unless otherwise expressly indicated , the information set forth in this form 10-k is as of december 31 , 2014 , and we undertake no duty to update this information . overview in the second quarter of 2014 , we reached a major milestone in the company 's evolution , generating revenues from our aot technology for the first time since our inception in february 1998. we continue to devote the bulk of our efforts to the promotion , design , testing and the commercial manufacturing and operations of our crude oil pipeline products in the upstream and midstream energy sector . we anticipate that these efforts will continue during 2015. our expenses to date have been funded primarily through the sale of shares of common stock and convertible debt , as well as proceeds from the exercise of stock purchase warrants and options . we raised capital in 2014 and will need to raise substantial additional capital in 2015 , and possibly beyond , to fund our sales and marketing efforts , continuing research and development , and certain other expenses , until our revenue base grows sufficiently . results of operation revenue comparison , 2014 and 2013 the company recognized $ 240,000 in revenues in the fiscal year ended december 31 , 2014 pursuant to the lease of the aot equipment by transcanada . there were no similar transactions during the fiscal year ended december 31 , 2013 . 22 operating expense comparison , 2014 and 2013 operating expenses were $ 3,284,666 for the fiscal year ended december 31 , 2014 , compared to $ 11,884,775 for the fiscal year ended december 31 , 2013 , a decrease of $ 8,600,109. this increase is attributable to decreases in non-cash expenses of $ 7,298,848 and cash expenses of $ 1,301,261. specifically , the decrease in non-cash expenses is attributable to a $ 3,108,351 decrease in settlements paid through issuance of stock , a decrease in valuation of warrants , options and common stock issued to employees , directors and consultants of $ 4,183,923 , and a decrease in depreciation of $ 6,574. the decrease in cash expenses is attributable to decreases in salaries and benefits of $ 774,820 , consulting fees of $ 196,630 , rents , utilities and maintenance of $ 109,770 , travel expenses of $ 12,123 and general operating expenses of $ 207,918. research and development expenses were $ 893,452 for the fiscal year ended december 31 , 2014 , compared to $ 2,011,486 for the fiscal year ended december 31 , 2013 , a decrease of $ 1,118,034. this decrease is attributable to decreases in product prototype development costs of $ 526,423 and general testing and development costs of $ 602,351 , offset by an increase in licensing and research fees of $ 10,740. other income was $ 1,500 for the fiscal year ended december 31 , 2014 , compared to $ 3,493,125 for the fiscal year ended december 31 , 2013 , a decrease of $ 3,491,625. this decrease is attributable to decrease in the gain on extinguishment of derivative liabilities of $ 3,441,752 , a decrease in gain from disposition of fixed assets of $ 41,923 and a decrease in debt cancellation and other miscellaneous income of $ 7,950. other expenses were $ 70,517 for the fiscal year ended december 31 , 2014 , compared to $ 254,674 for the fiscal year ended december 31 , 2013 , a decrease of $ 184,157. this decrease is attributable to a decrease in the fair value of derivative liabilities of $ 220,614 , an increase in non-cash interest and financing expense of $ 39,359 and decrease in other miscellaneous expenses of $ 2,902. we had a net loss of $ 4,006,335 or $ 0.02 loss per share for the fiscal year ended december 31 , 2014 compared to a net loss of $ 10,657,009 , or $ 0.07 loss per share for the fiscal year ended december 31 , 2013. operating expense comparison , 2013 and 2012 operating expenses were $ 11,884,775 for the fiscal year ended december 31 , 2013 , compared to $ 7,187,970 for the fiscal year ended december 31 , 2012 , an increase of $ 4,696,805. this increase is attributable to increases in non-cash expenses of $ 4,014,898 and cash expenses of $ 681,967. specifically , the increase in non-cash expenses is attributable to an a settlement paid through an issuance of stock valued at $ 3,108,351 plus an increase in valuation of warrants and options given to employees and directors of $ 2,694,534 offset by a decrease in depreciation and other non-cash expense of $ 67,678 and a decrease in valuation of warrants and options given to consultants of $ 1,720,308. the increase in cash expenses is attributable to an increase in salaries and benefits of $ 394,148 , an increase in travel expenses of $ 210,045 and an increase in general operating expenses of $ 82,320 , offset by a decrease in professional and consulting fees of $ 4,556. research and development expenses were $ 2,011,486 for the fiscal year ended december 31 , 2013 , compared to $ 963,184 for the fiscal year ended december 31 , 2012 , an increase of $ 1,048,302. this increase is attributable to increases in product testing of $ 88,103 and product development costs for the aot prototype of $ 1,029,143 offset by a decrease in licensing and research fees of $ 68,944. other income was $ 3,493,125 for the fiscal year ended december 31 , 2013 , compared to $ 2,703,876 for the fiscal year ended december 31 , 2012 , an increase of $ 789,249. this increase is attributable to an story_separator_special_tag the amendments clarify that an entity should consider all relevant terms and features , including the embedded derivative feature being evaluated for bifurcation , in evaluating the nature of the host contract . the asu applies to all entities that are issuers of , or investors in , hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. early adoption is permitted . the company is currently evaluating the impact the adoption of asu 2014-16 on the company 's financial statement presentation and disclosures in january 2015 , the fasb issued accounting standards update ( asu ) no . 