we plan to resume production of depocyt ( e ) for sales in europe and the united states in the first quarter of 2013 . 66 the selective recall contributed to a reduction in product sales and royalty revenue of depocyt ( e ) in the second half of 2012. though we do not expect new depocyt ( e ) product to be available to the european market until the second quarter of 2013 , we do not currently expect an out of stock situation in either the united states or europe as a result of the interruption in manufacturing of depocyt ( e ) . we also partner with other companies who desire access to our proprietary depofoam extended release drug delivery technology to conduct research , feasibility and formulation work with their products . on december 5 , 2012 we entered into an exclusive license , development and commercialization agreement and related supply agreement with aratana therapeutics , inc , or aratana . under the agreements , we granted aratana an exclusive royalty-bearing license , including the limited right to grant sublicenses , for the development and commercialization of our bupivacaine liposome injectable suspension product for animal health indications . under the agreement , aratana will develop and seek approval for the use of the product in veterinary surgery to manage postsurgical pain , focusing initially on developing it for cats , dogs and other companion animals . in connection with its entry into the agreement , we received a one-time payment of $ 1.0 million and are eligible to receive up to an additional aggregate $ 42.5 million upon the achievement of development and commercial milestones . once the product has been approved by the food and drug administration for sale in the united states , aratana will pay us a tiered double digit royalty on net sales made in the united states . if the product is approved by foreign regulatory agencies for sale outside of the united states , aratana will pay us a tiered double digit royalty on such net sales . royalty rates will be reduced by a certain percentage upon the entry of a generic competitor for animal health indications into a jurisdiction or if aratana must pay royalties to third parties under certain circumstances . on june 29 , 2012 , we received a notice of termination from novo nordisk as , or novo , of a development and license agreement , dated january 14 , 2011. pursuant to the terms of the agreement , the termination of the agreement is effective 60 days from the date of the notice , or august 28 , 2012. under the agreement , we granted exclusive rights to novo under certain of our patents and know-how to develop , manufacture and commercialize formulations of a novo proprietary drug using our depofoam drug delivery technology . the agreement was terminated due to novo 's decision to discontinue development of the proprietary drug subject to the agreement . as a result , our future collaborative licensing and development revenue may be negatively impacted . on january 3 , 2012 , ekr therapeutics , inc. , or ekr , delivered a notice to us to terminate the licensing , distribution and marketing agreement relating to depodur . pursuant to the terms of the agreement , the termination of the agreement was effective 180 days from the date of the notice , or july 1 , 2012. the associated supply agreement also terminated concurrently with the termination of the licensing , distribution and marketing agreement . both parties agreed to terminate the agreements effective june 8 , 2012. as a result of the termination , we recognized any unamortized deferred revenue relating to the agreement on a straight-line basis through the termination date in june 2012. the nda for depodur was also withdrawn and we do not expect any future depodur sales . since inception , we have incurred significant operating losses . we expect to continue to incur significant expenses as we commercialize exparel and advance the development of product candidates , seek fda approval for our product candidates that successfully complete clinical trials and develop our sales force and marketing capabilities to prepare for their commercial launch . we also expect to incur additional expenses to add operational , financial and management information systems and personnel , including personnel to support our product development efforts and our obligations as a public reporting company . for us to become and remain profitable , we believe that we must succeed in commercializing exparel or other product candidates with significant market potential . 67 recent developments convertible notes on january 23 , 2013 , we completed a private offering of $ 120.0 million in aggregate principal amount of 3.25 % convertible senior notes due 2019 , or notes , and entered into an indenture with wells fargo bank , national association , a national banking association , as trustee , governing the notes . the net proceeds from the offering , including net proceeds from the exercise in full by the initial purchasers of their option to purchase an additional $ 10.0 million in aggregate principal amount of the notes , are approximately $ 115.3 million , after deducting the initial purchasers ' discounts and commissions and the estimated offering expenses payable by us . the notes accrue interest at 3.25 % per year , payable semiannually in arrears on february 1 and august 1 of each year , beginning on august 1 , 2013 and will mature on february 1 , 2019. we used $ 30.1 million of the net proceeds from the offering of the notes to repay in full our $ 27.5 million credit facility with oxford finance llc . story_separator_special_tag since our initial public offering , we utilize our available historic volatility data combined with the publicly traded peer 's historic volatility to determine expected volatility over the expected option term . the peer group was developed based on companies in the pharmaceutical and biotechnology industry in a similar stage of development . expected term we elected to utilize the `` simplified `` method for `` plain vanilla `` options to estimate the expected term of stock option grants . under this approach , the weighted average expected life is presumed to be the average of the vesting term and the contractual term of the option . risk-free interest rate the risk-free interest rate assumption was based on zero coupon u.s. department of the treasury instruments that had terms consistent with the expected term of our stock option grants . expected dividend yield we have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . 73 results of operations comparison of years ended december 31 , 2012 , 2011 and 2010 revenues the following table provides information regarding our revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_4_th total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 as compared to 2011. net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 as compared to 2011. in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012. we report product sales net of allowances for sales returns , prompt pay discounts , volume rebates and distribution service fees payable to wholesalers . we ship products directly to the end user based on orders placed to wholesalers or directly to us and have no product held by wholesalers . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by a selective recall of depocyt ( e ) recommended by the european medicines agency for european union member countries where depocyt ( e ) is not considered to be an `` essential medicinal product . `` the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo nordisk and ( iii ) $ 1.5 million for flynn pharma . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . total revenues increased $ 1.1 million , or 8 % , in the year ended december 31 , 2011 as compared to 2010. this increase was attributable to a $ 1.9 million increase in collaborative licensing and development revenue primarily due to activities performed under the novo agreement , which was signed in january 2011. during 2011 , we received an up-front one-time payment of $ 1.5 million and a milestone payment of $ 2.0 million from novo , which were both deferred and recognized on a straight line basis over the expected contract period . this increase was partially offset by a $ 0.7 million decrease in net product sales due to the lower number of depodur lots sold to our commercial partners . 74 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_5_th total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011. cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken by the european medicines agency and ( iv ) exparel production costs , which were expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the novo agreement for which we received a notice of termination in june 2012. total cost of revenues increased $ 4.5 million , or 36 % in the year ended december 31 , 2011 as compared to 2010. the increase was primarily driven by excess capacity relating to running two cgmp facilities that have a substantial level of infrastructure cost , including the exparel production line which went into service during the fourth quarter of 2011 with all operating costs expensed as incurred due to commercial

liquidity and capital resources since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to the development of exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , product sales , collaborative licensing and development revenue and royalty revenue . in april 2012 , we sold 6,900,000 shares of common stock at a price of $ 9.75 per share in a registered public offering , which includes the underwriter 's exercise of the overallotment option . we raised approximately $ 62.9 million in net proceeds after deducting underwriting discounts and offering expenses . 78 we have generated limited revenue , and we are highly dependent on the commercial success of exparel , which we commercially launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2012 , we had an accumulated deficit of $ 232.5 million , cash and cash equivalents , restricted cash and short-term investments of $ 42.6 million and working capital of $ 46.8 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2012 , 2011 , and 2010 ( in thousands ) : replace_table_token_9_th operating activities for the years ended december 31 , 2012 , 2011 and 2010 , our net cash used in operating activities was $ 70.1 million , $ 31.0 million and $ 24.9 million , respectively .


 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 since our inception in 2007 , we have devoted most of our cash resources to manufacturing , research and development and selling , general and administrative activities primarily related to the development of exparel . we have financed our operations primarily with the proceeds from the sale of convertible preferred stock and common stock , secured and unsecured notes and borrowings under debt facilities , product sales , collaborative licensing and development revenue and royalty revenue . in april 2012 , we sold 6,900,000 shares of common stock at a price of $ 9.75 per share in a registered public offering , which includes the underwriter 's exercise of the overallotment option . we raised approximately $ 62.9 million in net proceeds after deducting underwriting discounts and offering expenses . 78 we have generated limited revenue , and we are highly dependent on the commercial success of exparel , which we commercially launched in april 2012. we have incurred losses and generated negative cash flows from operations since inception . as of december 31 , 2012 , we had an accumulated deficit of $ 232.5 million , cash and cash equivalents , restricted cash and short-term investments of $ 42.6 million and working capital of $ 46.8 million . the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2012 , 2011 , and 2010 ( in thousands ) : replace_table_token_9_th operating activities for the years ended december 31 , 2012 , 2011 and 2010 , our net cash used in operating activities was $ 70.1 million , $ 31.0 million and $ 24.9 million , respectively .
