due to the robust results at week 12 , we decided to amend the protocol to include an ad hoc visit at 20 weeks and called all subjects to come back in for a visit ; 97 patients returned . at week twenty , 50 % of patients in the kellgren-lawrence grades of 3 and 4 ( severe osteoarthritis ) had improvement of 40 % or more in the womac a pain scale compared to 25 % in the vehicle control group ( p=0.04 ) . patients were also classified as responders if they achieved 40 % or greater improvement in pain , womac a , and function , womac c , at and over 20 weeks after a single intra-articular injection into the knee . in these same grade 3 and 4 patients , there was a statistically significant improvement in pain , womac a , compared to the vehicle control both at week 20 ( p=0.02 ) and over the whole period of 20 weeks ( p=0.005 ) . also in these same grade 3 and 4 patients , there was a statistically significant improvement in function , womac c , compared to vehicle control both at week 20 ( p=0.05 ) and over the whole period of 20 weeks ( p=0.04 ) . step trial on january 13 , 2014 , we announced the first patient injection in the phase iii clinical trial of ampion for the treatment of osteoarthritis of the knee . the phase iii step study enrolled 538 patients and the primary endpoint was reduction in pain for patients treated with ampion compared to vehicle control at 12 weeks . step was a randomized , placebo-controlled , double-blind study in which patients with osteoarthritis knee pain were randomized to receive either a 4 ml single injection of ampion or saline control . the clinical effects of treatment on osteoarthritic pain were evaluated during clinic visits at 6 , 12 , and 20 weeks using womac osteoarthritis index and the patient global assessment . safety was assessed by recording adverse events , concomitant medications , physical examination , vital signs and clinical laboratory tests . despite significant efforts that were successfully implemented in other studies , there was a break down in temperature management during the distribution process of the step study . based upon this deviation , the product efficacy data for the bla will be drawn from the spring and multiple injection studies . ongoing clinical trials strut trial on june 30 , 2014 , we announced the beginning of a multiple injection study , the strut study , at a single site for patients with mostly severe or very severe osteoarthritis of the knee . the study is comprised of two phases ; phase i is an open-label , 7 patient , single center trial to analyze the safety of 4ml multiple injections ( baseline , week 2 and week 4 ) and phase ii is a randomized , 40 patient , single center trial to analyze the efficacy and safety of multiple injections ( baseline , week 2 and week 4 ) . phase ii of the strut study would only commence after safety review of the phase i trial results at 4 weeks . on august 5 , 2014 , we reported no serious drug related adverse events were reported in phase i of the strut study and a 65 % improvement in pain ( womac a pain subscore improved from 2.2 ( 0.55 ) to 0.8 ( 0.62 ) , mean difference 1.43 ( 0.406 ) p=0.001 ) was observed at one month post-injection . in addition , the function score of womac c improved by 74 % compared to baseline at 4 weeks . with these positive results , ampio proceeded with the randomized phase ii portion of the strut study . on october 16 , 2014 we announced that enrollment was complete for phase ii of the strut study . on december 1 , 2014 , we announced the results from the phase i open label portion of the study at 20 weeks . the primary endpoint , womac a pain score , improved by 91.2 % from baseline to 20 weeks in the phase i open label portion of the study . additionally , the womac a mean ( sd ) significantly improved from 2.27 ( 0.59 ) at baseline , to 0.20 ( 0.23 ) at week 20 , mean difference ( 95 % ci ) -2.03 ( -2.83 , -1.23 ) , p=0.001 . the secondary endpoint measurement of stiffness , also improved significantly by 87 % from baseline at week 20 from mean ( sd ) of 2.75 ( 0.82 ) to 0.36 ( 0.48 ) , mean difference ( 95 % ci ) 2.33 ( -3.51 , -1.15 ) p=0.004 . the secondary endpoint of a validated measure of simple daily physical functions improved by 91.3 % from baseline at week 20 .this improvement was statistically significant , going from 2.32 ( 0.60 ) at baseline to 0.20 ( 0.34 ) at week 20 ; mean ( 95 % ci ) improvement of 2.09 ( -2.96 , -1.21 ) , p=0.002 . the 20 week data collection point from the phase ii randomized portion of the strut study will be completed in the first quarter of 2015. stride trial on october 16 , 2014 , we announced treatment had begun in the randomized ( 1:1 ) , vehicle controlled , multiple injection ( 4ml at baseline , week 2 and week 4 ) , multi-center stride