the following table sets forth , for the periods indicated , the selected statements of operations data as a percentage of total revenue : replace_table_token_4_th results for the year ended december 31 , 2014 compared to results for the year ended december 31 , 2013 revenue increased $ 2.3 million or 9 % to $ 29.2 million in 2014 compared to $ 26.9 million in 2013. this increase was due to an increase in volume from new and existing clients . the increase in volume was primarily driven by new customers which is a result of our recently expanded sales force and several sales initiatives . average revenue per sample remained the same between 2014 and 2013. gross profit decreased $ 256 thousand to $ 15.1 million in 2014 compared to $ 15.4 million in 2013. direct costs increased by 23 % from 2013 to 2014 , driven by the company 's capacity expansion project and higher volume . the capacity expansion costs within cost of sales was approximately $ 1.3 million and included ; $ 0.5 million for hiring and training of additional personnel , $ 0.5 million for building related costs , and $ 0.3 million for information technology and other one-time project costs . the gross profit margin decreased from 57 % in 2013 to 52 % in 2014. general and administrative ( “ g & a ” ) expenses were $ 4.5 million in 2014 compared to $ 4.2 in 2013 , an increase of 8 % . in 2014 , g & a costs included approximately $ 0.2 million related to the company 's capacity expansion project . as a percentage of revenue , g & a expenses were 15.3 % and 15.5 % for 2014 and 2013 , respectively . marketing and selling expenses were $ 4.6 million in 2014 , compared to $ 4.7 million in 2013 , a decrease of 2 % . total marketing and selling expenses represented 15.8 % and 17.5 % of revenue for 2014 and 2013 , respectively . 12 research and development ( “ r & d ” ) expenses were $ 1.3 million in 2014 compared to $ 0.8 million in 2013. r & d expenses increased from additional personnel and supplies used to develop new tests for drugs of abuse as well as process improvements . r & d expenses represented 4.6 % and 3.1 % of revenue for 2014 and 2013 , respectively . other income ( expense ) represented $ 57 thousand of other expenses for 2014 compared to $ 92 thousand of other income for 2013. the expense in 2014 was driven by interest expense related to long term debt incurred in 2014 , while the income in 2013 represented a one- time insurance reimbursement of legal expenses . during the year ended december 31 , 2014 , the company recorded a tax provision of $ 1.4 million , representing an effective tax rate of 30.8 % . during the year ended december 31 , 2013 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 34.4 % . the change in tax rate was driven by r & d tax credits from higher r & d spending and from a california r & d tax credit which was not previously taken . we expect the tax rate to be from 32 % to 34 % for the foreseeable future . results for the year ended december 31 , 2013 compared to results for the year ended december 31 , 2012 revenue increased $ 1.7 million or 7 % to $ 26.9 million in 2013 compared to $ 25.2 million in 2012. this increase was due to an increase in volume from new and existing clients . the increase in volume was primarily driven by new customers which is a result of our recently expanded sales force and several sales initiatives . average revenue per sample decreased 2 % between 2013 and 2012. the revenue per sample decrease was driven primarily from by the mix of customers , with a larger percentage of the business coming from lower priced customers . gross profit increased $ 1.1 million to $ 15.4 million in 2013 compared to $ 14.3 million in 2012. direct costs increased by 5 % from 2012 to 2013 , driven by the higher volume . the gross profit margin remained the same at 57 % in 2013 and 2012. general and administrative ( “ g & a ” ) expenses were $ 4.2 million in 2013 compared to $ 3.9 in 2012 , an increase of 5 % . as a percentage of revenue , g & a expenses were 15.5 % and 15.6 % for 2013 and 2012 , respectively . marketing and selling expenses were $ 4.7 million in 2013 , compared to $ 4.5 million in 2012 , an increase of 4 % . total marketing and selling expenses represented 17.5 % and 18.0 % of revenue for 2013 and 2012 , respectively . research and development ( “ r & d ” ) expenses were $ 0.8 million in 2013 and 2012. r & d expenses represented 3.1 % and 3.3 % of revenue for 2013 and 2012 , respectively . other income increased approximately $ 90 thousand to approximately $ 92 thousand for 2013 compared to $ 2 thousand for 2012. the increase was from an insurance reimbursement of legal expenses . during the year ended december 31 , 2013 