we intend to begin commercial sales of t : flex in the united states during the second quarter of 2015. we consider the number of units shipped per quarter to be an important metric for managing our business . since the launch of t : slim , we have shipped approximately 18,300 pumps as of december 31 , 2014 , broken down by quarter as follows : replace_table_token_4_th for the years ended december 31 , 2014 , 2013 and 2012 , our sales were $ 49.7 million , $ 29.0 million and $ 2.5 million , respectively . for the years ended december 31 , 2014 , 2013 and 2012 , our net loss was $ 79.5 million , $ 63.1 million and $ 33.0 million , respectively . our accumulated deficit as of december 31 , 2014 was $ 248.7 million . 56 we have derived nearly all of our revenue from the sale of t : slim and associated supplies in the united states and expect to continue to do so until we are able to commercialize t : flex and our other products that are currently under development . during the third quarter of 2014 , we submitted a pma application to the fda for the t : slim g4 insulin pump system , which we have previously referred to as t : sensor . a substantial portion of the purchase price of an insulin pump is typically paid for by third-party payors , including private insurance companies , preferred provider organizations and other managed care providers . access to adequate coverage and reimbursement for our current and future products by third-party payors is essential to the acceptance of our products by customers . future sales of our current and future products will be limited unless our customers can rely on third-party payors to pay for all or part of the associated purchase cost . in circumstances that we do not have contracts established with third-party payors , to the extent possible , we utilize our network of national and regional distributors to service our customers . we believe we can achieve profitability because our proprietary technology platform will allow us to maximize efficiencies in the development , production and sale of our products . by leveraging our technology platform , we believe we can develop and bring to market products more rapidly while significantly reducing our design and development costs . we also expect to continue to increase production volume , and to reduce the per-unit production cost for our pump products and their associated disposable cartridges over time . further , due to shared product design features , our production system is adaptable to new products and we intend to leverage our shared manufacturing infrastructure to reduce our product costs and drive operational efficiencies . by expanding our product offerings to address people in different segments of the large and growing insulin-dependent diabetes market , we believe we can increase the productivity of our sales force , thereby improving our operating margin . from inception through december 31 , 2014 , we have primarily financed our operations through sales of equity securities , and , to a lesser extent , debt financings . we expect to continue to incur net losses for the next several years and expect to pursue additional capital through equity and or debt financings in order to fund our operations to a level of revenues adequate to support our cost structure . we have experienced considerable revenue growth since the commercial launch of t : slim in the third quarter of 2012 , while incurring operating losses since our inception . our operating results may fluctuate on a quarterly or annual basis in the future , in particular during the initial stages of commercialization of new products , including t : flex , and our growth or operating results may not be consistent with predictions made by securities analysts . we may not be able to achieve profitability in the future . for additional information about the risks and uncertainties associated with our business , see the section entitled “ risk factors ” in part i , item 1a . voluntary recall on january 10 , 2014 , we announced a voluntary recall of select lots of cartridges used with t : slim that may have been at risk of leaking . the cause of the recall was identified during our internal product testing . the recall was expanded on january 20 , 2014 to include additional lots of affected cartridges used with t : slim . we incurred approximately $ 1.7 million in direct costs associated with the recall . we recorded a cost of sales charge of approximately $ 1.3 million in the fourth quarter of 2013 and recorded the cost of sales charge for the remainder in the first quarter of 2014 for affected cartridges shipped in the first quarter of 2014. the total cost of the recall consisted of approximately $ 0.7 million associated with the return and replacement of affected cartridges in the field and approximately $ 1.0 million for the write-off of affected cartridges within our internal