in june 2013 , following the clinical hold , we extended the development period for which we received funds from united from 6.5 years to 11.5 years . the license fee will be recognized on a straight line basis as revenue over the estimated development period . cost of revenues cost of revenues decreased by 45 % from $ 20,000 for the year ended june 30 , 2013 to $ 11,000 for the year ended june 30 , 2014. cost of revenues decreased by 5 % from $ 21,000 for the year ended june 30 , 2012 to $ 20,000 for the year ended june 30 , 2013. all such cost of revenues is derived from the united agreement and reflects the royalties we are obligated to pay the ocs . the reductions in the years ended june 30 , 2013 and 2014 are a result of the re-evaluation we did for the development period under the united agreement . as described above , following the clinical hold we extended the development period for which we received funds from united from 6.5 years to 11.5 years . research and development net research and development net costs ( costs less participation and grants by the ocs and other parties ) , for the year ended june 30 , 2014 increased by 13 % to $ 19,542,000 from $ 17,233,000 for the year ended june 30 , 2013. this increase is attributed to the material increase in our in-house research and development activity , increase in our salaries due to , among other things , an increase of 45 employees as compared to the average number of employees in the year ended june 2013 , an increase in our depreciation expenses and an increase in our rent and maintenance expenses , offset by an increase in ocs participation . this increase in ocs participation is attributable to the fact that due to a delay in the approval of the ocs grant for 2013 , we recognized $ 5,396,000 in fiscal year 2014 compared to $ 2,673,000 in fiscal year 2013. research and development net costs ( costs less participation and grants by the ocs and other parties ) , for the year ended june 30 , 2013 increased by 88 % to $ 17,233,000 from $ 9,158,000 for the year ended june 30 , 2012. this increase is mainly due to the increase in our research and development activities during the fiscal year 2013 , and more specifically is attributed to the increase in our clinical trials expenses , salaries , lab materials expenses and consultants and subcontractor expenses , including hiring 46 new employees since june 30 , 2012 . 27 general and administrative general and administrative expenses increased by 54 % from $ 5,649,000 for the year ended june 30 , 2013 to $ 8,676,000 for the year ended june 30 , 2014. this is primarily driven by an increase in stock-based compensation expenses related to our employees and directors , due to timing of grants made to directors , and an increase in our salaries due to , among other things , an increase of 6 employees as compared to the average number of employees in the year ended june 2013. general and administrative expenses decreased by 14 % from $ 6,568,000 for the year ended june 30 , 2012 to $ 5,649,000 for the year ended june 30 , 2013. this decrease is mainly due to a decrease in stock-based compensation expenses related to our employees and consultants . financial income , net financial income decreased from $ 1,068,000 for the year ended june 30 , 2013 to $ 918,000 for the year ended june 30 , 2014. the decrease is mainly due to a decrease in gains from hedging instruments and interest income on deposits over the past fiscal year , offset by an increase in our gain from marketable securities . financial income increased from $ 237,000 for the year ended june 30 , 2012 to $ 1,068,000 for the year ended june 30 , 2013. the increase is mainly due to an increase in gains from hedging instruments and changes in exchange rates over the past fiscal year . net loss net loss for the year ended june 30 , 2014 was $ 26,932,000 as compared to a net loss of $ 21,155,000 for the year ended june 30 , 2013. net loss per share for the year ended june 30 , 2014 was $ 0.42 , as compared to $ 0.38 for the year ended june 30 , 2013. the net loss per share increased as a result of the increase in our net loss , offset by the increase in our weighted average number of shares due to the issuance of additional shares , mainly the shares issued to cha in december 2013 and the shares issued under an at market issuance sales agreement ( atm agreement ) . net loss for the year ended june 30 , 2013 was $ 21,155,000 as compared to net loss of $ 14,794,000 for the year ended june 30 , 2012. net loss per share for the year ended june 30 , 2013 was $ 0.38 , as compared to $ 0.34 for the year ended