these risks and uncertainties include but are not limited to those risks and uncertainties set forth in item 1a of this report . in light of the significant risks and uncertainties inherent in the forward-looking statements included in this report , the inclusion of such statements should not be regarded as a representation by us or any other person that our objectives and plans will be achieved . further , these forward-looking statements reflect our view only as of the date of this report . except as required by law , we undertake no obligations to update any forward-looking statements and we disclaim any intent to update forward-looking statements after the date of this report to reflect subsequent developments . accordingly , you should also carefully consider the factors set forth in other reports or documents that we file from time to time with the securities and exchange commission . results of operations revenues and gross profit from continuing operations were as follows ( in thousands , except percentages ) : replace_table_token_3_th 23 revenue the $ 5.4 million decrease in total revenue during the year ended december 31 , 2013 as compared to the prior year is primarily due to the non-recurrence of $ 4.3 million in upfront license fees from our commercial partners sandoz , abbott and takeda , received during the year ended december 31 , 2012 . this was partially offset by $ 0.6 million in license fee revenue in 2013 from bracco and $ 0.3 million in license fee revenue from sandoz as a result of substantive milestones received upon regulatory approvals in italy and germany , respectively . this decrease was also due to decreased contract service revenue in 2013 as compared to the prior year due to the loss of certain contract service customers in france in 2013 as compared to 2012 , following the deconsolidation of our former french subsidiaries in april 2013. we expect our cash inflows from operations during 2014 will be from licensing and milestone revenues received from commercial partners for our vitaros ® product . the timing of these revenues are uncertain , as such our revenue will vary significantly between periods . the $ 4.3 million increase in total revenue during the year ended december 31 , 2012 as compared to the prior year was primarily attributable to recognizing $ 4.3 million in upfront license fees during 2012 from sandoz , abbott and takeda compared to a total of $ 0.9 million recognized in 2011 from bracco , elis and neopharm . additionally , we recognized $ 2.9 million of revenue from contract services related to our former french subsidiaries , which were included in our statements of operations beginning in july 2012 , as well as service revenue from warner chilcott in the amount of $ 0.5 million in 2012. these increases were partially offset by the $ 2.1 decrease in contract service revenue resulting from the sale of our subsidiary , bio-quant , in june 2011 and for a $ 0.5 million reduction in grant revenue from government grants awarded to us during 2011 under the qtdp program . we did not apply for grants during 2012. cost of service revenue our cost of service revenue includes compensation , related personnel expenses and contract services to support our contract service revenue . the $ 1.6 million decrease in cost of service revenue during the year ended december 31 , 2013 , as compared to the prior year , is primarily due to contract services related to our former french subsidiaries , which were included in our statements of operations beginning july 2012 and deconsolidated in april 2013. accordingly , the 2013 results include approximately four months of expenses for the french operations and 2012 includes approximately five and one-half months of expenses . additionally , we had comparable contract service expenses in 2013 as compared to 2012 related to our warner chilcott service revenue . the $ 2.4 million increase in cost of service revenue during the year ended december 31 , 2012 , as compared to the prior year , is primarily due to contract services related to our former french subsidiaries , which were included in our statements of operations beginning in july 2012. in addition , we incurred approximately $ 0.3 million in contract service expenses related to our warner chilcott service revenue . these increases were partially offset by the $ 1.8 million decrease in expenses associated with our subsidiary , bio-quant , which was sold in june 2011. costs and expenses , net costs and expenses , net from continuing operations were as follows ( in thousands , except percentages ) : replace_table_token_4_th 24 research and development expenses research and development costs are expensed as incurred and include the cost of compensation and related expenses , as well as expenses for third parties who conduct research and development on our behalf , pursuant to development and consulting agreements in place . the $ 0.3 million decrease in our research and development expenditures during the year ended december 31 , 2013 , as compared to the prior year , reflects a decrease in license fees related to the purchase of a pediatrx license in 2012 offset by an increase in consulting services to support our regulatory filings for vitaros ® in europe . we expect to have net cash outflows from operations in 2014 as we further develop room temperature vitaros ® and seek to develop new product candidates within our pipeline using our existing technology . story_separator_special_tag as a result of the sale , we did not amortize the deferred rental income over the