on june 17 , 2011 , in response to a request from the alliance for telecommunications industry solutions , or atis , the north american organizational partner for 3gpp , we also agreed to make available a non-exclusive patent license to 3gpp members desiring to implement the technical specifications identified by us , as set forth in the updated licensing declaration under atis ' ipr policy . we believe that we are positioned to license our essential security patents to 3gpp members as they move into 4g . we intend to license our patent portfolio , technology and software , including our secure domain name registry service , to domain infrastructure providers , communication service providers as well as to system integrators . we believe that the market opportunity for our software and technology solutions is large and expanding as secure domain names are now an integral part of securing the next generation 4g/lte wireless networks . we also believe that all 4g mobile devices will require unique secure domain names and become part of a secure domain name registry . our software and technology solutions provide the security platform required by next-generation internet-based applications such as instant messaging , or im , voice over internet protocol , or voip , mobile services , streaming video , file transfer and remote desktop . our technology generates secure connections on a “ zero-click ” or “ single-click ” basis , significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information . in connection with the settlement of our lawsuit against microsoft corporation in 2010 , microsoft became our first licensee . pursuant to the settlement and license agreement between us and microsoft , microsoft paid us $ 200 million , which has been recognized as gain on settlement and microsoft was granted a worldwide , irrevocable , nonexclusive , non-sublicenseable fully paid up license for our patents for microsoft products . we intend to seek further license of our technology , including our gabriel connection technology to enterprise customers , developers and original equipment manufacturers , or oems , of chips , servers , smart phones , tablets , e-readers , laptops , net books and other devices , within the ip-telephony , mobility , fixed-mobile convergence and unified communications markets including 4g/lte . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at science application international corporation , or saic . saic is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at saic and expanded the set of patents we acquired in 2006 from saic into a larger portfolio with 46 issued u.s. and foreign patents and numerous pending u.s. and foreign patent applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . please see item 7 – management 's discussion and analysis of financial condition and results of operations – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years . we intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . 21 index developments in the year ended december 31 , 2011 litigation on january 12 , 2011 , we initiated a lawsuit by filing a complaint against siemens and mitel in the united states district court for the eastern district of texas , tyler division , pursuant to which we allege that these companies infringe two of our patents . on february 4 , 2011 , we amended our original complaint , filed on august 11 , 2010 , against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to assert u.s. patent no . 7,418,504 against apple and aastra . on april 5 , 2011 , we again amended our complaint against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to include apple 's ipad 2 in the list of apple products that are accused of infringing our patents . we also asserted our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . also on april 5 , 2011 , we amended our original complaint , filed on january 12 , 2011 , against siemens and mitel in the united states district court for the eastern district of texas , tyler division , to assert our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . story_separator_special_tag in addition , we record stock and options granted to non-employees at fair value of the consideration received or the fair value of the equity investments issued as they vest over the performance period . fair value of financial instruments fair value is the price that would result from an orderly transaction between market participants at the measurement date . a fair value hierarchy prioritizes the inputs used to measure fair value . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurement ) and the lowest priority to unobservable inputs ( level 3 measurement ) . level 2 measurements utilize observable inputs in markets other than active markets . our financial instruments are stated at amounts that equal , or are intended to approximate , fair value . when we approximate fair value , we utilize market data or assumptions that we believe market participants would use in pricing the financial instrument , including assumptions about risk and inputs to the valuation technique . we use quoted valuation techniques , primarily the income and market approach that maximize the use of observable inputs and minimize the use of unobservable inputs for recurring fair value measurements . 