the promissory note will bear interest of 5 % per annum for the first year and 13 % per annum for the second year ; the interest will be payable semi-annually in cash , and the note will mature two years from the closing of the transaction . in addition , the promissory note will be subject to prepayment under certain circumstances and will be secured by certain of the assets to be sold pursuant to the asset purchase agreement with emcore . the note is subordinated to our existing bank debt in the u.s. we will account for the acquisition as a business combination . on march 29 , 2013 , we acquired certain assets and assumed certain liabilities related to the semiconductor optical components business unit of lapis semiconductor co. , ltd. ( “ lapis ” ) , a wholly-owned subsidiary of rohm co. , ltd. of japan . the business is now known as neophotonics semiconductor . total consideration for this acquisition was approximately $ 24.3 million , including $ 13.1 million in cash and $ 11.1 million in notes payable for the purchase of the real estate used by neophotonics semiconductor , of which 700 million japanese yen ( “ jpy ” ) ( $ 5.8 million ) was outstanding as of december 31 , 2014 . 46 debt arrangements during the first quarter of 2015 , we completed actions to restructure certain of our debt obligations . by restructuring our debt , we eliminated certain cash restrictions and improved our cash flow . as of december 31 , 2014 , we had $ 23.3 million of long-term debt , which consisted of a term loan led by comerica bank of $ 17.5 million , secured by restricted cash of an equal amount , and a mortgage from lapis of $ 5.8 million . in the first quarter of 2015 , we restructured both of these arrangements to increase the usability of our comerica borrowing capacity by approximately $ 9 million while eliminating certain restrictions on cash ; and we entered into a new financing arrangement with bank of tokyo-mitsubishi ufj , ltd. which paid off the lapis mortgage in japan and increased our available cash balances through two long-term mortgage instruments totaling $ 12.6 million . these actions increased our unrestricted cash by approximately $ 22 million and improved our cash availability for 2015. in addition , at december 31 , 2014 , we had $ 22.8 million of short-term notes payable and borrowings in china . we expect to maintain such facilities at approximately this level through 2015. product group reporting we plan to realign our product group reporting for 2015. for all of 2014 , revenue attributable to our “ speed and agility ” product group was approximately 73.5 % of our total revenue , of which our “ high speed ” products were approximately 42.9 % of total revenue , revenue attributable to our “ access ” products was approximately 20.2 % of total revenue , and revenue attributable to our “ other telecom ” products were approximately 6.3 % of total revenue . in terms of our reporting structure for 2015 and beyond , for the full year of 2014 , 42.3 % of our total revenue would have been reported as revenue from “ high speed products ” ( 100g and beyond ) and 57.7 % of our total revenue would have been reported as revenue from “ network products and solutions . ” note that in reporting for 2015 and onward , revenue from products designed for 40g is expected to be moved from the previously reported “ high speed ” to the new category of “ network products and solutions , ” and such revenue is expected to continue to decline over time . the tunable laser products acquired from emcore during the first quarter of 2015 is expected to be included in high speed products . update on planned expansion in the russian federation in april 2012 , we entered into a rights agreement with open joint stock company “ rusnano ” or rusnano , one of our principal stockholders . under the rights agreement , we agreed to make a $ 30.0 million investment commitment ( the “ investment commitment ” ) toward our russian operations . the investment commitment can be partially satisfied by cash and or non-cash investment inside or outside of russia and or by way of non-cash asset transfers . in july 2014 , we extended our then-current investment commitment milestone to march 31 , 2015. in march 2015 , we further extended our investment commitment milestone to june 30 , 2015. if we fail to meet the investment commitment by such date , we may be required to pay a $ 5.0 million penalty as the sole and exclusive remedy for damages and monetary relief available to rusnano for failure to meet the investment commitment . we are currently in discussions with rusnano to potentially amend the related requirements , but there can be no assurance that we will be successful in reaching an agreement with rusnano on amending the requirements . separately , on december 18 , 2014 , we entered into a commitment to file a resale registration statement and related waiver of registration rights , whereby rusnano waived certain registration rights in connection with a potential offering by us of shares of our common stock , and we committed to file with the sec a resale registration statement on form s-1 covering the resale of all shares of our common stock held by rusnano . story_separator_special_tag we expect that our gross margin is likely to