inventory . we do not currently expect any further direct financial impact of the recall beyond these costs . components of results of operations sales we commenced commercial sales of t : slim in the united states in the third quarter of 2012. the t : slim insulin delivery system is comprised of the t : slim pump and pump-related supplies that include disposable cartridges and infusion sets . we also offer accessories including protective cases , belt clips , and power adapters . sales of accessories since commercial launch have not been material . we primarily sell our products through national and regional distributors on a non-exclusive basis . these distributors are generally providers of medical equipment and supplies to individuals with diabetes . our primary end customers are people with insulin-dependent diabetes . story_separator_special_tag other expense in 2013 was $ 13.7 million , compared to $ 33,000 of other income in 2012. other expense in 2013 was primarily comprised of $ 9.0 million associated with the revaluation of the fair value of common and preferred stock warrants and $ 4.7 million interest expense associated with the term loan agreement executed with capital royalty partners in december 2012. we borrowed $ 30 million under the agreement in january 2013. in comparison , other income in 2012 was primarily comprised of a $ 2.6 million decrease in the fair value of the common and preferred stock warrants , offset by $ 2.5 million in interest expense related to convertible notes payable to certain stockholders . the convertible notes were converted to series d preferred stock in august 2012 and interest was paid on a $ 5.0 million loan from silicon valley bank . we used proceeds from the capital royalty partners term loan agreement to repay all amounts outstanding under the silicon valley bank loan in january 2013. story_separator_special_tag style= `` margin-bottom:0pt ; margin-top:0pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; font-family : 'wingdings ' ; font-size:10pt ; `` > fluctuations in working capital . our primary short-term capital needs , which are subject to change , include expenditures related to : ● support of our commercialization efforts related to our current and future products ; ● improvements in our manufacturing capacity and efficiency ; ● new research and product development efforts ; ● payment of quarterly interest due under our term debt agreements ; ● the acquisition of equipment and other fixed assets ; ● facilities expansion needs ; and ● potential up-front , milestone payments or reimbursement of costs under r & d collaborations . although we believe the foregoing items reflect our most likely uses of cash in the short-term , we can not predict with certainty all of our particular short-term cash uses or the timing or amount of cash used . if cash generated from operations is insufficient to satisfy our working capital and capital expenditure requirements , we may be required to sell additional equity or debt securities or obtain additional credit facilities . there can be no assurance that equity or debt financing will be available on satisfactory terms , or at all . further , any additional equity financing may be dilutive to stockholders , and debt financing , if available , may include restrictive covenants . 62 indebtedness capital royalty partners term loans in december 2012 , we executed a term loan agreement ( the “ original term loan agreement ” ) with capital royalty partners ii l.p. ( “ capital royalty partners ” ) and capital royalty partners ii—parallel fund “ a ” l.p. ( “ crppf ” , together with capital royalty partners , the “ lenders ” ) , providing us access to $ 45.0 million under the arrangement , of which $ 30.0 million was available in january 2013 , and an additional amount up to $ 15.0 million became available upon our achievement of a 2013 revenue-based milestone . in january 2013 , $ 30.0 million was drawn under the agreement , a portion of which was used to repay all amounts outstanding under our $ 5.0 million loan from silicon valley bank . in april 2014 , we entered into an amended and restated term loan agreement ( the `` amended and restated term loan agreement `` ) with the lenders and capital royalty partners ii ( cayman ) l.p. ( “ crpc ” ) under which we may borrow up to $ 30.0 million . the amended and restated term loan agreement amends and restates the original term loan agreement . aggregate borrowings outstanding under the amended and restated term loan agreement were $ 30 million at december 31 , 2014. borrowings under the amended and restated term loan agreement were used to refinance amounts outstanding under the original term loan agreement . the amended and restated term loan agreement primarily amends the terms of the original term loan agreement to reduce the borrowing limit to $ 30.0 million , to reduce the applicable interest rate from 