we do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on form 10-k. all share amounts give effect to the 1-for-4 reverse stock split of our outstanding shares of common stock that occurred on april 8 , 2015 . introduction this management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which management has prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base estimates on historical experience and on various other factors that management believes are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . business overview we are a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries ( sci ) . our mission is to redefine the life of the sci patient , and we are developing treatment options intended to provide meaningful improvement in patient outcomes following sci . our approach to treating acute scis is based on our investigational neuro spinal scaffold implant , an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury . we believe the neuro spinal scaffold implant is the only sci therapy in development focused solely on treating acute sci directly at the epicenter of the injury , and incorporates intellectual property licensed under an exclusive , world wide license from boston children 's hospital ( `` bch `` ) and the massachusetts institute of technology ( `` mit `` ) . we are continually evaluating other technologies and therapeutics that may be complementary to our development of the neuro-spinal scaffold implant or offer the potential to bring us closer to our goal of redefining the life of the sci patient . recently we entered into exclusive license/assignment agreements with the university of california , san diego and james guest , m.d . , ph.d. covering delivery methods and devices for our preclinical bioengineered neural trails injection program . overall , we expect our research and development expenses to be substantial and to increase for the foreseeable future as we continue the development and clinical investigation of our current and future products . however , expenditures on research and development programs are subject to many uncertainties , including whether we develop our products with a partner or independently or acquire products . at this time , due to the uncertainties and inherent risks involved in our business , we can not estimate in a meaningful way the duration of , or the costs to complete , our research and development 46 programs or whether , when or to what extent we will generate revenues or cash inflows from the commercialization and sale of any of our products . while we are currently focused on advancing our neuro-spinal scaffold implant , our future research and development expenses will depend on the determinations we make as to the scientific and clinical prospects of each product candidate , as well as our ongoing assessment of the regulatory requirements and each product 's commercial potential . in addition , we may make acquisitions of businesses , technologies or intellectual property rights that we believe would be necessary , useful or complementary to our current business . any investment made in a potential acquisition could affect our results of operations and reduce our limited capital resources , and any issuance of equity securities in connection with a potential acquisition could be substantially dilutive to our stockholders . there can be no assurance that we will be able to successfully develop or acquire any product , or that we will be able to recover our development or acquisition costs , whether upon commercialization of a developed product or otherwise . we can not provide assurance that any of our programs under development or any acquired technologies or products will result in products that can be marketed or marketed profitably . if our development-stage programs or any acquired products or technologies do not result in commercially viable products , our results of operations could be materially adversely affected . we were incorporated on april 2 , 2003 , under the name of design source , inc. on october 26 , 2010 , we acquired the business of invivo therapeutics corporation , which was founded in 2005 , and continued the existing business operations of invivo therapeutics corporation as our wholly-owned subsidiary . critical accounting policies and estimates our consolidated financial statements , which appear in item 8 of this annual report on form 10-k , have been prepared in accordance with accounting principles generally accepted in the united states , which require that the management make certain assumptions and estimates and , in connection therewith , adopt certain accounting policies . our significant accounting policies are set forth in note 2 in the notes to consolidated financial statements . story_separator_special_tag we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . additionally , if and when we believe a regulatory approval of the first product candidate appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . recent accounting pronouncements in august 2014 , the fasb issued asu 2014-15 , presentation of financial statementsgoing concern , on disclosure of uncertainties about an entity 's ability to continue as a going concern . this guidance addresses management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and to provide related footnote disclosures . the guidance is effective for fiscal years ending after december 15 , 2016 and for annual and interim periods thereafter , with early adoption permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . in april 2015 , the financial accounting standards board ( the `` fasb `` ) issued accounting standards update ( `` asu `` ) 2015-03 , `` interestimputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs `` . asu 2015-03 is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the recognition and measurement guidance for debt issuance costs are not affected by the amendments in this asu . this new guidance is effective for fiscal years beginning after december 15 , 2015 and interim periods within those fiscal years . early adoption is permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . results of operations comparison of the years ended december 31 , 2015 and 2014 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses decreased by $ 215 to $ 10,058 for the year ended december 31 , 2015 from $ 10,273 for the year ended december 31 , 2014. after adjusting