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 34.4 % . during the year ended december 31 , 2012 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 39.7 story_separator_special_tag % . the change in tax rate was driven by a new allocation method for calculating income tax in california . this new calculation requires income tax to be paid only on the sales made within california . the old method taxed all income produced in california , and as the company has only one laboratory , which is located in california , 100 % of the income had been subject to california income tax . the rate also benefited from an r & d tax credit from 2012 which was recognized in 2013. we expect the tax rate to be approximately 34 % for the foreseeable future . story_separator_special_tag customer . the company recognizes revenue in accordance with accounting standards codification “ asc ” 605 , “ revenue recognition . ” in accordance with asc 605 , the company considers testing , training and storage elements as one unit of accounting for revenue recognition purposes , as the training and storage costs are de minimis and do not have stand-alone value to the customer . the company recognizes revenue as the service is performed and reported to the customer , since the predominant deliverable in each arrangement is the testing of the units . the company also provides expert testimony , when and if necessary , to support the results of the tests , which is generally billed separately and recognized as the services are provided . estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates , including bad debts , long-lived asset lives , income tax valuation and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from those estimates . 14 capitalized development costs we capitalize costs related to significant software projects developed or obtained for internal use in accordance with u.s. generally accepted accounting standards . costs incurred during the preliminary project work stage or conceptual stage , such as determining the performance requirements , system requirements and data conversion , are expensed as incurred . costs incurred in the application development phase , such as coding , testing for new software and upgrades that result in additional functionality , are capitalized and are amortized using the straight-line method over the useful life of the software for 5 years . costs incurred during the post-implementation/operation stage , including training costs and maintenance costs , are expensed as incurred . we capitalized internally developed software costs of approximately $ 403,000 , $ 715,000 and $ 794,000 during the years ended december 31 , 2014 , 2013 and 2012 , respectively . the software development is for primarily for two projects . determining whether particular costs incurred are more properly attributable to the preliminary or conceptual stage , and thus expensed , or to the application development phase , and thus capitalized and amortized , depends on subjective judgments about the nature of the development work , and our judgments in this regard may differ from those made by other companies . general and administrative costs related to developing or obtaining such software are expensed as incurred . allowance for doubtful accounts the allowance for doubtful accounts is based on management 's assessment of the ability to collect amounts owed to it by its customers . management reviews its accounts receivable aging for doubtful accounts and uses a methodology based on calculating the allowance using a combination of factors including the age of the receivable along with management 's judgment to identify accounts that may not be collectible . the company routinely assesses the financial strength of its customers and , as a consequence , believes that its accounts receivable credit risk exposure is limited . the company maintains an allowance for potential credit losses but historically has not experienced any significant losses related to individual customers or groups of customers in any particular industry or geographic area . bad debt expense has been within management 's expectations . income taxes the company accounts for income taxes using the liability method , which requires the company to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable . deferred tax expense ( benefit ) results from the net change in deferred tax assets and liabilities during the year . a deferred tax valuation allowance is required if it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized . the company had net deferred tax liabilities in the amount of $ 2.4 million at december 31 , 2014 , which primarily relate to timing differences . there was an increase of $ 1.4 