however , we can not assure you that we will be successful in accomplishing any of these plans and , if we are unable to obtain adequate capital , we could be forced to cease operations . finally , the acquisition of the acueity assets may become a complement to our current business at some point in the future . we are not currently allocating human or financial resources to these assets , with the exception of approximately $ 50,000 for patent maintenance fees and application prosecution expenses related to the acueity asset purchase . following the launch of our four diagnostic tests in the u.s. , we will then begin to allocate human and financial resources to further develop and ultimately commercialize these medical devices . we intend to complete the steps necessary to begin marketing and selling these tools , such as re-establishment of the supply chain of component parts , securing manufacturers , performing test builds and commercial scale manufacturing , in late 2013. this asset purchase is not expected to have an impact on the development and commercialization timetables of our existing product lines . we can not , however , provide any assurances that delays related to the launch of our four diagnostic tests , independent of this asset purchase , would not delay the expected development of these diagnostic tools or that we will ultimately be successful selling these tools . on march 27 , 2013 we entered into a stock purchase agreement with aspire capital fund , llc , which provides that , upon the terms and subject to the conditions and limitations set forth therein , aspire is committed to purchase up to an aggregate of $ 30 million of shares of our common stock over the three-year term of the agreement . under the agreement , aspire purchased $ 1,000,000 of our common stock on march 27 , 2013 for $ 12 per share . before we can sell any additional shares under the agreement , we must register the shares and have the registration statement declared effective by the sec . revenue sources the commercialization of the forecyte test provides us with two revenue sources : ( i ) sales-based revenue from the sale of the masct system device and patient kits to distributors , physicians , breast health clinics , and mammography clinics and ( ii ) service , or use-based , revenue from the preparation and interpretation of the naf samples sent to our laboratory for analysis . the commercialization of the arguscyte test provides only laboratory service revenue . 41 commencing in december 2011 , we began to market the forecyte test to physicians , primarily obstetric-gynecologists , as well as breast health and mammography clinics , for use in conjunction with other health screening examinations , including annual physical examinations and regularly scheduled cervical pap smears and mammograms . we are establishing relationships with breast cancer centers to provide the arguscyte test to their patients . we plan to initially use regional specialty product distributors , with independent sale representatives specializing in women 's health , to commercialize the forecyte and arguscyte tests . as of december 31 , 2012 , we have entered an agreement with clarity women 's health , a division of diagnostic test group llc ( dtg ) ; however , we can not be certain that we will be able to build distributor relationships , including our relationship with dtg , adequately to address the national market . in addition to dr. quay , in april 2012 we hired a board-certified pathologist part-time to assist in the interpretation of the naf samples . commercial lease agreements on september 29 , 2010 , the company entered into a commercial lease agreement with complegen , inc. for laboratory space located in seattle , wa . the lease provides for monthly rent of $ 3,658 and a security deposit of $ 3,658. the lease terms are from september 29 , 2010 through march 31 , 2011 , at which time the lease has converted to month to month unless two months ' prior written notice of the intent to terminate the agreement is given . the monthly rent for the lease increased to $ 4,267 commencing january 2012. for the twelve months ended december 31 , 2012 , the company incurred $ 46,529 of rent expense for the lease . the lease was terminated in december 2012 , and the rental deposit was applied to the rent of the final month . on march 4 , 2011 , the company entered into a commercial lease agreement with sanders properties , llc for office space located in seattle , wa . the lease provides for monthly rent of $ 1,100 and a security deposit of $ 1,500. the lease terms are from april 1 , 2011 through march 31 , 2013. for the twelve months ended december 31 , 2012 , the company incurred $ 13,200 of rent expense for the lease . on july 9 , 2011 , the company entered into a commercial lease agreement with sanders properties , llc for additional office space located in seattle , wa . the lease provides for monthly