24 index new accounting pronouncements in may 2011 , the fasb issued a new accounting standard update , which amends the fair value measurement guidance and includes some enhanced disclosure requirements . the most significant change in disclosures is an expansion of the information required for level 3 measurements based on unobservable inputs . the standard is effective for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements and disclosures . in june 2011 , the fasb issued an amendment to an existing accounting standard which requires companies to present net income and other comprehensive income in one continuous statement or in two separate , but consecutive , statements . in addition , in december 2011 , the fasb issued an amendment to an existing accounting standard which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement . we will adopt this standard in the first quarter of 2012. in september 2011 , the fasb issued an amendment to an existing accounting standard , which provides entities an option to perform a qualitative assessment to determine whether further impairment testing on goodwill is necessary . specifically , an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test . if an entity believes , as a result of its qualitative assessment , that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount , the quantitative impairment test is required . otherwise , no further testing is required . this standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements . 25 index operations revenue - royalties revenue generated for the twelve months ended december 31 , 2011 was approximately $ 20 compared to $ 68 for the twelve months ended december 31 , 2010 and $ 26 for the twelve months ended december 31 , 2009. our revenue in 2011 , 2010 and 2009 , was solely limited to the royalties earned under our single license agreement through our japanese subsidiary . we expect the revenue from this license will continue to be insignificant in the future . we do not intend to seek additional licenses or other revenue through our japanese subsidiary . gain on settlement in june 2010 , we received $ 200,000 from microsoft corporation related to a licensing agreement and originally classified it as revenue . upon further analysis , we determined that we could not practically and objectively separate any settlement portion from the revenue element as discussed under the guidance of u.s. gaap accounting standards codification topic 605 : revenue recognition , or asc topic 605. as a result , we reclassified this amount in our 2010 financial statements to present it as a gain on settlement . this reclassification had no impact on our net income , financial position or cash flows for any period . we did not receive a gain on settlement for the twelve months ended december 31 , 2011 or 2009 , respectively . royalty expense there was no royalty expense for the year ended december 31 , 2011 , compared to $ 59,207 for the year ended december 31 , 2010 , and zero for the year ended december 31 , 2009. under our agreements with saic , we were obligated to pay saic 35 % of the proceeds from the settlement of litigation with microsoft after reduction for costs , including legal fees and expenses , incurred by us and saic in connection with the microsoft litigation . research and development expenses research and development costs include expenses paid to outside development consultants and compensation-related expenses for our engineering staff . research and development costs are expensed as incurred . our research and development expenses for the year ended december 31 , 2011 was $ 1,464 compared to $ 2,412 for the year ended december 31 , 2010 and $ 864 for the year ended december 31 , 2009. the decrease in 2011 was primarily due to the decrease in bonuses paid in 2011 compared to 2010. the increase in 2010 as compared to 2009 , was primarily due to the increase in wages and medical costs and bonuses paid to our research and development staff . selling , general and administrative expenses selling , general and administrative expenses include compensation expense for management and administrative personnel , as well as expenses for outside legal , accounting , and consulting services . our selling

liquidity and capital resources for the year ended december 31 , 2011 , our cash and cash equivalents totaled $ 49,482 and our short-term investments totaled $ 14,438 compared to $ 34,635 and $ 43,457 , respectively , for the year ended december 31 , 2010 and $ 2,011 and zero , respectively , as of december 31 , 2009. we recognized an unrealized loss on our investments of $ 4 for the year ended december 31 , 2011 compared to $ 984 for the year ended december 31 , 2010 and no gain or loss for the twelve months ended december 31 , 2009 , as we did not have any investments available for sale as of december 31 , 2009. we have determined that this loss in 2011 and 2010 is temporary because the fair value of our investment securities is below the carrying value due to the changes in interest rates and we anticipate that this loss will be reversed over the securities remaining lives . 26 index before entering into the microsoft settlement , we allocated a large amount of cash to legal fees and other expenses associated with the microsoft litigation . we expect that our cash and cash equivalents as of december 31 , 2011 , will be sufficient to fund our operations and provide working capital for general corporate purposes and legal expenses includingthe expenses for our ongoing complaints against aastra , apple , cisco , nec , siemens , mitel and avaya in the united states district court of the eastern district of texas , tyler division , as well as the complaint with the u.s. international trade commission , for at least the next 36 months .