term of the lease and accordingly , a charge in the amount of $ 0.2 million was recorded in 2012. these impairment charges were recorded in the statement of operations and comprehensive loss in general and administrative expenses . we completed the sale of these assets in march 2013. in december 2012 , the company made the strategic decision to divest the oncology supportive care business . the decision to sell the business was a triggering event that required us to evaluate our assets held for sale including our intangible assets for impairment by comparing the book values of the company 's co-promotion rights , technology licenses and trade names against their respective estimated fair value . the evaluation of our oncology supportive care business , with the assistance of a third-party valuation firm , included estimating the fair value of the company 's co-promotion rights , technology licenses and trade names , which were determined using a discounted cash flows model and a market approach based on multiple offers the company received for certain assets of the business . the discounted cash flows model requires certain assumptions and judgments , including but not limited to : estimation of future cash flows , which is dependent on internal forecasts , estimation of the long-term rate of growth for the businesses , the useful life over which cash flows will occur , and determination of the company 's weighted average cost of capital . we determined that estimated future cash flows expected to result from the use of the assets used in that business and their eventual disposition were less than their carrying amount . we recorded an impairment charge of $ 1.8 million in december 2012 to write down our intangible assets to $ 1.9 million . income taxes we recognize deferred taxes under the asset and liability method of accounting for income taxes by which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse . the effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date . in addition , valuation allowances are established , when necessary , to reduce deferred tax assets to the amounts expected to be realized . 30 in consideration of our accumulated losses and lack of historical ability to generate taxable income to utilize our deferred tax assets , we have determined it is not more likely than not we will be able to realize any benefit from our temporary differences and have recorded a full valuation allowance . if we become profitable in the future at levels which cause management to conclude that it is more likely than not that we will realize all or a portion of the net operating loss carry-forward , we would record the estimated net realized value of the deferred tax asset at that time and would then provide for income taxes at a rate equal to our combined federal and state effective rates , which would be approximately 40 % under current tax laws . subsequent revisions to the estimated net realizable value of the deferred tax asset could cause our provision for income taxes to vary significantly from period to period . our policy is to recognize interest and penalties related to income tax matters in income tax expense . as the unrecognized tax benefits relate to un-utilized deferred tax assets and because we have generated net operating losses since inception for both federal and state income tax purposes through 2009 , no additional tax liability , penalties or interest have been recognized for balance sheet or statement of operations purposes as of and for the period ended december 31 , 2013 and 2012. stock based compensation in preparation of our consolidated financial statements , we calculate the value of stock options and restricted stock issued to employees , non-employee contractors and warrants issued to investors . the fair value of each option and warrant is estimated on the date of grant using the black-scholes option pricing model . the black-scholes option pricing model is a generally accepted method of estimating the fair value of stock options and warrants . the black-scholes option pricing model requires us to estimate our dividend yield rate , expected volatility and risk free interest rate over the life of the option . the use of estimates on these factors may cause the fair value of the option to be under or over estimated . see note 9 in the notes to the consolidated financial statements for the current estimates used in the black-scholes option pricing model . fair value of embedded derivative we calculate , on a monthly basis , the value of the embedded derivative as it relates to our convertible notes payable . the fair value of the derivative uses the black-scholes model and requires us to estimate our dividend yield rate , expected volatility and risk free interest rate over the life of the note . see note 7 to the consolidated financial statements for the current estimates used in the black-scholes model . item 7a . qualitative and quantitative disclosures about market risk our primary exposure to market risk is interest income sensitivity , which is affected by changes in the general level of u.s. interest rates , particularly because the majority of our investments are in short-term marketable securities . the primary objective of our investment activities is to preserve principal while at the same time maximizing the income we receive from our investments without significantly increasing risk . some of the securities may be subject to market risk . this means that a change in prevailing interest rates may cause the value of the investment to fluctuate .

