we believe there is opportunity to grow our wholesale business and to capture a larger share of the jewelry market as we execute our strategy to increase consumer awareness of moissanite . the wholesale finished jewelry business that we launched in 2010 has expanded through select retailers and television shopping networks . we believe there is significant opportunity to further expand our wholesale finished jewelry business through e-commerce , television shopping , and other retailers . we also believe our finished jewelry business , including finished jewelry sold through our direct-to-consumer e-commerce and home party sales channels , allows us to have more control over the end product and enhance our relationships with consumers , as well as provide incremental sales and gross profit dollars due to the higher price points of finished jewelry containing moissanite relative to loose jewels . to that end , we focused on the following critical aspects of our strategic plan during 2014 : · developing brand strategies - our goal is to build multiple strong brands around the moissanite jewel and finished jewelry collections in attractive and desirable jewelry designs , especially those featuring larger center stones that leverage moissanite 's point of differentiation and value proposition . we believe branding will allow us to increase consumer awareness , which we expect to help drive sales and develop consumer brand recognition and loyalty . in june 2012 , we launched a moissanite jewel with optical properties that are significantly whiter than our standard vg , or classic moissanite grade jewels . we are marketing these whiter jewels under the forever brilliant ® trademark as a premier brand to differentiate from other grades of our moissanite as well as moissanite sold by potential competitors in the future . in september 2014 , we launched the survivor collection , a unique jewelry line designed to celebrate breast cancer survivors . the line features three-stone rings and pendants , two forever brilliant ® and one pink moissanite gem to symbolize life before , during and after cancer . at the launch , we partnered with the breast cancer research foundation , as well as the women survivors alliance to promote breast cancer awareness , celebrate breast cancer survivors and effectively work to find a cure . the survivor collection has launched in over 150 retail locations in the unites states and canada , and our direct-to-consumer home party business lulu avenue ® . the collection has a website that shares information including “ where to buy ” and a vibrant social presence on facebook , twitter , and pinterest . we expect demand for our forever brilliant ® loose jewel and finished jewelry featuring the forever brilliant ® jewel to grow , both in our wholesale channel and on our moissanite.com e-commerce website , and that forever brilliant ® will become an increasingly important brand for charles & colvard , ltd. as we execute future branding initiatives . we are also exploring additional product lines and branding strategies that will differentiate our products in the market . in 2013 , we engaged two new york-based public relations , marketing , and events agencies to generate optimal exposure with consumer media for both our lulu avenue ® and forever brilliant ® brands , with the goal to increase consumer awareness of our brands specifically and moissanite generally . after our engagements , several media events occurred where magazine editors , fashion columnists , and bloggers were invited to experience first-hand our lulu avenue ® fashion and moissanite finished jewelry and our forever brilliant ® loose jewels . we utilized both agencies to increase exposure for our brands in the first nine months of 2014 through improved product placement in leading fashion periodicals and blogging sites , and through broadcast and print editorial outreach . we continued to utilize one agency during the last three months of 2014. we believe our efforts to position forever brilliant ® as the whitest and brightest moissanite jewel available anywhere in the world and the introduction of designer finished jewelry brands will help us to build brand recognition and increase consumer awareness of our products . we also expect that this strategy of building brand recognition will help to support revenue streams as our intellectual property rights expire beginning in 2015. to better position us for greater market share growth , we identified the need for a vp of marketing to focus our branding efforts on our target consumers , and we filled the role in april 2014 . 