general and administrative expenses : general and administrative expenses increased by $ 1,600,000 , or 525 % , to $ 1,905,000 in 2014 from $ 305,000 in 2013. the company put an executive management team in place following the june 3 , 2014 business combination and reverse merger discussed above which represents approximately $ 576,000 of the 2014 expenses . the company incurred approximately $ 372,000 in financial advisory and investor relations expenses in 2014 , $ 215,000 of which were non-cash and paid with stock . a strategic advisory board was established in august 2014. the advisors will be compensated with stock at the end of their first year of service and $ 127,000 non-cash pro-rata expense has been recorded in 2014. accounting fees increased approximately $ 75,000 in 2014 , including the costs associated with the business combination and reverse merger . legal expense increased in 2014 by approximately $ 108,000 primarily related to the business combination and reverse merger events . the company invested $ 239,000 in marketing and promotions in 2014 , including marketing materials , media buys and marketing consultants . research and development costs of $ 142,000 were incurred in 2014 , primarily related to the watt tethered drone system . loss from operations : loss from operations for 2014 of $ 1,722,000 was an increase of $ 1,753,000 or ( 5,667 ) % over the income from operations in 2013 of $ 31,000 , which resulted primarily due to the decrease in gross profit of $ 153,000 and the increase in g & a expenses of $ 1,600,000. other income and expense : total other expenses of $ 401,000 in 2014 were $ 400,000 or 49,406 % greater than the total other expense of $ 1,000 in 2013. this increase is primarily due to a $ 351,000 non-cash expense for derivative accounting under asc 815-15 “ derivative and hedging ” and $ 43,000 loss on sale of securities held for resale . 22 net loss : net loss of $ 2,123,000 in 2014 was $ 2,153,000 or ( 7,150 ) % greater than the net income in 2013 of $ 30,000 primarily due to the factors previously discussed . there was no provision for income taxes for the fiscal years ended 2014 and 2013 due to a valuation allowance of $ 497,501 and $ 0 recorded for the years ended december 31 , 2014 and 2013 on the total tax provision , as we believed that it is more likely than not that the tax asset will not be utilized during the next year . liquidity and capital resources as of december 31 , 2014 , the company had total current assets of $ 1,489,639 and total current liabilities of $ 176,564 for working capital of $ 1,313,075. as of december 31 , 2014 , the company had cash and cash equivalents of $ 1,369,896 and an accumulated deficit of $ 2,163,408 since operations commenced in 2014. although there was a net loss of $ 2,123,490 in 2014 , the company 's independent registered public accounting firm 's audit report for the year ended december 31 , 2014 , included herein , did not contain a qualified opinion or an explanatory paragraph regarding the company 's ability to continue as a going concern . the accompanying financial statements have been prepared assuming that the company continues as a going concern and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the ability of the company to continue as a going concern on a long-term basis will be dependent upon its ability to create and market innovative services and to sustain adequate working capital to finance its operations . we have historically financed our operations through operating revenues and sales of equity securities to accredited investors . while we currently believe we have sufficient capital to continue our operations for the next 12 months , we may incur significant expenses . as a result , we could deplete our cash and working capital more rapidly than expected , which could result in our need to raise additional working capital through sale of equity securities or debt financing . story_separator_special_tag style= `` font-family : times new roman , times , serif `` > the company accounts for long-lived assets in accordance with the provisions of asc 360-10-35 , “ impairment or disposal of long-lived assets ” . this statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . no impairment charges were incurred during the periods ended december 31 , 2014 and 2013 . 24 the company accounts for goodwill and intangible assets in accordance with asc 350 `` intangibles goodwill and other `` . asc 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value . derivative financial instruments : the company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives . for derivative financial instruments that are accounted for as liabilities , the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date , with changes in the fair value reported in the statements of operations . for stock-based derivative financial instruments , the company uses a black-scholes option pricing model , in story_separator_special_tag general and administrative expenses : general and administrative expenses increased by $ 1,600,000 , or 525 % , to $ 1,905,000 in 2014 from $ 305,000 in 2013. the company put an executive management team in place following the june 3 , 2014 business combination and reverse merger discussed above which represents approximately $ 576,000 of the 2014 expenses . the company incurred approximately $ 372,000 in financial advisory and investor relations expenses in 2014 , $ 215,000 of which were non-cash and paid with stock . a strategic advisory board was established in august 2014. the advisors will be compensated with stock at the end of their first year of service and $ 127,000 non-cash pro-rata expense has been recorded in 2014. accounting fees increased approximately $ 75,000 in 2014 , including the costs associated with the business combination and reverse merger . legal expense increased in 2014 by approximately $ 108,000 primarily related to the business combination and reverse merger events . the company invested $ 239,000 in marketing and promotions in 2014 , including marketing materials , media buys and marketing consultants . research and development costs of $ 142,000 were incurred in 2014 , primarily related to the watt tethered drone system . loss from operations : loss from operations for 2014 of $ 1,722,000 was an increase of $ 1,753,000 or ( 5,667 ) % over the income from operations in 2013 of $ 31,000 , which resulted primarily due to the decrease in gross profit of $ 153,000 and the increase in g & a expenses of $ 1,600,000. other income and expense : total other expenses of $ 401,000 in 2014 were $ 400,000 or 49,406 % greater than the total other expense of $ 1,000 in 2013. this increase is primarily due to a $ 351,000 non-cash expense for derivative accounting under asc 815-15 “ derivative and hedging ” and $ 43,000 loss on sale of securities held for resale . 22 net loss : net loss of $ 2,123,000 in 2014 was $ 2,153,000 or ( 7,150 ) % greater than the net income in 2013 of $ 30,000 primarily due to the factors previously discussed . there was no provision for income taxes for the fiscal years ended 2014 and 2013 due to a valuation allowance of $ 497,501 and $ 0 recorded for the years ended december 31 , 2014 and 2013 on the total tax provision , as we believed that it is more likely than not that the tax asset will not be utilized during the next year . liquidity and capital resources as of december 31 , 2014 , the company had total current assets of $ 1,489,639 and total current liabilities of $ 176,564 for working capital of $ 1,313,075. as of december 31 , 2014 , the company had cash and cash equivalents of $ 1,369,896 and an accumulated deficit of $ 2,163,408 since operations commenced in 2014. although there was a net loss of $ 2,123,490 in 2014 , the company 's independent registered public accounting firm 's audit report for the year ended december 31 , 2014 , included herein , did not contain a qualified opinion or an explanatory paragraph regarding the company 's ability to continue as a going concern . the accompanying financial statements have been prepared assuming that the company continues as a going concern and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the ability of the company to continue as a going concern on a long-term basis will be dependent upon its ability to create and market innovative services and to sustain adequate working capital to finance its operations . we have historically financed our operations through operating revenues and sales of equity securities to accredited investors . while we currently believe we have sufficient capital to continue our operations for the next 12 months , we may incur significant expenses . as a result , we could deplete our cash and working capital more rapidly than expected , which could result in our need to raise additional working capital through sale of equity securities or debt financing . story_separator_special_tag style= `` font-family : times new roman , times , serif `` > the company accounts for long-lived assets in accordance with the provisions of asc 360-10-35 , “ impairment or disposal of long-lived assets ” . this statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . no impairment charges were incurred during the periods ended december 31 , 2014 and 2013 . 24 the company accounts for goodwill and intangible assets in accordance with asc 350 `` intangibles goodwill and other `` . asc 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value . derivative financial instruments : the company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives . for derivative financial instruments that are accounted for as liabilities , the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date , with changes in the fair value reported in the statements of operations . for stock-based derivative financial instruments , the company uses a black-scholes option pricing model , in

sources and uses of cash replace_table_token_2_th operating activities : net cash used in operating activities during the year ended december 31 , 2014 was approximately $ 1,302,000 , which was a decrease in operating cash flow of approximately $ 1,250,000 or ( 2,382 ) % from approximately $ ( 52,000 ) net cash used in operating activities during the year ended december 31 , 2013. the 2014 net loss of approximately $ 2,123,000 was $ 2,153,000 greater than the 2013 income of approximately $ 30,000 , and included approximately $ 43,000 loss on disposal of available-for-sale securities , $ 351,000 loss on derivative liability , and $ 342,000 value of shares issued for services . investing activities : net cash provided by investing activities during the year ended december 31 , 2014 was approximately $ 1,529,000 , which was an increase of approximately $ 1,529,000 or ( 100 ) % from approximately $ 0 net cash used in investing activities during the year ended december 31 , 2013. in 2014 , the company recognized approximately $ 1,693,000 cash from the reverse merger and $ 169,000 cash from sale of available-for-sale securities and spent approximately $ 28,000 on furniture and equipment . 23 financing activities : net cash provided by financing activities was approximately $ 1,143,000 in 2014 compared with approximately $ 0 cash provided by financing activities for the same period in 2013 , an increase of approximately $ 1,143,000 or ( 100 % ) . in 2014 , the company received approximately $ 823,000 cash proceeds from the series f convertible preferred stock financing as well as $ 17,000 cash proceeds from the exercise of series f warrants . the company redeemed $ 350,000 series b-1 convertible preferred stock during 2014. during 2014 , the company experienced negative cash flow from operations .


 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.