cash used in operating activities was $ 15.1 million in 2013 , compared to $ 12.4 million in 2012 . the $ 2.7 million decrease in cash provided by operating activities in 2013 as compared to 2012 is due to a decrease in net loss from continuing operations of $ 9.8 million from 2012 to 2013 , adjusted for non-cash items including stock based compensation expense of $ 2.0 million , a benefit of $ 0.6 million related to the deconsolidation of our former french subsidiaries , and a $ 0.5 million gain on contract settlement . the change in net operating assets resulted mainly from a decrease in accounts payable and a decrease in accrued compensation offset by an increase in deferred revenue . cash used in operating activities was $ 12.4 million in 2012 , compared to $ 9.8 million in 2011 . the $ 2.6 million decrease in cash provided by operating activities in 2012 as compared to 2011 is due to a decrease in net loss from continuing operations of $ 7.5 million from 2011 to 2012 , adjusted for non-cash items including $ 8.3 million of impairment charges to goodwill and intangible assets , stock based compensation expense of $ 2.9 million as well as a $ 1.3 million deferred tax provision charge . the change in net operating assets resulted mainly from a decrease in prepaid expenses and other current assets offset by an increase in accounts payable . cash used in operating activities in 2011 consisted of net loss from continuing operations of $ 18.2 million offset by changes of $ 8.4 million in net operating assets , for total cash used in operating activities of $ 9.8 million . the primary non-cash expenses added back to net loss included stock based compensation expense of $ 2.1 million , a $ 2.8 million loss on the sale of our bio-quant subsidiary as well as $ 0.6 million in depreciation and amortization expense . the change in net operating assets resulted mainly from increases to accrued expenses and accounts payable .


 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.
     ```cash used in operating activities was $ 15.1 million in 2013 , compared to $ 12.4 million in 2012 . the $ 2.7 million decrease in cash provided by operating activities in 2013 as compared to 2012 is due to a decrease in net loss from continuing operations of $ 9.8 million from 2012 to 2013 , adjusted for non-cash items including stock based compensation expense of $ 2.0 million , a benefit of $ 0.6 million related to the deconsolidation of our former french subsidiaries , and a $ 0.5 million gain on contract settlement . the change in net operating assets resulted mainly from a decrease in accounts payable and a decrease in accrued compensation offset by an increase in deferred revenue . cash used in operating activities was $ 12.4 million in 2012 , compared to $ 9.8 million in 2011 . the $ 2.6 million decrease in cash provided by operating activities in 2012 as compared to 2011 is due to a decrease in net loss from continuing operations of $ 7.5 million from 2011 to 2012 , adjusted for non-cash items including $ 8.3 million of impairment charges to goodwill and intangible assets , stock based compensation expense of $ 2.9 million as well as a $ 1.3 million deferred tax provision charge . the change in net operating assets resulted mainly from a decrease in prepaid expenses and other current assets offset by an increase in accounts payable . cash used in operating activities in 2011 consisted of net loss from continuing operations of $ 18.2 million offset by changes of $ 8.4 million in net operating assets , for total cash used in operating activities of $ 9.8 million . the primary non-cash expenses added back to net loss included stock based compensation expense of $ 2.1 million , a $ 2.8 million loss on the sale of our bio-quant subsidiary as well as $ 0.6 million in depreciation and amortization expense . the change in net operating assets resulted mainly from increases to accrued expenses and accounts payable .