 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 for the year ended december 31 , 2011 , our cash and cash equivalents totaled $ 49,482 and our short-term investments totaled $ 14,438 compared to $ 34,635 and $ 43,457 , respectively , for the year ended december 31 , 2010 and $ 2,011 and zero , respectively , as of december 31 , 2009. we recognized an unrealized loss on our investments of $ 4 for the year ended december 31 , 2011 compared to $ 984 for the year ended december 31 , 2010 and no gain or loss for the twelve months ended december 31 , 2009 , as we did not have any investments available for sale as of december 31 , 2009. we have determined that this loss in 2011 and 2010 is temporary because the fair value of our investment securities is below the carrying value due to the changes in interest rates and we anticipate that this loss will be reversed over the securities remaining lives . 26 index before entering into the microsoft settlement , we allocated a large amount of cash to legal fees and other expenses associated with the microsoft litigation . we expect that our cash and cash equivalents as of december 31 , 2011 , will be sufficient to fund our operations and provide working capital for general corporate purposes and legal expenses includingthe expenses for our ongoing complaints against aastra , apple , cisco , nec , siemens , mitel and avaya in the united states district court of the eastern district of texas , tyler division , as well as the complaint with the u.s. international trade commission , for at least the next 36 months .
```    
 Suspicious Activity Report : on june 17 , 2011 , in response to a request from the alliance for telecommunications industry solutions , or atis , the north american organizational partner for 3gpp , we also agreed to make available a non-exclusive patent license to 3gpp members desiring to implement the technical specifications identified by us , as set forth in the updated licensing declaration under atis ' ipr policy . we believe that we are positioned to license our essential security patents to 3gpp members as they move into 4g . we intend to license our patent portfolio , technology and software , including our secure domain name registry service , to domain infrastructure providers , communication service providers as well as to system integrators . we believe that the market opportunity for our software and technology solutions is large and expanding as secure domain names are now an integral part of securing the next generation 4g/lte wireless networks . we also believe that all 4g mobile devices will require unique secure domain names and become part of a secure domain name registry . our software and technology solutions provide the security platform required by next-generation internet-based applications such as instant messaging , or im , voice over internet protocol , or voip , mobile services , streaming video , file transfer and remote desktop . our technology generates secure connections on a “ zero-click ” or “ single-click ” basis , significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information . in connection with the settlement of our lawsuit against microsoft corporation in 2010 , microsoft became our first licensee . pursuant to the settlement and license agreement between us and microsoft , microsoft paid us $ 200 million , which has been recognized as gain on settlement and microsoft was granted a worldwide , irrevocable , nonexclusive , non-sublicenseable fully paid up license for our patents for microsoft products . we intend to seek further license of our technology , including our gabriel connection technology to enterprise customers , developers and original equipment manufacturers , or oems , of chips , servers , smart phones , tablets , e-readers , laptops , net books and other devices , within the ip-telephony , mobility , fixed-mobile convergence and unified communications markets including 4g/lte . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at science application international corporation , or saic . saic is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at saic and expanded the set of patents we acquired in 2006 from saic into a larger portfolio with 46 issued u.s. and foreign patents and numerous pending u.s. and foreign patent applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . please see item 7 – management 's discussion and analysis of financial condition and results of operations – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years . we intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . 21 index developments in the year ended december 31 , 2011 litigation on january 12 , 2011 , we initiated a lawsuit by filing a complaint against siemens and mitel in the united states district court for the eastern district of texas , tyler division , pursuant to which we allege that these companies infringe two of our patents . on february 4 , 2011 , we amended our original complaint , filed on august 11 , 2010 , against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to assert u.s. patent no . 