as of june 30 , 2012 , we had an accumulated deficit of $ 12.7 million . we incurred research and development expenses of $ 42.6 million , $ 27.8 million , and $ 21.9 million for the years ended june 30 , 2012 , 2011 and 2010 , respectively . our research and development expenses include costs incurred in maintaining and improving our nine current molecular diagnostic tests offerings and costs incurred for the discovery , development and validation of our pipeline of molecular diagnostic and companion diagnostic test candidates . 40 our selling , general and administrative expenses include costs associated with growing our molecular diagnostic and companion diagnostic businesses domestically and internationally . selling , general and administrative expenses consist primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collection , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . we expect that our selling , general and administrative expenses will increase from quarter to quarter and that such increases may be substantial , depending on the number and scope of any new molecular diagnostic and companion diagnostic launches , our efforts in support of our existing molecular diagnostic tests and companion diagnostic services as well as our continued international expansion efforts . between may 2010 and august 2011 , we repurchased $ 300 million of our outstanding common stock . on august 15 , 2011 , our board of directors authorized us to repurchase an additional $ 200 million of our outstanding common stock . in connection with this latest stock repurchase authorization , we have been authorized to repurchase shares at management 's discretion based on market conditions and have repurchased $ 100.5 million of our outstanding common stock as of june 30 , 2012 under this authorization . see also part ii , item 5. market for registrant 's common equity , related stockholder matters and issuer repurchases of equity securities  issuer purchases of equity securities. critical accounting policies critical accounting policies are those policies which are both important to the portrayal of a company 's financial condition and results and require management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . our critical accounting policies are as follows : revenue recognition ; allowance for doubtful accounts ; share-based payment expense ; goodwill ; and income taxes revenue recognition . revenue includes the sale of molecular diagnostic tests for our predictive , personalized and prognostic medicine tests , and is recorded at the invoiced amount net of any discounts or allowances . molecular diagnostic testing revenue is recognized when persuasive evidence of an agreement exists , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . revenue also includes sales of our companion diagnostic services and is also recorded at the invoiced amount net of any discounts or allowances . revenue is recognized upon completion of the test or service , communication of results , and when collectability is reasonably assured . allowance for doubtful accounts . the preparation of our financial statements in accordance with u.s. gaap requires us to make estimates and assumptions that affect the reported amount of assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . trade accounts receivable are comprised of amounts due from sales of our molecular diagnostic tests , which are recorded net of any discounts or contractual allowances . we analyze trade accounts receivable and consider historic experience , customer creditworthiness , facts and circumstances specific to outstanding balances , and payment terms when evaluating the adequacy of the allowance for doubtful accounts . we periodically evaluate and adjust the allowance for doubtful accounts through a charge or credit to expense when trends or significant events indicate that a change in estimate is appropriate . such changes in estimate could materially affect our results of operations or financial position ; however , to date these changes have not been material . it is possible that we may need to adjust our estimates in future periods . after a review of our allowance for doubtful accounts as of june 30 , 2012 and 2011 , we have determined that a hypothetical ten percent increase in our allowance for doubtful accounts would result in additional bad debt expense and an increase to our allowance for doubtful accounts of $ 460,000 and $ 370,000 , respectively . share-based payment expense . we recognize share-based equity compensation in our consolidated statements of income at the grant-date fair value of our stock options . the determination of grant-date fair value is estimated using an option-pricing model , which includes variables such as the expected volatility of our share price , the exercise 41 behavior of our employees , interest rates , and dividend yields . these variables are projected based on our historical data , experience , and other factors . changes in any of these variables could result in material increases to the valuation of options granted in future periods and increases in the expense recognized for share-based payments . goodwill . we test goodwill for impairment on an annual basis and in the interim by reporting unit if events and circumstances indicate that goodwill may be impaired . the events and circumstances that are considered include business climate , legal factors , operating performance indicators and competition . impairment of goodwill is evaluated on a qualitative basis to determine if using a two-step process is necessary . if the qualitative assessment suggests that impairment is more likely than not , a two-step impairment analysis is performed . the first step involves comparison of the fair value of the reporting unit with its carrying amount . story_separator_special_tag this increase of 27 % was primarily due to the following : an increase of approximately $ 2.5 million in internal development activities and clinical studies to support our existing molecular diagnostic testing products ; an increase of approximately $ 2.0 million due to the in-license of molecular diagnostic testing product candidates ; an increase of approximately $ 0.8 million due to the internal development of future molecular diagnostic product candidates ; and an additional $ 0.6 million in companion diagnostic discovery costs from our newly acquired myriad rbm subsidiary . 