million of cash and cash equivalents and $ 182.8 million of total assets as of september 30 , 2014 as compared to $ 19.1 million and $ 37.3 million as of september 30 , 2013 , respectively . 46 critical accounting policies and estimates management makes certain judgments and uses certain estimates and assumptions when applying accounting principles generally accepted in the united states in the preparation of our consolidated financial statements . we evaluate our estimates and judgments on an ongoing basis and base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what we anticipate and different assumptions or estimates about the future could change our reported results . we believe the following accounting policies are the most critical to us , in that they are important to the portrayal of our consolidated financial statements and require our most difficult , subjective or complex judgments in the preparation of our consolidated financial statements . for further information , see note 1 , organization and significant accounting policies , to our consolidated financial statements , which outlines our application of significant accounting policies and new accounting standards . revenue recognition revenue from product sales are recorded when persuasive evidence of an arrangement exists , title has passed and delivery has occurred , a price is fixed and determinable , and collection is reasonably assured . we may generate revenue from technology licenses , collaborative research and development arrangements , research grants and product sales . revenue under technology licenses and collaborative agreements typically consists of nonrefundable and or guaranteed technology license fees , collaborative research funding , and various milestone and future product royalty or profit-sharing payments . revenue associated with research and development funding payments under collaborative agreements is recognized ratably over the relevant periods specified in the agreement , generally the research and development period . revenue from up-front license fees , milestones and product royalties are recognized as earned based on the completion of the milestones and product sales , as defined in the respective agreements . payments received in advance of recognition as revenue are recorded as deferred revenue . business combinations in october 2011 , we acquired all of the outstanding common stock of roche madison , inc. and certain related intellectual property assets in exchange for a $ 50,000 promissory note , 1,288,158 shares of arrowhead common stock and certain contingent consideration , altogether an estimated value of $ 5.1 million on the date of the acquisition . we assigned the value of the consideration to the tangible assets and identifiable intangible assets and the liabilities assumed on the basis of their fair values on the date of acquisition . the excess of net assets over the consideration was recorded as a non-operating gain . in april 2012 , we acquired all of the outstanding common stock of alvos therapeutics , inc. in exchange for the issuance of 315,457 shares of arrowhead common stock , valued at $ 2.0 million at the time of acquisition . the consideration was assigned to its tangible and intangible assets , and liabilities based on estimated fair values at the time of acquisition . the allocation of value to certain items , including property and equipment , intangible assets and certain liabilities require management judgment , and is based upon the information available at the time of acquisition . impairment of long-lived assets we review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that our assumptions about the useful lives of these assets are no longer appropriate . if impairment is indicated , recoverability is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . impairment of intangible assets intangible assets consist of in-process research and development and license agreements acquired in conjunction with a business acquisition . intangible assets are monitored for potential impairment whenever events or circumstances indicate that the carrying amount may not be recoverable , and are also reviewed annually to determine whether any impairment is necessary . based on asu 2012-02 , the annual review of intangible assets is performed via a two-step process . first , a qualitative assessment is performed to determine if it is more likely than not that the intangible asset is impaired . if required , a quantitative assessment is performed and , if necessary , impairment is recorded . 47 stock-based compensation we recognize stock-based compensation expense for stock options based on the grant date fair value using the black-scholes options pricing model , which requires us to make assumptions regarding certain variables including the risk-free interest rate , expected stock price volatility , assumed forfeitures , and the expected life of the award . the grant date fair value of restricted stock units granted is based upon the quoted closing market price per share on the date of grant , adjusted for assumed forfeitures . expense for stock options and restricted stock units is recognized over the requisite service period . the assumptions used in calculating stock-based compensation expense represent management 's best estimates , but these estimates involve inherent uncertainties , and if factors change or the company used different assumptions , its stock-based compensation expense could be materially different in the future . story_separator_special_tag the decrease in expense is primarily due to a $ 1.0 million write down of a note receivable related to the sale of our former subsidiary , unidym , in 2013 , which was not repeated in the current year . additionally , the company received increased interest income during 2014 as it has invested its excess cash balances in short and long-term corporate bonds . the largest component of this line item is related to the change in the value of derivative liabilities related to certain warrants with a price adjustment feature , which requires derivative accounting . the change in value of derivative liabilities was approximately $ 6.0 million in 2014 and $ 5.3 million in 2013. results of operations comparison for 2013 and 2012 the company had a net loss of $ 31.7 million for the year ended september 30 , 201 3 , compared to a net loss of $ 22.1 million for the year ended september 30 , 201 2 , an