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 Suspicious Activity Report : these risks and uncertainties include but are not limited to those risks and uncertainties set forth in item 1a of this report . in light of the significant risks and uncertainties inherent in the forward-looking statements included in this report , the inclusion of such statements should not be regarded as a representation by us or any other person that our objectives and plans will be achieved . further , these forward-looking statements reflect our view only as of the date of this report . except as required by law , we undertake no obligations to update any forward-looking statements and we disclaim any intent to update forward-looking statements after the date of this report to reflect subsequent developments . accordingly , you should also carefully consider the factors set forth in other reports or documents that we file from time to time with the securities and exchange commission . results of operations revenues and gross profit from continuing operations were as follows ( in thousands , except percentages ) : replace_table_token_3_th 23 revenue the $ 5.4 million decrease in total revenue during the year ended december 31 , 2013 as compared to the prior year is primarily due to the non-recurrence of $ 4.3 million in upfront license fees from our commercial partners sandoz , abbott and takeda , received during the year ended december 31 , 2012 . this was partially offset by $ 0.6 million in license fee revenue in 2013 from bracco and $ 0.3 million in license fee revenue from sandoz as a result of substantive milestones received upon regulatory approvals in italy and germany , respectively . this decrease was also due to decreased contract service revenue in 2013 as compared to the prior year due to the loss of certain contract service customers in france in 2013 as compared to 2012 , following the deconsolidation of our former french subsidiaries in april 2013. we expect our cash inflows from operations during 2014 will be from licensing and milestone revenues received from commercial partners for our vitaros ® product . the timing of these revenues are uncertain , as such our revenue will vary significantly between periods . the $ 4.3 million increase in total revenue during the year ended december 31 , 2012 as compared to the prior year was primarily attributable to recognizing $ 4.3 million in upfront license fees during 2012 from sandoz , abbott and takeda compared to a total of $ 0.9 million recognized in 2011 from bracco , elis and neopharm . additionally , we recognized $ 2.9 million of revenue from contract services related to our former french subsidiaries , which were included in our statements of operations beginning in july 2012 , as well as service revenue from warner chilcott in the amount of $ 0.5 million in 2012. these increases were partially offset by the $ 2.1 decrease in contract service revenue resulting from the sale of our subsidiary , bio-quant , in june 2011 and for a $ 0.5 million reduction in grant revenue from government grants awarded to us during 2011 under the qtdp program . we did not apply for grants during 2012. cost of service revenue our cost of service revenue includes compensation , related personnel expenses and contract services to support our contract service revenue . the $ 1.6 million decrease in cost of service revenue during the year ended december 31 , 2013 , as compared to the prior year , is primarily due to contract services related to our former french subsidiaries , which were included in our statements of operations beginning july 2012 and deconsolidated in april 2013. accordingly , the 2013 results include approximately four months of expenses for the french operations and 2012 includes approximately five and one-half months of expenses . additionally , we had comparable contract service expenses in 2013 as compared to 2012 related to our warner chilcott service revenue . the $ 2.4 million increase in cost of service revenue during the year ended december 31 , 2012 , as compared to the prior year , is primarily due to contract services related to our former french subsidiaries , which were included in our statements of operations beginning in july 2012. in addition , we incurred approximately $ 0.3 million in contract service expenses related to our warner chilcott service revenue . these increases were partially offset by the $ 1.8 million decrease in expenses associated with our subsidiary , bio-quant , which was sold in june 2011. costs and expenses , net costs and expenses , net from continuing operations were as follows ( in thousands , except percentages ) : replace_table_token_4_th 24 research and development expenses research and development costs are expensed as incurred and include the cost of compensation and related expenses , as well as expenses for third parties who conduct research and development on our behalf , pursuant to development and consulting agreements in place . the $ 0.3 million decrease in our research and development expenditures during the year ended december 31 , 2013 , as compared to the prior year , reflects a decrease in license fees related to the purchase of a pediatrx license in 2012 offset by an increase in consulting services to support our regulatory filings for vitaros ® in europe . we expect to have net cash outflows from operations in 2014 as we further develop room temperature vitaros ® and seek to develop new product candidates within our pipeline using our existing technology . story_separator_special_tag as a result of the sale , we did not amortize