21 · expanding our direct-to-consumer e-commerce business - our direct-to-consumer e-commerce website , moissanite.com , features an intuitive site design with robust functionality to enhance the customer experience and convert traffic into sales . we continue to expand the website 's jewelry collections and its loose moissanite jewel assortment by featuring a variety of colors and shapes , and we are investing resources in targeted advertising and marketing campaigns . in 2013 and 2014 , we continued fine-tuning such marketing efforts to maximize return on investment , increasing product assortment , and building new site functionality designed to increase sales conversion rates . we believe our direct-to-consumer e-commerce sales channel will not only add to our top-line revenues in a significant manner , but will also play a key role in our campaign to increase overall consumer awareness of moissanite . we also envision e-commerce as a part of a broader effort to establish online connections with consumers that build our brands and our business with retail partners . · developing our direct-to-consumer home party business - in october 2012 , our direct-to-consumer home party business , lulu avenue ® , began to integrate the custom designs of a well-known jewelry designer into the current jewelry line . story_separator_special_tag the second reserve is an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments . this allowance reduces trade accounts receivable to an amount expected to be collected . based on historical percentages of uncollectible accounts by aging category , changes in payment history , and facts and circumstances regarding specific accounts that become known to management when evaluating the adequacy of the allowance for doubtful accounts , we determine a percentage based on the age of the receivable that we deem uncollectible . the allowance is then calculated by applying the appropriate percentage to each of our accounts receivable aging categories , with consideration given to individual customer account activity subsequent to the current period , including cash receipts , in determining the appropriate allowance for doubtful accounts in the current period . any increases or decreases to this allowance are charged or credited , respectively , as a bad debt expense to general and administrative expenses . we generally use an internal collection effort , which may include our sales personnel as we deem appropriate . after all internal collection efforts have been exhausted , we generally write off the account receivable . any accounts with significant balances are reviewed separately to determine an appropriate allowance based on the facts and circumstances of the specific account . during our reviews for 2014 and 2013 , we analyzed several of our slower-paying customers and determined that no additional reserves were necessary . based on these criteria , we determined that allowances for doubtful accounts receivable of $ 1.07 million and $ 522,000 at december 31 , 2014 and 2013 , respectively , were required . deferred tax assets - as of each reporting date , management considers new evidence , both positive and negative , that could impact its view with regard to future realization of deferred tax assets . management determined that sufficient positive evidence existed as of december 31 , 2013 to conclude that it is more likely than not that certain deferred tax assets of $ 4.04 million were realizable . a valuation allowance remained at december 31 , 2013 against certain deferred tax assets relating to state net operating loss carryforwards from our e-commerce and home party operating subsidiaries due to the timing uncertainty of when the subsidiaries will generate cumulative positive taxable income to utilize the associated deferred tax assets . a valuation allowance also remained at december 31 , 2013 against certain deferred tax assets relating to investment loss carryforwards because management did not anticipate we would generate sufficient investment income to utilize the carryforwards . management also previously considered various strategic alternatives , resulting in management determining that a valuation allowance was not necessary at that time . during the year ended december 31 , 2014 , management determined that such strategic alternatives were no longer in our best interest . accordingly , management concluded that the positive evidence was no longer sufficient to offset available negative evidence , primarily as a result of the pre-tax operating losses incurred during the year ended december 31 , 2014. as a result , management concluded that it was uncertain that we would have sufficient future taxable income to utilize our deferred tax assets , and therefore , we established a valuation allowance against our deferred tax assets , resulting in a tax expense of $ 4.05 million for the year ended december 31 , 2014 . 25 our deferred tax assets in hong kong were fully reserved with a valuation allowance of $ 996,000 as of december 31 , 2014 and 2013 and had been fully reserved in all prior periods due to the uncertainty of future taxable income in this jurisdiction to utilize the deferred tax assets . our hong kong subsidiary ceased operations during 2008 and became a dormant entity during 2009. if we use any portion of our deferred tax assets in future periods , the valuation allowance would need to be reversed and may impact our future operating results . uncertain tax positions - effective january 1 , 2007 , we adopted u.s. gaap guidance regarding the de-recognition , classification , accounting in interim periods , and disclosure requirements for uncertain tax positions . determining which tax positions qualify as uncertain positions and the subsequent accounting for these positions requires significant estimates and assumptions . our net accrued income tax liability under the provisions of this guidance was $ 408,000 and $ 395,000 at december 31 , 2014 and 2013 , respectively . this liability is only resolved when we obtain an official ruling from the tax authority on the positions or when the statute of limitations expires . our liability increased