the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) . story_separator_special_tag the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) .

liquidity and capital resources as of december 31 , 2013 , we had a working capital deficit of $ 5,402,299 as compared to december 31 , 2012 of $ 724,122 , an increase of $ 4,678,177. the increase in working capital deficit for the year ended december 31 , 2013 , is primarily attributed to an increase in the company 's liabilities related to accrued payables and expenses of roughly $ 480,655 , accrued payables and expenses to related parties of $ 123,493 , liability to be settled in stock of $ 103,333 , derivative liabilities of $ 3,250,672 , and additional convertible notes of $ 697,688. net cash used in operating activities for the years ended december 31 , 2013 and 2012 , was $ ( 331,349 ) and $ ( 113,526 ) , respectively . the net loss for the years ended december 31 , 2013 and 2012 was $ ( 2,458,632 ) and $ ( 627,349 ) , respectively . net cash provided by investing activities for the year ended december 31 , 2013 was $ 14,806 , as compared to the year ended december 31 , 2012 was $ 42,500. the company received cash of $ 1,131 from merger of stl marketing group , inc. and versant corporation and $ 13,675 for a loan to related party .


 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 as of december 31 , 2013 , we had a working capital deficit of $ 5,402,299 as compared to december 31 , 2012 of $ 724,122 , an increase of $ 4,678,177. the increase in working capital deficit for the year ended december 31 , 2013 , is primarily attributed to an increase in the company 's liabilities related to accrued payables and expenses of roughly $ 480,655 , accrued payables and expenses to related parties of $ 123,493 , liability to be settled in stock of $ 103,333 , derivative liabilities of $ 3,250,672 , and additional convertible notes of $ 697,688. net cash used in operating activities for the years ended december 31 , 2013 and 2012 , was $ ( 331,349 ) and $ ( 113,526 ) , respectively . the net loss for the years ended december 31 , 2013 and 2012 was $ ( 2,458,632 ) and $ ( 627,349 ) , respectively . net cash provided by investing activities for the year ended december 31 , 2013 was $ 14,806 , as compared to the year ended december 31 , 2012 was $ 42,500. the company received cash of $ 1,131 from merger of stl marketing group , inc. and versant corporation and $ 13,675 for a loan to related party .
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 Suspicious Activity Report : the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) . story_separator_special_tag the change in net loss between the periods ended december 31 , 2013 and 2012 was due to the merger between stl marketing group inc. and versant corporation . this attributes to an increase in interest expense and amortization of debt discount of $ 440,525 , financing fees related to derivative liabilities of $ 793,097 , as well as an increase in change in derivative liabilities of $ 493,946. operating expenses increased by 29 % during the period ended december 31 , 2013 , as compared to the year ended december 31 , 2012. the $ 162,440 increase in operating expenses is primarily attributable to the increase in professional fees of $ 167,790 , due to items related to the company 's registration with the sec and a small decrease in compensation as the company cancelled its 401k benefits . the company is still a development stage company and therefore has no revenues to date . story_separator_special_tag united states ( “ gaap ” ) . gaap requires the use of estimates ; assumptions , judgments and subjective interpretations of accounting principles that have an impact on the assets , liabilities , revenues and expense amounts reported . these estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies , risk and financial condition . we believe our use of estimates and underlying accounting assumptions adhere to gaap and are consistently and conservatively applied . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results may differ materially from these estimates under different assumptions or conditions . we continue to monitor significant estimates made during the preparation of our financial statements . our significant accounting policies are summarized in note 2 of our financial statements . while all these significant accounting policies impact our financial condition and results of operations , we view certain of these policies as critical . policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates . actual results may differ from those estimates . our management believes that given current facts and circumstances , it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations , financial position or liquidity for the periods presented in this report . we believe the following critical accounting policies and procedures , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : use of estimates - the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . such estimates and assumptions impact , among others , the following : allowance for bad debt , inventory obsolescence , the fair value of share-based payments . 19 making estimates requires management to exercise significant judgment . it is at least reasonably possible that the estimate of the effect of a condition , situation or set of circumstances that existed at the date of the financial statements , which management considered in formulating its estimate could change in the near term due to one or more future confirming events . accordingly , the actual results could differ significantly from our estimates . stock-based compensation - the company accounts for stock-based compensation in accordance with asc topic 718 , “ accounting for stock-based compensation ” established financial accounting and reporting standards for stock-based employee compensation . it defines a fair value based method of accounting for an employee stock option or similar equity instrument . the company accounts for compensation cost for stock option plans in accordance with asc 718. the company accounts for share based payments to non-employees in accordance with asc 505-50 “ accounting for equity instruments issued to non-employees for acquiring , or in conjunction with selling , goods or services ” . the company recognizes all forms of share-based payments , including stock option grants , warrants and restricted stock grants , at their fair value on the grant date , which are based on the estimated number of awards that are ultimately expected to vest . share based payments , excluding restricted stock , are valued using a black-scholes option pricing model . share based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment , whichever is more readily determinable . the grants are amortized on a straight-line basis over the requisite service periods , which is generally the vesting period . if an award is granted , but vesting does not occur , any previously recognized compensation cost is reversed in the period related to the termination of service . stock based compensation expenses are included in cost of goods sold or selling , general and administrative expenses , depending on the nature of the services provided , in the statement of operations . when computing fair value of share based payments , the company has considered the following variables : ● the risk-free interest rate assumption is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . ● the company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on its common stock in the foreseeable future . ● the expected warrant term is the contractual term of the warrant . off balance sheet arrangements : we do not have any off-balance sheet arrangements , financings , or other relationships with unconsolidated entities or other persons , also known as “ special purpose entities ” ( spes ) .

