in addition , we were awarded by the delaware court of chancery in september 2011 the right to receive 50 % of all net profits ( as defined in the court 's final judgment ) related to the sale of siga technologies , inc. 's ( “ siga ” ) arestvyr and related products for 10 years following initial commercial sale of the drug once siga earns $ 40 million in net profits from sales of arestvyr and related products . in may 2012 , the court issued its final judgment . siga has appealed aspects of the decision to the delaware supreme court . in response , we have cross-appealed other aspects of the decision . in january 2013 , the delaware supreme court heard oral argument in the case . we can provide no assurances that siga will not prevail on its appeal , that we will be successful in our appeal , or that the delaware supreme court will not overturn the trial court 's decision . if the delaware supreme court rules in favor of siga , our award can be modified , reduced or reversed completely . as a result , we may lose all of our rights , we may incur additional expense or our ability to recover any amounts could be delayed further . critical accounting policies a summary of our critical accounting policies , including those that require the use of significant estimates and judgment , follows . a more comprehensive description of all of our significant accounting policies is contained in note 2 to our consolidated financial statements . revenue recognition we generate our revenue from different types of contractual arrangements : cost-plus-fee contracts , cost reimbursable grants and fixed price contracts . 40 revenues on cost-plus-fee contracts are recognized in an amount equal to the costs incurred during the period plus an estimate of the applicable fee earned . the estimate of the applicable fee earned is determined by reference to the contract : if the contract defines the fee in terms of risk-based milestones and specifies the fees to be earned upon the completion of each milestone , then the fee is recognized when the related milestones are earned , as further described below ; otherwise , we estimate the fee earned in a given period by using a proportional performance method based on costs incurred during the period as compared to total estimated project costs and application of the resulting fraction to the total project fee specified in the contract . when we use the milestone method of revenue recognition , milestone payments ( including milestone payments for fees ) contained in research and development arrangements are recognized as revenue when : ( i ) the milestones are achieved ; ( ii ) no further performance obligations with respect to the milestone exist ; ( iii ) collection is reasonably assured ; and ( iv ) substantive effort was necessary to achieve the milestone . milestones are considered substantive if all of the following conditions are met : · it is commensurate with either our performance to meet the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone , · it relates solely to past performance , · the value of the milestone is reasonable relative to all the deliverables and payment terms ( including other potential milestone consideration ) within the arrangement . if a milestone is deemed not to be substantive , the company recognizes the portion of the milestone payment as revenue that correlates to work already performed ; the remaining portion of the milestone payment is deferred and recognized as revenue as the company completes its performance obligations . revenue on fixed price contracts ( without substantive milestones as described above ) is recognized on the percentage-of-completion method . the percentage-of-completion method recognizes income as the contract progresses ( generally related to the costs incurred in providing the services required under the contract ) . the use of the percentage-of-completion method depends on the ability to make reasonable dependable estimates and the fact that circumstances may necessitate frequent revision of estimates does not indicate that the estimates are unreliable for the purpose for which they are used . as a result of our revenue recognition policies and the billing provisions contained in our contracts , the timing of customer billings may differ from the timing of recognizing revenue . amounts invoiced to customers in excess of revenue recognized are reflected on the balance sheet as deferred revenue . we recorded approximately $ 1.4 million and $ 0.5 million as deferred revenue as of december 31 , 2012 and 2011 , respectively . amounts recognized as revenue in excess of amounts billed to customers are reflected on the balance sheet as unbilled accounts receivable . we analyze each cost reimbursable grant to determine whether we should report such reimbursements as revenue or as an offset to our expenses incurred . for the years ended december 31 , 2012 , 2011 and 2010 , we recorded approximately $ 1.1 million , $ 0.7 million and $ 2.9 million , respectively , of costs reimbursed by the government as an