by $ 13,000 for accrued interest on these positions . cooperative advertising - we offer a cooperative advertising program to many of our wholesale customers that reimburses , via a credit towards future purchases , a portion of their marketing costs based on their net purchases from us . at the end of any given period , we estimate the amount of cooperative advertising expense that has not yet been submitted for credit by our customers . these amounts were $ 220,000 and $ 188,000 at december 31 , 2014 and 2013 , respectively . we estimate this amount based on our historical experience with each customer and the related contractual arrangements to provide certain levels of cooperative advertising for our customers . any differences in actual amounts to our estimates will result in a charge or credit to sales and marketing expenses . revenue recognition - revenue is recognized when title transfers at the time of shipment from our or a third-party fulfillment company 's facility , excluding consignment shipments as discussed below ; evidence of an arrangement exists ; pricing is fixed or determinable ; and collectability is reasonably assured . our standard wholesale customer payment terms are generally between 30 and 90 days , though we

liquidity and capital resources we require cash to fund our operating expenses and working capital requirements , including outlays for capital expenditures . as of december 31 , 2014 , our principal sources of liquidity were cash and cash equivalents totaling $ 4.01 million , trade accounts receivable of $ 5.51 million , and short-term inventory of $ 13.32 million , as compared to cash and cash equivalents totaling $ 2.57 million , trade accounts receivable of $ 10.24 million , and short-term inventory of $ 13.07 million as of december 31 , 2013. as described more fully below , we also have access to the $ 10 million credit facility . during the year ended december 31 , 2014 , our working capital decreased by approximately $ 4.29 million to $ 19.25 million from $ 23.54 million at december 31 , 2013. as described more fully below , the decrease in working capital at december 31 , 2014 is primarily attributable to a decrease in trade accounts receivable , deferred income taxes , prepaid expenses and other assets , and a net increase in accrued expenses and other liabilities , offset in part by an increase in cash and cash equivalents , a decrease in trade accounts payable , and a greater allocation of inventory to short-term . during the year ended december 31 , 2014 , $ 2.03 million of cash was provided by operations . the primary drivers of positive cash flow were a decrease in trade accounts receivable of $ 4.28 million , a decrease in inventory of $ 3.18 million , an increase in accrued liabilities of $ 346,000 , and a decrease in prepaid expenses of $ 116,000. these factors were partially offset by our loss of $ 13.10 million that included $ 7.60 million of non-cash expenses and a decrease in accounts payable of $ 384,000. accounts receivable decreased primarily as a result of collection efforts during 2014 on higher sales made in the fourth quarter of 2013 , offset in part by extended wholesale customer payment terms that we offer from time to time that may not immediately increase liquidity as a result of current-period sales .


 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 we require cash to fund our operating expenses and working capital requirements , including outlays for capital expenditures . as of december 31 , 2014 , our principal sources of liquidity were cash and cash equivalents totaling $ 4.01 million , trade accounts receivable of $ 5.51 million , and short-term inventory of $ 13.32 million , as compared to cash and cash equivalents totaling $ 2.57 million , trade accounts receivable of $ 10.24 million , and short-term inventory of $ 13.07 million as of december 31 , 2013. as described more fully below , we also have access to the $ 10 million credit facility . during the year ended december 31 , 2014 , our working capital decreased by approximately $ 4.29 million to $ 19.25 million from $ 23.54 million at december 31 , 2013. as described more fully below , the decrease in working capital at december 31 , 2014 is primarily attributable to a decrease in trade accounts receivable , deferred income taxes , prepaid expenses and other assets , and a net increase in accrued expenses and other liabilities , offset in part by an increase in cash and cash equivalents , a decrease in trade accounts payable , and a greater allocation of inventory to short-term . during the year ended december 31 , 2014 , $ 2.03 million of cash was provided by operations . the primary drivers of positive cash flow were a decrease in trade accounts receivable of $ 4.28 million , a decrease in inventory of $ 3.18 million , an increase in accrued liabilities of $ 346,000 , and a decrease in prepaid expenses of $ 116,000. these factors were partially offset by our loss of $ 13.10 million that included $ 7.60 million of non-cash expenses and a decrease in accounts payable of $ 384,000. accounts receivable decreased primarily as a result of collection efforts during 2014 on higher sales made in the fourth quarter of 2013 , offset in part by extended wholesale customer payment terms that we offer from time to time that may not immediately increase liquidity as a result of current-period sales .