14.0 % to 11.5 % , and to extend the interest only payment period from december 31 , 2015 to march 31 , 2018. interest is payable , at our option , ( i ) in cash at a rate of 11.5 % per annum or ( ii ) in cash at a rate of 9.5 % per annum , with the remaining 2.0 % per annum added to the principal of the loan and thereafter subject to accruing interest . interest-only payments are due quarterly on march 31 , june 30 , september 30 and december 31 of each year of the interest-only payment period . thereafter , in addition to interest accrued during the period , the quarterly payments shall include an amount equal to the outstanding principal at march 31 , 2018 divided by the remaining number of quarters prior to the end of the term of the loan . the amended and restated term loan agreement provides for prepayment fees of 3 % of the outstanding balance of the loan if the loan is repaid prior to march 31 , 2015. the prepayment fee is reduced by 1 % per year for each subsequent year until maturity . certain affirmative and negative covenants were also amended to provide us with additional flexibility . the principal financial covenants require that we attain minimum annual revenues of $ 30.0 million in 2014 , $ 50.0 million in 2015 , $ 65.0 million in 2016 , $ 80.0 million in 2017 and $ 95.0 million thereafter . we expect to meet the minimum annual revenue covenant of $ 50.0 million in 2015. on the same date , we entered into a new term loan a greement ( the “ new tranche term

liquidity and capital resources at december 31 , 2014 , we had $ 69.3 million in cash and cash equivalents and short-term investments , which included $ 2.0 million of restricted cash . we believe that our cash on hand , cash available under our new tranche term loan agreement with capital royalty partners and proceeds from the exercise of options and warrants will be sufficient to satisfy our liquidity requirements for at least the next 12 months . we expect that our sales performance and the resulting operating income or loss , as well as the status of each of our new product development programs , will significantly impact our cash management decisions . we have utilized , and may continue to utilize , debt arrangements with debt providers and financial institutions to finance our operations . factors such as interest rates , repayment terms and available cash will impact our decision to continue to utilize debt arrangements as a source of cash . in november 2013 , we completed an initial public offering of common stock that resulted in net proceeds of approximately $ 125 million . in the future , we may give consideration to additional public offerings of equity securities as a source of financing . in december 2014 , we filed a registration statement on form s-3 with the sec , which was declared effective on december 19 , 2014. under this shelf registration statement , we may from time to time offer and sell any combination of common stock , preferred stock , warrants or units in one or more offerings . historically , our sources of cash have included private placements and a public offering of equity securities , debt arrangements , and cash generated from operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources at december 31 , 2014 , we had $ 69.3 million in cash and cash equivalents and short-term investments , which included $ 2.0 million of restricted cash . we believe that our cash on hand , cash available under our new tranche term loan agreement with capital royalty partners and proceeds from the exercise of options and warrants will be sufficient to satisfy our liquidity requirements for at least the next 12 months . we expect that our sales performance and the resulting operating income or loss , as well as the status of each of our new product development programs , will significantly impact our cash management decisions . we have utilized , and may continue to utilize , debt arrangements with debt providers and financial institutions to finance our operations . factors such as interest rates , repayment terms and available cash will impact our decision to continue to utilize debt arrangements as a source of cash . in november 2013 , we completed an initial public offering of common stock that resulted in net proceeds of approximately $ 125 million . in the future , we may give consideration to additional public offerings of equity securities as a source of financing . in december 2014 , we filed a registration statement on form s-3 with the sec , which was declared effective on december 19 , 2014. under this shelf registration statement , we may from time to time offer and sell any combination of common stock , preferred stock , warrants or units in one or more offerings . historically , our sources of cash have included private placements and a public offering of equity securities , debt arrangements , and cash generated from operations .