june 30 , 2012. the net loss per share increased as a result of the increase in our net loss , offset by the increase in our weighted average number of shares due to the issuance of additional shares , mainly as part of a public offering we consummated in september 2012. story_separator_special_tag 0pt ; margin-right : 0pt `` > during the years that ended june 30 , 2014 , 2013 and 2012 we received approximately $ 3,243,000 , $ 1,452,000 and $ 3,156,000 , respectively , from the ocs towards our research and development expenses . story_separator_special_tag the grant will be used to cover research and development expenses for the period january 1 , 2014 to december 31 , 2014. in addition , the european authorities approved a research grant under the fp7 in the amount of approximately 92,955 for a period of 5 years which began on january 1 , 2011. we believe that we have sufficient cash to fund our operations for at least the next 12 months . application of critical accounting policies our significant accounting policies are more fully described in note 2 to our consolidated financial statements appearing in this annual report . we believe that the accounting policies below are critical for one to fully understand and evaluate our financial condition and results of operations . the discussion and analysis of our financial condition and results of operations is based on our financial statements , which we prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . revenue recognition from the united agreement we recognize revenue pursuant to the license agreement with united in accordance with asc 605-25 , `` revenue recognition , multiple-element arrangements `` . pursuant to asc 605-25 , each deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “ stand-alone value ” to the customer . the arrangement 's consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . we received an up-front , non-refundable license payment of $ 5,000,000. additional payments totaling $ 37,500,000 are subject to the achievement of certain regulatory milestones by united . since the deliverables in the united agreement do not have stand-alone value , none of them qualifies as a separate unit of accounting . accordingly , the non-refundable upfront license fee of $ 5,000,000 is deferred and recognized on a straight line basis over the related performance period which is the development period in accordance with staff accounting bulletin ( “ sab ” ) no . 104 , `` revenue recognition `` . we assessed the remaining performance period under the united agreement at 8.5 years as of june 30 , 2014. the additional regulatory milestones payments will be recognized upon the achievement of futures events by united , in accordance with asc 450-30-25 , “ gain contingencies `` . as of june 30 , 2014 , no regulatory milestones were achieved . we also received an advance payment for the development of $ 2,000,000 that will be deductible against development expenses as it accrued . the upfront payment which was received and has not yet fully recognized in the statement of operations , is included in the balance sheet as advance payment . part of the expenses related to the development , on a cost basis , shall be repaid to the company by united according to the applicable license agreement . we are deducting the payments from research and development expenses in accordance with asc 730-20 , `` research and development agreements `` . as of june 30 , 2014 , we deducted an amount of approximately $ 1,753,000 . 31 stock-based compensation stock-based compensation is considered critical accounting policy due to the significant expenses of restricted stock units which were granted to our employees , directors and consultants . in fiscal year 2014 , we recorded stock-based compensation expenses related to restricted stock units in the amount of $ 5,840,000. in accordance with asc 718 , `` compensation-stock compensation `` ( asc 718 ) , restricted shares units to employees and directors are measured at their fair value on the grant date . all restricted shares units granted in 2014 and 2013 were granted for no consideration ; therefore their fair value was equal to the share price at the date of grant , based on the close trading price of our shares known at the grant date . the restricted shares units to non-employees consultants are remeasured in any future vesting period for the unvested portion of the grants . the value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in our consolidated statements of operations . we have graded vesting based on the accelerated method over the requisite service period of each of the awards . the expected pre-vesting forfeiture rate affects the number of the shares . based on our historical experience , the pre-vesting forfeiture rate per grant is 7 % for the shares granted to employees and 0 % for the shares granted to our directors , officers and non-employees consultants . marketable securities marketable securities consist of corporate bonds , government bonds and stocks . we determine the appropriate classification of marketable securities at the time of purchase and re-evaluate such designation at each balance sheet date . in accordance with asc no . 