thus , you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements . you should carefully review and consider the various disclosures we make in this report and our other reports filed with the securities and exchange commission that attempt to advise interested parties of the risks , uncertainties and other factors that may affect our business . all of the company 's future products that are currently being developed are based on its patented dual path platform ( dpp® ) , which is a unique diagnostic point-of-care platform that has certain advantages over lateral flow technology . the company has completed development of several products that employ the dpp® technology which are currently marketed under chembio 's label ( dpp® hiv 1/2 screening assay and dpp® hiv 1/2 –syphilis assay ) , or which may be marketed pursuant to private label license or distribution agreements such as those with the oswaldo cruz foundation ( `` fiocruz `` ) , labtest , rvr and bio-rad . research and development ( `` r & d `` ) , milestone , and grant and royalty revenues for the year ended december 31 , 2014 decreased to $ 1,696,000 from $ 2,034,000 in the prior-year , which was the result of a winding down of grants in 2014 over 2013. r & d expenses in the year of 2014 were $ 4.83 million , compared with $ 5.83 million in the prior-year . research & development activities ebola point-of-care ( poc ) test : in october 2014 , we signed an agreement with integrated biotherapeutics , inc. ( ibt ) , to develop , validate , and commercialize a poc ebola assay for the diagnostic market . this work involves applying ibt 's ebola reagents with chembio 's proprietary dpp® technology to generate a multiplexed unitary assay to diagnose ebola , including the potential of a febrile illness multiplex test for expanded applications . the outcome of preliminary feasibility testing is encouraging . we are working closely with the cdc laboratory in atlanta , ga , and estimate we will have product available for field evaluation in 2q of 2015. additionally , we have applied for pre-qualification application to world health organization ( who ) as well as emergency use authorization ( eua ) with the fda . we continue to seek funding for this project to accelerate development and potential supply . cancer poc test : we have entered into a partnership with an international diagnostics company to develop a poc diagnostic test for the early detection and monitoring of a specific type of cancer . the cancer project represents the first application of the dpp ® technology outside of the infectious disease field , as announced in october 2014. this scope of the agreement involves product development of an existing assay , utilizing chembio 's dpp® technology . the goal is to optimize the existing lateral flow assay design , conduct verification and validation studies , and to produce pilot lots to support preclinical studies . under the terms of the agreement , neither chembio 's partner nor the specific type of cancer is being disclosed . dpp® hiv-syphilis : we have developed and launched a version of this product for international sale . studies have been initiated to evaluate a version of this test that has been developed for the us market , to meet the performance requirements for a combination test to detect both hiv and syphilis , including a `` reverse `` algorithm that is currently in clinical use in the united states for syphilis testing . dpp® dengue development : based on our 2013 experience developing a dpp ® febrile illness assay in partnership with a u.s. government agency , we signed an agreement to develop a stand-alone dpp ® dengue fever assay which would be able to detect igg/igm and ns1 antigens . the goal is to conduct verification and validation studies , as well as produce pilot lots , to support preclinical studies . under the terms of the agreement , chembio 's partner is not being disclosed . dpp® flu immunostatus assay – the company entered into a follow-on , milestone-based development agreement in november 2014 with a private contracting organization acting on behalf of the united states centers for disease control and prevention ( cdc ) , for a multiplex poc influenza immunity test utilizing chembio 's patented dual path platform ( dpp ® ) technology . dpp® brain injury test : chembio entered into an agreement with the concussion science group ( csg ) division of perseus science group llc , to utilize chembio 's patented dpp ® technology to develop a poc diagnostic test for traumatic brain injury ( tbi ) , including sports-related concussion . under terms of the agreement , csg 's patented biomarker will be combined with chembio 's proprietary dpp ® platform to develop a semi-quantitative or quantitative point-of-care test to diagnose tbi . csg has agreed to pay chembio milestone development payments during 2015. dpp ® malaria poc rapid test : chembio was awarded a grant from the bill & melinda gates foundation in january 2015 to expedite the feasibility testing and development of a dpp ® malaria poc rapid diagnostic to accurately identify individuals infected with plasmodium falciparum parasite . chembio 's dpp ® technology was selected for this grant due to