7,418,504 against apple and aastra . on april 5 , 2011 , we again amended our complaint against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to include apple 's ipad 2 in the list of apple products that are accused of infringing our patents . we also asserted our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . also on april 5 , 2011 , we amended our original complaint , filed on january 12 , 2011 , against siemens and mitel in the united states district court for the eastern district of texas , tyler division , to assert our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . story_separator_special_tag in addition , we record stock and options granted to non-employees at fair value of the consideration received or the fair value of the equity investments issued as they vest over the performance period . fair value of financial instruments fair value is the price that would result from an orderly transaction between market participants at the measurement date . a fair value hierarchy prioritizes the inputs used to measure fair value . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurement ) and the lowest priority to unobservable inputs ( level 3 measurement ) . level 2 measurements utilize observable inputs in markets other than active markets . our financial instruments are stated at amounts that equal , or are intended to approximate , fair value . when we approximate fair value , we utilize market data or assumptions that we believe market participants would use in pricing the financial instrument , including assumptions about risk and inputs to the valuation technique . we use quoted valuation techniques , primarily the income and market approach that maximize the use of observable inputs and minimize the use of unobservable inputs for recurring fair value measurements . 24 index new accounting pronouncements in may 2011 , the fasb issued a new accounting standard update , which amends the fair value measurement guidance and includes some enhanced disclosure requirements . the most significant change in disclosures is an expansion of the information required for level 3 measurements based on unobservable inputs . the standard is effective for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements and disclosures . in june 2011 , the fasb issued an amendment to an existing accounting standard which requires companies to present net income and other comprehensive income in one continuous statement or in two separate , but consecutive , statements . in addition , in december 2011 , the fasb issued an amendment to an existing accounting standard which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement . we will adopt this standard in the first quarter of 2012. in september 2011 , the fasb issued an amendment to an existing accounting standard , which provides entities an option to perform a qualitative assessment to determine whether further impairment testing on goodwill is necessary . specifically , an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test . if an entity believes , as a result of its qualitative assessment , that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount , the quantitative impairment test is required . otherwise , no further testing is required . this standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements . 25 index operations revenue - royalties revenue generated for the twelve months ended december 31 , 2011 was approximately $ 20 compared to $ 68 for the twelve months ended december 31 , 2010 and $ 26 for the twelve months ended december 31 , 2009. our revenue in 2011 , 2010 and 2009 , was solely limited to the royalties earned under our single license agreement through our japanese subsidiary . we expect the revenue from this license will continue to be insignificant in the future . we do not intend to seek additional licenses or other revenue through our japanese subsidiary . gain on settlement in june 2010 , we received $ 200,000 from microsoft corporation related to a licensing agreement and originally classified it as revenue . upon further analysis , we determined that we could not practically and objectively separate any settlement portion from the revenue element as discussed under the guidance of u.s. gaap accounting standards codification topic 605 : revenue recognition , or asc topic 605. as a result , we reclassified this amount in our 2010 financial statements to present it as a gain on settlement . this reclassification had no impact on our net income , financial position or cash flows for any period . we did not receive a gain on settlement for the twelve months ended december 31 , 2011 or 2009 , respectively . royalty expense there was no royalty expense for the year ended december 31 , 2011 , compared to $ 59,207 for the year ended december 31 , 2010 , and zero for the year ended december 31 , 2009. under our agreements with saic , we were obligated to pay saic 35 % of the proceeds from the settlement of litigation with microsoft after reduction for costs , including legal fees and expenses , incurred by us and saic in connection with the microsoft litigation . research and development expenses research and development costs include expenses paid to outside development consultants and compensation-related expenses for our engineering staff . research and development costs are expensed as incurred . our research and development expenses for the year ended december 31 , 2011 was $ 1,464 compared to $ 2,412 for the year ended december 31 , 2010 and $ 864 for the year ended december 31 , 2009. the decrease in 2011 was primarily due to the decrease in bonuses paid in 2011 compared to 2010. the increase in 2010 as compared to 2009 , was primarily due to the increase in wages and medical costs and bonuses paid to our research and development staff . selling , general and administrative expenses selling , general and administrative expenses include compensation expense for management and administrative personnel , as well as expenses for outside legal , accounting , and consulting services . our selling

