we currently have one marketed product , two products in phase 2 of clinical development and several products in pre-clinical development . results of operations comparison of years ended december 31 , 2011 and 2010 our licensing revenue for the year ended december 31 , 2011 was $ 1,181,000 as compared to $ 347,000 for the same period of 2010 , an increase of $ 834,000. we recognize licensing revenue over the period of the performance obligation under our licensing agreements . in the third quarter 2011 , we regained licenses from our former korean partner for prolindac and mugard and recognized all of the previously received license fees ( $ 849,000 ) that were recorded in deferred revenue . product sales of mugard in the united states totaled $ 548,000 for the year ended december 31 , 2011 as compared with $ 8,000 for the same period of 2010 , an increase of $ 540,000. our first sales were recorded in the fourth quarter of 2010. we recorded royalty revenue for mugard in europe of $ 89,000 for the year ended december 31 , 2011 as compared to $ 76,000 for the same period of 2010 , an increase of $ 13,000. sponsored research and development revenues were $ 30,000 for the year ended december 31 , 2011 as compared to $ 50,000 for the same period of 2010 , a decrease of $ 20,000. the revenues in 2011 and 2010 are for research various collaborations on our coboral and cobacyte projects . total research and development spending for the year ended december 31 , 2011 was $ 4,200,000 , as compared to $ 3,349,000 for the same period of 2010 , an increase of $ 851,000. the increase in expenses was primarily due to : · increased clinical development with trials for prolindac , mugard and thiarabine ( $ 610,000 ) ; · increased salary and related costs due to new employees ( $ 357,000 ) ; · increased external lab costs for coboral and cobacyte ( $ 152,000 ) · other net increases in research spending ( $ 76,000 ) . · decreased stock compensation expense for lower expense of option grants for research and development employees ( $ 194,000 ) ; and · lower external development expenses for prolindac ( $ 150,000 ) . the product was made in 2010 and is used in the clinical trials ongoing this year . product costs for mugard in the united states were $ 1,216,000 for the year ended december 31 , 2011 as compared to $ 140,000 for the same period in 2010 , an increase of $ 1,076,000. mugard was launched in the fourth quarter of 2010. total general and administrative expenses were $ 4,075,000 for the year ended december 31 , 2011 , a decrease of $ 436,000 compared to the same period in 2010 of $ 4,511,000. the decrease in expenses was due primarily to the following : · decreased general business consulting expenses due to the higher use of outside consultants in 2010 ( $ 967,000 ) versus the same period in 2011 ; · decreased patent and license fees ( $ 77,000 ) ; · decreased net other general and administrative expenses ( $ 23,000 ) ; 28 · increased salary and related costs ( $ 262,000 ) ; · increased stock compensation expense due to higher expense of option grants for general and administrative employees and directors ( $ 246,000 ) ; and · increased rent expenses ( $ 123,000 ) due to additional office space . depreciation and amortization was $ 233,000 for the year ended december 31 , 2011 as compared to $ 238,000 for the same period in 2010. total operating expenses for the year ended december 31 , 2011 were $ 9,727,000 as compared to total operating expenses of $ 8,238,000 for the same period of 2010 , an increase of $ 1,489,000 for the reasons listed above . interest and miscellaneous income was $ 1,334,000 for the year ended december 31 , 2011 as compared to $ 2,046,000 for the same period of 2010 , a decrease of $ 712,000. in 2010 , we recorded miscellaneous income for one time grants of $ 1,479,000 from qualifying therapeutic discovery project grants from the united states . miscellaneous income was $ 804,000 in 2011 due to negotiated payables and write-off of other accounts payable and offset by $ 37,000 of other miscellaneous income . interest income is comparable to the same period in 2010. interest and other expense was $ 963,000 for the year ended december 31 , 2011 as compared to $ 607,000 in the same period of 2010 , an increase of $ 356,000. the increase in interest and other expense was due to additional interest that was accrued on the long-term notes due to an increase in the interest rate of the note . we recorded a gain related to warrants classified as derivative liabilities of $ 3,580,000 for the year ended december 31 , 2011 as compared to $ 4,621,000 for the same period of 2010. a derivative for warrants was recorded in the fourth quarter of 2009 when the fair value of the warrants that were issued with our series a convertible preferred stock were reclassified from equity per the requirements of accounting guidance as a result of the repricing feature . we recorded a gain for the derivative liability related to preferred stock of $ 1,410,000 for the year ended december 31 , 2011 and a loss of $ 5,840,000 for the same period of 2010. the derivative was recorded for the first time in the third quarter of 2010 per the requirements of accounting guidance due to the possibility of repricingour series a convertible preferred stock if we sold our common stock at a price below the original conversion price . story_separator_special_tag preferred stock dividends of $ 1,774,000 were accrued for the year ended december 31 , 2011 and $ 1,791,000 for the same period of 2010 , a decrease of $ 17,000. the decrease is due to some preferred shareholders converting their ownership to common stock . dividends are due semi-annually in either cash or common stock . net loss allocable to common stockholders for the year ended december 31 , 2011 was $ 4,306,000 , or a $ 0.22 basic and diluted loss per common share , compared with net loss of $ 9,328,000 , or a $ 0.60 basic and diluted loss per common share for the same period in 2010 , a decreased loss of $ 5,022,000. story_separator_special_tag · competing technological developments ; · the cost of manufacturing and scale-up ; · the ability to establish and maintain effective commercialization arrangements and activities ; and · successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2011 . ( 2 ) includes : coboral , cobacyte , thiarabine and other projects . 