we worked closely with our core customers to supply product from existing inventory as a bridge to new supply . we evaluated the potential applications for our biopolymer products and narrowed our market development focus to certain high value market segments : ( i ) performance additives , including film and bag applications ; and ( ii ) functional biodegradation . in march 2012 , we began directly recording product sales and shipping product from inventory to our customers . during the second half of 2012 , we developed , sampled and launched a compostable film grade resin , and a polymeric modifier for polyvinyl chloride ( `` pvc `` ) . we also established metabolix gmbh , a subsidiary located in cologne , germany , to serve as a focal point for our commercial activities in europe . this location is intended to enable us to directly access the european market , which is the largest for bioplastics . during 2013 , we continued to use existing biopolymer inventory as well as biobased and biodegradable polymers sourced from third parties to continue developing the market and to supply new and existing customers . in the second half of 2013 , we broadened our offering of film resins with the launch of mvera b5010 , a certified compostable resin for film and bag applications , and the launch of mvera b5011 , a certified compostable film resin for film and bag applications requiring transparency . we also launched i6003rp , a new polymeric modifier and processing aid for recycled pvc . throughout 2013 , we worked closely with customers developing applications using our materials . during 2013 we also engaged in discussions and collaborations with potential customers and suppliers in asia to expand our relationships there . in july 2013 , we formalized a memorandum of understanding ( `` mou `` ) with samsung fine chemicals , a company based in south korea with complementary biopolymer products and complementary regional positioning to metabolix . under the mou , we each fund our respective costs separately , but work together with the goal of expanding the global market for biodegradable polymers . our mou with samsung also provides access to additional biodegradable polymers that we can use in resin formulations designed to deliver the best performance and value to targeted customer applications . the mou is not a binding commitment and may be terminated at any time by either party without liability or obligations to the other party . in 2014 , we plan to increase our efforts in the areas of performance additives based on phas . we also expect to build on the performance , biodegradability and biobased content attributes of our pha 45 biopolymers as we continue to develop biobased and biodegradable resins for film and bag applications and for functional biodegradation applications based on phas and other biodegradable materials . we will also continue to explore alternative options for biopolymer manufacturing with a supply chain properly sized to our business . in 2013 , we conducted due diligence on several potential manufacturing sites , and we expect to select a site in 2014. once our pha supply chain is fully established , this captive capacity combined with access to additional biobased and biodegradable materials sourced from third parties , will allow us to continue formulating proprietary high-performance solutions for our target segments . however , our present capital resources are not sufficient to fund our planned operations for a twelve month period . we will , during 2014 , require significant additional funding to continue our operations . based on our current plans and projections , which remain subject to numerous uncertainties , we anticipate raising $ 50-60 million over the next 12-15 months . the timing , structure and vehicles for obtaining this financing are under consideration and it may be accomplished in stages . although we can not guarantee the availability of financing , our goal is to use this capital to build an intermediate scale specialty materials business based on pha additives that serves as the foundation for our longer-range plans and the future growth of our business . failure to receive additional funding will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , research and development activities and other operations , and or seek strategic alternatives . biobased industrial chemicals platform . for our second platform , we are developing c4 and c3 chemicals from biobased sources , as opposed to the fossil fuels that are used to produce most industrial chemicals today . our process for creating biobased industrial c4 and c3 chemicals involves engineering metabolic pathways into microbes that , in a fermentation process , produce specific pha structures that serve as precursors for these chemicals . through our pha technology , we are able to control the microbe biology to achieve high concentrations of specific phas that accumulate inside cells as they