46 selling , general and administrative expenses consisted primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collections , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . selling , general and administrative expenses for the fiscal year ended june 30 , 2011 were $ 169.8 million compared to $ 161.4 million for the prior fiscal year . this increase of 5 % was primarily attributable to : increase in costs of approximately $ 3.2 million from the planning and execution our international expansion efforts including various consulting , planning and set-up activities ; increased sales and marketing expense of approximately $ 3.2 million to support our 11 % sales growth ; general increase in administrative costs of approximately $ 2.4 million due to acquisition , business development activities as well as to support the 11 % growth in our revenues ; increased share-based payment expense of approximately $ 1.9 million ; offset by a decrease in bad debt expense of $ 2.3 million due to improved collection efforts . interest income for the fiscal year ended june 30 , 2011 was $ 2.2 million , compared to $ 5.7 million for the prior fiscal year . the decrease was due primarily to lower market interest rates , the repurchase of approximately $ 200.5 million of myriad common stock , and the $ 80 million of cash used in the acquistion of rules-based medicine , inc .. income tax expense for the fiscal year ended june 30 , 2011 was $ 58.9 million , for an effective rate of approximately 37 % , compared to income tax benefit of $ 11.5 million for the year ended june 30 , 2010 , for an effective rate of ( 8 % ) . the difference between the effective rate for fiscal 2011 and fiscal 2010 is primarily attributable to the reversal in fiscal 2010 of a significant portion of our valuation allowance against our deferred tax assets . our annual effective rate for the year ended june 30 , 2011 of 37 % differs from the federal statutory rate of 35 % primarily due to state income taxes . for the year ended june 30 , 2011 we realized $ 58.8 million of excess tax benefits from stock-based compensation as a reduction of taxes payable . excess tax benefits from stock-based compensation are credited directly to additional paid-in capital and are not included in income tax expense . accordingly , they do not impact our effective income tax rate . due to the realization of these excess tax benefits and the utilization of net operating loss carry-forwards that offset our taxes payable , our current income tax expense in fiscal 2011 is significantly higher than our actual cash paid . see note 8 in the fiscal 2012 notes to consolidated financial statements . story_separator_special_tag style= `` font-family : times new roman `` > the costs , timing , outcome , and enforcement of any regulatory review of our existing or future molecular diagnostic tests and companion diagnostic services ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our issued patents and defending intellectual property-related claims ; the costs , timing and outcome of any litigation against us ; the introduction of technological innovations or new commercial tests by our competitors ; changes in intellectual property laws covering our molecular diagnostic tests and companion diagnostic services and patents or enforcement in the united states and foreign countries ; changes in the governmental or private insurers reimbursement levels for our tests ; and changes in structure of the healthcare system or healthcare payment systems off-balance sheet arrangements none . contractual obligations the following table represents our consolidated contractual obligations as of june 30 , 2012 ( in thousands ) : replace_table_token_12_th the expected timing of payment for the obligations listed above is estimated based on current information . actual payment timing and amounts may differ depending on the timing of goods or services received or other changes . the table above only includes payment obligations that are fixed or determinable . the table excludes royalties to third parties based on future sales of any of our product candidates that are approved for sale , as the amounts , timing , and likelihood of any such payments are based on the level of future sales of tests and are unknown . 48 effects of inflation we do not believe that inflation has had a material impact on our business , revenues , or operating results during the periods presented . certain factors that may affect future results of operations the securities and exchange commission encourages companies to disclose forward-looking information so that investors can better understand a company 's future prospects and make informed investment decisions . this annual report on form 10-k contains such forward-looking statements within the meaning of the private securities litigation reform act of 1995. words such as may ,  anticipate ,  estimate ,  expects ,  projects ,  intends ,  plans ,  believes and words and terms of similar substance used in connection with any discussion of future operating or financial performance , identify forward-looking statements . all forward-looking statements are management 's present expectations of future events and are subject to a number of risks and

liquidity and capital resources cash , cash equivalents , and marketable investment securities increased $ 36.9 million , or 9 % , from $ 417.3 million at june 30 , 2011 to $ 454.2 million at june 30 , 2012. this increase was attributable to increased sales , partially offset by purchasing $ 128.5 million of our common stock under our share repurchase programs , issuance of a $ 25 million note to crescendo , payments of $ 33.4 million in estimated income tax obligations , and operating expenditures during fiscal 2012. net cash provided by operating activities was $ 141.8 million , $ 130.8 million and $ 155.1 million during the fiscal years ended june 30 , 2012 , 2011 and 2010 , respectively . during the year ended june 30 , 2012 , our net income was reduced by non-cash charges in the form of share-based compensation and depreciation and amortization , which totaled $ 26.3 million and $ 9.1 million , respectively . net cash provided by operating activities for year ended june 30 , 2012 was also impacted by changes in bad debt expense , trade accounts receivable and accrued liabilities . our investing activities used cash of $ 38.9 million , $ 54.4 million and $ 76.7 million during the fiscal years ended june 30 , 2012 , 2011 and 2010 , respectively .


