we developed our technology platform to be compatible with the existing approximately 23 bgpy of global operating ethanol production capacity , as estimated by the rfa . gift ® is designed to permit ( i ) the retrofit of existing ethanol capacity to produce isobutanol , ethanol or both products simultaneously , or ( ii ) the addition of renewable isobutanol or ethanol production capabilities to a facility 's existing ethanol production by adding additional fermentation capacity side-by-side with the facility 's existing ethanol fermentation capacity ( collectively referred to as “ retrofit ” ) . having the flexibility to switch between the production of isobutanol and ethanol , or produce both products simultaneously , should allow us to optimize asset utilization and cash flows at a facility by taking advantage of fluctuations in market conditions . gift ® is also designed to allow relatively low capital expenditure retrofits of existing ethanol facilities , enabling a rapid route to isobutanol production from the fermentation of renewable feedstocks . we believe that our production route will be cost-efficient and will enable rapid deployment of our technology platform and allow our isobutanol and related renewable products to be economically competitive with many of the petroleum-based products used in the chemicals and fuels markets today . we expect that the combination of our efficient proprietary technology , our marketing focus on providing drop-in substitutes for incumbent petrochemical products and our relatively low capital investment retrofits will mitigate many of the historical issues associated with the commercialization of renewable chemicals and fuels . financial condition for the year ended december 31 , 2014 , we incurred a consolidated net loss of $ 41.1 million and had an accumulated deficit of $ 303.3 million . our cash and cash equivalents at december 31 , 2014 totaled $ 6.4 million which is primarily being used for the following : ( i ) operating activities and completion of the side-by-side configuration of our agri-energy facility ; ( ii ) operating activities at our corporate headquarters in colorado , including research and development work ; ( iii ) capital improvements primarily associated with the agri-energy facility ; ( iv ) costs associated with optimizing isobutanol production technology ; ( v ) costs associated with the ongoing litigation with butamax ; and ( vi ) debt service obligations . we expect to incur future net losses as we continue to fund the development and commercialization of our product candidates . our t ransition to profitability is dependent upon , among other things , the successful development and commercialization of our product candidates and the achievement of a level of revenues adequate to 63 support our existing cost st ructure . we may never achieve profitability or generate positive cash flows , and unless and until we do , we will continue to need to raise additional cash . we intend to fund future operations through additional private and or public offerings of debt or equity securities . in addition , we may seek additional capital through arrangements with strategic partners or from other sources , may seek to restructure our debt and we will continue to address the company 's cost structure . notwithstanding , there can be no assurance that we will be able to raise additional funds , or achieve or sustain profitability or positive cash flows from operations . based on our operating plan , existing working capital at december 31 , 2014 was not sufficient to meet the cash requirements to fund planned operations through december 31 , 2015 without additional sources of cash . these conditions raise substantial doubt about our ability to continue as a going concern . see note 20 in item 8 , financial statements and supplementary data , of this report , for information on the company 's issuance of common stock units subsequent to december 31 , 2014. agri-energy in september 2010 , we acquired the agri-energy facility which we have retrofitted for the production of isobutanol . as of december 31 , 2014 , we have incurred capital costs of approximately $ 65.6 million on the retrofit of the agri-energy facility . the retrofit of the agri-energy facility includes a number of additional capital costs that are unique to the design of the facility , including additional equipment that we believe will allow us to switch between ethanol and isobutanol production , or produce both products simultaneously , modifications to increase the potential production capacity of gift ® at the agri-energy facility and the establishment of an enhanced yeast seed train to accelerate the adoption of improved yeast at the agri-energy facility and at future plants . capital expenditures at the agri-energy