we plan to submit data from the ongoing 48 femoral nerve block study to demonstrate efficacy and safety , as well as safety data from the intercostal nerve block study , for an snda , which is anticipated in the second quarter of 2014. following a pilot program , effective october 1 , 2013 , we appointed crosslink bioscience , llc , or crosslink , for a term of five years as the exclusive third-party distributor to promote and sell exparel for orthopedic and spine surgeries in the united states , with the exception of certain geographical areas and accounts . we continued the expansion of our manufacturing facility located in san diego , california , and we anticipate receiving fda approval for our newly installed manufacturing facility , referred to as suite c , in the second quarter of 2014. combined with our current facility , we expect this facility to significantly increase our manufacturing capacity and ability to meet the growing demand for exparel . research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , driven by , among other things , an increase in clinical development expenses relating to our nerve block trials , described above . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications , including nerve block and the pediatric trials required by the fda for exparel . financial operations overview revenue our net product sales are derived from exparel , which we commercially launched in april 2012 in the united states , and depocyt ( e ) , which we sell to commercial partners in the united states and europe . we ship exparel directly to the end user based on orders placed to wholesalers or directly to us . no product is held by wholesalers . we reported exparel product sales of $ 76.2 million for the year ended december 31 , 2013 , which is net of allowances for sales returns , prompt payment discounts , volume rebates and distribution service fees payable to wholesalers . depocyt ( e ) net product sales of $ 5.7 million for the year ended december 31 , 2013 were derived from a contractual price on shipments to our commercial partners . we also generate collaborative licensing and development revenue from our collaborations with third parties who seek to use our depofoam technology to develop extended release formulations of their products and product candidates . royalties are recognized as the product is sold by our commercial partners and are calculated as a percentage of the net selling price , which is typically net of discounts , returns and allowances incurred by our commercial partners , and net of the agreed upon supply price . cost of revenues our cost of revenues consists of the costs associated with our products sold and research and development services provided to our collaboration partners and include the following : manufacturing overhead and fixed costs associated with running two current good manufacturing practices , or cgmp , manufacturing facilities , including allocated rent , utilities , insurance , depreciation and salaries and related costs of personnel , including stock-based compensation , involved with our manufacturing activities ; cost of active pharmaceutical ingredients ; royalties due to third parties on our revenues ; packaging , testing and freight ; amortization of our intangible assets ; regulatory and pharmacovigilance costs ; and cost associated with excess manufacturing capacity and any non-routine shutdown of our facilities , which are charged to cost of revenue as incurred . our cost of revenues increased significantly following fda approval of exparel in october 2011 , when we shifted exparel manufacturing expenses on a prospective basis from research and development to cost of revenues . 49 research and development expenses our historical research and development expenses primarily consist of expenses incurred in developing , testing , manufacturing and seeking regulatory approval of exparel , including : expenses associated with regulatory submissions , clinical trials and manufacturing , including additional expenses to prepare for the commercial manufacture of exparel prior to fda approval ; payments to third-party contract research organizations , contract laboratories and independent contractors ; payments made to consultants who perform research and development on our behalf and assist us in the preparation of regulatory filings ; personnel related expenses , such as salaries , benefits , travel and other related expenses , including stock-based compensation ; payments made to third-party investigators who perform research and development on our behalf and clinical sites where such research and development is conducted ; and allocated rent and utilities , depreciation and amortization , and other related expenses . clinical trial expenses for our product candidates are a significant component of our current research and development expenses . product candidates in later stage clinical development generally have higher research and development expenses than those in earlier stages of development , primarily due to the increased size and duration of the clinical trials . we coordinate clinical trials through a number of contracted investigational sites and recognize the associated expense based on a number of factors , including actual and estimated subject enrollment and visits , direct pass-through costs and other clinical site fees . from the acquisition date through december 31 , 2013 , we incurred research and development expenses of $ 145.2 million , which has primarily been for exparel . we have also incurred expenses for our product candidates , including deponsaid and depomethotrexate . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications including nerve block and the pediatric trials required by the fda for exparel . story_separator_special_tag depocyt ( e ) product sales increased $ 2.2 million in the year ended december 31 , 2013 , as compared to 2012 , driven by the lifting of a selective recall recommended by the european medicines agency where depocyt ( e ) was not considered to be an `` essential medicinal product , `` which resulted in decreased sales in 2012. the decrease in collaborative licensing and development revenue of $ 17.4 million , or 95 % , in the year ended december 31 , 2013 , as compared to 2012 , was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements in 2012 , which included ( i ) $ 11.6 million for ekr therapeutics , inc , or ekr , ( ii ) $ 4.0 million for novo nordisk as , or novo , and ( iii ) $ 1.8 million for flynn pharmaceuticals limited , or flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 , as compared to 2011 . net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 , as compared to 2011 . in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012 . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by the selective recall of depocyt ( e ) in europe . the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 , as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo and ( iii ) $ 1.5 million for flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012 . royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 , as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . 54 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_8_th total cost of revenues increased $ 22.6 million , or 70 % in the year ended december 31 , 2013 as compared to 2012 . cost of goods sold increased primarily due to a higher volume of exparel sales . the improvement in cost of goods sold as a percentage of net product sales during the year ended december 31 , 2013 as compared to 2012 was driven by ( i ) increased utilization of our facility to manufacture exparel , ( ii ) a decrease in consulting costs , ( iii ) the significant increase in exparel sales to offset the substantial level of fixed cost infrastructure for operating two cgmp facilities and ( iv ) the resumption of production of depocyt ( e ) . this improvement was partially offset by the impact of producing suite c batches in preparation for fda approval submission , which can not be sold for commercial use and resulted in $ 3.7 million of expense during the year ended december 31 , 2013. there was no cost of collaborative licensing and development revenue for the year ended december 31 , 2013 due to the termination of services performed under a licensing agreement with novo in 2012. total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011 . cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken in response to the report issued by the european medicines agency and ( iv ) exparel production costs , which were previously expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the agreement with novo for which we received a notice of termination in june 2012. research and development expenses the following table provides information regarding research and development expenses during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_9_th research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , primarily due to the following : salaries and benefits increased by $ 3.6 million driven by a $ 3.2

liquidity and capital resources since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , and revenues . we are highly dependent on the commercial success of exparel , which we launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2013 , we had an accumulated deficit of $ 296.4 million , cash and cash equivalents , restricted cash and short-term investments of $ 73.8 million and a working capital deficit of $ 15.2 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 ( in thousands ) : replace_table_token_13_th operating activities for the years ended december 31 , 2013 , 2012 and 2011 , our net cash used in operating activities was $ 43.2 million , $ 70.1 million and $ 31.0 million , respectively .


 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 since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , and revenues . we are highly dependent on the commercial success of exparel , which we launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2013 , we had an accumulated deficit of $ 296.4 million , cash and cash equivalents , restricted cash and short-term investments of $ 73.8 million and a working capital deficit of $ 15.2 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 ( in thousands ) : replace_table_token_13_th operating activities for the years ended december 31 , 2013 , 2012 and 2011 , our net cash used in operating activities was $ 43.2 million , $ 70.1 million and $ 31.0 million , respectively .
```    
 Suspicious Activity Report : we plan to submit data from the ongoing 48 femoral nerve block study to demonstrate efficacy and safety , as well as safety data from the intercostal nerve block study , for an snda , which is anticipated in the second quarter of 2014. following a pilot program , effective october 1 , 2013 , we appointed crosslink bioscience , llc , or crosslink , for a term of five years as the exclusive third-party distributor to promote and sell exparel for orthopedic and spine surgeries in the united states , with the exception of certain geographical areas and accounts . we continued the expansion of our manufacturing facility located in san diego , california , and we anticipate receiving fda approval for our newly installed manufacturing facility , referred to as suite c , in the second quarter of 2014. combined with our current facility , we expect this facility to significantly increase our manufacturing capacity and ability to meet the growing demand for exparel . research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , driven by , among other things , an increase in clinical development expenses relating to our nerve block trials , described above . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications , including nerve block and the pediatric trials required by the fda for exparel . financial operations overview revenue our net product sales are derived from exparel , which we commercially launched in april 2012 in the united states , and depocyt ( e ) , which we sell to commercial partners in the united states and europe . we ship exparel directly to the end user based on orders placed to wholesalers or directly to us . no product is held by wholesalers . we reported exparel product sales of $ 76.2 million for the year ended december 31 , 2013 , which is net of allowances for sales returns , prompt payment discounts , volume rebates and distribution service fees payable to wholesalers . depocyt ( e ) net product sales of $ 5.7 million for the year ended december 31 , 2013 were derived from a contractual price on shipments to our commercial partners . we also generate collaborative licensing and development revenue from our collaborations with third parties who seek to use our depofoam technology to develop extended release formulations of their products and product candidates . royalties are recognized as the product is sold by our commercial partners and are calculated as a percentage of the net selling price , which is typically net of discounts , returns and allowances incurred by our commercial partners , and net of the agreed upon supply price . cost of revenues our cost of revenues consists