offset to research and development expenses . included in the 2010 grants was approximately $ 0.9 million in therapeutic discovery tax grants which was offset against research and development expense in 2010. research and development expenses research and development costs are expensed as incurred ; advance payments are deferred and expensed as performance occurs . research and development costs include salaries , facilities expense , overhead expenses , material and supplies , pre-clinical expense , clinical trials and related clinical manufacturing expenses , share-based compensation expense , contract services and other outside services . story_separator_special_tag revenue in 2011 reflects both clinical and non clinical work following the release of the fda partial clinical hold in december 2010. final patient dosing in clinical trial was completed in april 2011 and the in-life portion of the trial ended in the third quarter 2011. revenue in 2010 was largely attributable to reimbursement of costs related to clinical and non-clinical studies , including work in connection with the investigation related to the partial clinical hold and certain manufacturing-related activities . under the september 2006 contract for the advanced development of protexia ® , we recognized approximately $ 5.8 million in the year ended december 31 , 2010 , of which $ 0.7 million in 2010 represent substantive milestone payments that were tied to our successful achievement of certain technical activities . the decline in revenue is attributed to completion of major development activities for this program in past years . in 2011 , we generated additional revenue of $ 0.7 million under the fixed price contract with the dod for the development of the aes for rbche , our nerve agent medical countermeasure , which was awarded in august 2011. research and development expenses our research and development expenses were approximately $ 21.2 million and $ 20.9 million for the years ended december 31 , 2011 and 2010 , respectively . research and development expenses for the years ended december 31 , 2011 and 2010 were attributable to research programs as follows : replace_table_token_8_th for the year ended december 31 , 2011 , research and development expenses increased $ 0.3 million from the prior year . this change was primarily due to the increased technical activity and the achievement of key technical milestones on our sparvax® program and the completion of the phase i valortim ® dose escalation clinical trial partially offset by a decrease in development expenses related to the clinical nerve agent protectants program as a result of the december 31 , 2010 shut down of the protexia ® program . research and development expenses for the years ended december 31 , 2011 and 2010 were net of cost reimbursements under certain of our government grants of $ 0.7 million and $ 2.9 million , respectively . included in the 2010 grants were $ 0.9 million in therapeutic discovery tax grants . general and administrative expenses general and administrative expenses were approximately $ 14.3 million and $ 18.0 million for the years ended december 31 , 2011 and 2010 , respectively . the decrease in 2011 primarily resulted from a $ 3.0 million reduction in bad debt expense and a property loss insurance recovery of $ 1.4 million in 2011 , partially offset by an increase in non-cash stock compensation expenses as well as taxes and other expenses . the bad debt expenses in 2010 consisted primarily of provisions associated with an invoice to our u.s. government customer for the work at avecia as well as the wind down of the third generation anthrax vaccine program . 45 depreciation and intangible amortization ( including impairment charges ) depreciation and amortization expenses were approximately $ 0.5 million and $ 5.7 million for the years ended december 31 , 2011 and 2010 , respectively . the decrease in 2011 is primarily a result of the impairment charge taken in december 2010 of approximately $ 4.6 million with the closing of our canadian operations . other income ( expense ) other income ( expense ) in 2011 was a net income of $ 7.9 million , compared to a net expense of $ 11.3 million in 2010. most of the change was due to ( i ) a significant reduction in interest expense of $ 5.9 million resulting from the conversion of our convertible notes in the fourth quarter of 2010 , ( ii ) a significant change in the fair value of our derivatives instruments ( a $ 5.5 million loss in 2010 compared to a $ 7.1 million gain in 2011 ) primarily as a result of the change in our stock price , and ( iii ) a $ 0.8 million gain on the sale of canadian assets held for sale in 2011. liquidity and capital resources overview our primary use of cash during 2012 was to fund our operations ( including our research and development programs ) and support our general and administrative activities . our future capital requirements will depend on many factors , including , the progress of our research and development programs ; the progress of pre-clinical