320 , `` investment debt and equity securities , `` we classify marketable securities as available-for-sale . available-for-sale securities are stated at fair value , with unrealized gains and losses reported in accumulated other comprehensive income ( loss ) , a separate component of stockholders ' equity . realized gains and losses on

liquidity and capital resources as of june 30 , 2014 , our total current assets were $ 61,987,000 and our total current liabilities were $ 7,397,000. on june 30 , 2014 , we had a working capital surplus of $ 54,590,000 and an accumulated deficit of $ 113,834,000. as of june 30 , 2013 , our total current assets were $ 55,085,000 and our total current liabilities were $ 5,921,000. on june 30 , 2013 , we had a working capital surplus of $ 49,164,000 and an accumulated deficit of $ 86,902,000. our cash and cash equivalents as of june 30 , 2014 amounted to $ 4,493,000. this is a decrease of $ 4,514,000 from the $ 9,007,000 reported as of june 30 , 2013. cash balances decreased in the year ended june 30 , 2014 for the reasons presented below : operating activities used cash of $ 19,121,000 in the year ended june 30 , 2014. cash used by operating activities in the year ended june 30 , 2014 primarily consisted of payments of salaries to our employees , and payments of fees to our consultants , suppliers , subcontractors , and professional services providers including the costs of clinical studies , offset by an ocs grant . 28 investing activities provided cash of $ 1,983,000 in the year ended june 30 , 2014. the investing activities consisted primarily of withdrawal of $ 7,421,000 of short-term deposits and proceeds of $ 6,867,000 from the sale and redemption of marketable securities , offset by investing $ 10,851,000 in marketable securities and the purchase of property and equipment for $ 1,573,000. financing activities generated cash in the amount of $ 12,624,000 during the year ended june 30 , 2014. the financing activities are primarily attributable to net proceeds of $ 10,644,000 from issuing shares of our common stock under the atm agreement as described below , and from exercises of warrants by shareholders .


 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 of june 30 , 2014 , our total current assets were $ 61,987,000 and our total current liabilities were $ 7,397,000. on june 30 , 2014 , we had a working capital surplus of $ 54,590,000 and an accumulated deficit of $ 113,834,000. as of june 30 , 2013 , our total current assets were $ 55,085,000 and our total current liabilities were $ 5,921,000. on june 30 , 2013 , we had a working capital surplus of $ 49,164,000 and an accumulated deficit of $ 86,902,000. our cash and cash equivalents as of june 30 , 2014 amounted to $ 4,493,000. this is a decrease of $ 4,514,000 from the $ 9,007,000 reported as of june 30 , 2013. cash balances decreased in the year ended june 30 , 2014 for the reasons presented below : operating activities used cash of $ 19,121,000 in the year ended june 30 , 2014. cash used by operating activities in the year ended june 30 , 2014 primarily consisted of payments of salaries to our employees , and payments of fees to our consultants , suppliers , subcontractors , and professional services providers including the costs of clinical studies , offset by an ocs grant . 28 investing activities provided cash of $ 1,983,000 in the year ended june 30 , 2014. the investing activities consisted primarily of withdrawal of $ 7,421,000 of short-term deposits and proceeds of $ 6,867,000 from the sale and redemption of marketable securities , offset by investing $ 10,851,000 in marketable securities and the purchase of property and equipment for $ 1,573,000. financing activities generated cash in the amount of $ 12,624,000 during the year ended june 30 , 2014. the financing activities are primarily attributable to net proceeds of $ 10,644,000 from issuing shares of our common stock under the atm agreement as described below , and from exercises of warrants by shareholders .
