for our fiscal year ending june 30 , 2020 , we have the following objectives to advance our development strategy : ( i ) initiate the phase 2b clinical study for rz358 in the us and or europe , ( ii ) complete the necessary toxicology studies for rz402 to enable the filing of an ind and the initiation of clinical studies thereafter , and ( iii ) complete the phase 1 study for ab101 and explore partnership opportunities reference is made to note 13 to our consolidated financial statements included in item 8 of this annual report for further discussion of our financing activities completed in july and august 2019 , approval of our 2019 stock plan , grants of stock options for approximately 34.0 million shares of common stock and , subject to stockholder approval , our ability to complete a reverse stock split and set the exchange ratio between 20 and 100 shares of our common stock into one issued and outstanding share of common stock . 17 factors impacting our results operations we have not generated any revenues since our inception in march 2010. since inception , we have engaged in organizational activities , conducted private placements to raise additional capital , built out a manufacturing suite and produced material for our lead product candidate under good laboratory practices ( “ glp ” ) , conducted studies using the glp material , subsequently changed our strategy to a licensing model that resulted in disposal of our manufacturing assets , and conducted other research and development activities on our pipeline product candidates . due to the time required to conduct clinical trials and obtain regulatory approval for any of our product candidates , we anticipate it will be some time before we generate substantial revenues , if ever . we expect to generate operating losses for the foreseeable future ; therefore we expect to continue efforts to raise additional capital to maintain our current operating plans beyond the next year . we can not assure you that we will secure such financing or that it will be adequate for the long-term execution of our business strategy . even if we obtain additional financing , it may be costly and may require us to agree to covenants or other provisions that will favor new investors over our existing stockholders . our stated strategy has been to build a metabolic focused biotechnology company by in-licensing compelling compounds that we believe clearly target different diseases where there is an unmet need . in december 2017 , we completed the latest phase of this strategy by in-licensing rz358 from xoma corporation . rz358 is a fully human monoclonal antibody that is currently in phase 2 clinical development . rz358 is being developed to treat congenital hyperinsulinism , a devastating ultra-orphan pediatric disease . we believe that rz358 complements our two other metabolic pipeline opportunities including : ( i ) our plasma kallikrein inhibitor , rz402 , which is a late stage preclinical program that offers the potential of an oral therapy to treat diabetic macular edema , the leading cause of blindness in adults in the us , and ( ii ) our super-long-acting basal insulin , ab101 , which is currently in phase 1 clinical development to assess the safety and tolerability , pharmacokinetics and pharmacodynamics of ab101 in patients with diabetes mellitus . key components of consolidated statements of operations research and development expenses . research and development expenses consist primarily of in-licensing costs , material manufacturing costs , and clinical trial costs . our research and development expenses also include ( i ) an allocable portion of our cash and stock-based compensation , employee benefits , and consulting costs related to personnel engaged in the design and development of product candidates and other scientific research projects , and ( ii ) an allocable portion of our facilities and overhead costs related to such personnel . general and administrative expenses . general and administrative expenses consist primarily of ( i ) an allocable portion of our cash and stock-based compensation , employee benefits and consulting costs related to personnel engaged in our administrative , finance , accounting , and executive functions , and ( ii ) an allocable portion of our facilities and overhead costs related to such personnel . general and administrative expenses also include travel , legal , auditing , investor relations and other costs primarily related to our status as a public company . impairment of long-lived assets . impairment exists for property and equipment and identifiable intangible assets if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets . an impairment charge is recognized for the amount by which the carrying amount of the asset , or asset group , exceeds its estimated fair value . gain ( loss ) on sale of property and equipment . we recognize a