of the costs associated with our products sold and research and development services provided to our collaboration partners and include the following : manufacturing overhead and fixed costs associated with running two current good manufacturing practices , or cgmp , manufacturing facilities , including allocated rent , utilities , insurance , depreciation and salaries and related costs of personnel , including stock-based compensation , involved with our manufacturing activities ; cost of active pharmaceutical ingredients ; royalties due to third parties on our revenues ; packaging , testing and freight ; amortization of our intangible assets ; regulatory and pharmacovigilance costs ; and cost associated with excess manufacturing capacity and any non-routine shutdown of our facilities , which are charged to cost of revenue as incurred . our cost of revenues increased significantly following fda approval of exparel in october 2011 , when we shifted exparel manufacturing expenses on a prospective basis from research and development to cost of revenues . 49 research and development expenses our historical research and development expenses primarily consist of expenses incurred in developing , testing , manufacturing and seeking regulatory approval of exparel , including : expenses associated with regulatory submissions , clinical trials and manufacturing , including additional expenses to prepare for the commercial manufacture of exparel prior to fda approval ; payments to third-party contract research organizations , contract laboratories and independent contractors ; payments made to consultants who perform research and development on our behalf and assist us in the preparation of regulatory filings ; personnel related expenses , such as salaries , benefits , travel and other related expenses , including stock-based compensation ; payments made to third-party investigators who perform research and development on our behalf and clinical sites where such research and development is conducted ; and allocated rent and utilities , depreciation and amortization , and other related expenses . clinical trial expenses for our product candidates are a significant component of our current research and development expenses . product candidates in later stage clinical development generally have higher research and development expenses than those in earlier stages of development , primarily due to the increased size and duration of the clinical trials . we coordinate clinical trials through a number of contracted investigational sites and recognize the associated expense based on a number of factors , including actual and estimated subject enrollment and visits , direct pass-through costs and other clinical site fees . from the acquisition date through december 31 , 2013 , we incurred research and development expenses of $ 145.2 million , which has primarily been for exparel . we have also incurred expenses for our product candidates , including deponsaid and depomethotrexate . we expect to incur additional research and development expenses as we accelerate the development of exparel in additional indications including nerve block and the pediatric trials required by the fda for exparel . story_separator_special_tag depocyt ( e ) product sales increased $ 2.2 million in the year ended december 31 , 2013 , as compared to 2012 , driven by the lifting of a selective recall recommended by the european medicines agency where depocyt ( e ) was not considered to be an `` essential medicinal product , `` which resulted in decreased sales in 2012. the decrease in collaborative licensing and development revenue of $ 17.4 million , or 95 % , in the year ended december 31 , 2013 , as compared to 2012 , was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements in 2012 , which included ( i ) $ 11.6 million for ekr therapeutics , inc , or ekr , ( ii ) $ 4.0 million for novo nordisk as , or novo , and ( iii ) $ 1.8 million for flynn pharmaceuticals limited , or flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 , as compared to 2011 . net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 , as compared to 2011 . in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012 . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by the selective recall of depocyt ( e ) in europe . the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 , as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo and ( iii ) $ 1.5 million for flynn . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012 . royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 , as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . 54 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_8_th total cost of revenues increased $ 22.6 million , or 70 % in the year ended december 31 , 2013 as compared to 2012 . cost of goods sold increased primarily due to a higher volume of exparel sales . the improvement in cost of goods sold as a percentage of net product sales during the year ended december 31 , 2013 as compared to 2012 was driven by ( i ) increased utilization of our facility to manufacture exparel , ( ii ) a decrease in consulting costs , ( iii ) the significant increase in exparel sales to offset the substantial level of fixed cost infrastructure for operating two cgmp facilities and ( iv ) the resumption of production of depocyt ( e ) . this improvement was partially offset by the impact of producing suite c batches in preparation for fda approval submission , which can not be sold for commercial use and resulted in $ 3.7 million of expense during the year ended december 31 , 2013. there was no cost of collaborative licensing and development revenue for the year ended december 31 , 2013 due to the termination of services performed under a licensing agreement with novo in 2012. total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011 . cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken in response to the report issued by the european medicines agency and ( iv ) exparel production costs , which were previously expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the agreement with novo for which we received a notice of termination in june 2012. research and development expenses the following table provides information regarding research and development expenses during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_9_th research and development expenses increased by $ 11.6 million , or 117 % , for the year ended december 31 , 2013 , as compared to 2012 , primarily due to the following : salaries and benefits increased by $ 3.6 million driven by a $ 3.2