rent of $ 600 and a security deposit of $ 1,200. the lease terms are from july 11 , 2011 through july 31 , 2012. for the twelve months ended december 31 , 2012 , the company incurred $ 4,200 of rent expense for the lease . this lease terminated on july 31 , 2012 and was not renewed . on september 27 , 2011 , the company entered into another commercial lease agreement with sanders properties , llc for additional office space located in seattle , wa . story_separator_special_tag total cost of revenue was $ 35,745 , primarily attributable to cost of diagnostic testing services performed , which consisted of $ 35,745 in payments to doctors for their time administering the forecyte testing service . since the inventory of masct system was recorded at zero net realizable value as a result of the lower of cost or market analysis performed at december 31 , 2011 , no corresponding cost of goods sold was recorded for the sales of masct system for the twelve months ended december 31 , 2012. gross profit was $ 439,657 for the diagnostic testing service and $ 6,440 for the product sales of masct system with no corresponding cost of goods sold . loss on reduction of inventory to lower of cost or market was $ 29,884 for the twelve months ended december 31 , 2012 , primarily due to write-off of parts purchased during the year for the assembly of masct system , which was determined at zero net realizable value as a result of lower of cost or market analysis performed at december 31 , 2012. our masct system is currently sold at a price substantially lower than its cost to encourage sales and because the masct system is currently manufactured by our suppliers only in small quantities . for these reasons , the manufacturing cost allocated to each inventory unit is high . for 2012 , total operating expenses were $ 5,485,243 , consisting of g & a expenses of $ 5,018,422 and selling expenses of $ 466,821 , which included $ 55,282 of cost of forecyte and arguscyte testing specimen collection kits that were immediately expensed upon purchase during the quarter . during the initial marketing phase , the company has decided to distribute the kits to customers at no cost and bundle them with the masct system and has not intended to deem the kits as a primary product line due to their nominal cost and value per unit . the selling expenses also included $ 266,698 in salaries and $ 114,822 in advertising . the g & a expenses consisted primarily of $ 350,914 in salaries and bonus expense , $ 1,072,992 in legal expense , $ 229,838 in consulting expense , $ 232,291 in accounting expense , $ 40,868 in travel expense , $ 86,489 in payroll taxes , $ 166,614 in professional fees , $ 84,624 in health insurance expense and $ 113,400 in business insurance . also included in g & a expense is $ 1,976,638 in research and development expense , consisting primarily of $ 645,901 in salaries and bonus expense , $ 246,950 in rent expense , $ 27,853 in laboratory supplies , $ 130,040 in masct system development , $ 244,203 in masct system service development , $ 489,778 in ductal lavage product development , $ 39,789 in ductal lavage service development and $ 34,649 in circulating tumor cells service development . 45 comparison of the twelve months ended december 31 , 2012 and 2011 revenue and cost of goods sold . for the twelve months ended december 31 , 2012 , we had total revenue of $ 481,842 , consisting of $ 6,440 product revenue from sales of masct systems and $ 475,402 diagnostic testing service revenue from our forecyte and arguscyte testing services performed . this compares to total revenue of $ 1,500 for the twelve months ended december 31 , 2011. total cost of goods sold was $ 5,164 and consisted of $ 4,158 in direct costs related to the production of the masct systems which were sold , and $ 1,006 in costs of goods sold for items expensed when purchased . since the inventory of masct system was recorded at zero net realizable value as a result of the lower of cost or market analysis performed at december 31 , 2011 , no corresponding cost of goods sold was recorded for the sales of masct system for the twelve months ended december 31 , 2012. gross profit for the twelve months ended december 31 , 2012 was $ 416,213 for the diagnostic testing service and $ 6,440 for the product sales of masct system with no corresponding cost of goods sold . this compares to gross profit of ( $ 95,690 ) for the twelve months ended december 31 , 2011. loss on reduction of inventory to lower of cost or market was $ 29,884 for the twelve months ended december 31 , 2012 , primarily due to write-off of parts purchased during the year for the assembly of masct system which was determined at zero net realizable value as a result of lower of cost or market analysis at december 31 , 2011 and december 31 , 2012. our masct system is currently sold at a price substantially lower than its cost to encourage sales and because the masct system is currently manufactured by our suppliers only in small quantities . for these reasons , the manufacturing cost allocated to each inventory unit is high . as discussed below , we expect that our r & d and g & a expenses will continue to increase in the foreseeable future , and that if we successfully launch the masct system and our related laboratory service offerings , we would also begin to incur sales and marketing expenses as we build a regional , and ultimately national , sales force . we may limit our fixed sales and marketing costs initially by using third party distributors and employing temporary workers or those who are compensated on a commission basis . however , we expect our expenditures to increase significantly in future periods . operating expenses . total operating expenses were $ 5,485,243 for the twelve months ended december 31 , 2012 , consisting of g & a expenses of $ 5,018,422 and selling expenses of $ 466,821 , which included $ 55,282 of cost of forecyte and arguscyte testing specimen collection kits that were immediately expensed upon purchase

liquidity and capital resources we have a history of operating losses as we have focused our efforts on raising capital and building the masct system . the report of our independent auditors issued on our consolidated financial statements as of and for the years ended december 31 , 2012 and 2011 expresses substantial doubt about our ability to continue as a going concern . in 2011 , we were successful in raising net proceeds of $ 5.7 million through a private placement in order to fund the growth of our operations and product development . in november 2012 we were successful in our initial public offering and raising net proceeds of approximately $ 3.5 million . our ability to continue as a going concern is dependent on our obtaining additional adequate capital to fund additional operating losses until we become profitable . if we are unable to obtain adequate capital , we could be forced to cease operations . on march 27 , 2013 we entered into a stock purchase agreement with aspire capital fund , llc , which provides that , upon the terms and subject to the conditions and limitations set forth therein , aspire is committed to purchase up to an aggregate of $ 30 million of shares of our common stock over the three-year term of the agreement . under the agreement , aspire purchased $ 1,000,000 of our common stock on march 27 , 2013 for $ 12 per share . before we can sell any additional shares under the agreement , we must register the shares and have the registration statement declared effective by the sec . cash flows for the twelve months ended december 31 , 2012 , we incurred a net loss of $ 5,079,851. net cash used in operating activities was $ 3,899,964 , net cash used in investing activities was $ 134,582 and net cash provided by financing activities was $ 3,848,922. during the twelve months ended december 31 , 2012 we repaid $ 1,000,000 that we previously drew on our bank line of credit .


 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 have a history of operating losses as we have focused our efforts on raising capital and building the masct system . the report of our independent auditors issued on our consolidated financial statements as of and for the years ended december 31 , 2012 and 2011 expresses substantial doubt about our ability to continue as a going concern . in 2011 , we were successful in raising net proceeds of $ 5.7 million through a private placement in order to fund the growth of our operations and product development . in november 2012 we were successful in our initial public offering and raising net proceeds of approximately $ 3.5 million . our ability to continue as a going concern is dependent on our obtaining additional adequate capital to fund additional operating losses until we become profitable . if we are unable to obtain adequate capital , we could be forced to cease operations . on march 27 , 2013 we entered into a stock purchase agreement with aspire capital fund , llc , which provides that , upon the terms and subject to the conditions and limitations set forth therein , aspire is committed to purchase up to an aggregate of $ 30 million of shares of our common stock over the three-year term of the agreement . under the agreement , aspire purchased $ 1,000,000 of our common stock on march 27 , 2013 for $ 12 per share . before we can sell any additional shares under the agreement , we must register the shares and have the registration statement declared effective by the sec . cash flows for the twelve months ended december 31 , 2012 , we incurred a net loss of $ 5,079,851. net cash used in operating activities was $ 3,899,964 , net cash used in investing activities was $ 134,582 and net cash provided by financing activities was $ 3,848,922. during the twelve months ended december 31 , 2012 we repaid $ 1,000,000 that we previously drew on our bank line of credit .