metabolize sugars . this intracellular accumulation of the biopolymers inside the microbes is a unique and differentiating aspect of our technology . when the fermentation is completed , we use a novel internally developed recovery process known as `` fast `` ( fast-acting , selective thermolysis ) that converts the biopolymer directly to the target chemical using heat . in the c4 program , we have produced biobased gamma butyrolactone ( `` gbl `` ) at pilot scale and demonstrated a chemical profile that meets or exceeds the existing industrial specifications . in 2012 , we completed the preliminary design for a commercial scale plant to enable production of biobased gbl which , through an established conversion process , the biobased gbl can be further converted to biobased butanediol ( `` bdo `` ) . this plan , which could be implemented under a potential future collaboration , includes specifications for all of the components of our fermentation and recovery process . story_separator_special_tag during the twelve months ended december 31 , 2013 and 2012 , we also recognized $ 2,067 and $ 1,211 , respectively , related to the sale of biopolymer products . the increase of $ 856 for the twelve months ended december 31 , 2013 was primarily attributable to our implementation of our current product revenue recognition policy that resulted in a one-time shift of revenue , effectively pushing out sixty days of product revenue from 2012 to 2013. the company 's product revenue recognition policy is to defer product revenue recognition until the later of sixty days or cash receipt . at december 31 , 2013 and december 31 , 2012 , short-term deferred revenue on the company 's balance sheet included $ 537 and $ 786 of deferred product revenue , respectively . during the twelve months ended december 31 , 2013 , 52 we recognized $ 2,490 of grant revenue compared to $ 1,971 in 2012. the increase of $ 519 in grant revenue for the twelve months ended december 31 , 2013 was primarily attributable to new grants that commenced in 2013 , including $ 407 in grant revenue earned from our subcontracted award with the university of california ( los angeles ) and funded by the department of energy . during 2013 we recognized $ 618 in research and development revenue that was attributable to a funded research and development arrangement with a third party that completed during our fiscal quarter ended june 30 , 2013. during the twelve months ended december 31 , 2013 , we recognized $ 219 of license fee and royalty revenue and license and royalty revenue from related parties compared to $ 249 for the respective period in 2012. we anticipate that product revenue will increase in 2014 as we plan to continue to gain market acceptance for our products , although there will be fluctuations from quarter to quarter . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales . costs and expenses replace_table_token_7_th cost of product revenue cost of product revenue was $ 3,026 and $ 1,426 for the twelve months ended december 31 , 2013 and 2012 , respectively . these costs primarily include the cost of inventory associated with product revenue recognized during the respective years . cost of product revenue also includes the cost of product inventory written down during the respective years due to impairment . we routinely evaluate inventory in order to determine whether its current book value is below the cash value we expect to realize from its sale . during the twelve months ended december 31 , 2013 and 2012 , we recorded charges of $ 818 and $ 138 to cost of product revenue for inventory that we determined was impaired . cost of product revenue for each year shown also includes the cost of sample inventory shipped to prospective customers , warehousing , product packaging and certain freight charges . although there will be fluctuations from period to period , we expect our overall cost of product revenue will continue to increase during the next twelve months , commensurate with our increasing product sales . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales and associated cost of product revenue . in addition , cost of product revenue will increase as our lower cost inventory acquired from telles is depleted and replaced with our new formulated high-performance products that have higher costs than the material acquired from telles . we may also incur costs to produce inventory at small scale commercial manufacturing operations either on our own or with third parties . due to the expected high per unit cost of these smaller scale manufacturing operations , any inventory costs in excess of our expected saleable market price will be immediately expensed as cost of product revenue . we also anticipate that our cost of product revenue as a percentage of product sales will fluctuate during the next twelve months as our sales mix of biopolymer products changes . 