study with 320 patients . on november 12 , 2014 , we announced that 320 patients had been enrolled and received at least the first injection in the stride study . story_separator_special_tag non-controlling interest in consolidated financial statements non-controlling interest is calculated based upon the investment made in the subsidiary and the percentage of ownership that investment gives the parent . non-controlling interest is reflected under equity . newly issued accounting pronouncements in may 2014 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) 2014-09 regarding accounting standards codification ( asc ) topic 606 , revenue from contracts with customers . the standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services . the guidance will be effective for our fiscal year beginning january 1 , 2017. early adoption is not permitted . we are currently evaluating the accounting , transition and disclosure requirements of the standard and can not currently estimate the financial statement impact of adoption . in june 2014 , the fasb issued asu 2014-10 , development stage entities ( topic 915 )  . the guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from gaap for development stage entities , primarily presentation of inception to date financial statements . the provisions of the amendments are effective for ampio 's calendar year 2015 ; however , early adoption is permitted and , accordingly , we elected to implement the guidance for our 2014 financial statements . in august 2014 , the fasb issued asu 2014-15 , presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern ( asu 2014-15 ) . asu 2014-15 is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to continue as a going concern and to provide related footnote disclosures . the amendments in this asu are effective for reporting periods beginning after december 15 , 2016 , with early adoption permitted . management is currently assessing the impact the adoption of asu 2014-15 will have on our financial statements . in january 2015 , the fasb issued asu 2015-01 , extraordinary and unusual items ( subtopic 225-20 ) : simplifying income statement presentation by eliminating the concept of extraordinary items. the purpose of this amendment is to eliminate the concept of extraordinary items . as a result , an entity will no longer be required to separately classify , present and disclose extraordinary events and transactions . the amendment is effective for annual reporting periods beginning after december 15 , 2015 and subsequent interim periods with early application permitted . management is currently assessing the impact the adoption of asu 2015-01 will have on our financial statements . error in classification patent costs were previously classified as research and development , however , it was determined that these costs were incorrectly classified and , therefore , have been reclassified as general and administrative expense for all periods presented . patent costs consist of legal and filing fees related to obtaining and maintaining patents and should have been excluded from research and development activities as set forth in the fasb 's accounting standards codification topic 730 , research and development . the impact of the correction of this error in classification decreased research and development expenses and correspondingly increased general and administrative expenses for the years ended december 31 , 2013 and 2012 by $ 1.7 million and $ 1.4 million , respectively . the correction of this error had no impact on our total operating expenses or our net loss for any periods presented . results of operationsyear ended december 31 , 2014 , 2013 and 2012 see notes to consolidated financial statements results of operations for the years ended december 31 , 2014 , 2013 and 2012 reflected losses of $ 38.1 million , $ 24.0 million and $ 11.6 million , respectively . these losses include non-cash charges related to stock-based compensation , depreciation and amortization expense , amortization of prepaid research and development-related party , common stock issued for services , derivative expense ( income ) , and loss on disposal of fixed assets totaling $ 8.6 million , $ 4.2 million and $ 1.5 million in 2014 , 2013 and 2012 respectively . based upon the stock options that have been issued in 2014 and 2013 , we would expect to continue to be above $ 5.0 million for stock compensation in 2015. we would also expect to see depreciation and amortization or prepaid research and development to increase in 2015 compared to 2014 as more assets start to depreciate in 2015 from our build out of the manufacturing facility and the full year of amortization of prepaid research and development . revenue we have not generated material revenue in our operating history . the $ 77,000 , $ 50,000 and $ 50,000 license revenue recognized during 2014 , 2013 and 2012 , respectively , represents the amortization of the upfront payments received on our license agreements . from an agreement entered into in 2012 , the initial payment of $ 500,000 from the license agreement of zertane with a korean pharmaceutical company was deferred and is being recognized over 10 years . as well as from an agreement entered into in 2014 with a canadian-based supplier , the initial payment of $ 250,000 from the license agreement of zertane was deferred and is being recognized over seven years . 