our technology generates secure connections on a zero-click or single-click basis , significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information . our product gabriel secure communication platform , unlike other collaboration and communication products and services on the market today , does not require access to user 's confidential data and minimizes the threat of hacking and data mining . it enables individuals and organizations to maintain complete ownership and control over their personal and confidential data , secured within their own private network , while enabling authorized secure encrypted access from anywhere at any time . our gabriel collaboration suite is a set of applications that run on top of our gabriel secure communication platform . it enables seamless and secure cross-platform communications between user 's devices that have our software installed . our gabriel collaboration suite is available for download and free trial , for android , ios , windows , linux and mac os x platforms , at http : //www.gabrielsecure.com/ . we continue to enhance our products and add new functionality to our products . we will provide updates to new and existing customers as they are released to the general public . we have signed patent license agreements with avaya inc. , aastra usa , inc. , microsoft , mitel networks corporation , nec corporation and nec corporation of america , siemens enterprise communications gmbh & co. kg , and siemens enterprise communications inc. to license certain of our patents , for a one-time payment and or an ongoing royalty for all future sales through the expiration of the licensed patents with respect to certain current 26 and future ip-encrypted products . we have engaged ipvalue management inc. to assist us in commercializing our portfolio of patents on securing real-time communications over the internet . under the multi-year agreement , ipvalue will originate and assist us with negotiating transactions related to patent licensing worldwide with respect to certain third parties . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at leidos , is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at leidos , and expanded the set of patents we acquired in 2006 from leidos , into a larger portfolio with over 100 u.s. and international patents with over 75 pending applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . see – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years discussed below . we intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by , for example , offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . developments in the year ended december 31 , 2015 litigation we have one intellectual property infringement lawsuit pending against apple , inc. in the united states district court for the eastern district of texas , tyler division , pursuant to which we allege that this party infringes on certain of our patents . we seek damages and injunctive relief in all the complaints . virnetx inc. v. apple , inc. ( case 6:12-cv-00855-led ) – consolidated lead case on march 30 , 2015 , the united states court for the eastern district of texas , tyler division , issued an order finding substantial overlap between the remanded portions of the civil action case 6:10-cv-00417-led ( virnetx vs. cisco et . al . ) , and the ongoing civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) . the court consolidated the two civil actions under civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) and designated it as the lead case . the jury trial in this case was held on january 25 , 2016. on february 4 , 2016 , a jury in the united states court for the eastern district of texas , tyler division , awarded us $ 625.6 million in a verdict against apple corporation for infringing four of our us patents , marking it the second time a federal jury has found apple liable for infringing virnetx 's patented technology . the verdict includes royalties awarded to us based on an earlier patent infringement finding ( case 6:10-cv-00417-led ) against apple . the jury found that apple 's modified vpn on-demand , imessage and facetime services infringed virnetx 's patents and that apple 's infringement was willful . in addition to determining the royalty owed by apple for its prior infringement , this verdict also includes an award based on the jury 's finding that apple 's modified vpn on demand , imessage and facetime services have continued to infringe virnetx 's patents . in its order , issued on february 16 , 2016 , the court has set all post-trial motions for hearing on may 25 , 2016 at 10:00 a.m. in the united states court for the eastern district of texas , texarkana division . story_separator_special_tag in each of these cases , since delivery has occurred , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price , and determined that collectability is reasonably assured . current royalty payments : ongoing royalty payments cover a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . licensees that owe these current royalty payments are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we expect to receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we will recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is limited . non-refundable up-front fees and minimum fee contracts : for licenses that provide for non-refundable up-front or fixed minimum fees over their term , for which we have no future obligations or performance requirements , revenue is generally recognized over the license term . for licenses that provide for fees that are not fixed or determinable , including licenses that provide for extended payment terms and or payment of a significant portion of the fee after expiration of the license or more than 12 months after delivery , the fees are generally presumed not to be fixed or determinable , and revenue is deferred and recognized as earned , but not in advance of collection . non-royalty elements : elements that are not related to royalty revenue in nature , such as settlement fees , expense reimbursement , and damages , if any , are recorded as gain from settlement which is reflected as a separate line item within the operating expenses section in the consolidated statements of operations . deferred revenue in august 2013 we began receiving annual payments on a contract that requires payment to us over 4 years of $ 10,000 ( august 2013 contract settlement ) . from the inception of that license to december 31 , 2015 , we received cash totaling $ 7,500 , all of which is non-refundable . we recognized $ 1,500 , $ 1,167 and $ 1,833 of revenue related to the august 2013 contract settlement during the years ended december 31 , 2015 , 2014 and 2013 respectively . activity under the august 2013 contract settlement was as follows ( in thousands ) : replace_table_token_4_th royalty expense royalty expense for the years ended december 31 , 2015 , 2014 and 2013 was $ 5,265 , $ 6,100 and zero respectively , and was a result of our royalty agreement with leidos . there was no expense for the year ended december 31 , 2013. the agreement provides for revenue sharing and legal reimbursements related to attorney time and expenses incurred by leidos during discovery and other aspects of litigation matters that have been resolved . earnings per share basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period . diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued . during the years ended 2015 , 2014 and 2013 we incurred losses . therefore , the effect of any common stock equivalent is anti-dilutive during those periods . 31 concentration of credit risk and other risks and uncertainties our cash and cash equivalents are primarily maintained at two major financial institutions in the united states . a portion of those balances are insured by the federal deposit insurance corporation . during the year ended december 31 , 2015 , and 2014 we had , at times , funds which were uninsured . we do not believe that we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships with major financial institutions . we have not experienced any losses on our deposits of cash and cash equivalents . derivative instruments our series i warrants contained an anti-dilution provision which prevented them from being considered indexed to our stock . as a result , the warrants were required to be accounted for as derivative instruments . the remaining balance of series 1 warrants expired during the year ended december 31 , 2015. we recognize derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value . we record changes in the fair value ( i.e . , gains or losses ) of the derivatives in the accompanying consolidated statements of operations . impairment of long-lived assets we identify and record impairment losses on long-lived assets used in operations when events and changes in circumstances indicate that the carrying amount of an asset might not be recoverable , but not less than annually . recoverability is measured by comparison of the anticipated future net undiscounted cash flows to the related assets ' carrying value . if 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 projected discounted future net cash flows arising from the asset . income taxes we account for income taxes using the asset and liability method . the asset and liability method requires the recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial

liquidity and capital resources for the year ended december 31 , 2015 , our cash and cash equivalents totaled $ 8,726 and our short-term investments totaled $ 9,954 compared to $ 18,658 and $ 22,571 , respectively , for the year ended december 31 , 2014 and $ 19,173 and $ 19,815 respectively , as of december 31 , 2013. we expect that our cash and cash equivalents and short-term investments as of december 31 , 2015 will be sufficient to fund our current operations and provide working capital for general corporate purposes and legal expenses for the foreseeable future . we may undertake additional opportunities to seek to grow our business and as a result , we may seek to raise capital in some form within the next twelve months including the actions described below under universal shelf registration and atm offering . over the long term , we expect to derive the majority of our revenue from license fees and royalties associated with our patent portfolio , technology , software and secure domain name registry in the united states and other markets around the world . universal shelf registration and atm offering on august 21 , 2015 we filed a universal shelf registrationstatement with the u.s. securities and exchange commission enabling us to offer and sell from time to time up to $ 100 million of equity , debt or other types of 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.
     ```liquidity and capital resources for the year ended december 31 , 2015 , our cash and cash equivalents totaled $ 8,726 and our short-term investments totaled $ 9,954 compared to $ 18,658 and $ 22,571 , respectively , for the year ended december 31 , 2014 and $ 19,173 and $ 19,815 respectively , as of december 31 , 2013. we expect that our cash and cash equivalents and short-term investments as of december 31 , 2015 will be sufficient to fund our current operations and provide working capital for general corporate purposes and legal expenses for the foreseeable future . we may undertake additional opportunities to seek to grow our business and as a result , we may seek to raise capital in some form within the next twelve months including the actions described below under universal shelf registration and atm offering . over the long term , we expect to derive the majority of our revenue from license fees and royalties associated with our patent portfolio , technology , software and secure domain name registry in the united states and other markets around the world . universal shelf registration and atm offering on august 21 , 2015 we filed a universal shelf registrationstatement with the u.s. securities and exchange commission enabling us to offer and sell from time to time up to $ 100 million of equity , debt or other types of securities .
