such statements include , but are not limited to , statements about future financial and operating results , plans , objectives , expectations and intentions , revenues , costs and expenses , interest rates , outcome of contingencies , business strategies , regulatory filings and requirements , performance and market acceptance of our products , the estimated potential size of markets , capital requirements , the terms of any capital financing agreements and other statements that are not historical facts . you can find many of these statements by looking for words like “ believes , ” “ expects , ” “ anticipates , ” “ estimates , ” “ may , ” “ should , ” “ will , ” “ could , ” “ plan , ” “ intend , ” or similar expressions in this annual report on form 10-k. we intend that such forward-looking statements be subject to the safe harbors created thereby . these forward-looking statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties . if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize , actual results may differ materially from current expectations and projections . factors that might cause such a difference include those discussed under “ risk factors , ” as well as those discussed elsewhere in the annual report on form 10-k. you are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date of this annual report on form 10-k or , in the case of documents referred to or incorporated by reference , the date of those documents . all subsequent written or oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section . we do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report on form 10-k or to reflect the occurrence of unanticipated events , except as may be required under applicable u.s. securities law . if we do update one or more forward-looking statements , no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements . recent developments reverse stock split on january 17 , 2014 , our board of directors approved an amendment to our certificate of incorporation to effect a reverse stock split by a ratio of 1-for-14 , with no reduction in the number of shares of common stock that were previously authorized in our certificate of incorporation . the reverse stock split was effective on january 29 , 2014. no fractional shares of our common stock were issued as a result of the reverse stock split . in the event the reverse stock split left a stockholder with a fraction of a share , the number of shares due to the stockholder was rounded up to the nearest whole share . unless otherwise noted , all share and per share data in this annual report on form 10-k give effect to the 1-for-14 reverse stock split of our common stock and are subject to the foregoing adjustments for fractional shares . public offering of units on march 25 , 2014 , we closed a registered public offering of 3,588,878 units for gross proceeds of $ 15,432,175. each unit consisted of one share of the company 's common stock and one warrant , each warrant exercisable for seven years to purchase one share of the company 's common stock at an exercise price of $ 4.75. net of placement agent fees of $ 1,211,734 and offering costs of $ 624,211 , we received net proceeds of $ 13,596,230. of the gross proceeds , $ 9,124,109 million was allocated to common stock and $ 6,308,066 million was allocated to warrants , based on relative fair values . 23 conversion of notes and interest to equity pursuant to note conversion agreements with wavi holding ag and taurus4757 gmbh ( the “ note holders ” ) , concurrently with the closing of our public offering of units , we converted approximately $ 14.3 million of indebtedness , including accrued interest , to the note holders into equity , issuing to the note holders an aggregate of 3,321,405 units having terms substantially similar to the public offering units . in connection with the note conversion , our $ 14.3 million indebtedness to the note holders under the terms of our previously disclosed facility agreements was extinguished , all remaining unamortized deferred finance costs were recorded to additional paid in capital , and the note holders agreed to release all security interests . of the total conversion amount , $ 8.4 million was allocated to common stock and $ 5.8 million was allocated to warrants , based on relative fair values . listing of common stock on nasdaq capital market on march 26 , 2014 , our common stock was listed on the nasdaq capital market under the symbol blfs . biologistex joint venture on september 29 , 2014 , we entered into an llc agreement with savsu to create biologistex , a 20-year joint venture for the purpose of acquiring , developing , maintaining , owning , operating , marketing and selling an integrated platform of a cloud-based information service and precision thermal shipping products based on savsu 's next generation evo smart shippers . the joint venture vehicle , biologistex ccm , llc , is structured as a delaware limited liability company . story_separator_special_tag the increased cash burn is primarily the result of increased headcount and spending related to the development and launch activities of our biologistex joint venture . comparison of annual results of operations percentage comparisons have been omitted within the following table where they are not considered meaningful . revenue and gross margin replace_table_token_2_th core product sales . our core products are sold through both direct and indirect channels to the customers in the biobanking , drug discovery , and regenerative medicine markets . sales to our core customers in 2015 increased compared to 2014 due to a 34 % increase in volume sold offset by a slight decrease in our average selling price per liter in 2015. the increase was primarily in sales to our regenerative medicine customers , which increased 45 % in 2015 compared to 2014. revenue from this market should increase over the next three to five years as some customers receive regulatory and marketing approvals for their clinical cell and tissue-based products . contract manufacturing services . in 2015 , we recorded $ 0.1 million in contract manufacturing revenue from one customer . in 2014 , we recorded revenue from sales to one contract manufacturing customer of $ 1.1 million . the contract with this customer was terminated in may 2014. in 2014 , we also recorded $ 0.2 million associated with one other contract manufacturing customer . cost