facility also include upfront design and engineering costs , plant modifications identified as necessary during initial startup operations for the production of isobutanol as well as capitalized interest . in may 2012 , we commenced initial startup operations for the production of isobutanol at the agri-energy facility . in september 2012 , as a result of a lower than planned production rate of isobutanol we made the strategic decision to pause isobutanol production at the agri-energy facility at the conclusion of startup operations to focus on optimizing specific parts of the process to further enhance isobutanol production rates . in 2013 , we modified our agri-energy facility in order to increase the isobutanol production rates . in june 2013 , we resumed the limited production of isobutanol operating one fermenter and one gift ® separation system in order to ( i ) verify that the modifications had significantly reduced the previously identified infections , ( ii ) demonstrate that our biocatalyst performs in the one million liter fermenters at the agri-energy facility , and ( iii ) confirm gift ® efficacy at commercial scale at the agri-energy facility . story_separator_special_tag any default under the terms of the 2017 notes could have a material adverse effect on our business , results of operations and financial condition . the company has elected the fair value option for accounting of the term loan and 2017 notes in order for management to mitigate income statement volatility caused by measurement basis differences between the embedded instruments or to eliminate complexities of applying certain accounting models . accordingly , the principal amount of 2017 notes outstanding at december 31 , 2014 of $ 26.1 million has been recorded at its estimated fair value of $ 25.5 million and is included in the 2017 notes recorded at fair value on the consolidated balance sheets at december 31 , 2014. change in the estimated fair value of the 2017 notes represents an unrealized gain included in gain from change in fair value of 2017 notes in the consolidated statements of operations . during the year ended december 31 , 2014 , the company incurred cash interest expense of $ 1.6 million and non-cash paid-in-kind interest expense of $ 0.2 million , which has been capitalized and included in the principal amount of 2017 notes as of december 31 , 2014. the following table sets forth the inputs to the lattice model that were used to value the term loan and 2017 notes for which the fair value option was elected . replace_table_token_5_th 67 the following table sets forth information pertaining to the term loan and 2017 notes which is included in the company 's consolidated balance sheets ( in thousands ) . replace_table_token_6_th changes in certain inputs into the lattice model can have a significant impact on changes in the estimated fair value of the term loan and 2017 notes . for example , the estimated fair value will generally decrease with : ( i ) a decline in the stock price ; ( ii ) a decrease in the estimated stock volatility ; and ( iii ) an increase in the estimated credit spread . the change in the estimated fair value of the 2017 notes during the year ended december 31 , 2014 , represents an unrealized gain which has been recorded as gain from change in fair value of 2017 notes in the consolidated statements of operations . 2022 notes and embedded derivative in july 2012 , we sold $ 45.0 million in aggregate principal amount of 2022 notes . terms of the 2022 notes , include , among others : ( i ) rights to convert into shares of our common stock , including upon a fundamental change ( as defined in the indenture ) ; and ( ii ) a coupon make-whole payment ( as defined in the indenture ) in the event of a conversion by the holders of the 2022 notes prior to july 1 , 2017. embedded derivatives are separated from the host contract , the 2022 notes , and carried at fair value when : ( a ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract ; and ( b ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the company has concluded that the embedded derivatives within the 2022 notes meet these criteria and , as such , must be valued separate and apart from the 2022 notes as one embedded derivative and recorded at fair value each reporting period . the fair value of the embedded derivative is included as a component of the 2022 notes on our consolidated balance sheets . we used a binomial lattice model in order to estimate the fair value of the embedded derivative in the 2022 notes . a binomial lattice model generates two probable outcomes , whether up or down , arising at each point in time , starting from the date of valuation until the maturity date . a lattice was initially used to determine if the 2022 notes would be converted , called or held