to support the commercial launch of prosigna , we added a team of experienced oncology sales , marketing , market access and medical affairs professionals , resulting in increased operating expenses . in february 2015 , we combined our two separate sales teams into a single organization selling our entire suite of products , targeted primarily toward major academic medical centers and biopharmaceutical companies . we expect prosigna sales growth to be dependent on the installation of more systems , inclusion of prosigna in important breast cancer treatment guidelines and reimbursement by third-party payors becoming more broadly available . we use third-party contract manufacturers to produce the two instruments comprising the ncounter analysis system . we manufacture consumables at our seattle , washington facility . this operating model is designed to be capital efficient and to scale efficiently as our product volumes grow . we focus a substantial portion of our resources on developing new technologies , products and solutions . we invested $ 21.4 million , $ 15.0 million and $ 11.6 million in 2014 , 2013 and 2012 , respectively , in research and development and intend to continue to make significant investments in research and development . in march 2014 , we entered into a collaboration agreement with celgene corporation pursuant to which we are working collaboratively with celgene to develop , seek regulatory approval for , and commercialize a companion diagnostic assay for use in screening patients with diffuse large b-cell lymphoma . we received an upfront payment of $ 5.8 million in june 2014 upon our delivery of certain information to celgene . we also achieved and were paid for certain development-related milestones totaling $ 6.0 million during 2014 and recognized the related revenue according to the proportional performance model . we are eligible to receive up to $ 11.0 million in additional success-based payments related to regulatory milestones . we will retain all commercial rights to the diagnostic test developed under this collaboration and , assuming success in the clinical trial process , and subject to regulatory approval , expect to generate revenues from the sale of the resulting in vitro diagnostic kits . our total revenue increased to $ 47.6 million in 2014 from $ 31.4 million in 2013 and $ 23.0 million in 2012 , which was driven primarily by the sale of additional ncounter analysis systems and consumables for use on our growing installed base of instruments . historically , we have generated a substantial majority of our revenue from sales to customers in north america ; however , recently , sales revenue has been growing more rapidly outside north america and we believe this trend may continue . we have never been profitable and had net losses of $ 50.0 million , $ 29.3 million , and $ 17.7 million in 2014 , 2013 and 2012 , respectively . as of december 31 , 2014 , our accumulated deficit was $ 176.9 million . key financial metrics we are organized as , and operate in , one reportable segment , which is the development , manufacture and commercialization of instruments , consumables and services for efficiently profiling the activity of hundreds of genes simultaneously from a single tissue sample . our chief operating decision maker is the chief executive officer , who manages our operations and evaluates our financial performance on a total company basis . our principal operations and decision-making functions are located at our corporate headquarters in the united states . until the fourth quarter of 2013 , we operated in two reportable segments , our life sciences business and our diagnostics business . in november 2013 , our ncounter dx analysis system with flex configuration was launched , enabling customers to perform both research and diagnostic testing on the same instrument . we have one sales force that now sells these systems to both research and clinical testing labs , and we launched our first product that can be used for both research and diagnostic testing , ncounter elements reagents . as a result of these fundamental changes to our business , we began operating the company as a single reportable segment during the fourth quarter of 2013 . -55- revenue we generate revenue from the sale of our products and related services . for a description of our revenue recognition policies , see the section of this report captioned critical accounting policies and significant estimatesrevenue recognition. product revenue our products consist of our ncounter analysis system and related consumables , including prosigna in vitro diagnostic kits . our ncounter analysis system typically consists of one ncounter digital analyzer and one ncounter prep station . the u.s. list price of one research use only ncounter analysis system flex is $ 265,000. outside the united states , depending on the country , the list price is generally higher . the u.s. list price of one ncounter dx analysis system is $ 285,000. systems are sold to distributors at a discount to list price . our customer base is primarily composed of academic institutions , government laboratories , biopharmaceutical companies and clinical laboratories that perform analyses or testing using our ncounter analysis system and purchase related consumables , potentially including prosigna kits . for our research customers , related consumables include ( 1 ) custom codesets , which we manufacture to the specific requirements of an individual