 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 cash , cash equivalents , and marketable investment securities increased $ 36.9 million , or 9 % , from $ 417.3 million at june 30 , 2011 to $ 454.2 million at june 30 , 2012. this increase was attributable to increased sales , partially offset by purchasing $ 128.5 million of our common stock under our share repurchase programs , issuance of a $ 25 million note to crescendo , payments of $ 33.4 million in estimated income tax obligations , and operating expenditures during fiscal 2012. net cash provided by operating activities was $ 141.8 million , $ 130.8 million and $ 155.1 million during the fiscal years ended june 30 , 2012 , 2011 and 2010 , respectively . during the year ended june 30 , 2012 , our net income was reduced by non-cash charges in the form of share-based compensation and depreciation and amortization , which totaled $ 26.3 million and $ 9.1 million , respectively . net cash provided by operating activities for year ended june 30 , 2012 was also impacted by changes in bad debt expense , trade accounts receivable and accrued liabilities . our investing activities used cash of $ 38.9 million , $ 54.4 million and $ 76.7 million during the fiscal years ended june 30 , 2012 , 2011 and 2010 , respectively .
```    
 Suspicious Activity Report : as of june 30 , 2012 , we had an accumulated deficit of $ 12.7 million . we incurred research and development expenses of $ 42.6 million , $ 27.8 million , and $ 21.9 million for the years ended june 30 , 2012 , 2011 and 2010 , respectively . our research and development expenses include costs incurred in maintaining and improving our nine current molecular diagnostic tests offerings and costs incurred for the discovery , development and validation of our pipeline of molecular diagnostic and companion diagnostic test candidates . 40 our selling , general and administrative expenses include costs associated with growing our molecular diagnostic and companion diagnostic businesses domestically and internationally . selling , general and administrative expenses consist primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collection , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . we expect that our selling , general and administrative expenses will increase from quarter to quarter and that such increases may be substantial , depending on the number and scope of any new molecular diagnostic and companion diagnostic launches , our efforts in support of our existing molecular diagnostic tests and companion diagnostic services as well as our continued international expansion efforts . between may 2010 and august 2011 , we repurchased $ 300 million of our outstanding common stock . on august 15 , 2011 , our board of directors authorized us to repurchase an additional $ 200 million of our outstanding common stock . in connection with this latest stock repurchase authorization , we have been authorized to repurchase shares at management 's discretion based on market conditions and have repurchased $ 100.5 million of our outstanding common stock as of june 30 , 2012 under this authorization . see also part ii , item 5. market for registrant 's common equity , related stockholder matters and issuer repurchases of equity securities  issuer purchases of equity securities. critical accounting policies critical accounting policies are those policies which are both important to the portrayal of a company 's financial condition and results and require management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . our critical accounting policies are as follows : revenue recognition ; allowance for doubtful accounts ; share-based payment expense ; goodwill ; and income taxes revenue recognition . revenue includes the sale of molecular diagnostic tests for our predictive , personalized and prognostic medicine tests , and is recorded at the invoiced amount net of any discounts or allowances . molecular diagnostic testing revenue is recognized when persuasive evidence of an agreement exists , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . revenue also includes sales of our companion diagnostic services and is also recorded at the invoiced amount net of any discounts or allowances . revenue is recognized upon completion of the test or service , communication of results , and when collectability is reasonably assured . allowance for doubtful accounts . the preparation of our financial statements in accordance with u.s. gaap requires us to make estimates and assumptions that affect the reported amount of assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . trade accounts receivable are comprised of amounts due from sales of our molecular diagnostic tests , which are recorded net of any discounts or contractual allowances . we analyze trade accounts receivable and consider historic experience , customer creditworthiness , facts and circumstances specific to outstanding balances , and payment terms when evaluating the adequacy of the allowance for doubtful accounts . we periodically evaluate and adjust the allowance for doubtful accounts through a charge or credit to expense when trends or significant events indicate that a change in estimate is appropriate . such changes in estimate could materially affect our results of operations or financial position ; however , to date these changes have not been material . it is possible that we may need to adjust our estimates in future periods . after a review of our allowance for doubtful accounts as of june 30 , 2012 and 2011 , we have determined that a hypothetical ten percent increase in our allowance for doubtful accounts would result in additional bad debt expense and an increase to our allowance for doubtful accounts of $ 460,000 and $ 370,000 , respectively . share-based payment expense . we recognize share-based equity compensation in our consolidated statements of income at the grant-date fair value of our stock options . the determination of grant-date fair value is estimated using an option-pricing model , which includes variables such as the expected volatility of our share price , the exercise 41 behavior of our employees , interest rates , and dividend yields . these variables are projected based on our historical data , experience , and other factors . changes in any of these variables could result in material increases to the valuation of options granted in future periods and increases in the expense recognized for share-based payments . goodwill . we test goodwill for impairment on an annual basis and in the interim by reporting unit if events and circumstances indicate that goodwill may be impaired . the events and circumstances that are considered include business climate , legal factors , operating performance indicators and competition . impairment of goodwill is evaluated on a qualitative basis to determine if using a two-step process is necessary . if the qualitative assessment suggests that impairment is more likely than not , a two-step impairment analysis is performed . the first step involves comparison of the fair value of the reporting unit with its carrying amount . story_separator_special_tag this increase of 27 % was primarily due to the following : an increase of approximately $ 2.5 million in internal development activities and clinical studies to support our existing molecular diagnostic testing products ; an increase of approximately $ 2.0 million due to the in-license of molecular diagnostic testing product candidates ; an increase of approximately $ 0.8 million due to the internal development of future molecular diagnostic product candidates ; and an additional $ 0.6 million in companion diagnostic discovery costs from our newly acquired myriad rbm subsidiary . 46 selling , general and administrative expenses consisted primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collections , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . selling , general and administrative expenses for the fiscal year ended june 30 , 2011 were $ 169.8 million compared to $ 161.4 million for the prior fiscal year . this increase of 5 % was primarily attributable to : increase in costs of approximately $ 3.2 million from the planning and execution our international expansion efforts including various consulting , planning and set-up activities ; increased sales and marketing expense of approximately $ 3.2 million to support our 11 % sales growth ; general increase in administrative costs of approximately $ 2.4 million due to acquisition , business development activities as well as to support the 11 % growth in our revenues ; increased share-based payment expense of approximately $ 1.9 million ; offset by a decrease in bad debt expense of $ 2.3 million due to improved collection efforts . interest income for the fiscal year ended june 30 , 2011 was $ 2.2 million , compared to $ 5.7 million for the prior fiscal year . the decrease was due primarily to lower market interest rates , the repurchase of approximately $ 200.5 million of myriad common stock , and the $ 80 million of cash used in the acquistion of rules-based medicine , inc .. income tax expense for the fiscal year ended june 30 , 2011 was $ 58.9 million , for an effective rate of approximately 37 % , compared to income tax benefit of $ 11.5 million for the year ended june 30 , 2010 , for an effective rate of ( 8 % ) . the difference between the effective rate for fiscal 2011 and fiscal 2010 is primarily attributable to the reversal in fiscal 2010 of a significant portion of our valuation allowance against our deferred tax assets . our annual effective rate for the year ended june 30 , 2011 of 37 % differs from the federal statutory rate of 35 % primarily due to state income taxes . for the year ended june 30 , 2011 we realized $ 58.8 million of excess tax benefits from stock-based compensation as a reduction of taxes payable . excess tax benefits from stock-based compensation are credited directly to additional paid-in capital and are not included in income tax expense . accordingly , they do not impact our effective income tax rate . due to the realization of these excess tax benefits and the utilization of net operating loss carry-forwards that offset our taxes payable , our current income tax expense in fiscal 2011 is significantly higher than our actual cash paid . see note 8 in the fiscal 2012 notes to consolidated financial statements . story_separator_special_tag style= `` font-family : times new roman `` > the costs , timing , outcome , and enforcement of any regulatory review of our existing or future molecular diagnostic tests and companion diagnostic services ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our issued patents and defending intellectual property-related claims ; the costs , timing and outcome of any litigation against us ; the introduction of technological innovations or new commercial tests by our competitors ; changes in intellectual property laws covering our molecular diagnostic tests and companion diagnostic services and patents or enforcement in the united states and foreign countries ; changes in the governmental or private insurers reimbursement levels for our tests ; and changes in structure of the healthcare system or healthcare payment systems off-balance sheet arrangements none . contractual obligations the following table represents our consolidated contractual obligations as of june 30 , 2012 ( in thousands ) : replace_table_token_12_th the expected timing of payment for the obligations listed above is estimated based on current information . actual payment timing and amounts may differ depending on the timing of goods or services received or other changes . the table above only includes payment obligations that are fixed or determinable . the table excludes royalties to third parties based on future sales of any of our product candidates that are approved for sale , as the amounts , timing , and likelihood of any such payments are based on the level of future sales of tests and are unknown . 48 effects of inflation we do not believe that inflation has had a material impact on our business , revenues , or operating results during the periods presented . certain factors that may affect future results of operations the securities and exchange commission encourages companies to disclose forward-looking information so that investors can better understand a company 's future prospects and make informed investment decisions . this annual report on form 10-k contains such forward-looking statements within the meaning of the private securities litigation reform act of 1995. words such as may ,  anticipate ,  estimate ,  expects ,  projects ,  intends ,  plans ,  believes and words and terms of similar substance used in connection with any discussion of future operating or financial performance , identify forward-looking statements . all forward-looking statements are management 's present expectations of future events and are subject to a number of risks and

