restatement as discussed in the “ explanatory note regarding restatement ” and note 14 to the consolidated financial statements included this annual report on form 10-k , we are amending and restating our audited consolidated financial statements and related disclosures for the year ended december 31 , 2012. the following discussion and analysis of our financial condition and results of operations incorporates the restated amounts . for this reason , the data set forth in this section may not be comparable to discussion and data in our previously filed registration statements on form 10 or form s-1 for the fiscal year ended december 31 , 2012. overview ampliphi biosciences is a biotechnology company focused on the discovery , development and commercialization of novel phage therapeutics . our proprietary pipeline is based on the use of bacteriophages , a family of viruses that infect only bacteria . phages have powerful and highly selective mechanisms of action that permit them to target and kill specific bacterial pathogens , including the so-called multi-drug-resistant ( mdr ) or “ superbug ” strains . we are combining our proprietary approach and expertise in identifying , characterizing and developing naturally occurring bacteriophages with that of our collaboration partners in bacteriophage biology , drug engineering , development and manufacturing , to develop second-generation bacteriophage products . we believe that phages represent a promising means to treat bacterial infections , especially those that have developed resistance to current medicines . our lead programs consist of three product candidates : ampliphage-001 for the treatment of p. aeruginosa lung infections in cystic fibrosis ( cf ) patients ; ampliphage-002 , for the treatment of methicillin-resistant s. aureus ( mrsa ) infections ; and ampliphage-004 for the treatment of c. difficile infections . we have incurred net losses since our inception . our operations to date have been limited to research and development and raising capital . since november 2010 , we have raised approximately $ 5.6 million through the sale and issuance of convertible notes and warrants to purchase common stock . in june and july of 2013 , we completed a private placement of shares of our series b convertible preferred stock and warrants to purchase common stock , which raised approximately $ 7.0 million in addition to converting approximately $ 6.3 million in outstanding convertible notes . in december 2013 , we completed a private placement of shares of our common stock , which raised approximately $ 18 million , prior to commissions . to date , we have not generated any revenue and have primarily financed our operations through the sale and issuance of convertible notes and the private placement of our equity securities . as of december 31 , 2013 , we had a deficit accumulated of $ 387.2 million . we recorded annual net losses of $ 58.4 million in 2013 and $ 1.1 million in 2012. we anticipate that a substantial portion of our capital resources and efforts in the foreseeable future will be focused on completing the development and obtaining regulatory approval of our product candidates . 50 we expect our research and development expenses to increase as we pursue regulatory approval for our product candidates . we also expect to incur additional expenses associated with operating as a public company . as a result , we expect to continue to incur significant and increasing operating losses at least for the next several years . we do not expect to generate product revenue unless and until we successfully complete development and obtain marketing approval for at least one of our product candidates . we currently expect to use our existing cash and cash equivalents for the continued research and development of our product candidates and for working capital and other general corporate purposes . we may also use a portion for the potential acquisition of , or investment in , product candidates , technologies , formulations or companies that complement our business , although we have no current understandings , commitments or agreements to do so . we expect that these funds will not be sufficient to enable us to complete all necessary development of any potential product candidates . accordingly , we will be required to obtain further funding through other public offerings , debt financing , collaboration and licensing arrangements or other sources . adequate additional funding may not be available to us on acceptable terms , or at all . if we are unable to raise capital when needed or on attractive terms , we would be forced to delay , reduce or eliminate our research and development programs . financial operations overview revenue to date , we have not generated any revenue from the sale of our product candidates and do not expect to generate any revenue from the sale of our product candidates in the near term . in the last two years , we recognized $ 1.0 million in