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 Suspicious Activity Report : in june 2013 , following the clinical hold , we extended the development period for which we received funds from united from 6.5 years to 11.5 years . the license fee will be recognized on a straight line basis as revenue over the estimated development period . cost of revenues cost of revenues decreased by 45 % from $ 20,000 for the year ended june 30 , 2013 to $ 11,000 for the year ended june 30 , 2014. cost of revenues decreased by 5 % from $ 21,000 for the year ended june 30 , 2012 to $ 20,000 for the year ended june 30 , 2013. all such cost of revenues is derived from the united agreement and reflects the royalties we are obligated to pay the ocs . the reductions in the years ended june 30 , 2013 and 2014 are a result of the re-evaluation we did for the development period under the united agreement . as described above , following the clinical hold we extended the development period for which we received funds from united from 6.5 years to 11.5 years . research and development net research and development net costs ( costs less participation and grants by the ocs and other parties ) , for the year ended june 30 , 2014 increased by 13 % to $ 19,542,000 from $ 17,233,000 for the year ended june 30 , 2013. this increase is attributed to the material increase in our in-house research and development activity , increase in our salaries due to , among other things , an increase of 45 employees as compared to the average number of employees in the year ended june 2013 , an increase in our depreciation expenses and an increase in our rent and maintenance expenses , offset by an increase in ocs participation . this increase in ocs participation is attributable to the fact that due to a delay in the approval of the ocs grant for 2013 , we recognized $ 5,396,000 in fiscal year 2014 compared to $ 2,673,000 in fiscal year 2013. research and development net costs ( costs less participation and grants by the ocs and other parties ) , for the year ended june 30 , 2013 increased by 88 % to $ 17,233,000 from $ 9,158,000 for the year ended june 30 , 2012. this increase is mainly due to the increase in our research and development activities during the fiscal year 2013 , and more specifically is attributed to the increase in our clinical trials expenses , salaries , lab materials expenses and consultants and subcontractor expenses , including hiring 46 new employees since june 30 , 2012 . 27 general and administrative general and administrative expenses increased by 54 % from $ 5,649,000 for the year ended june 30 , 2013 to $ 8,676,000 for the year ended june 30 , 2014. this is primarily driven by an increase in stock-based compensation expenses related to our employees and directors , due to timing of grants made to directors , and an increase in our salaries due to , among other things , an increase of 6 employees as compared to the average number of employees in the year ended june 2013. general and administrative expenses decreased by 14 % from $ 6,568,000 for the year ended june 30 , 2012 to $ 5,649,000 for the year ended june 30 , 2013. this decrease is mainly due to a decrease in stock-based compensation expenses related to our employees and consultants . financial income , net financial income decreased from $ 1,068,000 for the year ended june 30 , 2013 to $ 918,000 for the year ended june 30 , 2014. the decrease is mainly due to a decrease in gains from hedging instruments and interest income on deposits over the past fiscal year , offset by an increase in our gain from marketable securities . financial income increased from $ 237,000 for the year ended june 30 , 2012 to $ 1,068,000 for the year ended june 30 , 2013. the increase is mainly due to an increase in gains from hedging instruments and changes in exchange rates over the past fiscal year . net loss net loss for the year ended june 30 , 2014 was $ 26,932,000 as compared to a net loss of $ 21,155,000 for the year ended june 30 , 2013. net loss per share for the year ended june 30 , 2014 was $ 0.42 , as compared to $ 0.38 for the year ended june 30 , 2013. the net loss per share increased as a result of the increase in our net loss , offset by the increase in our weighted average number of shares due to the issuance of additional shares , mainly the shares issued to cha in december 2013 and the shares issued under an at market issuance sales agreement ( atm agreement ) . net loss for the year ended june 30 , 2013 was $ 21,155,000 as compared to net loss of $ 14,794,000 for the year ended june 30 , 2012. net loss per share for the year ended june 30 , 2013 was $ 0.38 , as compared to $ 0.34 for the year ended june 30 , 2012. the net loss per share increased as a result of the increase in our net loss , offset by the increase in our weighted average number of shares due to the issuance of additional shares , mainly as part of a public offering we consummated in september 2012. story_separator_special_tag 0pt ; margin-right : 0pt `` > during the years that ended june 30 , 2014 , 2013 and 2012 we received approximately $ 3,243,000 , $ 1,452,000 and $ 3,156,000 , respectively , from the ocs towards our research and development expenses . story_separator_special_tag the grant will be used to cover research and development expenses for the period january 1 , 2014 to december 31 , 2014. in addition , the european authorities approved a research grant under the fp7 in the amount of approximately 92,955 for a period of 5 years which began on january 1 , 2011. we believe that we have sufficient cash to fund our operations for at least the next 12 months . application of critical accounting policies our significant accounting policies are more fully described in note 2 to our consolidated financial statements appearing in this annual report . we believe that the accounting policies below are critical for one to fully understand and evaluate our financial condition and results of operations . the discussion and analysis of our financial condition and results of operations is based on our financial statements , which we prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . revenue recognition from the united agreement we recognize revenue pursuant to the license agreement with united in accordance with asc 605-25 , `` revenue recognition , multiple-element arrangements `` . pursuant to asc 605-25 , each deliverable is evaluated to determine whether it qualifies as a separate unit of accounting based on whether the deliverable has “ stand-alone value ” to the customer . the arrangement 's consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . we received an up-front , non-refundable license payment of $ 5,000,000. additional payments totaling $ 37,500,000 are subject to the achievement of certain regulatory milestones by united . since the deliverables in the united agreement do not have stand-alone value , none of them qualifies as a separate unit of accounting . accordingly , the non-refundable upfront license fee of $ 5,000,000 is deferred and recognized on a straight line basis over the related performance period which is the development period in accordance with staff accounting bulletin ( “ sab ” ) no . 104 , `` revenue recognition `` . we assessed the remaining performance period under the united agreement at 8.5 years as of june 30 , 2014. the additional regulatory milestones payments will be recognized upon the achievement of futures events by united , in accordance with asc 450-30-25 , “ gain contingencies `` . as of june 30 , 2014 , no regulatory milestones were achieved . we also received an advance payment for the development of $ 2,000,000 that will be deductible against development expenses as it accrued . the upfront payment which was received and has not yet fully recognized in the statement of operations , is included in the balance sheet as advance payment . part of the expenses related to the development , on a cost basis , shall be repaid to the company by united according to the applicable license agreement . we are deducting the payments from research and development expenses in accordance with asc 730-20 , `` research and development agreements `` . as of june 30 , 2014 , we deducted an amount of approximately $ 1,753,000 . 31 stock-based compensation stock-based compensation is considered critical accounting policy due to the significant expenses of restricted stock units which were granted to our employees , directors and consultants . in fiscal year 2014 , we recorded stock-based compensation expenses related to restricted stock units in the amount of $ 5,840,000. in accordance with asc 718 , `` compensation-stock compensation `` ( asc 718 ) , restricted shares units to employees and directors are measured at their fair value on the grant date . all restricted shares units granted in 2014 and 2013 were granted for no consideration ; therefore their fair value was equal to the share price at the date of grant , based on the close trading price of our shares known at the grant date . the restricted shares units to non-employees consultants are remeasured in any future vesting period for the unvested portion of the grants . the value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in our consolidated statements of operations . we have graded vesting based on the accelerated method over the requisite service period of each of the awards . the expected pre-vesting forfeiture rate affects the number of the shares . based on our historical experience , the pre-vesting forfeiture rate per grant is 7 % for the shares granted to employees and 0 % for the shares granted to our directors , officers and non-employees consultants . marketable securities marketable securities consist of corporate bonds , government bonds and stocks . we determine the appropriate classification of marketable securities at the time of purchase and re-evaluate such designation at each balance sheet date . in accordance with asc no . 320 , `` investment debt and equity securities , `` we classify marketable securities as available-for-sale . available-for-sale securities are stated at fair value , with unrealized gains and losses reported in accumulated other comprehensive income ( loss ) , a separate component of stockholders ' equity . realized gains and losses on