for the insurance settlement related to business interruption , ( $ 621 for 2014 ) , the research and development expenses were $ 10,894 for 2014. the decrease in adjusted research and development expenses for 2015 of $ 836 is primarily attributable to lower consulting costs ( $ 612 ) , testing costs ( $ 375 ) , packaging and lab supplies ( $ 359 ) and lower compensation related expenses related to the 2014 reduction in force ( $ 564 ) and other various expenses ( $ 338 ) . these reductions were partly offset by higher clinical trial costs ( $ 729 ) , stock comp expense ( $ 147 ) and bonuses ( $ 536 ) . there was a higher bonus expense in 49 2015 compared to 2014 due to the fact that in 2014 the accrual which related to the 2013 bonus accrual was reversed because of the company 's decision not paying out the 2013 bonuses . general and administrative expenses general and administrative expenses increased by $ 4,774 to $ 12,340 for the year ended december 31 , 2015 from $ 7,566 for the year ended december 31 , 2014. the increase in general and administrative expenses for 2015 is primarily attributable to higher legal costs ( $ 1,361 ) , related to the sec and msd inquiries as well as the class action law suit , higher stock compensation expense ( $ 1,789 ) , higher investor relation expense and nasdaq listing fees ( $ 425 ) , an increase in board and audit fees ( $ 251 ) , consulting costs ( $ 387 ) and other various expenses ( $ 561 ) . interest income interest income increased by $ 55 to $ 60 for the year ended december 31 , 2015 from $ 5 for the year ended december 31 , 2014. the increase is related to interest earned on our short-term investments . interest expense interest expense increased by $ 36 to $ 172 for the year ended december 31 , 2015 from $ 136 for the year ended december 31 , 2014. the increase in interest expense is due the amortization of the premium or discount values of our short-term investments compared to the maturity value . derivatives gain ( loss ) derivative losses increased by $ 10,428 to a loss of $ 10,804 for the year ended december 31 , 2015 from a loss of $ 376 for the year ended december 31 , 2014. the 2015 loss of $ 10,804 reflects the increase in the fair value of derivative warrant liability which was due primarily to the increase in the fair value of the underlying common stock , the decreasing term to expiration of the warrants as well as the exercise of approximately 78 % of the outstanding warrants during 2015. comparison of the years ended december 31 , 2014 and 2013 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses , as reported , decreased by $ 260 to $ 10,273 for the year ended december 31 , 2014 from $ 10,533 for the year ended december 31 , 2013. after adjusting for the insurance settlements related to business interruption , ( $ 621 for 2014 and $ 1,100 for 2013 ) , the research and development expenses were $ 10,894 and $ 11,633 for 2014 and 2013 respectively . the decrease in adjusted research

liquidity and capital resources since inception , we have devoted substantially all of our efforts to business planning , research and development , recruiting management and technical staff , acquiring operating assets and raising capital . at december 31 , 2015 , our accumulated deficit was $ 133,569. at december 31 , 2015 , we had total assets of $ 21,792 and total liabilities of $ 4,863 , resulting in stockholders ' equity of $ 16,929 , and had a net loss of $ 33,314 for the year ended december 31 , 2015. we have not achieved profitability and may not be able to realize sufficient revenue to achieve or sustain profitability in the future . we do not expect to be profitable in the next several years , but rather expect to incur additional operating losses . we have limited liquidity and capital resources and must obtain significant additional capital resources in order to fund our operations and sustain our product development efforts , for acquisition of technologies and intellectual property rights , for preclinical and clinical testing of our anticipated products , pursuit of regulatory approvals , acquisition of capital equipment , laboratory and office facilities , establishment of production capabilities , for selling , general and administrative expenses and other working capital requirements . we also expect that we will need to raise additional capital through a combination of equity offerings , debt financings , other third party funding , marketing and distribution arrangements and other collaborations , strategic alliances and licensing arrangements since our inception , we have historically financed our operations primarily through the sale of equity-related 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 since inception , we have devoted substantially all of our efforts to business planning , research and development , recruiting management and technical staff , acquiring operating assets and raising capital . at december 31 , 2015 , our accumulated deficit was $ 133,569. at december 31 , 2015 , we had total assets of $ 21,792 and total liabilities of $ 4,863 , resulting in stockholders ' equity of $ 16,929 , and had a net loss of $ 33,314 for the year ended december 31 , 2015. we have not achieved profitability and may not be able to realize sufficient revenue to achieve or sustain profitability in the future . we do not expect to be profitable in the next several years , but rather expect to incur additional operating losses . we have limited liquidity and capital resources and must obtain significant additional capital resources in order to fund our operations and sustain our product development efforts , for acquisition of technologies and intellectual property rights , for preclinical and clinical testing of our anticipated products , pursuit of regulatory approvals , acquisition of capital equipment , laboratory and office facilities , establishment of production capabilities , for selling , general and administrative expenses and other working capital requirements . we also expect that we will need to raise additional capital through a combination of equity offerings , debt financings , other third party funding , marketing and distribution arrangements and other collaborations , strategic alliances and licensing arrangements since our inception , we have historically financed our operations primarily through the sale of equity-related securities .