of sales . cost of sales consists of raw materials , labor and overhead expenses . cost of sales in 2015 decreased compared to 2014 due primarily to the significant reduction in volume in lower margin contract manufacturing services revenue . gross margin . gross margin as a percentage of revenue increased to 59.1 % in 2015 compared to 49.0 % in 2014. gross margin as a percentage of revenue increased in 2015 , due to the change in the mix of revenue , with sales of our core products having a higher gross margin than the contract manufacturing revenue . revenue concentration . in 2015 and 2014 , we derived approximately 10 % and 11 % , respectively , of our revenue from our relationship with one distributor of our products . in 2014 , we also derived 18 % of our revenue from our relationship with one contract-manufacturing customer . revenue from customers located in foreign countries represented 21 % and 16 % of total revenue during the years ended december 31 , 2015 and 2014 , respectively . 27 operating expenses our operating expenses for the years ended december 31 , 2015 and 2014 were : replace_table_token_3_th research and development . research and development expenses consist primarily of salaries and other personnel-related expenses , consulting and other outside services , laboratory supplies , and other costs . we expense all research and development costs as incurred with the exception of the costs associated with the development of customized internal-use software systems , which are capitalized . research and development expenses for 2015 increased compared to 2014 due primarily to higher personnel costs , with the addition of personnel in the fourth quarter of 2014 and in 2015. in 2015 , we capitalized $ 1.7 million in costs associated with the development of our biologistex web application . sales and marketing . sales and marketing expenses consist primarily of salaries , trade association sponsorships , and other personnel-related expenses , consulting , trade shows and advertising . the increase in sales and marketing expenses in 2015 compared to 2014 was primarily due to higher personnel costs , with the addition of personnel in 2015 , and initial marketing costs related to our new biologistex service . general and administrative expenses . general and administrative expenses consist primarily of personnel-related expenses , non-cash stock-based compensation for administrative personnel and members of the board of directors , professional fees , such as accounting and legal , corporate insurance , and participation fees to savsu related to the biologistex joint venture . joint venture participation fees were approximately $ 0.7 million in 2015 and $ 0.3 million in 2014. the increase in other general and administrative costs in 2015 compared to 2014 was due to higher personnel costs with the addition of personnel in 2015 and higher corporate costs , including insurance , taxes , director fees and consulting fees . we do not expect further joint venture participation fees in 2016. other income ( expenses ) interest income . we earn interest on our short term investments . interest expense . in 2014 , interest expense was related to interest on two notes payable . the reduction in interest expense from 2014 to 2015 was due to the conversion of the notes and interest into stock as of march 25 , 2014. amortization of deferred financing costs . amortization of deferred financing costs represented the cost of warrants issued which were amortized over the life of the debt . in connection with the termination of the note facility agreements in 2014 , we recorded $ 101,852 , the remaining unamortized costs , as an adjustment to additional paid in capital . story_separator_special_tag style= `` text-indent : 0pt ; display : block ; margin-left : 0pt ; margin-right : 0pt `` > share-based compensation we account for share-based compensation by estimating the fair value of share-based compensation using the black-scholes option pricing model on the date of grant . we utilize assumptions related to stock price volatility , stock option term and forfeiture rates that are based upon both historical factors as well as management 's judgment . non-cash compensation expense is recognized on a straight-line basis over the applicable requisite service period of one to four years , based on the fair value of such share-based awards on the grant date . 29 income taxes we follow the asset and liability method of accounting for income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and

liquidity and capital resources based on our current expectations with respect to our revenue and expenses , including our expectations with respect to revenues from our new biologistex business which does not have a history of revenues , we expect that our current level of cash , cash equivalents and short term investments will be sufficient to meet our liquidity needs for our current operations through 2016. if our revenues , including biologistex revenues , do not grow as expected , and if we are not able to manage expenses sufficiently , we may be required to obtain additional equity or debt financing . we continue to monitor and evaluate opportunities to strengthen our balance sheet and competitive position over the long term . these actions may include acquisitions or other strategic transactions that we believe would generate significant advantages and substantially strengthen our business . the consideration we pay in such transactions may include , among other things , shares of our common stock , other equity or debt securities of our company or cash . we may elect to seek debt or equity financing in anticipation of , or in connection with , such transactions or to fund or invest in any operations acquired thereby . 28 our future uses of cash , which may vary from time to time based on market conditions and other factors , are centered on growing our core business , the build out , financial commitments , and scaling of the biologistex joint venture , development or acquisition of new products and technologies , and continuing to strengthen our balance sheet and competitive position . we may also seek equity or debt financing opportunistically for these purposes if we believe that market conditions are conducive to obtaining such financing . on december 31 , 2015 , we had $ 3.8


 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.