revenue related to license agreements and grants from governments and academic institutions . these revenues were used in our new focus , the development of phages . research and development expenses research and development costs consist of the costs associated with our research and discovery activities , conducting clinical trials , manufacturing development efforts and activities related to regulatory filings . our research and development expenses consist of salaries , non-cash stock-based compensation , costs of outside collaborators and outside services , royalty and license costs and facility , occupancy and utility expenses . we expense research and development costs as incurred . we expect annual research and development expenses will increase significantly in the future as we progress with development . story_separator_special_tag for the year ended december 31 , 2013 , cash used in operations was attributable to the net loss for the year after adding back non-cash charges for loss on derivative liabilities , shares issued for technology access fee , amortization of loan discount , fair market value of warrants issued as investment fees , stock-based compensation expense , and depreciation expenses . for the year ended december 31 , 2012 , cash used in operations was attributable to the net loss for the year after adding back non-cash charges for stock-based compensation expense , depreciation expenses and loss on disposal of equipment , offset by a decrease in accrued liabilities and an increase in receivables . net cash used in investing activities for the year ended december 31 , 2013 was $ 0.1 million due to purchases of equipment . net cash provided by investing activities for the year ended december 31 , 2012 was $ 3.1 million due to the sale of assets from discontinued operations slightly offset by purchases of property and equipment . net cash provided by financing activities was $ 27.0 million for the year ended december 31 , 2013 , due to the december 2013 private placement , the series b financing and convertible loan notes . net cash provided by financing activities was $ 1.0 million for the year ended december 31 , 2012 , due to proceeds from convertible notes . we expect 2014 cash requirements to be in the range of $ 15.0 million to $ 17.0 million . we believe that our cash as of december 31 , 2013 , will be sufficient to fund our projected operating requirements into the first quarter of 2015 . 55 we expect to need to raise additional capital or incur indebtedness to continue to fund our future operations . we may seek to raise capital through a variety of sources , including : · the public equity market ; · private equity financing ; · collaborative arrangements ; · licensing arrangements ; and or · public or private debt . our ability to raise additional funds will depend on our clinical and regulatory events , our ability to identify promising in-licensing opportunities and factors related to financial , economic and market conditions , many of which are beyond our control . we can not be certain that sufficient funds will be available to us when required or on satisfactory terms . if adequate funds are not available , we may be required to significantly reduce or refocus our operations or to obtain funds through arrangements that may require us to relinquish rights to certain of our products , technologies or potential markets , any of which could delay or require that we curtail our development programs or otherwise have a material adverse effect on our business , financial condition and results of operations . to the extent that additional capital is raised through the sale of equity or convertible debt securities , the issuance of such securities would result in ownership dilution to our existing stockholders . if we are unable to secure additional financing on a timely basis or on terms favorable to us , we may be required to cease or reduce certain research and development projects , to sell some or all of our technology or assets or to merge all or a portion of our business with another entity . insufficient funds may require us to delay , scale back or eliminate some or all of our activities , and if we are unable to obtain additional funding , there is uncertainty regarding our continued existence . contractual obligations and commitments in february 2011 , the company entered into an agreement with virginia biotechnology research partnership authority for richmond , virginia laboratory space . this agreement has a contractual expiration date of february 29 , 2012 at which time it converted to a rolling three-month lease . at december 31 , 2013 , the company 's minimum payment commitment for the richmond , virginia laboratory space was $ 4,800. in december 2011 , the company entered into an agreement with nevis limited and charter limited for laboratory space in bedfordshire , united kingdom . this agreement has a minimum period of 3 years and a contractual expiration date of