```    
 Suspicious Activity Report : we do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on form 10-k. all share amounts give effect to the 1-for-4 reverse stock split of our outstanding shares of common stock that occurred on april 8 , 2015 . introduction this management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which management has prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base estimates on historical experience and on various other factors that management believes are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . business overview we are a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries ( sci ) . our mission is to redefine the life of the sci patient , and we are developing treatment options intended to provide meaningful improvement in patient outcomes following sci . our approach to treating acute scis is based on our investigational neuro spinal scaffold implant , an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury . we believe the neuro spinal scaffold implant is the only sci therapy in development focused solely on treating acute sci directly at the epicenter of the injury , and incorporates intellectual property licensed under an exclusive , world wide license from boston children 's hospital ( `` bch `` ) and the massachusetts institute of technology ( `` mit `` ) . we are continually evaluating other technologies and therapeutics that may be complementary to our development of the neuro-spinal scaffold implant or offer the potential to bring us closer to our goal of redefining the life of the sci patient . recently we entered into exclusive license/assignment agreements with the university of california , san diego and james guest , m.d . , ph.d. covering delivery methods and devices for our preclinical bioengineered neural trails injection program . overall , we expect our research and development expenses to be substantial and to increase for the foreseeable future as we continue the development and clinical investigation of our current and future products . however , expenditures on research and development programs are subject to many uncertainties , including whether we develop our products with a partner or independently or acquire products . at this time , due to the uncertainties and inherent risks involved in our business , we can not estimate in a meaningful way the duration of , or the costs to complete , our research and development 46 programs or whether , when or to what extent we will generate revenues or cash inflows from the commercialization and sale of any of our products . while we are currently focused on advancing our neuro-spinal scaffold implant , our future research and development expenses will depend on the determinations we make as to the scientific and clinical prospects of each product candidate , as well as our ongoing assessment of the regulatory requirements and each product 's commercial potential . in addition , we may make acquisitions of businesses , technologies or intellectual property rights that we believe would be necessary , useful or complementary to our current business . any investment made in a potential acquisition could affect our results of operations and reduce our limited capital resources , and any issuance of equity securities in connection with a potential acquisition could be substantially dilutive to our stockholders . there can be no assurance that we will be able to successfully develop or acquire any product , or that we will be able to recover our development or acquisition costs , whether upon commercialization of a developed product or otherwise . we can not provide assurance that any of our programs under development or any acquired technologies or products will result in products that can be marketed or marketed profitably . if our development-stage programs or any acquired products or technologies do not result in commercially viable products , our results of operations could be materially adversely affected . we were incorporated on april 2 , 2003 , under the name of design source , inc. on october 26 , 2010 , we acquired the business of invivo therapeutics corporation , which was founded in 2005 , and continued the existing business operations of invivo therapeutics corporation as our wholly-owned subsidiary . critical accounting policies and estimates our consolidated financial statements , which appear in item 8 of this annual report on form 10-k , have been prepared in accordance with accounting principles generally accepted in the united states , which require that the management make certain assumptions and estimates and , in connection therewith , adopt certain accounting policies . our significant accounting policies