30 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating income in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . asset impairment our intangible assets at december 31 , 2011 consisted primarily of patents acquired in acquisitions and licenses which were recorded at fair value on the acquisition date . we perform an impairment test when indications of impairment exist . at december 31 , 2011 and for the year then ended , management believes no impairment of our intangible assets exists . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2011 and 2010 , no allowance was recorded as all accounts are considered collectible . revenues our revenues are generated from licensing , research and development agreements , royalties and product sales . we recognize revenue in accordance with sec staff accounting bulletin no . 104 ( sab 104 ) , revenue recognition . license revenue is recognized over the remaining life of the underlying patent . research and development revenues are recognized as services are performed . royalties are recognized in the period of sales . we recognize revenue for mugard product sales at the time title transfers to our customers , which occurs at the time product is

liquidity and capital resources we have funded our operations primarily through private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . product sales and royalty revenues provided limited funding for operations during the year ended december 31 , 2011. as of december 31 , 2011 , our cash and cash equivalents were $ 2,460,000 and our net cash burn rate for the year ended december 31 , 2011 , was approximately $ 602,000 per month . as of december 31 , 2011 , our working capital deficit was $ 8,877,000. our working capital deficit at december 31 , 2011 represented an increase of $ 2,741,000 as compared to our working capital deficit as of december 31 , 2010 of $ 6,136,000. the increase in the working capital deficit at december 31 , 2011 reflects twelve months of net operating costs , repayment of $ 2.75 million of the outstanding loan offset by $ 5,826,000 net proceeds from the november 2011 private placement . as of december 31 , 2011 , we had one secured promissory note outstanding in the principal amount of $ 2.75 million that is due on september 13 , 2012. as of march 23 , 2012 , we did not have enough capital to achieve our long-term goals .


 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 funded our operations primarily through private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . product sales and royalty revenues provided limited funding for operations during the year ended december 31 , 2011. as of december 31 , 2011 , our cash and cash equivalents were $ 2,460,000 and our net cash burn rate for the year ended december 31 , 2011 , was approximately $ 602,000 per month . as of december 31 , 2011 , our working capital deficit was $ 8,877,000. our working capital deficit at december 31 , 2011 represented an increase of $ 2,741,000 as compared to our working capital deficit as of december 31 , 2010 of $ 6,136,000. the increase in the working capital deficit at december 31 , 2011 reflects twelve months of net operating costs , repayment of $ 2.75 million of the outstanding loan offset by $ 5,826,000 net proceeds from the november 2011 private placement . as of december 31 , 2011 , we had one secured promissory note outstanding in the principal amount of $ 2.75 million that is due on september 13 , 2012. as of march 23 , 2012 , we did not have enough capital to achieve our long-term goals .
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 Suspicious Activity Report : we currently have one marketed product , two products in phase 2 of clinical development and several products in pre-clinical development . results of operations comparison of years ended december 31 , 2011 and 2010 our licensing revenue for the year ended december 31 , 2011 was $ 1,181,000 as compared to $ 347,000 for the same period of 2010 , an increase of $ 834,000. we recognize licensing revenue over the period of the performance obligation under our licensing agreements . in the third quarter 2011 , we regained licenses from our former korean partner for prolindac and mugard and recognized all of the previously received license fees ( $ 849,000 ) that were recorded in deferred revenue . product sales of mugard in the united states totaled $ 548,000 for the year ended december 31 , 2011 as compared with $ 8,000 for the same period of 2010 , an increase of $ 540,000. our first sales were recorded in the fourth quarter of 2010. we recorded royalty revenue for mugard in europe of $ 89,000 for the year ended december 31 , 2011 as compared to $ 76,000 for the same period of 2010 , an increase of $ 13,000. sponsored research and development revenues were $ 30,000 for the year ended december 31 , 2011 as compared to $ 50,000 for the same period of 2010 , a decrease of $ 20,000. the revenues in 2011 and 2010 are for research various collaborations on our coboral and cobacyte projects . total research and development spending for the year ended december 31 , 2011 was $ 4,200,000 , as compared to $ 3,349,000 for the same period of 2010 , an increase of $ 851,000. the increase in expenses was primarily due to : · increased clinical development with trials for prolindac , mugard and thiarabine ( $ 610,000 ) ; · increased salary and related costs due to new employees ( $ 357,000 ) ; · increased external lab costs for coboral and cobacyte ( $ 152,000 ) · other net increases in research spending ( $ 76,000 ) . · decreased stock compensation expense for lower expense of option grants for research and development employees ( $ 194,000 ) ; and · lower external development expenses for prolindac ( $ 150,000 ) . the product was made in 2010 and is used in the clinical trials ongoing this year . product costs for mugard in the united states were $ 1,216,000 for the year ended december 31 , 2011 as compared to $ 140,000 for the same period in 2010 , an increase of $ 1,076,000. mugard was launched in the fourth quarter of 2010. total general and administrative expenses were $ 4,075,000 for the year ended december 31 , 2011 , a decrease of $ 436,000 compared to the same period in 2010 of $ 4,511,000. the decrease in expenses was due primarily to the following : · decreased general business consulting expenses due to the higher use of outside consultants in 2010 ( $ 967,000 ) versus the same period in 2011 ; · decreased patent and license fees ( $ 77,000 ) ; · decreased net other general and administrative expenses ( $ 23,000 ) ; 28 · increased salary and related costs ( $ 262,000 ) ; · increased stock compensation expense due to higher expense of option grants for general and administrative employees and directors ( $ 246,000 ) ; and · increased rent expenses ( $ 123,000 ) due to additional office space . depreciation and amortization was $ 233,000 for the year ended december 31 , 2011 as compared to $ 238,000 for the same period in 2010. total operating expenses for the year ended december 31 , 2011 were $ 9,727,000 as compared to total operating expenses of $ 8,238,000 for the same period of 2010 , an increase of $ 1,489,000 for the reasons listed above . interest and miscellaneous income was $ 1,334,000 for the year ended december 31 , 2011 as compared to $ 2,046,000 for the same period of 2010 , a decrease of $ 712,000. in 2010 , we recorded miscellaneous income for one time grants of $ 1,479,000 from qualifying therapeutic discovery project grants from the united states . miscellaneous income was $ 804,000 in 2011 due to negotiated payables and write-off of other accounts payable and offset by $ 37,000 of other miscellaneous income . interest income is comparable to the same period in 2010. interest and other expense was $ 963,000 for the year ended december 31 , 2011 as compared to $ 607,000 in the same period of 2010 , an increase of $ 356,000. the increase in interest and other expense was due to additional interest that was accrued on the long-term notes due to an increase in the interest rate of the note . we recorded a gain related to warrants classified as derivative liabilities of $ 3,580,000 for the year ended december 31 , 2011 as compared to $ 4,621,000 for the same period of 2010. a derivative for warrants was recorded in the fourth quarter of 2009 when the fair value of the warrants that were issued with our series a convertible preferred stock were reclassified from equity per the requirements of accounting guidance as a result of the repricing feature . we recorded a gain for the derivative liability related to preferred stock of $ 1,410,000 for the year ended december 31 , 2011 and a loss of $ 5,840,000 for the same period of 2010. the derivative was recorded for the first time in the third quarter of 2010 per the requirements of accounting guidance due to the possibility of repricingour series a convertible preferred stock if we sold our common stock at a price below the original conversion price . story_separator_special_tag preferred stock dividends of $ 1,774,000 were accrued for the year ended december 31 , 2011 and $ 1,791,000 for the same period of 2010 , a decrease of $ 17,000. the decrease is due to some preferred shareholders converting their ownership to common stock . dividends are due semi-annually in either cash or common stock . net loss allocable to common stockholders for the year ended december 31 , 2011 was $ 4,306,000 , or a $ 0.22 basic and diluted loss per common share , compared with net loss of $ 9,328,000 , or a $ 0.60 basic and diluted loss per common share for the same period in 2010 , a decreased loss of $ 5,022,000. story_separator_special_tag · competing technological developments ; · the cost of manufacturing and scale-up ; · the ability to establish and maintain effective commercialization arrangements and activities ; and · successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2011 . ( 2 ) includes : coboral , cobacyte , thiarabine and other projects . 30 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating income in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . asset impairment our intangible assets at december 31 , 2011 consisted primarily of patents acquired in acquisitions and licenses which were recorded at fair value on the acquisition date . we perform an impairment test when indications of impairment exist . at december 31 , 2011 and for the year then ended , management believes no impairment of our intangible assets exists . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2011 and 2010 , no allowance was recorded as all accounts are considered collectible . revenues our revenues are generated from licensing , research and development agreements , royalties and product sales . we recognize revenue in accordance with sec staff accounting bulletin no . 104 ( sab 104 ) , revenue recognition . license revenue is recognized over the remaining life of the underlying patent . research and development revenues are recognized as services are performed . royalties are recognized in the period of sales . we recognize revenue for mugard product sales at the time title transfers to our customers , which occurs at the time product is