december 8 , 2016. at december 31 , 2013 , the company 's minimum payment commitment for the bedfordshire laboratory space was $ 127,000. in february 2013 , we entered into an agreement with office suites plus ( now regus management group , llc ) for office space in glen allen , virginia . the agreement has a minimum period of one year ending february 28 , 2014 , at which time it was extended through june 2014 , with a monthly cost of $ 2,555. at december 31 , 2013 , our minimum payment commitment for the glen allen space was $ 5,110. in september 2013 , we entered into an agreement with pbc carlsbad , llc for office space in carlsbad , california . the agreement has a minimum period of six months ending february 28 , 2014 , at which time it was extended through august 2014 , with a monthly cost of $ 1,033. at december 31 , 2013 , our minimum payment commitment for the carlsbad office space was $ 2,066 . 56 off-balance sheet arrangements as of december 31 , 2013 , we did not have any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . in addition , we do not engage in trading activities involving non-exchange traded contracts . therefore , we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in these relationships . story_separator_special_tag

net cash used in operating activities for the year ended december 31 , 2013 , net cash flow used in operating activities was $ 7.4 million , compared to net cash flow used in operating activities of $ 4.3 million for the year ended december 31 , 2012. net cash flow used in operating activities for the year ended december 31 , 2013 consisted primarily of a net loss of $ 58.4 million , increased by $ 40.6 million for the expense recorded as the change in fair value of warrants , $ 3.0 million for the intrexon technology access fee paid by stock , $ 2.6 million for amortization of loan discount , $ 1.4 million for stock option expense , $ 0.6 million for the receipt of tax refund , and $ 0.2 million for accrued interest on convertible loans . net cash flow used in operating activities for the year ended december 31 , 2012 , consisted primarily of net loss of $ 4.2 million , increased by $ 0.1 million for the receipt of an amt license fee receivable and $ 0.3 million for accrued interest on convertible notes , and decreased by $ 0.4 million for accounts payable and accrued liabilities . net cash from financing activities for the year ended december 31 , 2013 , net cash flow provided by financing activities was $ 27.0 million , compared to net cash flow provided by financing activities of $ 1.0 million for the year ended december 31 , 2012. net cash flow provided by financing activities for the year ended december 31 , 2013 consisted of $ 18.0 million received through december 2013 common stock placement , $ 7.0 million received through the series b convertible preferred stock issuance , $ 2.0 million received through the issuance of convertible . net cash flow provided by financing activities for the year ended december 31 , 2012 , consisted of $ 1.0 million received through the issuance of convertible notes .


 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.
     ```net cash used in operating activities for the year ended december 31 , 2013 , net cash flow used in operating activities was $ 7.4 million , compared to net cash flow used in operating activities of $ 4.3 million for the year ended december 31 , 2012. net cash flow used in operating activities for the year ended december 31 , 2013 consisted primarily of a net loss of $ 58.4 million , increased by $ 40.6 million for the expense recorded as the change in fair value of warrants , $ 3.0 million for the intrexon technology access fee paid by stock , $ 2.6 million for amortization of loan discount , $ 1.4 million for stock option expense , $ 0.6 million for the receipt of tax refund , and $ 0.2 million for accrued interest on convertible loans . net cash flow used in operating activities for the year ended december 31 , 2012 , consisted primarily of net loss of $ 4.2 million , increased by $ 0.1 million for the receipt of an amt license fee receivable and $ 0.3 million for accrued interest on convertible notes , and decreased by $ 0.4 million for accounts payable and accrued liabilities . net cash from financing activities for the year ended december 31 , 2013 , net cash flow provided by financing activities was $ 27.0 million , compared to net cash flow provided by financing activities of $ 1.0 million for the year ended december 31 , 2012. net cash flow provided by financing activities for the year ended december 31 , 2013 consisted of $ 18.0 million received through december 2013 common stock placement , $ 7.0 million received through the series b convertible preferred stock issuance , $ 2.0 million received through the issuance of convertible . net cash flow provided by financing activities for the year ended december 31 , 2012 , consisted of $ 1.0 million received through the issuance of convertible notes .