     ```sources and uses of cash replace_table_token_2_th operating activities : net cash used in operating activities during the year ended december 31 , 2014 was approximately $ 1,302,000 , which was a decrease in operating cash flow of approximately $ 1,250,000 or ( 2,382 ) % from approximately $ ( 52,000 ) net cash used in operating activities during the year ended december 31 , 2013. the 2014 net loss of approximately $ 2,123,000 was $ 2,153,000 greater than the 2013 income of approximately $ 30,000 , and included approximately $ 43,000 loss on disposal of available-for-sale securities , $ 351,000 loss on derivative liability , and $ 342,000 value of shares issued for services . investing activities : net cash provided by investing activities during the year ended december 31 , 2014 was approximately $ 1,529,000 , which was an increase of approximately $ 1,529,000 or ( 100 ) % from approximately $ 0 net cash used in investing activities during the year ended december 31 , 2013. in 2014 , the company recognized approximately $ 1,693,000 cash from the reverse merger and $ 169,000 cash from sale of available-for-sale securities and spent approximately $ 28,000 on furniture and equipment . 23 financing activities : net cash provided by financing activities was approximately $ 1,143,000 in 2014 compared with approximately $ 0 cash provided by financing activities for the same period in 2013 , an increase of approximately $ 1,143,000 or ( 100 % ) . in 2014 , the company received approximately $ 823,000 cash proceeds from the series f convertible preferred stock financing as well as $ 17,000 cash proceeds from the exercise of series f warrants . the company redeemed $ 350,000 series b-1 convertible preferred stock during 2014. during 2014 , the company experienced negative cash flow from operations .
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 Suspicious Activity Report : general and administrative expenses : general and administrative expenses increased by $ 1,600,000 , or 525 % , to $ 1,905,000 in 2014 from $ 305,000 in 2013. the company put an executive management team in place following the june 3 , 2014 business combination and reverse merger discussed above which represents approximately $ 576,000 of the 2014 expenses . the company incurred approximately $ 372,000 in financial advisory and investor relations expenses in 2014 , $ 215,000 of which were non-cash and paid with stock . a strategic advisory board was established in august 2014. the advisors will be compensated with stock at the end of their first year of service and $ 127,000 non-cash pro-rata expense has been recorded in 2014. accounting fees increased approximately $ 75,000 in 2014 , including the costs associated with the business combination and reverse merger . legal expense increased in 2014 by approximately $ 108,000 primarily related to the business combination and reverse merger events . the company invested $ 239,000 in marketing and promotions in 2014 , including marketing materials , media buys and marketing consultants . research and development costs of $ 142,000 were incurred in 2014 , primarily related to the watt tethered drone system . loss from operations : loss from operations for 2014 of $ 1,722,000 was an increase of $ 1,753,000 or ( 5,667 ) % over the income from operations in 2013 of $ 31,000 , which resulted primarily due to the decrease in gross profit of $ 153,000 and the increase in g & a expenses of $ 1,600,000. other income and expense : total other expenses of $ 401,000 in 2014 were $ 400,000 or 49,406 % greater than the total other expense of $ 1,000 in 2013. this increase is primarily due to a $ 351,000 non-cash expense for derivative accounting under asc 815-15 “ derivative and hedging ” and $ 43,000 loss on sale of securities held for resale . 22 net loss : net loss of $ 2,123,000 in 2014 was $ 2,153,000 or ( 7,150 ) % greater than the net income in 2013 of $ 30,000 primarily due to the factors previously discussed . there was no provision for income taxes for the fiscal years ended 2014 and 2013 due to a valuation allowance of $ 497,501 and $ 0 recorded for the years ended december 31 , 2014 and 2013 on the total tax provision , as we believed that it is more likely than not that the tax asset will not be utilized during the next year . liquidity and capital resources as of december 31 , 2014 , the company had total current assets of $ 1,489,639 and total current liabilities of $ 176,564 for working capital of $ 1,313,075. as of december 31 , 2014 , the company had cash and cash equivalents of $ 1,369,896 and an accumulated deficit of $ 2,163,408 since operations commenced in 2014. although there was a net loss of $ 2,123,490 in 2014 , the company 's independent registered public accounting firm 's audit report for the year ended december 31 , 2014 , included herein , did not contain a qualified opinion or an explanatory paragraph regarding the company 's ability to continue as a going concern . the accompanying financial statements have been prepared assuming that the company continues as a going concern and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the ability of the company to continue as a going concern on a long-term basis will be dependent upon its ability to create and market innovative services and to sustain adequate working capital to finance its operations . we have historically financed our operations through operating revenues and sales of equity securities to accredited investors . while we currently believe we have sufficient capital to continue our operations for the next 12 months , we may incur significant expenses . as a result , we could deplete our cash and working capital more rapidly than expected , which could result in our need to raise additional working capital through sale of equity securities or debt financing . story_separator_special_tag style= `` font-family : times new roman , times , serif `` > the company accounts for long-lived assets in accordance with the provisions of asc 360-10-35 , “ impairment or disposal of long-lived assets ” . this statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . no impairment charges were incurred during the periods ended december 31 , 2014 and 2013 . 