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 Suspicious Activity Report : we intend to begin commercial sales of t : flex in the united states during the second quarter of 2015. we consider the number of units shipped per quarter to be an important metric for managing our business . since the launch of t : slim , we have shipped approximately 18,300 pumps as of december 31 , 2014 , broken down by quarter as follows : replace_table_token_4_th for the years ended december 31 , 2014 , 2013 and 2012 , our sales were $ 49.7 million , $ 29.0 million and $ 2.5 million , respectively . for the years ended december 31 , 2014 , 2013 and 2012 , our net loss was $ 79.5 million , $ 63.1 million and $ 33.0 million , respectively . our accumulated deficit as of december 31 , 2014 was $ 248.7 million . 56 we have derived nearly all of our revenue from the sale of t : slim and associated supplies in the united states and expect to continue to do so until we are able to commercialize t : flex and our other products that are currently under development . during the third quarter of 2014 , we submitted a pma application to the fda for the t : slim g4 insulin pump system , which we have previously referred to as t : sensor . a substantial portion of the purchase price of an insulin pump is typically paid for by third-party payors , including private insurance companies , preferred provider organizations and other managed care providers . access to adequate coverage and reimbursement for our current and future products by third-party payors is essential to the acceptance of our products by customers . future sales of our current and future products will be limited unless our customers can rely on third-party payors to pay for all or part of the associated purchase cost . in circumstances that we do not have contracts established with third-party payors , to the extent possible , we utilize our network of national and regional distributors to service our customers . we believe we can achieve profitability because our proprietary technology platform will allow us to maximize efficiencies in the development , production and sale of our products . by leveraging our technology platform , we believe we can develop and bring to market products more rapidly while significantly reducing our design and development costs . we also expect to continue to increase production volume , and to reduce the per-unit production cost for our pump products and their associated disposable cartridges over time . further , due to shared product design features , our production system is adaptable to new products and we intend to leverage our shared manufacturing infrastructure to reduce our product costs and drive operational efficiencies . by expanding our product offerings to address people in different segments of the large and growing insulin-dependent diabetes market , we believe we can increase the productivity of our sales force , thereby improving our operating margin . from inception through december 31 , 2014 , we have primarily financed our operations through sales of equity securities , and , to a lesser extent , debt financings . we expect to continue to incur net losses for the next several years and expect to pursue additional capital through equity and or debt financings in order to fund our operations to a level of revenues adequate to support our cost structure . we have experienced considerable revenue growth since the commercial launch of t : slim in the third quarter of 2012 , while incurring operating losses since our inception . our operating results may fluctuate on a quarterly or annual basis in the future , in particular during the initial stages of commercialization of new products , including t : flex , and our growth or operating results may not be consistent with predictions made by securities analysts . we may not be able to achieve profitability in the future . for additional information about the risks and uncertainties associated with our business , see the section entitled “ risk factors ” in part i , item 1a . voluntary recall on january 10 , 2014 , we announced a voluntary recall of select lots of cartridges used with t : slim that may have been at risk of leaking . the cause of the recall was identified during our internal product testing . the recall was expanded on january 20 , 2014 to include additional lots of affected cartridges used with t : slim . we incurred approximately $ 1.7 million in direct costs associated with the recall . we recorded a cost of sales charge of approximately $ 1.3 million in the fourth quarter of 2013 and recorded the cost of sales charge for the remainder in the first quarter of 2014 for affected cartridges shipped in the first quarter of 2014. the total cost of the recall consisted of approximately $ 0.7 million associated with the return and replacement of affected cartridges in the field and approximately $ 1.0 million for the write-off of affected cartridges within our internal inventory . we do not currently expect any further direct financial impact of the recall beyond these costs . components of results of operations sales we commenced commercial sales of t : slim in the united states in the third quarter of 2012. the t : slim insulin delivery system is comprised of the t : slim pump and pump-related supplies that include disposable cartridges and infusion sets . we also offer accessories including protective cases , belt clips , and power adapters . sales of accessories since commercial launch have not been material . we primarily sell our products through national and regional distributors on a non-exclusive basis . these distributors are generally providers of medical