its exceptional sensitivity and potential to aid the foundation in its goal of eradicating malaria . to achieve this goal , diagnostics must be capable of detecting the malaria parasite in infected , but asymptomatic people . current poc rapid diagnostics tests lack sufficient sensitivity to identify all individuals with transmissible infections . story_separator_special_tag for the year ended december 31 , 2013 , the company charged $ 487,000 to income tax expense and reduced the deferred tax asset by $ 458,000. the effective tax rate used to recognize the benefit in 2014 was 26.6 % compared to a 47.8 % rate used in 2013 to record the amount charged . in both years non-deductible expenses for tax purposes accounted for most of the difference from the standard 34 % u.s. tax rate . the company maintains a full valuation allowance on research and development tax credits . material changes in financial condition replace_table_token_8_th cash decreased by $ 5,036,000 from december 31 , 2013 , primarily due to net cash used in operating activities for the year of 2014. in addition there were increases in accounts receivable , net of allowance , of $ 3,747,000 , inventories of $ 450,000 , fixed assets of $ 1,488,000 before depreciation , deposits and other assets of $ 202,000 and deferred taxes of $ 441,000. we experienced an increase in accounts payable and accrued liabilities of $ 637,000 and deferred revenue of $ 340,000. the increase in accounts receivable was primarily attributable to the higher amount of credit sales at the end of december 2014 versus december of 2013 as well as some extended terms granted to certain customers . the increase in inventories is due to an increase in a component used in our products while a vendor refurbishes their facility . the increase in fixed assets is primarily due to the new warehouse facility . the increase in deposits and other assets is due to additional rental deposits and related capitalized expenses . deferred tax asset increase is related to the provision for income tax benefit . 27 story_separator_special_tag smaller ; `` > ® hiv-syphilis assay was granted approval from the brazilian anvisa . recently , we submitted the dpp ® hiv-syphilis assay for evaluation by both the cdc , acting on behalf of the united states agency of international development , and the who , which has accepted this product to be evaluated for pre-qualification in its global procurement scheme . we believe 2015 will mark a number of significant events for the company , including further development of the newly-formed u.s. sales team , the ex-us commercial expansion of the dpp ® hiv-syphilis assay , the pursuit of a dpp ® hiv-syphilis assay for the u.s. market , and progress on key product development and research initiatives that will strengthen dpp ® as a branded platform technology . we are optimistic that , the strategy we implemented in 2014 will strengthen our base business in poc infectious disease testing , create new opportunities to leverage our patented dpp ® technology , advance our key development programs and commercial partnerships , and establish the foundation for a successful 2015 and beyond . 29 critical accounting policies and estimates the preparation of the financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ materially from those estimates . we believe that there are several accounting policies that are critical to understanding our historical and future performance , as these policies affect the reported amounts of revenue and the more significant areas involving management 's judgments and estimates . these significant accounting policies relate to revenue recognition , research and development costs , valuation of inventory , valuation of long-lived assets and income taxes . these policies , and the related procedures , are described in detail below . revenue recognition – we recognize revenue for product sales in accordance with asc 605 , revenue is recognized when there is persuasive evidence of an arrangement , delivery has occurred or services have been rendered , the sales price is determinable , and collectability is reasonably assured . revenue typically is recognized at time of shipment . sales are recorded net of discounts , rebates and returns . for certain contracts , we recognize revenue from r & d , milestone and grant revenues when earned . grants are invoiced after expenses are incurred . revenues from projects or grants funded in advance are deferred until earned . for certain collaborative research projects , we recognize revenue by defining milestones at the inception of the agreement and applying the milestone method of revenue recognition for relevant contracts . stock-based compensation – we recognize the fair value of equity-based awards as compensation expense in our statement of operations . the fair value of our stock option awards was estimated using a black-scholes option valuation model . this valuation model 's computations incorporate highly subjective assumptions , such as the expected stock price volatility and the estimated life of each award . the fair value of the options , after considering the effect of expected forfeitures , is then amortized , generally