```    
 Suspicious Activity Report : our technology generates secure connections on a zero-click or single-click basis , significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information . our product gabriel secure communication platform , unlike other collaboration and communication products and services on the market today , does not require access to user 's confidential data and minimizes the threat of hacking and data mining . it enables individuals and organizations to maintain complete ownership and control over their personal and confidential data , secured within their own private network , while enabling authorized secure encrypted access from anywhere at any time . our gabriel collaboration suite is a set of applications that run on top of our gabriel secure communication platform . it enables seamless and secure cross-platform communications between user 's devices that have our software installed . our gabriel collaboration suite is available for download and free trial , for android , ios , windows , linux and mac os x platforms , at http : //www.gabrielsecure.com/ . we continue to enhance our products and add new functionality to our products . we will provide updates to new and existing customers as they are released to the general public . we have signed patent license agreements with avaya inc. , aastra usa , inc. , microsoft , mitel networks corporation , nec corporation and nec corporation of america , siemens enterprise communications gmbh & co. kg , and siemens enterprise communications inc. to license certain of our patents , for a one-time payment and or an ongoing royalty for all future sales through the expiration of the licensed patents with respect to certain current 26 and future ip-encrypted products . we have engaged ipvalue management inc. to assist us in commercializing our portfolio of patents on securing real-time communications over the internet . under the multi-year agreement , ipvalue will originate and assist us with negotiating transactions related to patent licensing worldwide with respect to certain third parties . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at leidos , is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at leidos , and expanded the set of patents we acquired in 2006 from leidos , into a larger portfolio with over 100 u.s. and international patents with over 75 pending applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . see – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years discussed below . we intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by , for example , offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . developments in the year ended december 31 , 2015 litigation we have one intellectual property infringement lawsuit pending against apple , inc. in the united states district court for the eastern district of texas , tyler division , pursuant to which we allege that this party infringes on certain of our patents . we seek damages and injunctive relief in all the complaints . virnetx inc. v. apple , inc. ( case 6:12-cv-00855-led ) – consolidated lead case on march 30 , 2015 , the united states court for the eastern district of texas , tyler division , issued an order finding substantial overlap between the remanded portions of the civil action case 6:10-cv-00417-led ( virnetx vs. cisco et . al . ) , and the ongoing civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) . the court consolidated the two civil actions under civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) and designated it as the lead case . the jury trial in this case was held on january 25 , 2016. on february 4 , 2016 , a jury in the united states court for the eastern district of texas , tyler division , awarded us $ 625.6 million in a verdict against apple corporation for infringing four of our us patents , marking it the second time a federal jury has found apple liable for infringing virnetx 's patented technology . the verdict includes royalties awarded to us based on an earlier patent infringement finding ( case 6:10-cv-00417-led ) against apple . the jury found that apple 's modified vpn on-demand , imessage and facetime services infringed virnetx 's patents and that apple 's infringement was willful . in addition to determining the royalty owed by apple for its prior infringement , this verdict also includes an award based on the jury 's finding that apple 's modified vpn on demand , imessage and facetime services have continued to infringe virnetx 's patents . in its order , issued on february 16 , 2016 , the court has set all post-trial motions for hearing on may 25 , 2016 at 10:00 a.m. in the united states court for the eastern district of texas , texarkana division . story_separator_special_tag in each of these cases , since delivery has occurred , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price , and determined that collectability is reasonably assured . current royalty payments : ongoing royalty payments cover a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . licensees that owe these current royalty payments are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we expect to receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we will recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is limited . non-refundable up-front fees and minimum fee contracts : for licenses that provide for non-refundable up-front or fixed minimum fees over their term , for which we have no future obligations or performance requirements , revenue is generally recognized over the license term . for licenses that provide for fees that are not fixed or determinable , including licenses that provide for extended payment terms and or payment of a significant portion of the fee after expiration of the license or more than 12 months after delivery , the fees are generally presumed not to be fixed or determinable , and revenue is deferred and recognized as earned , but not in advance of collection . non-royalty elements : elements that are not related to royalty revenue in nature , such as settlement fees , expense reimbursement , and damages , if any , are recorded as gain from settlement which is reflected as a separate line item within the operating expenses section in the consolidated statements of operations . deferred revenue in august 2013 we began receiving annual payments on a contract that requires payment to us over 4 years of $ 10,000 ( august 2013 contract settlement ) . from the inception of that license to december 31 , 2015 , we received cash totaling $ 7,500 , all of which is non-refundable . we recognized $ 1,500 , $ 1,167 and $ 1,833 of revenue related to the august 2013 contract settlement during the years ended december 31 , 2015 , 2014 and 2013 respectively . activity under the august 2013 contract settlement was as follows ( in thousands ) : replace_table_token_4_th royalty expense royalty expense for the years ended december 31 , 2015 , 2014 and 2013 was $ 5,265 , $ 6,100 and zero respectively , and was a result of our royalty agreement with leidos . there was no expense for the year ended december 31 , 2013. the agreement provides for revenue sharing and legal reimbursements related to attorney time and expenses incurred by leidos during discovery and other aspects of litigation matters that have been resolved . earnings per share basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period . diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued . during the years ended 2015 , 2014 and 2013 we incurred losses . therefore , the effect of any common stock equivalent is anti-dilutive during those periods . 31 concentration of credit risk and other risks and uncertainties our cash and cash equivalents are primarily maintained at two major financial institutions in the united states . a portion of those balances are insured by the federal deposit insurance corporation . during the year ended december 31 , 2015 , and 2014 we had , at times , funds which were uninsured . we do not believe that we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships with major financial institutions . we have not experienced any losses on our deposits of cash and cash equivalents . derivative instruments our series i warrants contained an anti-dilution provision which prevented them from being considered indexed to our stock . as a result , the warrants were required to be accounted for as derivative instruments . the remaining balance of series 1 warrants expired during the year ended december 31 , 2015. we recognize derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value . we record changes in the fair value ( i.e . , gains or losses ) of the derivatives in the accompanying consolidated statements of operations . impairment of long-lived assets we identify and record impairment losses on long-lived assets used in operations when events and changes in circumstances indicate that the carrying amount of an asset might not be recoverable , but not less than annually . recoverability is measured by comparison of the anticipated future net undiscounted cash flows to the related assets ' carrying value . if 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 projected discounted future net cash flows arising from the asset . income taxes we account for income taxes using the asset and liability method . the asset and liability method requires the recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial

