and expectations regarding clinical trials ; plans and expectations regarding regulatory approvals ; our strategy and expectations for clinical development and commercialization of our products ; potential strategic partnerships ; expectations regarding the effectiveness of our products ; plans for research and development and related costs ; statements about accounting assumptions and estimates ; expectations regarding liquidity and the sufficiency of cash to fund operations through the first quarter of 2014 ; our commitments and contingencies ; and our market risk exposure . forward-looking statements are based on current expectations , estimates and projections about the industry and markets in which galectin therapeutics operates , and management 's beliefs and assumptions . these statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements . such risks and uncertainties are related to , without limitation , our early stage of development ; our dependence on outside capital ; uncertainties related to our technology and clinical trials , intellectual property protection , uncertainties of regulatory approval requirements for our products ; competition and stock price volatility in the biotechnology industry , limited trading volume for our stock , concentration of ownership of our stock , and other risks detailed herein and from time to time in our sec reports . the following discussion should be read in conjunction with the accompanying consolidated financial statements and notes thereto of galectin therapeutics appearing elsewhere herein . overview we are a development-stage company engaged in drug research and development to create new therapies for fibrotic disease and cancer . our drug candidates are based on our method of targeting galectin proteins , which are key mediators of biologic and pathologic functions . we use naturally occurring , readily-available plant materials as starting material in manufacturing processes to create proprietary complex carbohydrates with specific molecular weights and other pharmaceutical properties . these complex carbohydrate molecules are appropriately formulated into acceptable pharmaceutical formulations . using these unique carbohydrate-based candidate compounds that bind and inhibit galectin proteins , we are undertaking the focused pursuit of therapies for indications where galectins have a demonstrated role in the pathogenesis of a given disease . we focus on diseases with serious , life-threatening consequences to patients and those where current treatment options are limited . our strategy is to establish and implement clinical development programs that add value to our business in the shortest period of time possible and to seek strategic partners when a program becomes advanced and requires additional resources . we endeavor to leverage our scientific and product development expertise as well as established relationships with outside sources to achieve cost-effective and efficient development . these outside sources , amongst others , provide us with expertise in preclinical models , pharmaceutical development , toxicology , clinical development , pharmaceutical manufacturing , sophisticated physical and chemical characterization , and commercial development . we also have established a collaborative scientific discovery program with leading experts in carbohydrate chemistry and characterization . this discovery program is aimed at the targeted development of new molecules which bind galectin proteins and offer alternative options to larger market segments in our primary disease targets . we are pursuing a development pathway to clinical enhancement and commercialization for our lead compounds in liver fibrosis and fatty liver disease as well as in immune enhancement for cancer therapy . all of our proposed products are presently in development , including pre-clinical and clinical trials . 2012 common stock and warrant offering and reverse split on march 22 , 2012 , in anticipation of completing a public offering of securities , we effected a one-for-six reverse stock split of our common stock . all common share and per unit amounts in this report , including the financial statements , have been adjusted to reflect the reverse split . our common stock began trading on the 25 nasdaq capital market under the symbol galt on march 23 , 2012 , and the units and warrants that we sold in the offering began trading on that exchange under the symbols galtu and galtw , respectively , on march 28 , 2012. on march 28 , 2012 , we completed the public offering in which we issued 2,666,722 shares of common stock and related warrants exercisable until march 28 , 2017 , at $ 5.63 per share to purchase 1,333,361 shares of common stock for gross proceeds of $ 12.0 million ( net cash proceeds of 10.4 million ) . our drug development programs galectins are a class of proteins that are made by many cells in the body . as a group , these proteins are able to bind to sugar molecules that are part of other proteins in and on the cells of our body . galectin proteins act as a kind of glue , bringing together molecules that have sugars on them . galectin proteins are known to be markedly increased in a number of important diseases including scaring of organs ( e.g . liver , lung , kidney , and heart ) and cancers of many kinds . the increase in galectin protein promotes the disease and is detrimental to the patient . we have two compounds in development , one intended to be used in the treatment of liver fibrosis and fatty liver disease and the other intended to be used in cancer therapy . these two compounds are produced from completely different , natural , readily available , starting materials , which , following chemical processing , both exhibit the property of binding to and inhibiting galectin proteins . story_separator_special_tag along with removal of the $ 1.0 million milestone payment 31 provided for under the separation agreement , the company is seeking repayment of all separation benefits paid to dr. platt to date . depending on the outcome of the arbitration , the previously accrued $ 1.0 million could be reversed . the timing and ultimate outcome of this arbitration , though , is uncertain and there is no guarantee that we will be successful in this demand . other . we have engaged outside vendors for certain services associated with our clinical trials . these services are generally available from several providers and , accordingly , our arrangements are typically cancellable on 30 days notice . off-balance sheet arrangements we have not created , and are not a party to , any special-purpose or off-balance sheet entities for the purpose of raising capital , incurring debt or operating parts of our business that are not consolidated into our financial statements . we do not have any arrangements or relationships with entities that are not consolidated into our financial statements that are reasonably likely to materially affect our liquidity or the availability of capital resources . critical accounting policies and estimates our significant accounting policies are more fully described in note 2 to our consolidated financial statements included elsewhere in this annual report on form 10-k. certain of our accounting policies , however , are critical to the portrayal of our financial position and results of operations and require the application of significant judgment by our management , which subjects them to an inherent degree of uncertainty . in applying our accounting policies , our management uses its best judgment to determine the appropriate assumptions to be used in the determination of certain estimates . our more significant estimates include stock option and warrant liability valuations and performance vesting features of certain of these instruments , useful lives and potential impairment of property and equipment and intangible assets , accrued liabilities , deferred income taxes and cash flow . these estimates are based on our historical experience , terms of existing contracts , our observance of trends in the industry , information available from other outside sources , and on various other factors that we believe to be appropriate under the circumstances . we believe that the critical accounting policies discussed below involve more complex management judgment due to the sensitivity of the methods , assumptions and estimates necessary in determining the related asset , liability , revenue and expense amounts . accrued expenses . as part of the process of preparing our consolidated financial statements , we are required to estimate accrued expenses . this process involves identifying services that third parties have performed on our behalf and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in our consolidated financial statements . examples of estimated accrued expenses include contract service fees in conjunction with pre-clinical and clinical trials , professional service fees , such as those arising from the services of attorneys and accountants and accrued payroll expenses . in connection with these service fees , our estimates are most affected by our understanding of the status and timing of services provided relative to the actual services incurred by the service providers . in the event that we do not identify certain costs that have been incurred or we under- or over-estimate the level of services or costs of such services , our reported expenses for a reporting period could be understated or overstated . the date on which certain services commence , the level of services performed on or before a given date , and the cost of services are often subject to our judgment . we make these judgments based upon the facts and circumstances known to us in accordance with accounting principles generally accepted in the u.s. warrants . we have issued common stock warrants in connection with the execution of certain equity and debt financings and consulting agreements . certain warrants , no longer outstanding , had been accounted for as derivative liabilities at fair value . such warrants did not meet the criteria that a contract should not be considered a derivative instrument if it is ( 1 ) indexed to its own stock and ( 2 ) classified in stockholders ' equity . changes in fair value of derivative liabilities were recorded in the consolidated statement of operations under the caption change in fair value of warrant liabilities. warrants that are not considered derivative liabilities are accounted 32 for at fair value at the date of issuance in additional paid-in capital . the fair value of warrants is determined using the black-scholes option-pricing model using assumptions regarding volatility of our common share price , remaining life of the warrant , and risk-free interest rates at each period end . stock-based compensation . stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the service period , which generally represents the vesting period . for awards that have performance based vesting conditions we recognize the expense over the estimated period that the awards are expected to be earned . we generally use the black-scholes option-pricing model to calculate the grant date fair value of stock options . the expense recognized over the service period is required to include an estimate of the awards that will be forfeited . research and development expenses . costs associated with research and development are expensed as incurred . research and development expenses include , among other costs , salaries and other personnel-related costs , and costs incurred by outside laboratories and other accredited facilities in connection with clinical trials and preclinical studies . contingencies . at the date of issuance , our series c super dividend convertible preferred stock ( series c ) have an embedded dividend right to continue to receive dividend

liquidity and capital resources as described above in the overview and elsewhere in this annual report on form 10-k , we are in the development stage and have not generated any revenues to date . since our inception on july 10 , 2000 , we have financed our operations from proceeds of public and private offerings of debt and equity . as of december 31 , 2012 , we raised a net total of $ 68.8 million from these offerings . at december 31 , 2012 , we had $ 9,364,000 of unrestricted cash and cash equivalents available to fund future operations . we believe that with the cash on hand at december 31 , 2012 , there is sufficient cash to fund operations through the first quarter of 2014. we will require more cash to fund our operations and believe we will be able to obtain additional financing . however , there can be no assurance that we will be successful in obtaining such new financing or , if available , that such financing will be on terms favorable to us . we plan to raise additional capital and have significantly reduced our administrative and clinical spending . if we are unsuccessful in raising additional capital before the end of the first quarter of 2014 , we may be required to cease operations or seek bankruptcy protection . we have accrued an expense of $ 1,000,000 that is payable to david platt , ph.d. , the company 's former chief executive officer and chairman of the board of directors , if and when certain company milestone events occur pursuant to his separation agreement with the company ; however , on march 29 , 2013 , we instituted arbitration before the american arbitration association , seeking to rescind or reform the separation agreement . depending on the outcome of the arbitration , the accrual could be reversed . the timing and ultimate outcome of this arbitration , though , is uncertain and there is no guarantee that we will be successful in this demand . see item 3. legal proceedings for further description of the arbitration .


 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 as described above in the overview and elsewhere in this annual report on form 10-k , we are in the development stage and have not generated any revenues to date . since our inception on july 10 , 2000 , we have financed our operations from proceeds of public and private offerings of debt and equity . as of december 31 , 2012 , we raised a net total of $ 68.8 million from these offerings . at december 31 , 2012 , we had $ 9,364,000 of unrestricted cash and cash equivalents available to fund future operations . we believe that with the cash on hand at december 31 , 2012 , there is sufficient cash to fund operations through the first quarter of 2014. we will require more cash to fund our operations and believe we will be able to obtain additional financing . however , there can be no assurance that we will be successful in obtaining such new financing or , if available , that such financing will be on terms favorable to us . we plan to raise additional capital and have significantly reduced our administrative and clinical spending . if we are unsuccessful in raising additional capital before the end of the first quarter of 2014 , we may be required to cease operations or seek bankruptcy protection . we have accrued an expense of $ 1,000,000 that is payable to david platt , ph.d. , the company 's former chief executive officer and chairman of the board of directors , if and when certain company milestone events occur pursuant to his separation agreement with the company ; however , on march 29 , 2013 , we instituted arbitration before the american arbitration association , seeking to rescind or reform the separation agreement . depending on the outcome of the arbitration , the accrual could be reversed . the timing and ultimate outcome of this arbitration , though , is uncertain and there is no guarantee that we will be successful in this demand . see item 3. legal proceedings for further description of the arbitration .
```    
 Suspicious Activity Report : and expectations regarding clinical trials ; plans and expectations regarding regulatory approvals ; our strategy and expectations for clinical development and commercialization of our products ; potential strategic partnerships ; expectations regarding the effectiveness of our products ; plans for research and development and related costs ; statements about accounting assumptions and estimates ; expectations regarding liquidity and the sufficiency of cash to fund operations through the first quarter of 2014 ; our commitments and contingencies ; and our market risk exposure . forward-looking statements are based on current expectations , estimates and projections about the industry and markets in which galectin therapeutics operates , and management 's beliefs and assumptions . these statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements . such risks and uncertainties are related to , without limitation , our early stage of development ; our dependence on outside capital ; uncertainties related to our technology and clinical trials , intellectual property protection , uncertainties of regulatory approval requirements for our products ; competition and stock price volatility in the biotechnology industry , limited trading volume for our stock , concentration of ownership of our stock , and other risks detailed herein and from time to time in our sec reports . the following discussion should be read in conjunction with the accompanying consolidated financial statements and notes thereto of galectin therapeutics appearing elsewhere herein . overview we are a development-stage company engaged in drug research and development to create new therapies for fibrotic disease and cancer . our drug candidates are based on our method of targeting galectin proteins , which are key mediators of biologic and pathologic functions . we use naturally occurring , readily-available plant materials as starting material in manufacturing processes to create proprietary complex carbohydrates with specific molecular weights and other pharmaceutical properties . these complex carbohydrate molecules are appropriately formulated into acceptable pharmaceutical formulations . using these unique carbohydrate-based candidate compounds that bind and inhibit galectin proteins , we are undertaking the focused pursuit of therapies for indications where galectins have a demonstrated role in the pathogenesis of a given disease . we focus on diseases with serious , life-threatening consequences to patients and those where current treatment options are limited . our strategy is to establish and implement clinical development programs that add value to our business in the shortest period of time possible and to seek strategic partners when a program becomes advanced and requires additional resources . we endeavor to leverage our scientific and product development expertise as well as established relationships with outside sources to achieve cost-effective and efficient development . these outside sources , amongst others , provide us with expertise in preclinical models , pharmaceutical development , toxicology , clinical development , pharmaceutical manufacturing , sophisticated physical and chemical characterization , and commercial development . we also have established a collaborative scientific discovery program with leading experts in carbohydrate chemistry and characterization . this discovery program is aimed at the targeted development of new molecules which bind galectin proteins and offer alternative options to larger market segments in our primary disease targets . we are pursuing a development pathway to clinical enhancement and commercialization for our lead compounds in liver fibrosis and fatty liver disease as well as in immune enhancement for cancer therapy . all of our proposed products are presently in development , including pre-clinical and clinical trials . 2012 common stock and warrant offering and reverse split on march 22 , 2012 , in anticipation of completing a public offering of securities , we effected a one-for-six reverse stock split of our common stock . all common share and per unit amounts in this report , including the financial statements , have been adjusted to reflect the reverse split . our common stock began trading on the 25 nasdaq capital market under the symbol galt on march 23 , 2012 , and the units and warrants that we sold in the offering began trading on that exchange under the symbols galtu and galtw , respectively , on march 28 , 2012. on march 28 , 2012 , we completed the public offering in which we issued 2,666,722 shares of common stock and related warrants exercisable until march 28 , 2017 , at $ 5.63 per share to purchase 1,333,361 shares of common stock for gross proceeds of $ 12.0 million ( net cash proceeds of 10.4 million ) . our drug development programs galectins are a class of proteins that are made by many cells in the body . as a group , these proteins are able to bind to sugar molecules that are part of other proteins in and on the cells of our body . galectin proteins act as a kind of glue , bringing together molecules that have sugars on them . galectin proteins are known to be markedly increased in a number of important diseases including scaring of organs ( e.g . liver , lung , kidney , and heart ) and cancers of many kinds . the increase in galectin protein promotes the disease and is detrimental to the patient . we have two compounds in development , one intended to be used in the treatment of liver fibrosis and fatty liver disease and the other intended to be used in cancer therapy . these two compounds are produced from completely different , natural , readily available , starting materials , which , following chemical processing , both exhibit the property of binding to and inhibiting galectin proteins . story_separator_special_tag along with removal of the $ 1.0 million milestone payment 31 provided for under the separation agreement , the company is seeking repayment of all separation benefits paid to dr. platt to date . depending on the outcome of the arbitration , the previously accrued $ 1.0 million could be reversed . the timing and ultimate outcome of this arbitration , though , is uncertain and there is no guarantee that we will be successful in this demand . other . we have engaged outside vendors for certain services associated with our clinical trials . these services are generally available from several providers and , accordingly , our arrangements are typically cancellable on 30 days notice . off-balance sheet arrangements we have not created , and are not a party to , any special-purpose or off-balance sheet entities for the purpose of raising capital , incurring debt or operating parts of our business that are not consolidated into our financial statements . we do not have any arrangements or relationships with entities that are not consolidated into our financial statements that are reasonably likely to materially affect our liquidity or the availability of capital resources . critical accounting policies and estimates our significant accounting policies are more fully described in note 2 to our consolidated financial statements included elsewhere in this annual report on form 10-k. certain of our accounting policies , however , are critical to the portrayal of our financial position and results of operations and require the application of significant judgment by our management , which subjects them to an inherent degree of uncertainty . in applying our accounting policies , our management uses its best judgment to determine the appropriate assumptions to be used in the determination of certain estimates . our more significant estimates include stock option and warrant liability valuations and performance vesting features of certain of these instruments , useful lives and potential impairment of property and equipment and intangible assets , accrued liabilities , deferred income taxes and cash flow . these estimates are based on our historical experience , terms of existing contracts , our observance of trends in the industry , information available from other outside sources , and on various other factors that we believe to be appropriate under the circumstances . we believe that the critical accounting policies discussed below involve more complex management judgment due to the sensitivity of the methods , assumptions and estimates necessary in determining the related asset , liability , revenue and expense amounts . accrued expenses . as part of the process of preparing our consolidated financial statements , we are required to estimate accrued expenses . this process involves identifying services that third parties have performed on our behalf and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in our consolidated financial statements . examples of estimated accrued expenses include contract service fees in conjunction with pre-clinical and clinical trials , professional service fees , such as those arising from the services of attorneys and accountants and accrued payroll expenses . in connection with these service fees , our estimates are most affected by our understanding of the status and timing of services provided relative to the actual services incurred by the service providers . in the event that we do not identify certain costs that have been incurred or we under- or over-estimate the level of services or costs of such services , our reported expenses for a reporting period could be understated or overstated . the date on which certain services commence , the level of services performed on or before a given date , and the cost of services are often subject to our judgment . we make these judgments based upon the facts and circumstances known to us in accordance with accounting principles generally accepted in the u.s. warrants . we have issued common stock warrants in connection with the execution of certain equity and debt financings and consulting agreements . certain warrants , no longer outstanding , had been accounted for as derivative liabilities at fair value . such warrants did not meet the criteria that a contract should not be considered a derivative instrument if it is ( 1 ) indexed to its own stock and ( 2 ) classified in stockholders ' equity . changes in fair value of derivative liabilities were recorded in the consolidated statement of operations under the caption change in fair value of warrant liabilities. warrants that are not considered derivative liabilities are accounted 32 for at fair value at the date of issuance in additional paid-in capital . the fair value of warrants is determined using the black-scholes option-pricing model using assumptions regarding volatility of our common share price , remaining life of the warrant , and risk-free interest rates at each period end . stock-based compensation . stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the service period , which generally represents the vesting period . for awards that have performance based vesting conditions we recognize the expense over the estimated period that the awards are expected to be earned . we generally use the black-scholes option-pricing model to calculate the grant date fair value of stock options . the expense recognized over the service period is required to include an estimate of the awards that will be forfeited . research and development expenses . costs associated with research and development are expensed as incurred . research and development expenses include , among other costs , salaries and other personnel-related costs , and costs incurred by outside laboratories and other accredited facilities in connection with clinical trials and preclinical studies . contingencies . at the date of issuance , our series c super dividend convertible preferred stock ( series c ) have an embedded dividend right to continue to receive dividend