continue to fluctuate due to a variety of factors , including the introduction of new products , production volume , production volume compared to sales over time , the mix of products sold , inventory changes , changes in the average selling prices of our products , changes in the cost and volumes of materials purchased from our suppliers , changes in labor costs , changes in overhead costs or requirements , revaluation of stock appreciation unit awards that are impacted by our stock price , write-downs of excess and obsolete inventories and warranty costs . in addition , we periodically negotiate pricing with certain customers which can cause our gross margins to fluctuate , particularly in the quarters subsequent to the periods in which the negotiations occurred . operating expenses replace_table_token_9_th 51 research and development research and development expense consists of personnel costs , including stock-based compensation , for our research and development personnel , and product development costs , including engineering services , development software and hardware tools , depreciation of equipment and facility costs . we record all research and development expense as incurred . research and development expense increased $ 0.1 million in 2014 compared to 2013. the increase was attributable to a $ 0.5 million increase in depreciation and amortization expense and a $ 0.2 million increase in stock-based compensation expense , offset by a $ 0.4 million decrease in payroll expenses due to headcount reductions and a $ 0.2 million reduction in development materials related spending . research and development expense increased by $ 7.6 million in 2013 compared to 2012 , representing a 20 % increase . the acquisition of neophotonics semiconductor increased our research and development expense by $ 3.7 million . other increases in 2013 included $ 2.9 million for research and development projects to support our business growth , $ 1.4 million for labor and facilities expenses related to manufacturing support of research and development activities , $ 0.5 million in higher compensation-related costs , partially offset by a $ 1.0 million decrease related to additional retention-related compensation costs in 2012 related to the acquisition of santur . we believe that investments in research and development are important to help meet our strategic objectives . in 2015 , we plan to continue to invest in research and development activities , including new products that will further enhance our competitive position . in particular , the acquisition of the tunable laser product line of emcore in early january 2015 is anticipated to result in an increase in our research and development expenses . as a percentage of total revenue , our research and development expense may vary as our investment and revenue levels change over time . sales and marketing sales and marketing expense consists primarily of personnel costs , including stock-based compensation and sales commissions , costs related to sales and marketing programs and services and facility costs . sales and marketing expense decreased by $ 0.5 million in 2014 compared to 2013 , representing a 4 % decrease , primarily due to a $ 0.6 million decrease in payroll and benefit expenses and a $ 0.3 million decrease in product demo expenses , partially offset by a $ 0.3 million increase in stock-based compensation expense . sales and marketing expense increased by $ 1.0 million in 2013 compared to 2012 , representing an 8 % increase which was primarily due to increases from the acquisition of neophotonics semiconductor and higher variable compensation costs . we expect to continue to focus on controlling our sales and marketing expenses in 2015 even as our business continues to expand geographically . as a percentage of total revenue , our sales and marketing expense may vary as our revenue changes over time . general and administrative general and administrative expense consists of personnel costs , including stock-based compensation , for our finance , human resources and information technology personnel and certain executive officers , as well as professional services costs related to accounting , tax , banking , legal and information technology services , depreciation and facility costs . general and administrative expense increased by $ 1.6 million in 2014 compared to 2013 , representing a 5 % increase . the increase was primarily due to a $ 2.6 million increase in audit and tax fees primarily related to the restatement of our quarterly reports on forms 10-q for the quarters ended march 31 and june 30 , 2013 , a $ 1.1 million increase in bonus expense and a $ 0.9 million in payroll expenses , partially offset by a $ 2.1 million decrease in consulting fees , a $ 0.5 million decrease in benefit expenses , and a $ 0.2 million decrease in computer equipment expenses . general and administrative expense increased by $ 5.7 million in 2013 compared to 2012 , representing a 23 % increase . consulting and professional fees increased by $ 3.6 million primarily related to resources to assist us in the process of remediating weaknesses in our controls over financial reporting , to provide technical accounting support and to fill key vacant positions on an interim basis as well as costs related to the restatement of our quarterly report on forms 10-q for the quarters ended march 31 and june 30 , 2013. additional increases included $ 1.4 million in higher software license and other it-related expenses , costs from the newly acquired neophotonics semiconductor of $ 1.3 million , $ 0.5 million in higher audit-related fees , $ 0.6 million in loss on disposal of fixed assets , $ 1.2 million in higher stock-based compensation , payroll and related costs and $ 0.5 million in other costs to support our continued growth . these increases were partially offset by a $ 3.3 million decrease in bonus expense and a $ 0.4 million decrease in depreciation expense . 52 we expect to continue to focus on controlling