43 expenses research and development research and development costs consist of labor , stock-based compensation , clinical trials and sponsored research , consultants and sponsored research  related party . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended december 31 , 2014 and 2013 research and development expenses increased $ 10,327,000 , or 62 % , in 2014

net cash used in operating activities during 2014 , our operating activities used $ 30.7 million in cash . the use of cash was $ 8.3 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization . cash provided in operating activities also included a $ 1,020,000 increase in accounts payable and $ 721,000 increase in deferred rent which were offset by increased prepaid research and development related party of $ 1,340,000 and prepaid expense of $ 541,000. during 2013 , our operating activities used approximately $ 19.1 million in cash . the use of cash was $ 5.4 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization , derivative expense and non-cash deferred revenue . net cash provided in operating activities also included a $ 522,000 increase in accrued compensation and $ 699,000 increase in accounts payable . during 2012 our operating activities used approximately $ 9.7 million in cash . the use of cash was $ 1.9 million lower than the net loss due to non-cash charges for stock-based compensation , depreciation and amortization and also non-cash deferred revenue and derivative income . net cash used in operating activities also included a $ 122,000 increase in prepaid expenses and cash provided by a $ 571,000 increase in accounts payable . net cash used in investing activities during 2014 , cash was used to acquire fixed assets which consists of the purchase of machinery and build out related to the in process manufacturing facility/clean room . during 2013 , cash was used to acquire orp patents on behalf of luoxis  see note 3  formation of subsidiaries . fixed assets reflect purchases of machinery related to the in process manufacturing facility/clean room , a new server , a lab scope and a luoxis orp manufacturing device . during 2012 , cash was used for the payment of a deposit for our prior facility lease .


 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.
     ```net cash used in operating activities during 2014 , our operating activities used $ 30.7 million in cash . the use of cash was $ 8.3 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization . cash provided in operating activities also included a $ 1,020,000 increase in accounts payable and $ 721,000 increase in deferred rent which were offset by increased prepaid research and development related party of $ 1,340,000 and prepaid expense of $ 541,000. during 2013 , our operating activities used approximately $ 19.1 million in cash . the use of cash was $ 5.4 million lower than the net loss due primarily to non-cash charges for stock-based compensation , depreciation and amortization , derivative expense and non-cash deferred revenue . net cash provided in operating activities also included a $ 522,000 increase in accrued compensation and $ 699,000 increase in accounts payable . during 2012 our operating activities used approximately $ 9.7 million in cash . the use of cash was $ 1.9 million lower than the net loss due to non-cash charges for stock-based compensation , depreciation and amortization and also non-cash deferred revenue and derivative income . net cash used in operating activities also included a $ 122,000 increase in prepaid expenses and cash provided by a $ 571,000 increase in accounts payable . net cash used in investing activities during 2014 , cash was used to acquire fixed assets which consists of the purchase of machinery and build out related to the in process manufacturing facility/clean room . during 2013 , cash was used to acquire orp patents on behalf of luoxis  see note 3  formation of subsidiaries . fixed assets reflect purchases of machinery related to the in process manufacturing facility/clean room , a new server , a lab scope and a luoxis orp manufacturing device . during 2012 , cash was used for the payment of a deposit for our prior facility lease .