on a straight-line basis , over the related vesting period of the option . the fair value of our restricted shares is based on the market value of the shares at the date of grant and is recognized on a straight-line basis over the related vesting period of the award . research & development costs – research and development activities consist primarily of new product development , continuing engineering for existing products , regulatory and clinical trial costs . costs related to research and development efforts on existing or potential products are expensed as incurred . valuation of inventories – inventories are stated at the lower of cost or market , using the first-in , first-out method ( fifo ) to determine cost . our policy is to periodically evaluate the market value of the inventory and the stage of product life cycle , and record a reserve for any inventory considered slow moving or obsolete . for example , each additional 1 % of obsolete inventory would reduce

liquidity and capital resources replace_table_token_9_th the company 's cash decreased as of december 31 , 2014 by $ 5,036,000 from december 31 , 2013 , primarily due to net cash used in operating activities and investing activities for year of 2014. the cash used in operations in 2014 was $ 3,820,000 , primarily due to an increase in accounts receivable of $ 3,775,000 , an increase in inventories of $ 450,000 , an increase in other assets of $ 279,000 , a decrease in prepaid and other current assets of $ 33,000 , and a net loss net of non-cash items of $ 326,000 , partially offset by an increase in accounts payable and other accrued liabilities of $ 637,000 and an increase in deferred revenue of $ 340,000. net loss net of non-cash items includes net loss of $ 1,137,000 , $ 403,000 in benefit for income taxes , partially offset by $ 739,000 in depreciation and amortization , an increase in allowance for doubtful accounts of $ 28,000 , and $ 447,000 in share-based compensation . the use of cash from investing activities is primarily the purchase of fixed assets . the increase in cash from financing activities was proceeds from option exercises . fixed asset commitments as of december 31 , 2014 , the company had paid deposits on various pieces of equipment aggregating $ 20,000 which is reflected in other assets on the balance sheet . the company is further committed to additional equipment-purchase obligation of $ 9,000 as various milestones are achieved by the various vendors . 28 recent developments and chembio 's plan of operations for the next twelve months during 2014 , chembio began executing a strategy designed to position the company for future growth . this strategy impacts the entire chembio business , including commercial operations , manufacturing operations , product development , research collaborations , and regulatory affairs . our first step took place in april 2014 , when we made an important decision to terminate our existing u.s. hiv 1/2 stat-pak ® distribution agreement in june 2014. we then established the first ever chembio u.s. sales and marketing team .


 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 replace_table_token_9_th the company 's cash decreased as of december 31 , 2014 by $ 5,036,000 from december 31 , 2013 , primarily due to net cash used in operating activities and investing activities for year of 2014. the cash used in operations in 2014 was $ 3,820,000 , primarily due to an increase in accounts receivable of $ 3,775,000 , an increase in inventories of $ 450,000 , an increase in other assets of $ 279,000 , a decrease in prepaid and other current assets of $ 33,000 , and a net loss net of non-cash items of $ 326,000 , partially offset by an increase in accounts payable and other accrued liabilities of $ 637,000 and an increase in deferred revenue of $ 340,000. net loss net of non-cash items includes net loss of $ 1,137,000 , $ 403,000 in benefit for income taxes , partially offset by $ 739,000 in depreciation and amortization , an increase in allowance for doubtful accounts of $ 28,000 , and $ 447,000 in share-based compensation . the use of cash from investing activities is primarily the purchase of fixed assets . the increase in cash from financing activities was proceeds from option exercises . fixed asset commitments as of december 31 , 2014 , the company had paid deposits on various pieces of equipment aggregating $ 20,000 which is reflected in other assets on the balance sheet . the company is further committed to additional equipment-purchase obligation of $ 9,000 as various milestones are achieved by the various vendors . 28 recent developments and chembio 's plan of operations for the next twelve months during 2014 , chembio began executing a strategy designed to position the company for future growth . this strategy impacts the entire chembio business , including commercial operations , manufacturing operations , product development , research collaborations , and regulatory affairs . our first step took place in april 2014 , when we made an important decision to terminate our existing u.s. hiv 1/2 stat-pak ® distribution agreement in june 2014. we then established the first ever chembio u.s. sales and marketing team .