```    
 Suspicious Activity Report : however , we can not assure you that we will be successful in accomplishing any of these plans and , if we are unable to obtain adequate capital , we could be forced to cease operations . finally , the acquisition of the acueity assets may become a complement to our current business at some point in the future . we are not currently allocating human or financial resources to these assets , with the exception of approximately $ 50,000 for patent maintenance fees and application prosecution expenses related to the acueity asset purchase . following the launch of our four diagnostic tests in the u.s. , we will then begin to allocate human and financial resources to further develop and ultimately commercialize these medical devices . we intend to complete the steps necessary to begin marketing and selling these tools , such as re-establishment of the supply chain of component parts , securing manufacturers , performing test builds and commercial scale manufacturing , in late 2013. this asset purchase is not expected to have an impact on the development and commercialization timetables of our existing product lines . we can not , however , provide any assurances that delays related to the launch of our four diagnostic tests , independent of this asset purchase , would not delay the expected development of these diagnostic tools or that we will ultimately be successful selling these tools . on march 27 , 2013 we entered into a stock purchase agreement with aspire capital fund , llc , which provides that , upon the terms and subject to the conditions and limitations set forth therein , aspire is committed to purchase up to an aggregate of $ 30 million of shares of our common stock over the three-year term of the agreement . under the agreement , aspire purchased $ 1,000,000 of our common stock on march 27 , 2013 for $ 12 per share . before we can sell any additional shares under the agreement , we must register the shares and have the registration statement declared effective by the sec . revenue sources the commercialization of the forecyte test provides us with two revenue sources : ( i ) sales-based revenue from the sale of the masct system device and patient kits to distributors , physicians , breast health clinics , and mammography clinics and ( ii ) service , or use-based , revenue from the preparation and interpretation of the naf samples sent to our laboratory for analysis . the commercialization of the arguscyte test provides only laboratory service revenue . 41 commencing in december 2011 , we began to market the forecyte test to physicians , primarily obstetric-gynecologists , as well as breast health and mammography clinics , for use in conjunction with other health screening examinations , including annual physical examinations and regularly scheduled cervical pap smears and mammograms . we are establishing relationships with breast cancer centers to provide the arguscyte test to their patients . we plan to initially use regional specialty product distributors , with independent sale representatives specializing in women 's health , to commercialize the forecyte and arguscyte tests . as of december 31 , 2012 , we have entered an agreement with clarity women 's health , a division of diagnostic test group llc ( dtg ) ; however , we can not be certain that we will be able to build distributor relationships , including our relationship with dtg , adequately to address the national market . in addition to dr. quay , in april 2012 we hired a board-certified pathologist part-time to assist in the interpretation of the naf samples . commercial lease agreements on september 29 , 2010 , the company entered into a commercial lease agreement with complegen , inc. for laboratory space located in seattle , wa . the lease provides for monthly rent of $ 3,658 and a security deposit of $ 3,658. the lease terms are from september 29 , 2010 through march 31 , 2011 , at which time the lease has converted to month to month unless two months ' prior written notice of the intent to terminate the agreement is given . the monthly rent for the lease increased to $ 4,267 commencing january 2012. for the twelve months ended december 31 , 2012 , the company incurred $ 46,529 of rent expense for the lease . the lease was terminated in december 2012 , and the rental deposit was applied to the rent of the final month . on march 4 , 2011 , the company entered into a commercial lease agreement with sanders properties , llc for office space located in seattle , wa . the lease provides for monthly rent of $ 1,100 and a security deposit of $ 1,500. the lease terms are from april 1 , 2011 through march 31 , 2013. for the twelve months ended december 31 , 2012 , the company incurred $ 13,200 of rent expense for the lease . on july 9 , 2011 , the company entered into a commercial lease agreement with sanders properties , llc for additional office space located in seattle , wa . the lease provides for monthly rent of $ 600 and a security deposit of $ 1,200. the lease terms are from july 11 , 2011 through july 31 , 2012. for the twelve months ended december 31 , 2012 , the company incurred $ 4,200 of rent expense for the lease . this lease terminated on july 31 , 2012 and was not renewed . on september 27 , 2011 , the company entered into another commercial lease agreement with sanders properties , llc for additional office space located in seattle , wa . story_separator_special_tag total cost of revenue was $ 35,745 , primarily attributable to cost of diagnostic testing services performed , which consisted of $ 35,745 in payments to doctors for their time administering the forecyte testing service . since the inventory of masct system was recorded at zero net realizable value as a result of the lower of cost or market analysis performed at december 31 , 2011 , no corresponding cost of goods sold was recorded for the sales of masct system for the twelve months ended december 31 , 2012. gross profit was $ 439,657 for the diagnostic testing service and $ 6,440 for the product sales of masct system with no corresponding cost of goods sold . loss on reduction of inventory to lower of cost or market was $ 29,884 for the twelve months ended december 31 , 2012 , primarily due to write-off of parts purchased during the year for the assembly of masct system , which was determined at zero net realizable value as a result of lower of cost or market analysis performed at december 31 , 2012. our masct system is currently sold at a price substantially lower than its cost to encourage sales and because the masct system is currently manufactured by our suppliers only in small quantities . for these reasons , the manufacturing cost allocated to each inventory unit is high . for 2012 , total operating expenses were $ 5,485,243 , consisting of g & a expenses of $ 5,018,422 and selling expenses of $ 466,821 , which included $ 55,282 of cost of forecyte and arguscyte testing specimen collection kits that were immediately expensed upon purchase during the quarter . during the initial marketing phase , the company has decided to distribute the kits to customers at no cost and bundle them with the masct system and has not intended to deem the kits as a primary product line due to their nominal cost and value per unit . the selling expenses also included $ 266,698 in salaries and $ 114,822 in advertising . the g & a expenses consisted primarily of $ 350,914 in salaries and bonus expense , $ 1,072,992 in legal expense , $ 229,838 in consulting expense , $ 232,291 in accounting expense , $ 40,868 in travel expense , $ 86,489 in payroll taxes , $ 166,614 in professional fees , $ 84,624 in health insurance expense and $ 113,400 in business insurance . also included in g & a expense is $ 1,976,638 in research and development expense , consisting primarily of $ 645,901 in salaries and bonus expense , $ 246,950 in rent expense , $ 27,853 in laboratory supplies , $ 130,040 in masct system development , $ 244,203 in masct system service development , $ 489,778 in ductal lavage product development , $ 39,789 in ductal lavage service development and $ 34,649 in circulating tumor cells service development . 45 comparison of the twelve months ended december 31 , 2012 and 2011 revenue and cost of goods sold . for the twelve months ended december 31 , 2012 , we had total revenue of $ 481,842 , consisting of $ 6,440 product revenue from sales of masct systems and $ 475,402 diagnostic testing service revenue from our forecyte and arguscyte testing services performed . this compares to total revenue of $ 1,500 for the twelve months ended december 31 , 2011. total cost of goods sold was $ 5,164 and consisted of $ 4,158 in direct costs related to the production of the masct systems which were sold , and $ 1,006 in costs of goods sold for items expensed when purchased . since the inventory of masct system was recorded at zero net realizable value as a result of the lower of cost or market analysis performed at december 31 , 2011 , no corresponding cost of goods sold was recorded for the sales of masct system for the twelve months ended december 31 , 2012. gross profit for the twelve months ended december 31 , 2012 was $ 416,213 for the diagnostic testing service and $ 6,440 for the product sales of masct system with no corresponding cost of goods sold . this compares to gross profit of ( $ 95,690 ) for the twelve months ended december 31 , 2011. loss on reduction of inventory to lower of cost or market was $ 29,884 for the twelve months ended december 31 , 2012 , primarily due to write-off of parts purchased during the year for the assembly of masct system which was determined at zero net realizable value as a result of lower of cost or market analysis at december 31 , 2011 and december 31 , 2012. our masct system is currently sold at a price substantially lower than its cost to encourage sales and because the masct system is currently manufactured by our suppliers only in small quantities . for these reasons , the manufacturing cost allocated to each inventory unit is high . as discussed below , we expect that our r & d and g & a expenses will continue to increase in the foreseeable future , and that if we successfully launch the masct system and our related laboratory service offerings , we would also begin to incur sales and marketing expenses as we build a regional , and ultimately national , sales force . we may limit our fixed sales and marketing costs initially by using third party distributors and employing temporary workers or those who are compensated on a commission basis . however , we expect our expenditures to increase significantly in future periods . operating expenses . total operating expenses were $ 5,485,243 for the twelve months ended december 31 , 2012 , consisting of g & a expenses of $ 5,018,422 and selling expenses of $ 466,821 , which included $ 55,282 of cost of forecyte and arguscyte testing specimen collection kits that were immediately expensed upon purchase