equipment and supplies to individuals with diabetes . our primary end customers are people with insulin-dependent diabetes . story_separator_special_tag other expense in 2013 was $ 13.7 million , compared to $ 33,000 of other income in 2012. other expense in 2013 was primarily comprised of $ 9.0 million associated with the revaluation of the fair value of common and preferred stock warrants and $ 4.7 million interest expense associated with the term loan agreement executed with capital royalty partners in december 2012. we borrowed $ 30 million under the agreement in january 2013. in comparison , other income in 2012 was primarily comprised of a $ 2.6 million decrease in the fair value of the common and preferred stock warrants , offset by $ 2.5 million in interest expense related to convertible notes payable to certain stockholders . the convertible notes were converted to series d preferred stock in august 2012 and interest was paid on a $ 5.0 million loan from silicon valley bank . we used proceeds from the capital royalty partners term loan agreement to repay all amounts outstanding under the silicon valley bank loan in january 2013. story_separator_special_tag style= `` margin-bottom:0pt ; margin-top:0pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; font-family : 'wingdings ' ; font-size:10pt ; `` > fluctuations in working capital . our primary short-term capital needs , which are subject to change , include expenditures related to : ● support of our commercialization efforts related to our current and future products ; ● improvements in our manufacturing capacity and efficiency ; ● new research and product development efforts ; ● payment of quarterly interest due under our term debt agreements ; ● the acquisition of equipment and other fixed assets ; ● facilities expansion needs ; and ● potential up-front , milestone payments or reimbursement of costs under r & d collaborations . although we believe the foregoing items reflect our most likely uses of cash in the short-term , we can not predict with certainty all of our particular short-term cash uses or the timing or amount of cash used . if cash generated from operations is insufficient to satisfy our working capital and capital expenditure requirements , we may be required to sell additional equity or debt securities or obtain additional credit facilities . there can be no assurance that equity or debt financing will be available on satisfactory terms , or at all . further , any additional equity financing may be dilutive to stockholders , and debt financing , if available , may include restrictive covenants . 62 indebtedness capital royalty partners term loans in december 2012 , we executed a term loan agreement ( the “ original term loan agreement ” ) with capital royalty partners ii l.p. ( “ capital royalty partners ” ) and capital royalty partners ii—parallel fund “ a ” l.p. ( “ crppf ” , together with capital royalty partners , the “ lenders ” ) , providing us access to $ 45.0 million under the arrangement , of which $ 30.0 million was available in january 2013 , and an additional amount up to $ 15.0 million became available upon our achievement of a 2013 revenue-based milestone . in january 2013 , $ 30.0 million was drawn under the agreement , a portion of which was used to repay all amounts outstanding under our $ 5.0 million loan from silicon valley bank . in april 2014 , we entered into an amended and restated term loan agreement ( the `` amended and restated term loan agreement `` ) with the lenders and capital royalty partners ii ( cayman ) l.p. ( “ crpc ” ) under which we may borrow up to $ 30.0 million . the amended and restated term loan agreement amends and restates the original term loan agreement . aggregate borrowings outstanding under the amended and restated term loan agreement were $ 30 million at december 31 , 2014. borrowings under the amended and restated term loan agreement were used to refinance amounts outstanding under the original term loan agreement . the amended and restated term loan agreement primarily amends the terms of the original term loan agreement to reduce the borrowing limit to $ 30.0 million , to reduce the applicable interest rate from 14.0 % to 11.5 % , and to extend the interest only payment period from december 31 , 2015 to march 31 , 2018. interest is payable , at our option , ( i ) in cash at a rate of 11.5 % per annum or ( ii ) in cash at a rate of 9.5 % per annum , with the remaining 2.0 % per annum added to the principal of the loan and thereafter subject to accruing interest . interest-only payments are due quarterly on march 31 , june 30 , september 30 and december 31 of each year of the interest-only payment period . thereafter , in addition to interest accrued during the period , the quarterly payments shall include an amount equal to the outstanding principal at march 31 , 2018 divided by the remaining number of quarters prior to the end of the term of the loan . the amended and restated term loan agreement provides for prepayment fees of 3 % of the outstanding balance of the loan if the loan is repaid prior to march 31 , 2015. the prepayment fee is reduced by 1 % per year for each subsequent year until maturity . certain affirmative and negative covenants were also amended to provide us with additional flexibility . the principal financial covenants require that we attain minimum annual revenues of $ 30.0 million in 2014 , $ 50.0 million in 2015 , $ 65.0 million in 2016 , $ 80.0 million in 2017 and $ 95.0 million thereafter . we expect to meet the minimum annual revenue covenant of $ 50.0 million in 2015. on the same date , we entered into a new term loan a greement ( the “ new tranche term