researcher , ( 2 ) panels , which are standard pre-manufactured codesets , ( 3 ) ncounter elements reagents , and ( 4 ) master kits , which are ancillary reagents , cartridges , tips and reagent plates required to setup and process samples in our instruments . product revenue also includes payments for instrument installation . since 2010 , our average consumables revenue per installed system has exceeded $ 100,000 per year . for our clinical laboratory customers , related consumables include prosigna in vitro diagnostic kits and ncounter elements reagents . story_separator_special_tag the average 2014 sales price for direct sales was approximately 6 % greater than the average sales price to distributors in the same period . the increase in consumables revenue was primarily driven by growth in our installed base of instruments as the annualized pull-through remained over $ 100,000 per installed system in 2014 and 2013. the increase in service revenue was primarily related to an increase in the number of instruments covered by service contracts . cost of product and service revenue ; gross profit ; and gross margin replace_table_token_7_th the increase in cost of product and service revenue for 2014 was related to the increased volume of instruments , consumables , in vitro diagnostic kits and services sold . product and service gross margin was -61- approximately the same for both periods . although gross margin for instrument revenues in 2014 improved slightly by 1.7 percentage points over 2013 , this was largely offset by a 1.0 percentage point reduction in gross margin for consumables , in vitro diagnostic kits and service . research and development expense replace_table_token_8_th the increases in research and development expense in 2014 reflected a $ 4.1 million increase in personnel-related expenses primarily to support the advancement of our ncounter technology . in addition , there was a $ 1.5 million increase in engineering costs for development of the next generation of our ncounter system and an increase in costs to support the celgene collaboration agreement . partially offsetting the increase was a reduction of $ 0.4 million in clinical study costs . the remaining $ 1.2 million change was due to various other operating expense fluctuations that were individually immaterial . selling , general and administrative expense replace_table_token_9_th the increases in selling , general and administration expense in 2014 were primarily attributable to a $ 17.3 million increase in staffing and personnel-related costs to support sales and marketing and administration ; and increased external marketing and other consulting costs of $ 3.2 million . partially offsetting the increase was a reduction of $ 1.8 million in external legal costs . the remaining $ 3.0 million change was due to various other operating expense fluctuations that were individually immaterial . other income ( expense ) replace_table_token_10_th the increase in interest expense in 2014 was related to the costs incurred to pay off our former credit facility in april 2014 and an overall increase in borrowing . in 2014 , we incurred and recorded $ 1.4 million of interest expense related to the repayment of our former credit facility , including a loss on extinguishment of debt of $ 0.6 million . long-term debt outstanding increased to $ 30.9 million as of december 31 , 2014 as compared to $ 18.3 million as of december 31 , 2013. the average net debt balance was $ 22.5 million in 2014 compared to $ 16.7 million in 2013. the revaluation of the preferred stock warrant liability in 2013 resulted from a re-measurement of the fair value of preferred stock warrants using the black-scholes option pricing model , which was primarily impacted -62- by a decrease in the valuation of the underlying stock . upon closing of our initial public offering in july 2013 , all outstanding warrants to purchase preferred stock converted into warrants to purchase common stock . as a result , the preferred stock warrant liability was reclassified to stockholders ' equity . comparison of years ended december 31 , 2013 and 2012 revenue replace_table_token_11_th instrument revenue increased significantly for the year ended december 31 , 2013 due to an increase in the number of instruments sold , including from the launch of our ncounter dx analysis system . this increase was partially offset by a reduction in average selling price attributable to increased sales to distributors , which are priced lower than direct sales , and increased customer incentives . the increase in consumables revenue was driven by growth in our installed base of instruments . the increase in service revenue was primarily related to an increase in the number of instruments covered by service contracts . cost of product and service revenue ; gross profit ; and gross margin replace_table_token_12_th the increase in cost of revenue in 2013 was related to the increased volume of both instruments and consumables sold . gross margin improved due to cost efficiencies associated with increased consumables production volume and several large custom consumable orders with unusually low per unit manufacturing costs . these improvements were partially offset by a shift in product mix toward instruments . research and development expense replace_table_token_13_th the increase reflected a $ 2.9 million increase in personnel-related expenses to support the advancement of our ncounter technology and clinical