are set forth in note 2 in the notes to consolidated financial statements . story_separator_special_tag we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . additionally , if and when we believe a regulatory approval of the first product candidate appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . recent accounting pronouncements in august 2014 , the fasb issued asu 2014-15 , presentation of financial statementsgoing concern , on disclosure of uncertainties about an entity 's ability to continue as a going concern . this guidance addresses management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and to provide related footnote disclosures . the guidance is effective for fiscal years ending after december 15 , 2016 and for annual and interim periods thereafter , with early adoption permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . in april 2015 , the financial accounting standards board ( the `` fasb `` ) issued accounting standards update ( `` asu `` ) 2015-03 , `` interestimputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs `` . asu 2015-03 is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the recognition and measurement guidance for debt issuance costs are not affected by the amendments in this asu . this new guidance is effective for fiscal years beginning after december 15 , 2015 and interim periods within those fiscal years . early adoption is permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . results of operations comparison of the years ended december 31 , 2015 and 2014 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses decreased by $ 215 to $ 10,058 for the year ended december 31 , 2015 from $ 10,273 for the year ended december 31 , 2014. after adjusting for the insurance settlement related to business interruption , ( $ 621 for 2014 ) , the research and development expenses were $ 10,894 for 2014. the decrease in adjusted research and development expenses for 2015 of $ 836 is primarily attributable to lower consulting costs ( $ 612 ) , testing costs ( $ 375 ) , packaging and lab supplies ( $ 359 ) and lower compensation related expenses related to the 2014 reduction in force ( $ 564 ) and other various expenses ( $ 338 ) . these reductions were partly offset by higher clinical trial costs ( $ 729 ) , stock comp expense ( $ 147 ) and bonuses ( $ 536 ) . there was a higher bonus expense in 49 2015 compared to 2014 due to the fact that in 2014 the accrual which related to the 2013 bonus accrual was reversed because of the company 's decision not paying out the 2013 bonuses . general and administrative expenses general and administrative expenses increased by $ 4,774 to $ 12,340 for the year ended december 31 , 2015 from $ 7,566 for the year ended december 31 , 2014. the increase in general and administrative expenses for 2015 is primarily attributable to higher legal costs ( $ 1,361 ) , related to the sec and msd inquiries as well as the class action law suit , higher stock compensation expense ( $ 1,789 ) , higher investor relation expense and nasdaq listing fees ( $ 425 ) , an increase in board and audit fees ( $ 251 ) , consulting costs ( $ 387 ) and other various expenses ( $ 561 ) . interest income interest income increased by $ 55 to $ 60 for the year ended december 31 , 2015 from $ 5 for the year ended december 31 , 2014. the increase is related to interest earned on our short-term investments . interest expense interest expense increased by $ 36 to $ 172 for the year ended december 31 , 2015 from $ 136 for the year ended december 31 , 2014. the increase in interest expense is due the amortization of the premium or discount values of our short-term investments compared to the maturity value . derivatives gain ( loss ) derivative losses increased by $ 10,428 to a loss of $ 10,804 for the year ended december 31 , 2015 from a loss of $ 376 for the year ended december 31 , 2014. the 2015 loss of $ 10,804 reflects the increase in the fair value of derivative warrant liability which was due primarily to the increase in the fair value of the underlying common stock , the decreasing term to expiration of the warrants as well as the exercise of approximately 78 % of the outstanding warrants during 2015. comparison of the years ended december 31 , 2014 and 2013 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses , as reported , decreased by $ 260 to $ 10,273 for the year ended december 31 , 2014 from $ 10,533 for the year ended december 31 , 2013. after adjusting for the insurance settlements related to business interruption , ( $ 621 for 2014 and $ 1,100 for 2013 ) , the research and development expenses were $ 10,894 and $ 11,633 for 2014 and 2013 respectively . the decrease in adjusted research