loss on sales of property and equipment when the sale proceeds are less than the net carrying value of the assets sold . gains are recognized if the sale proceeds exceed the net carrying value of the assets sold . any transactions that result in gains are netted against transactions that result in losses for presentation in our consolidated financial statements . interest expense . the components of interest expense include the amount of interest payable in cash at the stated interest rate , beneficial conversion features that arise from the terms of debt arrangements , and accretion of debt discounts and issuance costs ( “ ddic ” ) using the effective interest method . ddic arises from the issuance of debt instruments at a discount to the original principal balance , the fair value of warrants issued in connection with a debt instrument , and incremental and direct costs incurred to consummate the financing . 18 loss on extinguishment of debt . story_separator_special_tag accordingly , all shares of series aa preferred stock held by h & g and the holders of the former fiscal 2018 notes converted to approximately 148.5 million shares of common stock effective april 24 , 2019. a condition to closing the series aa financing was the resignation of a majority of our former directors and the appointment two representatives from h & g as directors whereby h & g appointed two of the three current members of our board of directors . as of june 30 , 2019 , h & g owned an aggregate of approximately 54 % of our common stock which resulted in a change of control . 24 july and august 2019 financings in connection with the series aa offering completed with h & g in january 2019 , we granted a call option to provide additional financing whereby h & g was entitled to elect to purchase up to $ 20.0 million of our common stock at a purchase price equal to the greater of ( i ) $ 0.29 per share or ( ii ) 75 % of the volume weighted average closing price ( “ vwap ” ) of the our common stock during the thirty consecutive trading days prior to the date of the notice . in june 2019 , we entered into a financial advisory agreement to undertake a private placement of ( i ) the shares of common stock issuable under the call option issued to h & g for a total of $ 20.0 million , plus ( ii ) between approximately $ 20 million and $ 30 million of equity or equity equivalent securities to be issued to other investors . on july 23 , 2019 , we entered into a purchase agreement whereby h & g exercised their call option to purchase an aggregate of approximately 69.0 million shares of common stock for gross cash proceeds of $ 20.0 million . since vwap for the previous thirty consecutive trading days was $ 0.20 per share , h & g exercised the call option at a purchase price of $ 0.29 per share . pursuant to the financial advisory agreement entered into in june 2019 , we issued approximately 14.0 million shares of common stock in july and august 2019 to other investors in a private placement . these shares were issued at a purchase price of $ 0.29 per share and resulted in gross proceeds of approximately $ 4.0 million . total advisory fees related to h & g and other private placement issuances amounted to approximately $ 1.4 million , whereby net proceeds from all of the financings amounted to approximately $ 22.6 million . xoma license agreement in january 2019 , we entered into an amendment of our license agreement entered into in december 2017 with xoma . this amendment eliminated the previous requirement that equity securities would be issued to xoma upon the closing of a qualified financing . as a result of the amendment , we agreed to pay xoma approximately $ 5.9 million in cash upon the closing of the series aa financing , which consisted of ( i ) a financing delay fee and other costs incurred through december 2018 of $ 0.4 million , and ( ii ) $ 5.5 million of additional consideration for the license . in february 2019 , we satisfied this payment obligation to xoma for $ 5.9 million . additionally , we agreed to make five future cash payments to xoma totaling $ 8.5 million . this $ 8.5 million liability is payable for $ 1.5 million by september 30 , 2019 , $ 1.0 million by december 31 , 2019 , $ 2.0 million by march 31 , 2020 , $ 2.0 million by june 30 , 2020 , and $ 2.0 million by september 30 , 2020. until the $ 8.5 million liability is fully paid , we are required to make “ early payments ” to xoma equal to 15 % of the net proceeds of any future financings ; any such early payments are applied against the remaining unpaid liability in the reverse order of their future payment date . the completion of the july and august 2019 financings discussed above resulted in the obligation to make early payments to xoma of approximately $ 3.4 million . the early payments were paid in august 2019 and eliminated the requirement to make future cash payments that would