pursuant to this license agreement , pfizer will assume the majority of the costs associated with 25 completing the required clinical trials for this program as well as obtaining u.s. food and drug administration ( fda ) approval of the respective new drug application ( nda ) . under the license agreement , we are obligated to conduct additional activities in support of this program , which will include completing the second cohort of the current phase i trial and supporting the transition of the program to pfizer . we expect to complete these activities in the first half of 2013. the most advanced product candidate in our development portfolio is rg1068 , a synthetic human hormone being developed as a novel imaging agent for the improved detection of pancreatic duct abnormalities in combination with magnetic resonance imaging in patients with pancreatitis and potentially other pancreatic diseases . we submitted an nda to the fda and a marketing authorization application ( maa ) to the european medicines agency ( ema ) in the first quarter of 2012. in the second quarter of 2012 , we received a complete response letter from the fda , indicating the need for additional clinical efficacy and safety trial data . we are currently working with the fda on the details of an additional phase iii trial . we believe providing certainty as to the requirements of this additional phase iii trial may be an important factor in the decision by third-parties that may wish to pursue a development or commercialization agreement with us for rg1068 . our third clinical development program was targeted at friedrich 's ataxia and led by rg2833 , a class i histone deacetylase ( hdac ) inhibitor . rg2833 has received orphan drug designation from the fda and european commission . we initiated a single , ascending dose phase 1 study of rg2833 in friedreich 's ataxia patients in italy in the fourth quarter of 2012 and expect to complete this trial in the first half of 2013. we believe the results of this trial may be an important consideration for any third-party that may wish to pursue a development or commercialization agreement with us for rg2833 . we expect that any additional development activities that we may pursue in the future will be largely supported by sponsors or collaborators . on april 7 , 2008 , we entered into a settlement agreement with bristol in connection with a patent infringement lawsuit we filed against bristol . under the terms of the agreement , bristol is obligated to pay us royalties on its u.s. net sales of orencia ® for any clinical indication at a rate of 1.8 % for the first $ 500,000,000 of annual sales , 2.0 % for the next $ 500,000,000 of annual sales and 4 % of annual sales in excess of $ 1 billion . under the terms of the agreement , we will not receive any future royalties on bristol 's sales of orencia ® made after december 31 , 2013. total revenue for the fiscal year ended december 31 , 2012 increased as compared to the nine-month fiscal year ended december 31 , 2011 and is primarily due to the acquisition of the novozymes business as well as increased royalty revenue from bristol as their product orencia ® continues to penetrate the market . critical accounting policies and estimates while our significant accounting policies are more fully described in the notes to our financial statements , we have identified the policies and estimates below as being critical to our business operations and the understanding of our results of operations . the impact of and any associated risks related to these policies on our business operations are discussed throughout management 's discussion and analysis of financial condition ,  including in the results of operations section , where such policies affect our reported and expected financial results . revenue recognition product sales we generate revenue from the sale of products , licensing transactions and research and development collaborations . our product revenues are from the sale of bioprocessing products to customers in the life science and biopharmaceutical industries . we recognize revenue related to product sales upon delivery of the product to the customer as long as there is persuasive evidence of an arrangement , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . determination of whether these criteria have been 26 met are based on management 's judgments primarily regarding the fixed nature of the fee charged for the product delivered and the collectability of those fees . we have a few longstanding customers who comprise the majority of revenue and have excellent payment histories and therefore we do not require collateral . we have had no significant write-offs of uncollectible invoices in the periods presented . at the time of sale , we also evaluate the need to accrue for warranty and sales returns . the supply agreements we have with our customers and related purchase orders identify the terms and conditions of each sale and the price of the goods ordered . due to the nature of the sales arrangements , inventory produced for sale is tested for quality specifications prior to shipment . since the product is manufactured to order and in compliance with required specifications prior to shipment , the likelihood of sales return , warranty or other issues is largely diminished . sales returns and warranty issues are infrequent and have had nominal impact on our financial statements historically . orencia royalty in april 2008 , we settled our outstanding litigation with bristol and began recognizing royalty revenue from that settlement in fiscal year 2009 for bristol 's net sales in the united states of orencia ® , which is used in the treatment of rheumatoid arthritis . story_separator_special_tag these expenses are determined by contracts in place for those services and communications with project managers on costs that have been incurred as of each reporting date ; and professional and consulting fees incurred with law firms , audit and accounting service providers and other third party consultants . these expenses are determined by either requesting those service providers to estimate unbilled services at each reporting date for services incurred or tracking costs incurred by service providers under fixed fee arrangements . we have processes in place to estimate the appropriate amounts to record for accrued liabilities , which principally involve the applicable personnel reviewing the services provided . in the event that we