cash flow discussion the table below sets forth selected cash flow data for the periods presented : replace_table_token_11_th 56 operating activities in 2014 , net cash used in operating activities was $ 0.5 million , which was a $ 5.0 million decrease compared to the $ 4.5 million cash provided by operating activities in 2013. the decrease was primarily attributable to an increase in accounts receivable due to higher revenue in 2014 while days sales outstanding improved compared to 2013. additional contributing factors to the increase in net cash used in operating activities included lower accounts payable related payments and higher accrued and other liabilities in 2013 and an increase in prepaid expenses and other assets in 2014 primarily attributable to sales tax refunds , partially offset by a reduction in net loss , net of non-cash charges , and a lower inventory level in 2014 , compared to 2013. in 2013 , net cash provided by operating activities was $ 4.5 million , which was a $ 13.3 million increase over the $ 8.8 million cash used in operating activities in 2012. contributing to the increase was a decrease in accounts receivable , particularly in china where days sales outstanding declined and revenue was lower at the end of 2013 compared to the end of 2012. additionally , operating cash flow benefitted from an increase in accounts payable primarily due to higher inventory purchases in china near the end of 2013 and higher accrued and other current liabilities , partially offset by a higher net loss in 2013. in 2012 , net cash used in operating activities was $ 8.8 million . during the year ended december 31 , 2012 , we recognized a net loss of $ 17.5 million , which incorporated non-cash charges , including depreciation and amortization of $ 18.7 million , stock-based compensation expenses of $ 4.8


 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 flow discussion the table below sets forth selected cash flow data for the periods presented : replace_table_token_11_th 56 operating activities in 2014 , net cash used in operating activities was $ 0.5 million , which was a $ 5.0 million decrease compared to the $ 4.5 million cash provided by operating activities in 2013. the decrease was primarily attributable to an increase in accounts receivable due to higher revenue in 2014 while days sales outstanding improved compared to 2013. additional contributing factors to the increase in net cash used in operating activities included lower accounts payable related payments and higher accrued and other liabilities in 2013 and an increase in prepaid expenses and other assets in 2014 primarily attributable to sales tax refunds , partially offset by a reduction in net loss , net of non-cash charges , and a lower inventory level in 2014 , compared to 2013. in 2013 , net cash provided by operating activities was $ 4.5 million , which was a $ 13.3 million increase over the $ 8.8 million cash used in operating activities in 2012. contributing to the increase was a decrease in accounts receivable , particularly in china where days sales outstanding declined and revenue was lower at the end of 2013 compared to the end of 2012. additionally , operating cash flow benefitted from an increase in accounts payable primarily due to higher inventory purchases in china near the end of 2013 and higher accrued and other current liabilities , partially offset by a higher net loss in 2013. in 2012 , net cash used in operating activities was $ 8.8 million . during the year ended december 31 , 2012 , we recognized a net loss of $ 17.5 million , which incorporated non-cash charges , including depreciation and amortization of $ 18.7 million , stock-based compensation expenses of $ 4.8
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 Suspicious Activity Report : the promissory note will bear interest of 5 % per annum for the first year and 13 % per annum for the second year ; the interest will be payable semi-annually in cash , and the note will mature two years from the closing of the transaction . in addition , the promissory note will be subject to prepayment under certain circumstances and will be secured by certain of the assets to be sold pursuant to the asset purchase agreement with emcore . the note is subordinated to our existing bank debt in the u.s. we will account for the acquisition as a business combination . on march 29 , 2013 , we acquired certain assets and assumed certain liabilities related to the semiconductor optical components business unit of lapis semiconductor co. , ltd. ( “ lapis ” ) , a wholly-owned subsidiary of rohm co. , ltd. of japan . the business is now known as neophotonics semiconductor . total consideration for this acquisition was approximately $ 24.3 million , including $ 13.1 million in cash and $ 11.1 million in notes payable for the purchase of the real estate used by neophotonics semiconductor , of which 700 million japanese yen ( “ jpy ” ) ( $ 5.8 million ) was outstanding as of december 31 , 2014 . 