have otherwise been due on september 30 , 2020 for $ 2.0 million and on june 30 , 2020 for approximately $ 1.4 million . activesite license agreement in august 2017 , we entered into a development and license agreement with activesite pharmaceuticals , inc. ( “ activesite ” ) pursuant to which we acquired the rights to activesite 's plasma kallikrein inhibitor program ( “ pki program ” ) . we are planning to use the pki program to develop , file , manufacture , market and sell products for diabetic macular edema and other human therapeutic indications . the activesite license agreement requires various milestone payments ranging from $ 1.0 million to $ 10.0 million when milestone events occur , up to an aggregate of $ 36.0 million of aggregate milestone payments . the first milestone payment for $ 1.0 million would be due after completion of the preclinical work and submission of an ind application to the fda for ab101 , which we are attempting to complete during the first half of calendar year 2020. we will also be required to pay royalties equal to 2.0 % of any sales of products that use the pki program , up to a maximum of $ 10.0 million in total royalty payments . through june 30 , 2019 , no milestone payments and royalties have been incurred . planned use of proceeds as a result of the equity financings completed in july and august 2019 , we believe our existing cash balance of

liquidity and capital resources , we intend to use the proceeds from our recently completed financings to advance our clinical programs and fulfill our development obligations under the amended license agreement with xoma our milestone payments under the activesite license agreement entered into in august 2017. accordingly , we expect to increase our r & d spending over the next 12 months . general and administrative expenses general and administrative ( “ g & a ” ) expenses decreased from approximately $ 9.1 million for the fiscal year ended june 30 , 2018 to $ 6.8 million for the fiscal year ended june 30 , 2019 , a decrease of $ 2.3 million . this decrease was attributable to a decrease in compensation and benefits for our administrative and executive workforce of $ 2.4 million . this decrease was primarily driven by ( i ) a $ 2.0 million decrease in stock-based compensation expense , and ( ii ) attrition in our g & a workforce that resulted in a decrease of $ 0.6 million . these decreases in compensation and benefits were partially offset by an increase in executive bonuses of $ 0.2 million . the net decrease in compensation and benefits of $ 2.4 million was partially offset by an increase in investor relations expenses of $ 0.2 million . impairment of long-lived assets we review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable . in april 2018 , we made a strategic shift to implement a restructuring plan that included discontinuance of our manufacturing activities at our former leased facilities in colorado . this change in strategy was designed to reduce costs and enable us to focus on finding a partner for continued development of ab101 and developing rz358 with external manufacturing organizations .


 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 intend to use the proceeds from our recently completed financings to advance our clinical programs and fulfill our development obligations under the amended license agreement with xoma our milestone payments under the activesite license agreement entered into in august 2017. accordingly , we expect to increase our r & d spending over the next 12 months . general and administrative expenses general and administrative ( “ g & a ” ) expenses decreased from approximately $ 9.1 million for the fiscal year ended june 30 , 2018 to $ 6.8 million for the fiscal year ended june 30 , 2019 , a decrease of $ 2.3 million . this decrease was attributable to a decrease in compensation and benefits for our administrative and executive workforce of $ 2.4 million . this decrease was primarily driven by ( i ) a $ 2.0 million decrease in stock-based compensation expense , and ( ii ) attrition in our g & a workforce that resulted in a decrease of $ 0.6 million . these decreases in compensation and benefits were partially offset by an increase in executive bonuses of $ 0.2 million . the net decrease in compensation and benefits of $ 2.4 million was partially offset by an increase in investor relations expenses of $ 0.2 million . impairment of long-lived assets we review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable . in april 2018 , we made a strategic shift to implement a restructuring plan that included discontinuance of our manufacturing activities at our former leased facilities in colorado . this change in strategy was designed to reduce costs and enable us to focus on finding a partner for continued development of ab101 and developing rz358 with external manufacturing organizations .