and clinical testing ; the time and cost involved in obtaining regulatory approval ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; changes in our existing research relationships ; competing technological and marketing developments ; our ability to establish collaborative arrangements and to enter into licensing agreements and contractual arrangements with others ; and any future change in our business strategy . these cash requirements could change materially as a result of shifts in our business and strategy . the need to raise additional capital will depend on many factors , including but not limited to , our future cash requirements , future contract funding , whether siga prevails in its appeal challenging the trial court ruling awarding us an interest in a portion of the net profits of arestvyr , the timing , amount , and profitability of sales of arestvyr , if any ( including the timing of siga 's recognition of revenue related thereto ) , and if the trial court ruling is upheld , our ability to collect our portion of net profits related to arestvyr . historically , we have not generated positive cash flows from operations . to bridge the gap between payments made to us under our government contracts and grants and our operating and capital needs , we have had to rely on a variety of financing sources , including the issuance of equity securities and equity-linked

cash flows the following table provides information regarding our cash flows for the years ended december 31 , 2012 , 2011 and 2010. replace_table_token_9_th sources and uses of cash cash and cash equivalents were $ 12.7 million , $ 11.2 million and $ 11.8 million at december 31 , 2012 , 2011 and 2010 , respectively . the $ 1.5 million increase at december 31 , 2012 compared to december 31 , 2011 was primarily attributable to the $ 2.5 million term loan , which we closed in the first quarter 2012 , and the $ 1.3 million borrowed under the revolving line of credit , partially offset by $ 2.3 million of cash used in operations . the $ 0.6 million decrease at december 31 , 2011as compared to december 31 , 2010 was primarily due to the receipt of net proceeds of $ 5.8 million from a registered direct public offering of common stock and warrants , as well as $ 1.8 million related to the sale of assets in canada , offset by $ 7.8 million of cash used in operations . operating activities net cash used in operating activities was approximately $ 2.3 million , $ 7.8 million and $ 14.9 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . net cash used in operations during the year ended december 31 , 2012 reflects our net loss of $ 4.9 million , adjusted for non-cash share-based compensation expense of $ 1.9 million , the $ 1.2 million gain on the realization of the cumulative translation adjustment related to pharmathene canada , inc. , the decrease in the fair value of derivative instruments of $ 0.6 million and other noncash expenses of $ 0.6 million . the decrease in accounts receivable of approximately $ 2.0 million and increase in deferred revenue of approximately $ 0.9 million was partially offset by an increase in unbilled accounts receivable of approximately $ 1.1 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.
     ```cash flows the following table provides information regarding our cash flows for the years ended december 31 , 2012 , 2011 and 2010. replace_table_token_9_th sources and uses of cash cash and cash equivalents were $ 12.7 million , $ 11.2 million and $ 11.8 million at december 31 , 2012 , 2011 and 2010 , respectively . the $ 1.5 million increase at december 31 , 2012 compared to december 31 , 2011 was primarily attributable to the $ 2.5 million term loan , which we closed in the first quarter 2012 , and the $ 1.3 million borrowed under the revolving line of credit , partially offset by $ 2.3 million of cash used in operations . the $ 0.6 million decrease at december 31 , 2011as compared to december 31 , 2010 was primarily due to the receipt of net proceeds of $ 5.8 million from a registered direct public offering of common stock and warrants , as well as $ 1.8 million related to the sale of assets in canada , offset by $ 7.8 million of cash used in operations . operating activities net cash used in operating activities was approximately $ 2.3 million , $ 7.8 million and $ 14.9 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively . net cash used in operations during the year ended december 31 , 2012 reflects our net loss of $ 4.9 million , adjusted for non-cash share-based compensation expense of $ 1.9 million , the $ 1.2 million gain on the realization of the cumulative translation adjustment related to pharmathene canada , inc. , the decrease in the fair value of derivative instruments of $ 0.6 million and other noncash expenses of $ 0.6 million . the decrease in accounts receivable of approximately $ 2.0 million and increase in deferred revenue of approximately $ 0.9 million was partially offset by an increase in unbilled accounts receivable of approximately $ 1.1 million .