increase of $ 9.6 million . the increase in the net loss was the result of a number of factors . from an operating standpoint , the main factor was higher r & d expenses of $ 3.3 million for preclinical glp toxicology studies and cgmp drug manufacturing in preparation of the clinical trial for arc-520 , as well as costs for the phase 1 clinical trial of arc-520 . general and administrative expenses were lower in 2013 by $ 2.9 million . this change was primarily due to the prior year write down of certain receivables from minority interest companies . salaries and payroll related expenses increased nominally in 2013 , primarily due to headcount increases and general salary adjustments . in 2013 , the company recorded a noncash impairment expense of $ 1.3 million to write off certain patents as a result of a termination of a license agreement . other expense was higher in 2013 by $ 6.1 million primarily due to noncash losses from the change in value of derivatives , as well as the write down of a note receivable obtained as part of our disposition of unidym in 2011. details of the results of operations are presented below . 52 revenues total revenue was $ 290,000 for the year ended september 30 , 2013 and $ 147,000 for the year ended september 30 , 2012. revenue is primarily composed of amortization of up-front patent license fee payments . in addition , the company had collaboration revenue of $ 115,000 during the year ended september 30 , 2013. operating expenses the analysis below details the operating expenses and discusses the expenditures of the company within the major expense categories . certain reclassifications have been made to prior period operating expense categories to conform to the current period presentation . for purposes of comparison , the amounts for the years ended september 30 , 201 3 and 201 2 are shown in the tables below . research and development expenses r & d expenses are related to the company 's on-going research and development efforts , primarily related to its laboratory research facility in madison , wisconsin , and also include outsourced r & d services . the following table provides details of research and development expense for the periods indicated below : ( in thousands ) replace_table_token_10_th laboratory supplies and services expense was $ 1,058,000 during the year ended september 30 , 2013 , compared to $ 794,000 in the comparable prior period . this increase in expense is associated with research and development efforts related to pre-clinical programs including sirna synthesis for the identification and screening of new liver and extra-hepatic targets , subcutaneous formulations to be utilized in therapeutic areas where chronic dosing may be required and assessing the interaction of arc-520 with other hepatitis therapeutics . in vivo studies expense was $ 303,00 0 during the year ended september 30 , 201 3 , compared to 232 ,000 in the comparable prior period . the current period expense relates to preclinical animal studies at our madison research facility , as the company tests formulations of new potential clinical candidates . outside lab and contract services expense was $ 533,000 during the year ended september 30 , 201 3 , compared to $ 496,000 in the comparable prior period . the increase was primarily related to oligonucleotide synthesis related to development of new clinical candidates . as arc-520 and other clinical candidates progress through clinical trials , outside lab and contract service expense is expected to increase . toxicology and efficacy studies expense was $ 1,588,000 during the year ended september 30 , 2013 , compared to $ 43,000 in the comparable prior period . the increase is primarily due to glp toxicology studies related to arc-520 , our hepatitis b clinical candidate in preparation for a phase 1 clinical trial . additionally , we initiated long-term toxicology studies to support a phase 2b , multi-dose clinical study for arc-520 . outside toxicology work fluctuates depending on the number of clinical candidates the company is developing and on the specific needs of each development candidate . 53 drug manufacturing expense was $ 2.6 million during the year ended september 30 , 201 3 , compared to $ 1.6 million in the comparable prior period . drug manufacturing expense for fiscal 2013 was related to the manufacturing campaign to produce materials for the arc-520 glp toxicology studies and the phase 1 clinical trial . the company utilized outside manufactures to produce these components . in the prior year , approximately half of the drug manufacturing expense was related to the production of polymer components for rondel . further development of rondel and calaa-01 was suspended as the company focused on its dpc delivery platform . clinical trial expense was $ 1,093,000 during the year ended september 30 , 2013 , compared to $ 599,000 in the comparable prior period . expenses relating to clinical trials increased as

liquidity and cash resources arrowhead has historically financed its operations through the sale of securities of arrowhead and its subsidiaries . research and development activities have required significant capital investment since the company 's inception , and are expected to continue to require significant cash investment in fiscal 201 5 , and beyond . at september 30 , 201 4 , the company had cash on hand of approximately $ 132.5 million as compared to $ 19.1 million at september 30 , 2013. excess cash invested in fixed income securities was $ 44.7 million at september 30 , 2014 , compared to $ 10.7 million at september 30 , 2013. the company believes its current financial resources are sufficient to fund its operations through at least the next twelve months . a summary of cash flows for the years ended september 30 , 2014 , 2013 , and 2012 is as follows : replace_table_token_13_th 56 during 2014 , the company used $ 35.4 million in cash from operating activities , which represents the on-going expenses of its research and development programs and corporate overhead . cash outlays were primarily composed of the following : research and development costs were $ 21.7 million , salary and payroll-related expenses were $ 9.1 million , and general and administrative costs were $ 4.6 million . cash used by investing activities was $ 36.5 million , primarily related to net cash investments in fixed income securities of $ 34.8 million . capital expenditures were $ 1.7 million .