do not identify certain costs that have begun to be incurred or we under or over-estimate the level of services performed or the costs of such services , the reported expenses for that period may be too low or too high . the date on which certain services commence , the level of services performed on or before a given date , and the cost of such services often require the exercise of judgment . we make these judgments based upon the facts and circumstances known at the date of the financial statements . a change in the estimated cost or volume of services provided could result in additional accrued liabilities . any significant unanticipated changes in such estimates could have a significant impact on our accrued liabilities and reported operating results . there have been no material adjustments to our accrued liabilities in any of the periods presented in the accompanying financial statements . stock-based compensation we use the black-scholes option pricing model to calculate the fair value of share-based awards on the grant date . 31 the expected term of options granted represents the period of time for which the options are expected to be outstanding and is derived from our historical stock option exercise experience and option expiration data . accordingly , the expected term is presumed to be the midpoint between the vesting date and the end of the contractual term . in addition , for purposes of estimating the expected term , we have aggregated all individual option awards into one group as we do not expect substantial differences in exercise behavior among our employees . the expected volatility is a measure of the amount by which our stock price is expected to fluctuate during the expected term of options granted . we determined the expected volatility based upon the historical volatility of our common stock over a period commensurate with the option 's expected term , exclusive of any events not reasonably anticipated to recur over the option 's expected term . the risk-free interest rate is the implied yield available on u.s. treasury zero-coupon issues with a remaining term equal to the option 's expected term on the grant date . we have never declared or paid any cash dividends on any of our capital stock and do not expect to do so in the foreseeable future . accordingly , we use an expected dividend yield of zero to calculate the grant-date fair value of a stock option . we recognize compensation expense on a straight-line basis over the requisite service period based upon options that are ultimately expected to vest , and accordingly , such compensation expense has been adjusted by an amount of estimated forfeitures . forfeitures represent only the unvested portion of a surrendered option . forfeitures are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . based on an analysis of historical data , we have calculated an 8 % annual forfeiture rate for non-executive level employees , a 3 % annual forfeiture rate for executive level employees , and a 0 % forfeiture rate for non-employee members of the board of directors , which we believe is a reasonable assumption to estimate forfeitures . however , the estimation of forfeitures requires significant judgment and , to the extent actual results or updated estimates differ from our current estimates , such amounts will be recorded as a cumulative adjustment in the period estimates are revised . for the fiscal year ended december 31 , 2012 , we recorded stock-based compensation expense of approximately $ 1,024,000. for the nine-month fiscal year ended december 31 , 2011 and the nine-month period ended december 31 , 2010 , we recorded stock-based compensation expense of approximately $ 730,000 and $ 748,000 , respectively , for stock options granted under the second amended and restated 2001 repligen corporation stock plan ( the 2001 plan ) . for the fiscal year ended march 31 , 2011 , we recorded stock-based compensation expense of approximately $ 1,003,000 for stock options granted under the 2001 plan . as of december 31 , 2012 , there was $ 1,605,995 of total unrecognized compensation cost related to unvested share-based awards . this cost is expected to be recognized over a weighted average remaining requisite service period of 2.76 years . we expect 739,009 unvested options to vest over the next five years . income taxes as of september 30 , 2012 , our u.s. net operating losses ( nol's ) and other deferred tax assets were fully offset by a valuation allowance primarily because we were in a cumulative loss position and did not have sufficient history of income to conclude that it was more likely than not that we would be able to realize the tax benefits of those deferred tax assets . in the fourth quarter of 2012 , we entered into a three-year cumulative pre-tax income position and concluded that it was more likely than not that we will generate sufficient taxable income in 2013 based on our 2013 projections to realize the tax benefit of a portion of our deferred tax assets . as such , we reversed $ 3,021,000 of the deferred tax asset valuation allowance

liquidity and capital resources we have financed our operations primarily through sales of equity securities , revenues derived from product sales , and research grants , as well as proceeds and royalties from license arrangements and a litigation settlement . our revenue for the foreseeable future will be limited to our bioprocessing product revenue , royalties from bristol 's sales of orencia ® through december 31 , 2013 , and research and development grants . given the uncertainties related to pharmaceutical product development , we are currently unable to reliably estimate when , if ever , our therapeutic product candidates will generate revenue and cash flows . at december 31 , 2012 , we had cash and marketable securities of $ 49,970,000 compared to $ 36,025,000 at december 31 , 2011. a deposit for leased office space of $ 200,000 is classified as restricted cash and is not included in cash and marketable securities total for december 31 , 2012 or december 31 , 2011. cash flows replace_table_token_5_th operating activities for fiscal 2012 , our operating activities provided cash of $ 13,440,000 reflecting net income of $ 14,156,000 and non-cash charges totaling $ 2,383,000 including depreciation , amortization , stock-based compensation 37 charges , deferred tax asset valuation allowance changes , the revaluation of contingent consideration and the gain on bargain purchase .