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 Suspicious Activity Report : in addition , we were awarded by the delaware court of chancery in september 2011 the right to receive 50 % of all net profits ( as defined in the court 's final judgment ) related to the sale of siga technologies , inc. 's ( “ siga ” ) arestvyr and related products for 10 years following initial commercial sale of the drug once siga earns $ 40 million in net profits from sales of arestvyr and related products . in may 2012 , the court issued its final judgment . siga has appealed aspects of the decision to the delaware supreme court . in response , we have cross-appealed other aspects of the decision . in january 2013 , the delaware supreme court heard oral argument in the case . we can provide no assurances that siga will not prevail on its appeal , that we will be successful in our appeal , or that the delaware supreme court will not overturn the trial court 's decision . if the delaware supreme court rules in favor of siga , our award can be modified , reduced or reversed completely . as a result , we may lose all of our rights , we may incur additional expense or our ability to recover any amounts could be delayed further . critical accounting policies a summary of our critical accounting policies , including those that require the use of significant estimates and judgment , follows . a more comprehensive description of all of our significant accounting policies is contained in note 2 to our consolidated financial statements . revenue recognition we generate our revenue from different types of contractual arrangements : cost-plus-fee contracts , cost reimbursable grants and fixed price contracts . 40 revenues on cost-plus-fee contracts are recognized in an amount equal to the costs incurred during the period plus an estimate of the applicable fee earned . the estimate of the applicable fee earned is determined by reference to the contract : if the contract defines the fee in terms of risk-based milestones and specifies the fees to be earned upon the completion of each milestone , then the fee is recognized when the related milestones are earned , as further described below ; otherwise , we estimate the fee earned in a given period by using a proportional performance method based on costs incurred during the period as compared to total estimated project costs and application of the resulting fraction to the total project fee specified in the contract . when we use the milestone method of revenue recognition , milestone payments ( including milestone payments for fees ) contained in research and development arrangements are recognized as revenue when : ( i ) the milestones are achieved ; ( ii ) no further performance obligations with respect to the milestone exist ; ( iii ) collection is reasonably assured ; and ( iv ) substantive effort was necessary to achieve the milestone . milestones are considered substantive if all of the following conditions are met : · it is commensurate with either our performance to meet the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone , · it relates solely to past performance , · the value of the milestone is reasonable relative to all the deliverables and payment terms ( including other potential milestone consideration ) within the arrangement . if a milestone is deemed not to be substantive , the company recognizes the portion of the milestone payment as revenue that correlates to work already performed ; the remaining portion of the milestone payment is deferred and recognized as revenue as the company completes its performance obligations . revenue on fixed price contracts ( without substantive milestones as described above ) is recognized on the percentage-of-completion method . the percentage-of-completion method recognizes income as the contract progresses ( generally related to the costs incurred in providing the services required under the contract ) . the use of the percentage-of-completion method depends on the ability to make reasonable dependable estimates and the fact that circumstances may necessitate frequent revision of estimates does not indicate that the estimates are unreliable for the purpose for which they are used . as a result of our revenue recognition policies and the billing provisions contained in our contracts , the timing of customer billings may differ from the timing of recognizing revenue . amounts invoiced to customers in excess of revenue recognized are reflected on the balance sheet as deferred revenue . we recorded approximately $ 1.4 million and $ 0.5 million as deferred revenue as of december 31 , 2012 and 2011 , respectively . amounts recognized as revenue in excess of amounts billed to customers are reflected on the balance sheet as unbilled accounts receivable . we analyze each cost reimbursable grant to determine whether we should report such reimbursements as revenue or as an offset to our expenses incurred . for the years ended december 31 , 2012 , 2011 and 2010 , we recorded approximately $ 1.1 million , $ 0.7 million and $ 2.9 million , respectively , of costs reimbursed by the government as an offset to research and development expenses . included in the 2010 grants was approximately $ 0.9 million in therapeutic discovery tax grants which was offset against research and development expense in 2010. research and development expenses research and development costs are expensed as incurred ; advance payments are deferred and expensed as performance occurs . research and development costs include salaries , facilities expense , overhead expenses , material and supplies , pre-clinical expense , clinical trials and related clinical manufacturing expenses , share-based compensation expense , contract services and other outside services . story_separator_special_tag revenue in 2011 reflects both clinical and non clinical work following the release of the fda partial clinical hold in december 2010. final patient dosing in clinical trial was completed in april 2011 and the in-life portion of the trial ended in the third quarter 2011. revenue in 2010 was largely attributable to reimbursement of costs related to clinical and non-clinical studies , including work in connection with the investigation related to the partial clinical hold and certain manufacturing-related activities . under the september 2006 contract for the advanced development of protexia ® , we recognized approximately $ 5.8 million in the year ended december 31 , 2010 , of which $ 0.7 million in 2010 represent substantive milestone payments that were tied to our successful achievement of certain technical activities . the decline in revenue is attributed to completion of major development activities for this program in past years . in 2011 , we generated additional revenue of $ 0.7 million under the fixed price contract with the dod for the development of the aes for rbche , our nerve agent medical countermeasure , which was awarded in august 2011. research and development expenses our research and development expenses were approximately $ 21.2 million and $ 20.9 million for the years ended december 31 , 2011 and 2010 , respectively . research and development expenses for the years ended december 31 , 2011 and 2010 were attributable to research programs as follows : replace_table_token_8_th for the year ended december 31 , 2011 , research and development expenses increased $ 0.3 million from the prior year . this change was primarily due to the increased technical activity and the achievement of key technical milestones on our sparvax® program and the completion of the phase i valortim ® dose escalation clinical trial partially offset by a decrease in development expenses related to the clinical nerve agent protectants program as a result of the december 31 , 2010 shut down of the protexia ® program . research and development expenses for the years ended december 31 , 2011 and 2010 were net of cost reimbursements under certain of our government grants of $ 0.7 million and $ 2.9 million , respectively . included in the 2010 grants were $ 0.9 million in therapeutic discovery tax grants . general and administrative expenses general and administrative expenses were approximately $ 14.3 million and $ 18.0 million for the years ended december 31 , 2011 and 2010 , respectively . the decrease in 2011 primarily resulted from a $ 3.0 million reduction in bad debt expense and a property loss insurance recovery of $ 1.4 million in 2011 , partially offset by an increase in non-cash stock compensation expenses as well as taxes and other expenses . the bad debt expenses in 2010 consisted primarily of provisions associated with an invoice to our u.s. government customer for the work at avecia as well as the wind down of the third generation anthrax vaccine program . 45 depreciation and intangible amortization ( including impairment charges ) depreciation and amortization expenses were approximately $ 0.5 million and $ 5.7 million for the years ended december 31 , 2011 and 2010 , respectively . the decrease in 2011 is primarily a result of the impairment charge taken in december 2010 of approximately $ 4.6 million with the closing of our canadian operations . other income ( expense ) other income ( expense ) in 2011 was a net income of $ 7.9 million , compared to a net expense of $ 11.3 million in 2010. most of the change was due to ( i ) a significant reduction in interest expense of $ 5.9 million resulting from the conversion of our convertible notes in the fourth quarter of 2010 , ( ii ) a significant change in the fair value of our derivatives instruments ( a $ 5.5 million loss in 2010 compared to a $ 7.1 million gain in 2011 ) primarily as a result of the change in our stock price , and ( iii ) a $ 0.8 million gain on the sale of canadian assets held for sale in 2011. liquidity and capital resources overview our primary use of cash during 2012 was to fund our operations ( including our research and development programs ) and support our general and administrative activities . our future capital requirements will depend on many factors , including , the progress of our research and development programs ; the progress of pre-clinical and clinical testing ; the time and cost involved in obtaining regulatory approval ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; changes in our existing research relationships ; competing technological and marketing developments ; our ability to establish collaborative arrangements and to enter into licensing agreements and contractual arrangements with others ; and any future change in our business strategy . these cash requirements could change materially as a result of shifts in our business and strategy . the need to raise additional capital will depend on many factors , including but not limited to , our future cash requirements , future contract funding , whether siga prevails in its appeal challenging the trial court ruling awarding us an interest in a portion of the net profits of arestvyr , the timing , amount , and profitability of sales of arestvyr , if any ( including the timing of siga 's recognition of revenue related thereto ) , and if the trial court ruling is upheld , our ability to collect our portion of net profits related to arestvyr . historically , we have not generated positive cash flows from operations . to bridge the gap between payments made to us under our government contracts and grants and our operating and capital needs , we have had to rely on a variety of financing sources , including the issuance of equity securities and equity-linked