 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 cash resources arrowhead has historically financed its operations through the sale of securities of arrowhead and its subsidiaries . research and development activities have required significant capital investment since the company 's inception , and are expected to continue to require significant cash investment in fiscal 201 5 , and beyond . at september 30 , 201 4 , the company had cash on hand of approximately $ 132.5 million as compared to $ 19.1 million at september 30 , 2013. excess cash invested in fixed income securities was $ 44.7 million at september 30 , 2014 , compared to $ 10.7 million at september 30 , 2013. the company believes its current financial resources are sufficient to fund its operations through at least the next twelve months . a summary of cash flows for the years ended september 30 , 2014 , 2013 , and 2012 is as follows : replace_table_token_13_th 56 during 2014 , the company used $ 35.4 million in cash from operating activities , which represents the on-going expenses of its research and development programs and corporate overhead . cash outlays were primarily composed of the following : research and development costs were $ 21.7 million , salary and payroll-related expenses were $ 9.1 million , and general and administrative costs were $ 4.6 million . cash used by investing activities was $ 36.5 million , primarily related to net cash investments in fixed income securities of $ 34.8 million . capital expenditures were $ 1.7 million .
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 Suspicious Activity Report : million of cash and cash equivalents and $ 182.8 million of total assets as of september 30 , 2014 as compared to $ 19.1 million and $ 37.3 million as of september 30 , 2013 , respectively . 46 critical accounting policies and estimates management makes certain judgments and uses certain estimates and assumptions when applying accounting principles generally accepted in the united states in the preparation of our consolidated financial statements . we evaluate our estimates and judgments on an ongoing basis and base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what we anticipate and different assumptions or estimates about the future could change our reported results . we believe the following accounting policies are the most critical to us , in that they are important to the portrayal of our consolidated financial statements and require our most difficult , subjective or complex judgments in the preparation of our consolidated financial statements . for further information , see note 1 , organization and significant accounting policies , to our consolidated financial statements , which outlines our application of significant accounting policies and new accounting standards . revenue recognition revenue from product sales are recorded when persuasive evidence of an arrangement exists , title has passed and delivery has occurred , a price is fixed and determinable , and collection is reasonably assured . we may generate revenue from technology licenses , collaborative research and development arrangements , research grants and product sales . revenue under technology licenses and collaborative agreements typically consists of nonrefundable and or guaranteed technology license fees , collaborative research funding , and various milestone and future product royalty or profit-sharing payments . revenue associated with research and development funding payments under collaborative agreements is recognized ratably over the relevant periods specified in the agreement , generally the research and development period . revenue from up-front license fees , milestones and product royalties are recognized as earned based on the completion of the milestones and product sales , as defined in the respective agreements . payments received in advance of recognition as revenue are recorded as deferred revenue . business combinations in october 2011 , we acquired all of the outstanding common stock of roche madison , inc. and certain related intellectual property assets in exchange for a $ 50,000 promissory note , 1,288,158 shares of arrowhead common stock and certain contingent consideration , altogether an estimated value of $ 5.1 million on the date of the acquisition . we assigned the value of the consideration to the tangible assets and identifiable intangible assets and the liabilities assumed on the basis of their fair values on the date of acquisition . the excess of net assets over the consideration was recorded as a non-operating gain . in april 2012 , we acquired all of the outstanding common stock of alvos therapeutics , inc. in exchange for the issuance of 315,457 shares of arrowhead common stock , valued at $ 2.0 million at the time of acquisition . the consideration was assigned to its tangible and intangible assets , and liabilities based on estimated fair values at the time of acquisition . the allocation of value to certain items , including property and equipment , intangible assets and certain liabilities require management judgment , and is based upon the information available at the time of acquisition . impairment of long-lived assets we review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that our assumptions about the useful lives of these assets are no longer appropriate . if impairment is indicated , recoverability is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . impairment of intangible assets intangible assets consist of in-process research and development and license agreements acquired in conjunction with a business acquisition . intangible assets are monitored for potential impairment whenever events or circumstances indicate that the carrying amount may not be recoverable , and are also reviewed annually to determine whether any impairment is necessary . based on asu 2012-02 , the annual review of intangible assets is performed via a two-step process . first , a qualitative assessment is performed to determine if it is more likely than not that the intangible asset is impaired . if required , a quantitative assessment is performed and , if necessary , impairment is recorded . 