53 research and development expenses research and development expenses were $ 19,127 and $ 23,177 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 4,050 over fiscal 2012 was primarily attributable to decreases in material production costs , employee compensation and related benefit expenses , consulting , and depreciation expense . material production costs are primarily associated with our efforts to establish pilot manufacturing operations , including manufacturing of demonstration batches , for our biodegradable plastics and industrial chemicals products under development . expenses related to material production costs were $ 2,159 and $ 4,455 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 2,296 was primarily due to charges incurred during 2012 in connection with a terminated manufacturing demonstration agreement with a third party that were not repeated during 2013. employee compensation and related benefit expenses were $ 11,045 and $ 12,047 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 1,002 was primarily attributable to costs associated with our restructuring during the first quarter of 2012. consulting costs decreased to $ 156 from $ 539 for the twelve months ended december 31 , 2013 and 2012 , respectively . the reduction of $ 383 was primarily due to our completion of a research project in 2012 , as well as discontinued use of consultants for certain chemical projects in 2013. depreciation expense was $ 831 and $ 1,164 for the twelve months ended december 31 , 2013 and 2012 , respectively

liquidity and capital resources currently , we require cash to fund our working capital needs , to purchase capital assets and to pay our operating lease obligations . the primary sources of our liquidity have been : equity financing ; our former strategic alliance with adm ; government grants ; product revenues ; and interest earned on cash and short-term investments . we have incurred significant expenses relating to our research and development efforts . as a result , we have incurred net losses since our inception . as of december 31 , 2013 , we had an accumulated deficit of $ 272,538. our total unrestricted cash , cash equivalents and investments as of december 31 , 2013 were $ 19,209 as compared to $ 46,281 at december 31 , 2012. as of december 31 , 2013 , we had no outstanding debt . our cash and cash equivalents at december 31 , 2013 were held for working capital purposes . we do not enter into investments for trading or speculative purposes . the primary objective of our investment activities is to preserve our capital . as of december 31 , 2013 , we had restricted cash of $ 619. restricted cash consists of $ 494 held in connection with the lease agreement for our cambridge , massachusetts facility and $ 125 held in connection with our corporate credit card program . investments are made in accordance with our corporate investment policy , as approved by our board of directors . investments are limited to high quality corporate debt , u.s. treasury bills and notes , bank debt obligations , municipal debt obligations and asset-backed securities . the policy establishes maturity limits , concentration limits , and liquidity requirements . as of december 31 , 2013 , we were in compliance with this policy .


 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 currently , we require cash to fund our working capital needs , to purchase capital assets and to pay our operating lease obligations . the primary sources of our liquidity have been : equity financing ; our former strategic alliance with adm ; government grants ; product revenues ; and interest earned on cash and short-term investments . we have incurred significant expenses relating to our research and development efforts . as a result , we have incurred net losses since our inception . as of december 31 , 2013 , we had an accumulated deficit of $ 272,538. our total unrestricted cash , cash equivalents and investments as of december 31 , 2013 were $ 19,209 as compared to $ 46,281 at december 31 , 2012. as of december 31 , 2013 , we had no outstanding debt . our cash and cash equivalents at december 31 , 2013 were held for working capital purposes . we do not enter into investments for trading or speculative purposes . the primary objective of our investment activities is to preserve our capital . as of december 31 , 2013 , we had restricted cash of $ 619. restricted cash consists of $ 494 held in connection with the lease agreement for our cambridge , massachusetts facility and $ 125 held in connection with our corporate credit card program . investments are made in accordance with our corporate investment policy , as approved by our board of directors . investments are limited to high quality corporate debt , u.s. treasury bills and notes , bank debt obligations , municipal debt obligations and asset-backed securities . the policy establishes maturity limits , concentration limits , and liquidity requirements . as of december 31 , 2013 , we were in compliance with this policy .