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 Suspicious Activity Report : we plan to resume production of depocyt ( e ) for sales in europe and the united states in the first quarter of 2013 . 66 the selective recall contributed to a reduction in product sales and royalty revenue of depocyt ( e ) in the second half of 2012. though we do not expect new depocyt ( e ) product to be available to the european market until the second quarter of 2013 , we do not currently expect an out of stock situation in either the united states or europe as a result of the interruption in manufacturing of depocyt ( e ) . we also partner with other companies who desire access to our proprietary depofoam extended release drug delivery technology to conduct research , feasibility and formulation work with their products . on december 5 , 2012 we entered into an exclusive license , development and commercialization agreement and related supply agreement with aratana therapeutics , inc , or aratana . under the agreements , we granted aratana an exclusive royalty-bearing license , including the limited right to grant sublicenses , for the development and commercialization of our bupivacaine liposome injectable suspension product for animal health indications . under the agreement , aratana will develop and seek approval for the use of the product in veterinary surgery to manage postsurgical pain , focusing initially on developing it for cats , dogs and other companion animals . in connection with its entry into the agreement , we received a one-time payment of $ 1.0 million and are eligible to receive up to an additional aggregate $ 42.5 million upon the achievement of development and commercial milestones . once the product has been approved by the food and drug administration for sale in the united states , aratana will pay us a tiered double digit royalty on net sales made in the united states . if the product is approved by foreign regulatory agencies for sale outside of the united states , aratana will pay us a tiered double digit royalty on such net sales . royalty rates will be reduced by a certain percentage upon the entry of a generic competitor for animal health indications into a jurisdiction or if aratana must pay royalties to third parties under certain circumstances . on june 29 , 2012 , we received a notice of termination from novo nordisk as , or novo , of a development and license agreement , dated january 14 , 2011. pursuant to the terms of the agreement , the termination of the agreement is effective 60 days from the date of the notice , or august 28 , 2012. under the agreement , we granted exclusive rights to novo under certain of our patents and know-how to develop , manufacture and commercialize formulations of a novo proprietary drug using our depofoam drug delivery technology . the agreement was terminated due to novo 's decision to discontinue development of the proprietary drug subject to the agreement . as a result , our future collaborative licensing and development revenue may be negatively impacted . on january 3 , 2012 , ekr therapeutics , inc. , or ekr , delivered a notice to us to terminate the licensing , distribution and marketing agreement relating to depodur . pursuant to the terms of the agreement , the termination of the agreement was effective 180 days from the date of the notice , or july 1 , 2012. the associated supply agreement also terminated concurrently with the termination of the licensing , distribution and marketing agreement . both parties agreed to terminate the agreements effective june 8 , 2012. as a result of the termination , we recognized any unamortized deferred revenue relating to the agreement on a straight-line basis through the termination date in june 2012. the nda for depodur was also withdrawn and we do not expect any future depodur sales . since inception , we have incurred significant operating losses . we expect to continue to incur significant expenses as we commercialize exparel and advance the development of product candidates , seek fda approval for our product candidates that successfully complete clinical trials and develop our sales force and marketing capabilities to prepare for their commercial launch . we also expect to incur additional expenses to add operational , financial and management information systems and personnel , including personnel to support our product development efforts and our obligations as a public reporting company . for us to become and remain profitable , we believe that we must succeed in commercializing exparel or other product candidates with significant market potential . 67 recent developments convertible notes on january 23 , 2013 , we completed a private offering of $ 120.0 million in aggregate principal amount of 3.25 % convertible senior notes due 2019 , or notes , and entered into an indenture with wells fargo bank , national association , a national banking association , as trustee , governing the notes . the net proceeds from the offering , including net proceeds from the exercise in full by the initial purchasers of their option to purchase an additional $ 10.0 million in aggregate principal amount of the notes , are approximately $ 115.3 million , after deducting the initial purchasers ' discounts and commissions and the estimated offering expenses payable by us . the notes accrue interest at 3.25 % per year , payable semiannually in arrears on february 1 and august 1 of each year , beginning on august 1 , 2013 and will mature on february 1 , 2019. we used $ 30.1 million of the net proceeds from the offering of the notes to repay in full our $ 27.5 million credit