development of prosigna and a $ 1.5 million increase in engineering costs for the development of the next generation of our ncounter system . decreases in prosigna clinical study costs of $ 1.0 million , after completion of the abcsg8 study in late 2012 , partially offset the increases . -63- selling , general and administrative expense replace_table_token_14_th the increase in 2013 was primarily attributable to $ 6.8 million of increased staffing and personnel-related costs to support sales and marketing and administration ; $ 2.8 million of increased external marketing and other consulting costs related to the commercial launch of prosigna ; $ 2.5 million of increased legal costs , $ 0.5 million of increased facility-related costs , and $ 1.1 million of increased corporate professional fees and other public company costs . other income ( expense ) replace_table_token_15_th the increase in interest expense in 2013 was driven by increased borrowing under our credit facility during 2012 and 2013 , from $ 1.5 million as of december 31 , 2011 to $ 13.0 million as of december 31 , 2012 and to $ 18.0 million as of december 31 , 2013. the increase in other income from the revaluation of the preferred stock warrant liability resulted from a re-measurement of the fair value of preferred

liquidity and capital resources as of december 31 , 2014 , we had cash , cash equivalents and short-term investments of $ 72.2 million , compared to $ 42.7 million as of december 31 , 2013. we believe our existing cash , cash equivalents and short-term investments will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months . however , we may need to raise additional capital to expand the commercialization of our products , fund our operations and further our research and development activities . our future funding requirements will depend on many factors , including : market acceptance of our products ; the cost and timing of establishing additional sales , marketing and distribution capabilities ; the cost of our research and development activities ; the cost and timing of regulatory clearances or approvals ; the effect of competing technological and market developments ; the nature and timing of any additional companion diagnostic development collaborations we may establish ; and the extent to which we acquire or invest in businesses , products and technologies , although we currently have no commitments or agreements relating to any of these types of transactions . if we require additional funds in the future , we may not be able to obtain such funds on acceptable terms , or at all . if we raise additional funds by issuing equity or equity-linked securities , our stockholders may experience dilution . debt financing , if available , may involve covenants restricting our operations or our ability to incur additional debt . any debt or additional equity financing that we raise may contain terms that are not favorable to us or our stockholders . if we raise additional funds through collaboration and licensing arrangements with third -64- parties , it may be necessary to relinquish some rights to our technologies or our products , or grant licenses on terms that are not favorable to us . if we are unable to raise adequate funds , we may have to liquidate some or all of our assets , or delay , reduce the scope of or eliminate some or all of our development programs .


 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 , 2014 , we had cash , cash equivalents and short-term investments of $ 72.2 million , compared to $ 42.7 million as of december 31 , 2013. we believe our existing cash , cash equivalents and short-term investments will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months . however , we may need to raise additional capital to expand the commercialization of our products , fund our operations and further our research and development activities . our future funding requirements will depend on many factors , including : market acceptance of our products ; the cost and timing of establishing additional sales , marketing and distribution capabilities ; the cost of our research and development activities ; the cost and timing of regulatory clearances or approvals ; the effect of competing technological and market developments ; the nature and timing of any additional companion diagnostic development collaborations we may establish ; and the extent to which we acquire or invest in businesses , products and technologies , although we currently have no commitments or agreements relating to any of these types of transactions . if we require additional funds in the future , we may not be able to obtain such funds on acceptable terms , or at all . if we raise additional funds by issuing equity or equity-linked securities , our stockholders may experience dilution . debt financing , if available , may involve covenants restricting our operations or our ability to incur additional debt . any debt or additional equity financing that we raise may contain terms that are not favorable to us or our stockholders . if we raise additional funds through collaboration and licensing arrangements with third -64- parties , it may be necessary to relinquish some rights to our technologies or our products , or grant licenses on terms that are not favorable to us . if we are unable to raise adequate funds , we may have to liquidate some or all of our assets , or delay , reduce the scope of or eliminate some or all of our development programs .