million from 2013 which was primarily driven by bonus depreciation as part of the tax extender bill passed in december 2014 , for equipment purchases in 2014. in 2014 , the company 's tax rate was reduced as a result of two r & d tax credit items . the first was a california r & d tax credit which had not been previously taken and the company recognized the benefit of prior years as well as 2014 in the current year . the second impact came from the increase in spending in r & d which increased both the california and federal r & d tax credit . the company operates within multiple taxing jurisdictions and could be subject to audit in these jurisdictions . these audits may involve complex issues , which may require an extended period of time to resolve . the company has provided for its estimated taxes

liquidity and capital resources at december 31 , 2014 , the company had $ 3.6 million of cash , compared to $ 4.0 million at december 31 , 2013. the company 's operating activities generated net cash of $ 4.5 million in 2014 , $ 6.0 million in 2013 and $ 3.1 million in 2012. investing activities used $ 7.8 million in 2014 , $ 1.8 million in 2013 and $ 2.3 million in 2012. financing activities generated $ 3.0 million in 2014 , used $ 3.3 million in 2013 and used $ 3.2 million in 2012. operating cash flow of $ 4.5 million in 2014 primarily reflected net income of $ 3.2 million adjusted for depreciation and amortization of $ 1.1 million , stock compensation expense of $ 0.6 million , and an increase in net deferred tax liabilities of $ 1.4 million . this was affected by the following changes in assets and liabilities : a decrease in accounts receivable of $ 0.3 million , an increase in accounts payable of $ 0.3 million , a decrease in accrued expenses of $ 1.2 million , and an increase in prepaid expenses ( and other current assets ) of $ 1.2 million . the decrease in accrued expenses was driven by a $ 1.2 million reduction in the liability for equipment purchases which were paid for in 2014. the change in deferred tax liabilities and other current assets was driven by bonus depreciation on new assets purchased as part of the tax extender bill passed in december 2014. operating cash flow of $ 6.0 million in 2013 primarily reflected net income of $ 3.8 million adjusted for depreciation and amortization of $ 0.9 million , stock compensation expense of $ 0.5 million , and an increase in net deferred tax liabilities of $ 0.4 million . this was affected by the following changes in assets and liabilities : a decrease in accounts receivable of $ 0.3 million , a decrease in accounts payable of $ 0.2 million , a decrease in accrued expenses of $ 0.1 million , and a decrease in prepaid expenses ( and other current assets ) of $ 0.4 million .


 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 , the company had $ 3.6 million of cash , compared to $ 4.0 million at december 31 , 2013. the company 's operating activities generated net cash of $ 4.5 million in 2014 , $ 6.0 million in 2013 and $ 3.1 million in 2012. investing activities used $ 7.8 million in 2014 , $ 1.8 million in 2013 and $ 2.3 million in 2012. financing activities generated $ 3.0 million in 2014 , used $ 3.3 million in 2013 and used $ 3.2 million in 2012. operating cash flow of $ 4.5 million in 2014 primarily reflected net income of $ 3.2 million adjusted for depreciation and amortization of $ 1.1 million , stock compensation expense of $ 0.6 million , and an increase in net deferred tax liabilities of $ 1.4 million . this was affected by the following changes in assets and liabilities : a decrease in accounts receivable of $ 0.3 million , an increase in accounts payable of $ 0.3 million , a decrease in accrued expenses of $ 1.2 million , and an increase in prepaid expenses ( and other current assets ) of $ 1.2 million . the decrease in accrued expenses was driven by a $ 1.2 million reduction in the liability for equipment purchases which were paid for in 2014. the change in deferred tax liabilities and other current assets was driven by bonus depreciation on new assets purchased as part of the tax extender bill passed in december 2014. operating cash flow of $ 6.0 million in 2013 primarily reflected net income of $ 3.8 million adjusted for depreciation and amortization of $ 0.9 million , stock compensation expense of $ 0.5 million , and an increase in net deferred tax liabilities of $ 0.4 million . this was affected by the following changes in assets and liabilities : a decrease in accounts receivable of $ 0.3 million , a decrease in accounts payable of $ 0.2 million , a decrease in accrued expenses of $ 0.1 million , and a decrease in prepaid expenses ( and other current assets ) of $ 0.4 million .