```    
 Suspicious Activity Report : restatement as discussed in the “ explanatory note regarding restatement ” and note 14 to the consolidated financial statements included this annual report on form 10-k , we are amending and restating our audited consolidated financial statements and related disclosures for the year ended december 31 , 2012. the following discussion and analysis of our financial condition and results of operations incorporates the restated amounts . for this reason , the data set forth in this section may not be comparable to discussion and data in our previously filed registration statements on form 10 or form s-1 for the fiscal year ended december 31 , 2012. overview ampliphi biosciences is a biotechnology company focused on the discovery , development and commercialization of novel phage therapeutics . our proprietary pipeline is based on the use of bacteriophages , a family of viruses that infect only bacteria . phages have powerful and highly selective mechanisms of action that permit them to target and kill specific bacterial pathogens , including the so-called multi-drug-resistant ( mdr ) or “ superbug ” strains . we are combining our proprietary approach and expertise in identifying , characterizing and developing naturally occurring bacteriophages with that of our collaboration partners in bacteriophage biology , drug engineering , development and manufacturing , to develop second-generation bacteriophage products . we believe that phages represent a promising means to treat bacterial infections , especially those that have developed resistance to current medicines . our lead programs consist of three product candidates : ampliphage-001 for the treatment of p. aeruginosa lung infections in cystic fibrosis ( cf ) patients ; ampliphage-002 , for the treatment of methicillin-resistant s. aureus ( mrsa ) infections ; and ampliphage-004 for the treatment of c. difficile infections . we have incurred net losses since our inception . our operations to date have been limited to research and development and raising capital . since november 2010 , we have raised approximately $ 5.6 million through the sale and issuance of convertible notes and warrants to purchase common stock . in june and july of 2013 , we completed a private placement of shares of our series b convertible preferred stock and warrants to purchase common stock , which raised approximately $ 7.0 million in addition to converting approximately $ 6.3 million in outstanding convertible notes . in december 2013 , we completed a private placement of shares of our common stock , which raised approximately $ 18 million , prior to commissions . to date , we have not generated any revenue and have primarily financed our operations through the sale and issuance of convertible notes and the private placement of our equity securities . as of december 31 , 2013 , we had a deficit accumulated of $ 387.2 million . we recorded annual net losses of $ 58.4 million in 2013 and $ 1.1 million in 2012. we anticipate that a substantial portion of our capital resources and efforts in the foreseeable future will be focused on completing the development and obtaining regulatory approval of our product candidates . 50 we expect our research and development expenses to increase as we pursue regulatory approval for our product candidates . we also expect to incur additional expenses associated with operating as a public company . as a result , we expect to continue to incur significant and increasing operating losses at least for the next several years . we do not expect to generate product revenue unless and until we successfully complete development and obtain marketing approval for at least one of our product candidates . we currently expect to use our existing cash and cash equivalents for the continued research and development of our product candidates and for working capital and other general corporate purposes . we may also use a portion for the potential acquisition of , or investment in , product candidates , technologies , formulations or companies that complement our business , although we have no current understandings , commitments or agreements to do so . we expect that these funds will not be sufficient to enable us to complete all necessary development of any potential product candidates . accordingly , we will be required to obtain further funding through other public offerings , debt financing , collaboration and licensing arrangements or other sources . adequate additional funding may not be available to us on acceptable terms , or at all . if we are unable to raise capital when needed or on attractive terms , we would be forced to delay , reduce or eliminate our research and development programs . financial operations overview revenue to date , we have not generated any revenue from the sale of our product candidates and do not expect to generate any revenue from the sale of our product candidates in the near term . in the last two years , we recognized $ 1.0 million in revenue related to license agreements and grants from governments and academic institutions . these revenues were used in our new focus , the development of phages . research and development expenses research and development costs consist of the costs associated with our research and discovery activities , conducting clinical trials , manufacturing development efforts and activities related to regulatory filings . our research and development expenses consist of salaries , non-cash stock-based compensation , costs of outside collaborators and outside services , royalty and license costs and facility , occupancy