```    
 Suspicious Activity Report : to support the commercial launch of prosigna , we added a team of experienced oncology sales , marketing , market access and medical affairs professionals , resulting in increased operating expenses . in february 2015 , we combined our two separate sales teams into a single organization selling our entire suite of products , targeted primarily toward major academic medical centers and biopharmaceutical companies . we expect prosigna sales growth to be dependent on the installation of more systems , inclusion of prosigna in important breast cancer treatment guidelines and reimbursement by third-party payors becoming more broadly available . we use third-party contract manufacturers to produce the two instruments comprising the ncounter analysis system . we manufacture consumables at our seattle , washington facility . this operating model is designed to be capital efficient and to scale efficiently as our product volumes grow . we focus a substantial portion of our resources on developing new technologies , products and solutions . we invested $ 21.4 million , $ 15.0 million and $ 11.6 million in 2014 , 2013 and 2012 , respectively , in research and development and intend to continue to make significant investments in research and development . in march 2014 , we entered into a collaboration agreement with celgene corporation pursuant to which we are working collaboratively with celgene to develop , seek regulatory approval for , and commercialize a companion diagnostic assay for use in screening patients with diffuse large b-cell lymphoma . we received an upfront payment of $ 5.8 million in june 2014 upon our delivery of certain information to celgene . we also achieved and were paid for certain development-related milestones totaling $ 6.0 million during 2014 and recognized the related revenue according to the proportional performance model . we are eligible to receive up to $ 11.0 million in additional success-based payments related to regulatory milestones . we will retain all commercial rights to the diagnostic test developed under this collaboration and , assuming success in the clinical trial process , and subject to regulatory approval , expect to generate revenues from the sale of the resulting in vitro diagnostic kits . our total revenue increased to $ 47.6 million in 2014 from $ 31.4 million in 2013 and $ 23.0 million in 2012 , which was driven primarily by the sale of additional ncounter analysis systems and consumables for use on our growing installed base of instruments . historically , we have generated a substantial majority of our revenue from sales to customers in north america ; however , recently , sales revenue has been growing more rapidly outside north america and we believe this trend may continue . we have never been profitable and had net losses of $ 50.0 million , $ 29.3 million , and $ 17.7 million in 2014 , 2013 and 2012 , respectively . as of december 31 , 2014 , our accumulated deficit was $ 176.9 million . key financial metrics we are organized as , and operate in , one reportable segment , which is the development , manufacture and commercialization of instruments , consumables and services for efficiently profiling the activity of hundreds of genes simultaneously from a single tissue sample . our chief operating decision maker is the chief executive officer , who manages our operations and evaluates our financial performance on a total company basis . our principal operations and decision-making functions are located at our corporate headquarters in the united states . until the fourth quarter of 2013 , we operated in two reportable segments , our life sciences business and our diagnostics business . in november 2013 , our ncounter dx analysis system with flex configuration was launched , enabling customers to perform both research and diagnostic testing on the same instrument . we have one sales force that now sells these systems to both research and clinical testing labs , and we launched our first product that can be used for both research and diagnostic testing , ncounter elements reagents . as a result of these fundamental changes to our business , we began operating the company as a single reportable segment during the fourth quarter of 2013 . -55- revenue we generate revenue from the sale of our products and related services . for a description of our revenue recognition policies , see the section of this report captioned critical accounting policies and significant estimatesrevenue recognition. product revenue our products consist of our ncounter analysis system and related consumables , including prosigna in vitro diagnostic kits . our ncounter analysis system typically consists of one ncounter digital analyzer and one ncounter prep station . the u.s. list price of one research use only ncounter analysis system flex is $ 265,000. outside the united states , depending on the country , the list price is generally higher . the u.s. list price of one ncounter dx analysis system is $ 285,000. systems are sold to distributors at a discount to list price . our customer base is primarily composed of academic institutions , government laboratories , biopharmaceutical companies and clinical laboratories that perform analyses or testing using our ncounter analysis system and purchase related consumables , potentially including prosigna kits . for our research customers , related consumables include ( 1 ) custom codesets , which we manufacture to the specific requirements of an individual researcher , ( 2 ) panels , which are standard pre-manufactured codesets , ( 3 ) ncounter elements reagents , and ( 4 ) master kits , which are ancillary reagents , cartridges , tips and reagent plates required to setup and process samples in our instruments . product revenue also includes payments for instrument installation . since 2010 , our average consumables revenue per installed system has exceeded $ 100,000 per year . for our clinical laboratory customers , related consumables include prosigna in vitro diagnostic kits and ncounter elements reagents . story_separator_special_tag the average 2014 sales price for