 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 we have financed our operations primarily through sales of equity securities , revenues derived from product sales , and research grants , as well as proceeds and royalties from license arrangements and a litigation settlement . our revenue for the foreseeable future will be limited to our bioprocessing product revenue , royalties from bristol 's sales of orencia ® through december 31 , 2013 , and research and development grants . given the uncertainties related to pharmaceutical product development , we are currently unable to reliably estimate when , if ever , our therapeutic product candidates will generate revenue and cash flows . at december 31 , 2012 , we had cash and marketable securities of $ 49,970,000 compared to $ 36,025,000 at december 31 , 2011. a deposit for leased office space of $ 200,000 is classified as restricted cash and is not included in cash and marketable securities total for december 31 , 2012 or december 31 , 2011. cash flows replace_table_token_5_th operating activities for fiscal 2012 , our operating activities provided cash of $ 13,440,000 reflecting net income of $ 14,156,000 and non-cash charges totaling $ 2,383,000 including depreciation , amortization , stock-based compensation 37 charges , deferred tax asset valuation allowance changes , the revaluation of contingent consideration and the gain on bargain purchase .
```    
 Suspicious Activity Report : pursuant to this license agreement , pfizer will assume the majority of the costs associated with 25 completing the required clinical trials for this program as well as obtaining u.s. food and drug administration ( fda ) approval of the respective new drug application ( nda ) . under the license agreement , we are obligated to conduct additional activities in support of this program , which will include completing the second cohort of the current phase i trial and supporting the transition of the program to pfizer . we expect to complete these activities in the first half of 2013. the most advanced product candidate in our development portfolio is rg1068 , a synthetic human hormone being developed as a novel imaging agent for the improved detection of pancreatic duct abnormalities in combination with magnetic resonance imaging in patients with pancreatitis and potentially other pancreatic diseases . we submitted an nda to the fda and a marketing authorization application ( maa ) to the european medicines agency ( ema ) in the first quarter of 2012. in the second quarter of 2012 , we received a complete response letter from the fda , indicating the need for additional clinical efficacy and safety trial data . we are currently working with the fda on the details of an additional phase iii trial . we believe providing certainty as to the requirements of this additional phase iii trial may be an important factor in the decision by third-parties that may wish to pursue a development or commercialization agreement with us for rg1068 . our third clinical development program was targeted at friedrich 's ataxia and led by rg2833 , a class i histone deacetylase ( hdac ) inhibitor . rg2833 has received orphan drug designation from the fda and european commission . we initiated a single , ascending dose phase 1 study of rg2833 in friedreich 's ataxia patients in italy in the fourth quarter of 2012 and expect to complete this trial in the first half of 2013. we believe the results of this trial may be an important consideration for any third-party that may wish to pursue a development or commercialization agreement with us for rg2833 . we expect that any additional development activities that we may pursue in the future will be largely supported by sponsors or collaborators . on april 7 , 2008 , we entered into a settlement agreement with bristol in connection with a patent infringement lawsuit we filed against bristol . under the terms of the agreement , bristol is obligated to pay us royalties on its u.s. net sales of orencia ® for any clinical indication at a rate of 1.8 % for the first $ 500,000,000 of annual sales , 2.0 % for the next $ 500,000,000 of annual sales and 4 % of annual sales in excess of $ 1 billion . under the terms of the agreement , we will not receive any future royalties on bristol 's sales of orencia ® made after december 31 , 2013. total revenue for the fiscal year ended december 31 , 2012 increased as compared to the nine-month fiscal year ended december 31 , 2011 and is primarily due to the acquisition of the novozymes business as well as increased royalty revenue from bristol as their product orencia ® continues to penetrate the market . critical accounting policies and estimates while our significant accounting policies are more fully described in the notes to our financial statements , we have identified the policies and estimates below as being critical to our business operations and the understanding of our results of operations . the impact of and any associated risks related to these policies on our business operations are discussed throughout management 's discussion and analysis of financial condition ,  including in the results of operations section , where such policies affect our reported and expected financial results . revenue recognition product sales we generate revenue from the sale of products , licensing transactions and research and development collaborations . our product revenues are from the sale of bioprocessing products to customers in the life science and biopharmaceutical industries . we recognize revenue related to product sales upon delivery of the product to the customer as long as there is persuasive evidence of an arrangement , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . determination of whether these criteria have been 26 met are based on management 's judgments primarily regarding the fixed nature of the fee charged for the product delivered and the collectability of those fees . we have a few longstanding customers who comprise the majority of revenue and have excellent payment histories and therefore we do not require collateral . we have had no significant write-offs of uncollectible invoices in the periods presented . at the time of sale , we also evaluate the need to accrue for warranty and sales returns . the supply agreements we have with our customers and related purchase orders identify the terms and conditions of each sale and the price of the goods ordered . due to the nature of the sales arrangements , inventory produced