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 Suspicious Activity Report : the following table sets forth , for the periods indicated , the selected statements of operations data as a percentage of total revenue : replace_table_token_4_th results for the year ended december 31 , 2014 compared to results for the year ended december 31 , 2013 revenue increased $ 2.3 million or 9 % to $ 29.2 million in 2014 compared to $ 26.9 million in 2013. this increase was due to an increase in volume from new and existing clients . the increase in volume was primarily driven by new customers which is a result of our recently expanded sales force and several sales initiatives . average revenue per sample remained the same between 2014 and 2013. gross profit decreased $ 256 thousand to $ 15.1 million in 2014 compared to $ 15.4 million in 2013. direct costs increased by 23 % from 2013 to 2014 , driven by the company 's capacity expansion project and higher volume . the capacity expansion costs within cost of sales was approximately $ 1.3 million and included ; $ 0.5 million for hiring and training of additional personnel , $ 0.5 million for building related costs , and $ 0.3 million for information technology and other one-time project costs . the gross profit margin decreased from 57 % in 2013 to 52 % in 2014. general and administrative ( “ g & a ” ) expenses were $ 4.5 million in 2014 compared to $ 4.2 in 2013 , an increase of 8 % . in 2014 , g & a costs included approximately $ 0.2 million related to the company 's capacity expansion project . as a percentage of revenue , g & a expenses were 15.3 % and 15.5 % for 2014 and 2013 , respectively . marketing and selling expenses were $ 4.6 million in 2014 , compared to $ 4.7 million in 2013 , a decrease of 2 % . total marketing and selling expenses represented 15.8 % and 17.5 % of revenue for 2014 and 2013 , respectively . 12 research and development ( “ r & d ” ) expenses were $ 1.3 million in 2014 compared to $ 0.8 million in 2013. r & d expenses increased from additional personnel and supplies used to develop new tests for drugs of abuse as well as process improvements . r & d expenses represented 4.6 % and 3.1 % of revenue for 2014 and 2013 , respectively . other income ( expense ) represented $ 57 thousand of other expenses for 2014 compared to $ 92 thousand of other income for 2013. the expense in 2014 was driven by interest expense related to long term debt incurred in 2014 , while the income in 2013 represented a one- time insurance reimbursement of legal expenses . during the year ended december 31 , 2014 , the company recorded a tax provision of $ 1.4 million , representing an effective tax rate of 30.8 % . during the year ended december 31 , 2013 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 34.4 % . the change in tax rate was driven by r & d tax credits from higher r & d spending and from a california r & d tax credit which was not previously taken . we expect the tax rate to be from 32 % to 34 % for the foreseeable future . results for the year ended december 31 , 2013 compared to results for the year ended december 31 , 2012 revenue increased $ 1.7 million or 7 % to $ 26.9 million in 2013 compared to $ 25.2 million in 2012. this increase was due to an increase in volume from new and existing clients . the increase in volume was primarily driven by new customers which is a result of our recently expanded sales force and several sales initiatives . average revenue per sample decreased 2 % between 2013 and 2012. the revenue per sample decrease was driven primarily from by the mix of customers , with a larger percentage of the business coming from lower priced customers . gross profit increased $ 1.1 million to $ 15.4 million in 2013 compared to $ 14.3 million in 2012. direct costs increased by 5 % from 2012 to 2013 , driven by the higher volume . the gross profit margin remained the same at 57 % in 2013 and 2012. general and administrative ( “ g & a ” ) expenses were $ 4.2 million in 2013 compared to $ 3.9 in 2012 , an increase of 5 % . as a percentage of revenue , g & a expenses were 15.5 % and 15.6 % for 2013 and 2012 , respectively . marketing and selling expenses were $ 4.7 million in 2013 , compared to $ 4.5 million in 2012 , an increase of 4 % . total marketing and selling expenses represented 17.5 % and 18.0 % of revenue for 2013 and 2012 , respectively . research and development ( “ r & d ” ) expenses were $ 0.8 million in 2013 and 2012. r & d expenses represented 3.1 % and 3.3 % of revenue for 2013 and 2012 , respectively . other income increased approximately $ 90 thousand to approximately $ 92 thousand for 2013 compared to $ 2 thousand for 2012. the increase was from an insurance reimbursement of legal expenses . during the year ended december 31 , 2013 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 34.4 % . during the year ended december 31 , 2012 , the company recorded a tax provision of $ 2.0 million , representing an effective tax rate of 39.7 story_separator_special_tag % . the change in tax rate was driven by a new allocation method for calculating income tax in california . this new calculation requires income tax to be paid only on