and expand our presence in emerging markets ; and further refine our manufacturing efficiencies and productivity improvements to improve profit , with continued focus on profitable products and markets and our effort to create a core competency in new product development . product development activities are inherently uncertain , and there can be no assurance that we will be able to obtain approval for any of our products , or if we obtain approval , that we will successfully commercialize any of our products . in addition , we may terminate our development efforts with respect to one or more of our products under development at any time , including before or during clinical trials . as a business in a highly regulated , competitive and seasonal industry , we face many risks and challenges . you should refer to the discussion in item 1a , risk factors in part i of this annual report for further discussion of risks related to our business . outlook we expect revenue growth over the next 12 months and a related positive impact on gross margin and earnings . this growth is expected to be driven primarily by increased sales of our sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our molecular platforms . we will continue our focus on prudently managing our business and delivering solid financial results , while at the same time striving to continue to introduce new products to the market and maintaining our emphasis on research and development investments for longer term growth . finally , we will continue to evaluate opportunities to acquire new product lines , technologies and companies . 27 results of operations comparison of years ended december 31 , 2013 and 2012 total revenues the following table compares total revenues for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2013 , total revenue increased 13 % to $ 175.4 million . the increase in total revenues was primarily due to an increase in influenza product sales . the revenue from our royalty , license fees and grant revenue category for all periods primarily relate to royalty payments earned on our patented technologies utilized by third parties and revenue from grants for research and development activities . cost of sales cost of sales decreased to 38 % of total revenues , for the year ended december 31 , 2013 compared to 39 % of total revenues , for the year ended december 31 , 2012. the absolute dollar increase in cost of sales of $ 5.7 million for the year ended december 31 , 2013 from the year ended december 31 , 2012 is primarily related to the variable nature of direct costs ( material and labor ) associated with the 13 % increase in total revenues in 2013. the decrease in cost of sales as a percentage of total revenue was primarily due to a more favorable product mix in 2013 related to our higher margin influenza products , partially offset by an increase in depreciation of leased sofia instruments in 2013. operating expenses the following table compares operating expenses for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2013 increased from $ 27.7 million to $ 34.2 million due to planned increases in our development of molecular technologies , primarily on our savanna program . in addition , there were increases related to the acquisition of both biohelix and andiatec totaling $ 1.2 million . also contributing to the increase was a reduction in reimbursement for research and development costs of $ 1.4 million and $ 3.0 million for the years ended december 31 , 2013 and 2012 , respectively , associated with a third-party collaboration agreement as more fully described in note 1 in the notes to the consolidated financial statements included in this annual report . research and development expenses include direct external costs such as fees paid to consultants , and internal direct and indirect costs such as compensation and other expenses for research and development personnel , supplies and materials , clinical trials and studies , facility costs and depreciation . due to the risks inherent in the product development process and given the early-stage of development of certain projects , we are unable to estimate with meaningful certainty the costs we will incur in the continued development of our product candidates for commercialization . we expect our research and development costs to be substantial as we move other product candidates into preclinical and clinical trials and advance our existing product candidates into later stages of development . 28 sales and marketing expense sales and marketing expense for the year ended december 31 , 2013 increased from $ 30.3 million to $ 33.8 million primarily due to additional investments of $ 2.4 million in our sales organization including an increase in personnel , travel , training costs , and incentives related to commercialization of new products . other key components of this expense relate to continued investment in assessing future product extensions and enhancements and market research . general and administrative expense general and administrative expense for the year ended december 31 , 2013 increased from $ 20.6 million to $ 26.3 million primarily related to the 2.3 % medical device excise tax of $ 1.8 million , acquisition related expenses of $ 1.0 million , an increase in stock compensation expense of $ 0.9 million related to the modification of performance awards and $ 0.7 million related to our enterprise resource planning system upgrade . story_separator_special_tag we also earn income from the licensing of technology . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option award . the total number of stock options expected to vest is adjusted by estimated forfeiture rates . we determine the estimated fair value of each stock option on the date of grant using the black-scholes option valuation model . compensation expense for time-based restricted stock awards and units is measured at the grant date and recognized ratably over the vesting period . we determine the fair value of time-based and performance-based restricted stock based on the closing market price of our common stock on the grant date . a portion of the restricted stock granted in 2012 and 2011 was performance-based and vesting is tied to achievement of specific company goals in 2014 and 2013. for purposes of measuring compensation expense , we estimate the amount of shares ultimately expected to vest at each reporting date based on management 's expectations regarding achievement of the relevant performance criteria . the recognition of compensation expense associated with performance-based restricted stock requires judgment in assessing the probability of meeting the performance goals , as well as defined criteria for assessing achievement of the performance-related goals . this may result in significant expense recognition in the period in which the performance goals are met or when achievement of the goals is deemed probable or may result in the reversal of previously recognized stock-based compensation expense if the performance criteria are deemed not probable of being met . the grant date of the performance-based restricted stock takes place when the grant is authorized and the specific achievement goals are communicated . the communication date of the performance goals can impact the valuation and associated expense of the restricted stock . the computation of the expected option life is based on a weighted-average calculation combining the average life of options that have already been exercised and post-vest cancellations with the estimated life of the remaining vested and unexercised options . the expected volatility is based on the historical volatility of our stock . the risk-free interest rate is based on the u.s treasury yield curve over the expected term of the option . historically , we have not paid any cash dividends on our common stock , and we do not anticipate paying any cash dividends in the foreseeable future . consequently , we use an expected dividend yield of zero in the black-scholes option valuation model . the estimated forfeiture rate is based on our historical experience and future expectations . reserve for uncollectible accounts receivable we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts , the aging of accounts receivable , our history of bad debts , and the general condition of the industry . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our historical experience , our estimates could change and adversely impact our reported results . inventory our policy is to value inventories at the lower of cost or market on a part-by-part basis . this policy requires us to make estimates regarding the market value of our inventories , including an assessment of excess or obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future demand for our products within a specified time horizon , generally 12 months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing and are consistent with our revenue forecasts . if our actual demand is less than our forecast demand , we may be required to take additional excess inventory charges , which would decrease gross margin and adversely impact net operating results in the future . goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher of the percentage of usage or the straight-line method . useful lives are based on the expected number of years the asset will generate revenue or otherwise be used by us . goodwill and in-process research and development that have indefinite lives are not amortized but instead are tested at least annually for impairment , or more frequently when events or changes in circumstances indicate that the asset might be impaired . examples of such events or circumstances include : 35 the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; any volatility or significant decline in our stock price and market capitalization compared to our net book value ; loss of legal ownership or title to an asset ; significant changes in our strategic business objectives and utilization of our assets ; and the impact of significant negative industry or economic trends . if a change were to occur in any of the above-mentioned factors or estimates , the likelihood of a material change in our reported results would increase . for goodwill , a two-step test is used to identify the potential impairment and to measure the amount of impairment , if any . the first step is to compare the fair value of a reporting unit with the carrying amount , including goodwill . if the fair value of a reporting unit exceeds its carrying amount , goodwill is considered not impaired ; otherwise , goodwill is impaired and the loss is measured by performing step two . under step two , the impairment loss is measured by comparing the implied fair value of the reporting unit with the carrying amount of goodwill . we are required to perform periodic evaluations for impairment of goodwill balances . we completed our annual evaluation for impairment of goodwill and in-process research and

liquidity and capital resources as of december 31 , 2013 and 2012 , our principal sources of liquidity consisted of the following ( in thousands ) : replace_table_token_9_th 31 during the year ended december 31 , 2013 , we received cash , pursuant to a grant agreement , which was restricted as to use until expenditures contemplated in the grant are made . as of december 31 , 2013 , we recorded this restricted cash as a component of prepaid expenses and other current assets as we anticipate making expenditures under the grant in 2014. the amount available to us under our senior credit facility can fluctuate from time to time due to , among other factors , our funded debt to adjusted ebitda ratio . cash provided by operating activities was $ 25.7 million during the year ended december 31 , 2013. we had net income of $ 7.4 million , including non-cash charges of $ 33.5 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant change in operating assets and liabilities was an increase in inventories of $ 12.0 million due to planned increases related to our molecular products , our spg facility relocation and the seasonal nature of our influenza business . cash provided by operating activities was $ 19.6 million during the year ended december 31 , 2012. we had net income of $ 5.0 million , including non-cash charges of $ 29.9 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant changes in operating assets and liabilities in 2012 included an increase in accounts receivable of $ 17.9 million related to an early start to the 2012/2013 cold and flu season in the fourth quarter of 2012. cash provided by operating activities was $ 47.5 million during the year ended december 31 , 2011. we had net income of $ 7.6 million , including non-cash charges of $ 25.3 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation .


 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 and 2012 , our principal sources of liquidity consisted of the following ( in thousands ) : replace_table_token_9_th 31 during the year ended december 31 , 2013 , we received cash , pursuant to a grant agreement , which was restricted as to use until expenditures contemplated in the grant are made . as of december 31 , 2013 , we recorded this restricted cash as a component of prepaid expenses and other current assets as we anticipate making expenditures under the grant in 2014. the amount available to us under our senior credit facility can fluctuate from time to time due to , among other factors , our funded debt to adjusted ebitda ratio . cash provided by operating activities was $ 25.7 million during the year ended december 31 , 2013. we had net income of $ 7.4 million , including non-cash charges of $ 33.5 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant change in operating assets and liabilities was an increase in inventories of $ 12.0 million due to planned increases related to our molecular products , our spg facility relocation and the seasonal nature of our influenza business . cash provided by operating activities was $ 19.6 million during the year ended december 31 , 2012. we had net income of $ 5.0 million , including non-cash charges of $ 29.9 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant changes in operating assets and liabilities in 2012 included an increase in accounts receivable of $ 17.9 million related to an early start to the 2012/2013 cold and flu season in the fourth quarter of 2012. cash provided by operating activities was $ 47.5 million during the year ended december 31 , 2011. we had net income of $ 7.6 million , including non-cash charges of $ 25.3 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation .
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 Suspicious Activity Report : and expand our presence in emerging markets ; and further refine our manufacturing efficiencies and productivity improvements to improve profit , with continued focus on profitable products and markets and our effort to create a core competency in new product development . product development activities are inherently uncertain , and there can be no assurance that we will be able to obtain approval for any of our products , or if we obtain approval , that we will successfully commercialize any of our products . in addition , we may terminate our development efforts with respect to one or more of our products under development at any time , including before or during clinical trials . as a business in a highly regulated , competitive and seasonal industry , we face many risks and challenges . you should refer to the discussion in item 1a , risk factors in part i of this annual report for further discussion of risks related to our business . outlook we expect revenue growth over the next 12 months and a related positive impact on gross margin and earnings . this growth is expected to be driven primarily by increased sales of our sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our molecular platforms . we will continue our focus on prudently managing our business and delivering solid financial results , while at the same time striving to continue to introduce new products to the market and maintaining our emphasis on research and development investments for longer term growth . finally , we will continue to evaluate opportunities to acquire new product lines , technologies and companies . 27 results of operations comparison of years ended december 31 , 2013 and 2012 total revenues the following table compares total revenues for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2013 , total revenue increased 13 % to $ 175.4 million . the increase in total revenues was primarily due to an increase in influenza product sales . the revenue from our royalty , license fees and grant revenue category for all periods primarily relate to royalty payments earned on our patented technologies utilized by third parties and revenue from grants for research and development activities . cost of sales cost of sales decreased to 38 % of total revenues , for the year ended december 31 , 2013 compared to 39 % of total revenues , for the year ended december 31 , 2012. the absolute dollar increase in cost of sales of $ 5.7 million for the year ended december 31 , 2013 from the year ended december 31 , 2012 is primarily related to the variable nature of direct costs ( material and labor ) associated with the 13 % increase in total revenues in 2013. the decrease in cost of sales as a percentage of total revenue was primarily due to a more favorable product mix in 2013 related to our higher margin influenza products , partially offset by an increase in depreciation of leased sofia instruments in 2013. operating expenses the following table compares operating expenses for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2013 increased from $ 27.7 million to $ 34.2 million due to planned increases in our development of molecular technologies , primarily on our savanna program . in addition , there were increases related to the acquisition of both biohelix and andiatec totaling $ 1.2 million . also contributing to the increase was a reduction in reimbursement for research and development costs of $ 1.4 million and $ 3.0 million for the years ended december 31 , 2013 and 2012 , respectively , associated with a third-party collaboration agreement as more fully described in note 1 in the notes to the consolidated financial statements included in this annual report . research and development expenses include direct external costs such as fees paid to consultants , and internal direct and indirect costs such as compensation and other expenses for research and development personnel , supplies and materials , clinical trials and studies , facility costs and depreciation . due to the risks inherent in the product development process and given the early-stage of development of certain projects , we are unable to estimate with meaningful certainty the costs we will incur in the continued development of our product candidates for commercialization . we expect our research and development costs to be substantial as we move other product candidates into preclinical and clinical trials and advance our existing product candidates into later stages of development . 28 sales and marketing expense sales and marketing expense for the year ended december 31 , 2013 increased from $ 30.3 million to $ 33.8 million primarily due to additional investments of $ 2.4 million in our sales organization including an increase in personnel , travel , training costs , and incentives related to commercialization of new products . other key components of this expense relate to continued investment in assessing future product extensions and enhancements and market research . general and administrative expense general and administrative expense for the year ended december 31 , 2013 increased from $ 20.6 million to $ 26.3 million primarily related to the 2.3 % medical device excise tax of $ 1.8 million , acquisition related expenses of $ 1.0 million , an increase in stock compensation expense of $ 0.9 million related to the modification of performance awards and $ 0.7 million related to our enterprise resource planning system upgrade . story_separator_special_tag we also earn income from the licensing of technology . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option award . the total number of stock options expected to vest is adjusted by estimated forfeiture rates . we determine the estimated fair value of each stock option on the date of grant using the black-scholes option valuation model . compensation expense for time-based restricted stock awards and units is measured at the grant date and recognized ratably over the vesting period . we determine the fair value of time-based and performance-based restricted stock based on the closing market price of our common stock on the grant date . a portion of the restricted stock granted in 2012 and 2011 was performance-based and vesting is tied to achievement of specific company goals in 2014 and 2013. for purposes of measuring compensation expense , we estimate the amount of shares ultimately expected to vest at each reporting date based on management 's expectations regarding achievement of the relevant performance criteria . the recognition of compensation expense associated with performance-based restricted stock requires judgment in assessing the probability of meeting the performance goals , as well as defined criteria for assessing achievement of the performance-related goals . this may result in significant expense recognition in the period in which the performance goals are met or when achievement of the goals is deemed probable or may result in the reversal of previously recognized stock-based compensation expense if the performance criteria are deemed not probable of being met . the grant date of the performance-based restricted stock takes place when the grant is authorized and the specific achievement goals are communicated . the communication date of the performance goals can impact the valuation and associated expense of the restricted stock . the computation of the expected option life is based on a weighted-average calculation combining the average life of options that have already been exercised and post-vest cancellations with the estimated life of the remaining vested and unexercised options . the expected volatility is based on the historical volatility of our stock . the risk-free interest rate is based on the u.s treasury yield curve over the expected term of the option . historically , we have not paid any cash dividends on our common stock , and we do not anticipate paying any cash dividends in the foreseeable future . consequently , we use an expected dividend yield of zero in the black-scholes option valuation model . the estimated forfeiture rate is based on our historical experience and future expectations . reserve for uncollectible accounts receivable we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts , the aging of accounts receivable , our history of bad debts , and the general condition of the industry . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our historical experience , our estimates could change and adversely impact our reported results . inventory our policy is to value inventories at the lower of cost or market on a part-by-part basis . this policy requires us to make estimates regarding the market value of our inventories , including an assessment of excess or obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future demand for our products within a specified time horizon , generally 12 months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing and are consistent with our revenue forecasts . if our actual demand is less than our forecast demand , we may be required to take additional excess inventory charges , which would decrease gross margin and adversely impact net operating results in the future . goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher of the percentage of usage or the straight-line method . useful lives are based on the expected number of years the asset will generate revenue or otherwise be used by us . goodwill and in-process research and development that have indefinite lives are not amortized but instead are tested at least annually for impairment , or more frequently when events or changes in circumstances indicate that the asset might be impaired . examples of such events or circumstances include : 35 the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; any volatility or significant decline in our stock price and market capitalization compared to our net book value ; loss of legal ownership or title to an asset ; significant changes in our strategic business objectives and utilization of our assets ; and the impact of significant negative industry or economic trends . if a change were to occur in any of the above-mentioned factors or estimates , the likelihood of a material change in our reported results would increase . for goodwill , a two-step test is used to identify the potential impairment and to measure the amount of impairment , if any . the first step is to compare the fair value of a reporting unit with the carrying amount , including goodwill . if the fair value of a reporting unit exceeds its carrying amount , goodwill is considered not impaired ; otherwise , goodwill is impaired and the loss is measured by performing step two . under step two , the impairment loss is measured by comparing the implied fair value of the reporting unit with the carrying amount of goodwill . we are required to perform periodic evaluations for impairment of goodwill balances . we completed our annual evaluation for impairment of goodwill and in-process research and