for sale is tested for quality specifications prior to shipment . since the product is manufactured to order and in compliance with required specifications prior to shipment , the likelihood of sales return , warranty or other issues is largely diminished . sales returns and warranty issues are infrequent and have had nominal impact on our financial statements historically . orencia royalty in april 2008 , we settled our outstanding litigation with bristol and began recognizing royalty revenue from that settlement in fiscal year 2009 for bristol 's net sales in the united states of orencia ® , which is used in the treatment of rheumatoid arthritis . story_separator_special_tag these expenses are determined by contracts in place for those services and communications with project managers on costs that have been incurred as of each reporting date ; and professional and consulting fees incurred with law firms , audit and accounting service providers and other third party consultants . these expenses are determined by either requesting those service providers to estimate unbilled services at each reporting date for services incurred or tracking costs incurred by service providers under fixed fee arrangements . we have processes in place to estimate the appropriate amounts to record for accrued liabilities , which principally involve the applicable personnel reviewing the services provided . in the event that we do not identify certain costs that have begun to be incurred or we under or over-estimate the level of services performed or the costs of such services , the reported expenses for that period may be too low or too high . the date on which certain services commence , the level of services performed on or before a given date , and the cost of such services often require the exercise of judgment . we make these judgments based upon the facts and circumstances known at the date of the financial statements . a change in the estimated cost or volume of services provided could result in additional accrued liabilities . any significant unanticipated changes in such estimates could have a significant impact on our accrued liabilities and reported operating results . there have been no material adjustments to our accrued liabilities in any of the periods presented in the accompanying financial statements . stock-based compensation we use the black-scholes option pricing model to calculate the fair value of share-based awards on the grant date . 31 the expected term of options granted represents the period of time for which the options are expected to be outstanding and is derived from our historical stock option exercise experience and option expiration data . accordingly , the expected term is presumed to be the midpoint between the vesting date and the end of the contractual term . in addition , for purposes of estimating the expected term , we have aggregated all individual option awards into one group as we do not expect substantial differences in exercise behavior among our employees . the expected volatility is a measure of the amount by which our stock price is expected to fluctuate during the expected term of options granted . we determined the expected volatility based upon the historical volatility of our common stock over a period commensurate with the option 's expected term , exclusive of any events not reasonably anticipated to recur over the option 's expected term . the risk-free interest rate is the implied yield available on u.s. treasury zero-coupon issues with a remaining term equal to the option 's expected term on the grant date . we have never declared or paid any cash dividends on any of our capital stock and do not expect to do so in the foreseeable future . accordingly , we use an expected dividend yield of zero to calculate the grant-date fair value of a stock option . we recognize compensation expense on a straight-line basis over the requisite service period based upon options that are ultimately expected to vest , and accordingly , such compensation expense has been adjusted by an amount of estimated forfeitures . forfeitures represent only the unvested portion of a surrendered option . forfeitures are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . based on an analysis of historical data , we have calculated an 8 % annual forfeiture rate for non-executive level employees , a 3 % annual forfeiture rate for executive level employees , and a 0 % forfeiture rate for non-employee members of the board of directors , which we believe is a reasonable assumption to estimate forfeitures . however , the estimation of forfeitures requires significant judgment and , to the extent actual results or updated estimates differ from our current estimates , such amounts will be recorded as a cumulative adjustment in the period estimates are revised . for the fiscal year ended december 31 , 2012 , we recorded stock-based compensation expense of approximately $ 1,024,000. for the nine-month fiscal year ended december 31 , 2011 and the nine-month period ended december 31 , 2010 , we recorded stock-based compensation expense of approximately $ 730,000 and $ 748,000 , respectively , for stock options granted under the second amended and restated 2001 repligen corporation stock plan ( the 2001 plan ) . for the fiscal year ended march 31 , 2011 , we recorded stock-based compensation expense of approximately $ 1,003,000 for stock options granted under the 2001 plan . as of december 31 , 2012 , there was $ 1,605,995 of total unrecognized compensation cost related to unvested share-based awards . this cost is expected to be recognized over a weighted average remaining requisite service period of 2.76 years . we expect 739,009 unvested options to vest over the next five years . income taxes as of september 30 , 2012 , our u.s. net operating losses ( nol's ) and other deferred tax assets were fully offset by a valuation allowance primarily because we were in a cumulative loss position and did not have sufficient history of income to conclude that it was more likely than not that we would be able to realize the tax benefits of those deferred tax assets . in the fourth quarter of 2012 , we entered into a three-year cumulative pre-tax income position and concluded that it was more likely than not that we will generate sufficient taxable income in 2013 based on our 2013 projections to realize the tax benefit of a portion of our deferred tax assets . as such , we reversed $ 3,021,000 of the deferred tax asset valuation allowance