24 the company accounts for goodwill and intangible assets in accordance with asc 350 `` intangibles goodwill and other `` . asc 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value . derivative financial instruments : the company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives . for derivative financial instruments that are accounted for as liabilities , the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date , with changes in the fair value reported in the statements of operations . for stock-based derivative financial instruments , the company uses a black-scholes option pricing model , in story_separator_special_tag general and administrative expenses : general and administrative expenses increased by $ 1,600,000 , or 525 % , to $ 1,905,000 in 2014 from $ 305,000 in 2013. the company put an executive management team in place following the june 3 , 2014 business combination and reverse merger discussed above which represents approximately $ 576,000 of the 2014 expenses . the company incurred approximately $ 372,000 in financial advisory and investor relations expenses in 2014 , $ 215,000 of which were non-cash and paid with stock . a strategic advisory board was established in august 2014. the advisors will be compensated with stock at the end of their first year of service and $ 127,000 non-cash pro-rata expense has been recorded in 2014. accounting fees increased approximately $ 75,000 in 2014 , including the costs associated with the business combination and reverse merger . legal expense increased in 2014 by approximately $ 108,000 primarily related to the business combination and reverse merger events . the company invested $ 239,000 in marketing and promotions in 2014 , including marketing materials , media buys and marketing consultants . research and development costs of $ 142,000 were incurred in 2014 , primarily related to the watt tethered drone system . loss from operations : loss from operations for 2014 of $ 1,722,000 was an increase of $ 1,753,000 or ( 5,667 ) % over the income from operations in 2013 of $ 31,000 , which resulted primarily due to the decrease in gross profit of $ 153,000 and the increase in g & a expenses of $ 1,600,000. other income and expense : total other expenses of $ 401,000 in 2014 were $ 400,000 or 49,406 % greater than the total other expense of $ 1,000 in 2013. this increase is primarily due to a $ 351,000 non-cash expense for derivative accounting under asc 815-15 “ derivative and hedging ” and $ 43,000 loss on sale of securities held for resale . 22 net loss : net loss of $ 2,123,000 in 2014 was $ 2,153,000 or ( 7,150 ) % greater than the net income in 2013 of $ 30,000 primarily due to the factors previously discussed . there was no provision for income taxes for the fiscal years ended 2014 and 2013 due to a valuation allowance of $ 497,501 and $ 0 recorded for the years ended december 31 , 2014 and 2013 on the total tax provision , as we believed that it is more likely than not that the tax asset will not be utilized during the next year . liquidity and capital resources as of december 31 , 2014 , the company had total current assets of $ 1,489,639 and total current liabilities of $ 176,564 for working capital of $ 1,313,075. as of december 31 , 2014 , the company had cash and cash equivalents of $ 1,369,896 and an accumulated deficit of $ 2,163,408 since operations commenced in 2014. although there was a net loss of $ 2,123,490 in 2014 , the company 's independent registered public accounting firm 's audit report for the year ended december 31 , 2014 , included herein , did not contain a qualified opinion or an explanatory paragraph regarding the company 's ability to continue as a going concern . the accompanying financial statements have been prepared assuming that the company continues as a going concern and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . the ability of the company to continue as a going concern on a long-term basis will be dependent upon its ability to create and market innovative services and to sustain adequate working capital to finance its operations . we have historically financed our operations through operating revenues and sales of equity securities to accredited investors . while we currently believe we have sufficient capital to continue our operations for the next 12 months , we may incur significant expenses . as a result , we could deplete our cash and working capital more rapidly than expected , which could result in our need to raise additional working capital through sale of equity securities or debt financing . story_separator_special_tag style= `` font-family : times new roman , times , serif `` > the company accounts for long-lived assets in accordance with the provisions of asc 360-10-35 , “ impairment or disposal of long-lived assets ” . this statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . no impairment charges were incurred during the periods ended december 31 , 2014 and 2013 . 24 the company accounts for goodwill and intangible assets in accordance with asc 350 `` intangibles goodwill and other `` . asc 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value . derivative financial instruments : the company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives . for derivative financial instruments that are accounted for as liabilities , the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date , with changes in the fair value reported in the statements of operations . for stock-based derivative financial instruments , the company uses a black-scholes option pricing model , in