direct sales was approximately 6 % greater than the average sales price to distributors in the same period . the increase in consumables revenue was primarily driven by growth in our installed base of instruments as the annualized pull-through remained over $ 100,000 per installed system in 2014 and 2013. the increase in service revenue was primarily related to an increase in the number of instruments covered by service contracts . cost of product and service revenue ; gross profit ; and gross margin replace_table_token_7_th the increase in cost of product and service revenue for 2014 was related to the increased volume of instruments , consumables , in vitro diagnostic kits and services sold . product and service gross margin was -61- approximately the same for both periods . although gross margin for instrument revenues in 2014 improved slightly by 1.7 percentage points over 2013 , this was largely offset by a 1.0 percentage point reduction in gross margin for consumables , in vitro diagnostic kits and service . research and development expense replace_table_token_8_th the increases in research and development expense in 2014 reflected a $ 4.1 million increase in personnel-related expenses primarily to support the advancement of our ncounter technology . in addition , there was a $ 1.5 million increase in engineering costs for development of the next generation of our ncounter system and an increase in costs to support the celgene collaboration agreement . partially offsetting the increase was a reduction of $ 0.4 million in clinical study costs . the remaining $ 1.2 million change was due to various other operating expense fluctuations that were individually immaterial . selling , general and administrative expense replace_table_token_9_th the increases in selling , general and administration expense in 2014 were primarily attributable to a $ 17.3 million increase in staffing and personnel-related costs to support sales and marketing and administration ; and increased external marketing and other consulting costs of $ 3.2 million . partially offsetting the increase was a reduction of $ 1.8 million in external legal costs . the remaining $ 3.0 million change was due to various other operating expense fluctuations that were individually immaterial . other income ( expense ) replace_table_token_10_th the increase in interest expense in 2014 was related to the costs incurred to pay off our former credit facility in april 2014 and an overall increase in borrowing . in 2014 , we incurred and recorded $ 1.4 million of interest expense related to the repayment of our former credit facility , including a loss on extinguishment of debt of $ 0.6 million . long-term debt outstanding increased to $ 30.9 million as of december 31 , 2014 as compared to $ 18.3 million as of december 31 , 2013. the average net debt balance was $ 22.5 million in 2014 compared to $ 16.7 million in 2013. the revaluation of the preferred stock warrant liability in 2013 resulted from a re-measurement of the fair value of preferred stock warrants using the black-scholes option pricing model , which was primarily impacted -62- by a decrease in the valuation of the underlying stock . upon closing of our initial public offering in july 2013 , all outstanding warrants to purchase preferred stock converted into warrants to purchase common stock . as a result , the preferred stock warrant liability was reclassified to stockholders ' equity . comparison of years ended december 31 , 2013 and 2012 revenue replace_table_token_11_th instrument revenue increased significantly for the year ended december 31 , 2013 due to an increase in the number of instruments sold , including from the launch of our ncounter dx analysis system . this increase was partially offset by a reduction in average selling price attributable to increased sales to distributors , which are priced lower than direct sales , and increased customer incentives . the increase in consumables revenue was driven by growth in our installed base of instruments . the increase in service revenue was primarily related to an increase in the number of instruments covered by service contracts . cost of product and service revenue ; gross profit ; and gross margin replace_table_token_12_th the increase in cost of revenue in 2013 was related to the increased volume of both instruments and consumables sold . gross margin improved due to cost efficiencies associated with increased consumables production volume and several large custom consumable orders with unusually low per unit manufacturing costs . these improvements were partially offset by a shift in product mix toward instruments . research and development expense replace_table_token_13_th the increase reflected a $ 2.9 million increase in personnel-related expenses to support the advancement of our ncounter technology and clinical development of prosigna and a $ 1.5 million increase in engineering costs for the development of the next generation of our ncounter system . decreases in prosigna clinical study costs of $ 1.0 million , after completion of the abcsg8 study in late 2012 , partially offset the increases . -63- selling , general and administrative expense replace_table_token_14_th the increase in 2013 was primarily attributable to $ 6.8 million of increased staffing and personnel-related costs to support sales and marketing and administration ; $ 2.8 million of increased external marketing and other consulting costs related to the commercial launch of prosigna ; $ 2.5 million of increased legal costs , $ 0.5 million of increased facility-related costs , and $ 1.1 million of increased corporate professional fees and other public company costs . other income ( expense ) replace_table_token_15_th the increase in interest expense in 2013 was driven by increased borrowing under our credit facility during 2012 and 2013 , from $ 1.5 million as of december 31 , 2011 to $ 13.0 million as of december 31 , 2012 and to $ 18.0 million as of december 31 , 2013. the increase in other income from the revaluation of the preferred stock warrant liability resulted from a re-measurement of the fair value of preferred