and utility expenses . we expense research and development costs as incurred . we expect annual research and development expenses will increase significantly in the future as we progress with development . story_separator_special_tag for the year ended december 31 , 2013 , cash used in operations was attributable to the net loss for the year after adding back non-cash charges for loss on derivative liabilities , shares issued for technology access fee , amortization of loan discount , fair market value of warrants issued as investment fees , stock-based compensation expense , and depreciation expenses . for the year ended december 31 , 2012 , cash used in operations was attributable to the net loss for the year after adding back non-cash charges for stock-based compensation expense , depreciation expenses and loss on disposal of equipment , offset by a decrease in accrued liabilities and an increase in receivables . net cash used in investing activities for the year ended december 31 , 2013 was $ 0.1 million due to purchases of equipment . net cash provided by investing activities for the year ended december 31 , 2012 was $ 3.1 million due to the sale of assets from discontinued operations slightly offset by purchases of property and equipment . net cash provided by financing activities was $ 27.0 million for the year ended december 31 , 2013 , due to the december 2013 private placement , the series b financing and convertible loan notes . net cash provided by financing activities was $ 1.0 million for the year ended december 31 , 2012 , due to proceeds from convertible notes . we expect 2014 cash requirements to be in the range of $ 15.0 million to $ 17.0 million . we believe that our cash as of december 31 , 2013 , will be sufficient to fund our projected operating requirements into the first quarter of 2015 . 55 we expect to need to raise additional capital or incur indebtedness to continue to fund our future operations . we may seek to raise capital through a variety of sources , including : · the public equity market ; · private equity financing ; · collaborative arrangements ; · licensing arrangements ; and or · public or private debt . our ability to raise additional funds will depend on our clinical and regulatory events , our ability to identify promising in-licensing opportunities and factors related to financial , economic and market conditions , many of which are beyond our control . we can not be certain that sufficient funds will be available to us when required or on satisfactory terms . if adequate funds are not available , we may be required to significantly reduce or refocus our operations or to obtain funds through arrangements that may require us to relinquish rights to certain of our products , technologies or potential markets , any of which could delay or require that we curtail our development programs or otherwise have a material adverse effect on our business , financial condition and results of operations . to the extent that additional capital is raised through the sale of equity or convertible debt securities , the issuance of such securities would result in ownership dilution to our existing stockholders . if we are unable to secure additional financing on a timely basis or on terms favorable to us , we may be required to cease or reduce certain research and development projects , to sell some or all of our technology or assets or to merge all or a portion of our business with another entity . insufficient funds may require us to delay , scale back or eliminate some or all of our activities , and if we are unable to obtain additional funding , there is uncertainty regarding our continued existence . contractual obligations and commitments in february 2011 , the company entered into an agreement with virginia biotechnology research partnership authority for richmond , virginia laboratory space . this agreement has a contractual expiration date of february 29 , 2012 at which time it converted to a rolling three-month lease . at december 31 , 2013 , the company 's minimum payment commitment for the richmond , virginia laboratory space was $ 4,800. in december 2011 , the company entered into an agreement with nevis limited and charter limited for laboratory space in bedfordshire , united kingdom . this agreement has a minimum period of 3 years and a contractual expiration date of december 8 , 2016. at december 31 , 2013 , the company 's minimum payment commitment for the bedfordshire laboratory space was $ 127,000. in february 2013 , we entered into an agreement with office suites plus ( now regus management group , llc ) for office space in glen allen , virginia . the agreement has a minimum period of one year ending february 28 , 2014 , at which time it was extended through june 2014 , with a monthly cost of $ 2,555. at december 31 , 2013 , our minimum payment commitment for the glen allen space was $ 5,110. in september 2013 , we entered into an agreement with pbc carlsbad , llc for office space in carlsbad , california . the agreement has a minimum period of six months ending february 28 , 2014 , at which time it was extended through august 2014 , with a monthly cost of $ 1,033. at december 31 , 2013 , our minimum payment commitment for the carlsbad office space was $ 2,066 . 56 off-balance sheet arrangements as of december 31 , 2013 , we did not have any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . in addition , we do not engage in trading activities involving non-exchange traded contracts . therefore , we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in these relationships . story_separator_special_tag