the deferred rental income over the term of the lease and accordingly , a charge in the amount of $ 0.2 million was recorded in 2012. these impairment charges were recorded in the statement of operations and comprehensive loss in general and administrative expenses . we completed the sale of these assets in march 2013. in december 2012 , the company made the strategic decision to divest the oncology supportive care business . the decision to sell the business was a triggering event that required us to evaluate our assets held for sale including our intangible assets for impairment by comparing the book values of the company 's co-promotion rights , technology licenses and trade names against their respective estimated fair value . the evaluation of our oncology supportive care business , with the assistance of a third-party valuation firm , included estimating the fair value of the company 's co-promotion rights , technology licenses and trade names , which were determined using a discounted cash flows model and a market approach based on multiple offers the company received for certain assets of the business . the discounted cash flows model requires certain assumptions and judgments , including but not limited to : estimation of future cash flows , which is dependent on internal forecasts , estimation of the long-term rate of growth for the businesses , the useful life over which cash flows will occur , and determination of the company 's weighted average cost of capital . we determined that estimated future cash flows expected to result from the use of the assets used in that business and their eventual disposition were less than their carrying amount . we recorded an impairment charge of $ 1.8 million in december 2012 to write down our intangible assets to $ 1.9 million . income taxes we recognize deferred taxes under the asset and liability method of accounting for income taxes by which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse . the effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date . in addition , valuation allowances are established , when necessary , to reduce deferred tax assets to the amounts expected to be realized . 30 in consideration of our accumulated losses and lack of historical ability to generate taxable income to utilize our deferred tax assets , we have determined it is not more likely than not we will be able to realize any benefit from our temporary differences and have recorded a full valuation allowance . if we become profitable in the future at levels which cause management to conclude that it is more likely than not that we will realize all or a portion of the net operating loss carry-forward , we would record the estimated net realized value of the deferred tax asset at that time and would then provide for income taxes at a rate equal to our combined federal and state effective rates , which would be approximately 40 % under current tax laws . subsequent revisions to the estimated net realizable value of the deferred tax asset could cause our provision for income taxes to vary significantly from period to period . our policy is to recognize interest and penalties related to income tax matters in income tax expense . as the unrecognized tax benefits relate to un-utilized deferred tax assets and because we have generated net operating losses since inception for both federal and state income tax purposes through 2009 , no additional tax liability , penalties or interest have been recognized for balance sheet or statement of operations purposes as of and for the period ended december 31 , 2013 and 2012. stock based compensation in preparation of our consolidated financial statements , we calculate the value of stock options and restricted stock issued to employees , non-employee contractors and warrants issued to investors . the fair value of each option and warrant is estimated on the date of grant using the black-scholes option pricing model . the black-scholes option pricing model is a generally accepted method of estimating the fair value of stock options and warrants . the black-scholes option pricing model requires us to estimate our dividend yield rate , expected volatility and risk free interest rate over the life of the option . the use of estimates on these factors may cause the fair value of the option to be under or over estimated . see note 9 in the notes to the consolidated financial statements for the current estimates used in the black-scholes option pricing model . fair value of embedded derivative we calculate , on a monthly basis , the value of the embedded derivative as it relates to our convertible notes payable . the fair value of the derivative uses the black-scholes model and requires us to estimate our dividend yield rate , expected volatility and risk free interest rate over the life of the note . see note 7 to the consolidated financial statements for the current estimates used in the black-scholes model . item 7a . qualitative and quantitative disclosures about market risk our primary exposure to market risk is interest income sensitivity , which is affected by changes in the general level of u.s. interest rates , particularly because the majority of our investments are in short-term marketable securities . the primary objective of our investment activities is to preserve principal while at the same time maximizing the income we receive from our investments without significantly increasing risk . some of the securities may be subject to market risk . this means that a change in prevailing interest rates may cause the value of the investment to fluctuate .