```    
 Suspicious Activity Report : thus , you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements . you should carefully review and consider the various disclosures we make in this report and our other reports filed with the securities and exchange commission that attempt to advise interested parties of the risks , uncertainties and other factors that may affect our business . all of the company 's future products that are currently being developed are based on its patented dual path platform ( dpp® ) , which is a unique diagnostic point-of-care platform that has certain advantages over lateral flow technology . the company has completed development of several products that employ the dpp® technology which are currently marketed under chembio 's label ( dpp® hiv 1/2 screening assay and dpp® hiv 1/2 –syphilis assay ) , or which may be marketed pursuant to private label license or distribution agreements such as those with the oswaldo cruz foundation ( `` fiocruz `` ) , labtest , rvr and bio-rad . research and development ( `` r & d `` ) , milestone , and grant and royalty revenues for the year ended december 31 , 2014 decreased to $ 1,696,000 from $ 2,034,000 in the prior-year , which was the result of a winding down of grants in 2014 over 2013. r & d expenses in the year of 2014 were $ 4.83 million , compared with $ 5.83 million in the prior-year . research & development activities ebola point-of-care ( poc ) test : in october 2014 , we signed an agreement with integrated biotherapeutics , inc. ( ibt ) , to develop , validate , and commercialize a poc ebola assay for the diagnostic market . this work involves applying ibt 's ebola reagents with chembio 's proprietary dpp® technology to generate a multiplexed unitary assay to diagnose ebola , including the potential of a febrile illness multiplex test for expanded applications . the outcome of preliminary feasibility testing is encouraging . we are working closely with the cdc laboratory in atlanta , ga , and estimate we will have product available for field evaluation in 2q of 2015. additionally , we have applied for pre-qualification application to world health organization ( who ) as well as emergency use authorization ( eua ) with the fda . we continue to seek funding for this project to accelerate development and potential supply . cancer poc test : we have entered into a partnership with an international diagnostics company to develop a poc diagnostic test for the early detection and monitoring of a specific type of cancer . the cancer project represents the first application of the dpp ® technology outside of the infectious disease field , as announced in october 2014. this scope of the agreement involves product development of an existing assay , utilizing chembio 's dpp® technology . the goal is to optimize the existing lateral flow assay design , conduct verification and validation studies , and to produce pilot lots to support preclinical studies . under the terms of the agreement , neither chembio 's partner nor the specific type of cancer is being disclosed . dpp® hiv-syphilis : we have developed and launched a version of this product for international sale . studies have been initiated to evaluate a version of this test that has been developed for the us market , to meet the performance requirements for a combination test to detect both hiv and syphilis , including a `` reverse `` algorithm that is currently in clinical use in the united states for syphilis testing . dpp® dengue development : based on our 2013 experience developing a dpp ® febrile illness assay in partnership with a u.s. government agency , we signed an agreement to develop a stand-alone dpp ® dengue fever assay which would be able to detect igg/igm and ns1 antigens . the goal is to conduct verification and validation studies , as well as produce pilot lots , to support preclinical studies . under the terms of the agreement , chembio 's partner is not being disclosed . dpp® flu immunostatus assay – the company entered into a follow-on , milestone-based development agreement in november 2014 with a private contracting organization acting on behalf of the united states centers for disease control and prevention ( cdc ) , for a multiplex poc influenza immunity test utilizing chembio 's patented dual path platform ( dpp ® ) technology . dpp® brain injury test : chembio entered into an agreement with the concussion science group ( csg ) division of perseus science group llc , to utilize chembio 's patented dpp ® technology to develop a poc diagnostic test for traumatic brain injury ( tbi ) , including sports-related concussion . under terms of the agreement , csg 's patented biomarker will be combined with chembio 's proprietary dpp ® platform to develop a semi-quantitative or quantitative point-of-care test to diagnose tbi . csg has agreed to pay chembio milestone development payments during 2015. dpp ® malaria poc rapid test : chembio was awarded a grant from the bill & melinda gates foundation in january 2015 to expedite the feasibility testing and development of a dpp ® malaria poc rapid diagnostic to accurately identify individuals infected with plasmodium falciparum parasite . chembio 's dpp ® technology was selected for this grant due to its exceptional sensitivity and potential to aid the foundation in its goal of eradicating malaria . to achieve this goal , diagnostics must be capable of detecting the malaria parasite in infected , but asymptomatic people . current poc rapid diagnostics tests lack sufficient sensitivity to identify all individuals with transmissible infections . story_separator_special_tag for the year ended december 31 , 2013 , the company charged $ 487,000 to income tax expense and