at each decision point . within the lattice model , the following assumptions are made : ( i ) the 2022 notes will be converted early if the conversion value is greater than the holding value ; and ( ii ) the 2022 notes will be called if the holding value is greater than both ( a ) the redemption price ( as defined in the indenture ) and ( b ) the conversion value plus the coupon make-whole payment at the time . if the 2022 notes are called , then the holders will maximize their value by finding the optimal decision between ( 1 ) redeeming at the redemption price and ( 2 ) converting the 2022 notes . using this lattice , we valued the embedded derivative using a “ with-and-without method , ” where the value of the 2022 notes including the embedded derivative is defined as the “ with , ” and the value of the 2022 notes excluding the embedded derivative is defined as the “ without . ” this method estimates the value of the embedded derivative by looking at the difference in the values between the 2022 notes with the embedded derivative and the value of the 2022 notes without the embedded derivative . the lattice model requires the following inputs : ( i ) price of our common stock ; ( ii ) conversion rate ( as defined in the indenture ) ; ( iii ) conversion price ( as defined in the indenture ) ; ( iv ) maturity date ; ( v ) risk-free interest rate ; ( vi ) estimated stock volatility ; and ( vii ) estimated credit spread for the company . 68 the following table sets forth the inputs to the lattice model used to value the embedded derivative . replace_table_token_7_th the following table sets forth the value of the 2022 notes with and without the embedded

loss on conversion of debt . during the year ended december 31 , 2013 , holders of $ 18.1 million principal amount of 2022 notes opted to convert their holdings into shares of our common stock . upon conversion , the 2022 note holders received 3,179,608 shares of our common stock in payment of converted principal and , pursuant to the terms of the indenture , the 2022 note holders also received 2,957,775 shares of our common stock in settlement of coupon make-whole payments of $ 4.9 million . for the year ended december 31 , 2013 , we recorded a loss on conversion of debt of $ 2.0 million as a result of the conversion of the 2022 notes and settlement of the coupon make-whole payments . gain from change in fair value of 2022 embedded derivatives . during the year ended december 31 , 2014 , we reported a $ 3.5 million gain associated with the decrease in the fair value of derivatives embedded in the 2022 notes primarily resulting from a decline in the price of our common stock between december 31 , 2013 and december 31 , 2014. during the year ended december 31 , 2013 , we reported a $ 3.1 million gain associated with the decrease in the fair value of derivatives embedded in our 2022 notes primarily resulting from a decrease in the price of our common stock between december 31 , 2012 and december 31 , 2013. gain ( loss ) from change in fair value of derivative warrant liability . in december 2013 and august 2014 , we issued warrants to purchase our common stock , which are recorded at fair value each reporting period .


 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.
     ```loss on conversion of debt . during the year ended december 31 , 2013 , holders of $ 18.1 million principal amount of 2022 notes opted to convert their holdings into shares of our common stock . upon conversion , the 2022 note holders received 3,179,608 shares of our common stock in payment of converted principal and , pursuant to the terms of the indenture , the 2022 note holders also received 2,957,775 shares of our common stock in settlement of coupon make-whole payments of $ 4.9 million . for the year ended december 31 , 2013 , we recorded a loss on conversion of debt of $ 2.0 million as a result of the conversion of the 2022 notes and settlement of the coupon make-whole payments . gain from change in fair value of 2022 embedded derivatives . during the year ended december 31 , 2014 , we reported a $ 3.5 million gain associated with the decrease in the fair value of derivatives embedded in the 2022 notes primarily resulting from a decline in the price of our common stock between december 31 , 2013 and december 31 , 2014. during the year ended december 31 , 2013 , we reported a $ 3.1 million gain associated with the decrease in the fair value of derivatives embedded in our 2022 notes primarily resulting from a decrease in the price of our common stock between december 31 , 2012 and december 31 , 2013. gain ( loss ) from change in fair value of derivative warrant liability . in december 2013 and august 2014 , we issued warrants to purchase our common stock , which are recorded at fair value each reporting period .