```    
 Suspicious Activity Report : we worked closely with our core customers to supply product from existing inventory as a bridge to new supply . we evaluated the potential applications for our biopolymer products and narrowed our market development focus to certain high value market segments : ( i ) performance additives , including film and bag applications ; and ( ii ) functional biodegradation . in march 2012 , we began directly recording product sales and shipping product from inventory to our customers . during the second half of 2012 , we developed , sampled and launched a compostable film grade resin , and a polymeric modifier for polyvinyl chloride ( `` pvc `` ) . we also established metabolix gmbh , a subsidiary located in cologne , germany , to serve as a focal point for our commercial activities in europe . this location is intended to enable us to directly access the european market , which is the largest for bioplastics . during 2013 , we continued to use existing biopolymer inventory as well as biobased and biodegradable polymers sourced from third parties to continue developing the market and to supply new and existing customers . in the second half of 2013 , we broadened our offering of film resins with the launch of mvera b5010 , a certified compostable resin for film and bag applications , and the launch of mvera b5011 , a certified compostable film resin for film and bag applications requiring transparency . we also launched i6003rp , a new polymeric modifier and processing aid for recycled pvc . throughout 2013 , we worked closely with customers developing applications using our materials . during 2013 we also engaged in discussions and collaborations with potential customers and suppliers in asia to expand our relationships there . in july 2013 , we formalized a memorandum of understanding ( `` mou `` ) with samsung fine chemicals , a company based in south korea with complementary biopolymer products and complementary regional positioning to metabolix . under the mou , we each fund our respective costs separately , but work together with the goal of expanding the global market for biodegradable polymers . our mou with samsung also provides access to additional biodegradable polymers that we can use in resin formulations designed to deliver the best performance and value to targeted customer applications . the mou is not a binding commitment and may be terminated at any time by either party without liability or obligations to the other party . in 2014 , we plan to increase our efforts in the areas of performance additives based on phas . we also expect to build on the performance , biodegradability and biobased content attributes of our pha 45 biopolymers as we continue to develop biobased and biodegradable resins for film and bag applications and for functional biodegradation applications based on phas and other biodegradable materials . we will also continue to explore alternative options for biopolymer manufacturing with a supply chain properly sized to our business . in 2013 , we conducted due diligence on several potential manufacturing sites , and we expect to select a site in 2014. once our pha supply chain is fully established , this captive capacity combined with access to additional biobased and biodegradable materials sourced from third parties , will allow us to continue formulating proprietary high-performance solutions for our target segments . however , our present capital resources are not sufficient to fund our planned operations for a twelve month period . we will , during 2014 , require significant additional funding to continue our operations . based on our current plans and projections , which remain subject to numerous uncertainties , we anticipate raising $ 50-60 million over the next 12-15 months . the timing , structure and vehicles for obtaining this financing are under consideration and it may be accomplished in stages . although we can not guarantee the availability of financing , our goal is to use this capital to build an intermediate scale specialty materials business based on pha additives that serves as the foundation for our longer-range plans and the future growth of our business . failure to receive additional funding will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , research and development activities and other operations , and or seek strategic alternatives . biobased industrial chemicals platform . for our second platform , we are developing c4 and c3 chemicals from biobased sources , as opposed to the fossil fuels that are used to produce most industrial chemicals today . our process for creating biobased industrial c4 and c3 chemicals involves engineering metabolic pathways into microbes that , in a fermentation process , produce specific pha structures that serve as precursors for these chemicals . through our pha technology , we are able to control the microbe biology to achieve high concentrations of specific phas that accumulate inside cells as they metabolize sugars . this intracellular accumulation of the biopolymers inside the microbes is a unique and differentiating aspect of our technology . when the fermentation is completed , we use a novel internally developed recovery process known as `` fast `` ( fast-acting , selective thermolysis ) that converts the biopolymer directly to the target chemical using heat . in the c4 program , we have produced biobased gamma butyrolactone ( `` gbl `` ) at pilot scale and demonstrated a chemical profile that meets or exceeds the existing industrial specifications . in 2012 , we completed the preliminary design for a commercial scale plant to enable production of biobased gbl which , through an established conversion