47 stock-based compensation we recognize stock-based compensation expense for stock options based on the grant date fair value using the black-scholes options pricing model , which requires us to make assumptions regarding certain variables including the risk-free interest rate , expected stock price volatility , assumed forfeitures , and the expected life of the award . the grant date fair value of restricted stock units granted is based upon the quoted closing market price per share on the date of grant , adjusted for assumed forfeitures . expense for stock options and restricted stock units is recognized over the requisite service period . the assumptions used in calculating stock-based compensation expense represent management 's best estimates , but these estimates involve inherent uncertainties , and if factors change or the company used different assumptions , its stock-based compensation expense could be materially different in the future . story_separator_special_tag the decrease in expense is primarily due to a $ 1.0 million write down of a note receivable related to the sale of our former subsidiary , unidym , in 2013 , which was not repeated in the current year . additionally , the company received increased interest income during 2014 as it has invested its excess cash balances in short and long-term corporate bonds . the largest component of this line item is related to the change in the value of derivative liabilities related to certain warrants with a price adjustment feature , which requires derivative accounting . the change in value of derivative liabilities was approximately $ 6.0 million in 2014 and $ 5.3 million in 2013. results of operations comparison for 2013 and 2012 the company had a net loss of $ 31.7 million for the year ended september 30 , 201 3 , compared to a net loss of $ 22.1 million for the year ended september 30 , 201 2 , an increase of $ 9.6 million . the increase in the net loss was the result of a number of factors . from an operating standpoint , the main factor was higher r & d expenses of $ 3.3 million for preclinical glp toxicology studies and cgmp drug manufacturing in preparation of the clinical trial for arc-520 , as well as costs for the phase 1 clinical trial of arc-520 . general and administrative expenses were lower in 2013 by $ 2.9 million . this change was primarily due to the prior year write down of certain receivables from minority interest companies . salaries and payroll related expenses increased nominally in 2013 , primarily due to headcount increases and general salary adjustments . in 2013 , the company recorded a noncash impairment expense of $ 1.3 million to write off certain patents as a result of a termination of a license agreement . other expense was higher in 2013 by $ 6.1 million primarily due to noncash losses from the change in value of derivatives , as well as the write down of a note receivable obtained as part of our disposition of unidym in 2011. details of the results of operations are presented below . 52 revenues total revenue was $ 290,000 for the year ended september 30 , 2013 and $ 147,000 for the year ended september 30 , 2012. revenue is primarily composed of amortization of up-front patent license fee payments . in addition , the company had collaboration revenue of $ 115,000 during the year ended september 30 , 2013. operating expenses the analysis below details the operating expenses and discusses the expenditures of the company within the major expense categories . certain reclassifications have been made to prior period operating expense categories to conform to the current period presentation . for purposes of comparison , the amounts for the years ended september 30 , 201 3 and 201 2 are shown in the tables below . research and development expenses r & d expenses are related to the company 's on-going research and development efforts , primarily related to its laboratory research facility in madison , wisconsin , and also include outsourced r & d services . the following table provides details of research and development expense for the periods indicated below : ( in thousands ) replace_table_token_10_th laboratory supplies and services expense was $ 1,058,000 during the year ended september 30 , 2013 , compared to $ 794,000 in the comparable prior period . this increase in expense is associated with research and development efforts related to pre-clinical programs including sirna synthesis for the identification and screening of new liver and extra-hepatic targets , subcutaneous formulations to be utilized in therapeutic areas where chronic dosing may be required and assessing the interaction of arc-520 with other hepatitis therapeutics . in vivo studies expense was $ 303,00 0 during the year ended september 30 , 201 3 , compared to 232 ,000 in the comparable prior period . the current period expense relates to preclinical animal studies at our madison research facility , as the company tests formulations of new potential clinical candidates . outside lab and contract services expense was $ 533,000 during the year ended september 30 , 201 3 , compared to $ 496,000 in the comparable prior period . the increase was primarily related to oligonucleotide synthesis related to development of new clinical candidates . as arc-520 and other clinical candidates progress through clinical trials , outside lab and contract service expense is expected to increase . toxicology and efficacy studies expense was $ 1,588,000 during the year ended september 30 , 2013 , compared to $ 43,000 in the comparable prior period . the increase is primarily due to glp toxicology studies related to arc-520 , our hepatitis b clinical candidate in preparation for a phase 1 clinical trial . additionally , we initiated long-term toxicology studies to support a phase 2b , multi-dose clinical study for arc-520 . outside toxicology work fluctuates depending on the number of clinical candidates the company is developing and on the specific needs of each development candidate . 53 drug manufacturing expense was $ 2.6 million during the year ended september 30 , 201 3 , compared to $ 1.6 million in the comparable prior period . drug manufacturing expense for fiscal 2013 was related to the manufacturing campaign to produce materials for the arc-520 glp toxicology studies and the phase 1 clinical trial . the company utilized outside manufactures to produce these components . in the prior year , approximately half of the drug manufacturing expense was related to the production of polymer components for rondel . further development of rondel and calaa-01 was suspended as the company focused on its dpc delivery platform . clinical trial expense was $ 1,093,000 during the year ended september 30 , 2013 , compared to $ 599,000 in the comparable prior period . expenses relating to clinical trials increased as