the sales made within california . the old method taxed all income produced in california , and as the company has only one laboratory , which is located in california , 100 % of the income had been subject to california income tax . the rate also benefited from an r & d tax credit from 2012 which was recognized in 2013. we expect the tax rate to be approximately 34 % for the foreseeable future . story_separator_special_tag customer . the company recognizes revenue in accordance with accounting standards codification “ asc ” 605 , “ revenue recognition . ” in accordance with asc 605 , the company considers testing , training and storage elements as one unit of accounting for revenue recognition purposes , as the training and storage costs are de minimis and do not have stand-alone value to the customer . the company recognizes revenue as the service is performed and reported to the customer , since the predominant deliverable in each arrangement is the testing of the units . the company also provides expert testimony , when and if necessary , to support the results of the tests , which is generally billed separately and recognized as the services are provided . estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates , including bad debts , long-lived asset lives , income tax valuation and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from those estimates . 14 capitalized development costs we capitalize costs related to significant software projects developed or obtained for internal use in accordance with u.s. generally accepted accounting standards . costs incurred during the preliminary project work stage or conceptual stage , such as determining the performance requirements , system requirements and data conversion , are expensed as incurred . costs incurred in the application development phase , such as coding , testing for new software and upgrades that result in additional functionality , are capitalized and are amortized using the straight-line method over the useful life of the software for 5 years . costs incurred during the post-implementation/operation stage , including training costs and maintenance costs , are expensed as incurred . we capitalized internally developed software costs of approximately $ 403,000 , $ 715,000 and $ 794,000 during the years ended december 31 , 2014 , 2013 and 2012 , respectively . the software development is for primarily for two projects . determining whether particular costs incurred are more properly attributable to the preliminary or conceptual stage , and thus expensed , or to the application development phase , and thus capitalized and amortized , depends on subjective judgments about the nature of the development work , and our judgments in this regard may differ from those made by other companies . general and administrative costs related to developing or obtaining such software are expensed as incurred . allowance for doubtful accounts the allowance for doubtful accounts is based on management 's assessment of the ability to collect amounts owed to it by its customers . management reviews its accounts receivable aging for doubtful accounts and uses a methodology based on calculating the allowance using a combination of factors including the age of the receivable along with management 's judgment to identify accounts that may not be collectible . the company routinely assesses the financial strength of its customers and , as a consequence , believes that its accounts receivable credit risk exposure is limited . the company maintains an allowance for potential credit losses but historically has not experienced any significant losses related to individual customers or groups of customers in any particular industry or geographic area . bad debt expense has been within management 's expectations . income taxes the company accounts for income taxes using the liability method , which requires the company to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable . deferred tax expense ( benefit ) results from the net change in deferred tax assets and liabilities during the year . a deferred tax valuation allowance is required if it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized . the company had net deferred tax liabilities in the amount of $ 2.4 million at december 31 , 2014 , which primarily relate to timing differences . there was an increase of $ 1.4 million from 2013 which was primarily driven by bonus depreciation as part of the tax extender bill passed in december 2014 , for equipment purchases in 2014. in 2014 , the company 's tax rate was reduced as a result of two r & d tax credit items . the first was a california r & d tax credit which had not been previously taken and the company recognized the benefit of prior years as well as 2014 in the current year . the second impact came from the increase in spending in r & d which increased both the california and federal r & d tax credit . the company operates within multiple taxing jurisdictions and could be subject to audit in these jurisdictions . these audits may involve complex issues , which may require an extended period of time to resolve . the company has provided for its estimated taxes