46 debt arrangements during the first quarter of 2015 , we completed actions to restructure certain of our debt obligations . by restructuring our debt , we eliminated certain cash restrictions and improved our cash flow . as of december 31 , 2014 , we had $ 23.3 million of long-term debt , which consisted of a term loan led by comerica bank of $ 17.5 million , secured by restricted cash of an equal amount , and a mortgage from lapis of $ 5.8 million . in the first quarter of 2015 , we restructured both of these arrangements to increase the usability of our comerica borrowing capacity by approximately $ 9 million while eliminating certain restrictions on cash ; and we entered into a new financing arrangement with bank of tokyo-mitsubishi ufj , ltd. which paid off the lapis mortgage in japan and increased our available cash balances through two long-term mortgage instruments totaling $ 12.6 million . these actions increased our unrestricted cash by approximately $ 22 million and improved our cash availability for 2015. in addition , at december 31 , 2014 , we had $ 22.8 million of short-term notes payable and borrowings in china . we expect to maintain such facilities at approximately this level through 2015. product group reporting we plan to realign our product group reporting for 2015. for all of 2014 , revenue attributable to our “ speed and agility ” product group was approximately 73.5 % of our total revenue , of which our “ high speed ” products were approximately 42.9 % of total revenue , revenue attributable to our “ access ” products was approximately 20.2 % of total revenue , and revenue attributable to our “ other telecom ” products were approximately 6.3 % of total revenue . in terms of our reporting structure for 2015 and beyond , for the full year of 2014 , 42.3 % of our total revenue would have been reported as revenue from “ high speed products ” ( 100g and beyond ) and 57.7 % of our total revenue would have been reported as revenue from “ network products and solutions . ” note that in reporting for 2015 and onward , revenue from products designed for 40g is expected to be moved from the previously reported “ high speed ” to the new category of “ network products and solutions , ” and such revenue is expected to continue to decline over time . the tunable laser products acquired from emcore during the first quarter of 2015 is expected to be included in high speed products . update on planned expansion in the russian federation in april 2012 , we entered into a rights agreement with open joint stock company “ rusnano ” or rusnano , one of our principal stockholders . under the rights agreement , we agreed to make a $ 30.0 million investment commitment ( the “ investment commitment ” ) toward our russian operations . the investment commitment can be partially satisfied by cash and or non-cash investment inside or outside of russia and or by way of non-cash asset transfers . in july 2014 , we extended our then-current investment commitment milestone to march 31 , 2015. in march 2015 , we further extended our investment commitment milestone to june 30 , 2015. if we fail to meet the investment commitment by such date , we may be required to pay a $ 5.0 million penalty as the sole and exclusive remedy for damages and monetary relief available to rusnano for failure to meet the investment commitment . we are currently in discussions with rusnano to potentially amend the related requirements , but there can be no assurance that we will be successful in reaching an agreement with rusnano on amending the requirements . separately , on december 18 , 2014 , we entered into a commitment to file a resale registration statement and related waiver of registration rights , whereby rusnano waived certain registration rights in connection with a potential offering by us of shares of our common stock , and we committed to file with the sec a resale registration statement on form s-1 covering the resale of all shares of our common stock held by rusnano . story_separator_special_tag we expect that our gross margin is likely to continue to fluctuate due to a variety of factors , including the introduction of new products , production volume , production volume compared to sales over time , the mix of products sold , inventory changes , changes in the average selling prices of our products , changes in the cost and volumes of materials purchased from our suppliers , changes in labor costs , changes in overhead costs or requirements , revaluation of stock appreciation unit awards that are impacted by our stock price , write-downs of excess and obsolete inventories and warranty costs . in addition , we periodically negotiate pricing with certain customers which can cause our gross margins to fluctuate , particularly in the quarters subsequent to the periods in