     ```liquidity and capital resources based on our current expectations with respect to our revenue and expenses , including our expectations with respect to revenues from our new biologistex business which does not have a history of revenues , we expect that our current level of cash , cash equivalents and short term investments will be sufficient to meet our liquidity needs for our current operations through 2016. if our revenues , including biologistex revenues , do not grow as expected , and if we are not able to manage expenses sufficiently , we may be required to obtain additional equity or debt financing . we continue to monitor and evaluate opportunities to strengthen our balance sheet and competitive position over the long term . these actions may include acquisitions or other strategic transactions that we believe would generate significant advantages and substantially strengthen our business . the consideration we pay in such transactions may include , among other things , shares of our common stock , other equity or debt securities of our company or cash . we may elect to seek debt or equity financing in anticipation of , or in connection with , such transactions or to fund or invest in any operations acquired thereby . 28 our future uses of cash , which may vary from time to time based on market conditions and other factors , are centered on growing our core business , the build out , financial commitments , and scaling of the biologistex joint venture , development or acquisition of new products and technologies , and continuing to strengthen our balance sheet and competitive position . we may also seek equity or debt financing opportunistically for these purposes if we believe that market conditions are conducive to obtaining such financing . on december 31 , 2015 , we had $ 3.8
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 Suspicious Activity Report : such statements include , but are not limited to , statements about future financial and operating results , plans , objectives , expectations and intentions , revenues , costs and expenses , interest rates , outcome of contingencies , business strategies , regulatory filings and requirements , performance and market acceptance of our products , the estimated potential size of markets , capital requirements , the terms of any capital financing agreements and other statements that are not historical facts . you can find many of these statements by looking for words like “ believes , ” “ expects , ” “ anticipates , ” “ estimates , ” “ may , ” “ should , ” “ will , ” “ could , ” “ plan , ” “ intend , ” or similar expressions in this annual report on form 10-k. we intend that such forward-looking statements be subject to the safe harbors created thereby . these forward-looking statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties . if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize , actual results may differ materially from current expectations and projections . factors that might cause such a difference include those discussed under “ risk factors , ” as well as those discussed elsewhere in the annual report on form 10-k. you are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date of this annual report on form 10-k or , in the case of documents referred to or incorporated by reference , the date of those documents . all subsequent written or oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section . we do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report on form 10-k or to reflect the occurrence of unanticipated events , except as may be required under applicable u.s. securities law . if we do update one or more forward-looking statements , no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements . recent developments reverse stock split on january 17 , 2014 , our board of directors approved an amendment to our certificate of incorporation to effect a reverse stock split by a ratio of 1-for-14 , with no reduction in the number of shares of common stock that were previously authorized in our certificate of incorporation . the reverse stock split was effective on january 29 , 2014. no fractional shares of our common stock were issued as a result of the reverse stock split . in the event the reverse stock split left a stockholder with a fraction of a share , the number of shares due to the stockholder was rounded up to the nearest whole share . unless otherwise noted , all share and per share data in this annual report on form 10-k give effect to the 1-for-14 reverse stock split of our common stock and are subject to the foregoing adjustments for fractional shares . public offering of units on march 25 , 2014 , we closed a registered public offering of 3,588,878 units for gross proceeds of $ 15,432,175. each unit consisted of one share of the company 's common stock and one warrant , each warrant exercisable for seven years to purchase one share of the company 's common stock at an exercise price of $ 4.75. net of placement agent fees of $ 1,211,734 and offering costs of $ 624,211 , we received net proceeds of $ 13,596,230. of the gross proceeds , $ 9,124,109 million was allocated to common stock and $ 6,308,066 million was allocated to warrants , based on relative fair values . 23 conversion of notes and interest to equity pursuant to note conversion agreements with wavi holding ag and taurus4757 gmbh ( the “ note holders ” ) , concurrently with the closing of our public offering of units , we converted approximately $ 14.3 million of indebtedness , including accrued interest , to the note holders into equity , issuing to the note holders an aggregate of 3,321,405 units having terms substantially similar to the public offering units . in connection with the note conversion , our $ 14.3 million indebtedness to the note holders under the terms of our previously disclosed facility agreements was extinguished , all remaining unamortized deferred finance costs were recorded to additional paid in capital , and the note holders agreed to release all security interests . of the total conversion amount , $ 8.4 million was allocated to common stock and $ 5.8 million was allocated to warrants , based on relative fair values . listing of common stock on nasdaq capital market on march 26 , 2014 , our common stock was listed on the nasdaq capital market under the symbol blfs . biologistex joint venture on september 29 , 2014 , we entered into an