facility with oxford finance llc . story_separator_special_tag since our initial public offering , we utilize our available historic volatility data combined with the publicly traded peer 's historic volatility to determine expected volatility over the expected option term . the peer group was developed based on companies in the pharmaceutical and biotechnology industry in a similar stage of development . expected term we elected to utilize the `` simplified `` method for `` plain vanilla `` options to estimate the expected term of stock option grants . under this approach , the weighted average expected life is presumed to be the average of the vesting term and the contractual term of the option . risk-free interest rate the risk-free interest rate assumption was based on zero coupon u.s. department of the treasury instruments that had terms consistent with the expected term of our stock option grants . expected dividend yield we have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . 73 results of operations comparison of years ended december 31 , 2012 , 2011 and 2010 revenues the following table provides information regarding our revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_4_th total revenues increased $ 23.4 million , or 149 % , in the year ended december 31 , 2012 as compared to 2011. net product sales increased $ 11.3 million , or 164 % , in the year ended december 31 , 2012 as compared to 2011. in april 2012 , we commercially launched exparel resulting in $ 14.6 million of net product sales during 2012. we report product sales net of allowances for sales returns , prompt pay discounts , volume rebates and distribution service fees payable to wholesalers . we ship products directly to the end user based on orders placed to wholesalers or directly to us and have no product held by wholesalers . the increase in exparel product sales was partially offset by a $ 3.3 million decrease in depocyt ( e ) product sales primarily driven by a selective recall of depocyt ( e ) recommended by the european medicines agency for european union member countries where depocyt ( e ) is not considered to be an `` essential medicinal product . `` the increase in collaborative licensing and development revenue of $ 13.3 million , or 262 % , in the year ended december 31 , 2012 as compared to 2011 was primarily driven by the recognition of deferred revenue in connection with the termination of certain licensing agreements , which included increases of ( i ) $ 10.7 million for ekr , ( ii ) $ 1.1 million for novo nordisk and ( iii ) $ 1.5 million for flynn pharma . we recognized any unamortized deferred revenue related to any milestones received under these agreements over the remaining contract periods , which ended in 2012. royalty revenue decreased $ 1.2 million , or 33 % , in the year ended december 31 , 2012 as compared to 2011 due to lower end user sales by our commercial partners due to the selective recall of depocyt ( e ) in europe . total revenues increased $ 1.1 million , or 8 % , in the year ended december 31 , 2011 as compared to 2010. this increase was attributable to a $ 1.9 million increase in collaborative licensing and development revenue primarily due to activities performed under the novo agreement , which was signed in january 2011. during 2011 , we received an up-front one-time payment of $ 1.5 million and a milestone payment of $ 2.0 million from novo , which were both deferred and recognized on a straight line basis over the expected contract period . this increase was partially offset by a $ 0.7 million decrease in net product sales due to the lower number of depodur lots sold to our commercial partners . 74 cost of revenues the following table provides information regarding our cost of revenues during the periods indicated , including changes as a percentage ( dollar amounts in thousands ) : replace_table_token_5_th total cost of revenues increased $ 15.4 million , or 92 % in the year ended december 31 , 2012 as compared to 2011. cost of goods sold increased by $ 16.4 million primarily due to ( i ) the cost of goods for exparel sales which we commercially launched in april 2012 , ( ii ) approximately $ 3.2 million of expense for the voluntary but non-routine shutdown periods of the exparel manufacturing site for repairs and maintenance and deployment of new manufacturing skids for our suite c manufacturing expansion project , ( iii ) $ 1.3 million charge for corrective actions taken on the depocyt ( e ) manufacturing line based on the remediation plan , inventory replacement and reserve costs due to action taken by the european medicines agency and ( iv ) exparel production costs , which were expensed as incurred until march 2012 when the first commercial batch was produced . we have a substantial level of infrastructure cost relating to running two cgmp facilities and any extended or non-routine shutdown results in these costs being charged directly to cost of goods sold . cost of collaborative licensing and development revenue decreased by $ 1.0 million in the year ended december 31 , 2012 as compared to 2011 due to decreased services performed under the novo agreement for which we received a notice of termination in june 2012. total cost of revenues increased $ 4.5 million , or 36 % in the year ended december 31 , 2011 as compared to 2010. the increase was primarily driven by excess capacity relating to running two cgmp facilities that have a substantial level of infrastructure cost , including the exparel production line which went into service during the fourth quarter of 2011 with all operating costs expensed as incurred due to commercial