```    
 Suspicious Activity Report : due to the robust results at week 12 , we decided to amend the protocol to include an ad hoc visit at 20 weeks and called all subjects to come back in for a visit ; 97 patients returned . at week twenty , 50 % of patients in the kellgren-lawrence grades of 3 and 4 ( severe osteoarthritis ) had improvement of 40 % or more in the womac a pain scale compared to 25 % in the vehicle control group ( p=0.04 ) . patients were also classified as responders if they achieved 40 % or greater improvement in pain , womac a , and function , womac c , at and over 20 weeks after a single intra-articular injection into the knee . in these same grade 3 and 4 patients , there was a statistically significant improvement in pain , womac a , compared to the vehicle control both at week 20 ( p=0.02 ) and over the whole period of 20 weeks ( p=0.005 ) . also in these same grade 3 and 4 patients , there was a statistically significant improvement in function , womac c , compared to vehicle control both at week 20 ( p=0.05 ) and over the whole period of 20 weeks ( p=0.04 ) . step trial on january 13 , 2014 , we announced the first patient injection in the phase iii clinical trial of ampion for the treatment of osteoarthritis of the knee . the phase iii step study enrolled 538 patients and the primary endpoint was reduction in pain for patients treated with ampion compared to vehicle control at 12 weeks . step was a randomized , placebo-controlled , double-blind study in which patients with osteoarthritis knee pain were randomized to receive either a 4 ml single injection of ampion or saline control . the clinical effects of treatment on osteoarthritic pain were evaluated during clinic visits at 6 , 12 , and 20 weeks using womac osteoarthritis index and the patient global assessment . safety was assessed by recording adverse events , concomitant medications , physical examination , vital signs and clinical laboratory tests . despite significant efforts that were successfully implemented in other studies , there was a break down in temperature management during the distribution process of the step study . based upon this deviation , the product efficacy data for the bla will be drawn from the spring and multiple injection studies . ongoing clinical trials strut trial on june 30 , 2014 , we announced the beginning of a multiple injection study , the strut study , at a single site for patients with mostly severe or very severe osteoarthritis of the knee . the study is comprised of two phases ; phase i is an open-label , 7 patient , single center trial to analyze the safety of 4ml multiple injections ( baseline , week 2 and week 4 ) and phase ii is a randomized , 40 patient , single center trial to analyze the efficacy and safety of multiple injections ( baseline , week 2 and week 4 ) . phase ii of the strut study would only commence after safety review of the phase i trial results at 4 weeks . on august 5 , 2014 , we reported no serious drug related adverse events were reported in phase i of the strut study and a 65 % improvement in pain ( womac a pain subscore improved from 2.2 ( 0.55 ) to 0.8 ( 0.62 ) , mean difference 1.43 ( 0.406 ) p=0.001 ) was observed at one month post-injection . in addition , the function score of womac c improved by 74 % compared to baseline at 4 weeks . with these positive results , ampio proceeded with the randomized phase ii portion of the strut study . on october 16 , 2014 we announced that enrollment was complete for phase ii of the strut study . on december 1 , 2014 , we announced the results from the phase i open label portion of the study at 20 weeks . the primary endpoint , womac a pain score , improved by 91.2 % from baseline to 20 weeks in the phase i open label portion of the study . additionally , the womac a mean ( sd ) significantly improved from 2.27 ( 0.59 ) at baseline , to 0.20 ( 0.23 ) at week 20 , mean difference ( 95 % ci ) -2.03 ( -2.83 , -1.23 ) , p=0.001 . the secondary endpoint measurement of stiffness , also improved significantly by 87 % from baseline at week 20 from mean ( sd ) of 2.75 ( 0.82 ) to 0.36 ( 0.48 ) , mean difference ( 95 % ci ) 2.33 ( -3.51 , -1.15 ) p=0.004 . the secondary endpoint of a validated measure of simple daily physical functions improved by 91.3 % from baseline at week 20 .this improvement was statistically significant , going from 2.32 ( 0.60 ) at baseline to 0.20 ( 0.34 ) at week 20 ; mean ( 95 % ci ) improvement of 2.09 ( -2.96 , -1.21 ) , p=0.002 . the 20 week data collection point from the phase ii randomized portion of the strut study will be completed in the first quarter of 2015. stride trial on october 16 , 2014 , we announced treatment had begun in the randomized ( 1:1 ) , vehicle controlled , multiple injection ( 4ml at baseline , week 2 and week 4 ) , multi-center stride study with 320 patients . on november 12 , 2014 , we announced that 320 patients had been enrolled and received at least the first injection in the stride study . story_separator_special_tag non-controlling interest in consolidated financial statements non-controlling interest is calculated based upon the investment made in the subsidiary and the percentage of ownership that investment gives the parent . non-controlling interest is reflected under equity . newly issued