```    
 Suspicious Activity Report : we believe there is opportunity to grow our wholesale business and to capture a larger share of the jewelry market as we execute our strategy to increase consumer awareness of moissanite . the wholesale finished jewelry business that we launched in 2010 has expanded through select retailers and television shopping networks . we believe there is significant opportunity to further expand our wholesale finished jewelry business through e-commerce , television shopping , and other retailers . we also believe our finished jewelry business , including finished jewelry sold through our direct-to-consumer e-commerce and home party sales channels , allows us to have more control over the end product and enhance our relationships with consumers , as well as provide incremental sales and gross profit dollars due to the higher price points of finished jewelry containing moissanite relative to loose jewels . to that end , we focused on the following critical aspects of our strategic plan during 2014 : · developing brand strategies - our goal is to build multiple strong brands around the moissanite jewel and finished jewelry collections in attractive and desirable jewelry designs , especially those featuring larger center stones that leverage moissanite 's point of differentiation and value proposition . we believe branding will allow us to increase consumer awareness , which we expect to help drive sales and develop consumer brand recognition and loyalty . in june 2012 , we launched a moissanite jewel with optical properties that are significantly whiter than our standard vg , or classic moissanite grade jewels . we are marketing these whiter jewels under the forever brilliant ® trademark as a premier brand to differentiate from other grades of our moissanite as well as moissanite sold by potential competitors in the future . in september 2014 , we launched the survivor collection , a unique jewelry line designed to celebrate breast cancer survivors . the line features three-stone rings and pendants , two forever brilliant ® and one pink moissanite gem to symbolize life before , during and after cancer . at the launch , we partnered with the breast cancer research foundation , as well as the women survivors alliance to promote breast cancer awareness , celebrate breast cancer survivors and effectively work to find a cure . the survivor collection has launched in over 150 retail locations in the unites states and canada , and our direct-to-consumer home party business lulu avenue ® . the collection has a website that shares information including “ where to buy ” and a vibrant social presence on facebook , twitter , and pinterest . we expect demand for our forever brilliant ® loose jewel and finished jewelry featuring the forever brilliant ® jewel to grow , both in our wholesale channel and on our moissanite.com e-commerce website , and that forever brilliant ® will become an increasingly important brand for charles & colvard , ltd. as we execute future branding initiatives . we are also exploring additional product lines and branding strategies that will differentiate our products in the market . in 2013 , we engaged two new york-based public relations , marketing , and events agencies to generate optimal exposure with consumer media for both our lulu avenue ® and forever brilliant ® brands , with the goal to increase consumer awareness of our brands specifically and moissanite generally . after our engagements , several media events occurred where magazine editors , fashion columnists , and bloggers were invited to experience first-hand our lulu avenue ® fashion and moissanite finished jewelry and our forever brilliant ® loose jewels . we utilized both agencies to increase exposure for our brands in the first nine months of 2014 through improved product placement in leading fashion periodicals and blogging sites , and through broadcast and print editorial outreach . we continued to utilize one agency during the last three months of 2014. we believe our efforts to position forever brilliant ® as the whitest and brightest moissanite jewel available anywhere in the world and the introduction of designer finished jewelry brands will help us to build brand recognition and increase consumer awareness of our products . we also expect that this strategy of building brand recognition will help to support revenue streams as our intellectual property rights expire beginning in 2015. to better position us for greater market share growth , we identified the need for a vp of marketing to focus our branding efforts on our target consumers , and we filled the role in april 2014 . 21 · expanding our direct-to-consumer e-commerce business - our direct-to-consumer e-commerce website , moissanite.com , features an intuitive site design with robust functionality to enhance the customer experience and convert traffic into sales . we continue to expand the website 's jewelry collections and its loose moissanite jewel assortment by featuring a variety of colors and shapes , and we are investing resources in targeted advertising and marketing campaigns . in 2013 and 2014 , we continued fine-tuning such marketing efforts to maximize return on investment , increasing product assortment , and building new site functionality designed to increase sales conversion rates . we believe our direct-to-consumer e-commerce sales channel will not only add to our top-line revenues in a significant manner , but will also play a key role in our campaign to increase overall consumer awareness of moissanite . we also envision e-commerce as a part of a broader effort to establish online connections with consumers that build our brands and our business with retail partners . · developing our direct-to-consumer home party business - in october 2012 , our direct-to-consumer home party business , lulu avenue ® , began to integrate the custom designs of a well-known jewelry designer into the current jewelry line . story_separator_special_tag the second reserve is