llc agreement with savsu to create biologistex , a 20-year joint venture for the purpose of acquiring , developing , maintaining , owning , operating , marketing and selling an integrated platform of a cloud-based information service and precision thermal shipping products based on savsu 's next generation evo smart shippers . the joint venture vehicle , biologistex ccm , llc , is structured as a delaware limited liability company . story_separator_special_tag the increased cash burn is primarily the result of increased headcount and spending related to the development and launch activities of our biologistex joint venture . comparison of annual results of operations percentage comparisons have been omitted within the following table where they are not considered meaningful . revenue and gross margin replace_table_token_2_th core product sales . our core products are sold through both direct and indirect channels to the customers in the biobanking , drug discovery , and regenerative medicine markets . sales to our core customers in 2015 increased compared to 2014 due to a 34 % increase in volume sold offset by a slight decrease in our average selling price per liter in 2015. the increase was primarily in sales to our regenerative medicine customers , which increased 45 % in 2015 compared to 2014. revenue from this market should increase over the next three to five years as some customers receive regulatory and marketing approvals for their clinical cell and tissue-based products . contract manufacturing services . in 2015 , we recorded $ 0.1 million in contract manufacturing revenue from one customer . in 2014 , we recorded revenue from sales to one contract manufacturing customer of $ 1.1 million . the contract with this customer was terminated in may 2014. in 2014 , we also recorded $ 0.2 million associated with one other contract manufacturing customer . cost of sales . cost of sales consists of raw materials , labor and overhead expenses . cost of sales in 2015 decreased compared to 2014 due primarily to the significant reduction in volume in lower margin contract manufacturing services revenue . gross margin . gross margin as a percentage of revenue increased to 59.1 % in 2015 compared to 49.0 % in 2014. gross margin as a percentage of revenue increased in 2015 , due to the change in the mix of revenue , with sales of our core products having a higher gross margin than the contract manufacturing revenue . revenue concentration . in 2015 and 2014 , we derived approximately 10 % and 11 % , respectively , of our revenue from our relationship with one distributor of our products . in 2014 , we also derived 18 % of our revenue from our relationship with one contract-manufacturing customer . revenue from customers located in foreign countries represented 21 % and 16 % of total revenue during the years ended december 31 , 2015 and 2014 , respectively . 27 operating expenses our operating expenses for the years ended december 31 , 2015 and 2014 were : replace_table_token_3_th research and development . research and development expenses consist primarily of salaries and other personnel-related expenses , consulting and other outside services , laboratory supplies , and other costs . we expense all research and development costs as incurred with the exception of the costs associated with the development of customized internal-use software systems , which are capitalized . research and development expenses for 2015 increased compared to 2014 due primarily to higher personnel costs , with the addition of personnel in the fourth quarter of 2014 and in 2015. in 2015 , we capitalized $ 1.7 million in costs associated with the development of our biologistex web application . sales and marketing . sales and marketing expenses consist primarily of salaries , trade association sponsorships , and other personnel-related expenses , consulting , trade shows and advertising . the increase in sales and marketing expenses in 2015 compared to 2014 was primarily due to higher personnel costs , with the addition of personnel in 2015 , and initial marketing costs related to our new biologistex service . general and administrative expenses . general and administrative expenses consist primarily of personnel-related expenses , non-cash stock-based compensation for administrative personnel and members of the board of directors , professional fees , such as accounting and legal , corporate insurance , and participation fees to savsu related to the biologistex joint venture . joint venture participation fees were approximately $ 0.7 million in 2015 and $ 0.3 million in 2014. the increase in other general and administrative costs in 2015 compared to 2014 was due to higher personnel costs with the addition of personnel in 2015 and higher corporate costs , including insurance , taxes , director fees and consulting fees . we do not expect further joint venture participation fees in 2016. other income ( expenses ) interest income . we earn interest on our short term investments . interest expense . in 2014 , interest expense was related to interest on two notes payable . the reduction in interest expense from 2014 to 2015 was due to the conversion of the notes and interest into stock as of march 25 , 2014. amortization of deferred financing costs . amortization of deferred financing costs represented the cost of warrants issued which were amortized over the life of the debt . in connection with the termination of the note facility agreements in 2014 , we recorded $ 101,852 , the remaining unamortized costs , as an adjustment to additional paid in capital . story_separator_special_tag style= `` text-indent : 0pt ; display : block ; margin-left : 0pt ; margin-right : 0pt `` > share-based compensation we account for share-based compensation by estimating the fair value of share-based compensation using the black-scholes option pricing model on the date of grant . we utilize assumptions related to stock price volatility , stock option term and forfeiture rates that are based upon both historical factors as well as management 's judgment . non-cash compensation expense is recognized on a straight-line basis over the applicable requisite service period of one to four years , based on the fair value of such share-based awards on the grant date . 29 income taxes we follow the asset and liability method of accounting for income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and

