registered common stock . the offering price for our shares registered in the offering is $ 0.04 per share for an aggregate offering price of $ 4,000,000.00. having our registration statement declared effective proved to be only the first step in pursuit of restructuring our debts with the help of a registered securities offering . two circumstances , which may be related , prevented our progress : ( 1 ) we have not secured a suitable investment banking relationship through which to underwrite all or part of the offering ; and ( 2 ) our common stock traded in 2011 at share prices below the $ 0.02 per share fixed price of the offering , making it impossible to find public buyers for registered stock . we anticipate that we will have greater success in 2014 in selling stock registered in an offering because in our first quarter of 2012 we made our first sales of our registered shares . results of operations for fiscal years ended december 31 , 2014 and december 31 , 2013 the following discussions are based on the consolidated financial statements of view systems and its subsidiaries . these charts and discussions summarize our financial statements for the years ended december 31 , 2014 and 2013 and should be read in conjunction with the financial statements , and notes thereto , included with this annual report . 26 replace_table_token_2_th revenue is generally considered earned when the product is shipped to the customer . the concealed weapons detection system and the digital video system each require installation and training . training is a revenue source separate and apart from the sale of the product . in those cases revenue is recognized at the completion of the installation and training . the following chart provides a breakdown of our sales in 2014 and 2013. replace_table_token_3_th our sales backlog at december 31 , 2014 and december 31 , 2013 was $ -0 . in the event there is a delay between the time of the purchase order and shipping of the product , this results in a delay of recognition of the revenue from the sale . this delay in recognition of revenues will continue as part of our results of operations . we measure backlog as orders for which a purchase order or contract has been signed or a verbal commitment for order or delivery has been made , but which has not yet been shipped and for which revenues have not been recognized . we typically ship our products weeks or months after receiving an order . however , we are attempting to shorten this lead time to several weeks . also , product shipments may require more lead-time and may be delayed for a variety of reasons beyond our control , including additional time necessary to conduct product inspections prior to shipping , design or specification changes by the customer , the customer 's need to prepare an installation site , and delays caused by other contractors on the project . in previous fiscal years , we have had a back log because we do not hold unsold units in inventory . story_separator_special_tag 28 during fiscal year ended december 31 , 2014 , our professional fees consisted of : ( i ) accounting fees of $ 102,329 ; ( ii ) engineering fees of $ 168,833 ; ( iii ) legal fees of $ 37,338 ; ( iv ) marketing and promotional fees of $ 243,728 ; ( v ) management and operations of $ 181,100 ; ( vi ) investor relations of $ 82,500 ; and ( vii ) programming of $ 1,409. operating expenses incurred during fiscal year ended december 31 , 2014 compared to fiscal year ended december 31 , 2013 decreased primarily due to the decrease in professional fees of $ 219,967. thus , our loss from operations during fiscal year ended december 31 , 2014 was ( $ 1,316,425 ) compared to a loss from operations of ( $ 1,513,698 ) during fiscal year ended december 31 , 2013. during fiscal year ended december 31 , 2014 , we realized other expense in the total amount of ( $ 21,720 ) consisting of gain from renegotiated debt of $ 9,234 , which was offset by interest expense of $ 30,954. during fiscal year ended december 31 , 2013 , we realized other expense in the total amount of ( $ 494.403 ) consisting of gain from renegotiated debt of $ 43,561 , which was offset by stock compensation expense of $ 450,000 , bad debt of $ 7,848 and interest expense of $ 80,116. the decrease in interest expense was due to a decrease in interest bearing notes payable . during fiscal year ended december 31 , 2013 , we realized stock compensation based on issuance of shares as compensation for salaries . therefore , this resulted in total other expense during fiscal year ended december 31 , 2014 of ( $ 21.720 ) compared to total other expense during fiscal year ended december 31 , 2013 of ( $ 494,403 ) . after deducting other expense , we realized a net loss of ( $ 1,338,145 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2014 compared to a net loss of ( $ 2,008,101 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2013. the weighted average number of shares outstanding was 261,754,044 for fiscal year ended december 31 , 2014 compared to 194,843,005 for fiscal year ended december 31 , 2013. liquidity , capital resources and going concern fiscal year ended december 31 , 2014 as of december 31 , 2014 , our current assets were $ 40,910 and our current liabilities were $ 1,548,964 , which resulted in a working capital deficit of $ 1,508,054. as of december 31 , 2014 , current assets were comprised of : ( i ) $ 13,077 in cash ; ( ii ) $ 26,745 in accounts receivable ( net of allowance for doubtful accounts of $ -0- ) ; and ( iii ) $ 1,088 in inventory . as of december 31 , 2014 , current liabilities were comprised of : ( i ) $ 497,787 in accounts payable and accrued expenses ; ( ii ) $ 565 in deferred compensation ; ( iii ) $ 174,405 in accrued and withheld payroll taxes payable ; ( iv ) $ 65,625 in accrued interest payable ; ( v ) $ 225,000 in accrued royalties payable ; ( vi ) $ 432,293 in loans from stockholders ; ( vii ) $ 80,121 in notes payable ; and ( viii ) deferred revenue of $ 73,168. as of december 31 , 2014 , our total assets were $ 47,704 comprised of : ( i ) $ 40,910 in current assets ; ( ii ) property and equipment ( net ) of $ 3,922 ; and ( iii ) $ 2,872 in deposits . the decrease in total assets during fiscal year ended december 31 , 2014 from fiscal year ended december 31 , 2013 was primarily due to the substantial decrease in inventory , cash and prepaid expenses . as of december 31 , 2014 , our total liabilities were $ 1,560,025 comprised of : ( i ) $ 1,419,772 in current liabilities ; and ( ii ) $ 11,061 in long term portion of notes payable . the increase in liabilities during fiscal year ended december 31 , 2014 from fiscal year ended december 31 , 2013 was primarily due to the increase in accounts payable and accrued expenses and loans from stockholders . stockholders ' deficit decreased from ( $ 1,296,106 ) for fiscal year ended december 31 , 2013 to ( $ 1,512,321 ) for fiscal year ended december 31 , 2014 . 29 story_separator_special_tag left `` > investor an unsecured loan from an investor , payable in monthly installments of $ 5,000 commencing july 1 , 2013 until paid in full . — 45,000 stockholder demand loan payable with interest at 5 % per month dated september 18 , 2009. the loan is secured by the company 's accounts receivable . the note was payable in full on december 17 , 2009 and is currently in default 50,000 50,000 chase equipment loan to finance the purchases of a truck , payable monthly in installments of $ 533 , which include interest at 5.34 % per annum . $ 91,182 $ 172,214 total $ 91,182 $ 172,214 off balance sheet arrangements we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to investors . 31 contractual obligations as a “ smaller reporting company ” as defined by item 10 of regulation s-k , we are not required to provide this information . critical accounting policies we have three main products , namely the concealed weapons detection system , the visual