accounting pronouncements in may 2014 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) 2014-09 regarding accounting standards codification ( asc ) topic 606 , revenue from contracts with customers . the standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services . the guidance will be effective for our fiscal year beginning january 1 , 2017. early adoption is not permitted . we are currently evaluating the accounting , transition and disclosure requirements of the standard and can not currently estimate the financial statement impact of adoption . in june 2014 , the fasb issued asu 2014-10 , development stage entities ( topic 915 )  . the guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from gaap for development stage entities , primarily presentation of inception to date financial statements . the provisions of the amendments are effective for ampio 's calendar year 2015 ; however , early adoption is permitted and , accordingly , we elected to implement the guidance for our 2014 financial statements . in august 2014 , the fasb issued asu 2014-15 , presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern ( asu 2014-15 ) . asu 2014-15 is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to continue as a going concern and to provide related footnote disclosures . the amendments in this asu are effective for reporting periods beginning after december 15 , 2016 , with early adoption permitted . management is currently assessing the impact the adoption of asu 2014-15 will have on our financial statements . in january 2015 , the fasb issued asu 2015-01 , extraordinary and unusual items ( subtopic 225-20 ) : simplifying income statement presentation by eliminating the concept of extraordinary items. the purpose of this amendment is to eliminate the concept of extraordinary items . as a result , an entity will no longer be required to separately classify , present and disclose extraordinary events and transactions . the amendment is effective for annual reporting periods beginning after december 15 , 2015 and subsequent interim periods with early application permitted . management is currently assessing the impact the adoption of asu 2015-01 will have on our financial statements . error in classification patent costs were previously classified as research and development , however , it was determined that these costs were incorrectly classified and , therefore , have been reclassified as general and administrative expense for all periods presented . patent costs consist of legal and filing fees related to obtaining and maintaining patents and should have been excluded from research and development activities as set forth in the fasb 's accounting standards codification topic 730 , research and development . the impact of the correction of this error in classification decreased research and development expenses and correspondingly increased general and administrative expenses for the years ended december 31 , 2013 and 2012 by $ 1.7 million and $ 1.4 million , respectively . the correction of this error had no impact on our total operating expenses or our net loss for any periods presented . results of operationsyear ended december 31 , 2014 , 2013 and 2012 see notes to consolidated financial statements results of operations for the years ended december 31 , 2014 , 2013 and 2012 reflected losses of $ 38.1 million , $ 24.0 million and $ 11.6 million , respectively . these losses include non-cash charges related to stock-based compensation , depreciation and amortization expense , amortization of prepaid research and development-related party , common stock issued for services , derivative expense ( income ) , and loss on disposal of fixed assets totaling $ 8.6 million , $ 4.2 million and $ 1.5 million in 2014 , 2013 and 2012 respectively . based upon the stock options that have been issued in 2014 and 2013 , we would expect to continue to be above $ 5.0 million for stock compensation in 2015. we would also expect to see depreciation and amortization or prepaid research and development to increase in 2015 compared to 2014 as more assets start to depreciate in 2015 from our build out of the manufacturing facility and the full year of amortization of prepaid research and development . revenue we have not generated material revenue in our operating history . the $ 77,000 , $ 50,000 and $ 50,000 license revenue recognized during 2014 , 2013 and 2012 , respectively , represents the amortization of the upfront payments received on our license agreements . from an agreement entered into in 2012 , the initial payment of $ 500,000 from the license agreement of zertane with a korean pharmaceutical company was deferred and is being recognized over 10 years . as well as from an agreement entered into in 2014 with a canadian-based supplier , the initial payment of $ 250,000 from the license agreement of zertane was deferred and is being recognized over seven years . 43 expenses research and development research and development costs consist of labor , stock-based compensation , clinical trials and sponsored research , consultants and sponsored research  related party . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended december 31 , 2014 and 2013 research and development expenses increased $ 10,327,000 , or 62 % , in 2014