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 Suspicious Activity Report : for our fiscal year ending june 30 , 2020 , we have the following objectives to advance our development strategy : ( i ) initiate the phase 2b clinical study for rz358 in the us and or europe , ( ii ) complete the necessary toxicology studies for rz402 to enable the filing of an ind and the initiation of clinical studies thereafter , and ( iii ) complete the phase 1 study for ab101 and explore partnership opportunities reference is made to note 13 to our consolidated financial statements included in item 8 of this annual report for further discussion of our financing activities completed in july and august 2019 , approval of our 2019 stock plan , grants of stock options for approximately 34.0 million shares of common stock and , subject to stockholder approval , our ability to complete a reverse stock split and set the exchange ratio between 20 and 100 shares of our common stock into one issued and outstanding share of common stock . 17 factors impacting our results operations we have not generated any revenues since our inception in march 2010. since inception , we have engaged in organizational activities , conducted private placements to raise additional capital , built out a manufacturing suite and produced material for our lead product candidate under good laboratory practices ( “ glp ” ) , conducted studies using the glp material , subsequently changed our strategy to a licensing model that resulted in disposal of our manufacturing assets , and conducted other research and development activities on our pipeline product candidates . due to the time required to conduct clinical trials and obtain regulatory approval for any of our product candidates , we anticipate it will be some time before we generate substantial revenues , if ever . we expect to generate operating losses for the foreseeable future ; therefore we expect to continue efforts to raise additional capital to maintain our current operating plans beyond the next year . we can not assure you that we will secure such financing or that it will be adequate for the long-term execution of our business strategy . even if we obtain additional financing , it may be costly and may require us to agree to covenants or other provisions that will favor new investors over our existing stockholders . our stated strategy has been to build a metabolic focused biotechnology company by in-licensing compelling compounds that we believe clearly target different diseases where there is an unmet need . in december 2017 , we completed the latest phase of this strategy by in-licensing rz358 from xoma corporation . rz358 is a fully human monoclonal antibody that is currently in phase 2 clinical development . rz358 is being developed to treat congenital hyperinsulinism , a devastating ultra-orphan pediatric disease . we believe that rz358 complements our two other metabolic pipeline opportunities including : ( i ) our plasma kallikrein inhibitor , rz402 , which is a late stage preclinical program that offers the potential of an oral therapy to treat diabetic macular edema , the leading cause of blindness in adults in the us , and ( ii ) our super-long-acting basal insulin , ab101 , which is currently in phase 1 clinical development to assess the safety and tolerability , pharmacokinetics and pharmacodynamics of ab101 in patients with diabetes mellitus . key components of consolidated statements of operations research and development expenses . research and development expenses consist primarily of in-licensing costs , material manufacturing costs , and clinical trial costs . our research and development expenses also include ( i ) an allocable portion of our cash and stock-based compensation , employee benefits , and consulting costs related to personnel engaged in the design and development of product candidates and other scientific research projects , and ( ii ) an allocable portion of our facilities and overhead costs related to such personnel . general and administrative expenses . general and administrative expenses consist primarily of ( i ) an allocable portion of our cash and stock-based compensation , employee benefits and consulting costs related to personnel engaged in our administrative , finance , accounting , and executive functions , and ( ii ) an allocable portion of our facilities and overhead costs related to such personnel . general and administrative expenses also include travel , legal , auditing , investor relations and other costs primarily related to our status as a public company . impairment of long-lived assets . impairment exists for property and equipment and identifiable intangible assets if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets . an impairment charge is recognized for the amount by which the carrying amount of the asset , or asset group , exceeds its estimated fair value . gain ( loss ) on sale of property and equipment . we recognize a loss on sales of property and equipment when the sale proceeds are less than the net carrying value of the assets sold . gains are recognized if the sale proceeds exceed the net carrying value of the assets sold . any transactions that result in gains are netted against transactions that result in losses for presentation in our consolidated financial statements . interest expense . the components of interest expense include the amount of interest payable in cash at the stated interest rate , beneficial conversion features that arise from the terms of debt arrangements , and accretion of debt discounts and issuance costs ( “ ddic ” ) using the effective interest method . ddic arises from the issuance of debt instruments at a discount to the original principal balance , the fair value of warrants issued in connection with a debt instrument , and incremental and direct costs incurred to consummate the financing . 