process , the biobased gbl can be further converted to biobased butanediol ( `` bdo `` ) . this plan , which could be implemented under a potential future collaboration , includes specifications for all of the components of our fermentation and recovery process . story_separator_special_tag during the twelve months ended december 31 , 2013 and 2012 , we also recognized $ 2,067 and $ 1,211 , respectively , related to the sale of biopolymer products . the increase of $ 856 for the twelve months ended december 31 , 2013 was primarily attributable to our implementation of our current product revenue recognition policy that resulted in a one-time shift of revenue , effectively pushing out sixty days of product revenue from 2012 to 2013. the company 's product revenue recognition policy is to defer product revenue recognition until the later of sixty days or cash receipt . at december 31 , 2013 and december 31 , 2012 , short-term deferred revenue on the company 's balance sheet included $ 537 and $ 786 of deferred product revenue , respectively . during the twelve months ended december 31 , 2013 , 52 we recognized $ 2,490 of grant revenue compared to $ 1,971 in 2012. the increase of $ 519 in grant revenue for the twelve months ended december 31 , 2013 was primarily attributable to new grants that commenced in 2013 , including $ 407 in grant revenue earned from our subcontracted award with the university of california ( los angeles ) and funded by the department of energy . during 2013 we recognized $ 618 in research and development revenue that was attributable to a funded research and development arrangement with a third party that completed during our fiscal quarter ended june 30 , 2013. during the twelve months ended december 31 , 2013 , we recognized $ 219 of license fee and royalty revenue and license and royalty revenue from related parties compared to $ 249 for the respective period in 2012. we anticipate that product revenue will increase in 2014 as we plan to continue to gain market acceptance for our products , although there will be fluctuations from quarter to quarter . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales . costs and expenses replace_table_token_7_th cost of product revenue cost of product revenue was $ 3,026 and $ 1,426 for the twelve months ended december 31 , 2013 and 2012 , respectively . these costs primarily include the cost of inventory associated with product revenue recognized during the respective years . cost of product revenue also includes the cost of product inventory written down during the respective years due to impairment . we routinely evaluate inventory in order to determine whether its current book value is below the cash value we expect to realize from its sale . during the twelve months ended december 31 , 2013 and 2012 , we recorded charges of $ 818 and $ 138 to cost of product revenue for inventory that we determined was impaired . cost of product revenue for each year shown also includes the cost of sample inventory shipped to prospective customers , warehousing , product packaging and certain freight charges . although there will be fluctuations from period to period , we expect our overall cost of product revenue will continue to increase during the next twelve months , commensurate with our increasing product sales . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales and associated cost of product revenue . in addition , cost of product revenue will increase as our lower cost inventory acquired from telles is depleted and replaced with our new formulated high-performance products that have higher costs than the material acquired from telles . we may also incur costs to produce inventory at small scale commercial manufacturing operations either on our own or with third parties . due to the expected high per unit cost of these smaller scale manufacturing operations , any inventory costs in excess of our expected saleable market price will be immediately expensed as cost of product revenue . we also anticipate that our cost of product revenue as a percentage of product sales will fluctuate during the next twelve months as our sales mix of biopolymer products changes . 53 research and development expenses research and development expenses were $ 19,127 and $ 23,177 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 4,050 over fiscal 2012 was primarily attributable to decreases in material production costs , employee compensation and related benefit expenses , consulting , and depreciation expense . material production costs are primarily associated with our efforts to establish pilot manufacturing operations , including manufacturing of demonstration batches , for our biodegradable plastics and industrial chemicals products under development . expenses related to material production costs were $ 2,159 and $ 4,455 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 2,296 was primarily due to charges incurred during 2012 in connection with a terminated manufacturing demonstration agreement with a third party that were not repeated during 2013. employee compensation and related benefit expenses were $ 11,045 and $ 12,047 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 1,002 was primarily attributable to costs associated with our restructuring during the first quarter of 2012. consulting costs decreased to $ 156 from $ 539 for the twelve months ended december 31 , 2013 and 2012 , respectively . the reduction of $ 383 was primarily due to our completion of a research project in 2012 , as well as discontinued use of consultants for certain chemical projects in 2013. depreciation expense was $ 831 and $ 1,164 for the twelve months ended december 31 , 2013 and 2012 , respectively