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 Suspicious Activity Report : we developed our technology platform to be compatible with the existing approximately 23 bgpy of global operating ethanol production capacity , as estimated by the rfa . gift ® is designed to permit ( i ) the retrofit of existing ethanol capacity to produce isobutanol , ethanol or both products simultaneously , or ( ii ) the addition of renewable isobutanol or ethanol production capabilities to a facility 's existing ethanol production by adding additional fermentation capacity side-by-side with the facility 's existing ethanol fermentation capacity ( collectively referred to as “ retrofit ” ) . having the flexibility to switch between the production of isobutanol and ethanol , or produce both products simultaneously , should allow us to optimize asset utilization and cash flows at a facility by taking advantage of fluctuations in market conditions . gift ® is also designed to allow relatively low capital expenditure retrofits of existing ethanol facilities , enabling a rapid route to isobutanol production from the fermentation of renewable feedstocks . we believe that our production route will be cost-efficient and will enable rapid deployment of our technology platform and allow our isobutanol and related renewable products to be economically competitive with many of the petroleum-based products used in the chemicals and fuels markets today . we expect that the combination of our efficient proprietary technology , our marketing focus on providing drop-in substitutes for incumbent petrochemical products and our relatively low capital investment retrofits will mitigate many of the historical issues associated with the commercialization of renewable chemicals and fuels . financial condition for the year ended december 31 , 2014 , we incurred a consolidated net loss of $ 41.1 million and had an accumulated deficit of $ 303.3 million . our cash and cash equivalents at december 31 , 2014 totaled $ 6.4 million which is primarily being used for the following : ( i ) operating activities and completion of the side-by-side configuration of our agri-energy facility ; ( ii ) operating activities at our corporate headquarters in colorado , including research and development work ; ( iii ) capital improvements primarily associated with the agri-energy facility ; ( iv ) costs associated with optimizing isobutanol production technology ; ( v ) costs associated with the ongoing litigation with butamax ; and ( vi ) debt service obligations . we expect to incur future net losses as we continue to fund the development and commercialization of our product candidates . our t ransition to profitability is dependent upon , among other things , the successful development and commercialization of our product candidates and the achievement of a level of revenues adequate to 63 support our existing cost st ructure . we may never achieve profitability or generate positive cash flows , and unless and until we do , we will continue to need to raise additional cash . we intend to fund future operations through additional private and or public offerings of debt or equity securities . in addition , we may seek additional capital through arrangements with strategic partners or from other sources , may seek to restructure our debt and we will continue to address the company 's cost structure . notwithstanding , there can be no assurance that we will be able to raise additional funds , or achieve or sustain profitability or positive cash flows from operations . based on our operating plan , existing working capital at december 31 , 2014 was not sufficient to meet the cash requirements to fund planned operations through december 31 , 2015 without additional sources of cash . these conditions raise substantial doubt about our ability to continue as a going concern . see note 20 in item 8 , financial statements and supplementary data , of this report , for information on the company 's issuance of common stock units subsequent to december 31 , 2014. agri-energy in september 2010 , we acquired the agri-energy facility which we have retrofitted for the production of isobutanol . as of december 31 , 2014 , we have incurred capital costs of approximately $ 65.6 million on the retrofit of the agri-energy facility . the retrofit of the agri-energy facility includes a number of additional capital costs that are unique to the design of the facility , including additional equipment that we believe will allow us to switch between ethanol and isobutanol production , or produce both products simultaneously , modifications to increase the potential production capacity of gift ® at the agri-energy facility and the establishment of an enhanced yeast seed train to accelerate the adoption of improved yeast at the agri-energy facility and at future plants . capital expenditures at the agri-energy facility also include upfront design and engineering costs , plant modifications identified as necessary during initial startup operations for the production of isobutanol as well as capitalized interest . in may 2012 , we commenced initial startup operations for the production of isobutanol at the agri-energy facility . in september 2012 , as a result of a lower than planned production rate of isobutanol we made the strategic decision to pause isobutanol production at the agri-energy facility at the conclusion of startup operations to focus on optimizing specific parts of the process to further enhance isobutanol production rates . in 2013 , we modified our agri-energy facility in order to increase the isobutanol production rates . in june 2013 , we resumed the limited production of isobutanol