18 loss on extinguishment of debt . story_separator_special_tag accordingly , all shares of series aa preferred stock held by h & g and the holders of the former fiscal 2018 notes converted to approximately 148.5 million shares of common stock effective april 24 , 2019. a condition to closing the series aa financing was the resignation of a majority of our former directors and the appointment two representatives from h & g as directors whereby h & g appointed two of the three current members of our board of directors . as of june 30 , 2019 , h & g owned an aggregate of approximately 54 % of our common stock which resulted in a change of control . 24 july and august 2019 financings in connection with the series aa offering completed with h & g in january 2019 , we granted a call option to provide additional financing whereby h & g was entitled to elect to purchase up to $ 20.0 million of our common stock at a purchase price equal to the greater of ( i ) $ 0.29 per share or ( ii ) 75 % of the volume weighted average closing price ( “ vwap ” ) of the our common stock during the thirty consecutive trading days prior to the date of the notice . in june 2019 , we entered into a financial advisory agreement to undertake a private placement of ( i ) the shares of common stock issuable under the call option issued to h & g for a total of $ 20.0 million , plus ( ii ) between approximately $ 20 million and $ 30 million of equity or equity equivalent securities to be issued to other investors . on july 23 , 2019 , we entered into a purchase agreement whereby h & g exercised their call option to purchase an aggregate of approximately 69.0 million shares of common stock for gross cash proceeds of $ 20.0 million . since vwap for the previous thirty consecutive trading days was $ 0.20 per share , h & g exercised the call option at a purchase price of $ 0.29 per share . pursuant to the financial advisory agreement entered into in june 2019 , we issued approximately 14.0 million shares of common stock in july and august 2019 to other investors in a private placement . these shares were issued at a purchase price of $ 0.29 per share and resulted in gross proceeds of approximately $ 4.0 million . total advisory fees related to h & g and other private placement issuances amounted to approximately $ 1.4 million , whereby net proceeds from all of the financings amounted to approximately $ 22.6 million . xoma license agreement in january 2019 , we entered into an amendment of our license agreement entered into in december 2017 with xoma . this amendment eliminated the previous requirement that equity securities would be issued to xoma upon the closing of a qualified financing . as a result of the amendment , we agreed to pay xoma approximately $ 5.9 million in cash upon the closing of the series aa financing , which consisted of ( i ) a financing delay fee and other costs incurred through december 2018 of $ 0.4 million , and ( ii ) $ 5.5 million of additional consideration for the license . in february 2019 , we satisfied this payment obligation to xoma for $ 5.9 million . additionally , we agreed to make five future cash payments to xoma totaling $ 8.5 million . this $ 8.5 million liability is payable for $ 1.5 million by september 30 , 2019 , $ 1.0 million by december 31 , 2019 , $ 2.0 million by march 31 , 2020 , $ 2.0 million by june 30 , 2020 , and $ 2.0 million by september 30 , 2020. until the $ 8.5 million liability is fully paid , we are required to make “ early payments ” to xoma equal to 15 % of the net proceeds of any future financings ; any such early payments are applied against the remaining unpaid liability in the reverse order of their future payment date . the completion of the july and august 2019 financings discussed above resulted in the obligation to make early payments to xoma of approximately $ 3.4 million . the early payments were paid in august 2019 and eliminated the requirement to make future cash payments that would have otherwise been due on september 30 , 2020 for $ 2.0 million and on june 30 , 2020 for approximately $ 1.4 million . activesite license agreement in august 2017 , we entered into a development and license agreement with activesite pharmaceuticals , inc. ( “ activesite ” ) pursuant to which we acquired the rights to activesite 's plasma kallikrein inhibitor program ( “ pki program ” ) . we are planning to use the pki program to develop , file , manufacture , market and sell products for diabetic macular edema and other human therapeutic indications . the activesite license agreement requires various milestone payments ranging from $ 1.0 million to $ 10.0 million when milestone events occur , up to an aggregate of $ 36.0 million of aggregate milestone payments . the first milestone payment for $ 1.0 million would be due after completion of the preclinical work and submission of an ind application to the fda for ab101 , which we are attempting to complete during the first half of calendar year 2020. we will also be required to pay royalties equal to 2.0 % of any sales of products that use the pki program , up to a maximum of $ 10.0 million in total royalty payments . through june 30 , 2019 , no milestone payments and royalties have been incurred . planned use of proceeds as a result of the equity financings completed in july and august 2019 , we believe our existing cash balance of