which the negotiations occurred . operating expenses replace_table_token_9_th 51 research and development research and development expense consists of personnel costs , including stock-based compensation , for our research and development personnel , and product development costs , including engineering services , development software and hardware tools , depreciation of equipment and facility costs . we record all research and development expense as incurred . research and development expense increased $ 0.1 million in 2014 compared to 2013. the increase was attributable to a $ 0.5 million increase in depreciation and amortization expense and a $ 0.2 million increase in stock-based compensation expense , offset by a $ 0.4 million decrease in payroll expenses due to headcount reductions and a $ 0.2 million reduction in development materials related spending . research and development expense increased by $ 7.6 million in 2013 compared to 2012 , representing a 20 % increase . the acquisition of neophotonics semiconductor increased our research and development expense by $ 3.7 million . other increases in 2013 included $ 2.9 million for research and development projects to support our business growth , $ 1.4 million for labor and facilities expenses related to manufacturing support of research and development activities , $ 0.5 million in higher compensation-related costs , partially offset by a $ 1.0 million decrease related to additional retention-related compensation costs in 2012 related to the acquisition of santur . we believe that investments in research and development are important to help meet our strategic objectives . in 2015 , we plan to continue to invest in research and development activities , including new products that will further enhance our competitive position . in particular , the acquisition of the tunable laser product line of emcore in early january 2015 is anticipated to result in an increase in our research and development expenses . as a percentage of total revenue , our research and development expense may vary as our investment and revenue levels change over time . sales and marketing sales and marketing expense consists primarily of personnel costs , including stock-based compensation and sales commissions , costs related to sales and marketing programs and services and facility costs . sales and marketing expense decreased by $ 0.5 million in 2014 compared to 2013 , representing a 4 % decrease , primarily due to a $ 0.6 million decrease in payroll and benefit expenses and a $ 0.3 million decrease in product demo expenses , partially offset by a $ 0.3 million increase in stock-based compensation expense . sales and marketing expense increased by $ 1.0 million in 2013 compared to 2012 , representing an 8 % increase which was primarily due to increases from the acquisition of neophotonics semiconductor and higher variable compensation costs . we expect to continue to focus on controlling our sales and marketing expenses in 2015 even as our business continues to expand geographically . as a percentage of total revenue , our sales and marketing expense may vary as our revenue changes over time . general and administrative general and administrative expense consists of personnel costs , including stock-based compensation , for our finance , human resources and information technology personnel and certain executive officers , as well as professional services costs related to accounting , tax , banking , legal and information technology services , depreciation and facility costs . general and administrative expense increased by $ 1.6 million in 2014 compared to 2013 , representing a 5 % increase . the increase was primarily due to a $ 2.6 million increase in audit and tax fees primarily related to the restatement of our quarterly reports on forms 10-q for the quarters ended march 31 and june 30 , 2013 , a $ 1.1 million increase in bonus expense and a $ 0.9 million in payroll expenses , partially offset by a $ 2.1 million decrease in consulting fees , a $ 0.5 million decrease in benefit expenses , and a $ 0.2 million decrease in computer equipment expenses . general and administrative expense increased by $ 5.7 million in 2013 compared to 2012 , representing a 23 % increase . consulting and professional fees increased by $ 3.6 million primarily related to resources to assist us in the process of remediating weaknesses in our controls over financial reporting , to provide technical accounting support and to fill key vacant positions on an interim basis as well as costs related to the restatement of our quarterly report on forms 10-q for the quarters ended march 31 and june 30 , 2013. additional increases included $ 1.4 million in higher software license and other it-related expenses , costs from the newly acquired neophotonics semiconductor of $ 1.3 million , $ 0.5 million in higher audit-related fees , $ 0.6 million in loss on disposal of fixed assets , $ 1.2 million in higher stock-based compensation , payroll and related costs and $ 0.5 million in other costs to support our continued growth . these increases were partially offset by a $ 3.3 million decrease in bonus expense and a $ 0.4 million decrease in depreciation expense . 52 we expect to continue to focus on controlling