reduced the deferred tax asset by $ 458,000. the effective tax rate used to recognize the benefit in 2014 was 26.6 % compared to a 47.8 % rate used in 2013 to record the amount charged . in both years non-deductible expenses for tax purposes accounted for most of the difference from the standard 34 % u.s. tax rate . the company maintains a full valuation allowance on research and development tax credits . material changes in financial condition replace_table_token_8_th cash decreased by $ 5,036,000 from december 31 , 2013 , primarily due to net cash used in operating activities for the year of 2014. in addition there were increases in accounts receivable , net of allowance , of $ 3,747,000 , inventories of $ 450,000 , fixed assets of $ 1,488,000 before depreciation , deposits and other assets of $ 202,000 and deferred taxes of $ 441,000. we experienced an increase in accounts payable and accrued liabilities of $ 637,000 and deferred revenue of $ 340,000. the increase in accounts receivable was primarily attributable to the higher amount of credit sales at the end of december 2014 versus december of 2013 as well as some extended terms granted to certain customers . the increase in inventories is due to an increase in a component used in our products while a vendor refurbishes their facility . the increase in fixed assets is primarily due to the new warehouse facility . the increase in deposits and other assets is due to additional rental deposits and related capitalized expenses . deferred tax asset increase is related to the provision for income tax benefit . 27 story_separator_special_tag smaller ; `` > ® hiv-syphilis assay was granted approval from the brazilian anvisa . recently , we submitted the dpp ® hiv-syphilis assay for evaluation by both the cdc , acting on behalf of the united states agency of international development , and the who , which has accepted this product to be evaluated for pre-qualification in its global procurement scheme . we believe 2015 will mark a number of significant events for the company , including further development of the newly-formed u.s. sales team , the ex-us commercial expansion of the dpp ® hiv-syphilis assay , the pursuit of a dpp ® hiv-syphilis assay for the u.s. market , and progress on key product development and research initiatives that will strengthen dpp ® as a branded platform technology . we are optimistic that , the strategy we implemented in 2014 will strengthen our base business in poc infectious disease testing , create new opportunities to leverage our patented dpp ® technology , advance our key development programs and commercial partnerships , and establish the foundation for a successful 2015 and beyond . 29 critical accounting policies and estimates the preparation of the financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ materially from those estimates . we believe that there are several accounting policies that are critical to understanding our historical and future performance , as these policies affect the reported amounts of revenue and the more significant areas involving management 's judgments and estimates . these significant accounting policies relate to revenue recognition , research and development costs , valuation of inventory , valuation of long-lived assets and income taxes . these policies , and the related procedures , are described in detail below . revenue recognition – we recognize revenue for product sales in accordance with asc 605 , revenue is recognized when there is persuasive evidence of an arrangement , delivery has occurred or services have been rendered , the sales price is determinable , and collectability is reasonably assured . revenue typically is recognized at time of shipment . sales are recorded net of discounts , rebates and returns . for certain contracts , we recognize revenue from r & d , milestone and grant revenues when earned . grants are invoiced after expenses are incurred . revenues from projects or grants funded in advance are deferred until earned . for certain collaborative research projects , we recognize revenue by defining milestones at the inception of the agreement and applying the milestone method of revenue recognition for relevant contracts . stock-based compensation – we recognize the fair value of equity-based awards as compensation expense in our statement of operations . the fair value of our stock option awards was estimated using a black-scholes option valuation model . this valuation model 's computations incorporate highly subjective assumptions , such as the expected stock price volatility and the estimated life of each award . the fair value of the options , after considering the effect of expected forfeitures , is then amortized , generally on a straight-line basis , over the related vesting period of the option . the fair value of our restricted shares is based on the market value of the shares at the date of grant and is recognized on a straight-line basis over the related vesting period of the award . research & development costs – research and development activities consist primarily of new product development , continuing engineering for existing products , regulatory and clinical trial costs . costs related to research and development efforts on existing or potential products are expensed as incurred . valuation of inventories – inventories are stated at the lower of cost or market , using the first-in , first-out method ( fifo ) to determine cost . our policy is to periodically evaluate the market value of the inventory and the stage of product life cycle , and record a reserve for any inventory considered slow moving or obsolete . for example , each additional 1 % of obsolete inventory would reduce