2015-01 ( subtopic 225-20 ) - income statement - extraordinary and unusual items . asu 2015-01 eliminates the concept of an extraordinary item from gaap . as a result , an entity will no longer be required to segregate extraordinary items from the results of ordinary operations , to separately present an extraordinary item on its income statement , net of tax , after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item . however , asu 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently . asu 2015-01 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-01 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . in february , 2015 , the fasb issued accounting standards update ( asu ) no . 2015-02 , consolidation ( topic 810 ) : amendments to the consolidation analysis . asu 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships , limited liability corporations , and securitization structures ( collateralized debt obligations , collateralized loan obligations , and mortgage-backed security transactions ) . asu 2015-02 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-02 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . on august 27 , 2014 , the fasb issued asu 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern , which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements . the new standard requires management to perform interim and annual assessments of an entity 's ability to continue as a going concern within one year of the date the financial statements are issued . an entity must provide certain disclosures if conditions or events raise substantial doubt about the entity 's ability to continue as a going concern . the asu applies to all entities and is effective for annual periods ending after december 15 , 2016 , and interim periods thereafter , with early adoption permitted . on june 10 , 2014 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2014-10 ( asu 2014-10 ) , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to variable interest entities guidance in topic 810 , consolidation . asu 2014-10 eliminates the requirement to present inception-to-date information about income statement line items , cash flows , and equity transactions , and clarifies how entities should disclosure the risks and uncertainties related to their activities . asu 2014-10 also eliminates an exception provided to development stage entities in consolidations ( asc topic 810 ) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk . the presentation and disclosure requirements in topic 915 will no longer be required for interim and annual reporting periods beginning after december 15 , 2014 , and the revised consolidation standards will take effect in annual periods beginning after december 15 , 2015. early adoption is permitted . the company adopted the provisions of asu 2014-10 effective for its financial statements for the interim period ended june 30 , 2014 , and accordingly , is no longer presenting the inception-to-date financial information and disclosures formerly required . 26 on may 28 , 2014 , the fasb issued accounting standards update no . 2014-09 ( asu 2014-09 ) , revenue from contracts with customers . asu 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current u.s. gaap and replace it with a principle based approach for determining revenue recognition . asu 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract . the asu also will require additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . asu 2014-09 is effective for reporting periods beginning after december 15 , 2016 , and early adoption is not permitted . entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption . the company does not expect the adoption of this guidance to have any impact on the company 's consolidated financial statement presentation or disclosures . in april 2014 , the fasb issued accounting standards update no . 2014-08 ( asu 2014-08 ) , presentation of financial statements ( topic 205 ) and property , plant and equipment ( topic 360 ) . asu 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations . under the new guidance , only disposals representing a strategic shift in operations or that have

liquidity and capital resources general we have incurred negative cash flow from operations since our inception in 1998. as of december 31 , 2014 , we had cash of $ 2,247,557 and an accumulated deficit of $ 97,045,198. our negative operating cash flow in 2014 was funded primarily through cash reserves , the exercise of stock purchase warrants and options for cash , and the issuance of convertible notes for cash . the accompanying consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . as reflected in the accompanying consolidated financial statements , the company had a net loss of $ 4,006,335 and a negative cash flow from operations of $ 3,527,695 for the year ended december 31 , 2014. these factors raise substantial doubt about our ability to continue as a going concern . our ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan . the consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .


 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 general we have incurred negative cash flow from operations since our inception in 1998. as of december 31 , 2014 , we had cash of $ 2,247,557 and an accumulated deficit of $ 97,045,198. our negative operating cash flow in 2014 was funded primarily through cash reserves , the exercise of stock purchase warrants and options for cash , and the issuance of convertible notes for cash . the accompanying consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . as reflected in the accompanying consolidated financial statements , the company had a net loss of $ 4,006,335 and a negative cash flow from operations of $ 3,527,695 for the year ended december 31 , 2014. these factors raise substantial doubt about our ability to continue as a going concern . our ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan . the consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .
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 Suspicious Activity Report : unless otherwise expressly indicated , the information set forth in this form 10-k is as of december 31 , 2014 , and we undertake no duty to update this information . overview in the second quarter of 2014 , we reached a major milestone in the company 's evolution , generating revenues from our aot technology for the first time since our inception in february 1998. we continue to devote the bulk of our efforts to the promotion , design , testing and the commercial manufacturing and operations of our crude oil pipeline products in the upstream and midstream energy sector . we anticipate that these efforts will continue during 2015. our expenses to date have been funded primarily through the sale of shares of common stock and convertible debt , as well as proceeds from the exercise of stock purchase warrants and options . we raised capital in 2014 and will need to raise substantial additional capital in 2015 , and possibly beyond , to fund our sales and marketing efforts , continuing research and development , and certain other expenses , until our revenue base grows sufficiently . results of operation revenue comparison , 2014 and 2013 the company recognized $ 240,000 in revenues in the fiscal year ended december 31 , 2014 pursuant to the lease of the aot equipment by transcanada . there were no similar transactions during the fiscal year ended december 31 , 2013 . 22 operating expense comparison , 2014 and 2013 operating expenses were $ 3,284,666 for the fiscal year ended december 31 , 2014 , compared to $ 11,884,775 for the fiscal year ended december 31 , 2013 , a decrease of $ 8,600,109. this increase is attributable to decreases in non-cash expenses of $ 7,298,848 and cash expenses of $ 1,301,261. specifically , the decrease in non-cash expenses is attributable to a $ 3,108,351 decrease in settlements paid through issuance of stock , a decrease in valuation of warrants , options and common stock issued to employees , directors and consultants of $ 4,183,923 , and a decrease in depreciation of $ 6,574. the decrease in cash expenses is attributable to decreases in salaries and benefits of $ 774,820 , consulting fees of $ 196,630 , rents , utilities and maintenance of $ 109,770 , travel expenses of $ 12,123 and general operating expenses of $ 207,918. research and development expenses were $ 893,452 for the fiscal year ended december 31 , 2014 , compared to $ 2,011,486 for the fiscal year ended december 31 , 2013 , a decrease of $ 1,118,034. this decrease is attributable to decreases in product prototype development costs of $ 526,423 and general testing and development costs of $ 602,351 , offset by an increase in licensing and research fees of $ 10,740. other income was $ 1,500 for the fiscal year ended december 31 , 2014 , compared to $ 3,493,125 for the fiscal year ended december 31 , 2013 , a decrease of $ 3,491,625. this decrease is attributable to decrease in the gain on extinguishment of derivative liabilities of $ 3,441,752 , a decrease in gain from disposition of fixed assets of $ 41,923 and a decrease in debt cancellation and other miscellaneous income of $ 7,950. other expenses were $ 70,517 for the fiscal year ended december 31 , 2014 , compared to $ 254,674 for the fiscal year ended december 31 , 2013 , a decrease of $ 184,157. this decrease is attributable to a decrease in the fair value of derivative liabilities of $ 220,614 , an increase in non-cash interest and financing expense of $ 39,359 and decrease in other miscellaneous expenses of $ 2,902. we had a net loss of $ 4,006,335 or $ 0.02 loss per share for the fiscal year ended december 31 , 2014 compared to a net loss of $ 10,657,009 , or $ 0.07 loss per share for the fiscal year ended december 31 , 2013. operating expense comparison , 2013 and 2012 operating expenses were $ 11,884,775 for the fiscal year ended december 31 , 2013 , compared to $ 7,187,970 for the fiscal year ended december 31 , 2012 , an increase of $ 4,696,805. this increase is attributable to increases in non-cash expenses of $ 4,014,898 and cash expenses of $ 681,967. specifically , the increase in non-cash expenses is attributable to an a settlement paid through an issuance of stock valued at $ 3,108,351 plus an increase in valuation of warrants and options given to employees and directors of $ 2,694,534 offset by a decrease in depreciation and other non-cash expense of $ 67,678 and a decrease in valuation of warrants and options given to consultants of $ 1,720,308. the increase in cash expenses is attributable to an increase in salaries and benefits of $ 394,148 , an increase in travel expenses of $ 210,045 and an increase in general operating expenses of $ 82,320 , offset by a decrease in professional and consulting fees of $ 4,556. research and development expenses were $ 2,011,486 for the fiscal year ended december 31 , 2013 , compared to $ 963,184 for the fiscal year ended december 31 , 2012 , an increase of $ 1,048,302. this increase is attributable to increases in product testing of $ 88,103 and product development costs for the aot prototype of $ 1,029,143 offset by a decrease in licensing and research fees of $ 68,944. other income was $ 3,493,125 for the fiscal year ended december 31 , 2013 , compared to $ 2,703,876 for the fiscal year ended december 31 , 2012 , an increase of $ 789,249. this increase is attributable to an story_separator_special_tag the amendments clarify that an entity should consider all relevant terms and features , including the embedded derivative feature being evaluated for bifurcation , in evaluating the nature of the host contract . the asu applies to all entities that are issuers of , or investors in , hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. early adoption is permitted . the company is currently evaluating the impact the adoption of asu 2014-16 on the company 's financial statement presentation and disclosures in january 2015 , the fasb issued accounting standards update ( asu ) no . 2015-01 ( subtopic 225-20 ) - income statement - extraordinary and unusual items . asu 2015-01 eliminates the concept of an extraordinary item from gaap . as a result , an entity will no longer be required to segregate extraordinary items from the results of ordinary operations , to separately present an extraordinary item on its income statement , net of tax , after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item . however , asu 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently . asu 2015-01 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-01 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . in february , 2015 , the fasb issued accounting standards update ( asu ) no . 2015-02 , consolidation ( topic 810 ) : amendments to the consolidation analysis . asu 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships , limited liability corporations , and securitization structures ( collateralized debt obligations , collateralized loan obligations , and mortgage-backed security transactions ) . asu 2015-02 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-02 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . on august 27 , 2014 , the fasb issued asu 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern , which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements . the new standard requires management to perform interim and annual assessments of an entity 's ability to continue as a going concern within one year of the date the financial statements are issued . an entity must provide certain disclosures if conditions or events raise substantial doubt about the entity 's ability to continue as a going concern . the asu applies to all entities and is effective for annual periods ending after december 15 , 2016 , and interim periods thereafter , with early adoption permitted . on june 10 , 2014 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2014-10 ( asu 2014-10 ) , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to variable interest entities guidance in topic 810 , consolidation . asu 2014-10 eliminates the requirement to present inception-to-date information about income statement line items , cash flows , and equity transactions , and clarifies how entities should disclosure the risks and uncertainties related to their activities . asu 2014-10 also eliminates an exception provided to development stage entities in consolidations ( asc topic 810 ) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk . the presentation and disclosure requirements in topic 915 will no longer be required for interim and annual reporting periods beginning after december 15 , 2014 , and the revised consolidation standards will take effect in annual periods beginning after december 15 , 2015. early adoption is permitted . the company adopted the provisions of asu 2014-10 effective for its financial statements for the interim period ended june 30 , 2014 , and accordingly , is no longer presenting the inception-to-date financial information and disclosures formerly required . 26 on may 28 , 2014 , the fasb issued accounting standards update no . 2014-09 ( asu 2014-09 ) , revenue from contracts with customers . asu 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current u.s. gaap and replace it with a principle based approach for determining revenue recognition . asu 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract . the asu also will require additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . asu 2014-09 is effective for reporting periods beginning after december 15 , 2016 , and early adoption is not permitted . entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption . the company does not expect the adoption of this guidance to have any impact on the company 's consolidated financial statement presentation or disclosures . in april 2014 , the fasb issued accounting standards update no . 2014-08 ( asu 2014-08 ) , presentation of financial statements ( topic 205 ) and property , plant and equipment ( topic 360 ) . asu 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations . under the new guidance , only disposals representing a strategic shift in operations or that have