operating one fermenter and one gift ® separation system in order to ( i ) verify that the modifications had significantly reduced the previously identified infections , ( ii ) demonstrate that our biocatalyst performs in the one million liter fermenters at the agri-energy facility , and ( iii ) confirm gift ® efficacy at commercial scale at the agri-energy facility . story_separator_special_tag any default under the terms of the 2017 notes could have a material adverse effect on our business , results of operations and financial condition . the company has elected the fair value option for accounting of the term loan and 2017 notes in order for management to mitigate income statement volatility caused by measurement basis differences between the embedded instruments or to eliminate complexities of applying certain accounting models . accordingly , the principal amount of 2017 notes outstanding at december 31 , 2014 of $ 26.1 million has been recorded at its estimated fair value of $ 25.5 million and is included in the 2017 notes recorded at fair value on the consolidated balance sheets at december 31 , 2014. change in the estimated fair value of the 2017 notes represents an unrealized gain included in gain from change in fair value of 2017 notes in the consolidated statements of operations . during the year ended december 31 , 2014 , the company incurred cash interest expense of $ 1.6 million and non-cash paid-in-kind interest expense of $ 0.2 million , which has been capitalized and included in the principal amount of 2017 notes as of december 31 , 2014. the following table sets forth the inputs to the lattice model that were used to value the term loan and 2017 notes for which the fair value option was elected . replace_table_token_5_th 67 the following table sets forth information pertaining to the term loan and 2017 notes which is included in the company 's consolidated balance sheets ( in thousands ) . replace_table_token_6_th changes in certain inputs into the lattice model can have a significant impact on changes in the estimated fair value of the term loan and 2017 notes . for example , the estimated fair value will generally decrease with : ( i ) a decline in the stock price ; ( ii ) a decrease in the estimated stock volatility ; and ( iii ) an increase in the estimated credit spread . the change in the estimated fair value of the 2017 notes during the year ended december 31 , 2014 , represents an unrealized gain which has been recorded as gain from change in fair value of 2017 notes in the consolidated statements of operations . 2022 notes and embedded derivative in july 2012 , we sold $ 45.0 million in aggregate principal amount of 2022 notes . terms of the 2022 notes , include , among others : ( i ) rights to convert into shares of our common stock , including upon a fundamental change ( as defined in the indenture ) ; and ( ii ) a coupon make-whole payment ( as defined in the indenture ) in the event of a conversion by the holders of the 2022 notes prior to july 1 , 2017. embedded derivatives are separated from the host contract , the 2022 notes , and carried at fair value when : ( a ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract ; and ( b ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the company has concluded that the embedded derivatives within the 2022 notes meet these criteria and , as such , must be valued separate and apart from the 2022 notes as one embedded derivative and recorded at fair value each reporting period . the fair value of the embedded derivative is included as a component of the 2022 notes on our consolidated balance sheets . we used a binomial lattice model in order to estimate the fair value of the embedded derivative in the 2022 notes . a binomial lattice model generates two probable outcomes , whether up or down , arising at each point in time , starting from the date of valuation until the maturity date . a lattice was initially used to determine if the 2022 notes would be converted , called or held at each decision point . within the lattice model , the following assumptions are made : ( i ) the 2022 notes will be converted early if the conversion value is greater than the holding value ; and ( ii ) the 2022 notes will be called if the holding value is greater than both ( a ) the redemption price ( as defined in the indenture ) and ( b ) the conversion value plus the coupon make-whole payment at the time . if the 2022 notes are called , then the holders will maximize their value by finding the optimal decision between ( 1 ) redeeming at the redemption price and ( 2 ) converting the 2022 notes . using this lattice , we valued the embedded derivative using a “ with-and-without method , ” where the value of the 2022 notes including the embedded derivative is defined as the “ with , ” and the value of the 2022 notes excluding the embedded derivative is defined as the “ without . ” this method estimates the value of the embedded derivative by looking at the difference in the values between the 2022 notes with the embedded derivative and the value of the 2022 notes without the embedded derivative . the lattice model requires the following inputs : ( i ) price of our common stock ; ( ii ) conversion rate ( as defined in the indenture ) ; ( iii ) conversion price ( as defined in the indenture ) ; ( iv ) maturity date ; ( v ) risk-free interest rate ; ( vi ) estimated stock volatility ; and ( vii ) estimated credit spread for the company . 68 the following table sets forth the inputs to the lattice model used to value the embedded derivative . replace_table_token_7_th the following table sets forth the value of the 2022 notes with and without the embedded