an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments . this allowance reduces trade accounts receivable to an amount expected to be collected . based on historical percentages of uncollectible accounts by aging category , changes in payment history , and facts and circumstances regarding specific accounts that become known to management when evaluating the adequacy of the allowance for doubtful accounts , we determine a percentage based on the age of the receivable that we deem uncollectible . the allowance is then calculated by applying the appropriate percentage to each of our accounts receivable aging categories , with consideration given to individual customer account activity subsequent to the current period , including cash receipts , in determining the appropriate allowance for doubtful accounts in the current period . any increases or decreases to this allowance are charged or credited , respectively , as a bad debt expense to general and administrative expenses . we generally use an internal collection effort , which may include our sales personnel as we deem appropriate . after all internal collection efforts have been exhausted , we generally write off the account receivable . any accounts with significant balances are reviewed separately to determine an appropriate allowance based on the facts and circumstances of the specific account . during our reviews for 2014 and 2013 , we analyzed several of our slower-paying customers and determined that no additional reserves were necessary . based on these criteria , we determined that allowances for doubtful accounts receivable of $ 1.07 million and $ 522,000 at december 31 , 2014 and 2013 , respectively , were required . deferred tax assets - as of each reporting date , management considers new evidence , both positive and negative , that could impact its view with regard to future realization of deferred tax assets . management determined that sufficient positive evidence existed as of december 31 , 2013 to conclude that it is more likely than not that certain deferred tax assets of $ 4.04 million were realizable . a valuation allowance remained at december 31 , 2013 against certain deferred tax assets relating to state net operating loss carryforwards from our e-commerce and home party operating subsidiaries due to the timing uncertainty of when the subsidiaries will generate cumulative positive taxable income to utilize the associated deferred tax assets . a valuation allowance also remained at december 31 , 2013 against certain deferred tax assets relating to investment loss carryforwards because management did not anticipate we would generate sufficient investment income to utilize the carryforwards . management also previously considered various strategic alternatives , resulting in management determining that a valuation allowance was not necessary at that time . during the year ended december 31 , 2014 , management determined that such strategic alternatives were no longer in our best interest . accordingly , management concluded that the positive evidence was no longer sufficient to offset available negative evidence , primarily as a result of the pre-tax operating losses incurred during the year ended december 31 , 2014. as a result , management concluded that it was uncertain that we would have sufficient future taxable income to utilize our deferred tax assets , and therefore , we established a valuation allowance against our deferred tax assets , resulting in a tax expense of $ 4.05 million for the year ended december 31 , 2014 . 25 our deferred tax assets in hong kong were fully reserved with a valuation allowance of $ 996,000 as of december 31 , 2014 and 2013 and had been fully reserved in all prior periods due to the uncertainty of future taxable income in this jurisdiction to utilize the deferred tax assets . our hong kong subsidiary ceased operations during 2008 and became a dormant entity during 2009. if we use any portion of our deferred tax assets in future periods , the valuation allowance would need to be reversed and may impact our future operating results . uncertain tax positions - effective january 1 , 2007 , we adopted u.s. gaap guidance regarding the de-recognition , classification , accounting in interim periods , and disclosure requirements for uncertain tax positions . determining which tax positions qualify as uncertain positions and the subsequent accounting for these positions requires significant estimates and assumptions . our net accrued income tax liability under the provisions of this guidance was $ 408,000 and $ 395,000 at december 31 , 2014 and 2013 , respectively . this liability is only resolved when we obtain an official ruling from the tax authority on the positions or when the statute of limitations expires . our liability increased by $ 13,000 for accrued interest on these positions . cooperative advertising - we offer a cooperative advertising program to many of our wholesale customers that reimburses , via a credit towards future purchases , a portion of their marketing costs based on their net purchases from us . at the end of any given period , we estimate the amount of cooperative advertising expense that has not yet been submitted for credit by our customers . these amounts were $ 220,000 and $ 188,000 at december 31 , 2014 and 2013 , respectively . we estimate this amount based on our historical experience with each customer and the related contractual arrangements to provide certain levels of cooperative advertising for our customers . any differences in actual amounts to our estimates will result in a charge or credit to sales and marketing expenses . revenue recognition - revenue is recognized when title transfers at the time of shipment from our or a third-party fulfillment company 's facility , excluding consignment shipments as discussed below ; evidence of an arrangement exists ; pricing is fixed or determinable ; and collectability is reasonably assured . our standard wholesale customer payment terms are generally between 30 and 90 days , though we

